Month: January 2025

Kiffmeister’s #Fintech Daily Digest (20250131)

~ kiffmeister

Thai government plans Baht stablecoin backed by gov bonds (Ledger Insights)

Thailand’s Ministry of Finance reportedly plans to issue 10 billion of baht stablecoins backed by government bonds, initially newly issued ones, in October, 2025. However, it isn’t clear whether these will be baht-pegged, or float with the value of the underlying bonds. If it is the latter, this is more like a tokenized bond, rather than a digital currency, scheme. From the press reports, it sounds more like the former, as the Minister of Finance reportedly spoke of them allowing a wider range of individuals to invest, and not just financial institutions or large investors. Also, he said that a central platform for secondary market trading is also being developed to facilitate easier buying and selling of the stablecoin, increasing market liquidity. [Read more at The Nation]

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Upcoming Speaking Engagements:

  • The Central Bank Payments Conference (Paris, February 17–19) will explore the latest issues and developments confronting central banks and their evolving role as operators, overseers, and catalysts within the payments landscape. The focus will be on cross-border payments, CBDC and tokenization, open finance, instant payments, and financial inclusion, among other topics. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Global Payments Summit (Paris, February 19–21), the second half of Currency Research Payments Week, will explore emerging payments trends and innovations, positioning the ecosystem’s commercial players — banks, PSPs, solution providers — at the center of the discussions. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Crypto Assets Conference (Frankfurt, March 26) will explore the latest innovations and emerging industry trends in DLT, blockchain, and crypto assets, through insightful talks, interactive debates, and presentations by industry thought leaders. [Register here]
  • The Digital Euro Conference 2025 (Frankfurt, March 27) 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! [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 (20250130)

~ kiffmeister

Fintech wallets go live in digital rupee CBDC pilot (Ledger Insights)

Indian fintech firm CRED become the first fintech to integrate the Reserve Bank of India’s central bank digital currency (CBDC) by launching a beta version of its e-rupee wallet. CRED’s e-rupee wallet supports transactions up to ₹10,000 per transfer, with a daily transaction limit of ₹50,000 and storage up to Rs 1 lakh. These will costless to merchants. Future updates will enable programmable merchant payments, CRED Pay integration and PIN-less transactions below ₹500, with access for all CRED members in the coming months. YES BANK facilitates the issuance of CBDC tokens from RBI to CRED. Other non-banking payment service operators (NBPSOs) including PhonePe, AmazonPay, Google Pay, and Mobikwik are also looking to join the e-rupee pilot. [Read more at the Hindu Businessline]

Tokenization and financial market inefficiencies (IMF)

The IMF published a paper that introduces a taxonomy and a conceptual framework centered on market inefficiencies to evaluate the potential of tokenization for financial markets. It finds that some inefficiencies could decline across the asset life cycle. Others would remain, however, and new ones could emerge. Issuing, servicing, and redeeming assets might involve fewer intermediaries and thus become cheaper. The costs of trading assets may also decrease as tokenization lowers some counterparty risks and search frictions and offers flexibility in settlement. Additionally, greater competition among brokers could lower transaction fees. However, tokenization may amplify shocks if it induces institutions to become more interconnected and hold lower liquidity buffers or higher leverage, potentially jeopardizing financial stability. Programs themselves may introduce new risks related to strings of contingent contracts or faulty code. While competition may grow among financial intermediaries, the provision of market infrastructure could become more concentrated due to network effects. [Read more at the IMF]

Sponsored Content:

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Upcoming Speaking Engagements:

  • The Central Bank Payments Conference (Paris, February 17–19) will explore the latest issues and developments confronting central banks and their evolving role as operators, overseers, and catalysts within the payments landscape. The focus will be on cross-border payments, CBDC and tokenization, open finance, instant payments, and financial inclusion, among other topics. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Global Payments Summit (Paris, February 19–21), the second half of Currency Research Payments Week, will explore emerging payments trends and innovations, positioning the ecosystem’s commercial players — banks, PSPs, solution providers — at the center of the discussions. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Crypto Assets Conference (Frankfurt, March 26) will explore the latest innovations and emerging industry trends in DLT, blockchain, and crypto assets, through insightful talks, interactive debates, and presentations by industry thought leaders. [Register here]
  • The Digital Euro Conference 2025 (Frankfurt, March 27) 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! [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 (20250129)

