Month: November 2024

Kiffmeister’s #Fintech Daily Digest (20241114)

~ kiffmeister

Digital SNB Bills premature says Swiss National Bank (Ledger Insights)

The Swiss National Bank (SNB) published the results of its pilot test of a monetary policy operation on the SIX Digital Exchange (SDX) distributed ledger technology (DLT) platform. As part of Project Helvetia III, in June 2024 the SNB issued digital SNB Bills settled in wholesale central bank digital currency (CBDC) in a production environment. The Bills were redeemed sever day later. It showed that implementing monetary policy on a DLT-based infrastructure is feasible and effective. While the corresponding processes bring about some improvements, new challenges emerge. The SNB concluded that “the question of whether to conduct monetary policy operations on a DLT-based infrastructure is premature [and] ramping up such operations would also entail significant investment for the SNB, its counterparties as well as infrastructure providers”. [Read more at the SNB]

Global Crypto-Asset Regulatory Landscape Study (CCAF)

The Cambridge Centre for Alternative Finance (CCAF) published its 2nd Global Crypto-Asset Regulatory Landscape Study. The report describes and compares emerging practices in crypto-asset regulation, focusing on 19 representative jurisdictions and encompassing key dimensions of regulatory frameworks. The objective is to identify areas of convergence and divergence in the implementation of regulatory frameworks. In the conclusion this study indicates, where possible, early lessons for financial authorities, particularly in emerging market and developing economy (EMDE) jurisdictions. The report is published alongside a global online tracker of crypto-asset regulatory frameworks, within the CCAF’s Global Regulatory Innovation Dashboard (GRID). [Read more at the CCAF]

Odisha launches Subhadra Yojana digital rupee direct transfer scheme (Economic Times)

In September 2024, the Subhadra Yojana, a direct transfer initiative for women in the state of Odisha, became India’s first government program to allow beneficiaries to receive payouts in digital rupee central bank digital currency (CBDC). Approximately 12,000 beneficiaries received the first annual Rs 10,000 instalment and were notified of the deposit via text messages. [Read more on Wikipedia]

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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.

Kiffmeister’s #Fintech Daily Digest (20241112)

~ kiffmeister

CDC issues €100m digital bond settled with pilot wCBDC (Ledger Insights)

Caisse des Dépôts et Consignations (CDC) issued a €100 million digital bond settled using the Banque de France’s DL3S distributed ledger technology (DLT) platform using its pilot wholesale central bank digital currency (CBDC). The transaction formed part of the European Central Bank’s wholesale distributed ledger technology (DLT) settlement trials. The Banque de France avoids using the term wholesale CBDC, instead referring to it as a tokenized representation of central bank money. For the CDC issuance, it required synchronizing the issuance of the digitally native note (DNN) on Euroclear’s D-FMI platform with the settlement on the central bank’s DL3S. [Read more at Ledger Insights]

Use of DLT and tokenization in financial markets (AFME)

The Association for Financial Markets in Europe (AFME) published a response to a call for submissions from the European Commission (EC) Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) on any issues and opportunities relating to the deployment of DLT based infrastructure and services in the European Union (EU) that may merit the EC’s attention. AFME’s overarching view is that a transformative potential of DLT is that can enable companies and individuals to access a shared, peer-validated database as a single-source-of-truth, without the need to centralize data and transaction processing with a single actor. This increases accessibility by participants, data security and immutability, and data transparency in the real economy. Innovation in finance plays a key role in this vision, which will only begin in earnest with the updating of capital markets infrastructure. [Download the response at the AFME]

JPMorgan renames Onyx blockchain platform to Kinexys (CoinDesk)

JPMorgan (JPM) rebranded its blockchain platform, formerly Onyx, as Kinexys, and its JPM Coin System has been renamed “Kinexys Digital Payments”. The bank also said it plans to introduce on-chain foreign exchange capabilities to the platform as early as the first quarter of 2025, paving the way for the “automation of 24/7, near real-time multicurrency clearing and settlement.” The service will first be available for the U.S. dollar and euro with plans to expand to other currencies. [Read more at JPM]

Sponsored Content:

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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.

