In a letter to the G20, Financial Stability Board Chair Andrew Bailey called for further attention to be given to assessing the increasing role of stablecoins for payment and settlement purposes, on account of under-explored potential risks, in part due to the pace of market developments. He called for the FSB to continue to ensure that it is implementing its agreed recommendations, monitoring developments in this area and collaborating across jurisdictions and with the standard-setting bodies where relevant. [Read more at the FSB]
The U.S. Federal Reserve Board (FRB), Office of the Comptroller of the Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) have published a statement outlining their expectations for banks providing crypto custody services. The statement emphasizes the importance of banks having the necessary knowledge and understanding of crypto safekeeping to conduct the activity safely and in compliance with regulations. It also highlights the risks associated with cryptographic keys, legal and compliance risks, and third-party risks, particularly in the case of sub-custodians. This guidance comes after a shift in regulatory policies since President Trump’s second administration, which rolled back the Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) 121 that effectively prevented banks from providing crypto custody. [Read more at the FRB]
In an article published on Bloomberg, Mastercard’s chief product officer, Jorn Lambert, says stablecoins have a long way to go before becoming a mainstream payment tool. While stablecoins offer promising attributes like high speed and low costs, they lack essential attributes like a seamless user experience and wide distribution to consumers. Mastercard is positioning itself as a bridge between digital assets and traditional finance, providing infrastructure to make stablecoins usable at scale by leveraging its global network and security safeguards. However, Lambert notes that stablecoin adoption faces significant hurdles, including consumer adoption and friction in online checkout experiences, making it difficult to clear in the near-term. [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.
I spent a very pleasant hour with Digital Euro Association (DEA) Chair Jonas Gross chatting about the evolution of digital currency, from central bank digital currency (CBDC) to stablecoins and tokenized deposits. Here’s the TL;DR but click here for the whole podcast, which I think you’ll find interesting:
CBDCs are at a pivotal stage, with wholesale CBDCs gaining renewed interest for their potential in efficient, high-value settlements—especially as tokenized deposits and atomic settlement use cases emerge. However, retail CBDCs face uncertainty, as countries like Canada, Sweden, and the UK pause or scale back projects due to limited public interest and adoption challenges, while the European Central Bank continues to push ahead with its digital euro preparations. Lessons from early adopters show that technology alone is insufficient without strong merchant integration and public education. Meanwhile, stablecoins are rising in influence, but their future depends on regulatory acceptance and central bank backing. The debate continues between permissioned and permissionless blockchain infrastructures, and their roles in creating modular, interoperable financial systems .
Bank Negara Malaysia (BNM) published a paper that explores the fundamental nature of modern money—characterizing it as a credit relation and a promise to pay abstract value—and examines its implications for Shariah (Islamic law) analysis, particularly in the context of central bank digital currency (CBDC). It argues that modern money, unlike classical commodity-based money, is constituted by social, economic, and political relationships among individuals, banks, central banks, and the state. The authors highlight that traditional Shariah conceptions, which treat money as a tangible commodity, do not fully capture the essence of modern money. They propose a hybrid Shariah approach that recognizes modern money as both a means of payment and a credit instrument, suggesting that the rules of riba (usury) should apply to modern money in its various forms, including CBDCs, to ensure alignment with Islamic principles. [Read more at the BNM]
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.
The IMF published the results of a study that leveraged a combination of AI and machine learning to estimate the geographic distribution of international stablecoin flows. Analyzing $2 trillion in stablecoin transactions during 2024, it finds that stablecoin flows are highest in absolute terms in North America ($633 billion) and Asia-Pacific ($519 billion). However, the most significant flows relative to GDP were in Latin America/Caribbean (7.7%) and Africa/Middle East (6.7%). Additionally, intraregional flows in these two regions are notably lower, accounting for 14% and 12% of total flows originating from the region, compared to, for example, 34% in North America. This suggests that stablecoin use in Africa and Latin America is predominantly international, possibly driven by use cases such as remittances. The study also establishes a correlation between net stablecoin inflows into regions and the relative weakness of domestic currencies against the U.S. dollar, either suggesting that stablecoins serve as a mechanism to fulfill global demand for dollar-based assets for people that seek a hedge against currency depreciation, or that stablecoin flows could possibly be sizable enough to drive exchange rate dynamics. [Read more at the IMF]
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.
