Brazil tests DeFi elements, compatibility in Drex CBDC pilot (Cointelegraph)
Banco Central do Brasil (BCB) is incorporating decentralized finance (DeFi) principles into ongoing experiments toward developing ecosystems that use “synthetic” central bank digital currency (CBDC) as payment instruments. Digital asset transactions would be settled in “Drex” wholesale CBDC issued by the BCB within the distributed ledger technology (DLT) Drex Platform. The BCB also plans to speed up its Open Finance tokenization efforts and bring decentralized finance (DeFi) into the regulatory perimeter. [Read more at the BCB and hear more on YouTube]
BoE wants to ensure tokenized wholesale transactions use central bank money (Ledger Insights)
Bank of England (BoE) Executive Director of Financial Market Infrastructure Sasha Mills outlined the need for tokenized wholesale transactions to be settled in central bank money. “If central bank money is unable to interact with new technologies, there could be a risk of high value wholesale settlement activity moving away from central bank money to private settlement assets, weakening financial stability.” Options include the use of the BoE’s omnibus account facility, extending real-time gross settlement (RTGS) system hours, and wholesale CBDC. [Read more at the BoE]
Visa introduces the Visa tokenized asset platform (Visa)
Visa launched its Tokenized Asset Platform ( VTAP), a business-to-business (B2B) solution designed to enable banks to bring fiat currencies on chain in a safe, seamless, and efficient manner. VTAP provides a platform for banks to mint, burn and transfer fiat-backed tokens, such as tokenized deposits and stablecoins, and experiment with use cases. VTAP is also designed to enable banks to use their fiat-backed tokens within smart contracts. In addition, Visa’s vision is to enable interoperability across different blockchains for banks utilizing the VTAP platform. [Read more at Visa]
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.