Kiffmeister’s #Fintech Daily Digest (20241111)

~ kiffmeister

Intesa Sanpaolo issues tokenized CP as part of ECB DLT settlement trials (Ledger Insights)

Intesa Sanpaolo issued €10 million in commercial paper (CP) using Clearstream’s D7 tokenization platform, using the Bank of Italy’s TIPS Hashlink solution for settlement. TIPS Hashlink is one of three payment options that are part of the European Central Bank’s (ECB’s) distributed ledger technology (DLT) based wholesale settlement trials. Rather than use the on-chain central bank money (i.e., central bank digital currency) being used in the other two trails, the Hashlink interoperability mechanism is used to settle the transaction using the ECB-run Trans-European Automated Real-time Gross settlement Express Transfer (TARGET) Instant Payment Settlement (TIPS) system. This is apparently only the second test of this platform, the other being a €25 million Cassa Depositi e Prestiti (CDP) digital bond issue in July 2024. [Read more at Ledger Insights]

ABN AMRO settles repo pilot trades in Eurosystem wCBDC test (ABN AMRO)

ABN AMRO executed four repo pilot trades with DLT-based wholesale central bank digital currency (CBDC) utilizing tokenized commercial paper (CP) as collateral in late October 2024. This served to test one of three payment options (in this case the one being led by the Banque de France) that are part of the ECB’s DLT-based wholesale settlement trials. ABN AMRO issued €1.1 million of the tokenized CP that was used as collateral in the latest transaction, which involved four reverse repo transactions between ABN AMRO Bank, ABN AMRO Clearing, and Rabobank, cleared by Eurex Clearing. In a repo Repo (repurchase) transaction one party (e.g., Bank A) sells securities to another party (e.g., Bank B) and agrees to buy them back later at a slightly higher price. ABN AMRO Bank’s Treasury regularly uses repos for balance sheet management. [Read more at ABN AMRO]

Sponsored Content:

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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.

Kiffmeister’s #Fintech Daily Digest (20241109)

~ kiffmeister

CBDC progress and further considerations (IMF)

The IMF published a staff update on global central bank digital currency (CBDC) developments, and updated the landing page for its work-in-progress CBDC virtual handbook. New chapters, which have already been released as Fintech Notes, cover the positioning of CBDC in the payments landscape, cyber resilience of the CBDC ecosystem, CBDC adoption, CBDC data use and privacy protection, implications for monetary policy operations, and cross-border payments with retail CBDC. The update also provides a roadmap of forthcoming chapters, which will presumably also be pre-released as Fintech Notes. [Read the update here and check out the handbook landing page here]

Sponsored Content:

Supercharge your CBDC research and deployment strategy with Chavanette’s Alpha Knowledge Platform (⍺LP)—the ultimate resource for deep insights into CBDCs and the ecosystem of CBDC technology providers and solutions. Get insider access to the top 20 CBDC platforms through the GALACTIC GRID, dissected by Chavanette’s expert framework. Lead the digital central banking revolution with the tools necessary to deploy Central Banking 4.0—stay informed, stay bold, stay transformative. Be the leader. Register for access here and get a 10% discount on the first year with the kiffmeister10 code.

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.

Kiffmeister’s #Fintech Daily Digest (20241108)

~ kiffmeister

Exploring the role of digital money in wholesale tokenized asset markets (RBA)

The Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) published a consultation paper which seeks industry feedback on a new research initiative, Project Acacia. This project will explore how different forms of digital money and associated infrastructure could support the development of wholesale tokenized asset markets in Australia. The consultation paper seeks expressions of interest from industry in participating in an experimental research phase for Project Acacia, and in joining an Industry Advisory Group for the project. Input is also sought on the technical and functional capabilities of new forms of settlement infrastructure and digital money, including wholesale central bank digital currency (CBDC) and tokenized bank deposits, that could promote well-functioning tokenized asset markets and stability in the financial system. [Read more at the RBA]

Digital yuan visual hard wallet launched (Global Times)

The People’s Bank of China (PBOC) launched a credit card-sized digital yuan (e-CNY) hard wallet that supports online and offline payments, and features a screen that displays balance and payment details, and dynamic QR codes for payments. The digital wallet enables both “tap-to-pay” and “scan-to-pay” options, letting merchants accept payments on POS machines, scanners and mobile devices, without requiring new hardware. The wallet is reportedly already available for public transport payments in some cities. [Read more at Global Times and iHome.com]

An earlier version launched in 2021 included buttons so that users could enter the payment amount and the e-ink visual display was small (see below). [Read more at Ledger Insights]

Sponsored Content:

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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.

