Kiffmeister’s #Fintech Daily Digest (20250819)

August 19, 2025August 19, 2025 ~ kiffmeister

Wyoming State Debuts U.S. Dollar Stablecoin on Seven Blockchains (Coindesk)

The Wyoming Stable Token Commission has launched the first fully-reserved, U.S. state-backed stablecoin, with reserves held in U.S. dollars and Treasuries. The Frontier Stable Token’s (FRNT’s) stability is fortified with a legislatively-mandated remit to achieve 2% over-collateralization. It is initially available on seven blockchains, including Ethereum, Solana, and Polygon, and will soon be accessible on major platforms such as Kraken and Rain. The Commission has partnered with LayerZero for token issuance, Fireblocks for blockchain infrastructure, Franklin Advisers for reserves management, Inca Digital for open-source intelligence and The Network Firm for audits and monthly attestations. FRNT will be made available for purchase on the Solana blockchain through Wyoming-domiciled digital asset exchange Kraken, as well as Rain’s Visa-integrated card platform on the Avalanche blockchain. [Read more at the Commission]

Status of Digital Tenge Implementation in Public Spending (NBK)

[July 10, 2025] National Bank of Kazakhstan (NBK) Chief Digital Officer Binur Zhalenov posted an update on progress of the digital tenge implementation for public finance purposes. More than ten public spending use cases already tested — including Digital VAT refunds, targeted funding for road repairs, National Fund-financed projects, and cross-border payment scenarios. Integration models with government information systems are being developed — paving the way for full-scale operations by the end of 2025. New pilots include the “Safe Deal” for real estate and vehicles, voucher scheme for state support measures, lending to the agro-industrial complex, construction projects, and procurement of high-value goods (medical and IT equipment). [Read more on LinkedIn]

Security Features and Risks in Digital Asset Wallets (Electronics)

Electronics published a paper that reviews and compares ID wallets, payment wallets, and cryptocurrency wallets by examining their core functions, technologies, and evolution. It highlights common and unique security threats for each type—such as credential leakage for ID wallets, tokenization needs for payment wallets, and key loss for crypto wallets—while analyzing how innovations like multi-factor authentication and distributed key management attempt to address these risks. The paper emphasizes that as digital identity and asset management systems merge into universal “super-app” wallets, new security vulnerabilities and design challenges arise, necessitating holistic solutions that span traditional banking, digital identity, and cryptocurrency domains. The paper aims to provide a foundation for understanding and improving the security of next-generation digital wallets as technologies and use cases continue to converge. [Read more at Electronics]

Upcoming Speaking Engagements:

The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]

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 (20240731)

July 31, 2024July 31, 2024 ~ kiffmeister

Russia to allow crypto payments in international trade (Reuters)

Russia’s State Duma passed a bill that will allow businesses to use crypto-assets in international trade, as part of efforts to skirt Western sanctions imposed after Russia’s invasion of Ukraine, starting on September 1, 2024. The final step requires the approval of the Federation Council and the President’s signature. Under the new law, the Bank of Russia will create an experimental infrastructure for cryptocurrency payments, details of which have yet to be announced. [Read more at RIA Novosti]

Birri Gubba Nation to launch a sovereign digital currency (MetaMUI)

The Birri Gubba Nation, an Australian indigenous sovereign nation, has signed a memorandum of understanding (MOU) with Sovereign Wallet, to establish a comprehensive national digital identity system to serve as account addresses for sovereign digital currency. Sovereign Wallet is a blockchain technology company that developed the MetaMUI CBDC Cloud Service for creating digital currencies, which the Yidinji Nation, another Australian indigenous nation, used to launch its Yidindji Dollar (SYD) in 2022. The Birri Gubba Nation national identity and digital currency systems are set to go live in September 2024. If it is structured like the Yidindji Dollar, it will be pegged to the Australian dollar (AUD), although the mechanism hasn’t been revealed. [Read more on CoinDesk]

I wrote about Yidindji’s SYD in 2022 in the Global Financial Intelligencer, arguing that it met the criteria for a central bank digital currency (CBDC) label. According to the Bank for International Settlements (BIS) a CBDC is a digital payment instrument, denominated in the jurisdiction’s unit of account, that is issued by and a direct liability of the jurisdiction’s central bank or monetary authority, and the SYD seems to check all the boxes. The digital currency is issued and backed by the Yidindji Reserve Bank (YRB) established by the YRB Act of 2016, which was revised in 2022 to give the YRB the ability to issue currency. The Yidindji Currency Acts of 2014 and 2022, require Yidindji citizens to settle their obligations in SYD, so it is arguably a unit of account. What do others think?

