Month: February 2025

Kiffmeister’s #Fintech Daily Digest (20250228)

~ kiffmeister

The Bank of Ghana expects to launch its retail CBDC in 2025 (OMFIF)

The Bank of Ghana (BOG) expects to launch its retail central bank digital currency (CBDC) in 2025 (contingent on an act of parliament), with offline payments a key function the central bank is confident in delivering. Kwame Oppong, head of fintech and innovation, pointed out that the “technology for offline payments has been around since the 1990s, but the challenge was to ensure that the requirement of frequent reconnection and re-syncing was not obstructive. That means the experience is not truly like offline payments. We wanted to create an instrument that allows people to live off-grid and use it as they would use cash.” [Read more at OMFIF]

Iraq’s central bank to create its own digital currency (Iraqi News)

I report this Iraqi News story about the Iraqi central bank issuing CBDC just for the record because it’s second-hand information (not directly from the Iraqi central bank) and it’s odd in that it describes the CBDC replacing paper notes in transactions with central banks. Prior to this, the only evidence I have ever found of Iraq researching CBDC was a 2022 Arab Monetary Fund report. [Read more at Iraqi News]

Upcoming Speaking Engagements:

  • The Crypto Assets Conference (Frankfurt, March 26) will delve into the advancements in digital assets, tokenization, crypto assets, web3, and more, through insightful talks, interactive debates, and presentations by industry experts, founders, investors, and representatives from public institutions. [Register here and get a 10% discount]
  • 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 (20250227)

~ kiffmeister

Banco Central do Brasil Drex pilot update (BCB)

Banco Central do Brasil (BCB) published a technical report on the first phase of the Drex wholesale central bank digital currency (CBDC) pilot that focused on testing the use of tokenized deposits. The platform used was a private, permissioned version of the Ethereum blockchain. The pilot involved the participation of 16 financial institutions, which were selected from a pool of 36 candidates. The pilot tested a range of use cases, including the issuance and transfer of tokenized deposits, as well as the settlement of transactions involving tokenized government bonds. The BCB found a tough “trilemma” between privacy, programmability, and oversight. Advanced cryptography (like zero-knowledge proofs) can hide transaction details to protect user privacy, but this also makes it hard for regulators to monitor illicit activity, or even for the system to run complex smart contracts. The next phase of the pilot program, which started in November 2024, is focusing on advancing privacy while allowing pilot participants to suggest more use cases. [Read more at the BCB]

Bank of Russia to postpone digital ruble launch (Bank of Russia)

The Central Bank of the Russia has postponed the launch of the digital ruble from July 2025 to a later date to be determined. According to Governor Elvira Nabiullina the central bank needs more time to work out all the details in the pilot and hold all consultations with banks on the economic model that is most attractive to customers. 15 banks, 1,700 citizens and about 30 companies have taken part in the pilot that started in August 2023. [Read more at the Bank of Russia]

Embedded supervision in the context of decentralized finance (BMA)

The Bermuda Monetary Authority (BMA) is inviting proposals for a collaborative pilot project aimed at testing embedded supervision practices within the context of decentralized finance (DeFi). Embedded supervision refers to the direct integration of regulatory oversight, compliance checks, and automated reporting into the technological foundation of a financial platform—particularly within its smart contracts, protocols, or data layers—so that supervisory requirements are inherently enforced in real-time with limited or delayed human intervention. [Read more at the BMA]

Upcoming Speaking Engagements:

  • The Crypto Assets Conference (Frankfurt, March 26) will delve into the advancements in digital assets, tokenization, crypto assets, web3, and more, through insightful talks, interactive debates, and presentations by industry experts, founders, investors, and representatives from public institutions. [Register here and get a 10% discount]
  • 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 (20250225)

~ kiffmeister

Public crypto networks as financial market infrastructures (SSRN)

Ulrich Bindseil (European Central Bank) and Omid Malekan (Columbia University) posted a paper that discusses the properties of blockchain technology and how they can enable time structures and novel financial products that cannot exist in traditional financial architecture. The specific features described are streaming payments, omni-asset settlement, programmability, and financial architecture flattening (disintermediation). They provide examples of the unique products they enable, some of which might disrupt today’s dominant payment and capital market solutions in the future. The authors also discuss the utility of blockchain technology in private (permissioned) networks, and the risks of public distributed ledger technology (DLT) networks and their mitigants. [Read more at SSRN]

Robinhood says SEC dropped crypto investigation (Ledger Insights)

The U.S. Securities and Exchange Commission (SEC) will not be taking enforcement action against Robinhood Crypto. This follows the SEC issuing a Wells Notice last year warning of impending legal action relating to crypto custody, cryptocurrency listings and platform operations. Under acting SEC Chair Mark Uyeda, several crypto related cases have been dropped or paused. It recently dropped the investigation into NFT platform OpenSea and Coinbase said its SEC court case would end, subject to Commissioner approval. Earlier this month the SEC paused its case against Binance. Plus, it withdrew its appeal in its attempt to expand the definition of brokers to include liquidity providers. [Read more at Ledger Insights]

