UAE Bank Completes Two-Way Digital Dirham Transfers with Bank of China (FintechNews)
The Commercial Bank of Dubai (CBD) has reportedly executed end-to-end wholesale central bank digital currency (CBDC) transactions with the Bank of China. Conducted through the Central Bank of the United Arab Emirates (CBUAE) Jisr platform, the two-way transfers involved both sending and receiving wholesale digital dirhams, culminating in final settlement. This initiative advances cross-border payment capabilities between the United Arab Emirates and China and aligns with the broader Digital Dirham Programme under the CBUAE’s Financial Infrastructure Transformation Programme. [FintechNews]
How Instant Payment Systems Contribute to the Discussion of CBDC Projects (LinkedIn)
In a LinkedIn Newsletter post, Humberto Andrade examined how retail fast payment systems (FPSs) inform central bank digital currency (CBDC) debates through the lens of monetary sovereignty. Andrade argues that while central bank-settled FPS platforms successfully scale retail transactions using central bank money, they leave core sovereignty issues unresolved. Such FPS platforms reduce domestic dependence on foreign card networks, but they do not eliminate reliance on foreign stablecoins, dollarized settlement, or correspondent banking rails. Consequently, Andrade frames CBDCs as a choice between tokenized commercial bank deposits settled on central bank infrastructure versus issuing retail CBDC. If retail CBDC is deployed, policymakers may have to mitigate commercial bank deposit disintermediation through limits on holdings and remuneration, while embedding robust privacy architectures to secure public adoption. [LinkedIn]
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.