Bank of Namibia launches instant payment project
Bank of Namibia (BON) launched its Instant Payment Project, with a targeted launch year of 2025. It will focus on enhancing financial services in rural areas and the informal sector, thereby reducing cash dependency, and increasing transactional efficiency. Designed for inclusivity, the platform will be accessible on any device, including non-smartphones, ensuring that everyone can use it effortlessly. According to Finextra, BON will partner with National Payments Corporation of India (NPCI), the firm behind India’s Unified Payments Interface (UPI). [Read more at BON]
Why DeFi lending? Evidence from Aave V2
The Bank for International Settlements (BIS) published a paper that uses granular, transaction-level data from Aave, a leading player in the distributed finance (DeFi) lending market, to study investor motivations. The theoretical and empirical findings reveal that the search for yield predominantly drives liquidity provision in DeFi lending pools, whereas borrowing activity is mainly influenced by speculative and, to some extent, governance motives. Both retail- and large investors seek potential high returns through market movements and price speculation, however the latter engage in DeFi borrowing relatively more than the former also to influence protocol decisions and accrue more significant governance rights. [Read more at the BIS]
Upcoming Speaking Engagements:
- CBDC Conference, Istanbul, September 10-12. The conference will offer representatives of central banks, commercial banks, technology providers, policy makers and academics the perfect platform to learn about the latest CBDC developments, exchange ideas with experts and peers. [Find out more and register here]
- Digital Currency Conference, London, September 23-24. The conference will bring together policymakers, regulators, and technology and innovation experts to network and discuss all aspects of digital currencies. And enter the KiffmeisterDCC code at registration to get a 20% discount! [Find out more and register here]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