Reflections on a maturing stablecoin market (FRB)

U.S. Federal Reserve Board (FRB) Governor Christopher J. Waller spoke about the maturing stablecoin market and the potential challenges that could impede it from reaching its full potential. Stablecoins must demonstrate not only clear use cases, but also a clear commercial case to be economically viable. Plus, the public sector needs to set clear and targeted legal and regulatory frameworks and coordinate those frameworks across states and national boundaries to enable private sector innovation at a global scale. [Read more at the FRB]

How censorship resistant are decentralized systems? (FRB)

The Federal Reserve Board (FRB) published an article on crypto-asset censorship resistance, focusing on settlement layer cooperation by block proposers. It found that, although public permissionless blockchains are designed to be censorship resistant, even blockchains with broad user bases are not immune to the potential for certain transactions to be excluded due to external pressure. Further, concrete design features—such as financial incentives, which are intended to permit the expression of views, however controversial—do not appear to be effective in strengthening censorship resistance. However, system censorship resistance seems to be reinforced by the large players who value censorship resistance as a primitive feature. [Read more at the FRB]

Upcoming Speaking Engagements:

  • The Crypto Assets Conference (Frankfurt, March 26) will delve into the advancements in digital assets, tokenization, crypto assets, web3, and more, through insightful talks, interactive debates, and presentations by industry experts, founders, investors, and representatives from public institutions. [Register here and get a 10% discount]
  • 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 (20250224)

~ kiffmeister

Binance.US restores US dollar deposits and withdrawals (Binance.US)

Binance.US has seen its US dollar fiat services restored, after the firm’s ability to handle USD deposits and withdrawals was choked off under the Biden administration. Users will be able to deposit and withdraw USD with zero fees using bank transfer (ACH) and continue buying, selling, converting and trading cryptocurrencies on the exchange. [Read more at Binance.US]

Interlinking fast payment systems to enhance cross-border payments (CPMI)

The Committee on Payments and Market Infrastructures (CPMI) published a summary of the high-level findings of a July 2024 conference on expediting the interlinking of fast payment systems (FPSs). It found that emerging markets and developing economies have made considerable progress in fast payment adoption. As the number of domestic FPSs grow, opportunities are emerging to facilitate the cross-border interlinking of safe and efficient FPS. Work is under way in many jurisdictions to enhance FPS readiness to participate in such links, particularly to improve their functionality and align with messaging and compliance standards. Successful links to date have prioritized interoperability and smoothly managed coordination between the public and private sectors and among jurisdictions. It is expected that FPS links in the near term will be based on bilateral links, while over the longer term, these may coexist with more open and future-proof multilateral arrangements. Over time, the market will likely evolve to link between regional groupings (see https://www.bis.org/cpmi/publ/brief5.htm). [Read more at the BIS]

Open-source software in the context of fast payment systems (World Bank)

The World Bank published a paper that examines the use of open-source software (OSS) in the context of fast payment systems (FPSs), as well as relevant implementation models, risks, benefits, and costs. It identified only one live FPS using OSS for core functionalities, but interest is growing among payment system operators, particularly in initiatives such as Mojaloop. Moreover, some FPS operators may choose to use OSS for non-core components, making it crucial for both operators and regulators to be aware of the potential impacts that OSS may have, both positive and negative, on the overall efficiency and resilience of FPSs. While OSS offers advantages, such as cost savings from reduced licensing fees and the flexibility to customize systems, it also presents challenges. For example, institutions need significant in-house expertise for customization, maintenance, and operation and must align their long-term FPS goals with the chosen open-source solutions to ensure adaptability and scalability. [Read more at the World Bank]

Upcoming Speaking Engagements:

  • The Crypto Assets Conference (Frankfurt, March 26) will delve into the advancements in digital assets, tokenization, crypto assets, web3, and more, through insightful talks, interactive debates, and presentations by industry experts, founders, investors, and representatives from public institutions. [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 (20250221)

~ kiffmeister

Figure launches yield-bearing SEC-registered stablecoin (Figure)

Figure Markets has launched YLDS, a public blockchain-based interest-bearing stablecoin that is reportedly registered as a public security with the U.S. Securities and Exchange Commission (SEC). YLDS accrues interest daily based on the U.S. Federal Reserve’s Secured Overnight Financing Rate (SOFR) minus 0.50% with a 0.00% minimum, and pays monthly in USD or YLDS. Holders can buy/sell YLDS using USD and other stablecoins 24×7 on Figure Markets, and can off-ramp to fiat during US banking hours. YLDS can be transferred peer-to-peer on the Provenance Blockchain. YLDS is backed by the same securities that prime money market funds hold. [Read more at Figure]

Sponsored Content:

Upcoming Speaking Engagements:

  • 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 (20250220)

~ kiffmeister

Eurosystem expands initiative to settle DLT-based transactions in central bank money (ECB)

