Bank of Botswana Explores Central Bank Digital Currency (BoB)
[July 10, 2025] The Bank of Botswana has initiated a central bank digital currency (CBDC) exploration project under the Digital BoB 2024 strategy, conducting research, training, and benchmarking efforts, including learning from the Central Bank of the Bahamas. A multidisciplinary CBDC Working Group has been established in the Bank to assess feasibility, infrastructure, legal frameworks, and the potential impact of a CBDC before making an adoption decision. The BoB had reportedly started exploring CBDC in June 22 but that was never officially conformed.
[Read more in the BoB 2024 Annual Report]
Central Bank Digital Currency and Banking Choices (SSRN)
A trio of Bank of Canada economists posted a paper on SSRN that analyzes how the introduction of a central bank digital currency (CBDC) could impact traditional bank deposits by developing a micro-founded model based on Canadian household data. The study finds that a non-interest-bearing CBDC without complementary financial products or an extensive physical service network would only minimally draw funds away from bank deposits (about 1% reduction), but expanding the CBDC’s physical presence (e.g., through Canada Post offices) could crowd out up to 7% of deposits, and only a very extensive network would reach around 12%. Placing holding limits on CBDC accounts (e.g., C$ 25,000 CAD) can significantly reduce this crowding-out effect while affecting the welfare of only a small fraction of households. The paper highlights that bank deposit choices are strongly influenced by complementary services (like mortgages and credit cards) and convenient access to branches. [Read more at SSRN]
Serbian Central Bank Law Amended to Allow Digital Dinar Issuance (NBS)
[March 6, 2025] Article 53 of Serbia’s Law on the National Bank of Serbia (NBS) was amended to give the central bank the right to issue the dinar in digital form (digital dinar). However, it’s not entirely clear when the amendment was made, except that it was likely in either 2018 (RS Official Gazette, No. 44/2018 published on June 9, 2018) or 2025 (No. 19/2025 published on March 6, 2025). Those are the only two amendments to the Law that make sense from a review of the current consolidated version of the Law, because the next previous amendment (No. 40/2015) was published in 2015 which seems too early in the history of central bank digital currency (CBDC) to be plausible. Even 2018 seems to be on the verge of implausibility, so I’m guessing that the amendment was published on March 6, 2025. [Read more at the NBS]
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.
