Day: September 24, 2026

Kiffmeister’s #Fintech Daily Digest (20260924)

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Central Bank of Uzbekistan Exploring Wholesale CBDC (CBU)

[August 30, 2026] At the inaugural Silk Road Finance and Technology Forum (SRFTF), Central Bank of Uzbekistan (CBU) officials outlined a model under consideration in which a wholesale central bank digital currency (CBDC) could provide a trusted settlement layer for privately issued stablecoins, with licensed institutions managing customer relationships and initial testing taking place through a regulatory sandbox. The SRFTF was co-organized by the CBU and the Global Finance & Technology Network (GFTN). The CBU has since posted on its website a white paper co-authored by the GFTN and the Official Monetary and Financial Institutions Forum (OMFIF) that explores the advantages and disadvantages of wholesale CBDCs in the Uzbekistan context. The report assesses if wholesale CBDC could securely improve domestic capital markets and cross-border settlements. However, it critically questions whether alternative synchronization systems might achieve these goals more cost-effectively, proposing a rigorous 24-month evaluative roadmap. [CBU]

Six Canadian Banks Explore Development of a Secure CAD Tokenized Deposit Solution (CIBC)

Six Canadian banks are jointly exploring the development of Canadian dollar based digital money solutions, starting with a tokenized deposits initiative. The project seeks to deliver faster, more efficient and programmable payments to Canadian customers while preserving safety, stability, and effective regulatory oversight. The first phase aims to move tokenized deposits efficiently across Canadian financial institutions with a longer term goal to connect with other emerging digital assets initiatives. The participants are Bank of Montreal (BMO), Canadian Imperial Bank of Commerce (CIBC), National Bank of Canada (NBC), Royal Bank of Canada (RBC), The Bank of Nova Scotia (Scotiabank), and TD Bank Group (TD). The participants anticipate the inclusion of other deposit-taking institutions at the appropriate time. [CIBC]

BTW if you want to see a complete database of my DFC-related posts going back years, including many that didn’t make the Daily Digest cut, click here.

FYI 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 (20260921)(Second Revision)

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On further consideration, I am fully walking back my contention that the European Central Bank (ECB) Pontes pilot “cash tokens” are not tokenized central bank money (CeBM) or wholesale central bank digital currency (CBDC). Based on the standard Bank for International Settlements (BIS) definition of a CBDC (a digital liability of the central bank denominated in the national unit of account), the cash tokens unambiguously qualify. In my first revision of the September post, I had appended an additional condition that the transfer of the digital instrument must constitute instantaneous, unconditional, and legal settlement finality natively on the primary ledger. Because the current Pontes architecture relies on a subsequent defunding event in T2 to achieve ultimate legal finality, I argued they functioned as transitional settlement proxies (effectively TARGET-linked depository receipts) rather than true wholesale CBDCs. I now recognize that appending this strict settlement-timing condition to the base definition was a mistake. While the distinction between technical and legal finality remains a critical architectural discussion regarding systemic risk, it should not disqualify an instrument from being classified as a CBDC. Moving forward, I am sticking strictly to the BIS definition. Sorry for all the whipsawing!

Eurosystem Brings Central Bank Money to Tokenized Finance (ECB)

The European Central Bank (ECB) launched Pontes to enable wholesale transactions in tokenized assets to be settled in central bank money via Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET) Services. Operating as a consolidated interoperability solution, Pontes integrates the strengths of the Eurosystem’s 2024 exploratory trials. It features a dual settlement model that allows participants to settle the cash leg of transactions either directly in T2 (the Eurosystem’s real-time gross settlement system) via application programming interface (API) based triggers, or on the Eurosystem distributed ledger technology (DLT) platform utilizing cash tokens (a claim on the ECB to transfer the equivalent CeBM in T2) and dedicated DLT wallets. In both cases, legal settlement finality in CeBM occurs in T2 — for cash tokens, upon defunding or the mandatory end-of-day sweep back into T2 accounts. The hash-link protocol is specifically utilized to ensure secure, synchronized delivery versus payment (DvP) across platforms. Pontes will initially offer a core set of services, with enhanced features and extended operating hours introduced gradually toward full implementation by 2028. [ECB]

ECB to Invest Part of Own Funds in Tokenized Securities, with Settlement via Pontes (ECB)

The European Central Bank (ECB) is initiating investments of its own funds in tokenized, euro-denominated public sector securities to build institutional expertise in distributed ledger technology (DLT). Transactions will settle in central bank money via the Eurosystem’s newly launched Pontes solution, supporting the broader Appia initiative for a European tokenized financial ecosystem. [ECB]

BTW if you want to see a complete database of my DFC-related posts going back years, including many that didn’t make the Daily Digest cut, click here.

FYI 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.