Bolivia Taps El Salvador for Crypto Regulation Guidance (Coingeek)
The Central Bank of Bolivia (BCB) signed a memorandum of understanding with El Salvador’s National Commission of Digital Assets (CNAD) to promote mutual cooperation, information exchange, and technical-regulatory knowledge on digital assets, including blockchain analytics and risk analysis. The agreement, signed by CNAD President Juan Carlos Reyes García and BCB Acting President Edwin Rojas Ulo, aims to leverage El Salvador’s experience as a crypto-asset regulatory pioneer to help Bolivia develop secure, regulated ecosystems that attract investment and support families and small entrepreneurs; it takes effect immediately and indefinitely. [Read more at the BCB]
Ethena USDe Jumps to 3rd in Stablecoin Market Cap Rankings (AInvest)
Ethena’s USDe stablecoin has experienced remarkable growth in 2025, with its market capitalization surging to over $8.4 billion, making it the third-largest stablecoin behind USDT and USDC. USDe is a “synthetic dollar” backed by crypto-assets, and liquid staking tokens rather than currency-matched high-quality liquid assets (HQLA). When users mint USDe by depositing crypto-asset collateral, Ethena simultaneously opens an equivalent short position in perpetual futures markets, creating a delta-neutral hedge that offsets price movements in the underlying assets. The protocol generates yield through funding rates from perpetual swap positions and staking rewards on liquid ETH, which is distributed to holders of sUSDe (staked USDe). However, this mechanism carries risks, particularly during periods of negative funding rates in bear markets, which could erode the protocol’s reserves and threaten the peg stability. [Read more at AInvest]
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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.
