Kiffmeister’s #Fintech Daily Digest (20251030)

October 30, 2025October 30, 2025 ~ kiffmeister

Eurosystem Moving to Next Phase of Digital Euro Project (ECB)

The European Central Bank (ECB) announced the transition to the next phase of the digital euro project after successfully completing the preparation phase begun in November 2023. This advance responds to European leaders’ calls to accelerate digital euro progress, aiming to ensure technical readiness for possible issuance. If the necessary legislation is adopted in 2026, pilot activities could begin in 2027, with the Eurosystem ready for a potential first issuance in 2029. Projected overall development costs are estimated at €1.3 billion until the first issuance, with annual operating costs of about €320 million thereafter. [Source: ECB]

Bank Indonesia Governor Reveals Government Bond Tokenization Plans (CNBC)

Bank Indonesia (BI) Governor Perry Warjiyo reportedly announced plans to issue a national stablecoin backed by government bonds (Surat Berharga Negara or SBN). The digital central bank securities will be tokenized versions of government bonds built on a prospective wholesale digital rupiah central bank digital currency (CBDC) platform. He goes on to say that the tokenized bonds would represent “Indonesia’s national version of a stablecoin” but he might mean that in the broader sense of “stablecoin” rather than as a generally-accepted medium of exchange. My interpretation would be consistent with where the BI’s Project Garuda wholesale CBDC proof of concept (POC) left off, concluding that the BI will proceed with broader explorations of a securities ledger. [Source: CNBC]

The Rise of Stablecoins and Implications for Treasury Markets (Brookings)

The Brookings Institution published a working paper that examines how the rapid adoption of U.S. dollar-pegged stablecoins has begun to transform international finance and demand for U.S. Treasury securities. Stablecoins are favored in cross-border payments and remittance corridors, particularly in economies facing high inflation or weak local currencies, due to their lower costs, quicker settlements, and easy access. The authors show that stablecoin issuers now hold Treasury exposure approaching major foreign holders, and their continued growth could drive stablecoin-backed demand for Treasuries to trillions of dollars by 2030. While this diversification may benefit U.S. fiscal stability, it also introduces risks, such as regulatory arbitrage, concentration among few issuers, systemic vulnerabilities, and potential currency substitution in emerging markets. The authors emphasize the need for clear global oversight, regulatory coordination, and stress-testing frameworks for issuers, as well as monitoring the broader impacts on monetary sovereignty and financial stability. [Source: Brookings]

Upcoming Speaking Engagements:

The Cedi@60 Anniversary Currency Conference (Accra, Ghana, November 17-20) hosted by the Bank of Ghana, in partnership with Currency Research, will celebrate 60 years of the Ghanaian Cedi, bringing together leaders from across Africa and beyond to reflect on the currency’s legacy and chart its digital future. Learn about Ghana’s eCedi pilot and the future of sovereign digital currencies in Africa, and engage with innovators driving mobile money, QR code payments, and financial inclusion across the region. [Register here and get 15% off by using the Kiffmeister15 code!]

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! [Register here and get 20% off the regular ticket price by using the Kiffmeister20 code!]

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.

Kiffmeister’s #Fintech Daily Digest (20251029)

October 29, 2025 ~ kiffmeister

HKMA Completes Second Phase of e-HKD Pilot Programme (HKMA)

The Hong Kong Monetary Authority (HKMA) has completed the second and last phase of its e-HKD central bank digital currency (CBDC) pilot program. It evaluated the commercial viability and scalability of an e-HKD in various retail scenarios and compared it with tokenized deposits, structured around three themes: (i) settlement of tokenised assets, (ii) programmability, and (iii) offline payments. The results showed that an e-HKD can deliver benefits such as cost-efficient, programmable, and resilient transactions. One of the key takeaways was that, for retail end users, including merchants, consumers and individual investors, the difference between an e-HKD and tokenized deposits is not immediately clear, particularly in the context of routine payment transactions. Hence, the HKMA concluded that the immediate priority for the e-HKD lies in wholesale payments, and going forward it will prioritize the development of the tokenization ecosystem and cross-border payments. [Source: HKMA]

eCurrency to Pilot Central Bank Digital Currency Solution in Madagascar (eCurrency)

eCurrency Mint is set to begin an eAriary CBDC pilot in Madagascar. The project aims to introduce a digital version of the Ariary currency, leveraging eCurrency’s DSC3 technology to enable secure and efficient transactions. The solution is designed to integrate seamlessly into Madagascar’s existing financial ecosystem, and will be piloted in partnership with PayLogic SA to align with the “specific requirements of the Banky Foiben’i Madagasikara”. However, it is unclear to what extent the central bank itself is involved. [Source: PR Newswire]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20251028)

