Category: Bitcoin

Kiffmeister’s #Fintech Daily Digest (20231113)*

~ kiffmeister

Grayscale Bitcoin Trust discount shrinks to 10.35% as ETF hype persists

The discount on the Grayscale Bitcoin Trust (GBTC) has narrowed to its lowest levels since July 2021. Data from YCharts shows the trust’s discount to its net asset value (NAV) is 10.35% versus the almost 50% during the depths of the FTX-induced crypto winter in December last year. The shrinking comes amid reports that the U.S. Securities and Exchange Commission (SEC) has engaged in discussions with Grayscale Investments regarding the conversion of the trust into a spot Bitcoin exchange-traded fund (ETF). [Read more at Cryptonews]

FYI here are some of my upcoming speaking engagements:

– Currency Research Americas Cash Cycle & Payments Seminar (Orlando Florida on November 27-30)[Register here]

– Digital Euro Conference 2024 (Frankfurt on February 29)[Register here]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Kiffmeister’s central bank digital currency monthly monitor

Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20230914)*

~ kiffmeister

Franklin Templeton files for Bitcoin ETF

Asset manager Franklin Templeton, which is one of the world’s largest asset managers, filed an application for a spot Bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC) on September 12, 2023. The product would be called “The Franklin Bitcoin ETF” and its shares would be listed and traded on the CBOE BZX Exchange. Coinbase would be the fund’s custodian and surveillance-sharing partner. [Read more at Decrypt]

Fintech funding in Europe stumbles 70% YoY

According to Finch Capital’s 8th Annual State of European Fintech Report, European fintech companies secured only EUR 4.6 billion in funding in H1 2023, versus the EUR 15.8 billion raised during the same period in 2022. The deal count in H1 2023 dropped 48% to 463. The massive drop was mainly driven by a decreased number of mega rounds, a retreat in activity from American investors, and a return to investment fundamentals. [Read more at Finch Capital]

Vanuatu launches VANKLIA, a new national payment system

The Reserve Bank of Vanuatu launched a new national digital payment platform, VANKLIA, to strengthen its digital economy and promote financial inclusion. The VANKLIA system is comprised of a real-time gross settlement (RTGS) component and an automated clearing house (ACH) component which facilitates the clearing of low value, high volume electronic fund transfers for batch payments. [Read more at the International Finance Corporation]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Kiffmeister’s central bank digital currency monthly monitor

Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20230901)*

~ kiffmeister

SEC delays spot Bitcoin ETF decision for all applicants including BlackRock, Fidelity

The U.S. Securities and Exchange Commission (SEC) has delayed until October making a decision on all of the spot bitcoin exchange-traded fund (ETF) applications filed by applicants including BlackRock, WisdomTree, Invesco Galaxy, Wise Origin, VanEck, Bitwise and Valkyrie Digital Assets earlier this year. The SEC has a total of 240 days from when it first begins its review of the applications to make a final decision to approve or deny. SEC staff have traditionally used every possible comment and review period to delay making final decisions until those 240 days have elapsed. [Read more on the SEC website, making sure to focus on the August 31, 2023 updates]

RBI to add support for NFC to India’s UPI Lite digital wallet service

The Reserve Bank of India (RBI) will add support for near-field communications (NFC) payments to the country’s Unified Payments Interface (UPI) Lite digital wallet, enabling users to conduct transactions on their smartphone when there is no internet or mobile connection. The RBI is adding the option to the stored value wallet, launched in September 2022, to “optimize processing resources for banks, thereby reducing transaction failures”. [Read more at the RBI]

