The Bank of Korea reportedly plans to use wholesale central bank digital currency (CBDC) to back the distribution of over $79 billion in government subsidies in the second phase of the “Han River Project”. This move, proposed by the Ministry of Strategy and Finance, is aimed at making subsidy payments more efficient and transparent by issuing CBDC-based tokenized bank deposits to contractors instead of traditional vouchers or bank transfers. By leveraging blockchain technology, the initiative seeks to reduce fraud and improve the tracking of public funds, and it marks a significant shift from a previous pause in CBDC testing. [Source: Hankook]
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]
Stablecoin NYC 2025 (New York City on November 14-15) will be the definitive conference for exploring the future of digital money and intelligent payments. The event brings together founders, C-level executives, investors, policymakers, and developers for two immersive days of talks, panels, and networking. This be the place to be if you’re building, backing, or regulating the next wave of programmable finance. [Register here]
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.
The MIT Digital Currency Initiative (DCI) published a critique of the recently passed Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, the first U.S. federal law regulating payment stablecoins. While the Act establishes redemption requirements and sets a framework for compliance, it leaves unresolved issues around maintaining stablecoin value in secondary markets, technical interoperability, and regulatory standards for security and smart contracts. The law prohibits issuers from paying interest and introduces ambiguities in its scope—especially regarding new stablecoin models and decentralized systems. Ultimately, although the GENIUS Act represents a major policy advance, unresolved policy, technical, and regulatory questions may impact both users and the future growth of stablecoins in the U.S. [Source: MIT DCI]
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.
A team of central bankers posted a paper on SSRN that reviews the practical rollout and early experiences of retail central bank digital currencies (CBDCs) in The Bahamas (SandDollar), China (e-CNY), and Jamaica (JAM-DEX®) as of August 2025. It finds that while adoption has been gradual, there hasn’t been substantial movement of bank deposits to these CBDCs, largely because they function as payment instruments rather than savings vehicles. Each country’s approach reflects unique policy goals—such as financial inclusion and payments modernization—utilizing two-tiered, account-based structures with simple onboarding for the unbanked, and incentives to boost user and merchant uptake. The report highlights that robust communication, private sector participation, and overall adaptability are vital for success, and that while CBDCs still represent a small slice of total payments, they fill important gaps and offer valuable lessons for global policymakers. [Source: SSRN]
The Bank of Japan (BOJ) published a paper that examines non-ledger-based payment systems—specifically, cryptographic electronic cash that enables direct, peer-to-peer value transfer without a central ledger or always-online intermediary. It details the design, security, privacy, and usability of such systems, emphasizing their ability to facilitate offline payments much like physical cash. The study highlights advances such as the use of tamper-resistant devices, cryptographic mechanisms to mitigate double spending, and protocols to retain user privacy while allowing for traceability when necessary. By testing modern smartphones for real-world feasibility, the paper finds that technical barriers once faced by e-cash systems have largely been resolved. Ultimately, the study suggests that electronic cash could combine the best aspects of physical cash—privacy, resilience, and convenience—with the benefits of digital payments, positioning it as a viable option in the evolving landscape of cashless societies. [Source: BOJ]
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.
The World Federation of Exchanges (WFE) has urged global regulators to take decisive action against tokens that mimic traditional equities. The WFE warns that these tokenized equities, often issued by unregulated brokers or crypto platforms, can fragment liquidity, undermine price discovery, and deny investors essential shareholder rights and protections. Concerns also include unclear legal claims and weak disclosure standards. The WFE calls for technological neutrality in regulation, ensuring that tokenized and traditional equities are held to the same high standards, with coordinated international oversight to tackle legal loopholes and safeguard both investors and issuers. [Source: WFE]
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.
The Bank for International Settlements (BIS) published its annual central bank digital currency (CBDC) survey. It found that 91% of the 93 central banks surveyed were actively exploring CBDCs in 2024, with wholesale CBDC development generally more advanced than retail versions. The primary motivation remains preserving the role of central bank money amid declining cash usage and rising asset tokenization, with over one-third of central banks accelerating their CBDC work in response to stablecoin developments. Significant differences exist between advanced economies and emerging market economies in terms of legal frameworks, design features, and use cases—with emerging economies more likely to have clear legal authority and consider features like distributed ledger technology. Simultaneously, 67% of jurisdictions now have enacted or are developing regulations for stablecoins and cryptoassets, while asset tokenization has gained traction in most advanced economies and one-third of emerging markets, particularly in bond markets, suggesting a coordinated evolution of both public and private digital money initiatives. [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.
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.). (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.