October 28, 2025October 28, 2025 ~ kiffmeister

Citi and Coinbase Join Forces to Boost Digital Asset Payment Capabilities for Global Clients (Citi)

Citi and Coinbase will collaborate to enhance digital asset payment capabilities for Citi’s institutional global clients, starting with a focus on streamlining fiat pay-ins and pay-outs, and optimizing payment orchestration as a bridge between traditional finance and digital asset ecosystems. The initiative aims to simplify and expand access to 24/7 digital asset payments, with plans to explore new fiat-to-stablecoin payout methods. [Source: Citi]

OpenAI and PayPal Team Up to Power Instant Checkout and Agentic Commerce in ChatGPT (PayPal)

OpenAI and PayPal will collaborate to implement the Agentic Commerce Protocol (ACP) to enable direct payments and commerce within ChatGPT. This will allow ChatGPT users to make instant purchases from PayPal’s global network of merchants, using PayPal’s wallet, payment options, and protections. Merchants who use PayPal will be able to make their product catalogs available on ChatGPT through PayPal’s ACP server, eliminating the need for individual integrations. The arrangement also extends PayPal’s use of OpenAI’s technology across its business operations, including employee access to ChatGPT Enterprise and integration with development tools. The rollout of these integrated commerce and payment features is scheduled to begin in 2026. [Source: PayPal]

Upcoming Speaking Engagements:

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]

Kiffmeister’s #Fintech Daily Digest (20251027)

October 27, 2025October 27, 2025 ~ kiffmeister

Kyrgyzstan launches national stablecoin in partnership with Binance (Reuters)

Kyrgyzstan has reportedly launched its first national stablecoin, KGST, pegged 1:1 to its national currency, the som, and built on Binance’s BNB Chain. The launch was attended by Binance co-founder Changpeng “CZ” Zhao, who also serves as a strategic advisor to Kyrgyzstan’s crypto committee. Alongside the stablecoin, Kyrgyzstan is piloting a central bank digital currency (CBDC) called the digital som. [Source: X]

Can CBDCs Improve the Delivery of Social Safety Nets? (IMF)

The IMF published a paper that evaluates whether retail central bank digital currencies (CBDCs) can improve the effectiveness and efficiency of delivering social safety nets (SSNs) to vulnerable populations. The authors find that while CBDCs used merely as payment delivery mechanisms offer limited advantages over existing fast payment systems, their real potential lies in serving as payment administration platforms. Features such as programmability, peer-to-peer transfers, decentralized ledger access, and direct transaction monitoring could enable SSN agencies to automate transfers, operate independently from private financial institutions, and better track payments, leading to more streamlined and transparent benefit delivery. However, these benefits come with significant challenges: privacy protection, compliance and customer due diligence requirements, technological and infrastructure risks, and the need for thoughtful integration with established systems. The paper concludes that unlocking CBDCs’ full potential for social safety nets requires close collaboration between digital currency developers and SSN administrators, with careful consideration of comparative advantages and risks. [Source: IMF]

Early Warning Expands Zelle Network with Stablecoin Initiative (EWS)

Early Warning Services (EWS), the network operator of the U.S. Zelle fast payment system, announced a new stablecoin-based initiative to enable Zelle to deliver faster and more reliable cross-border money movement. The Zelle service enables individuals to electronically transfer money from their bank account to another registered user’s bank account using a mobile device or the website of a participating banking institution. Transfers between bank accounts of registered users are typically completed within minutes and without fees. [Source: EWS]

Western Union to Pilot Stablecoin-Powered Transfers (Coin Telegraph)

Western Union is piloting a stablecoin-based settlement system to modernize its remittance operations, aiming to reduce reliance on traditional banking systems and improve efficiency for its 150 million customers. CEO Devin McGranahan highlighted the potential of blockchain technology to shorten settlement times and enhance capital efficiency, especially for users in high-inflation countries. [Source: Coin Telegraph]

Upcoming Speaking Engagements:

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]

Kiffmeister’s #Fintech Daily Digest (20251024)

October 24, 2025October 24, 2025 ~ kiffmeister

Design Note – Alias Service (BOE)

