Can crypto-assets play a role in foreign reserve portfolios? (World Bank)

The World Bank published a paper that discusses the potential role of crypto-assets in central bank reserve portfolios. It concludes that crypto-assets are currently incompatible with the traditional objectives of safety, liquidity, and return. Their volatile values undermine their reliability as a store of value, and despite some guidance from policy makers and standard-setting bodies, they still face an uncertain regulatory environment. [Read more at the World Bank]

Survey finds banks indirectly discourage PSPs from using stablecoins (Ledger Insights)

According to a recent survey, 29 of 100 European payment service providers (PSPs) are reluctant to work with cryptocurrency exchanges owing to banking partner restrictions. 95 have had banks close or restrict their accounts often with no reason given. The survey was performed by Neo, which provides PSPs with FX and cross border payment solutions [Read more at Neo]

Crypto-asset reporting framework and common reporting standard (OECD)

The OECD has released the IT format for transmitting information under the Crypto-Asset Reporting Framework (CARF) and the amended Common Reporting Standard (CRS). This release includes interpretative guidance to assist jurisdictions and financial institutions in complying with the new requirements. These updates are aimed at improving transparency and global standards for tax reporting on crypto assets, ensuring consistency with existing international financial reporting protocols. The guidance will help facilitate accurate and efficient reporting of crypto-related financial activities. [Read more at the OECD]

PBOC update on the digital RMB pilot (Sina Finance)

Mu Changchun, Director of the Digital Currency Institute of the People’s Bank of China (PBOC), provided an update on the digital renminbi (RMB) pilot. As of the end of July 2024, there were 180 million personal digital RMB wallets, and the cumulative transaction amount was 7.3 trillion yuan, including high-value securities and trade transactions. [Read more at Sino Finance]

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.