Kiffmeister’s #Fintech Daily Digest (20260131)

January 31, 2026February 1, 2026 ~ kiffmeister

In today’s post I’m doing some backfilling of my central bank digital currency (CBDC) database with some recently discovered projects and project updates, so here it goes!

Central Bank of the Barbados was Researching CBDC in 2020 (CBB)

[July 1, 2020] The Central Bank of the Barbados (CBB) hosted a seminar of central bank digital currency (CBDC) at which Governor Cleviston Hayne revealed that the CBB the CBB was researching CBDCs. In attendance were representatives from the Bahamas, Canada and the Eastern Caribbean Central Bank (ECCB). However, there has been no public follow-up on the central bank on the topic. [Source: CBB]

Central Bank of Uzbekistan Explores CBDC (Business & Finance Consulting)

[November 15, 2021] Speaking at the 2nd international PLUS forum (“FinTech without Borders: Digital Asia), Shukhrat Fayzullaev, deputy director of the Payment Systems Department of the Central Bank of Uzbekistan (CBU), reportedly spoke about the central bank’s CBDC pre-project study. The purpose of this study was to: (1) analyze the prerequisites and economic efficiencies of introducing a CBDC, (2) examine the experience of other countries that have introduced or are introducing CBDCs and (3) assess the technical, human and financial resources that will be required to develop a CBDC. [Source: Business & Finance Consulting]

Digital Currencies Impact on Financial Stability and Financial Cycle (Bank of Albania)

[February 11, 2022] The Bank of Albania published a paper that examines the impact on financial stability and financial cycles of crypto-assets, stablecoins, and CBDCs. Since then, it seems the Bank of Albania hasn’t done any more work on the CBDC topic. [Source: Bank of Albania]

Bank of Mauritius Progresses its CBDC POC Work (BoM)

[January 10, 2024] The Bank of Mauritius (BoM) has progressed on its research for the potential implementation of a digital rupee retail CBDC. In this respect, the BoM has embarked on a proof-of-concept (POC) project starting with one commercial bank, There are other POCs in the pipeline, and other commercial banks and members of the public will be invited to join the pilot in due course. [Source: BoM]

Bank of Mauritius Calls for Participation in Projects for its Innovation Hub (BoM)

[August 23, 2024] The Bank of Mauritius announced the upcoming launch of its Innovation Hub, inviting interested participants to register for fintech solution development projects, including Suptech/Regtech and CBDCs. This collaborative platform aims to foster cutting-edge innovations for the financial, banking, and regulatory sectors in Mauritius and the region by bringing together diverse stakeholders including entrepreneurs, industry experts, technology providers, regulators, academia, and students. The initiative is designed to accelerate the growth of the fintech ecosystem by leveraging the collective expertise and creativity of these key players. [Source: BoM]

Angolan Central Bank Exploring Central Bank Digital Currency (BNA]

[April 29, 2025] The Banco Nacional de Angola (BNA) revealed in its 2024 Annual Report that it concluded a preliminary CBDC study, with the objective of evaluating the benefits and risks associated with different models, and analyzing potential implementation in the Angolan financial system. For 2025, the BNA will continue to monitor international CBDC projects, including exchanges with specialized institutions and central banks, with the aim of deepening knowledge and exploring possible paths for its eventual implementation. [Source: BNA] However, according to a Bloomberg Law article, the BNA has purportedly been exploring CBDC since at least 2022. [Source: Bloomberg Law]

Liberia’s Central Bank Exploring Central Bank Digital Currency (CBL)

[May 5, 2025] The Central Bank of Liberia (CBL) revealed in its 2025-2029 Strategic Plan that it will explore the feasibility of introducing a CBDC to enhance financial inclusion and modernize the financial system. CBL’s approach will include a feasibility study to assess the potential impact of a CBDC on Liberia’s monetary policy, financial stability, and payment systems, and engagement with key stakeholders, including financial institutions, government bodies, and the public, to gather insights and address concerns surrounding the introduction of a CBDC. Based on the findings of the research and studies, the CBL may consider launching a pilot CBDC program, initially targeting areas where traditional banking infrastructure is limited, to assess its viability in the Liberian context. This is in line with the medium-term goal of the Bank to digitalize the financial system and the economy at large and reduce the need for paper currency. [Source: CBL]

Central Bank of Uzbekistan Explores Digital Som Pilot Project (UZ Daily)

[September 11, 2025] The Central Bank of Uzbekistan (CBU) is reportedly exploring the launch of digital som CBDC and commercial bank-issued stablecoin pilot projects. Both retail and wholesale CBDCs are being considered. The stablecoin pilot would be conducted in a regulatory sandbox run by the National Agency for Advanced Projects, the central bank emphasizing the importance of strict reserve backing to avoid effectively creating additional money supply. [Source: UZ Daily]

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.