~ kiffmeister

Digital tenge project second phase results (NBK)

The National Bank of Kazakhstan (NBK) published an update on the second phase of the Digital Tenge (DT) project, including reporting on testing of five government use case scenarios involving programmable payments. They involved controlling and monitoring the use of funds paid out or lent by the government to support various programs. Two involved payments out of the National Fund for infrastructure projects, and another, investment subsidies for the purchase of agricultural machinery and equipment. Another involved a government microlending program to support farmer livestock purchases, and the fifth one the collection of value-added taxes (VAT). No specific potential full launch dates were given, but 2025 will be the last year in terms of the DT’s phased implementation. [Read more at the NBK]

Digital Turkish Lira: benefits and opportunities (CBRT)

The Central Bank of the Republic of Türkiye (CBRT) published an update on its central bank digital currency (CBDC) project launched in 2020 with proof-of-concept studies. The first phase, culminating in a pilot, was completed at the end of 2023. During Phase-2, beyond ongoing R&D activities, the legal, economic and security dimensions of the digital lira are being comprehensively addressed. [Read more at the CBRT]

Stablecoins in cross-border remittances and the role of digital and financial literacy (TAI)

Telematics and Informatics (TAI) published a paper on the adoption and continuance intentions of blockchain-based stablecoins for cross-border remittances. Relying on survey data from 866 U.S.-based adults engaged in remittance activities, its findings reveal that digital and financial literacy independently increase the likelihood of stablecoin adoption, while their interaction synergistically enhances predictive accuracy. Demographic analysis indicates that stablecoin remittance users tend to be younger, more educated, and involved in higher-value transactions. Among the 26% of remittance users who adopted stablecoins, continuance intentions are primarily driven by satisfaction and perceived usefulness. This points to a cyclical dynamic, where meeting user expectations leads to greater satisfaction, which in turn reinforces the perceived usefulness of stablecoins. The results underscore the importance of promoting both digital and financial literacy, improving user experience, and effectively communicating tangible benefits to encourage the continued adoption of stablecoins for remittance transactions. [Read more at TAI]

Madagascar’s central bank preparing for potential CBDC pilot (eCurrency)

[September 11, 2024] eCurrency was selected by Banky Foiben’i Madagasikara (BFM) to provide consulting services for the e-Ariary central bank digital currency (CBDC) project. BFM plans to move on to a potential pilot phase of the e-Ariary project, once the preparation is successfully completed. [Read more at Consumer World Report]

Australian BNPL providers must apply for credit licenses (The Paypers)

The Australian National Credit Code has been extended to buy now pay later (BNPL) contracts, following royal assent of the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 on December 10, 2024. From June 10, 2025, the Australian Securities & Investments Commission (ASIC) will require BNPL contract providers to hold a credit licence that authorizes them to engage in credit activities as a credit provider. Providers who do not have their application accepted for lodgement by ASIC by then may be engaging in unlicensed conduct if they continue to operate. [Read more at ASIC]

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:

  • The Central Bank Payments Conference (Paris, February 17–19) will explore the latest issues and developments confronting central banks and their evolving role as operators, overseers, and catalysts within the payments landscape. The focus will be on cross-border payments, CBDC and tokenization, open finance, instant payments, and financial inclusion, among other topics. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Global Payments Summit (Paris, February 19–21), the second half of Currency Research Payments Week, will explore emerging payments trends and innovations, positioning the ecosystem’s commercial players — banks, PSPs, solution providers — at the center of the discussions. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Crypto Assets Conference (Frankfurt, March 26) will explore the latest innovations and emerging industry trends in DLT, blockchain, and crypto assets, through insightful talks, interactive debates, and presentations by industry thought leaders. [Register here]
  • The Digital Euro Conference 2025 (Frankfurt, March 27) 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! [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 (20250124)

~ kiffmeister

Strengthening American leadership in digital financial technology (US White House)

U.S. President Donald Trump signed an Executive Order (XO) “prohibiting the establishment, issuance, circulation, and use of a central bank digital currency (CBDC) within the jurisdiction of the United States” on the grounds that they “threaten the stability of the financial system, individual privacy, and the sovereignty of the United States”. The XO uses the standard BIS (2020) CBDC definition: “a form of digital money or monetary value, denominated in the national unit of account, that is a direct liability of the central bank” which is a bit problematic, because it encompasses both retail and wholesale CBDC. It’s problematic because, by that definition, the Federal Reserve (Fed) is already running a WCBDC in the form of commercial bank reserve and settlement accounts. [Read more at the White House]

