The Central Bank of the United Arab Emirates (CBUAE) executed the first direct payment to China using a central bank digital currency (CBDC) via the Jisr platform, established with the participation of a group of Emirati and Chinese banks. In parallel, the instant payment systems of the UAE and China were interconnected, allowing students, residents and firms in both countries to transfer funds securely and instantly across borders, aiming to reduce costs, enhance transaction reliability, and strengthen commercial ties. Also, the two countries’ central banks signed a memorandum of understanding to deepen cooperation in cross-border payments and financial infrastructure development. [Source: CBUAE]
The European Central Bank (ECB) will advance the integration of the Eurosystem’s instant-payments platform (TARGET Instant Payment Settlement (TIPS)) with the Indian Unified Payments Interface (UPI) and the Nexus Global Payments scheme. India’s UPI is an instant payments system developed by the National Payments Corporation of India. Nexus is a multilateral payments scheme that will initially connect the fast payment systems of Bank Negara Malaysia, Bangko Sentral ng Pilipinas, the Monetary Authority of Singapore, the Bank of Thailand and the Reserve Bank of India. The original concept was developed by the Bank for International Settlements. The decision is part of the Eurosystem’s overall efforts to make it easier for businesses and consumers in Europe to send and receive payments to and from other countries, including remittances. [Source: ECB]
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.
The IMF published a Fintech Note that examines how central banks are exploring the use of wholesale central bank digital currency (CBDC) to modernize wholesale payment and settlement systems. The note critically analyzes the trade-offs inherent in various implementation architectures, noting that while “common ledger” models (where wholesale CBDC and tokenized assets are issued and exchanged on the same ledger) can facilitate atomic settlement and programmability, they introduce contagion risks and governance challenges. The note also warns that the coexistence of wholesale CBDC and traditional reserves could drive liquidity fragmentation and complicate monetary policy operations, suggesting that central banks rigorously evaluate whether these risks outweigh the utility of alternative solutions. One alternative, RTGS links, uses technical bridges or synchronization operators to coordinate the settlement of tokenized asset transactions with payment on existing central bank real-time gross settlement (RTGS) systems. The note also discusses private-sector common ledger solutions that use as payment instruments privately-issued tokenized money like stablecoins and tokenized deposits, including stablecoins backed by central bank money (e.g., Bank of England “omnibus” accounts). [Source: IMF]
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.
In an interview with the Financial Times (FT) the chair of the Basel Committee on Banking Supervision, Erik Thedéen, has called for a reworking of global crypto rules for banks after the US and UK refused to adopt requirements imposing a 1,250% risk weighting on stablecoins and other digital assets that used permissionless blockchains. Thedéen noted that the sharp rise in stablecoin usage and differing regulatory stances have made it difficult to achieve consensus, prompting calls for a new approach. While the current Basel rules, originally focused on assets like bitcoin, would subject many stablecoins to the harshest capital requirements, major regulators such as the US Federal Reserve and the Bank of England have decided not to implement them in full. [Source: FT]
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.
I may not be posting any Kiffmeister #Fintech Digests this week as I’m attending and speaking at the Bank of Ghana’s Cedi@60 Conference in Accra. Normally conferences don’t slow me down, but even in downtown Accra, 3G and WiFi connectivity are very spotty. So it’s near impossible to scan for new developments and post about them!
This has led to some policy rethinking on my part. When I think about the need for offline digital payments, except for catastrophe backup, I assumed use case rationales were weak for urban areas. I’ll be rethinking that assumption now!
Meanwhile, I’ll keep monitoring for developments and post them if and when possible. In any case, rest assured that nothing will slip through the cracks. It may just be reported on a delayed basis.
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.