The Bank of England (BOE) published a digital pound design note that explores how alternative aliases, such as mobile numbers, email addresses, or randomly generated codes, could improve convenience, privacy, and interoperability in retail payments. The note highlights that, when used as alternative identifiers for digital money accounts, aliases can improve the convenience, privacy and security of retail payments, while also supporting interoperability between different payment schemes and jurisdictions. The BOE proposes that a digital pound alias service should be integrated into its infrastructure, ensuring neutral mapping of aliases to user accounts irrespective of provider, but with careful safeguards for privacy. The preferred model would see the BOE host or orchestrate the service while potentially delegating data management to intermediaries (payment interface providers), balancing system control with innovation and privacy. [Source: BOE]

Bank of England Launches Synchronization Lab (BOE)

The BOE launched its Synchronization Lab, a non-live environment aimed at helping industry participants demonstrate and test synchronization use cases for the renewed real-time gross settlement (RTGS) service (RT2). The Lab enables potential synchronization operators, such as RTGS account holders, asset ledger operators, and end-customers, to experiment with and validate business models, technical designs, and settlement processes for synchronized (atomic) transactions in central bank money. Running for six months starting in spring 2026, it will provide a platform for hands-on prototyping and evaluation of different synchronization models, allowing participants to build, integrate, and demonstrate their solutions while the Bank gathers insights to refine the RTGS synchronization capability for future production. The initiative is complementary to the Bank’s other innovation programs but does not involve real-money payments or constitute a regulatory sandbox. [Source: BOE]

The BIS Financial Stability Institute (FSI) published a brief that analyzes regulatory approaches for stablecoin-related yield products, where crypto-asset service providers (CASPs) offer returns to holders of payment stablecoins, despite these tokens not being designed to generate on-chain yields. CASPs create returns through mechanisms such as lending, margin pools, DeFi protocols, or loyalty programs, which blur payment-investment boundaries and expose users to consumer protection risks, absent deposit insurance or strict oversight. While all surveyed jurisdictions prohibit issuers from directly remunerating stablecoin balances, regulation of CASP-provided yields varies: some (EU, Hong Kong) ban yield products entirely, some (Singapore) restrict them for retail users but allow for professionals, and others (US) currently lack explicit prohibitions. The paper highlights potential risks of these products, including consumer protection holes, financial stability vulnerabilities, and operational conflicts of interest. Addressing these risks may require a regulatory framework that cover CASPs’ stablecoin-related activities, close regulatory gaps and safeguard end users’ protection and financial stability. [Source: BIS FSI]

Vantage Bank and Custodia Launch Tokenized Deposit Platform for U.S. Banks (Custodia)

Vantage Bank and Custodia have launched a platform enabling U.S. community and regional banks to offer tokenized deposits and stablecoins, integrating these digital assets directly into online banking environments. This interoperable solution allows member banks to control their own wallets for tokenized deposits and stablecoins, shifting tokens seamlessly between regulatory categories while maintaining oversight and deposit stability. Early use cases include instant cross-border payments and flexible payroll options. The initiative distinguishes itself by addressing interoperability—creating a single token usable as both a tokenized deposit and a stablecoin—and offers open access to institutions of all sizes. Custodia’s compliance credentials ensure regulatory alignment, and the system is designed to preserve deposit stability within banks, and unify tokenized deposits and Avit stablecoins under a shared smart contract framework. Only traditional and tokenized deposits are FDIC insured; stablecoins remain uninsured and subject to regulatory risks. [Source: Custodia Bank]

Upcoming Speaking Engagements:

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]

Kiffmeister’s #Fintech Daily Digest (20251022)

October 23, 2025October 23, 2025 ~ kiffmeister

Design Note – Offline Payments (Bank of England)

The Bank of England (BOE) published a note that outlines its current thinking on offline payments for a potential digital pound, distinguishing between “deferred offline payments” (similar to card transactions where payment is queued until a party reconnects online) and “device offline payments” (where value moves directly between devices out of online system view, like cash transfers). The note emphasizes the established use cases for deferred offline payments (e.g., transit, vending machines) and acknowledges future opportunities and resilience benefits for device offline payments, though risks and technical maturity mean such device-to-device features would not be available at launch. [Source: BOE]

India Introduces Digital Rupee for Easy Offline Payments (The CSR Journal)

