European Commission Consumer Survey: Offline transactions (EC)
The European Commission (EC) has launched a study to assess existing technology and technology preferences for offline electronic proximity transactions. The study has three objectives: (1) conduct a market analysis and forecast future trends for offline payments; (2) perform a technology assessment of currently available solutions and explore future innovation scenarios and; (3) identify barriers to innovation. The study is kicking off with a survey conducted by Bearing Point to seek opinions from a consumer perspective to help understand current end user preferences on electronic payments in terms of devices, value transfer technologies but also possible hurdles that may serve as barriers to adoption of potentially innovative payment solutions. [Read more at the EC]
Bank of England / BIS Innovation Hub DLT Innovation Challenge (BoE)
In collaboration with the Bank for International Settlements Innovation Hub (BISIH), the Bank of England (BoE) has launched the DLT Innovation Challenge to engage with the private sector to better understand the implications of incorporating distributed ledger technology (DLT) into wholesale central bank settlement, and demonstrate how to securely transact and settle central bank money on an external ledger that is not controlled by the Bank. In particular, it will explore environments where trust is not inherent—where participants must rely on mechanisms other than central bank control of the ledger to ensure security, finality, and integrity. This framing allows us to test how trust can be established in decentralized or externally governed infrastructures, and to draw insights that may inform the wider wholesale experimentation program. [Read more at the BoE]
The Next-Generation Monetary and Financial System (BIS)
The Bank for International Settlements (BIS) issued a “special chapter” ahead of its 2025 Annual Economic Report, cautioning that privately-issued stablecoins lack essential qualities of “sound money”—namely integrity (against financial crime and other illicit activity), singleness (accepted universally without hesitation), and elasticity. Stablecoins’ failure on elasticity stems from their construction: any additional issuance requires full upfront payment by holders (i.e., a strict cash-in-advance setup with no room to create leverage when it is required for the functioning of the system). This differs fundamentally from banks, which can elastically expand their balance sheets by extending credit within regulatory limits. Stablecoins also pose risks to monetary sovereignty, financial stability, and emerging‑market capital flows. Instead, it advocates for a monetary system built on a unified ledger platform integrating tokenized central bank reserves, commercial bank deposits, and government bonds. [Read more at the BIS]
Guidance on Financial Inclusion and AML/CFT Measures (FATF)
The Financial Action Task Force (FATF) published guidance on aligning financial inclusion with anti-money laundering and counter-terrorist financing (AML/CFT) measures. It promotes a risk-based approach (RBA) to ensure proportionate measures, allowing simplified due diligence in lower-risk scenarios while maintaining robust controls for higher risks. The guidance addresses barriers to financial inclusion, such as identity verification challenges and de-risking, and provides examples of best practices from various countries. It also highlights the role of digital financial services and public-private collaboration in expanding access to regulated financial systems for underserved populations, ensuring integrity and inclusivity. The document is non-binding but encourages policymakers, regulators, and financial institutions to adopt flexible, risk-sensitive frameworks. [Read more at the FATF]
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.