The IMF published a Fintech Note that examines the potential financial stability implications of introducing retail central bank digital currencies (CBDCs). The paper identifies six transmission channels through which CBDCs could affect financial stability: liability and asset channels (affecting bank funding structures and balance sheets), fee income channel (reducing bank revenues), run-risk channel (potentially facilitating bank runs), information channel (affecting data flows on borrowers), and payment system resilience channel (impacting competition and operational resilience). While acknowledging theoretical ambiguities, the paper reviews quantitative studies suggesting that under moderate adoption scenarios (approximately 10% of deposits), CBDCs would likely have manageable effects on bank profitability and financial stability, particularly in systems characterized by low competition, diverse funding sources, and limited deposit reliance. The magnitude of impacts depends critically on CBDC adoption rates, country-specific characteristics, and design features such as remuneration rates and holding limits. And in any case, quantity restrictions, tiered remuneration, and access parameters, combined with traditional prudential policies, can effectively mitigate potential financial stability risks. [Source: IMF]
I found it surprising that the paper didn’t include in its assessment two papers that under certain conditions CBDC can actually expand bank lending and deposits when its interest rate falls within an intermediate range. A 2023 Journal of Political Economy article written by several Bank of Canada staffers found that banks with market power typically restrict deposit supply to keep rates low, but a CBDC provides an outside option that sets a floor on deposit rates, forcing banks to supply more deposits. In their calibration to the US economy, a CBDC increases bank lending when its rate is between 0.30% and 1.49% (with the average 3-month T-bill rate at 0.90% during the calibration period), with maximum increases of 1.57% in lending and 0.19% in output at a CBDC rate of 0.98%. However, if the CBDC rate exceeds this range (above 1.49%), disintermediation occurs as banks must raise lending rates to break even, reducing loan demand. The paper concludes there is no single “optimal” CBDC rate but rather a range that promotes intermediation, with the effectiveness depending on the degree of bank market power rather than CBDC usage per se.
And a 2025 National Bureau of Economic Research (NBER) paper written by several San Francisco Fed staffers found that the welfare impact of CBDC introduction follows an inverted U-shape with respect to the interest rate paid on CBDC: rates that are too low fail to curtail bank deposit market power significantly, while rates that are too high cause excessive bank disintermediation, reducing credit supply and output. For their baseline U.S. calibration with a 2% policy rate, the optimal CBDC rate is approximately 0.8% annually, yielding welfare gains of 27 basis points of consumption. More generally, across economies with different steady-state policy rates, they derive a simple rule of thumb for optimal CBDC remuneration: the maximum of 0% and the policy rate minus 1%. This rule captures the key insight that CBDC should pay interest to effectively compete with bank deposits (especially in high interest rate environments where bank deposit market power is greatest), but not so much as to cause harmful bank disintermediation. The welfare gains from CBDC are larger in high interest rate environments, reaching about 1% of consumption at a 6% policy rate, because CBDC more effectively curtails bank monopoly power when the deposit spread is otherwise large.
The Bermuda Monetary Authority (BMA) launched an Embedded Supervision initiative, aiming to modernize regulatory oversight for decentralized finance (DeFi) by embedding supervisory requirements directly within financial infrastructure. Through its Innovation Hub, the BMA is collaborating with technology partners to create real-time, verifiable, and privacy-preserving regulatory frameworks that allow for continuous assurance, rather than relying on retrospective reporting. The initiative’s pilot project, involving Chainlink Labs and other industry players, explores expressing policy logic and compliance conditions directly in blockchain infrastructure, providing regulators with real-time data and reducing the compliance burden. [Source: BMA]
Upcoming Speaking Engagements:
The Cedi@60 Anniversary Currency Conference (Accra, Ghana, November 17-20) hosted by the Bank of Ghana, in partnership with Currency Research, will celebrate 60 years of the Ghanaian Cedi, bringing together leaders from across Africa and beyond to reflect on the currency’s legacy and chart its digital future. Learn about Ghana’s eCedi pilot and the future of sovereign digital currencies in Africa, and engage with innovators driving mobile money, QR code payments, and financial inclusion across the region. [Register here and get 15% off by using the Kiffmeister15 code!]
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.
