Operation Choke Point 2.0: Biden’s Debanking of Digital Assets (U.S. HCOFS)
The U.S. House Committee on Financial Services published an investigative report on “Operation Choke Point 2.0″—a coordinated effort by Biden Administration regulators to deny banking services to digital asset businesses and individuals. Through over 20 letters, thousands of documents, and two hearings, the Committee found that federal agencies (the Federal Reserve, FDIC, OCC, and SEC) used informal guidance, “pause” letters, non-objection requirements, and enforcement actions to pressure banks into cutting off crypto firms, rather than establishing clear regulations. This approach resulted in at least 30 entities being debanked, stifled American innovation, and drove businesses overseas. [Source: U.S. HCOFS]
Rwanda: Digital Currency POC Set for Next Year (NBR)
The National Bank of Rwanda (NBR) is planning to continue its e-FRW central bank digital currency (CBDC) proof-of-concept work in 2026. It will test technical feasibility, evaluate payment system integration, and develop recommendations for the legal framework prior to the overall technical design phase. These tests are being conducted in partnership with selected financial service providers, and the results will determine NBR’s next steps in the CBDC project. In all phases, consultation with the private sector and policy makers has been, and will be, emphasized. [Source: NBR]
Project Meridian Securities (BOE)
The Bank of England (BOE) published a summary of the findings of the Project Meridian Securities experiment that explored how synchronization can bridge traditional real-time gross settlement (RTGS) systems with tokenized securities platforms using distributed ledger technology (DLT). The project successfully demonstrated that synchronization enables atomic settlement in central bank money for tokenized securities transactions, allowing programmable features like automated repos and cross-platform liquidity management without requiring full infrastructure replacement. Key findings show that smart contracts can automate settlement workflows while maintaining the trust and safety of central bank money, supporting improved liquidity management and interoperability across diverse platforms. The experiments revealed that synchronization can extend programmability to traditional infrastructures cost-effectively, though questions remain about optimal architecture, scalability, and whether independent synchronization operators are needed in multi-platform environments. [Source: BOE]
How New Regulations Could Potentially Impact the Future of Stablecoins (VISA)
The VISA Economic Empowerment Institute published a report by Zeke Copic on how new stablecoin regulations across the US, EU, UAE, and Hong Kong are shaping the industry’s future. While all jurisdictions require 1:1 backing with high-quality liquid assets and prohibit interest payments to holders, the specific requirements vary—with the US GENIUS Act being more flexible than Europe’s MiCA regulation, which mandates 30-60% of reserves in bank deposits. Stablecoin issuers like Circle currently generate 95-99% of revenue from interest on reserve assets (primarily Treasury bills and reverse repos), making them highly vulnerable to interest rate fluctuations and counterparty risks, as demonstrated during the Silicon Valley Bank collapse. Although declining interest rates may reduce reserve income, projected growth in stablecoin supply (potentially reaching $1.6-3.7 trillion by 2030) could offset this impact, though issuers may need to develop alternative fee-based revenue streams to maintain viable business models under the new regulatory frameworks. [Source: VISA]
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! [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.
