Three transactions have already been made with the BCB’s Drex (Forum)
To date, at least three transactions have reportedly been made with the Banco do Brasil (BCB) Drex central bank digital currency (CBDC) as part of its proof of concept work. One was carried out between two private banks (BTG Pactual and Itaú Bank) to test the compatibility and the efficiency of the payment network. The second was between the BCB and a public-sector bank (Caixa Econômica Federal). The third, in September 2024, was an interbank transaction between a public bank (Caixa) and a private digital bank (Inter). [Read more at Forum]
The digital euro – implications for the European banking sector (CFS)
The Center for Financial Studies (CFS) published a paper that estimates the potential impact of a digital euro CBDC on European commercial bank revenues from payment transaction services using a simulation model based on current market data. There is political agreement that digital euro users should not be charged for payments and other basic services, but banks could collect fees from merchants for providing digital euro-related services, as is the case today for other digital payment instruments. The paper finds that the annual losses of fees from users from payment transaction services could be in the range of €2.1 billion to €4.2 billion. [Read more at SSRN]
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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.