The Bank of Korea (BOK) published a working paper that examines public demand for retail central bank digital currency (CBDC) through a randomized survey experiment conducted in October 2023 with 2,879 South Korean respondents. The researchers tested five different CBDC designs varying by online/offline functionality, privacy protection features (through physical cards), and interest payment options. The key findings indicate that while CBDC design features (privacy protections and offline capabilities) do not significantly influence demand for CBDC as a payment method, offering positive interest rates does enhance its appeal as a store of value. The study finds that CBDC would primarily substitute debit card usage rather than credit cards or mobile payment apps, with overall projected usage around 28% of transactions. Trust in the central bank and willingness to adopt new technology emerge as more important determinants of CBDC demand than specific technical features. The authors recommend setting holding limits around 4-5 million KRW (EUR 3,000) to balance financial innovation against risks to bank disintermediation, as this would affect fewer than 15% of users while potentially reducing demand deposits by approximately 15-17% without such limits. [Source: BOK]
The IMF published a Fintech Note that analyzes how payment systems in fragile and conflict-affected states (FCS) face severe disruptions, from cyberattacks and infrastructure breakdowns to institutional challenges, and offers practical strategies to strengthen payment system resilience. Key lessons for policymakers include building redundancy through multisite operational architectures, leveraging distributed/cloud infrastructure and satellite networks, promoting user-centric design and digital literacy, and ensuring robust contingency planning and regulatory agility. The note finds that both cash and digital payments remain essential for continuity, with innovations in digital money, such as stablecoins and CBDC, playing emerging roles. For CBDCs, resilience depends on careful design, redundancy, offline capabilities, interoperability, and trust-building, but adoption faces operational, regulatory, and trust-related challenges unique to FCS settings. [Source: IMF]
The IMF published a Fintech Note that examines whether central bank digital currencies (CBDCs) could enhance competition in retail payment markets. The authors analyze CBDC’s potential competitive impact through four channels: pricing discipline, service quality improvements, market contestability, and financial access expansion. The analysis identifies three market scenarios with varying competitive implications. In unregulated markets dominated by private platforms, CBDC could exert substantial competitive pressure by reducing fees and lowering entry barriers, particularly if interoperability with existing systems is ensured. In markets already subject to regulatory interventions such as interchange fee caps, CBDC would likely have more moderate effects, addressing residual gaps rather than fundamentally altering market dynamics. In jurisdictions with well-functioning public fast payment systems, CBDC would offer primarily incremental benefits, mainly extending access to underserved populations. The Note emphasizes that CBDC’s actual competitive impact depends critically on design choices—including fee structures, intermediary participation rules, holding limits, and interoperability requirements—and warns that overly aggressive pricing could crowd out private providers, potentially reducing payment system resilience and diversity. [Source: IMF]
The IMF published a Fintech Note that provides comprehensive guidance for policymakers evaluating legal frameworks for central bank digital currency (CBDC) issuance, focusing primarily on retail CBDC (rCBDC) with separate analysis of wholesale CBDC (wCBDC). The authors examine how rCBDC should be legally classified as currency under public law—establishing it as a direct central bank liability with attributes including monopoly of issuance, cours forcé, legal tender status, and criminal law protections. The Note addresses central banks’ legal authority to issue rCBDC and operate payment platforms, the regulatory frameworks needed for intermediaries in two-tier distribution models, and the legal relationships between central banks, intermediaries, and users. Specific design features are analyzed, including limits on holdings and transactions, interest-bearing capabilities, programmability, and offline functionality. For wCBDC, the Note examines legal challenges related to tokenization, settlement finality, and central bank mandates to operate platforms for financial institutions. Throughout, the analysis draws on enacted laws and regulatory drafts from various jurisdictions, emphasizing that while the Note identifies legal considerations and potential approaches, it does not constitute a recommendation for jurisdictions to issue CBDCs. [Source: IMF]
The Stanford University Future of Digital Currency Initiative (FDCI) published a paper that examines the performance of dollar-based stablecoins in cross-border payments using a dataset of over 41 million transactions from Airtm, a digital dollar wallet platform, spanning May 2019 to May 2024. The analysis benchmarks transaction speed and cost against G20 Roadmap targets for enhancing cross-border payments. The findings indicate that stablecoins demonstrate substantial advantages in speed, with more than 96% of transactions settling within one hour, significantly exceeding the G20’s 75% target. Cost performance is more variable: approximately 51% of transactions meet the 3% fee target for remittances and 36.7% meet the 1% target for retail payments, though fees remain elevated for certain transaction types, particularly peer-to-peer marketplace on- and off-ramps. The study also highlights that stablecoins enable previously uneconomical use cases, with nearly half of enterprise disbursements being micropayments under $2. [Source: Stanford FDCI]
Upcoming Speaking Engagements:
The Cedi@60 Anniversary Currency Conference (Accra, Ghana, November 17-20) hosted by the Bank of Ghana, in partnership with Currency Research, will celebrate 60 years of the Ghanaian Cedi, bringing together leaders from across Africa and beyond to reflect on the currency’s legacy and chart its digital future. Learn about Ghana’s eCedi pilot and the future of sovereign digital currencies in Africa, and engage with innovators driving mobile money, QR code payments, and financial inclusion across the region. [Register here and get 15% off by using the Kiffmeister15 code!]