Kiffmeister’s #Fintech Daily Digest (20260130)

January 30, 2026January 30, 2026 ~ kiffmeister

Digital Pound Lab: Phase 1 Update: Overview of First Round of Use Cases (BOE)

The Bank of England (BOE) Digital Pound Lab Phase 1 has completed, showcasing various demonstration use cases for U.K. retail payments infrastructure. The BOE developed several core capabilities including verifiable credentials for privacy-preserving identity verification, payment requests via QR codes, digital cheques, allowances for delegated spending, e-commerce integrations with delivery-versus-payment features, and blockchain interoperability. External participants (Fluxpay Limited; LINK, in collaboration with Consult Hyperion; NOBO Finance, in collaboration with Applied Blockchain; and Yotra Limited) tested additional use cases such as tiered wallets, tourist wallets, point-of-sale payments, and conditional business-to-business payments. Phase 2 is now underway with applications open until March 2026, aiming to explore more innovative payment services that don’t currently exist, with a showcase event planned for July 2026. [Source: BOE]

ECB Calls for Experts to Help Explore Roles of Digital Euro Technical Service Providers (ECB)

The European Central Bank (ECB) is inviting technical service providers (TSPs) from the EU to participate in two expert-level workshops in early March 2026 focused on their role in supporting market readiness for a potential digital euro. Following the October 2025 announcement of the digital euro project’s next phase, which includes a pilot starting in the second half of 2027 and potential first issuance in 2029, these half-day workshops will explore how TSPs can support payment service providers in both distribution and acquiring/acceptance activities. Interested TSPs must apply by February 10, 2026, and participants will be selected based on factors including their EU establishment, relevant experience, and technical capabilities, with the goal of creating balanced and representative workshop groups that will help inform the upcoming digital euro pilot activities. [Source: ECB]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20260129)

January 29, 2026January 29, 2026 ~ kiffmeister

CBDCTracker.org updated its central bank digital currency (CBDC) database to include December 2025 developments (delayed due to a technical glitch). Highlights include:
🇪🇺 The European Central Bank continuing to advance the digital euro by advancing key technical preparations, including system architecture and safeguards, while the European Council published its position on the proposed digital euro legislation.
🇨🇳 The People’s Bank of China expanding its digital yuan (e-CNY) pilot by enabling banks to pay interest on customer balances, a move aimed at broadening participation among financial institutions.
🇷🇺 The Russian government approving the use of the digital ruble for a broad range of budget-related expenditures, including transfers to federal institutions and public funds.
🇷🇼 The National Bank of Rwanda confirming that its e-FRW CBDC proof-of-concept will continue into 2026, focusing on technical feasibility, payment system integration, and legal framework recommendations ahead of the full technical design phase.
🇳🇴 Norges Bank deciding not to recommend issuing a CBDC at this stage, but will continue research and experimentation on CBDCs and tokenization through testing and international cooperation to retain future readiness.
🇬🇧 The Bank of England seeking participants to assess how a digital pound could affect existing businesses that choose to integrate it alongside established payment methods.

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20260128)

January 28, 2026January 28, 2026 ~ kiffmeister

Tether Launches USA₮, the Federally Regulated, Dollar-Backed Stablecoin (Tether)

Tether launched USA₮, a U.S. dollar-backed stablecoin specifically designed for the U.S. market under the GENIUS Act framework. Issued by Anchorage Digital Bank (America’s first federally regulated stablecoin issuer), USA₮ aims to provide institutions with a compliant digital dollar alternative while Tether’s global USD₮ continues operating worldwide. The stablecoin features Cantor Fitzgerald as reserve custodian, bank-grade compliance infrastructure, and is initially available on major exchanges including Bybit, Crypto.com, Kraken, OKX, and Moonpay. This launch represents Tether’s effort to strengthen U.S. dollar dominance in the digital economy while meeting American regulatory standards. The press release notes that Tether is the 17th-largest holder of U.S. Treasuries globally, ahead of sovereign holders including Germany, South Korea, and Australia. [Source: Tether]