The Reserve Bank of India (RBI) reportedly launched the offline digital rupee CBDC during the Global Fintech Fest 2025 in Mumbai. It would offer direct wallet-to-wallet transfers, benefiting remote areas and those without banking access. Users will be able to download wallets from 15 major banks. The wallets will offer secure recovery options in case of lost devices, alongside transaction limits set at Rs 50,000 per day or 20 transactions, with wallet balances capped at Rs 1 lakh. Key features will include programmable money (restricting usage by location, time, or purpose), and support for government welfare and corporate payments. [Source: CSR Journal]

Coincidentally, the RBI officially launched its “HaRBInger 2025 – Innovation for Transformation” hackathon, which features as one of the three focus areas, offline central bank digital currency (CBDC). Participants are invited to design a secure, user-friendly, tamper-resistant, and scalable solution for enabling offline digital rupee transactions. The solution should allow consecutive offline payments without real-time internet or telecom connectivity and ensuring double-spend prevention. It should work on low-cost devices and be agnostic across devices and communication protocols, and work on different form factors. [Source: RBI]

Bank-Issued Stablecoins in Europe Under MiCA Regulation (Blockstories)

Blockstories’s Louis Tellier highlighted three key insights about the stablecoin business in Europe under MiCA regulation. First, banks issuing stablecoins are not required to maintain segregated reserves, allowing them to integrate stablecoin assets within their balance sheets and partially lend them under a fractional-reserve model, which provides banks a unique competitive edge over electronic money institutions (EMIs) like Circle that must maintain fully backed, segregated reserves. Second, despite MiCA’s prohibition on yield distribution for stablecoins, some platforms have enabled yield via DeFi integrations through non-custodial wallets—taking advantage of a regulatory “DeFi exemption” that falls outside MiCA’s scope; recent examples include Bitpanda and Deblock using protocols like Morpho. Lastly, deploying bank-issued stablecoins in DeFi is now feasible, with regulations clarifying that issuers need not know the identity of every holder at all times, as long as compliance features such as blacklists and token freezing are embedded in smart contracts, demonstrated by Société Générale and ODDO BHF. [Source: LinkedIn]

Nigeria’s Ministry of Finance and Central Bank to Study Stablecoin Adoption (Business Day Nigeria)

Nigeria’s Ministry of Finance and central bank have reportedly established a working group to examine the adoption of stablecoins as part of its financial sector innovation agenda. They aim to explore the broader implications of integrating stablecoins, balancing support for technological innovation with the need to mitigate associated risks. This is all against the backdrop of the underwhelming response to the e-Naira CBDC. [Source: Business Day Nigeria]

Bank Negara Malaysia to Complete Domestic Wholesale CBDC Proof-of-Concept by End-2025 (MOF)

Bank Negara Malaysia (BNM) is reportedly expected to complete its proof-of-concept for a domestic wholesale central bank digital currency (CBDC) by the end of 2025. This initiative seeks to evaluate the potential use of CBDC within Malaysia’s wholesale payment system, especially focusing on the real-time electronic transfer of funds and securities system (Rentas), and to improve the understanding of distributed ledger technology (DLT) and CBDC for both BNM and the broader financial sector. Additionally, BNM is actively participating in several Bank for International Settlements Innovation Hub-led projects—such as Project Dunbar, Project Mandala, and Project Rialto—which explore how multi-CBDC arrangements can make cross-border wholesale payments more efficient, faster, and secure. [Source: The Edge Malaysia]

Ethiopia’s Parliament Passes CBDC-Enabling Legislation (NBE)

[February 4, 2025] The Ethiopian Parliament passed into law National Bank of Ethiopia (NBE) Proclamation No. 1359/2025, establishing a legal framework for the introduction of a digital birr central bank digital currency (CBDC). It permits the central bank’s Board to issue a Directive to issue CBDC as legal tender of the country. [Source: NBE]

Upcoming Speaking Engagements:

Stablecoin C-Suite Summit (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]

Kiffmeister’s #Fintech Daily Digest (20251021)

October 21, 2025October 21, 2025 ~ kiffmeister

Oddo BHF Launches its First Euro-Backed Stablecoin (Blockstories)

Oddo Berliner Handels- und Frankfurter (Oddo BHF) became one of the first European banks to launch a stablecoin with the launch of its EUROD. According to Blockstories, approval was given by Autorité de Contrôle Prudentiel et de Résolution (ACPR), the French banking supervisor. This also makes Oddo BHF the first European bank not to set up a segregated reserve for a bank-issued stablecoin, which means that the stablecoin’s reserves appear on Oddo BHF’s balance sheet and can be integrated into the bank’s fractional-reserve system. Currently only Japan’s, Singapore’s, and the European Union’s stablecoin regulations allow credit institutions to issue stablecoins directly backed by their balance sheets. [Source: Oddo BHF and Blockstories]