The European Central Bank (ECB) will expand its initiative to settle transactions on distributed ledger technology (DLT) platforms in central bank money. First, it will develop and implement a safe and efficient platform for such settlements through an interoperability link with the Trans-European Automated Real-time Gross Settlement Express Transfer System (TARGET). Perhaps these could include the Deutsche Bundesbank “trigger solution” or the Banca d’Italia’s TARGET Instant Payment System (TIPS) Hashlink solution, both of which were tested in recent ECB-run trials. Second, the ECB will look into a more integrated, long-term solution, perhaps based on the Banque de France wholesale central bank digital currency (CBDC) solution, also tested in the ECB trials. [Read more at the ECB]

Sponsored Content:

Upcoming Speaking Engagements:

  • 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 (20250218)

~ kiffmeister

The willingness of the Israeli public to adopt a digital shekel (BOI)

The Bank of Israel (BOI) published the results of a survey of public willingness to adopt a digital shekel. 34% of respondents showed a very high interest in using a digital shekel (8 to 10 on a scale of 1 to 10), 17% expressed medium-high interest (6 to 7) and 37% showed low interest (1-5). The survey also examined what features of the digital shekel may increase its use.  Prominent among them was customer protection against fraud and system errors, the possibility of remuneration, and zero fees for basic functions.  In contrast, the main concerns raised by the survey participants were cybersecurity and information security risks, difficulty of use, and lack of accessibility for certain population groups.  Unlike findings in some other countries, privacy concerns did not emerge as a dominant issue. Men showed higher interest than women in the digital shekel, and interest was positively correlated with age and with income level. [Read more at the BOI]

Sponsored Content:

Upcoming Speaking Engagements:

  • 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 (20250216)

~ kiffmeister

Namibia: retail CBDC exploration and roadmap (IMF)

The IMF published a high-level report on central bank digital currency (CBDC) technical assistance (TA) provided to the Bank of Namibia (BoN) in early 2024. The mission did not find a strong case for issuing retail CNDC at present to address gaps in payment systems. Initiatives such as instant payment systems have already set out to address affordability and interoperability issues. Also, major commercial banks, which have committed to these other payment initiatives, may not have additional resources available to support a retail CBDC project. Hence, authorities are advised to establish a compelling rationale for retail CBDC before embarking on a more resource-intensive undertaking. In addition, the cmission suggested that the BoN continue developing expertise and capacity in retail CBDC across policy, technology, and legal domains, including through continued engagement with stakeholders. [Read more at the IMF]

Ripple revamps website: no mention of CBDC (U.Today)

Ripple has unveiled a major redesign of its website, wiping out any mention of central bank digital currency (CBDC). Ripple said the “new look” reflects a refocus on building for the firm’s “next chapter” with a focus on the “internet of value” and transforming the way value moves around the world. Ripple has been a major player in the CBDC space, launching a complete CBDC and stablecoin platform in 2023, and advising countries like Colombia, Bhutan, Palau, Montenegro in their CBDC projects. In 2023, Ripple launched its CBDC platform for the development of CBDCs and stablecoins. [Read more on X and check out the new website here]

Sponsored Content:

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 (20250214)

~ kiffmeister

SEC acknowledges Grayscale’s XRP and DOGE ETF filings (Coin Telegraph)

On February 13, 2025 the U.S. Securities and Exchange Commission (SEC) acknowledged filings from crypto-asset manager Grayscale to list spot XRP and Dogecoin exchange-traded funds (ETFs). The SEC has 240 days following the submission of the filings to the federal register to decide whether they get the green light, which would put the deadline in mid-October 2025. In prior weeks, the SEC had also acknowledged applications for Litecoin and Solana ETFs. The decision on an XRP ETF may be complicated by the SEC’s lawsuit against Ripple Labs regarding XRP’s security status. Dogecoin’s path to approval could be more straightforward as it adopts many facets of Bitcoin, for which the SEC has approved ETF products. [Read XRP submission at the SEC]

Sponsored Content:

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 (20250213)

~ kiffmeister

Improving instant cross-border payments using central bank money settlement (BIS)

The Bank for International Settlements (BIS) published an update on Project Rialto, which is exploring connecting instant payment systems (IPSs) across borders using central bank money (CBM) on a tokenized platform and an automated foreign exchange (FX) conversion layer. Such integration raises some specific challenges and design considerations, which will be addressed in the development phase and form an integral part of the project’s contributions to improving cross-border payments. This report identifies the main policy and technical aspects to be considered, with the next steps being to develop at proof of concept. [Read more at the BIS]

Practical approaches to extend payment system operating hours (CPMI)

The Committee on Payments and Market Infrastructures (CPMI) published a paper that analyzes and outlines practical approaches that have been used to address some of the key challenges of extending or aligning real-time gross settlement (RTGS) system operating hours. Limited RTGS system operating hours and gaps between jurisdictions’ operating hours due to time zone differences can lead to delays in settlement of cross-border payments. Several RTGS systems have extended operating hours in recent years and have experienced notable adoption of the additional hours. With the extended hours, payment system participants can offer better services to end users, such as 24/7 fast payments. Many more RTGS systems are evaluating or planning to extend operating hours. [Read more at the BIS]

Sponsored Content:

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.