Peru awards contract for first retail CBDC pilot (Ledger Insights)
Banco Central de Reserva del Perú (BCRP) has awarded its first contract for the development of its retail central bank digital currency (CBDC) pilot. The winner is telecom firm Viettel Perú. The contract will run for one year, which may be extended for up to one additional year at the justified request of Viettel Peru. No further details have been made available. [Read more at the BCRP]
Emerging markets face regulatory challenges from stablecoin circulation (FSB)
The Financial Stability Board (FSB) published a report that explores potential factors driving the higher level of activities related to foreign currency-pegged stablecoins in emerging market and developing economies (EMDEs), the associated financial stability risks and regulatory challenges, and provides considerations to address them. EMDEs may be exposed to macro-financial risks arising from the use of foreign currency pegged global stablecoins, which can increase financial stability risks by destabilizing financial flows and straining fiscal resources. [Read more at the FSB]
Spot Ether ETFs can start trading after the SEC’s final approval (Finance Magnates)
The U.S. Securities and Exchange Commission (SEC) has provided final approval to spot Ethereum (ETH) exchange-traded funds (ETFs) following the listing of these instruments on three American exchanges on July 23, 2024. The approved issuers include BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy, all of whom also offer Bitcoin ETFs that were greenlighted by the SEC at the beginning of 2024. All spot ETH ETFs, except Grayscale, kept the base fee between 0.15% and 0.25%, but Fidelity, 21Shares, Bitwise, Franklin, and VanEck will waive all fees until a set period or a determined amount in net assets is achieved. Grayscale is charging 2.50%. [Read more at Finance Magnates]
Brazil delays launch of recurring Pix payments (Banco Central do Brasil)
Banco Central do Brasil (BCB) has pushed back the addition of recurring payments to its Pix instant payment platform from October 2024 until June 2025. Automatic Pix will facilitate recurring charges that let users authorize periodic debits automatically, without the need for authentication for each transaction. The BCB also published amended Pix regulations that limit transactions on access devices that are unregistered or that have never been used to initiate a Pix transaction to R$200 and R$1,000 per day. The amendments will become effective on November 1, 2024. [Read more at the BCB]
LIFT Lab resumes innovation projects for Brazil’s national financial system (BCB)
The Laboratório de Inovações Financeiras e Tecnológicas (LIFT), a joint initiative of the BCB and Federação Nacional de Associações dos Servidores do Banco Central (Fenasbac), will resume activities following a hiatus in 2023. Since its inception in 2018, the laboratory has been at the forefront of innovation within the Brazilian national financial system, focusing on developing technological prototypes. The 2023/2024 edition will feature seven projects to enhance the financial innovation ecosystem. The 2023/2024 edition will include seven projects, including technological solutions for anti-money laundering and compliance, B2B interoperability solutions between incompatible blockchain networks, and scores for Pix payments to identify fake accounts. [Read more at the BCB]
Global Payments Report 2024 (WorldPay)
WorldPay published the 2024 edition of its Global Payment Report. It reports that the ubiquitous acceptance of digital wallets is enabling greater consumer choice and control in this era of payments innovation. According to the findings, digital wallets accounted for $13.9 trillion in global transaction value in 2023, representing half of all online and 30% of consumer spend at point-of-sale (POS). In markets where credit and debit cards already had strong consumer attachment, the data suggests consumers remain loyal to these cards, choosing to connect them to their digital wallets. Although cash usage continues to decline, cash accounted for 16% of global transaction value, including double-digit share in 30 of 40 markets in this report. [Read more at WorldPay]
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.