Embracing New Technologies and Players in Payments (FRB)

U.S. Federal Reserve Board (FRB) Governor Waller introduced the concept of a “skinny” master account, or payment account, at the FRB’s Payments Innovation Conference. The proposal envisions making basic Federal Reserve (Fed) payment services available to legally eligible institutions focused on payments innovation, especially those that do not require full access to the traditional master account’s suite of services. The skinny account would provide access to Fed payment rails but would come with key restrictions: it would not pay interest, could have balance caps, would lack daylight overdraft privileges, and would not allow discount window borrowing or access to all Fed services. The goal is to streamline account approval for lower-risk firms, helping payment innovators move faster while maintaining the safety and stability of Fed operations. This is presented as a prototype idea, and staff will solicit stakeholder feedback going forward. [Source: FRB]

GSMA and Leading African Operators Propose Minimum Requirements for Affordable 4G Smartphones (GSMA)

The Global System for Mobile Communications Association (GSMA) and six leading African mobile operators have announced a new initiative to establish minimum requirements for affordable entry-level 4G smartphones, aimed at accelerating digital inclusion across Africa. The proposal is part of the GSMA Handset Affordability Coalition and addresses smartphone affordability as the primary barrier to mobile internet adoption in Sub-Saharan Africa, where more than 3 billion people globally live within mobile broadband coverage but don’t use the internet. According to GSMA Intelligence, a $40 smartphone could enable an additional 20 million people in Sub-Saharan Africa to access mobile internet, while a $30 device could connect up to 50 million people. The initiative proposes baseline specifications for memory, RAM, camera quality, display size, battery performance, and other features to ensure viable 4G smartphone experiences at reduced costs. The GSMA will engage with manufacturers and technology companies to gain support for these affordable devices, while simultaneously calling on African governments to remove taxes on entry-level smartphones priced below $100, as VAT and import duties can increase device prices by more than 30% in some countries. [Source: GSMA]

Upcoming Speaking Engagements:

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]

Kiffmeister’s #Fintech Daily Digest (20251020)

October 20, 2025October 20, 2025 ~ kiffmeister

Assessing the Implementation of IOSCO Recommendations for Crypto and Digital Asset Markets (IOSCO)

IOSCO published a review that assesses the progress made by 20 jurisdictions in implementing key policy recommendations for the regulation and oversight of crypto and digital asset markets, with a focus on investor protection and market integrity. IOSCO finds significant steps toward developing regulatory frameworks, noting that most jurisdictions have either adapted existing laws or introduced new rules for crypto-asset service providers (CASPs), especially around governance, disclosure of conflicts, fraud prevention, custody of assets, and cross-border cooperation. While there has been encouraging momentum, notable challenges persist: regulatory approaches and coverage vary widely, particularly for new business models (like staking and lending), and cross-border cooperation is developing but remains limited. The report emphasizes the need for ongoing reforms, proactive monitoring of emerging risks, and enhancements to information-sharing mechanisms to address the sector’s fast evolution and support global regulatory consistency. IOSCO calls for jurisdictions to fully implement all 18 recommendations, highlighting the importance of robust frameworks as crypto and stablecoin activity grows, and urges international collaboration to mitigate risks, regulatory arbitrage, and market instability. [Source: IOSCO]

Upcoming Speaking Engagements:

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]

Kiffmeister’s #Fintech Daily Digest (20251016)

October 16, 2025April 6, 2026 ~ kiffmeister

The CBDCTracker.org database has been updated to include new developments in September 2025, as it continues to set the standard as the central point of information on central bank digital currency (CBDC) projects. Jonas Gross has posted a summary of those new developments on LinkedIn and got to CBDCTracker.org to see all of the data, both current and historical.

