Kazakhstan’s digital tenge project enters new phase (LinkedIn)
The National Bank of Kazakhstan (NBK) has entered a new phase of its digital tenge project by introducing the concept of programmable money for government spending. The central bank has been actively engaging with the Ministry of Finance, including the Treasury and Tax Authority, to integrate their systems with the digital tenge platform. This will enable pilots for transparent public procurement, social digital vouchers, and other innovative scenarios. The NBK is finding that the combination of electronic procurement, digital treasury, digital tax administration, and smart payment rails can significantly increase the efficiency and transparency of public finances. [Read more on LinkedIn]
How can CBDCs be designed to drive financial inclusion? (UNDP)
The United Nations Development Programme (UNDP) published an article by Heng Wang on potential central bank digital currency (CBDC) design features that drive financial inclusion. From users’ perspectives, CBDCs need to (i) provide low-cost and safe electronic payment services and to provide benefits like accessibility for vulnerable people, (ii) align with values, experiences, and needs of potential users, and address concerns like privacy, safety, (iii) simplify access to CBDCs (especially for vulnerable groups), easy access to CBDC wallets, user-friendly interfaces, clear terms and conditions, (iv) be tested comprehensively through pilots and sandboxes to refine their design and ensure safety, and (v) the benefits and costs should be visible and understood by users. [Read more at the UNDP]
Japan’s big 3 banks to use stablecoins, Swift for cross border payments (Ledger Insights)
Progmat and Datachain, along with Japanese banks MUFG, SMBC and Mizuho, launched Project Pax, that aims to use stablecoins instead of correspondent banks for cross-border payments. However, so that corporate customers can trigger trade payments in the conventional manner via their banks, SWIFT payment messages will be integrated with the distributed ledger technology (DLT) based Progmat tokenized network, so clients don’t touch the stablecoins. For cross-chain transactions between different blockchains, the platform will utilize Datachain’s middleware and its Inter-Blockchain Communication (IBC) protocol. Prototype testing will start shortly, and Pax members plan to collaborate with other financial institutions, looking to go live in 2025. [Read more at Datachain]
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.
