ECCB DCash pilot closed in January 2024 (ECCB)

In late 2023 I had reported that the Eastern Caribbean Central Bank (ECCB) DCash pilot was being upgraded from version “1.0” to “2.0” and in December 2023 that the ECCB had issued a request for vendor information for that upgrade. However, it turns out that the pilot was completely shut down on January 12, 2024 while preparations for “2.0” move forward. Stay tuned while I try to chase down more information on this. [Read more at DCash] and on pages 18-19 of the ECCB 2023 Annual Report]

Positioning CBDC in the payments landscape (IMF)

The IMF published a paper that proposes a framework for comparing retail central bank digital currency (CBDC) with fast payment and e-money systems from a payments perspective. A jurisdiction’s evaluation will be dependent on the distinct features and capacity of its current, and emerging, financial landscape. A landscape review is an important tool for central banks when assessing how policy objectives are being achieved today, and if necessary pre-conditions for new systems are in place, or could be established in future. Authorities’ capacity and capability to not only implement but supervise and regulate any system will be important. Any new system will have non-negligible costs, and different systems will potentially have different implications for the distribution of costs between the public and private sectors. Furthermore, a jurisdiction’s mandate and ability to apply their powers around payments may ultimately determine how well any system can fulfill its objectives. Given the early stage of CBDC development, no singular strategy exists in the context of the questions put forward. While central banks will make choices unique to their circumstances, it remains important for central banks to establish a strategy that allows them at minimum to monitor trends and core benefits of multiple solutions as developments occur to allow them to plan, adapt, and drive developments in their payments landscape. [Read more at the IMF]

SEC files appeal in Ripple lawsuit (Cointelegraph)

The U.S Securities and Exchange Commission (SEC) filed a notice of appeal in the Ripple lawsuit seeking to overturn a ruling by Judge Analisa Torres that sales of Ripple’s XRP didn’t constitute securities sales. She ruled that Ripple’s XRP was not a security in and of itself because the digital assets failed to satisfy all the conditions listed in the SEC’s Howey test to classify a financial asset as an investment contract. [Read more at Cointelegraph]

Payala offline digital currency platform (Payala)

Payala is a digital payment technology smartcard-based digital payments ecosystem that provides users with a multi-currency digital wallet that is resilient highly resistant to cyberattack and operates when offline for business-to-customer, government-to-populace, and peer-to-peer transactions. The platform has been successfully field-tested and utilized in the Pacific region in an austere, low infrastructure environment. [Read more at Payala]

SWIFT to start live trials of digital transactions in 2025 (SWIFT)

Starting in 2025 banks across North America, Europe, and Asia will embark on live trials of digital assets and currency transactions over the SWIFT network. These trials aim to address the rise of disconnected digital platforms, or ‘digital islands’, that could hinder more widespread adoption and ease of use for new forms of value. The live trials will leverage SWIFT’s existing global network to interlink various digital and traditional currency platforms, providing a single system for banks to transact across borders with digital and fiat currencies. [Read more at SWIFT]

Use of BlackRock tokens as collateral moves closer to mainstream (Bloomberg)

Bloomberg reported that a subcommittee of the Commodity Futures Trading Commission (CFTC) Global Markets Advisory Committee voted to pass its recommendations to allow use of tokenized shares of money-market funds as collateral in trading to the full committee. “These recommendations would apply existing policies and procedures to support the use of blockchain for non-cash collateral in a manner consistent with the margin requirements of the CFTC, other US regulators and derivatives clearing organizations… The full committee is expected to vote on the recommendations later in 2024.” [Read more at Bloomberg]

Upcoming Speaking Engagements:

• Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [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.