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.
The Monetary Authority of Singapore (MAS) successfully completed a live trial for settlement of interbank overnight lending transactions using wholesale central bank digital currency (CBDC) on the Singapore Dollar Test Network (SGD Testnet). The trial involved three commercial banks, and featured the first live issuance of Singapore dollar wholesale CBDC, with transactions recorded in the banks’ official books and regulatory filings. The SGD Testnet offers functionalities including a common settlement asset, programmability for real-time conditional payments, and multi-asset atomic settlement, helping to reduce settlement risks and market fragmentation. MAS plans to build on this pilot by conducting a future trial for the issuance and settlement of tokenized MAS Bills via CBDC, with further details to be provided in 2026. [Source: MAS]
Cambodia and Singapore have launched the first phase of a cross-border QR code payment linkage, enabling Cambodian travelers to use their Khmer Riel accounts to make fast, secure real-time payments in Singapore. Leveraging the Bakong app and participating mobile banking tools, users can scan SGQR merchant QR codes for instant transactions, eliminating the need for cash exchanges or physical cards. The initiative, unveiled at the Singapore Fintech Festival and supported by both public and private partners, aims to facilitate convenience for tourists, boost local currency usage in cross-border payments, and advance regional financial cooperation and digital innovation. This project aligns with goals to enhance trade, tourism, financial inclusion, and economic integration between the two nations. [Source: Bank of Cambodia]
The Monetary Authority of Singapore (MAS) and the Deutsche Bundesbank signed a Memorandum of Understanding to collaborate on cross-border digital asset settlement. This partnership aims to develop innovative settlement solutions to lower costs and speed up processing for cross-border transactions between Singapore and Germany. It also seeks to establish common standards for payments, foreign exchange, and securities involving tokenized assets to improve interoperability across digital asset platforms. Building on MAS’s Project Guardian, the agreement is expected to deepen financial connectivity, foster efficiency, and lay the groundwork for future digital financial infrastructure between both economies. [Source: MAS]
The International Capital Market Association (ICMA) published two key technical deliverables to the Monetary Authority of Singapore (MAS) Project Guardian Fixed Income Framework workstream. One was a guide for delivery versus payment (DvP) settlement of distributed ledger technology (DLT) based debt securities, comparing wholesale central bank digital currencies (CBDCs), tokenized bank deposits, and stablecoins. Each presents distinct opportunities and risks regarding counterparty exposure, liquidity, and operational considerations. Multiple settlement forms will coexist and require interoperability. Key challenges include legal clarity, custody arrangements, connectivity between on-chain and off-chain systems, and achieving settlement finality across different networks. The second deliverable was on lessons learned from custody arrangements for DLT-based debt securities, revealing common challenges. Key issues include determining whether tokenized securities require novel custody models or fit within traditional central securities depositories (CSDs), establishing legal clarity for investor eligibility, safeguarding private cryptographic keys, and integrating DLT platforms with existing systems. New contractual frameworks addressing roles, liabilities, and cross-border complexities are essential for scaling custody arrangements. [Source: ICMA]
Upcoming Speaking Engagements:
The Cedi@60 Anniversary Currency Conference (Accra, Ghana, November 17-20) hosted by the Bank of Ghana, in partnership with Currency Research, will celebrate 60 years of the Ghanaian Cedi, bringing together leaders from across Africa and beyond to reflect on the currency’s legacy and chart its digital future. Learn about Ghana’s eCedi pilot and the future of sovereign digital currencies in Africa, and engage with innovators driving mobile money, QR code payments, and financial inclusion across the region. [Register here and get 15% off by using the Kiffmeister15 code!]
