Central banks to test FX settlement in wCBDC

The Bank for International Settlements (BIS) will collaborate with several central banks to explore how instant cross-border payments could be improved using a modular foreign exchange component combined with settlement in wholesale central bank digital currencies (CBDCs). Project Rialto will explore a new automatic FX settlement layer using wholesale CBDC as a safe settlement asset that could be deployed for interlinked instant payment systems or digital asset systems. Project Rialto is named after the famous bridge in Venice which connects two sides of the Grand Canal. [Read more at the BIS]

Rwanda mulls a central bank digital currency in two years

The National Bank of Rwanda (NBR) is looking to develop its CBDC in the next two years, as part of efforts to streamline the financial system and position Rwanda as an important player in the future global economy. The central bank launched a public consultation in early May 2024 that closes at the end of June 2024, after which about six months of proof of concept work will commence. It looks to have “everything on the table within the next two years”. The NBR’s preferred option is to have a retail CBDC distributed through banks, but it is also looking at indirect (or “synthetic”) CBDC, although the central bank is mindful of the potential bank disintermediation risk under the latter option. [Read more at The New Times]

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][Central bank delegates may be eligible for free registration (email registration@cbdc-conference.com to find out more)]

• 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.