Project Pyxtrial: monitoring the backing of stablecoins (BIS)

The BIS and the Bank of England have have developed a prototype data analytics pipeline which includes data collection, storage and analysis, that can provide supervisors with near real-time data about stablecoins’ liabilities and their backing assets. Pyxtrial can provide insight into whether the backing assets exceed their liabilities at all times, and enhance the efficiency and responsiveness of the monitoring process, which helps supervisors to respond faster to potential risks. [Read more at the BIS]

CBDCs in Latin America and the Caribbean (LATAM Journal of Central Banking)

The Latin American (LATAM) Journal of Central Banking published a paper on central bank digital currencies (CBDCs) in Latin America and the Caribbean, by staff from the Bank for International Settlements (BIS), Central Bank of Colombia, and American Enterprise Institute (AEI). The paper draws heavily from the Committee on Payments and Infrastructures (CPMI) annual survey of central banks regarding interest in, and motivations for, exploring CBDC in their jurisdiction. [Read more at the LATAM Journal of Central Banking]

Upcoming Speaking Engagements:

Intertribal Foreign Affairs Council Forum 2024, Yidindji, August 30-31. The conference will bring together indigenous nations to showcase the excellence of their governance practices and generate new ideas for the future. I’ll be on a panel focused on the future of money and indigenous financial inclusion. [Find out more and register here]
CBDC Conference, Istanbul, September 10-12. The conference will offer representatives of central banks, commercial banks, technology providers, policy makers and academics the perfect platform to learn about the latest CBDC developments, exchange ideas with experts and peers. [Find out more and register here][Central bank delegates may be eligible for free registration (email registration@cbdc-conference.com to find out more)]
Digital Currency Conference, London, September 23-24. The conference will bring together policymakers, regulators, and technology and innovation experts to network and discuss all aspects of digital currencies. And enter the KiffmeisterDCC code at registration to get a 20% discount! [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 (20231109)*

November 9, 2023November 9, 2023 ~ kiffmeister

Large fiat-backed stablecoins depegged 600+ times in 2023

There have been 609 depegs among large cap fiat-backed stablecoins so far this year, according to Moody’s Analytics. Depegs are defined by the price of stablecoins fluctuating by more than three percent in a day against their fiat currency peg. Among a total of 1,914 depegs up to mid-September 2023, large cap stablecoins represented 609 depegs. By comparison, in 2022, there were 707 large cap depegs (including the top five stablecoins by market cap, including Ethereum blockchain’s DAI) and a total of 2,847 depegs. [Read more at Moody’s Analytics]

Ripple unveils enhanced cross-border payments solution

Ripple unveiled an enhanced version of its blockchain-based cross-border payments solution, Ripple Payments, formerly known as RippleNet. Among several key updates, the solution now provides nearly 100% global payout coverage through single onboarding, giving businesses access to over 70 crypto and traditional payout markets. With over 30 licenses, including a MAS Major Payments Institution license and Money Transmitter Licenses (MTLs) across the United States, Ripple is expanding its reach to include SMEs. [Fintech News Singapore]

European digital identity wallet in banking: a look at the law

The legislation of the European Digital Identity Wallet is finalized. The wallet can be used to store credentials like government IDs, drivers licenses, diplomas and insurance policies in a mobile app. It can, for example, be used as identification when opening bank accounts, or use any government service anywhere in Europe. It can also be used to log in and sign contracts, or present selected attributes like age threshold compliance. The wallet is planned to be available in 2025 or 2026. [Read more at the European Commission]

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 (20231010)*

October 10, 2023October 10, 2023 ~ kiffmeister

EU Digital Identity Wallet Pilot implementation

The European Commission will provide a prototype of a EU Digital Identity Wallet (EUDI) as set out in the proposed European Digital Identity Regulation. The proposal aims to enable European citizens and businesses to share identity data in a secure and convenient way. The prototype wallet serves to trial and inform the specifications developed by Member States, as the common EU Toolbox to implement the EUDI. It will be tested in a number of large scale pilots that cover different sectors and will be made available for re-use by contributors as open source. Meanwhile the Brownstone Institute points to some of the EUDI’s significant ethical and surveillance concerns that should be extensively discussed and debated by the public. [Read more at the European Commission]

ESMA publishes report on the DLT Pilot regime

The European Securities and Markets Authority (ESMA) published its Report on the distributed ledger technology (DLT) pilot regime. It provides guidance on certain technical elements and makes recommendations on compensatory measures on supervisory data to ensure a consistent application by DLT market infrastructures from the start of the regime. The report presents ESMA’s proposed way forward and concludes that there is no need to amend the regulatory technical standards (RTSs) on transparency and data reporting requirements before the DLT pilot starts applying in March 2023. [Read more at ESMA]

