A proposal for a retail CBDC architecture (BIS)
The Bank for International Settlements (BIS) published a paper by its Consultative Group on Innovation and the Digital Economy (CGIDE) that discusses four main processes in a retail central bank digital currency (CBDC) architecture. These are: i) enrolling new users, ii) creating CBDC (cash-in), iii) destroying CBDC (cash-out) and iv) intra-ledger transfers. These four processes could involve other flows and vary depending on the CBDC design, regulatory framework, technological infrastructure and policy objectives of each jurisdiction. The architecture lays out a hybrid model which allows for the division of labor between the central bank and private intermediaries. [Read more at the BIS]
Fee-free period for digital ruble transactions extended (Bank of Russia)
On November 29, 2024 the Bank of Russia announced the extension of the fee-free period for digital ruble transactions to December 31, 2025. After that the fee for businesses accepting payments for goods and services in digital rubles will be 0.3% of the payment amount (but no more than ₽1,500). The fee for housing and utility companies will be 0.2% but no more than ₽10. The fee on business-to-business transfers will equal ₽15 per transaction. However, digital ruble transactions will always be fee-free for individuals. [Read more at the Bank of Russia]
The Bank of Canada (BOC) published a paper that uses microdata from the BOC Bitcoin Omnibus Survey, to measure familiarity with crypto-asset concepts using a set of three questions covering basic aspects of bitcoin. It finds that Canadian bitcoin owners are more informed than non-owners about the asset and thus have higher levels of crypto literacy. They are heterogeneous with respect to financial literacy. It finds that women who own bitcoin have similar financial knowledge as their male counterparts but score lower on crypto literacy measures. Moreover, the crypto literacy gender gap persists regardless of ownership status. [Read more at the BOC]
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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.