The BIS published a paper that examines the emerging market for tokenized government bonds, analyzing a dataset of 39 tokenized bonds (24 corporate, 15 government/supranational) worth $8 billion total against the backdrop of the $80 trillion global government debt market. The authors find that despite being in early experimental stages, tokenized bonds demonstrate modestly superior performance compared to conventional bonds from the same issuers – specifically exhibiting lower bid-ask spreads (19 vs 30 basis points), comparable issuance costs, and significantly lower minimum investment thresholds ($110,000 vs $185,000). The paper argues that tokenized government bonds could serve as a foundational element of a future tokenized financial system alongside tokenized central bank reserves and commercial bank deposits, potentially enhancing market efficiency through programmable features, faster settlement, and broader investor access. However, the authors maintain a cautious perspective, noting that widespread adoption faces substantial regulatory uncertainty, technological scalability challenges, and infrastructure development requirements, with the ultimate success dependent on addressing these implementation barriers rather than the modest technical advantages observed thus far. [Read more at the BIS]
Galaxy Digital published an examination of how stablecoins and decentralized finance (DeFi) are fundamentally restructuring global credit intermediation, driven by three key trends: adoption as savings instruments in emerging markets with weak currencies, use as efficient cross-border payment rails competing with traditional systems like SWIFT, and access to above-market yields through DeFi protocols. The analysis argues that this growth will systematically drain deposits from traditional banks—particularly regional and emerging market institutions—while concentrating assets in US Treasury securities and major US financial institutions, effectively creating enforced credit contraction in certain regions while over-allocating credit to the US government. Galaxy Digital contends this represents a paradigm shift with stablecoin issuers emerging as significant players in government debt markets and potentially new credit intermediaries, ultimately creating an “efficient frontier of digital dollar investments” that could reshape monetary policy, financial stability, and the architecture of global finance. [Read more at Galaxy Finance]
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.
The Central Bank of Myanmar (CBM) reportedly plans to introduce a central bank digital currency to reduce the use of banknotes. The CBM has formed a committee of 13 members, including a deputy governor, to study and analyse the best methods, technologies, and regulatory frameworks to use in ensuring the successful introduction of the CBDC into the economy, as well as assess its potential impacts on payments systems and monetary policy. The committee will also be responsible for overseeing and maintaining the infrastructural foundations, funding, and regulation of the digital currency after it is introduced. [Read more at Myanmar Now]
The State Bank of Pakistan is reportedly planning a central bank digital currency (CBDC) pilot. Governor Jameel Ahmad said that the central bank is building up appropriate capacity and hoped to roll out a pilot soon. However, this should be taken with a grain of salt, since the central bank has twice before made false starts to CBDC work, most recently in 2023. [Read more at Ledger Insights]
The Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) provided an update on Project Acacia. It will explore how different forms of digital money and associated infrastructure could support the development of wholesale tokenized asset markets in Australia. 19 pilot use cases, and 5 proof-of-concept use cases, have been conditionally selected for this next stage of the project to take place over six months. The use cases involve a range of asset classes, including fixed income, private markets, trade receivables and carbon credits. Proposed settlement assets for the use cases include stablecoins, bank deposit tokens, and pilot wholesale central bank digital currency (CBDC), as well as new ways of using banks’ existing exchange settlement accounts at the RBA. Issuance of pilot wholesale CBDC for testing use cases will occur on a range of private and public-permissioned distributed ledger technology (DLT) platforms. The Australian Securities and Investments Commission (ASIC) will provide regulatory relief to participants to support and streamline the pilot. [Read more at the RBA]
