Iran Central Bank signals imminent digital rial launch (Tasnim News Agency)
Central Bank of Iran Governor Mohammad Reza Farzin reportedly announced that the launch of a digital rial is imminent. A pilot test of the retail central bank digital currency (CBDC) reportedly commenced in July 2024 on the island of Kish, involving two major Iranian banks, Mellat and Tejarat. [Read more at the Tasnim News Agency]
UK FCA outlines its approach to crypto-asset regulation (FCA)
The U.K. Financial Conduct Authority (FCA) outlined its roadmap for crypto-asset regulation, to be implemented by 2026. It plans to publish discussion papers on market abuse and disclosures by the end of 2024, and on stablecoins, trading platforms, staking, prudential crypto exposure and lending by early 2025. The FCA also published the results of a survey that showed that U.K. crypto-asset ownership has grown by 4% in the two years ending in August 2024 to include about 12% of the country’s adult population. [Read more at the FCA]
EIB issues second €100m digital bond in a week using wCBDC (Ledger Insights)
The European Investment Bank (EIB) issued another €100 million digital bond. using the Banque de France’s pilot wholesale central bank digital currency (CBDC) for settlement, as part of the European Central Bank’s (ECB’s) wholesale DLT settlement trials in central bank money which end this month. This time, Goldman Sachs provided its GS DAP as the tokenization platform for the issuance, with Goldman Sachs Bank Europe acting as joint lead manager alongside DZ Bank and LBBW. [Read more at the EIB]
Credit Agricole CIB, CACEIS experiment with tokenized deposits, wCBDC as part of ECB trials (Ledger Insights)
As part of the ECB wholesale DLT settlement trials, Crédit Agricole CIB simulated cross border payments using a tokenized correspondent banking model with the interbank settlement conducted with the Banque de France’s pilot CBDC on its DL3S platform. This experiment tested the potential for corporate clients to manage their real time treasury cash balances 24/7 across jurisdictions. [Read more at Ledger Insights]
Stablecoins and money market funds: Less similar than you think (CEPR)
The Centre for Economic Policy Research (CEPR) posted an article by several Bank for International Settlement (BIS) and European Central Bank (ECB) staffers that explores the reactions of stablecoin capitalization and money market fund assets under management (AUM) to crypto-asset market and US monetary policy shocks. Following a crypto shock, the money market fund AUMs barely budge whereas stablecoin capitalization drops significantly. After a monetary policy tightening, prime money market fund AUMs rise while stablecoin market capitalization substantially declines. As monetary policy tightens, crypto prices fall, the market turns bearish, and investors demand less stablecoins for speculative purposes. This brings into question the role of stablecoins as a crypto safe haven from either crypto or monetary policy and traditional financial market shocks. [Read more at the CEPR]
Take part in the BIS Innovation Hub’s 2025 Analytics Challenge (BIS)
The Bank for International Settlements (BIS) Innovation Hub is inviting interested parties from private and public sector entities as well as academic researchers to compete to develop innovative solutions to combat financial crime and enhance the integrity of the evolving global financial system. The shortlisted solutions will be presented at the BIS Innovation Hub’s Analytics Showcase in London on March 27-28 to an audience of senior leaders from central banks, public sector organizations and financial institutions. [To participate click here]
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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.
