Kiffmeister’s #Fintech Daily Digest (20241206)

December 6, 2024December 6, 2024 ~ kiffmeister

Regulated Settlement Network proof-of-concept (SIFMA)

The Securities Industry and Financial Markets Association (SIFMA) published the results of Regulated Settlement Network (RSN) proof-of-concept that explored the possibilities for shared ledger-based digital settlement using U.S. Treasury securities and tokenized cash. It found that multi-asset and cross-network settlement could be enhanced through a shared-ledger financial market infrastructure (FMI) that contains tokenized securities, central bank deposits, and commercial bank deposits where each institution operates its own partition. The network enabled a common settlement infrastructure that is 24/7, programmable, and offered precise settlement capabilities to allow financial institutions to optimize their collateral and liquidity positions. At the same time, the network alleviated challenges such as market fragmentation and uncertainty throughout the settlement process. [Read more at SIFMA]

A brief and critical summary of the FATF’s history (Izabella Kaminska)

Former FT Alphaville columnist Izabella Kaminska provided a brief and critical history of the Financial Action Task Force (FATF). She shows how, what began as a tool for financial integrity has morphed into unchecked economic control, undermining civil liberties and the principle of monetary neutrality, without any proof that it meaningfully reduces any of the criminal activity it was tasked to reduce. None of this is big news. See for example, Ronald Pol’s aptly titled “Anti-money laundering: The world’s least effective policy experiment?” [Read more at Threadreader]

Embedding cross-border transaction policy compliance with Project Mandala (BIS)

The Bank for International Settlements (BIS) and its central bank partners demonstrated that regulatory compliance can be embedded in cross-border transaction protocols. Project Mandala, which has reached proof-of-concept stage, aims to automate compliance procedures, enhance transparency of country-specific policies and provide real-time reporting and monitoring for regulators and supervisors. This architecture integrates a peer-to-peer messaging system, rules engine and proof engine. It ensures that all necessary compliance checks have been completed before the payment instruction is initiated, after which the system automatically generates a compliance proof, which accompanies any digital settlement asset or payment instructions across borders. [Read more at the BIS]

A quantitative analysis of the holding limit for a digital euro (Deutsche Bundesbank)

A paper co-written by a Deutsche Bundesbank staffer conducts a quantitative analysis to calculate a potential digital euro holding limit. It draws on a detailed dataset including individual bank level as well as aggregated banking group data for the entire euro area. It uses data and a simulation approach on the number of accounts in individual institutions and on account balance distribution. To assess the De impact on banks, the analysis is conducted for two different points in time reflecting different monetary policy environments with accommodative and restrictive stance. The effects of the CBDC are considered in three holding limit scenarios. The calculations reveal a lower bound holding limit of around 1,000 euro that almost all banks can handle. The results show a strong heterogeneity between the various euro area banks, as many could offer significantly higher limits. For the implementation of holding limits, the paper therefore proposes a model that has a low mandatory limit which every institution must offer, while providers can decide for themselves whether they like to offer a higher limit depending on their individual situation and customer base, subject to an approval process. [Download the paper at SSRN]

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Upcoming Speaking Engagements:

Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]

And 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 john@kiffmeister.com.

Kiffmeister’s #Fintech Daily Digest (20241120)

November 20, 2024November 20, 2024 ~ kiffmeister

Paxos to Buy Finland’s Membrane Finance to gain EU access (CoinDesk)

Stablecoin issuer Paxos will gain access to the European Union (EU), by agreeing to buy Finland-based electronic money institution (EMI) Membrane Finance. “The acquisition is subject to regulatory approval [but] upon completion of the acquisition, Paxos will be a fully licensed EMI in Finland and the EU.” Membrane’s digital assets are regulated by Finland’s Fin-FSA and fully compliant with the EU’s Markets in Crypto-Assets Regulation (MiCA). This follows Tether’s recent investment in Quantoz Payments to support the latter’s launch of its EURQ and USDQ MiCA-compliant stablecoins. In July 2024, USDC and EURC issuer Circle claimed that it became MiCA compliant when it attained an EMI license from the French Autorité de Contrôle Prudentiel et de Résolution (ACPR). [Read more at Paxos]