Circle has launched a unified cross-chain infrastructure that enables businesses to access USDC balances across multiple blockchains, without the need to pre-position funds on each chain. By combining smart contracts and an offchain attestation service, Gateway allows users to move USDC across supported chains (such as Ethereum, Arbitrum, and Base) in under 500 milliseconds, simplifying liquidity management, reducing costs, and eliminating slow multi-chain settlements. This solution is designed to streamline both user and business experience by offering chain-agnostic USDC balances, faster payments, and easier integration for wallets, custodians, payment providers, and exchanges. [Read more at Circle]
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]
The Wyoming Stable Token Commission has launched the first fully-reserved, U.S. state-backed stablecoin, with reserves held in U.S. dollars and Treasuries. The Frontier Stable Token’s (FRNT’s) stability is fortified with a legislatively-mandated remit to achieve 2% over-collateralization. It is initially available on seven blockchains, including Ethereum, Solana, and Polygon, and will soon be accessible on major platforms such as Kraken and Rain. The Commission has partnered with LayerZero for token issuance, Fireblocks for blockchain infrastructure, Franklin Advisers for reserves management, Inca Digital for open-source intelligence and The Network Firm for audits and monthly attestations. FRNT will be made available for purchase on the Solana blockchain through Wyoming-domiciled digital asset exchange Kraken, as well as Rain’s Visa-integrated card platform on the Avalanche blockchain. [Read more at the Commission]
[July 10, 2025] National Bank of Kazakhstan (NBK) Chief Digital Officer Binur Zhalenov posted an update on progress of the digital tenge implementation for public finance purposes. More than ten public spending use cases already tested — including Digital VAT refunds, targeted funding for road repairs, National Fund-financed projects, and cross-border payment scenarios. Integration models with government information systems are being developed — paving the way for full-scale operations by the end of 2025. New pilots include the “Safe Deal” for real estate and vehicles, voucher scheme for state support measures, lending to the agro-industrial complex, construction projects, and procurement of high-value goods (medical and IT equipment). [Read more on LinkedIn]
Electronics published a paper that reviews and compares ID wallets, payment wallets, and cryptocurrency wallets by examining their core functions, technologies, and evolution. It highlights common and unique security threats for each type—such as credential leakage for ID wallets, tokenization needs for payment wallets, and key loss for crypto wallets—while analyzing how innovations like multi-factor authentication and distributed key management attempt to address these risks. The paper emphasizes that as digital identity and asset management systems merge into universal “super-app” wallets, new security vulnerabilities and design challenges arise, necessitating holistic solutions that span traditional banking, digital identity, and cryptocurrency domains. The paper aims to provide a foundation for understanding and improving the security of next-generation digital wallets as technologies and use cases continue to converge. [Read more at Electronics]
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.
Circle announced plans to launch a new stablecoin-focused, Ethereum Virtual Machine (EVM) compatible Layer 1 blockchain called Arc, which will use USDC as its native gas token. Aimed at supporting enterprise-grade stablecoin payments, FX, and capital markets, Arc promises features like a stablecoin FX engine, rapid sub-second settlement, opt-in privacy, seamless integration with Circle’s platform, and interoperability across other partner blockchains. The public testnet for Arc is expected to go live in the fall of 2025 and a mainnet beta in 2026. [Read more at Circle]
The University of California (UC) Law Journal published a paper by Jiaying Jiang that explores the debate around implementing central bank digital currency (CBDC), focusing on the tension between privacy and regulatory demands. The author argues that the prevailing fear of government surveillance is not a technical inevitability but a result of outdated anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations. To address this, the paper proposes concrete solutions: modernizing AML/CFT rules to allow for limited, threshold-based anonymity in everyday CBDC transactions; updating institutional record-keeping and reporting so small or low-risk transfers can occur privately; adopting privacy-preserving technologies like token-based payment options and encryption; and introducing clear legal carve-outs that permit financial institutions to implement privacy-by-design features without breaching regulatory obligations. These reforms, the author contends, would enable a digital dollar that protects user privacy while still equipping authorities with the tools necessary for oversight and crime prevention—demonstrating that privacy and compliance can be achieved together through thoughtful legal and technical innovation. [Read more at UC Law]
A forthcoming Bar Ilan University Faculty of Law Research Paper reports on the results of a multi-stage nationally-representatvie survey conducted in collaboration with the Bank of Israel on Israeli attitudes towards a possible digital shekel. The survey revealed that willingness to adopt was strongly correlated with trust in the central bank; respondents who expressed higher trust in the Bank of Israel were much more likely to intend to use the digital shekel. Interestingly, concerns about privacy were lower among Israelis compared to similar surveys in other countries, which may explain their relatively high acceptance. When asked about the most important features, respondents prioritized ease of use across payment scenarios, fraud protection, the ability to use the currency offline, absence of hidden fees, the option to earn interest, and above all, assurance that the central bank would not have access to personal transaction data. Overall, the survey highlights that while technical features matter, trust in the central bank is the most decisive factor influencing public willingness to adopt CBDC in Israel. [Read more at SSRN]