Tether’s stablecoin USDT ‘has a peg stability problem’, claims Kaiko analyst

USDT has a peg stability problem compared to other stablecoins. Its redemption fee and minimum means it’s often rational for USDT holders to sell the token on the market rather than redeem it for USD with Tether. As liquidity has dwindled, the market is no longer able to absorb significant USDT selling. Tether charges a 0.1% fee for fiat withdrawals over $1,000, meaning that USDT is redeemable at $0.99, with the minimum fiat withdrawal or deposit set at $100,000. Another catch is that users have to pay a non-refundable amount of $150 for “verification,” which, according to Tether, “is intended to ensure that only those who are serious about establishing an account apply.” [Read more at Decrypt] 

Enabling offline payment scalability

Lipis Advisors in partnership with Crunchfish released the fifth white paper in the “enabling offline payments in an online world” series. The new paper focuses on scalability, pointing out that the choice of hardware or software-based offline trusted environment can greatly impact the scalability features of offline payment systems. Software-based trusted environments are generally more scalable, because they don’t require the distribution of physical components and may be updated more easily. However, in low-income countries where most potential users can’t afford devices that support software-based trusted environments (i.e., smartphones), some combination of hardware- and software-based trusted environments should be implemented to ensure true scalability. [Read more at Crunchfish]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Kiffmeister’s central bank digital currency monthly monitor

Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20230831)*

~ kiffmeister

SWIFT hails success of blockchain interoperability pilot

SWIFT published the results from a series of experiments that show its infrastructure can seamlessly facilitate the transfer of tokenized value across multiple public and private blockchains. Working with more than a dozen major financial institutions and market infrastructures, SWIFT demonstrated that it can provide a single point of access to multiple networks using existing, secure infrastructure. Chainlink  was used as an enterprise abstraction layer to securely connect the SWIFT network to the Ethereum Sepolia network, while Chainlink’s Cross-Chain Interoperability Protocol enabled complete interoperability between the source and destination blockchains. [Read more at SWIFT]

Binance to ‘gradually’ end support for BUSD products

Binance will “gradually” end support for its BUSD stablecoin, removing it from spot and margin trading pairs. Users have been asked to convert their BUSD into other assets by February next year. Binance is also delisting BUSD as a loanable asset on September 6 and will cease withdrawals of Binance-peg BUSD tokens via BNB Chain, Avalanche, Polygon and Tron on September 7. A decision to end support for BUSD has been expected since BUSD issuer Paxos was ordered to stop minting the coin in February. [Read more at Binance]

The controversial business of cash-to-crypto Bitcoin ATMs

The Kansas City Federal Reserve published an article that surveys the data available on the multi-billion Bitcoin ATM (BTM) industry in the United States and reviews its overall shape and customer base. It finds that the industry continues to grow, with the number of BTMs increasing after the “crypto winter” retrenchment. Despite high fees, consumers seem likely to use them—perhaps for remittances, investment, or both. [Read more at the Kansas City Fed]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Kiffmeister’s central bank digital currency monthly monitor

Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20230712)*

~ kiffmeister

IMF warns on Marshall Islands’ Fintech plans

IMF staff, in their concluding statement of their 2023 Article IV consultation mission, expressed concerns about the Fintech initiatives of the Republic of the Marshall Islands (RMI). These included the enactment of the DAO Act and the move to start registration of decentralized autonomous organizations (DAOs), and the potential launch of a stablecoin. Concerns included capacity constraints and questions regarding the understanding of the authorities to adequately regulate and supervise these initiatives. IMF staff also encouraged the authorities to expeditiously enact the SOV Repeal Bill. (In 2018 the RMI legislature passed the SOV Act making the RMI government-backed SOV crypto-asset a second legal tender, in addition to the US dollar, about which IMF staff had expressed reservations.) [Read more at the IMF]

The BIS on the crypto ecosystem key elements and risks

The BIS published a report on the key elements of the crypto ecosystem. It concludes that the crypto ecosystem is characterized by congestion and high fees, which lead to fragmentation. And despite an original decentralization ethos, crypto and decentralized finance (DeFi) often feature substantial de-facto centralization. Also, while DeFi mostly replicates services offered by the traditional financial system, it amplifies known risks. Moreover, as DeFi does not finance activity in the real economy, its growth is driven by the speculative influx of new users, with substantial risks to investors. [Read more at the BIS]