Deutsche Bank, UBS settle tokenized deposit payments in Bundesbank Trigger solution experiment (Ledger Insights)

UBS and Deutsche Bank have reportedly simulated tokenized deposit payments between the banks as part of the European Central Bank (ECB) wholesale distributed ledger technology (DLT) settlement trials. The Bundesbank’s Trigger solution, that enables blockchain based systems to link to the Trigger Chain, which in turn initiates a payment on the Target2 payment system in central bank money, was used. Adhara, the technology partner of Fnality, provided the orchestration layer that ensures that all the separate settlement legs of the transaction happen atomically. One of the two trails simulated transactions between Deutsche Bank London and UBS in Switzerland involving pounds and Swiss francs, which were settled using euros. [Read more at Ledger Insights]

Brazil’s central bank selects consortium to support Drex trade finance use case experiments (Chainlink)

Banco Central do Brasil has reportedly selected Banco Inter alongside Microsoft Brazil, 7COMm and Chainlink to build a trade finance solution as part of the 2nd phase of Brazil’s DREX central bank digital currency (CBDC) experimentation. The solution leverages blockchain technology and oracles to automate supply chain management and improve trade finance processes. The goal of the pilot is to demonstrate the automated settlement of agricultural commodity transactions across borders, across platforms, and via different currencies. [Read more at PR Newswire]

The Swedish retail payment infrastructure needs to be modernized (Sveriges Riksbank)

Sveriges Riksbank called for the modernization of its retail payments infrastructure and the creation of processes for secure, efficient and accessible retail payments. More specifically, the central bank argued that the infrastructure for clearing (compilation and processing of payment orders) and settlement (finalization) of retail payments in Swedish kronor needs modernization. It presented its view of the way forward over the next five years. Interestingly, no mention was made of an e-kronor retail central bank digital currency (CBDC). [Read more at the Riksbank]

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Upcoming Speaking Engagements:

Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]

Kiffmeister’s #Fintech Daily Digest (20241107)

November 7, 2024November 7, 2024 ~ kiffmeister

Seven South Korean banks to participate in CBDC-driven pilot (Crypto.news)

South Korea‘s Financial Services Commission (FSC) has authorized seven domestic banks to participate in a pilot program testing digital financial services based on central bank digital currency (CBDC) and deposit tokens. The pilot project will offer digital vouchers via QR codes, which users can scan with their smartphones to redeem government-provided benefits digitally at registered merchants, including educational institutions, cultural centers, and welfare-related outlets. The FSC did not specify a timeline for the pilot. [Read more at the FSC]

Mastercard joins Buna, the Arab regional payment system (Mastercard)

Mastercard will join the Arab Monetary Fund’s (AMF’s) Buna cross-border real-time gross settlement (RTGS) payment platform as a direct participant. The collaboration will provide a simple, efficient and practical solution to current challenges that include high costs, long wait times and lack of transparency when moving funds into and out of the Middle East and North Africa (MENA) region. By leveraging existing infrastructure and connections, the collaboration avoids the need for major investments or adjustments from participant banks. [Read more at Mastercard]

Sponsored Content:

Upcoming Speaking Engagements:

Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]

Kiffmeister’s #Fintech Daily Digest (20241105)

November 5, 2024November 5, 2024 ~ kiffmeister

Crypto firms launch Paxos stablecoin-based global network (Paxos)

A consortium of fintech and crypto-asset companies launched the Global Dollar Network based on the U.S. dollar-pegged USDG stablecoin issued out of Singapore by Paxos. Paxos claims that USDG is “substantively compliant with the upcoming Monetary Authority of Singapore (MAS) stablecoin framework. Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos and Robinhood are the initial partners. What is unique about USDG, versus the dominant stablecoins, is that partners (financial services and blockchain firms) receive up to 100% of the revenues generated by USDG’s backing assets, and earn additional revenues for minting and acceptance. [Read more at Paxos]

Eurosystem and 5 Asian central banks advance Project Nexus implementation (BIS)