Kiffmeister’s #Fintech Daily Digest (20241107)

~ kiffmeister

Seven South Korean banks to participate in CBDC-driven pilot (Crypto.news)

South Korea‘s Financial Services Commission (FSC) has authorized seven domestic banks to participate in a pilot program testing digital financial services based on central bank digital currency (CBDC) and deposit tokens. The pilot project will offer digital vouchers via QR codes, which users can scan with their smartphones to redeem government-provided benefits digitally at registered merchants, including educational institutions, cultural centers, and welfare-related outlets. The FSC did not specify a timeline for the pilot. [Read more at the FSC]

Mastercard joins Buna, the Arab regional payment system (Mastercard)

Mastercard will join the Arab Monetary Fund’s (AMF’s) Buna cross-border real-time gross settlement (RTGS) payment platform as a direct participant. The collaboration will provide a simple, efficient and practical solution to current challenges that include high costs, long wait times and lack of transparency when moving funds into and out of the Middle East and North Africa (MENA) region. By leveraging existing infrastructure and connections, the collaboration avoids the need for major investments or adjustments from participant banks. [Read more at Mastercard]

Sponsored Content:

Supercharge your CBDC research and deployment strategy with Chavanette’s Alpha Knowledge Platform (⍺LP)—the ultimate resource for deep insights into CBDCs and the ecosystem of CBDC technology providers and solutions. Get insider access to the top 20 CBDC platforms through the GALACTIC GRID, dissected by Chavanette’s expert framework. Lead the digital central banking revolution with the tools necessary to deploy Central Banking 4.0—stay informed, stay bold, stay transformative. Be the leader. Register for access here and get a 10% discount on the first year with the kiffmeister10 code.

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.

Kiffmeister’s #Fintech Daily Digest (20241105)

~ kiffmeister

Crypto firms launch Paxos stablecoin-based global network (Paxos)

A consortium of fintech and crypto-asset companies launched the Global Dollar Network based on the U.S. dollar-pegged USDG stablecoin issued out of Singapore by Paxos. Paxos claims that USDG is “substantively compliant with the upcoming Monetary Authority of Singapore (MAS) stablecoin framework. Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos and Robinhood are the initial partners. What is unique about USDG, versus the dominant stablecoins, is that partners (financial services and blockchain firms) receive up to 100% of the revenues generated by USDG’s backing assets, and earn additional revenues for minting and acceptance. [Read more at Paxos]

Eurosystem and 5 Asian central banks advance Project Nexus implementation (BIS)

The five Project Nexus central bank partners (India, Malaysia, the Philippines, Singapore, and Thailand) established the Singapore-based Nexus Scheme Organization (NSO) managing entity, which will manage the project in its live implementation stages. Nexus was launched in 2021 by the Bank for International Settlements (BIS) Innovation Hub to enhance cross-border payments by connecting multiple domestic instant payment systems (IPS) globally. The European Central Bank (ECB) also joined Nexus as a special observer as part of exploratory work on linking its TARGET Instant Payment Settlement with other fast payment systems. While the BIS will not own or operate the NSO, it will continue its support by playing a technical advisory role. [Read more at the BIS]

MAS announces plans to support asset tokenization commercialization (MAS)

The Monetary Authority of Singapore (MAS) outlined its vision for how to take the next step from asset tokenization exploration to commercialization. Project Guardian, launched in 2022, convened over 40 financial institutions, industry associations and international policymakers across seven jurisdictions to carry out industry trials on the use of asset tokenization in capital markets. More than 15 industry trials were conducted in six currencies across multiple financial products. In order to achieve scale the MAS is creating the Guardian Wholesale Network Industry Group with the aim of forming commercial networks to deepen market liquidity, developing an ecosystem of market infrastructures, fostering industry frameworks, and enabling access to common settlement facility. [Read more at the MAS]

Security reference model for digital currency hardware wallet (ISO)

The International Organization for Standardization (ISO) announced that a security reference model for digital currency hardware wallets and requirements and recommendations regarding the security of digital currency hardware wallets has now advanced to the internal review phase. It includes security requirements for data management, communication, and access control requirements between different modules of the hardware wallets; security requirements for the running environment of the software operating in the hardware wallet; and security policies for service operation of the hardware wallet. The non-security aspects of digital currency hardware wallets, such as business processes and financial transactions are out of scope. [Unfortunately the draft isn’t available for download]

Refining the definition of the unbanked (SSRN)