A paper published in the International Journal of Bank Marketing explores how personal financial planning impacts individuals’ willingness to adopt central bank digital currencies (CBDCs), using survey data from Sweden and the UK. The research finds that individuals who engage in activities such as budgeting, tracking expenses or setting long-term goals are more likely to express interest in CBDC adoption. These behaviors, reflecting financial literacy and forward-looking decision-making, align with openness to innovative financial technologies, were strengthened by perceptions of security, safety, and trust in the new technology. Individuals who believe that CBDCs are secure and that their personal data will be protected are significantly more likely to adopt the technology. Socioeconomic factors like education and age, as well as personal attitudes toward technology and risk, also influence adoption. [Read more at Emerald Insight]
The TIPS Cross-Currency (TIPS X-CCY) service, a joint initiative by the Riksbank, ECB, Banca d’Italia, and Danmarks Nationalbank, will launching in October 2025, to enable instant, simultaneous settlement of cross-currency payments between the euro, Swedish krona, and Danish krone, with a future expansion to the Norwegian krone planned. This system leverages the Enhanced Linked Transaction (ELKT) model to ensure real-time payment and settlement across participating central bank systems, and is undergoing technical trials and regulatory updates to support its rollout, aiming to interlink with additional global payment systems over time. [Read more at the Riksbank]
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.
Digital Asset and a consortium of major financial firms executed a fully on-chain U.S. Treasury financing (repo) on the Canton Network, settling atomically and near-instantly via Tradeweb outside traditional market hours using the USDC stablecoin for cash and tokenized Treasuries as collateral, with underlying assets custodied at Depository Trust & Clearing Corporation (DTCC). Participants included Bank of America, Circle, Citadel Securities, Cumberland DRW, Hidden Road, Société Générale, Tradeweb, and Virtu Financial, demonstrating true 24/7 liquidity and eliminating the limitations of off-ledger cash and market-hour restrictions seen in legacy implementations– all of which is critical to creating a real, always-available, interoperable capital markets infrastructure. [Read more at Canton]
According to the Bank of Canada, in 2024, Canadians’ cash use remained stable at roughly one-fifth of transaction volume and about one-tenth of value, holding its place behind credit and debit at the point of sale; meanwhile, nominal cash holdings ticked up (with more $50/$100 notes on hand), and withdrawals rose across ABMs, branches, and cashback though still below pre‑2017 levels. Most people report good access to cash (ABMs and branches), strong note quality perceptions, and limited appetite to go fully cashless—nearly four in five have no plans to abandon cash, and even many “cashless” consumers still keep some on hand. Cash transactions skew toward lower‑value purchases (average around the mid‑$20s over the diary window), while contactless cards and rising mobile payments continue to capture higher shares of in‑person spending; merchant acceptance of cash remains high, and the overall post‑pandemic leveling suggests cash persists as a meaningful, resilient payment option despite ongoing growth in digital alternatives. [Read more at the Bank of Canada]
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.
The U.S. Bank Policy Institute (BPI), backed by several U.S. banking groups, implored Congress to close a loophole that could allow stablecoin holders to receive interest indirectly through affiliated exchanges, thereby evading the GENIUS Act’s ban on interest and yield. Because payment stablecoins neither fund loans like bank deposits nor operate as securities like money market funds, the BPI says they should not pay interest. They cite a Treasury estimate that up to $6.6 trillion of deposits could flow out of banks if stablecoins can offer yield, warning that such shifts would raise borrowing costs and reduce credit availability, especially during stress, unless the prohibition is extended to affiliates and distribution channels. [Read more at the BPI]
The Bank for International Settlements (BIS) published a Bulletin that proposes a practical AML/CFT framework for public blockchains that leverages transparent on-chain histories to compute “AML compliance scores” for crypto units and wallets, ranging from clean to tainted based on provenance, links to allow/deny lists, and risky patterns (e.g., mixers). Instead of relying on intermediaries as in traditional finance, authorities and off-ramps (fiat conversion points) would apply threshold-based acceptance rules to block or permit redemptions, with options spanning strict (only allow-listed/KYC’d flows) to lighter (exclude only deny-listed exposure), plus intermediate, tiered criteria like clean holding periods or limits by score. This approach aims to realign incentives—encouraging users, intermediaries, and stablecoin operators to avoid tainted flows—while enabling third-party compliance services, accommodating both UTXO- and account-based designs, and anticipating evasive tactics. It argues “same risk, same regulation” is insufficient for crypto’s unique structure, and that provenance-aware rules, coordinated internationally, can strengthen financial integrity and monetary sovereignty as crypto integrates with mainstream finance. [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.