The Atlantic Council published an article by Ashley Lannquist that discusses the growing popularity of stablecoins, while highlighting the risks and frictions. The article points out regulatory gaps, potential financial instability, and the lack of transparency in reserve backing, which could lead to liquidity crises if many users redeem stablecoins simultaneously. It also examines geopolitical concerns, such as the use of stablecoins to evade sanctions, and operational risks like cybersecurity threats. Also, despite their utility in cross-border payments and decentralized finance (DeFi), stablecoins’ value for everyday payments remains to be seen. [Read more at the Atlantic Council]
Falcon USD (USDf), a crypto-backed, overcollateralized stablecoin issued by Falcon Finance, a subsidiary of DWF Labs experienced a depegging event, with its price dropping as low as $0.98 and briefly to $0.9432 before recovering to around $0.995. This incident has raised concerns about the transparency and quality of the collateral backing USDf, as well as the potential risk of a broader stablecoin crisis reminiscent of the Terra (LUNA) collapse. Critics and risk consultants have pointed to a lack of clarity regarding the composition and liquidity of USDf’s reserves, and have questioned its inclusion as collateral on DeFi lending platforms. In response to the depegging and growing scrutiny, DWF Labs’ CEO has pledged to provide a more detailed breakdown of the assets backing USDf. [Read more at Ledger Insights]
Fireblocks published an article about the regulatory barriers that prevent banks from effectively utilizing permissionless blockchains, despite their potential benefits. For example, Basel III’s emphasis on knowing all node operators results in a maximum 1250% risk weight for tokenized assets on public blockchains, making them approximately 12 times more expensive to hold than traditional assets. The article contends that these regulatory mismatches discourage banks from adopting infrastructure that could provide trust through decentralization, continuous innovation, and programmable finance capabilities. To address these challenges, the author advocates for more nuanced regulatory approaches that distinguish between different types of risks, focus on how banks actually use blockchain networks rather than the networks’ permission models, and recognize that governance and compliance controls can be embedded at the token or application layer rather than requiring control over the entire network infrastructure. [Read more at Fireblocks]
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.
I’m continuing my break from blow-by-blow reporting of fintech developments, and focusing on cleaning up central bank digital currency (CBDC) databases. Yesterday, I mused over CBDCness of Cambodia’s project Bakong, which remains up in the air as I wait some concrete evidence that the National Bank of Cambodia guarantees individual customer holding. Today, I’m doing some backfilling on the research projects being run by two African currency union monetary authorities. One is an update of CBDC work of the Banque des Etats de l’Afrique Centrale (BEAC) which has been in my database for some time but without any updates since 2022, and that old update wasn’t from an official source. The second one is one I missed completely; the Banque Centrale des Etats de L’Afrique de L’Ouest (BCEA) CBDC research that started in 2023.
[July 2023] The Banque Centrale des Etats de L’Afrique de L’Ouest (BCEAO) launched a research project, under the aegis of its FinTech Committee, to assess the utility of issuing central bank digital currency (CBDC) in the West African Monetary Union (WAMU) region (Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo). The mandate of the project group is to identify the objectives, challenges, and risks related to the CBDC issuance within WAMU, conduct a feasibility study, including the identification of use cases, prerequisites, key success factors, risk control mechanisms, and design options for CBDCs, assess the potential impact of CBDCs on the roles and activities of the BCEAO, and review potential impact on credit institutions, microfinance institutions, other financial ecosystem players, and financial inclusion. [Read more in the BCEAO 2023 Annual Report]
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.