ECB Paves Way for Acceptance of DLT-Based Assets as Eligible Eurosystem Collateral (ECB)

The European Central Bank (ECB) announced that it will accept marketable assets issued using distributed ledger technology (DLT) as eligible collateral for Eurosystem credit operations starting March 30, 2026. These DLT-based assets must meet standard Eurosystem collateral eligibility criteria and be available for settlement in systems compliant with the Central Securities Depository Regulation (CSDR) and reachable via TARGET2-Securities (T2S). The Eurosystem is also launching a work plan to explore whether DLT-native assets not represented in traditional securities settlement systems could become eligible collateral in the future, taking a staggered approach that considers market developments and evolving regulations like the DLT Pilot Regime and Markets in Crypto-Assets Regulation (MiCAR). This initiative reflects the ECB’s commitment to supporting innovation and technological progress in financial markets while maintaining safety and efficiency standards. [Source: ECB]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20260126)

January 26, 2026January 26, 2026 ~ kiffmeister

Stablecoins in Payments: What the Raw Transaction Numbers Miss (LinkedIn)

McKinsey Financial Services published analysis reveals that while stablecoins show headline transaction volumes of up to $35 trillion annually, the actual payment activity is only about $390 billion—representing roughly 0.02% of global payments. Most reported stablecoin transactions consist of trading, internal fund shuffling, and automated blockchain activity rather than real-world payments like supplier payments or remittances. The research, conducted with Artemis Analytics, found that B2B payments dominate actual stablecoin usage at $226 billion (60% of total), with Asia-originated activity leading at $245 billion. While stablecoin supply has grown from under $30 billion in 2020 to over $300 billion today, with projections reaching $2-4 trillion by 2030, the analysis emphasizes that financial institutions need to critically evaluate raw blockchain data and invest strategically in proven use cases rather than relying on inflated volume figures to assess stablecoins’ current market position and potential. [Source: McKinsey]

When Monetary Innovation Makes Money Obsolete (OMFIF)

The Official Monetary and Financial Institutions Forum (OMFIF) published an article by Ousmène Mandeng that argues that tokenization and instant financial transactions could make traditional money holdings obsolete. The author explains that money’s value stems from transaction frictions—the delays and costs of converting assets into purchasing power. As tokenization enables near-instantaneous, frictionless conversion between interest-bearing securities and money, people would no longer need to hold money balances in advance of payments. Instead, they would convert assets to money just-in-time for transactions and immediately back again, causing money holdings to shrink toward zero while money velocity becomes unbounded. This would fundamentally reshape banking, blurring the lines between banks and investment funds, as money transitions from being a store of value to merely a transient settlement instrument within transaction flows. [Source: OMFIF]

Stablecoins Are the Future But Banks Will Survive (Bloomberg)

Bloomberg published an article that argues that stablecoins pose minimal threat to traditional banking. While banks worry that interest-bearing stablecoins will drain deposits and increase their funding costs, the article contends that historical evidence suggests stablecoins and bank deposits serve complementary rather than competing functions—similar to how bank notes and deposits coexisted during the National Banking Era. The authors note that 70-80% of bank deposits are insensitive to interest rates, with customers valuing bundled services like physical branches over higher yields, making mass migration to stablecoins unlikely. They conclude that stablecoins, backed strictly by cash and short-term Treasuries under the GENIUS Act, enhance financial stability rather than threaten it, while providing additional demand for government debt. [Source: Bloomberg]

Stablecoins as Eurodollars 2.0 – Toward a Shadow Dollar Standard (SSRN)

A paper posted on SSRN co-authored by the University of Toronto’s Redouane Elkamhi argues that fiat-backed stablecoins function as “Eurodollars 2.0″—a new generation of offshore dollar liabilities that operate outside traditional banking regulation but remain economically linked to U.S. financial markets through reserve holdings and redemption mechanisms. Like the historical eurodollar system, stablecoins expand dollar liquidity creation and circulation beyond domestic borders, potentially strengthening dollar dominance by embedding the dollar as the default settlement asset in tokenized finance and accelerating digital dollarization in economies with weak currencies. However, this creates similar fragilities: stablecoins can experience rapid redemption runs that force reserve liquidations and transmit stress to money markets, while their global accessibility may erode monetary sovereignty in other jurisdictions. The authors propose the “Stablecoin Eurodollar System” framework to analyze how stress propagates through on-chain payment layers, off-chain reserve portfolios, and wholesale funding markets, emphasizing that the key policy challenge is not whether stablecoins exist but how convertibility into state money is governed when usage becomes systemic—particularly regarding reserve requirements, transparency standards, and whether public sector liquidity backstops should be extended to this new class of dollar instruments. [https://papers.ssrn.com/sol3/papers.cfm?abstract_id=6061095]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20260120)