Instead, the White House could have followed the language of a bill introduced to the U.S. House of Representatives by Rep. Tom Emmers, the “CBDC Anti-Surveillance State Act“. It starts with the same CBDC definition as the White House XO, but goes on to narrow down the impact of the bill to prohibit the Fed from “offer[ing] products or services directly to an individual; maintain[ing] an account on behalf of an individual; or issu[ing] a central bank digital currency, or any digital asset that is substantially similar under any other name or label, directly to an individual [or] indirectly to an individual through a financial institution or other intermediary… [This] may not be construed to prohibit any dollar-denominated currency that is open, permissionless, and private, and fully preserves the privacy protections of United States coins and physical currency.” [Read the Emmers bill here]

The XO also says that “except to the extent required by law, agencies are hereby prohibited from undertaking any action to establish, issue, or promote CBDCs within the jurisdiction of the United States or abroad.

Trump orders crypto working group to draft new regulations, explore national stockpile (Reuters)

In the same XO, President Trump also ordered the creation of a cryptocurrency working group tasked with proposing new digital asset regulations and exploring the creation of a national cryptocurrency stockpile. The working group will include the Treasury secretary, chairs of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), but notably no one from the Federal Reserve or Federal Deposit Insurance Corporation (FDIC) . The XO also ordered that banking services for crypto companies be protected, alluding to industry claims that the Fed and FDIC have directed lenders to cut crypto companies off from banking services.

SEC rescinds SAB 121 freeing banks to provide digital asset custody (Ledger Insights)

The U.S. Securities and Exchange Commission (SEC) rescinded Staff Accounting Bulletin (SAB) 121, which required companies to put digital assets under custody as an asset and a liability on their balance sheet. Usually, as common sense would suggest, these such assets don’t go on the balance sheet because they belong to the client. This rule is especially problematic for U.S. banks because they are subject to capital requirements based on their balance sheet. The SEC had been exempting some banks from this requirement, but only for very specific assets. [Read more at the SEC]

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:

  • The Central Bank Payments Conference (Paris, February 17–19) will explore the latest issues and developments confronting central banks and their evolving role as operators, overseers, and catalysts within the payments landscape. The focus will be on cross-border payments, CBDC and tokenization, open finance, instant payments, and financial inclusion, among other topics. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Global Payments Summit (Paris, February 19–21), the second half of Currency Research Payments Week, will explore emerging payments trends and innovations, positioning the ecosystem’s commercial players — banks, PSPs, solution providers — at the center of the discussions. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Digital Euro Conference 2025 (Frankfurt, March 27) 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! [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 (20250123)

~ kiffmeister

Taiwan FSC proposes law allowing banks to issue stablecoin (Crypto.news)

The Taiwan Financial Supervisory Commission reportedly wants to introduce a draft law that would allow banks to issue their own stablecoins that will be jointly managed by the Taiwan central bank. “Chairman of the Taiwan FSC, Peng Jinlong, stated that stablecoins will be used as a bridge that connects the gap between fiat currencies and cryptocurrencies, making it easier for investors to access the crypto trading market. In the case of Taiwan, stablecoins issued by local banks will be pegged to the new Taiwan dollar instead of the U.S. dollar.” [Read more at Money.udn.com]

Eurex gets BaFin approval for DLT-based margin collateral via HQLAᵡ (Ledger Insights)

Eurex Clearing has received non-objection letter from the German Federal Financial Supervisory Authority (BaFin) for distributed ledger technology (DLT) supported collateral mobilization for its clients. The initiative is a collaboration with HQLAᵡ and Clearstream, with J.P. Morgan planning to participate as the pilot clearing member. The objective is to ensure that securities collateral can be accessed and utilized instantly to fulfil central counterparty (CCP) margin requirements, regardless of its physical location. [Read more at HQLAᵡ]

Privacy-enhancing technologies for digital payments: mapping the landscape (BIS)