The paper below was published in March 2024, and I had parked it while I pondered what to do with it. Now that this summer’s “doldrums” have settled in, I thought it would provide a good opportunity to update my thinking about the National Bank of Cambodia’s Project Bakong, launched in 2019, which was touted by the World Economic Forum as a “quasi-form of central bank digital currency (CBDC)”. I’ve never included it in my tabulations of central bank CBDC explorers because of that “quasi-form” qualifier, but the paper below takes a deeper dive into the Bakong plumbing that does lend some credence to Bakong being a CBDC although there are still unanswered questions. So here we go…
The Asian Economic Policy Review (AEPR) published a paper on the Project Bakong retail payment platform, launched by the National Bank of Cambodia (NBC) in October 2020. It is built on Hyperledger Iroha distributed ledger technology (DLT), and accessible through a mobile app that allows users to send, receive, deposit, and make QR code payments in Cambodian Riel (KHR) and USD. It is not a traditional interbank payment system in that all Bakong account balances are fully backed by reserves held in NBC wholesale settlement accounts, rather than being fractionally backed like regular deposits and deposit tokens. The NBC records individual end-user Bakong balances which are considered “cash equivalents” according to the Bakong 2020 white paper. The paper takes that to mean that the NBC explicitly guarantees the end-user balances, which the authors say they confirmed with NBC staff, which it argues makes Bakong a retail central bank digital currency (CBDC) platform according to the BIS (2020) CBDC definition (i.e., “a direct central bank liability”). [Read more at the AEPR]
It would be handy if the NBC published its financial statements, where we might expect some clarity on how Bakong is accounted for, but they don’t apparently!? This clarification seems important, because the NBC itself adamantly denies that Bakong is a CBDC platform! Mind you, it is odd that then NBC Assistant Governor Chea Serey, said that “we don’t gain any seigniorage from issuing it” yet surely the NBC earns seigniorage on the Bakong reserves held in NBC wholesale settlement accounts? Also, it’s notable that Soramitsu, NBC’s technology partner on the project, describes Bakong as a “next-generation real-time gross payments system” and not a CBDC platform?
If indeed the NBC explicitly guarantees user Bakong accounts, then at least conceptually Bakong is a retail CBDC, but I would really like to see how they account for it in their audited financial statements, which they don’t seem to share with the public. Also, it’s notable that on the Bakong official website, no mention is made of the guarantee. So until I have that concrete evidence, Bakong will remain in CBDC limbo.
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.
105 central banks (unchanged from the end of May) have recently launched, piloted, experimented with and/or researched retail central bank digital currency (CBDC) not including two that started issuing retail CBDC and then shut the platforms down (Ecuador and Finland). Of note, Bolivia, which was added last month has been officially confirmed.
Keep in mind that I don’t count all of the individual national central banks that are part of currency unions (e.g., the European or Eastern Caribbean Currency Unions). If I did the tally that way, my count would be around the oft-quoted 130+ central banks (e.g., see the Atlantic Council’s CBDC Tracker). Also, the table was compiled from publicly available sources, including the media and central bank websites, and not verified through official channels. If I’m missing anything, or you find mistakes in the tabulation, please let me know in the comments!
Another thing to note is that I’m not currently including wholesale CBDC-backed retail tokenized deposits, like those being experimented with in the Banco do Brasil Drex proof-of-concept work, and South Korea’s recently launched “CBDC” pilots. I say “currently” because the retail payment instruments being tested do not seem be direct liabilities of the central bank, which means they don’t align with the BIS (2020) CBDC definition I go by (“a digital payment instrument, denominated in the national unit of account, that is a direct liability of the central bank”). However, I don’t know enough about the architectures of these projects from publicly-available information to know for sure whether the tokenized deposits are direct central bank liabilities. I would appreciate it if anyone out there can provide some clarity on this.
BTW for those who want a more historical view of CBDC developments I strongly recommend the CBDCTracker.org database, which is more accurate than its Atlantic Council counterpart, and more frequently updated.
Notes: The difference between a “pilot” and “proof of concept” (POC) is that a pilot involves actual users, whereas a POC does not, even though some POCs may involve central bank staff. (Again the Atlantic Council puffs up its numbers with a very loose definition of “pilot”.) Also, because the tabulation is based only on publicly-available information, it is likely that there is some POC activity in the “research” category, but no announcements have been made. Finally, entries that are crossed through indicate that the projects have been shut down. Also, the ones that are crossed out, are where the central bank has considered issuing CBDC but then decided to cancel the research or put it on hold (“watchful waiting”).