UK consultation on the digital securities sandbox

The U.K. government is consulting on Digital Securities Sandbox (DSS) in which the financial industry will be able to set up and test financial market infrastructures that utilize digital asset technology. The DSS will enable firms to set up and operate financial market infrastructures (FMIs) using innovative digital asset technology, performing the activities of a central securities depository (specifically notary, settlement and maintenance), and operating a trading venue under a temporarily modified legislative and regulatory framework. The consultation invites feedback from industry on the approach to the DSS, and seeks feedback on some further policy and legal issues. [Read more at HM Treasury]

Nuggets working with Bank of England on privacy layer for digital pound

Payments platform Nuggets is working with the Bank of England to develop a privacy and identity layer for a potential digital pound. The platform, which enables decentralized identity, plans to design a private and secure system to prevent the tracking and correlation of transactions, as well as prevent fraud and money laundering. Nuggets said that it plans to implement zero-knowledge proofs on its privacy layer, which will enable people to verify their identity without sharing their data. [Read more at Coindesk]

Grayscale bitcoin shares discount lowest since last summer

The Grayscale Bitcoin Trust (GBTC) discount continues to shrink amid a wave of U.S. exchange-traded fund (ETF) applications. Grayscale has attempted to convert GBTC from a closed-end fund into an ETF to enable redemptions at bitcoin’s market price, but the U.S. Securities and Exchange Commission (SEC) has denied approval so far. The inability of investors to redeem GBTC is the primary reason for the GBTC discount. However, BlackRock’s Bitcoin ETF filing on June 16 revived the market’s hope around ETF approvals. [Read more at Decrypt]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Upcoming conferences, webinars and speaking engagements:

  • I’ll be lecturing at the Digital Euro Association (DEA) Digital Money Academy on July 27, 2023. [Register here]

Kiffmeister’s central bank digital currency monthly monitor

Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20230630)*

~ kiffmeister

ECB may launch wholesale CBDC trials in 2024

The European Central Bank (ECB) “new technologies for wholesale settlements contact group” held its first meeting on June 21, 2023, marking the start of the Eurosystem’s exploratory work on how wholesale financial transactions recorded on distributed ledger technology (DLT) platforms could be settled in central bank money. Exploratory work is expected to begin in 2024 with trials or experiments to launch later in 2024. Initially, three types of interoperability solutions will be explored; the Deutsche Bundesbank’s trigger, Banca d’Italia’s TIPS Hash-Link, and the Banque de France’s wholesale central bank digital currency (CBDC) based full-DLT interoperability solutions. [Read more at the ECB]

It is notable that the ECB meeting minutes discussed above don’t mention the word “central bank digital currency” anywhere, although Rosa Giovanna Barresi made the good point that the ECB prefers to call what has become popularly known as “wholesale CBDC” “central bank money (CeBM) made available on a distributed ledger”. The reticence to calling it “wholesale CBDC” is evident in a September 2022 speech by the ECB’s Fabio Panetta, which points out that wholesale CBDC is nothing new:

There is a widespread misconception that wholesale CBDC does not yet exist. In fact, central bank money (CeBM) has been available in digital form for wholesale transactions between banks for decades. This misconception is fueled by the commonly held assumption that wholesale CBDC needs to be operated using DLT. But wholesale CBDC is not synonymous with DLT, as it can be based on any digital technology. In the euro area, the Eurosystem offers banks the possibility of settling wholesale digital transactions through its TARGET Services using a centralized ledger.

