Retail CBDCs In Practice: The Experience of the Sand Dollar, E-CNY and JAM-DEX (SSRN)

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]

Technical Examination of Non-Ledger-Based Payment Systems (BOJ)

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.