Kiffmeister’s central bank digital currency monthly monitor

Kiffmeister’s #Fintech Daily Digest (20230802)*

August 2, 2023August 2, 2023 ~ kiffmeister

Kenya suspends crypto project Worldcoin over safety concerns

Kenya’s interior ministry has suspended the local activities of the Worldcoin crypto-asset project while government agencies assess potential risks to public safety. The project launched on July 24, 2023. It requires users to give their iris scans in exchange for a digital ID, and in some countries users also get free crypto-assets as part of plans to create a new identity and financial network. France and Germany have also raised concerns around the legality of the biometric data collection and storage. [Read more at Reuters]

Global fintech funding falls to six-year low

According to CB Insights, global fintech funding hit its lowest level since 2017, totaling $7.8 billion in Q2 2023 (-48% from Q1 2023) through 845 rounds (-22%). The payments segment was hardest hit (-75% in funding terms), followed by digital lending (-44%). At the other end of the spectrum, fintech companies with artificial intelligence (AI)-led models (e.g., focused on digital lending, insurtech, and investment and capital market technology) saw strong funding growth according to data from S&P Global Market Intelligence. [Read more at CB Insights and S&P Global Market Intelligence]

Global fintech funding falls to $52.4 billion in H1 2023

According to the latest KPMG Pulse of Fintech report H1 2023 was difficult for the fintech market globally, with both total funding and the number of deals dropping. There was increasing focus on operational efficiency, sustainable cash flows, and profitability. Crypto funding declined in the wake of sector challenges, combined with increasing focus on broader blockchain solutions. However, there is rapidly growing interest in potential use cases for generative AI, particularly in cybersecurity, insurtech, and wealthtech. [Read more at KPMG]

Kiffmeister’s central bank digital currency monthly monitor

Kiffmeister’s #Fintech Daily Digest (20230617)*

June 17, 2023June 17, 2023 ~ kiffmeister

EU’s leaked digital euro bill outlaws interest, large holdings, programmability

A leaked draft of the proposed Digital Euro Bill, to be proposed by the European Commission on June 28, 2023 will ban remuneration, surcharges and programmability, and make offline payments available from the outset. The regulation aims to ensure a level of privacy equal to taking cash from an ATM during offline, face-to-face interactions, and neither the European Central Bank (ECB) nor the payment service providers will have access to personal transaction data. The draft law also allows the ECB to set holding limits to limit disintermediation risk. Much of this is rather consistent with a slide deck published by the ECB on June 15. [Read more at CoinDesk and the ECB]

Binance under investigation in France for alleged money laundering

The Paris prosecutor’s office is reportedly investigating Binance for allegedly offering its digital asset services illegally. Furthermore, authorities have accused the exchange of engaging in acts of aggravated money laundering, which include competing with investment operations, concealing funds, and converting illicit proceeds. According to the Binance spokesperson, this was rumor was conflated from a routine on-site visit which is a regulatory requirement for financial institutions in France. [Read more at Inside Bitcoins]

Binance to exit the Netherlands after failing to obtain regulatory approval

Binance said it will leave the Netherlands after the company’s application to register under the Dutch crypto authorization regime was rejected. Under the current regulatory regime, Binance can only get approval to operate in an European Union (EU) country by registering under its money laundering prevention rules. The firm has so far received such approvals in France, Italy, Spain, Poland, Sweden and Lithuania. This may change once the EU’s Markets in Crypto Assets (MiCA) regulation comes into force at the end of June 2023. [Read more at CNBC]

Binance and where there’s smoke there’s fire?

I’m beginning to lose track of all the directions Binance is coming under fire from, but here’s more on recent events:

From Amy Castor and David Gerard here is a two part summary of recent skirmishes between Binance and the US Securities and Exchange Commission: SEC sues Binance, part 1: the complaint, Binance US asset freeze, Tai Chi plan, sock puppet CEOs, weird cash flows and SEC sues Binance, part 2: asset freeze, securities, Coley and Brooks, Gensler’s alleged COI.
In the wake of the SEC lawsuit against Binance for unregistered securities operations, on June 6, 2023, the SEC filed a motion seeking an emergency temporary restraining order and preliminary injunction (“freeze”) against Binance and its BAM affiliates. However, on June 16 the counterparties announced a deal to ensure that only Binance.US employees can access customer funds in the short term. [Read more at CoinDesk].