Italian banks are cooperating in a wholesale CBDC project

And speaking of Banca d’Italia, according to ThePaypers, Associazione Bancaria Italiana (ABI) has brought together 18 commercial banks to “collaborate” with the central bank in a CBDC pilot. In this Project Leonidas the banks use a shared private ledger to streamline interbank payments using a pretend DLT-based wholesale CBDC. This sounds very similar to the ABI’s Project Spunta, a DLT-based platform now in production that  is used to settle small interbank transactions, with Project Leonidas being a scaled up version to handle large interbank transactions. However, it doesn’t actually seem to be CBDC-based, even though it’s been accepted into the Banca d’Italia’s Milano Hub innovation facilitator. In other words, the “wholesale CBDC” used is not tokenized CeBM. [Read more at the Paypers]

Fidelity refiles for spot bitcoin ETF

Asset manager Fidelity has refiled with the US Securities Exchange Commission (SEC) paperwork for its Wise Origin Bitcoin Trust spot bitcoin exchange-traded fund (ETF), weeks after BlackRock submitted paperwork for its iShares Bitcoin Trust, also a spot bitcoin ETF. Fidelity had originally applied to launch the Wise Origin Bitcoin Trust in 2021, but that effort it was rejected by the SEC in 2022. [Read more at CoinDesk]

Mastercard introduces ‘Multi-Token Network’ (MTN)

MasterCard introduced its Multi-Token Network, effectively an app store powered by blockchain technologies for building regulated financial applications. The platform will provide a range of tools that Mastercard has developed, including a private version of the Ethereum blockchain, for developers to build innovative interoperable applications. The first phase of the applications will be powered by tokenized bank deposits. [Read more at MasterCard]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Upcoming conferences, webinars and speaking engagements:

  • I’ll be participating in Currency Research’s in-person Global Payments Summit in Cape Town from June 28 to 30. [Register here]
  • I’ll be lecturing at the Digital Euro Association (DEA) Digital Money Academy on July 27, 2023. [Register here]

Kiffmeister’s global central bank digital currency monthly monitor

Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20230628)*

~ kiffmeister

European Commission publishes digital euro package

The European Commission published proposals, one aimed at ensuring continuing access to euro banknotes and coins across the euro area, and the other establishing the legal framework for a possible digital euro. If the latter is adopted by the European Parliament and Council, it will ultimately be for the European Central Bank (ECB) to decide if and when to issue the digital euro. According to the digital euro proposed legislation, the digital euro would not be required to have a bank account, and must be usable to make low-value payments while offline as long as there is physical proximity between payer and the payee devices. Also, it must be possible to hold digital euro locally stored on electronic devices up to a certain threshold. Basic services, including when making purchases in digital euro, whether nationally or across border, will not incur fees. However, commercial banks could charge customers for their accounts to which the digital euro may be linked, and for voluntary, non-basic services such as conditional payments. [Read more at the EC]

According to the accompanying questions and answers, user personal data would be accessed and processed mainly by the bank or payment service provider (PSP) with whom they hold a digital euro account, for account management purposes, fraud prevention and to abide by financial integrity (e.g., AML/CFT) regulatory requirements. The ECB would not be able to identify individual digital euro users, nor what users do with their money. They would only have access to encrypted data, and only to the extent that this is necessary to settle digital euro transactions, and support payment services providers in performing their tasks. And just like cash, the details of offline digital euro payments would not be visible to anyone – neither the user’s bank, PSP, nor the ECB. The digital euro should not be programmable… “as a digital form of the single currency, the digital euro should be fully fungible“. [Read more in the FAQ]

TrueUSD depegs on Binance.US, drops to 80 cents against Tether

Dollar-pegged stablecoin TrueUSD (TUSD) is trading at a discount relative to Tether (USDT), hitting a low of 80 cents on June 28, 2023. TUSD is the #5 stablecoin in terms of market capitalization ($3.1 billion versus Tether’s $83.4 billion and USD Coin’s (USDC’s) $28.2 billion on June 28, according to CoinGecko.com). The spike is being attributed to questions around TUSD’s reserves, some of which is purportedly being held and/or managed by troubled Prime Trust Bank, and rumors regarding holders’ inability to redeem TUSD. [Read more at Bitcoinist]