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.
The Hong Kong Monetary Authority (HKMA) has launched EnsembleTX, marking the new phase of Project Ensemble to enable real-value transactions in tokenized deposits and digital assets within a controlled pilot environment. Building on successful sandbox experiments since August 2024, this phase allows industry participants to settle digital asset transactions using tokenized deposits, initially focusing on transactions such as money market funds and real-time liquidity management. The project, running throughout 2026, will initially use the HKD RTGS system for interbank settlement and aims to facilitate 24/7 settlement in tokenized central bank money (CeBM), further developing Hong Kong’s tokenization ecosystem. HKMA and the Securities and Futures Commission will continue collaborating to advance practical applications of tokenization. [Source: HKMA]
The Bank of England (BOE), Monetary Authority of Singapore (MAS), and Bank of Thailand (BOT) announced a collaborative project to examine the technical and policy aspects of synchronized settlement for foreign exchange (FX) transactions across borders. Building on insights from Project Meridian FX, the initiative will test interoperability and complex, multilateral use cases by leveraging simulated Real Time Gross Settlement (RTGS) systems and distributed ledger technology (DLT) environments. The goal is to enable atomic, real-time FX transactions that are fast, secure, and interoperable, potentially supporting payment-versus-payment FX settlement across various infrastructures and regulatory frameworks. [Source: BOE]
Upcoming Speaking Engagements:
The Cedi@60 Anniversary Currency Conference (Accra, Ghana, November 17-20) hosted by the Bank of Ghana, in partnership with Currency Research, will celebrate 60 years of the Ghanaian Cedi, bringing together leaders from across Africa and beyond to reflect on the currency’s legacy and chart its digital future. Learn about Ghana’s eCedi pilot and the future of sovereign digital currencies in Africa, and engage with innovators driving mobile money, QR code payments, and financial inclusion across the region. [Register here and get 15% off by using the Kiffmeister15 code!]
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.
VISA has launched a new pilot for VISA Direct that enables businesses and platforms to send payouts directly to recipients’ USD-backed stablecoin wallets, notably benefiting creators and gig workers with much faster access to their funds. The service funds payouts in fiat currency but recipients can choose to receive their funds in stablecoins like USDC, allowing for near-instant global money movement even in markets with currency volatility or limited banking infrastructure. Currently launching with select partners, Visa plans a wider rollout in 2026, emphasizing broader financial flexibility and support for the evolving creator and gig economy. [Source: VISA]
[October 30, 2025] The European Central Bank (ECB) published a report on the digital euro’s prospective business model. The aim will be to minimize transaction and implementation costs for payment service providers (PSPs) while unlocking revenue potential to offset new investments. The Eurosystem will cover all scheme and processing costs, ensuring that there are no scheme or processing fees—unlike card networks—so savings flow to PSPs, merchants, and ultimately consumers. Merchants should benefit from capped merchant service charges (MSC), with fees for digital euro acceptance expected to be notably lower than those for international card schemes and similar to or below domestic alternatives. However, PSPs question the model, preferring the ability to set market-based fees and compensation structures, and warn that a uniform cap across diverse markets could be problematic. All stakeholders agree on using standard, open infrastructure to reduce costs, and many see outsourcing (offering “digital euro as a service”) as a way for PSPs—especially smaller ones—to contain costs. Consumers are expected to access digital euro basic services free of charge. [Source: ECB]
Upcoming Speaking Engagements:
The Cedi@60 Anniversary Currency Conference (Accra, Ghana, November 17-20) hosted by the Bank of Ghana, in partnership with Currency Research, will celebrate 60 years of the Ghanaian Cedi, bringing together leaders from across Africa and beyond to reflect on the currency’s legacy and chart its digital future. Learn about Ghana’s eCedi pilot and the future of sovereign digital currencies in Africa, and engage with innovators driving mobile money, QR code payments, and financial inclusion across the region. [Register here and get 15% off by using the Kiffmeister15 code!]
