The CBDCTracker.org database has been updated. Key developments include the Reserve Bank of India expanding its pilots of the Digital Rupee and tested both offline and programmable features, the European Central Bank advancing its Digital Euro preparation phase with ongoing research, the Bank of Israel launching a proof of concept, the Swiss National Bank extending its Project Helvetia wholesale CBDC securities settlement pilot, and Pakistan’s central bank confirming its ongoing research into retail CBDC designs. Also, the central banks of both the Economic and Monetary Community of Central Africa (EMCCA) and the West African Monetary Union (WAMU) announced research into retail CBDCs for their currency unions. Check out the CBDCTRacker.org website for more details.

Analyzing CBDC Adoption in Jamaica and The Bahamas (Cato Institute)

The Cato Institute published a briefing paper by Nick Anthony that examines the implementation and adoption of central bank digital currency (CBDC) in Jamaica (JAM-DEX) and The Bahamas (SandDollar), concluding that both initiatives have fundamentally failed to achieve their stated objectives. The analysis demonstrates that CBDCs in both countries have failed to gain traction with consumers or businesses, instead becoming little more than vehicles for government handouts—distributed through limited-time giveaways and incentive programs, with little lasting use. The paper documents how virtually every increase in CBDC circulation corresponds directly to government interventions rather than organic adoption, with Jamaica’s CBDC representing merely 0.1 percent of cash circulation despite extensive promotional efforts. Similarly, The Bahamas achieved a 30% sign-up rate but struggled with actual usage. Anthony argues that these Caribbean experiments reveal a fundamental flaw in CBDC policy: people are already well-served by existing payment options including cash, cards, and digital apps, making CBDC an unnecessary redundancy that requires artificial incentives to maintain even minimal usage levels. [Read more at the Cato Institute]

Central Bank and Media Sentiment on CBDC – An International Perspective (BIS)

The BIS published a paper that examines central bank and media sentiments regarding CBDCs across 15 major economies from 2016 to 2022, using large language models to analyze over 1,200 central bank publications and nearly 29,000 news articles. The study reveals significant divergences between central bank and media sentiments, with notable variations over time and across jurisdictions, finding that central bank sentiment tends to exert a stronger influence on media sentiment than the reverse. The research identifies substantial cross-border sentiment spillovers, where sentiment in leading economies shapes sentiment in other regions. The findings suggest that while media generally express more positive views about CBDCs and focus on technological aspects, central banks concentrate more on payment system implications and financial stability concerns, with the sentiment gap having narrowed over time since the initial period when media sentiment significantly exceeded central bank sentiment. [Read more at the BIS]

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]

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.). (DFCs include central bank digital currency (CBDC), stablecoins and tokenized deposits.) 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.