Iran’s central bank to pilot CBDC pilot on Kish Island

The Central Bank of Iran (CBI) will launch a pilot its digital rial central bank digital currency (CBDC) in July 2024. It will allow banking customers and tourists on Kish Island to make purchases and transfer funds using digital wallets and QR codes. The CBI has been developing its CBDC since 2022, and started proof-of-concept work in June 2023. The digital rial has been targeted solely for use in Iran and to facilitate domestic micro payments operations. The overarching goal of the project is to modernize and simplify domestic transactions. [Read more at the CBI]

Fnality, HQLAᵡ aim to launch blockchain intraday repo this year

Fnality and HQLAᵡ have completed end-to-end testing to enable intraday sterling repo settlement on the Eurex Repo F7 platform via their two blockchain networks. They plan to go live in Q4 2024 subject to UK regulatory approvals. Fnality is a UK-regulated systemic payment system and HQLAᵡ operates a digital collateral registry to enable intraday collateral movement. Fnality’s settlement instrument is effectively a “synthetic” wholesale CBDC – i..e., a sterling-denominated stablecoin backed by deposits in a Bank of England omnibus account. In conventional repo transactions, the collateral settlement takes two days, but on the Fnality/HQLAᵡ platform, trades can be settled on a atomically intra-day delivery-versus-payment (DvP) basis. [Read more at Ledger Insights]

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.