January 20, 2026January 20, 2026 ~ kiffmeister

India’s Central Bank Proposes Linking BRICS’ Digital Currencies (Reuters)

The Reserve Bank of India (RBI) has reportedly recommended that the Indian government place a proposal to interconnect BRICS central bank digital currencies (CBDCs) on the agenda for the 2026 BRICS summit, which India will host. The proposal aims to facilitate cross-border payments for trade and tourism among BRICS members, potentially reducing reliance on dollar-based settlement systems, though the RBI maintains its efforts are not directed toward de-dollarization. Implementation would require resolution of several technical and political challenges: none of the BRICS states has fully deployed a retail CBDC beyond pilot programs, and any operational framework would necessitate consensus on interoperable technology standards, governance structures, and mechanisms to manage trade imbalances—a problem illustrated by earlier Russia-India local-currency trade arrangements where Russia accumulated large rupee balances with limited deployment options. The sources indicated that bilateral foreign exchange swap arrangements between central banks, with weekly or monthly settlements, are under consideration as one potential solution, though they cautioned that member states’ reluctance to adopt technology platforms developed by other countries could impede progress. The initiative builds on the 2025 Rio declaration calling for payment system interoperability among BRICS members and would mark the first formal presentation of a CBDC linkage proposal at a BRICS leaders’ meeting, though previous ambitious BRICS initiatives, including proposals for a common BRICS currency, have failed to materialize. [Source: Reuters]

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Kiffmeister’s #Fintech Daily Digest (20260119)

January 19, 2026January 19, 2026 ~ kiffmeister

ECB to Launch a Digital Euro Proof-of-Concept in 2027 (ECB)

The European Central Bank (ECB) published a presentation of its plans for a digital euro proof-of-concept (POC) program starting in H2 2027. The 12-month POC will involve a limited number of payment service providers (PSPs), merchants, and approximately 5,000-10,000 Eurosystem staff testing four use cases: person-to-person and person-to-business transactions using both online (alias/access number, e-commerce) and offline near-field communication (NFC) methods. The ECB will launch a call for expression of interest in March 2026 to select participating PSPs based on technical capabilities, market reach, and geographical representation. During the POC, transactions will use a digital means of payment that mimics the digital euro’s characteristics but won’t have legal tender status, operating under the Revised Payment Services Directive (PSD2) framework. [Source: ECB]

Liquidity, Redemptions, and Fire Sales with a Systemic Stablecoin (IMF)

The IMF published a paper that examines the financial stability risks posed by systemically important fiat-backed stablecoins and explores regulatory design choices to mitigate them. The authors argue that if stablecoins scale to systemic size, they could create dangerous feedback loops: redemptions would force bond sales, depressing market prices and yields, which would erode the issuer’s solvency and trigger further redemptions—amplifying stress across financial markets. Through both conceptual analysis and a simulation model, the paper demonstrates that capital requirements (maintaining asset-liability ratios above 100%) and cash reserve requirements are the most effective stabilizers, substantially reducing the likelihood and severity of runs and fire sales. Redemption gates and lower-duration bond portfolios provide additional but more modest protection by moderating intensity rather than frequency of crises. However, in any case, the paper concludes that international regulatory coordination will be essential to prevent arbitrage. [Source: IMF]

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Kiffmeister’s #Fintech Daily Digest (20260116)

January 16, 2026January 16, 2026 ~ kiffmeister

Kazakhstan’s Digital Tenge CBDC Officially Launched (NBRK)

The National Bank of the Republic of Kazakhstan (NBRK) announced that its digital tenge central bank digital currency (CBDC) has officially launched. The digital tenge is now legal tender in Kazakhstan, with the NBRK as the sole issuer, and interaction with it facilitated through financial market participants. [Source: NBRK]

SG-FORGE and SWIFT Move Forward in Digital Asset Interoperability (SG-Forge)