The Bank for International Settlements (BIS) published a paper on how technology can enhance privacy in digital payment systems. It classifies privacy-enhancing designs along the dimensions of privacy versus auditability, and soft institution- versus hard technology-based solutions. It maps existing technologies into this taxonomy and assesses them. Sophisticated techniques allow having both hard privacy and limited transparency by employing hard-coded rules that dictate which data remains inaccessible. On balance, there is promise in novel concepts like zero-knowledge-proofs, but current technologies suffer from security and computational capacity limitations in. [Read more at the BIS]

Here a coin, there a coin, everywhere a stablecoin (Atlanta Fed)

The Federal Reserve Bank of Atlanta published an article on the growing use of stablecoins. It points to retailers like Overstock, Chipotle, Whole Foods, and GameStop now accepting them, Stripe enabling merchants to accept USD Coin (USDC). Regal Cinemas offering a 10% discount on tickets and concessions for USDC payments, and Travala letting users book travel services with USDC or USDT. Benefits to merchants include reduced transaction fees, immediate settlement, and attracting crypto-savvy customers. However, the article points to concerns over the stability of the assets backing them, regulatory uncertainty, and security vulnerabilities like cyberattacks, and stablecoins used in decentralized finance platforms facing risks such as smart contract failures and liquidity issues. [Read more at the Atlanta Fed]

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:

  • The Central Bank Payments Conference (Paris, February 17–19) will explore the latest issues and developments confronting central banks and their evolving role as operators, overseers, and catalysts within the payments landscape. The focus will be on cross-border payments, CBDC and tokenization, open finance, instant payments, and financial inclusion, among other topics. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Global Payments Summit (Paris, February 19–21), the second half of Currency Research Payments Week, will explore emerging payments trends and innovations, positioning the ecosystem’s commercial players — banks, PSPs, solution providers — at the center of the discussions. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Digital Euro Conference 2025 (Frankfurt, March 27) 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! [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 (20250122)

~ kiffmeister

FYI I contributed a few quotes to a recent Cointelegraph article on the likely “dead” status of a U.S. central bank digital currency (CBDC) under the new Administration. As usual, it doesn’t differentiate “retail” and “wholesale” CBDC, but what can you do? [Read more at Cointelegraph]

US SEC creates Crypto Task Force (Ledger Insights)

Acting Chair of the Securities and Exchange Commission (SEC) Mark Uyeda created a Crypto Task Force to be led by Commissioner Hester “Crypto Mom” Peirce. The Task Force’s focus will be to help draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously. “The SEC [under previous Chair Gensler] relied primarily on enforcement actions to regulate crypto retroactively and reactively, often adopting novel and untested legal interpretations along the way. Clarity regarding who must register, and practical solutions for those seeking to register, have been elusive. The result has been confusion about what is legal, which creates an environment hostile to innovation and conducive to fraud.” [Read more at the SEC]

Circle buys largest tokenized MMF issuer, Hashnote (Ledger Insights)

USDC stablecoin issuer Circle has acquired Hashnote, the issuer of the largest tokenized money market fund (TMMF), USYC. Circle intends to fully integrate USYC with USDC, offering seamless 24/7/365 access between TMMF collateral and USDC. The deal is bolstered by a strategic partnership with institutional crypto trader DRW via its subsidiary Cumberland, which incubated Hashnote. Cumberland will expand its institutional-grade liquidity and settlement capabilities in USDC and USYC, where permitted. [Read more at Circle]

When buy-now-pay-later meets credit reporting (BIS)

The Bank for International Settlements (BIS) published a paper on the impact of reporting requirements on buy-now-pay-later (BNPL) credit usage. Using a dataset of BNPL users from a large digital platform and exploiting a credit reporting policy change, it documents that consumers significantly reduce BNPL usage when the BNPL lender becomes subject to credit reporting regulation. This reduction is particularly pronounced among borrowers with default histories, who also show improved repayment behaviors compared to those without such records. The decrease in BNPL usage also leads to a reduction in online consumption, supporting the financial constraint hypothesis. These findings indicate that information sharing can help mitigate overborrowing and overspending, with stronger effects seen among younger borrowers, those who previously spent more, or those with credit cards. [Read more at the BIS]

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:

  • The Central Bank Payments Conference (Paris, February 17–19) will explore the latest issues and developments confronting central banks and their evolving role as operators, overseers, and catalysts within the payments landscape. The focus will be on cross-border payments, CBDC and tokenization, open finance, instant payments, and financial inclusion, among other topics. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Global Payments Summit (Paris, February 19–21), the second half of Currency Research Payments Week, will explore emerging payments trends and innovations, positioning the ecosystem’s commercial players — banks, PSPs, solution providers — at the center of the discussions. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Digital Euro Conference 2025 (Frankfurt, March 27) 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! [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 (20250118)

