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 Countries like the Bahamas, Jamaica, and Nigeria launched CBDCs primarily to address financial inclusion and outdated payment systems, but have faced adoption challenges, while successful instant payment systems like Brazil’s Pix and India’s UPI have proven highly effective.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]
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.
