Third Progress Report on the Digital Euro Preparation Phase (ECB)
The European Central Bank (ECB) published its third progress report on the preparation phase of a digital euro. Since the second report, the ECB has made progress on the draft digital euro scheme rulebook, which aims to harmonize digital euro payments across the euro area. The ECB has also conducted extensive user research and experimentation engaging with market participants, merchants, and consumers through various sessions and focus groups, to ensure the digital euro meets the needs of end users and provide technical input to support the legislative process. The project’s next steps include finalizing tender procedures to select providers for the digital euro platform and infrastructure, drafting the scheme rulebook, and testing and implementing the digital euro’s technical specifications. [Read more at the ECB]
U.K. Digital Gilt Instrument (DIGIT) Pilot Update (HMT)
The U.K. Treasury (HMT) provided an update on the preparations for its Digital Gilt Instrument (DIGIT) pilot. The government is still reviewing responses to the Preliminary Market Engagement Notice (PMEN) published in November 2024, but announced a further set of features to be tested in the pilot. These features include (i) delivering distributed ledger technology (DLT) on-chain settlement. prioritize solutions that allow DIGIT to be settled on DLT including the cash leg of DIGIT transactions, (ii) enabling settlement of over-the-counter trades including using smart contracts, (iii) working with industry, platform providers and existing market infrastructure providers to foster interoperability in supporting access to DIGIT from investors operating in both traditional and DLT markets, and (iv) delivering greater transparency. The government plans to engage with the Digital Markets Champion and appoint industry leads to these roles in the Autumn of 2025. Further details on the pilot will be published over the summer, with the aim of appointing suppliers later tin 2025. [Read more at HMT]
Citigroup Looks to Issue Its Own Stablecoin to Smooth Payments (Bloomberg)
According to CEO Jane Fraser during a post-earnings call, Citigroup is considering issuing its own stablecoin, as part of the bank’s broader digital assets strategy, which includes reserve management and crypto custody services, aiming to strengthen its position in the digital payments space. Fraser pointed to the supportive regulatory framework under the Genius Act, which enables banks to participate more fully in digital assets. [Read more at Bloomberg]
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.