The five Project Nexus central bank partners (India, Malaysia, the Philippines, Singapore, and Thailand) established the Singapore-based Nexus Scheme Organization (NSO) managing entity, which will manage the project in its live implementation stages. Nexus was launched in 2021 by the Bank for International Settlements (BIS) Innovation Hub to enhance cross-border payments by connecting multiple domestic instant payment systems (IPS) globally. The European Central Bank (ECB) also joined Nexus as a special observer as part of exploratory work on linking its TARGET Instant Payment Settlement with other fast payment systems. While the BIS will not own or operate the NSO, it will continue its support by playing a technical advisory role. [Read more at the BIS]

MAS announces plans to support asset tokenization commercialization (MAS)

The Monetary Authority of Singapore (MAS) outlined its vision for how to take the next step from asset tokenization exploration to commercialization. Project Guardian, launched in 2022, convened over 40 financial institutions, industry associations and international policymakers across seven jurisdictions to carry out industry trials on the use of asset tokenization in capital markets. More than 15 industry trials were conducted in six currencies across multiple financial products. In order to achieve scale the MAS is creating the Guardian Wholesale Network Industry Group with the aim of forming commercial networks to deepen market liquidity, developing an ecosystem of market infrastructures, fostering industry frameworks, and enabling access to common settlement facility. [Read more at the MAS]

Security reference model for digital currency hardware wallet (ISO)

The International Organization for Standardization (ISO) announced that a security reference model for digital currency hardware wallets and requirements and recommendations regarding the security of digital currency hardware wallets has now advanced to the internal review phase. It includes security requirements for data management, communication, and access control requirements between different modules of the hardware wallets; security requirements for the running environment of the software operating in the hardware wallet; and security policies for service operation of the hardware wallet. The non-security aspects of digital currency hardware wallets, such as business processes and financial transactions are out of scope. [Unfortunately the draft isn’t available for download]

Refining the definition of the unbanked (SSRN)

A paper co-written by Federal Reserve Board (FRB) staffer Elena Falcettoni proposes to differentiate individuals without a bank account but would like to have one (the “unbanked”) from individuals that do not have a bank account and are not interested in having one (the “out of banking population”). While the unbanked mostly cite financial and past credit or banking history problems as reasons for not having a bank account, the out of banking population cites a growing mistrust toward the traditional banking system. The paper finds that the latter comprises over 70% of U.S. households without a bank account, and concludes that to bank the unbanked (the other 30%) policy interventions should be aimed at encouraging financial institutions to offer more accessible and affordable services. [Read more at SSRN]

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Upcoming Speaking Engagements:

Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]

Kiffmeister’s #Fintech Daily Digest (20241031)

October 31, 2024October 31, 2024 ~ kiffmeister

BIS hands over mBridge CBDC payment system (Ledger Insights)

The Bank for International Settlements (BIS) has handed the mBridge central bank digital currency (CBDC) based cross-border payments platform over to the central banks of China, Hong Kong, Saudi Arabia, Thailand and the United Arab Emirates (UAE). According to BIS General Manager Agustín Carstens, this was not because of “political considerations” but because after the project’s four years it is “at a level where the partners can carry it on by themselves”. This has happened already with other projects such as the Swiss National Bank’s Project Helvetia. By “political considerations”, Mr. Carstens was referring to stories that during discussions among central bankers and finance chiefs at the October 2024 International Monetary Fund and World Bank Annual Meetings, concerns were expressed about the fact that China is supplying the platform’s key technological backbone, and that China and the UAE are BRICS members. (In that regard it is notable that the U.S. Federal Reserve has not joined the project.) [Read more at the BIS]

ECB looking for innovation partnerships for the digital euro (ECB)

The European Central Bank (ECB) has established a digital euro innovation platform to collaborate with stakeholders. The main goal is to (i) demonstrate how conditional payments could be implemented on a technical level, (ii) provide the opportunity for participants to interact with simulated digital euro interfaces, and (iii) explore additional use cases, ideas and visions that stakeholders may have for the digital euro. The ECB is encouraging all interested stakeholders to contribute, and it will carefully consider all applications before making selections in early January 2025. Selected “visionaries” will be invited to half-day workshops to present their idea to the ECB, and will be asked to provide a summarizing outcome report. [Read more at the ECB]

