Custodia Suffers Another Court Rejection in Fed Master Account Pursuit (CoinDesk)

Wyoming-based crypto-focused Custodia Bank suffered another legal setback in its multi-year campaign to secure a Federal Reserve master account, which would provide direct access to the U.S. central bank’s payment system. The 10th Circuit Court of Appeals affirmed a lower court’s decision, ruling that the Fed possesses the discretion to deny master account access to eligible entities, contrary to Custodia’s argument that the law requires approval for all qualifying institutions. Custodia’s claims that the Federal Reserve Bank of Kansas City coordinated improperly with the Board of Governors and the Biden administration were also rejected. While the ruling leaves open the possibility of Custodia petitioning for a rehearing, no clear path forward exists, though Fed Governor Chris Waller recently mentioned potential for a limited-access “skinny master account” for crypto firms to address systemic risk concerns. [Source: CoinDesk]

The Past and Future of Money: New Technologies and Economic Risks (G30)

In early October, the Group of Thirty (G30) published a report that explores how rapid technological innovation is transforming money and payment systems while exposing new risks to monetary stability. It emphasizes the enduring importance of trust, singleness, and stability in the monetary system, particularly through the two-tier structure where central bank and commercial bank money remain interchangeable at par—an achievement of modern regulation and oversight. Drawing on historical lessons from commodity money and banking eras, the report argues that while new technologies like cryptocurrencies and stablecoins promise efficiency and programmability, they also risk undermining monetary singleness, facilitating illicit finance, and evading regulation if not carefully managed. The working group recommends policymakers accelerate work on central bank digital currencies (CBDCs), encourage bank sector innovations such as tokenized deposits within a robust regulatory perimeter, and urgently develop strong regulatory frameworks for stablecoins to promote payment competition without destabilizing the system. [Source: G30]​

I’ve been reporting a lot of updates on digital euro legislative process, but here are a few I missed:

On October 28, 2025, Fernando Navarrete, the rapporteur responsible for shepherding the digital euro legislation through the European Parliament, published his draft report for the Single Currency Package, which includes the Establishment of the Digital Euro Regulation. The package included legislative proposals for the establishment of the digital euro, legal tender status, and the provisions for payment service providers (PSPs) in non-euro member states. [Source: European Parliament]

At its October 23, 2025 Summit, the European Council called for the swift completion of digital euro legislative work and the acceleration of other preparatory steps. The statement noted that “the digital euro offers a strategic opportunity for supporting a competitive and resilient European payment system, contributing to Europe’s strategic autonomy and economic security, and strengthening the international role of the euro”. The European Council is the top political body of the European Union (EU), composed of the heads of state or government of all EU member countries, the European Council President, and the European Commission President. [Source: European Council]

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.