The Bank of England’s (BoE’s) Financial Market Infrastructure Executive Director, Sasha Mills, outlined the central bank’s vision for digitalizing wholesale financial markets through tokenization of assets and smart contracts on distributed ledger technology (DLT). She pointed to the Bank’s updated thinking on settlement assets, particularly allowing systemic stablecoins to be backed by remunerated high quality liquid assets (HQLAs) rather than solely unremunerated central bank deposits. Ms. Mills highlighted progress through the Digital Securities Sandbox and the UK Government’s Digital Gilt pilot (DIGIT), while outlining plans for enhanced access to the upgraded real time gross settlement (RTGS) service and exploring synchronization interfaces to enable conditional settlement across different ledger systems. She emphasized that the future financial system will likely be a “mixed ecosystem” where new and old structures coexist, requiring interoperability between different systems, and called for moving beyond theoretical discussions to practical implementation of these digital foundations. Ms. Mills also floated potential holding limits for systemic stablecoins, likely be in the region of £10,000 to £20,000 for individuals and £10 million for businesses. [Read more at the BoE]
The Monetary Authority of Singapore (MAS) published a paper on the implementation of tokenized deposits and shared ledger technology in foreign exchange (FX) transaction banking within Project Guardian. It presents three architectural models: single-bank ledgers for internal transfers, multi-bank shared ledgers requiring governance consensus, and cross-ledger interoperability through protocols like hash time-locked contracts. The architecture relies heavily on price oracles for FX rate discovery and smart contracts for programmable compliance. However, critical technical challenges remain unaddressed, including consensus mechanism selection, cross-chain settlement finality, oracle failure scenarios, and performance scalability for institutional-grade transaction volumes in distributed ledger environments. [Read more at the MAS]
The United Nations Development Programme (UNDP) published a five-stage methodology for implementing central bank digital currencies (CBDCs) to advance financial inclusion in emerging economies. The methodology progresses through: (1) understanding financial inclusion barriers and user needs, (2) CBDC preparation including cost-benefit analysis and stakeholder coordination, (3) user-centric design and prototyping with emphasis on privacy protection and accessibility, (4) piloting to test assumptions and gather feedback, and (5) full implementation with ongoing monitoring and capacity building. The paper emphasizes that retail CBDCs, when properly designed with features like offline functionality and simplified identification requirements, can address persistent barriers such as high transaction costs, limited documentation, and poor connectivity that exclude underserved populations from traditional financial services. However, the authors stress that CBDCs should be viewed as one component of broader Digital Public Infrastructure rather than standalone solutions, and successful implementation requires robust stakeholder engagement, regulatory frameworks, and continuous adaptation to ensure these digital currencies effectively serve vulnerable populations while maintaining security and sustainability. [Read more at the UNDP]
The OECD published a paper that examines competition in the rapidly growing mobile payment services sector. While mobile payments offer opportunities for innovation and enhanced competition by potentially bypassing traditional payment rails controlled by banks and card networks, several competition risks are emerging. These include market concentration, data asymmetries favoring BigTech companies, barriers to accessing key technologies like NFC, and exclusionary practices such as self-preferencing. Despite entry from FinTechs, BigTech firms, and mobile network operators, traditional payment providers have largely preserved their market positions through structural advantages and regulatory barriers. The paper recommends combining proactive competition enforcement with targeted pro-competitive regulations, including open banking frameworks, data portability requirements, interoperability standards, and development of alternative public payment infrastructures. Success requires coordination between competition authorities and financial regulators to ensure mobile payment markets remain contestable and deliver benefits to consumers and merchants. [Read more at the OECD]
The Central Bank of Bahrain (CBB) introduced a framework for licensing and regulating stablecoin issuers. It mandates that any entity seeking to issue, mint, burn, custody, or offer stablecoins from within Bahrain must be licensed and obtain CBB approval—unregulated activity is prohibited . Licensed stablecoin issuers will be permitted to issue single currency stablecoins backed by Bahraini Dinar (BHD), United States Dollar (USD), or any other fiat currency acceptable by the CBB, with a strict 1:1 high-quality liquid reserve requirement (cash and demand deposits held at banks with at least an AA‑ credit rating or its equivalent, debt securities issued by the CBB, or repurchase agreements (repos) backed by short‑term government money‑market instruments). The module also allows yield-bearing variants—returns generated solely from interest or Sharia-compliant rewards on reserve assets—but caps issuers from offering interest tied to user balances. [Read more at the CBB]
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.
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 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]
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.