Finding the “just right” level of decentralization (NIM)

The Nuremberg Institute for Market Decisions (NIM) published an article on the challenges of finding the “just right” level of decentralization in the digital platform economy. Blockchain platforms rely on a predefined, algorithmically encoded and publicly visible protocol that enables a network of peers to maintain the platform jointly, rather one central party consolidating all decision authority and control over the platform. However, complete decentralization is no panacea for reducing the power of intermediaries. It comprises several trade-offs, and many challenges are as yet unsolved. Although promising solutions are looming on the horizon, the article proposes that reintroducing some level of centralization might be a more reliable and available solution in the short run. [Read more at NIM]

Upcoming Speaking Engagements:

Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]

Kiffmeister’s #Fintech Daily Digest (20241029)

October 29, 2024October 29, 2024 ~ kiffmeister

Digital euro sparks sovereignty battle between EU governments and ECB (Politico)

According to Politico, a battle is brewing between the European Central Bank (ECB) and several European Union national governments over the holding limits that would be applied to a potential digital euro. Under the European Parliament’s draft digital euro regulation, the ECB would decide on holding limits, consistent with a vision of the digital euro as an expression of European monetary sovereignty. However, at least nine countries, including Germany, France and the Netherlands, are reportedly concerned that allowing the ECB to set the limit would leave the institution with exclusive influence over a new tool that could have outsized effects on banking stability. [Read more at Politico]

BIS debates ending the mBridge cross-border payments project (Bloomberg)

According to Bloomberg, the Bank for International Settlements (BIS) is debating whether to shut down its wholesale central bank digital currency (CBDC) based mBridge cross-border payment project. The platform initially was developed by the central banks of China, Thailand, Hong Kong and the United Arab Emirates under the BIS’s Innovation Hub, and recently reached the minimum viable product (MVP) stage. The U.S. Federal Reserve has not joined the project. During discussions among central bankers and finance chiefs at the October 2024 International Monetary Fund and World Bank Annual Meetings, concerns were reportedly expressed about the fact that China is supplying the platform’s key technological backbone. [Read more at Bloomberg]

The consumer value proposition for a hypothetical digital Canadian dollar (BOC)

The Bank of Canada (BOC) published a paper that explores the consumer value proposition of a hypothetical digital Canadian dollar. It employs a methodology that allows participants to interact with research prototypes of increasing complexity to reveal their preferences, constraints, and adoption influences. Qualitative insights are corroborated using quantitative, large-population surveys and contrasted with results from a Bank of Canada open online public survey. The results show that most participants would support the issuance of a digital dollar, but broad early adoption is unlikely given that available payment methods meet most user needs. Important considerations for appeal and adoption include universal merchant acceptance, low costs, easy access, simplified online payments, shared payment features, budgeting tools, and customizable security and privacy settings. Participants cited these features far more often than offline functionality and the ability to make anonymous payments. The results also show that certain groups may strongly resist a digital dollar if they conflate its launch with the end of cash issuance. [Read more at the BOC]

Upcoming Speaking Engagements:

Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]

Kiffmeister’s #Fintech Daily Digest (20241028)

October 28, 2024October 28, 2024 ~ kiffmeister

HKMA partners with Banco Central do Brasil and Bank of Thailand on tokenization initiatives (HKMA)

The Hong Kong Monetary Authority (HKMA) has established new cross-border partnerships with Banco Central do Brasil (BCB) and the Bank of Thailand (BOT) to explore cross-border payment-versus-payment (PvP) and delivery-versus-payment (DvP) settlement use cases in areas such as trade finance payments and carbon credits. In the HKMA-BCB case the HKMA will link its Project Ensemble central bank digital currency (CBDC) sandbox to the BCB Drex CBDC pilot platform. In the HKMA-BOT case, the HKMA will link the Ensemble sandbox to the BOT’s Project San experimental tokenization platform, and test linking the two platforms with distributed ledger technology (DLT) based financial market infrastructures (FMIs). The BOT’s Project San, an internal initiative started in June 2024, aims to build and test a prototype for the tokenisation ecosystem. This includes a wholesale settlement engine, EVM-compatible ledgers supporting tokenised private money and assets, and interoperability mechanisms. [Read more at the HKMA here (on the HKMA-BCB part) and here (HKMA-BOT)]