Bolivian Central Bank Publishes CBDC Consultative Paper (BCB)

Banco Central de Bolivia (BCB) published an initial assessment of the feasibility of implementing a central bank digital currency (CBDC) in Bolivia. The consultative document examines the progress made in modernizing the national payment system and analyzes how a digital boliviano could be integrated as a complement to existing infrastructure, strengthening monetary sovereignty and financial stability. It finds that considering the currently high level of development of the retail payment system in Bolivia, the additional benefits that a retail CBDC could offer could prove limited in the short term. In this context, the impact of its implementation must be carefully evaluated, especially in relation to existing capacities. However, a wholesale CBDC represents a strategic opportunity to strengthen the operational, technological, and regulatory pillars of the national financial system. The BCB emphasizes that the publication of this report does not imply a definitive decision on the issuance of a digital boliviano. [Source: BCB]

Bank of England on Proposed Stablecoin Regulatory Approach (BOE)

Bank of England (BOE) Deputy Governor Sarah Breeden spoke at the Washington DC Fintech Week highlighting how the central bank is advancing regulations for sterling-denominated stablecoins. The BOE is aiming for rules that ensure stablecoins are as robust as commercial bank money, maintaining the “singleness of money” crucial for monetary and financial stability. The approach includes granting systemic stablecoin issuers BOE accounts for a portion of their backing assets, and considering liquidity facilities for redemption support. Temporary holding limits on stablecoins are proposed to ensure financial stability during the transition, with adjustments as risks subside. The Bank distinguishes between stablecoins used in general payments and those settling unbacked crypto-asset trades, focusing regulatory attention only on the former, and plans to finalize the regime next year. [Source: BOE]

Thematic Review on FSB Global Regulatory Framework for Crypto-Asset Activities (FSB)

The Financial Stability Board (FSB) published an assessment of progress by member and select non-member jurisdictions in implementing its global regulatory framework for crypto-asset activities, consisting of high-level recommendations for the oversight of both general crypto-assets and global stablecoins (GSCs). The report finds that while many jurisdictions have advanced regulatory frameworks for crypto-asset activities, significant gaps and inconsistencies remain, particularly regarding stablecoin arrangements, with few countries having fully implemented tailored regimes aligned to FSB standards. These disparities pose risks of regulatory arbitrage and complicate oversight of the rapidly evolving, cross-border crypto market. Authorities still face substantial challenges in supervising crypto-asset service providers (CASPs), ensuring robust data reporting, and achieving effective cross-border coordination. [Source: FSB]

Upcoming Speaking Engagements:

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]

Kiffmeister’s #Fintech Daily Digest (20251015)

October 15, 2025October 15, 2025 ~ kiffmeister

Kazakhstan Digital Tenge CBDC Project Update (LinkedIn)

Binur Zhalenov, Chief Digital Officer of the National Bank of Kazakhstan provided an update on the central bank’s digital tenge R3 Corda-based digital currency (CBDC) pilot project. The project centers on programmable public finance—enabling conditional, automated fund disbursement in government spending. In this model, allocated funds (such as those for infrastructure contracts) proceed through the payment chain only when predefined criteria are satisfied: supplier licensing, price compliance, and project plan alignment. Funds that fail verification are automatically blocked, while those reaching final recipients convert to unrestricted currency. The framework extends to social welfare payments, where beneficiary verification triggers direct payment to service providers, and to transaction types such as vehicle purchases. The team currently collaborates with the Ministry of Finance and Treasury on approximately 100 implementation projects applying these conditional “purpose-bound” payment mechanisms. [Source: LinkedIn]

Reserve Bank of India Announces Unified Markets Interface (RBI)

Reserve Bank of India (RBI) Governor Shri Sanjay Malhotra announced that the central bank has conceptualised the Unified Markets Interface (UMI), as a next-generation financial market infrastructure. UMI will have the capability to tokenize financial assets and settlements using wholesale central bank’s digital currency (CBDC). He said that early results from the inaugural pilot on the issuance of certificates of deposit in improving market efficiency are encouraging. [Source: RBI]

A Money View of Offline Payment Functionality (LinkedIn)

G+D’s Lars Hupel posted a paper that explores the design and financial implications of offline payment functionality in the context of CBDCs and other payment systems, such as instant payment systems (IPS). The analysis is structured around three models: the classic CBDC (single central bank issuer), a multi-issuer system (commercial banks issue their own offline “digital cash”), and a single-issuer model operated by a private or non-central bank entity. The core argument is that while offline payments are desirable—and well understood for central bank-issued digital cash—adding offline capability to systems with multiple issuers introduces financial risks and complexities, primarily concerning the fungibility of liabilities and interbank settlement. Drawing on historical examples like Mondex, the paper suggests a single-issuer model is most practical, offering the advantages of offline payments without overburdening central banks or complicating risk management. The analysis is informed by the “money view,” which emphasizes the hierarchy of money and careful consideration of balance sheet mechanics for each model. [Source: LinkedIn]

Upcoming Speaking Engagements:

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]