A Macroeconomic Model of Remunerated Central Bank Digital Currency (NBER)
The U.S. National Bureau of Research (NBER) published a paper that develops a calibrated New Keynesian DSGE model featuring monopolistic banks to assess the macroeconomic impact of introducing a remunerated central bank digital currency (CBDC). The analysis shows that households gain from enhanced liquidity services and higher deposit interest rates due to reduced bank market power, while banks experience lower profits and lending volumes. Exploring economies across different interest rate regimes, the authors identify significant welfare improvements from remunerated CBDC adoption, especially in economies with high interest rates where banks have substantial market power in deposit markets. They propose a practical CBDC interest-rate setting rule—setting it as the greater of zero and the policy rate minus one percentage point—which closely approximates the optimal rate found in their model. [Read more at the NBER]
Ripple Follows Circle in Bid for US Banking License (Decrypt)
Ripple has filed an application with the Office of the Comptroller of the Currency (OCC) to obtain a national bank charter, following in the footsteps of Circle’s similar application just two days earlier. The application comes as stablecoin issuers prepare for expected regulatory requirements under the GENIUS Act legislation, which recently passed the Senate. Ripple has also filed for a Federal Reserve master account through its Standard Custody subsidiary, which would allow it to hold RLUSD stablecoin reserves directly with the Fed and provide more flexibility for processing digital assets. [Read more at X]
Peter Thiel joins tech billionaires backing new lender Erebor to rival Silicon Valley Bank (FT)
A group of tech billionaires including Palmer Luckey of Anduril and Joe Lonsdale of 8VC are launching Erebor, a new US bank designed to serve the gap left by Silicon Valley Bank’s collapse in 2023. Backed by high-profile investors including Peter Thiel’s Founders Fund, the bank aims to serve tech companies and crypto businesses that traditional banks often reject, with a particular focus on virtual currencies, AI, defense, and manufacturing companies. Erebor has applied for a national bank charter and plans to differentiate itself by working with underserved customers who lack sufficient access to credit, with stablecoin transactions expected to be a significant part of its operations. The bank will be headquartered in Columbus, Ohio, with a New York office, and will operate primarily through digital channels. [Read more at the FT]
Moody’s Brings Credit Ratings Onchain via Solana (CoinTelegraph)
Moody’s partnered with fintech startup Alphaledger in June 2025 to run a pilot program exploring how traditional credit ratings could be integrated into blockchain systems using the Solana network. The experiment involved creating a tokenized municipal bond on Solana, with Moody’s providing a real credit rating that was then pushed directly onto the blockchain via API, making it permanently embedded and publicly viewable as part of the token’s metadata. This allows smart contracts and decentralized applications to automatically query bond ratings without needing external verification, potentially enabling real-time credit assessments, automated compliance, and new forms of programmable financial infrastructure. [Read more at CoinTelegraph]
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.