A paper co-written by Federal Reserve Board (FRB) staffer Elena Falcettoni proposes to differentiate individuals without a bank account but would like to have one (the “unbanked”) from individuals that do not have a bank account and are not interested in having one (the “out of banking population”). While the unbanked mostly cite financial and past credit or banking history problems as reasons for not having a bank account, the out of banking population cites a growing mistrust toward the traditional banking system. The paper finds that the latter comprises over 70% of U.S. households without a bank account, and concludes that to bank the unbanked (the other 30%) policy interventions should be aimed at encouraging financial institutions to offer more accessible and affordable services. [Read more at SSRN]

Sponsored Content:

Supercharge your CBDC research and deployment strategy with Chavanette’s Alpha Knowledge Platform (⍺LP)—the ultimate resource for deep insights into CBDCs and the ecosystem of CBDC technology providers and solutions. Get insider access to the top 20 CBDC platforms through the GALACTIC GRID, dissected by Chavanette’s expert framework. Lead the digital central banking revolution with the tools necessary to deploy Central Banking 4.0—stay informed, stay bold, stay transformative. Be the leader. Register for access here and get a 10% discount on the first year with the kiffmeister10 code.

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.

Kiffmeister’s #Fintech Daily Digest (20241103)

~ kiffmeister

The Digital Shekel Challenge – La Finale (Bank of Israel)

The Bank of Israel (BOI) concluded its Digital Shekel Challenge with presentations by the 14 entities selected to develop innovative use cases for the digital shekel. The use cases presented demonstrated the potential of the digital shekel to help create advanced payment solutions and lead innovation in Israel’s payment system. First place was awarded to Siara for a platform for returning debtors to an economic growth path, second went to Paypal for a smart payroll payments system, third to IDEMIA for an offline payments solution, and the “People’s Choice” to QEDIT for a platform that enhances trust for digital transactions using advanced cryptography. [Read more at the BOI]

Digital money and finance: a critical review of terminology (LinkedIn)

A couple of European Central Bank (ECB) staffers, including Director General of Market Infrastructures and Payments Ulrich Bindseil, posted a paper that proposes a new approach to clarifying the essence of new payment technologies. It puts forward an etymology of key concepts and reviews terminology and definitions, in the hope of facilitating ongoing discussions about the eventual merits of, and use cases for, such technology. On the basis of the analysis, the paper identifies a number of issues with the emerging key digital payments and decentralized financed (DeFi) vocabulary, including central bank digital currency (CBDC), crypto-assets, smart contracts, stablecoins, tokenization, and wholesale (as used in the CBDC context). [Download the paper on SSRN]

Sponsored Content:

Supercharge your CBDC research and deployment strategy with Chavanette’s Alpha Knowledge Platform (⍺LP)—the ultimate resource for deep insights into CBDCs and the ecosystem of CBDC technology providers and solutions. Get insider access to the top 20 CBDC platforms through the GALACTIC GRID, dissected by Chavanette’s expert framework. Lead the digital central banking revolution with the tools necessary to deploy Central Banking 4.0—stay informed, stay bold, stay transformative. Be the leader. Register for access here and get a 10% discount on the first year with the kiffmeister10 code.

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.

Jurisdictions Where Retail CBDC Is Being Explored

~ kiffmeister

105 central banks have recently launched, piloted, experimented with and/or researched retail central bank digital currency (CBDC) not including two that started issuing retail CBDC and then shut the platforms down (Ecuador and Finland). This total is unchanged from the end of September 2024. Keep in mind that I don’t count all of the individual national central banks that are part of currency unions (e.g., the European or Eastern Caribbean Currency Unions). If I did the tally that way, my count would be around the oft-quoted 130+ central banks. Also, the table was compiled from publicly available sources, including the media and central bank websites, and not verified through official channels. If I’m missing anything, or you find mistakes in the tabulation, please let me know in the comments! (See the notes below the table for more information on how it was compiled.)

Notes: The difference between a “pilot” and “proof of concept” (POC) is that a pilot involves actual users, whereas a POC does not, even though some POCs may involve central bank staff. Also, because the tabulation is based only on publicly-available information, it is likely that there is some POC activity in the “research” category, but no announcements have been made. Finally, entries that are crossed through indicate that the projects have been shut down. Also, the ones that are crossed out, are where the central bank has considered issuing CBDC but then decided to cancel the research or put it on hold (“watchful waiting”).

Standalone RCBDC TabulationDownload