Is Project Hangang’s Digital Currency a Retail CBDC? (BOK)
The Bank of Korea (BOK) affirmed that Project Hangang’s digital currency is not a retail central bank digital currency (CBDC). Starting in 2023, the BOK shifted its digital currency research direction from retail CBDC to a focus on commercial bank deposit tokens settled with wholesale CBDC, because the BOK found that there is no significant need to introduce a retail CBDC , and even if one were to be introduced, it is highly likely that it would not be widely adopted. Meanwhile, preparations for the second phase of the Han River Project are in full swing, with the BOK and participating banks being busy with final preparations for the pilot relaunch before the end of 2026. [BOK]
Central Bank Digital Currency: Challenges and Lessons for Morocco (BOM)
Bank Al-Maghrib (BAM) published a working paper that evaluates the macro-financial feasibility of a retail central bank digital currency (CBDC) for Morocco. While digital payment adoption is expanding, persistent domestic cash reliance highlights entrenched structural constraints alongside untapped infrastructural efficiencies that a CBDC could help unlock. To mitigate systemic disintermediation and preserve monetary policy transmission, the authors advocate a hybrid, two-tier architecture: the central bank issues an unremunerated e-dirham, while private intermediaries manage client distribution and financial integrity compliance. Ultimately, the paper frames potential CBDC implementation as a long-term prospect requiring a gradual, prudent, and collaborative approach. [BOM]
Call for Evidence on CCP Use of Tokenized Forms of Collateral (ESMA)
The European Securities and Markets Authority (ESMA) is seeking views on whether, and under what conditions, tokenized forms of collateral could be used safely and effectively by European Union (EU) financial market infrastructure central counterparties (CCPs). This inquiry probes whether existing regulatory frameworks sufficiently mitigate the complex legal, operational, and liquidity risks introduced by distributed ledger technologies. Specifically, ESMA questions if tokenization, whether via “digital twins” or natively issued assets, compromises settlement finality, asset segregation, or default management processes. The paper critically examines systemic vulnerabilities, including interoperability friction, cyber risks, and market concentration. ESMA will consider all comments received by January 15, 2027. [ESMA]
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.
