Central banks of France and Luxembourg publish results of Project Venus
The Banque de France (BdF) and Banque Centrale du Luxembourg have published the results of Project Venus, a successful 2022 experiment demonstrating the use of distributed ledger technologies (DLTs) in digital bond issuance and settlement. On 29 November 2022, the European Investment Bank (EIB) successfully issued a euro‑denominated digital bond on a private blockchain using wholesale central bank digital currency (CBDC) for settlement. Goldman Sachs Bank Europe, Santander and Société Générale facilitated the subscription and distribution processes. While project Venus was considered a success, further experimentation and policy work will be required before the decision is made to issue issue a wholesale CBDC. Meanwhile, the Eurosystem is conducting additional experiments and trials, with conclusions expected by mid-2025. [Read more at the BdF]
Boerse Stuttgart, German banks to test settle tokenized securities
The Boerse Stuttgart Group (BSG) will be part of the second wave of the European Central Bank (ECB) European Union-wide wholesale DLT trials for central bank money settlement. Commerzbank, Deutsche Bank, DZ Bank, LBBW, Bankhaus Metzler and V-Bank, who are directly connected to the Bourse’s new blockchain-based settlement solution, will act as trading and settlement participants to test the settlement of exchange transactions with tokenized securities against central bank money. The Deutsche Bundesbank is providing its trigger solution, which connects blockchain transactions with the traditional euro payment system, for the test. [Read more at BSG]
India’s retail CBDC transaction volumes continue to slump
Usage of India’s e-rupee, has slumped to just a tenth of the 1 million retail transactions per day peak hit in December 2023, according to a Reuters report. The transactions that are continuing are in part due to banks disbursing benefits to their employees via the e-rupee. This has helped to push up transactions to about 250,000 to 300,000 per day towards the end of each month. Apparently, the Reserve Bank of India (RBI) is not planning to rapidly expand the pilot and the current focus is on testing the technology and developing use cases for the digital currency. [Read more at Reuters]
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.
