Digital Euro May Be Rolled Out in Mid-2029, ECB’s Cipollone Says (Bloomberg)
The digital euro could be launched by mid-2029, according to ECB Executive Board member Piero Cipollone, speaking at a Bloomberg Future of Finance event. A recent agreement among euro-area finance chiefs on customer holding limits has accelerated the project’s momentum, but the initiative’s progress now depends on the European Parliament passing required legislation. Cipollone suggests that the Parliament’s formal position may be ready by early May 2026, with broader agreement among EU member states likely by year-end. [Source: Bloomberg]
CFTC Launches Tokenized Collateral and Stablecoins Initiative (CFTC)
The U.S. Commodities Futures Trading Commission (CFTC) has launched an initiative to allow tokenized collateral—including stablecoins—to be used in U.S. derivatives markets, citing the need for modernization and greater market efficiency. Industry leaders from Circle, Coinbase, Ripple, Tether, and Crypto.com publicly support the move, emphasizing how regulated stablecoins could enhance liquidity, reduce risks, and strengthen U.S. global leadership in financial innovation. The CFTC is inviting stakeholders and the public to submit feedback by October 20, 2025, as it prepares to implement new pilot programs and regulatory updates in line with recommendations from the President’s Working Group and its own Global Markets Advisory Committee. [Source: CFTC]
Drivers of Digital Payment Adoption: Lessons from Brazil, Costa Rica, and Mexico (NBER)
The U.S. National Bureau of Economics and Research (NBER) published a paper that explores why digital person-to-person (P2P) payment platforms like Brazil’s Pix and Costa Rica’s Sinpe Móvil achieve broad, cash-like usage while Mexico’s CoDi lags. It finds that mass adoption depends on rapid spread from affluent early adopters to lower-income groups, which is enabled by low barriers to entry, strong network effects, policy support, universal connectivity, and public trust. For example, CoDi’s adoption plateaued at only 2–3% of adults, due to pre-existing low bank account ownership (~40%), lower mobile and internet penetration, and restrictive access. For example, opening a bank account in Mexico is more cumbersome than in Brazil because it typically involves heavier and stricter documentation requirements, in-person branch visits, and processes that are not fully digitized or simplified for unbanked or low-income populations. [Source: David Argente]
Stablecoins and the Future of Money: Economic Principles and Policy Implications (IMK)
The Institut für Makroökonomie und Konjunkturforschung (IMK) published a paper by Peter Bofinger that argues for the integration of national payment systems across European Union (EU) member states as a means of strengthening European payment sovereignty and resilience, particularly in the face of risks posed by foreign-currency stablecoins—most notably those denominated in USD. The rationale is that by unifying fragmented domestic payment infrastructures, the EU can achieve faster, cheaper, and more seamless cross-border transactions for both consumers and businesses, reducing dependence on non-EU payment schemes and lessening the appeal of private stablecoins for euro area payments. This integration would build on the existing Single Euro Payments Area (SEPA) and extend its ease and efficiency, allowing instant, interoperable euro payments at scale. [Source: IMK]
Upcoming Speaking Engagements:
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]
The Digital Euro Conference 2026 (Frankfurt, March 26) will explore the future of money with a focus on CBDCs, stablecoins, and commercial bank tokens. This hybrid event offers the perfect platform to understand the future of digital money! When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [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.
