Just a reminder that I produce a monthly digest of digital fiat currency (DFC) developments exclusively for the official sector (e.g., central banks, ministries of finance and international financial institution (e.g., the BIS, IMF, OECD, World Bank)) plus academics and firms that are active in the DFC space (commercial banks, technology providers, consultants, etc.). It goes out via email on the first business day of every month, and if you’re interested in being on the mailing list, please email me at john@kiffmeister.com.
The Digital Euro Gets Shakier (Noelle Acheson)
Noelle Acheson published an article that details mounting challenges facing the European Central Bank’s digital euro initiative, highlighting significant delays and cost overruns that cast doubt on the project’s viability. She notes troubling signs including prolonged reporting delays, stalled legislative progress following the resignation of key EU officials who oppose the project, and ongoing tender processes that should have been completed months ago. While the ECB allocated approximately €1.2 billion just for initial development tenders in January 2024, with over half dedicated to offline functionality that is proving more complex than anticipated, the banking industry faces an estimated €18 billion in adaptation costs for a service that could threaten their deposit base. Noelle expresses particular skepticism about the €154 million allocated for app design, questioning why a central bank is developing retail-focused applications, and suggests that despite ECB President Christine Lagarde’s public pressure on lawmakers, the project appears increasingly unstable with potential for significant scaling back of ambitious features. [Read more on Medium]
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]