HKMA provides updates on its fintech-related initiatives (HKMA)

Along with the aforementioned Project Ensemble collaborations, the HKMA provided updates on its other initiatives to spearhead fintech development in Hong Kong. The HKMA will collaborate with other members of the Linux Foundation Decentralized Trust on interoperability aspects of DLT-based FMIs in the Ensemble Sandbox. Also, the HKMA has completed the initial phase of six tokenization use cases across four main themes under Project Ensemble and will publish a report detailing the results of the experimentation in 2025. The HKMA is working closely with the People’s Bank of China to establish a cross-boundary linkage between Hong Kong’s Faster Payment System (FPS) and the Mainland’s Internet Banking Payment System (IBPS). This linkage will support 24/7, instant, small-value, cross-boundary remittances using account proxies like mobile numbers. A pilot launch is expected to be around mid-2025 tentatively. [Read more about these and other initiatives at the HKMA]

Project Mandala proves viability of upfront compliance for digital asset transactions (Ledger Insights)

The Bank for International Settlements Innovation Hub (BISIH) has completed the Project Mandala proof of concept (PoC), which aims to bring efficiencies to anti money laundering (AML), sanctions and capital flow management (CFM) compliance. It uses a compliance by design approach to streamline cross-border compliance processes for financial institutions and explores real-time policy and regulatory compliance monitoring for central banks and other regulators. The project preserves the existing regulatory framework whereby it encodes existing jurisdiction-specific regulatory requirements measures into the system, and maintains the current model, in which financial institutions are responsible for interpreting and applying official regulatory measures. [Read more at the BISIH]

Upcoming Speaking Engagements:

Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]

Kiffmeister’s #Fintech Daily Digest (20241025)

October 25, 2024October 25, 2024 ~ kiffmeister

Russian banks baulk at digital ruble implementation costs (Bitcoin.com)

Russian banks, particularly smaller ones, are reportedly unhappy about the high cost (between 120 million and 200 million rubles) of integrating with the central bank’s digital ruble platform. The Bank of Russia has mandated that the 13 systemically important banks must offer clients the ability to use the digital ruble starting July 1, 2025. Universal banks (around 208) are expected to follow suit on July 1, 2026, while banks with basic licenses will begin on July 1, 2027. Despite these reservations expressed by some banks, the Bank of Russia is proceeding with the established timeframes and has vowed to fine institutions that fail to abide by the set deadlines. [Read more on Kommersant]

Improving cross-border payments by interlinking fast payment systems (ECB)

The European Central Bank (ECB) will launch initiatives to help improve cross-border payments within the European Union (EU) and beyond, building on the Eurosystem’s TARGET Instant Payment Settlement (TIPS) service. This will include allowing instant payments originating in one TIPS currency to be settled in another TIPS currency and in central bank money, starting with euro, Swedish kronor and Danish krone. The project will also explore linking TIPS with other fast payment systems, include developing links with partners outside the EU. [Read more at the ECB]

Tokenized money-market funds seek to take on Tether (Bloomberg)

BlackRock is pushing to have its money-market digital tokens more widely used as collateral for crypto derivatives trades, as Wall Street firms push deeper into digital asset markets. WisdomTree is also in conversations with prime brokerages, trading desks and crypto exchanges about the use of its fund tokens as collateral. If this type of usage takes off, it could reduce the reliance on unremunerated stablecoins like Tether among crypto traders. Users of such money-market fund tokens can earn interest rates of 4% to 5%. [Read more at Bloomberg]

Upcoming Speaking Engagements:

Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]

Kiffmeister’s #Fintech Daily Digest (20241021)

October 21, 2024October 21, 2024 ~ kiffmeister

FSB urges stronger efforts to enhance cross border payments (FSB)

