Brazil’s Central Bank Reportedly Shuts Down Drex CBDC Platform (Valor)

Banco Central do Brasil (BCB) has reportedly shut down its Drex central bank digital currency (CBDC) project, due to high maintenance costs and unresolved privacy concerns in transaction processing. The next phase of the Drex project will take a technology-neutral approach, with ongoing studies into tokenization and settlement environments for central bank-issued currency, but privacy solutions remain a challenge. It has been a long while since the last official update from the BCB, but back in August 2025, it had reportedly signaled that it was dropping the blockchain-based design due to immature privacy solutions that failed to meet bank-grade confidentiality and verifiability standards, although at that time the project was still reportedly alive. What is not clear from these latest reports is whether the BCB is walking completely away from the CBDC project or they are just confirmations that the blockchain-based design is being dropped. Until the BCB speaks up for itself, we’ll just have to wait. [Source: Valor]

VISA Direct Stablecoin Payouts Pilot Speeds Up Access to Funds for Creators & Gig Workers (VISA)

VISA has launched a new pilot for VISA Direct that enables businesses and platforms to send payouts directly to recipients’ USD-backed stablecoin wallets, notably benefiting creators and gig workers with much faster access to their funds. The service funds payouts in fiat currency but recipients can choose to receive their funds in stablecoins like USDC, allowing for near-instant global money movement even in markets with currency volatility or limited banking infrastructure. Currently launching with select partners, Visa plans a wider rollout in 2026, emphasizing broader financial flexibility and support for the evolving creator and gig economy. [Source: VISA]

Fit of the Digital Euro in the Payment Ecosystem (ECB)

[October 30, 2025] The European Central Bank (ECB) published a report on the digital euro’s prospective business model. The aim will be to minimize transaction and implementation costs for payment service providers (PSPs) while unlocking revenue potential to offset new investments. The Eurosystem will cover all scheme and processing costs, ensuring that there are no scheme or processing fees—unlike card networks—so savings flow to PSPs, merchants, and ultimately consumers. Merchants should benefit from capped merchant service charges (MSC), with fees for digital euro acceptance expected to be notably lower than those for international card schemes and similar to or below domestic alternatives. However, PSPs question the model, preferring the ability to set market-based fees and compensation structures, and warn that a uniform cap across diverse markets could be problematic. All stakeholders agree on using standard, open infrastructure to reduce costs, and many see outsourcing (offering “digital euro as a service”) as a way for PSPs—especially smaller ones—to contain costs. Consumers are expected to access digital euro basic services free of charge. [Source: ECB]

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.