And here are some random things I picked up this week, thanks to John Ho and Norbert Gehrke:

The Organization for Economic Co-operation and Development (OECD) Council has adopted a new set of recommendations on how digital identity should be governed on the proposal of the Public Governance Committee (PGC). [Read more at the OECD and John’s summary here]
In January 2022, the Asian Development Bank (ADB) launched a project to make cross-border securities transactions more efficient and secure through the use of blockchain technology. Project Tridecagon proved that the deployment of DLT/BC solutions for the settlement of cross-border securities transactions is possible, particularly in a well-governed and functionally well-defined environment. [Read more at the ADB and Norbert’s summary here]
The ADB published a paper that outlines why regulators urgently to adapt and adopt flexible policies that improve oversight of emerging products and providers. It sketches out the fintech landscape and explains how economies can encourage innovation while increasing international cooperation to insulate against the growing financial, operational, and cybersecurity risks the new technology brings. [Read more at the ADB and Norbert’s summary here]

Upcoming conferences, webinars and speaking engagements:

I’ll be participating in Currency Research’s in-person Central Bank Payments Conference and Global Payments Summit in Cape Town from June 26 to 30. [Register here and here respectively]
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.

Kiffmeister’s #Fintech Daily Digest (20230609)*

June 9, 2023June 9, 2023 ~ kiffmeister

Privacy-preserving post-quantum credentials for digital payments

The Bank of Canada published a paper that proposes a pseudonymous credential scheme for use in payment systems to protect users from fraud and abuse while retaining privacy in individual transactions. The scheme is privacy-preserving, efficient for practical applications, and hardened against quantum computing attacks. A practical and interactive credential mechanism was constructed, in which users are issued pseudonymous credentials against their personally identifiable information that can be used to register with financial service providers without revealing personal information. The protocol is shown to be secure and free of information leakage, preserving the user’s privacy regardless of the number of registrations. Comparison reveals that the scheme is more efficient than equivalent, state-of-the-art post-quantum schemes. [Read more at the Bank of Canada]

ECCB pleased with progress of digital currency initiative

Eastern Caribbean Central Bank (ECCB) Governor Timothy Antoine reportedly says he is pleased with the performance of its DCash central bank digital currency (CBDC) pilot aimed at improving financial inclusion and modernizing payment systems. He said that partnerships with licensed financial institutions and regional businesses and organizations have enabled DCash to expand its reach, enhance platform features, and ensure regional impact. [Read more at the Trinidad Daily Express]

Reimagining Digital ID

The World Economic Forum (WEF) published a paper on decentralized ID, that could offer a secure way of managing personal data without depending on intermediaries. While decentralized ID presents opportunities, it also poses risks and faces challenges. Without fit-for-purpose policy, regulation and technology, the potential for these systems to have a socially beneficial impact will be limited. The report provides tools, frameworks and recommendations for government officials, regulators and executives seeking to engage with decentralized ID. [Read more at the WEF]

Upcoming conferences, webinars and speaking engagements:

I’ll be participating in Currency Research’s in-person Central Bank Payments Conference and Global Payments Summit in Cape Town from June 26 to 30. [Register here and here respectively]
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

Kiffmeister’s #Fintech Daily Digest (09/03/2021)

September 3, 2021 ~ kiffmeister

To get these daily updates sent to your inbox, please email me at kiffmeister@protonmail.com. Also, for those interested in intra-day updates and news that didn’t make the Daily Digest cut, please check out my Diigo fintech bookmarks: https://www.diigo.com/user/kiffmeister/Fintech.

Singapore Tells Binance to Halt Service in Latest Crypto Hit

“Binance must stop offering services regulated in Singapore after a potential breach of local payment rules, adding to a mounting list of jurisdictions scrutinizing the world’s largest cryptocurrency exchange. The Monetary Authority of Singapore reportedly said Binance may be in breach of the Payments Services Act for providing payment services to, and soliciting business from Singapore residents without an appropriate license.”

7 Korean banks go live with blockchain decentralized identity service

“Korea’s BankID, a decentralized identity (DID) solution called MyInfo, went live on August 27 with seven banks. The solution was a joint development between the Korea Financial Telecommunications and Clearings Institute (KFTC) and Raon White Hat, a subsidiary of Raon Secure, the developer of the OmniOne blockchain… Users create a digital identity with any of the banks by providing the usual sort of documents. The details of the digital identity that’s created are securely stored on the user’s smartphone. The customer can use the DID for bank logins and if the person wants to make an application at a different bank, they can share selected details from MyInfo with the other bank. The wallet stores details such as mobile phone number, address and e-mail. It also includes a bio identity, which may involve facial recognition.”