The Financial Stability Board (FSB) published (i) a consolidated progress report for 2024 reporting on a broad range of actions being progressed as part of the G20 Roadmap for Enhancing Cross-Border Payments; (ii) a progress report on the implementation of the Legal Entity Identifier (LEI); and (iii) an annual progress report on meeting the improved user experience targets for cross-border payments. While more than half of the planned actions set out by the G20 have been completed, the FSB’s key performance indicators which measure key aspects of the user experience in using payments services, suggest that further efforts are needed. The FSB emphasizes the importance of intensified effort and commitment from a range of stakeholders, including by domestic regulatory/oversight authorities and payments services providers. [Read more at the FSB]

Ban or tax “bitcoin” to support permanent government deficits (Minneapolis Fed)

The Federal Reserve Bank of Minneapolis published a paper that advocates for a legal prohibition or capital tax on “bitcoin” to support governments’ abilities to run permanent primary deficits. To be more accurate, the paper uses bitcoin as a metaphor for risk-free private-sector securities that are in ﬁxed supply and that are not a claim to any real resources or “useless pieces of paper”. The analysis seems to be based on the idea that risk averse consumers are willing to hold government securities and bitcoin even when the real return on these securities is very low. The virtually impenetrable analysis suggests that the existence of “bitcoin” forces the government maintain a balanced budget, which some might view as a good thing. [Read more at the Minneapolis Fed]

The distributional consequences of bitcoin (SSRN)

The European Central Bank’s (ECB’s) Ulrich Bindseil and Jürgen Schaaf published a paper that argues that, if the price of bitcoin continues to rise, there will be a redistribution of wealth to early bitcoin adopters at the expense of consumption of the rest of society, assuming that bitcoin does not increase the productive potential of the economy. In a theoretical scenario of ever-rising Bitcoin prices, this wealth shift will be a lasting legacy, with early adopters’ luxury consumption financed by the diminished consumption of those who missed out. Moreover, the corresponding impoverishment of the rest of society, will endanger cohesion, stability and ultimately democracy. [Read More at SSRN]

Upcoming Speaking Engagements:

Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]

Kiffmeister’s #Fintech Daily Digest (20241015)

October 15, 2024October 15, 2024 ~ kiffmeister

Fast payment system interlinking and APIs to enhance cross-border payments (BIS)

The Bank for International Settlements (BIS) published two Committee on Payments and Market Infrastructures (CPMI) reports that offer key insights and recommendations on the interlinking and interoperability of payment systems to enhance cross-border payments. The first report discusses design choices and the risk implications of interlinked fast payment systems (FPSs) and the role of application programming interfaces (APIs), setting out the key decisions for governance and outlines recommendations for their oversight. The second report presents ten recommendations to promote the harmonization of APIs to enhance cross-border payments. [Read more at the BIS]

Cambodia launches cross-border QR payments with Alipay+ (The Paypers)

The National Bank of Cambodia (NBC) and Ant International have reportedly launched cross-border QR code payments. The payments will occur between NBC’s Bakong payment system and Ant International’s Alipay+ cross-border mobile payments and digital solutions platform. This will allow users of 12 international payment apps, including Alipay, AlipayHK, Touch ‘n Go eWallet, GCash, Kakao Pay, and others, to make seamless payments to merchants in Cambodia by scanning KHQR codes. This will support payments in Cambodian riels. In September 2024, the NBC and Bank Negara Malaysia launched a similar scheme for payments between Cambodia and Malaysia. [Read more at The Paypers]

Paxos debuts new stablecoin payment platform with Stripe (Cointelegraph)

Paxos launched a new stablecoin payments platform targeting payment service providers (PSP) and Fintechs that want to enable stablecoin payments. Global payment processing company Stripe will be the first PSP to integrate the new platform into its system. The infrastructure will be featured on Stripe’s Pay with Crypto product, which allows users to accept stablecoin payments settling in fiat currencies. Once a stablecoin payment is received via Paxos, users can choose whether to immediately convert to fiat currency and settle in local currency, or pay out stablecoin balances directly to merchants. Merchants will have the ability to issue refunds by instantly converting fiat into the stablecoin originally used, then sending directly to the wallet used in the initial payment. [Read more at Paxos]

Upcoming Speaking Engagements:

Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]