Kiffmeister’s #Fintech Daily Digest (20260702)

A Unified Ledger in Practice: Lessons from Project Hangang (BoK)

Bank of Korea (BoK) Governor Hyun Song Shin presented a paper outlining the experiences and implications of “Project Hangang” at the ECB Forum on Central Banking in Sintra, Portugal. The paper argues that Hangang shows a unified ledger can implement tokenized reserves and deposits at scale while preserving a two‑tier monetary system and singleness of money, but only via specific architectural choices and unresolved institutional reforms. The project runs a permissioned digital currency system with wholesale central bank money natively issued on-ledger, burn‑and‑issue interbank transfers, and a strict separation of fungible currency tokens from a programmable voucher layer. Phase I demonstrated live retail and programmable public‑voucher use cases for around 80,000 users, but with crude, offline reconciliation to BOK‑Wire+ and pre‑funded liquidity. Phase II scales to ongoing operation and fiscal disbursements, while future work centers on tokenized government bonds, 24/7 intraday liquidity and cross‑border linkage via Project Agorá, contingent on clarifying the legal status of wholesale claims and the integrated liquidity framework. [ECB]

Financial Market Infrastructures Evolution in a Tokenized Economy (IMF)

The IMF published a paper by Cabedo, Mancini-Griffoli, Schar and Zhang that argues tokenization will reconfigure, rather than eliminate, financial market infrastructures by shifting deterministic lifecycle functions into smart contracts while preserving institutional responsibility for governance, legal certainty, and discretionary risk management. The paper maps issuance, clearing, settlement, and reporting onto single, common, and compatible ledger architectures, showing where atomic on‑chain execution can replace current post‑trade processes and where off‑chain or multi‑ledger coordination still dominates. It highlights new risks—smart‑contract design failures, oracle and bridge dependencies, governance concentration, and privacy trade‑offs—alongside persistent needs for central counterparties, depositories, and trade repositories to manage defaults, loss mutualization, finality, and supervisory access. The central unresolved issue is how law and regulation will define authoritative ledgers, recognize blockchain settlement, and specify accountable entities in hybrid FMI models. [IMF]

Jurisdictions Where Retail CBDC Is Being Explored

I’ve updated my tabulation of the central banks that have launched, piloted, experimented with and/or researched retail central bank digital currency (CBDC)(see below). The table was compiled from publicly available sources, including media and central bank websites, and not verified through official channels. If I’m missing anything, or you find mistakes in the tabulation, please let me know in the comments!

According to my count, 115 central banks have launched retail CBDC explorations based on publicly-available information. It doesn’t include the two that started issuing retail CBDC and then shut the platforms down (Ecuador and Finland). Four jurisdictions have seen full launches (Bahamas, Jamaica, Kazakhstan, Nigeria), 13 pilot launches (where the central bank is/was issuing real CBDC to a limited subset of external users), 23 have seen proof-of-concept work started, and 75 started and remain in the pure research phase. These are less than the numbers published by the Atlantic Council, because they count individual countries in currency zones (e.g., Eurozone). BTW for those who want a more historical view of CBDC developments I strongly recommend the CBDCTracker.org database.

The table below also indicates in green which 29 projects are truly “live” where “live” is defined as those that are currently in active launch (3), pilot (5) or proof-of-concept (8) phases, plus others that have published research updates during the last 12 months (13).

Notes: The difference between a “pilot” and “proof of concept” (POC) is that a pilot involves actual users, whereas a POC does not, even though some POCs may involve central bank staff. Also, because the tabulation is based only on publicly-available information, it is likely that there is some POC activity in the “research” category, but no announcements have been made. Finally, entries that are crossed through indicate that the projects have been shut down, or put on hold (“watchful waiting”).

BTW 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.