~ kiffmeister

The economic limits of cryptocurrencies and blockchains (QJE)

The Quarterly Journal of Economics (QJE) published a paper by Eric Budish that shows that Nakamoto’s form of trust is economically limited. A zero-profit condition on the quantity of honest blockchain “trust support” (work, stake, etc.) and an incentive-compatibility condition on the system’s security against majority attack together imply an equilibrium constraint which says that the “flow” cost of blockchain trust has to be large at all times relative to the benefits of attacking the system. This is extremely expensive relative to traditional forms of trust and scales linearly with the value of attack. However, the paper’s analysis is consistent with the continued use of cryptocurrencies and blockchains for black market purposes, and more generally in use cases where users are willing to pay the high implicit costs of anonymous, decentralized trust. [Read more at the QJE and see also McConnell (2017)]

To be clear, the Budish paper’s critique is of blockchains and permissionless consensus, not of distributed databases with trust grounded in traditional sources. (see Budish and Sunderam (2023) for discussion of the potential value of the blockchain data structure in the context of traditional finance).

Fostering empathy for Canadians facing challenges with digital payment systems (BOC)

The Bank of Canada (BOC) published a paper on designing inclusive and user-friendly digital payment systems, focusing on fostering empathy for and identifying the needs of users who exhibit behaviors that indicate they encounter accessibility or usability barriers in digital systems. Specifically, it examines two types of users based on two common behaviors: users who rely on others to perform tasks and those who avoid interacting with technology. The findings show that individuals in the two groups avoid systems they expect lack usability. Addressing these issues through standard accessibility practices, live assistance and thoughtful interface design can enhance user interaction and trust. For accessibility issues that cannot realistically be eliminated, technology that enhances cooperative relationships and allows account owners to control information sharing is key. [Read more at the BOC]

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:

  • The Central Bank Payments Conference (Paris, February 17–19) will explore the latest issues and developments confronting central banks and their evolving role as operators, overseers, and catalysts within the payments landscape. The focus will be on cross-border payments, CBDC and tokenization, open finance, instant payments, and financial inclusion, among other topics. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Global Payments Summit (Paris, February 19–21), the second half of Currency Research Payments Week, will explore emerging payments trends and innovations, positioning the ecosystem’s commercial players — banks, PSPs, solution providers — at the center of the discussions. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Digital Euro Conference 2025 (Frankfurt, March 27) 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! [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 (20250115)

~ kiffmeister

Stablecoins emerge as the cornerstone of illicit crypto activity in 2024 (Bitcoin.com)

Chainalysis projects that the total volume of illicit crypto transactions for 2024 could surpass $51 billion, of which 63% involved stablecoins. This is part of a broader ecosystem trend in which stablecoins also occupy a sizable percentage of all crypto activity, due to their wide array of practical use cases in a range of markets. The upside from a financial integrity perspective, is that stablecoin issuers can and do freeze funds if they are made aware of their use by illicit actors. For example, Tether has frozen addresses of concern linked to scams, terrorist financing, and sanctions evasion, which can make stablecoins a poor tool for the transfer of value by illicit actors. Nonetheless, despite these ecosystem-wide trends, some forms of crypto crime, such as ransomware and darknet market sales, remain BTC-dominated. [Read more at Chainalysis]

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:

  • The Central Bank Payments Conference (Paris, February 17–19) will explore the latest issues and developments confronting central banks and their evolving role as operators, overseers, and catalysts within the payments landscape. The focus will be on cross-border payments, CBDC and tokenization, open finance, instant payments, and financial inclusion, among other topics. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Global Payments Summit (Paris, February 19–21), the second half of Currency Research Payments Week, will explore emerging payments trends and innovations, positioning the ecosystem’s commercial players — banks, PSPs, solution providers — at the center of the discussions. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Digital Euro Conference 2025 (Frankfurt, March 27) 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! [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 (20250114)

~ kiffmeister

Progress update: The digital pound and the payments landscape (BOE)

