Ugandan Digital Shilling Stablecoin Launched (GSN and Diacente)

Global Settlement Network (GSN) and Diacente Group have launched a stablecoin backed by Ugandan government bonds deployed on GSN’s permissioned blockchain. This digital shilling will incorporate full compliance with financial integrity (AML/CFT/KYC) regulations, and will be accessible by both smartphone and USSD, even to those without bank accounts. [Source: GlobeNewswire] It is being billed as a central bank digital currency (CBDC) but there is no mention of Bank of Uganda (BOU) involvement, so at best it might be a central bank issued stablecoin. I’ve checked on the BOU website and there is no mention of this initiative. In September 2024, the BOU published a consultative paper setting out its CBDC design thinking, and at a BOU workshop in March 2025, BOU official Peter Kagumya said the central bank will continue with a “phased approach for CBDC implementation in Uganda.”

Predicting the Payment Preference for CBDC: A Discrete Choice Experiment (BIS)

The Bank for International Settlements (BIS) published a paper that examines consumer preferences for central bank digital currency (CBDC) as a payment method through a discrete choice experiment conducted with over 3,500 participants in South Korea. The authors varied nine payment attributes—including issuer, form, privacy, acceptance rates, loss risk, discounts, transaction speed, settlement timing, and fees—to estimate preferences that could predict CBDC adoption. Their findings indicate that monetary incentives (“cash” backs) and disincentives (monthly fees) exert the strongest influence on payment method selection. For example, setting CBDC cash-back rates equal to credit card reward rates, raises CBDC adoption from 19% (with no CBDC cash back or fees) to 27%. Contrariwise, when credit card fees are eliminated (and mobile payments money payment users get a 3% reward), CBDC adoption drops from the 19% to 17.9%, suggesting CBDC adoption is more sensitive to its own reward structure than to competitive adjustments by private payment providers. Non-monetary attributes, particularly the form of issuance (with smartphone apps valued substantially more than banknotes), also significantly affect choice. [Source: BIS]

How Will Stablecoins Integrate with the Financial System (CIGI)

The Centre for International Governance Innovation (CIGI) published a paper by Christian Catalini on ho stablecoins might integrate with the financial system. In the most likely scenario—a reformed Bretton Woods framework—he sees fully reserved, well-regulated stablecoins becoming core settlement infrastructure, connecting disparate payment systems and streamlining cross-border transactions for banks, fintechs, and merchants. If the world shifts toward a multipolar arrangement, stablecoins might be expected to thrive within Western financial spheres, driving programmable payments and innovation, while central bank digital currencies (CBDCs) dominate in other blocs, with bitcoin serving as a neutral bridge. In more fragmented or authoritarian scenarios, stablecoins could be relegated to niche roles or co-opted by states for surveillance and control, with CBDCs or state-aligned stablecoins prevailing in domestic flows and bitcoin acting as a hedge against capital restrictions. Ultimately, Catalini foresees an interoperable, layered regime where stablecoins link platform economies and global commerce, CBDCs address domestic policy needs, and permissionless digital assets like bitcoin provide an escape valve, with speed and programmability determining which form will set the standard for future monetary integration.​ [Source: CIGI]

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]

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.