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.
JPMorgan and Singapore’s DBS Bank are collaborating to develop a cross-border tokenized deposit framework that will connect their respective blockchain payment systems, allowing institutional clients to transfer tokenized deposits in real time between both public and private blockchains. This initiative links DBS Token Services with JPMorgan’s Kinexys Digital Payments project, enabling interoperability and 24/7 settlement between banks without relying on traditional payment rails. The move aims to set new standards for interoperability in institutional digital payments, reflecting the global trend of major banks seeking seamless, cross-system digital deposit solutions. According to BIS, about a third of banks worldwide are now exploring or launching tokenized deposit innovations, signaling accelerating adoption in this area. [Source: CoinDesk]
Visa and Mastercard have reached a revised $38 billion settlement with U.S. merchants, aiming to resolve two decades of litigation over antitrust violations and high card “swipe fees.” The deal would lower card processing fees by 0.1 percentage point for five years and grant merchants more control over card acceptance and surcharging, with standard consumer rates capped at 1.25% for eight years—a 25% drop. While Visa and Mastercard tout the relief for all merchants, especially smaller ones, major merchant groups like the National Retail Federation object, arguing the reforms don’t go far enough to address excessive fees and market power. The settlement replaces a previously rejected $30 billion accord and comes amid opposition from some merchant coalitions. Visa and Mastercard deny wrongdoing in agreeing to settle. [Source: Reuters]
IOSCO published a report on the tokenization of financial assets that assesses the adoption and implications of distributed ledger technology (DLT) in capital markets. It finds that while tokenization aims to drive efficiencies—such as fractionalization, programmability, and atomic settlement—the ecosystem remains nascent, with limited large-scale commercial adoption mostly seen in fixed income products and money market funds. Most lifecycle processes (issuance, trading, settlement, custody) continue to depend on conventional infrastructure due to challenges in DLT interoperability and credible on-chain settlement assets. The report highlights that risks from tokenization generally fit under existing legal and operational risk categories, but technology-specific risks (like smart contract bugs, cyber threats, and legal uncertainties around token ownership) may demand new controls. Regulators have mainly relied on existing, technology-neutral frameworks, sometimes complemented by specific guidance, sandboxes, or updated laws, as the economic substance of tokenized assets closely resembles traditional financial products. [Source: IOSCO]
The World Bank published a report that analyzes new data on fast payments systems (FPS) in Latin America and the Caribbean (LAC). FPSs are rapidly transforming digital finance in LAC, making digital transactions far faster, more affordable, and accessible. In the last eight years, fast payments grew from 2% to about 45% of all digital payments in LAC-11 countries, catalyzed especially by the COVID-19 pandemic and proactive central bank policies. Brazil’s Pix system stands out globally for per-adult transaction volume, demonstrating how open design, broad use cases, and regulatory support drive adoption. Most LAC nations now offer fast payments through varied models, with increasing central bank involvement. These systems deepen financial inclusion for those with accounts and can attract the unbanked, but further policy attention is needed to expand access. Challenges remain around interoperability, governance, fraud, and use-case diversification. The report recommends prioritizing open nonbank access, robust governance, broader use cases, enhanced fraud management, and alignment with digital public infrastructure for sustained impact and inclusion. [Source: World Bank]
Upcoming Speaking Engagements:
The Cedi@60 Anniversary Currency Conference (Accra, Ghana, November 17-20) hosted by the Bank of Ghana, in partnership with Currency Research, will celebrate 60 years of the Ghanaian Cedi, bringing together leaders from across Africa and beyond to reflect on the currency’s legacy and chart its digital future. Learn about Ghana’s eCedi pilot and the future of sovereign digital currencies in Africa, and engage with innovators driving mobile money, QR code payments, and financial inclusion across the region. [Register here and get 15% off by using the Kiffmeister15 code!]
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.