Grayscale Bitcoin Trust shares discount dips to 30%

The discount on Grayscale Bitcoin Trust’s (GBTC)  share price relative to its net asset value dropped to 30% on June 27, 2023. The last time GBTC closed the day around this level was in September 2022. This follows reports that Fidelity Investments is preparing to follow BlackRock’s application for a spot bitcoin exchange-traded fund (ETF) with its own, renewing optimism about converting GBTC into an ETF, which would eliminate the discount. [Read more at CoinDesk]

Fintech lending with Lowtech pricing

The National Bureau of Economic Research (NBER) published a paper that questions Fintech lending’s ability to spot good credit risks missed by big banks and traditional lenders, providing people with affordable loans they might not otherwise be able to access. Using a comprehensive dataset of FinTech personal loans, the paper shows that Fintech lender loan rates continue to rely heavily on conventional credit scores, including 45% higher rates for nonprime borrowers. Other known default predictors are often neglected. Within each segment (prime/nonprime) loan rates are not very responsive to default risk, resulting in realized loan-level returns decreasing with risk. [Read more at the NBER]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Upcoming conferences, webinars and speaking engagements:

  • I’ll be participating in Currency Research’s in-person Global Payments Summit in Cape Town from June 28 to 30. [Register here]
  • I’ll be lecturing at the Digital Euro Association (DEA) Digital Money Academy on July 27, 2023. [Register here]

Kiffmeister’s global central bank digital currency monthly monitor

Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20230509)

~ kiffmeister

Bitcoin Based-Memecoin Surge Seen Driving Binance Anxiety

The bitcoin blockchain is being clogged up by a recent spate of Bitcoin-based memecoins such as Pepe, driving up transaction fees and renewing concern about Binance. Several memecoins use bitcoin for transaction settlement, using a new BRC-20 bitcoin-based token standard. Binance halted withdrawals of Bitcoin twice in less than 12 hours on May 7, 2023, citing congestion on the network, saying that higher fees have been applied to pending transactions so they get picked up by Bitcoin miners. [Read more at Bloomberg]

Upcoming conferences, webinars and speaking engagements:

Kiffmeister’s global central bank digital currency monthly monitor

Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20230208)

~ kiffmeister

Brazil central bank reportedly to launch its digital currency in 2024

Banco Central do Brasil (BCB) reportedly aims to launch its central bank digital currency (CBDC) in 2024. It will be designed to encourage banks to tokenize their assets, so it sounds like it’s being designed for niche cases, rather than general purpose usage.The huge popularity of the BCB’s PIX payment system might argue for such an approach. Its use now surpasses transactions with credit and debit cards in the country. [Read more at Reuters] [Sandra Mianda has provided a great PIX explainer and infographic on LinkedIn]

BIS Innovation Hub unveils new stablecoin, DeFi, CBDC projects

The BIS Innovation Hub (BISIH) has unveiled its 2023 work program. This includes previously unannounced projects on stablecoins, DeFi and CBDC, including Project Pyxtrial at the London Centre that will monitor stablecoins to ensure that the backing assets at least match the stablecoin issuance. And “going into its fourth year of life, the BIS Innovation Hub is reaching a cruising altitude, with 21 ongoing and five concluded projects. The Hub will increase the integration of its global network with additional cross-centre projects such as Mariana, which connects the Singapore, Swiss and upcoming Eurosystem centres, and others.” [Read more at the BISIH]

Is the Bitcoin Lightning Network the Future of Payments?

etonec has published a Bitcoin Lightning network explainer. Although Bitcoin enables global transactions without intermediaries, settling all payments via the Bitcoin blockchain has limitations. Lightning can significantly increase payment throughput. Also the possibility to send other assets, such as stablecoins, via the Lightning network, might positively impact its development. [Read more at etonec]