Societe Generale-FORGE (SG-FORGE) and SWIFT completed a trial involving the exchange and settlement of tokenized bonds using both fiat and digital currencies. The EUR CoinVertible, a stablecoin issued by SG-FORGE that is compliant with European Markets in Crypto-Assets (MiCA) regulations, was integrated with SWIFT’s interoperability capabilities to connect blockchain platforms with traditional payment systems. The initiative demonstrated several market operations including issuance, delivery-versus-payment settlement, coupon payments, and redemption. SG-FORGE provided its open-source Compliance Architecture for Security Tokens (CAST) framework and the EUR CoinVertible stablecoin, which became the first on-chain settlement asset natively compatible with SWIFT’s infrastructure. The trial, conducted with participating banks, showed that tokenized bonds can utilize existing payment systems while incorporating ISO 20022 standards. [Source: SG-FORGE]

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Kiffmeister’s #Fintech Daily Digest (20260115)

January 15, 2026January 15, 2026 ~ kiffmeister

eCurrency to Facilitate the Development of CBDC in Malawi (eCurrency)

eCurrency Mint has been selected by the Reserve Bank of Malawi (RBM) to develop and experiment with central bank digital currency (CBDC) technology in the country. The project will utilize eCurrency’s Digital Symmetric Core Currency Cryptography (DSC3) technology. DSC3 utilizes symmetric key cryptography along with layers of digital security to ensure that the resultant cryptographic objects, i.e. digital bearer instruments in the form of a cryptogram, are protected from counterfeiting. DSC3 supports a two-tier architecture and public-private partnership in which the central bank is the sole issuer of CBDC, while private sector payment networks enable its distribution, storage and transaction. [Source: eCurrency]

CBDCs versus Instant Payments (Central Banking)

Central Banking published an article that discusses the global trend of central banks prioritizing instant payment systems over CBDCs for improving domestic and cross-border payments, with 93.6% of surveyed central banks favoring instant payments domestically and 95.5% for cross-border transactions. While both technologies offer similar benefits like real-time transactions, instant payment systems are generally less complex and costly to implement than CBDC infrastructure, though CBDCs use central bank money rather than commercial bank money. Countries like the Bahamas, Jamaica, and Nigeria launched CBDCs primarily to address financial inclusion and outdated payment systems, but have faced adoption challenges, while successful instant payment systems like Brazil’s Pix and India’s UPI have proven highly effective. Experts suggest that for most jurisdictions, instant payment systems combined with digital identity frameworks provide sufficient solutions for retail payments, though CBDCs may have specific use cases in wholesale payments, cross-border transactions, or as backups to existing systems. The main challenges for both approaches include scalability issues for cross-border linkages, disintermediation risks for banks, and the need for harmonized legal and regulatory frameworks across jurisdictions. [Source: Central Banking]

Europe is Rediscovering the Virtues of Cash (The Economist)

The Economist published an article that discusses how Europe, particularly Scandinavia, rapidly embraced cashless payments over the past decade, with Sweden leading the way at 90% digital transactions. However, European authorities are now reversing course and mandating that businesses must continue accepting cash. The shift comes from concerns about excluding elderly and poor populations who struggle with digital payments, as well as worries about system resilience—Spain’s power cuts last spring left people unable to buy necessities, and there are fears about dependence on American payment companies like Visa and potential foreign sabotage. While cash usage had fallen dramatically (from 79% of eurozone transactions in 2016 to 52% in 2024), the EU now recognizes that physical money provides crucial backup when digital systems fail. [Source: The Economist]

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Kiffmeister’s #Fintech Daily Digest (20260114)

January 14, 2026January 14, 2026 ~ kiffmeister

What if Ether Goes to Zero? How Market Risk Becomes Infrastructure Risk in Crypto (Bank of Italy)

The Bank of Italy published a paper that examines how the market value of unbacked native tokens (like Ether) directly affects the security and availability of permissionless blockchains. It explains that these blockchains rely on validators who are compensated in native tokens—if a token’s price crashes substantially and persistently, validators may cease operations, potentially halting transaction settlement and increasing vulnerability to cyberattacks. This creates a problematic linkage where market risk for volatile, unbacked assets can transform into infrastructure and security risk for supposedly safer assets like stablecoins or tokenized securities that operate on the same blockchain. While historical evidence shows validator activity has remained stable despite price volatility (likely due to long-term optimism), the paper warns that a deep confidence crisis could trigger validator exodus, network attacks, or complete infrastructure failure, with limited effective mitigation strategies available given crypto’s decentralized nature. [Source: Bank of Italy]

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