Retail CBDC Design for Basic Payments Feasibility Study (BOC)
The Bank of Canada (BOC) published a paper that explores the technical architecture for a retail central bank digital currency (CBDC) tailored for basic payments. The authors analyze a micro-partitioned system based on the UTXO (unspent transaction output) funds model, using a two-tiered model based on OpenCBDC 2PC as a representative design. It found that the baseline design handles over 250,000 transactions per second (TPS), though privacy-preserving variants (e.g., Pedersen commitments) reduce performance. Privacy is enhanced by minimizing central bank visibility into user data, with optional anonymity for users. Challenges include integrating with existing retail payment systems, auditing large-scale monetary supplies, and ensuring core system resilience. The study concludes that such architectures are feasible for basic payments but highlights areas needing further research, such as compliance mechanisms and recovery protocols for system outages. [Read more at the BOC]
Coinbase Seeking US SEC Approval to Offer Blockchain-Based Stocks (Reuters)
Coinbase is seeking U.S. Securities and Exchange Commission (SEC) approval to offer tokenized equities. Chief Legal Officer Paul Grewal described the initiative as a “huge priority,” emphasizing the benefits—lower trading costs, faster settlement, and 24/7 access—while acknowledging lingering concerns over liquidity, global standards, and regulatory clarity. To proceed in the U.S., Coinbase must secure a “no-action letter” or similar exemptive relief from the SEC, since it isn’t registered as a broker-dealer. Grewal did not specify whether a formal SEC request had been filed or when the launch might occur, though the move follows rival Kraken’s recent rollout of tokenized U.S. equities outside the United States. [Read more at Reuters]
Upcoming Speaking Engagements:
The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]
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.