Dubai releases crypto regulations for virtual asset service providers

Dubai’s Virtual Asset Regulatory Authority (VARA) has issued new guidelines for virtual asset service providers (VASPs) operating within the emirate. VARA’s “Full Market Product Regulations” include four compulsory rulebooks and activity-specific rulebooks that lay down the rules for operating VASPs. The rules excluding those operating under the Dubai International Financial Centre (DIFC), a free zone with its own regulator. [Read more at VARA]

Upcoming conferences, webinars and speaking engagements:

Kiffmeister’s global central bank digital currency monthly monitor

Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20230130)

~ kiffmeister

I’ve updated my tabulation of the 92 central banks that have issued, piloted, experimented with and/or researched retail central bank digital currency (CBDC). [See it here]

Tailored CBDC technical assistance in emerging markets: a critical gap in the pursuit of reaching the SDGs

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) published a stocktaking paper that I co-authored on the degrees of CBDC technical assistance (TA) support for lower- and middle-income countries (LMICs).  It highlights the different options for CBDC support for LMIC authorities in their general-purpose/retail and wholesale CBDC exploration journeys. It also shows how demand outstrips supply in fit-for- purpose assistance and the important role of development partners in closing this gap in order to ensure that CBDCs can meet the expectations in relation to achieving the sustainable development goals (SDGs). Also the paper highlights the remaining gaps in optimally equipping authorities in LMICs in their CBDC pursuit. [Read more at Cenfri.org]

Montenegro starting work on a central bank- or government-issued stablecoin

Prime Minister Dritan Abazovic, announced that, in collaboration with Ripple and the central bank, the government is starting work on a digital currency or stablecoin for Montenegro. Montenegro uses the EUR, despite not being a member of the Eurozone, although it is a candidate country for European Union (EU) membership. Is this a CBDC? Palau is working on something similar to this but Palau doesn’t have a central bank so giving it the thumbs down seems logical. However, even though what they propose is very similar to Palau’s concept, Montenegro does have a central bank and the stablecoin will be presumably backed and issued by the central bank, and denominated in the country’s unit of account. What do others think. Is this a CBDC project? [Read more on Twitter]

UPI – The golden child of payments in India

Arthur Bedel provides a nice explainer on the National Payments Corporation Of India (NPCI) Unified Payment Interface (UPI), the fastest growing payment system in the world. The UPI allows users to transfer money between bank accounts across a single window. It’s a system that powers multiple bank accounts into a single mobile app. This means you can send or receive money or scan a QR code to pay an individual, a merchant or a service provider to shop, pay bills or authorize payments. It was launched in 2016, to reduce the use of cash in the India. The NPCI is governed by the Reserve Bank of India (RBI), and its primary goal is to drive India towards becoming a digital economy. [Read more on LinkedIn]

Data shows 50% of bitcoin hashrate controlled by two mining pools

Bitcoin hashrate is becoming highly centralized, with a few mining pools controlling most of the blockchain mining power. The latest data from Mempool indicates that over 50% of the total hashrate is held by Foundry USA and Antpool. The graph below shows that over 80% of Bitcoin’s mining power is concentrated among just 5 pools. This contrasts with the beginning of 2022, when these five mining pools barely exceeded 60% of the hashrate. This poses significant dangers to the cryptocurrency, because the miners could agree to reject transactions that do not meet a specific parameter leading to a 51% attack. [Read more at Bitcoinist]  [Use pie chart!]

Upcoming conferences, webinars and speaking engagements:

  • I’ll be speaking at SettleMint’s “central banks leading the way in the decentralized world” webinar on February 1 at 17:00 GST. [Register here]
  • I’ll be moderating a panel on “what happens when the lights go out…different schemes for offline functionality” at the in-person Digital Currency Conference (DCC) in Mexico City on May 18. [Register here]

Kiffmeister’s global central bank digital currency monthly monitor

Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]