The Bank of England (BOE) published a summary of its work during 2024 on a digital pound, including how it relates to the evolving payments landscape. It also published an initial design note as part of its work on a blueprint for the central bank digital currency (CBDC). The blueprint is one of four workstreams in the digital pound design phase (see below). Its purpose is to provide a comprehensive proposition for a digital pound, including technology, operational, ecosystem, commercial, regulatory and financial considerations, and the roles that both the Bank and the private sector could play in delivering it. The Bank also will launch a Digital Pound Lab to enable hands-on experimentation to test API functionality, innovative use cases and potential business models for payment interface providers (PIPs) and external service interface providers (ESIPs). [Read more at the BOE]

BIS Innovation Hub sets out 2025 work programme (BISIH)

The BIS Innovation Hub (BISIH) posted its 2025-26 work programme. The BISIH started 16 new projects in 2024, and the project portfolio consisted of 26 active projects at the start of 2025. The work programme for 2025 includes further developing ongoing projects such as Project Agora in which partners from seven central banks and over 40 private sector financial institutions are exploring how tokenization can enhance wholesale cross-border payments. The first two new projects in 2025 will explore AI-based tools supporting supervision and green finance. [Read more at the BISIH]

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Upcoming Speaking Engagements:

  • The Central Bank Payments Conference (Paris, February 17–19) will explore the latest issues and developments confronting central banks and their evolving role as operators, overseers, and catalysts within the payments landscape. The focus will be on cross-border payments, CBDC and tokenization, open finance, instant payments, and financial inclusion, among other topics. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Global Payments Summit (Paris, February 19–21), the second half of Currency Research Payments Week, will explore emerging payments trends and innovations, positioning the ecosystem’s commercial players — banks, PSPs, solution providers — at the center of the discussions. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Digital Euro Conference 2025 (Frankfurt, March 27) 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! [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 (20250113)

~ kiffmeister

National Bank of Kazakhstan considering supporting CBDC-backed stablecoins (NBK)

The National Bank of Kazakhstan (NBK) is focusing on stablecoins backed by Digital Tenge — a concept that mirrors the idea of a synthetic central bank digital currency (CBDC). This approach essentially represents e-money fully reserved with liquidity in a Digital Tenge wallet, offering a secure and reliable foundation for digital transactions. Furthermore, the NBK will aim to extend the opportunity of stablecoin issuance to a broader range of players, including non-bank entities, fostering inclusivity and innovation across the ecosystem. [Read more on LinkedIn]

Sberbank calls for digital ruble launch delay (Ledger Insights)

Sberbank is calling for a delay of the digital ruble launch scheduled for July 1, 2025 because its central bank digital currency (CBDC) platform is still being developed. However, many of the smaller Russian banks that have been participating in the pilot since late 2023, report being ready to go on schedule, but Sberbank only joined in December 2024 leaving it just over six months to prepare. A representative of Sberbank, said that the introduction of the digital ruble requires significant financial investments, including tens of billions of rubles for the development and integration of new functionality. [Read more at Pravda]

FDIC Vice Chair acknowledges crypto debanking (Ledger Insights)

Travis Hill, Vice Chair of the Federal Deposit Insurance Corporation (FDIC) acknowledged there had been some crypto debanking. It was part of his wide ranging analysis of potential future policy directions including changes to be made with respect to digital assets, distributed ledger technology (DLT) and blockchain. “Access to a bank account is essential for individuals and businesses to participate in many aspects of the modern economy. A longstanding goal of the FDIC’s has been to decrease the number of people who are unbanked. Efforts to debank law-abiding customers are unacceptable, regulators must work to end it, and there is no place at the FDIC for anyone who has pushed — explicitly or implicitly — banks to stop serving law-abiding customers.” [Read more at the FDIC]

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:

  • The Central Bank Payments Conference (Paris, February 17–19) will explore the latest issues and developments confronting central banks and their evolving role as operators, overseers, and catalysts within the payments landscape. The focus will be on cross-border payments, CBDC and tokenization, open finance, instant payments, and financial inclusion, among other topics. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Global Payments Summit (Paris, February 19–21), the second half of Currency Research Payments Week, will explore emerging payments trends and innovations, positioning the ecosystem’s commercial players — banks, PSPs, solution providers — at the center of the discussions. When you register get 15% off by using the Kiffmeister15 code. [register here]
  • The Digital Euro Conference 2025 (Frankfurt, March 27) 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! [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.