Category: ILS

Kiffmeister’s #Fintech Daily Digest (20260903)

~ kiffmeister

Digital Currency in the Australian Context: An Update (RBA)

The Reserve Bank of Australia (RBA) and the Australian Government Treasury published reports that concluded that Australia’s retail payment system is serving households and businesses well, and that there is no clear public interest case for a retail central bank digital currency (CBDC). This is consistent with the conclusions of the 2024 “Central Bank Digital Currency and the Future of Digital Money in Australia” RBA and Treasury joint paper. The new assessment drew on a public consultation conducted by Verian Group, which asked Australians about their payment needs and views on a potential retail CBDC. Going forward, the RBA will continue monitoring developments in retail payments, cash accessibility, tokenized money, consumer payment preferences and digital finance domestically and internationally, to ensure it remains well placed to reassess the case for a retail CBDC should circumstances (and the policy case) change in the future. In the meantime, the RBA remains committed to progressing an ambitious range of initiatives in wholesale markets and money, including a coordinated work program on wholesale tokenized finance. [RBA]

The Role of RITS in Supporting Settlement in a Tokenized Ecosystem (RBA)

The Reserve Bank of Australia (RBA) launched a consultation on the roles of the Reserve Bank Information and Transfer System (RITS) (the RBA’s real-time gross settlement (RTGS) platform) and Fast Settlement System (FSS) (the RBA’s fast payment platform) in supporting settlement in a tokenized ecosystem. As highlighted in the May 2026 Project Acacia final report, tokenization has the potential to enhance the efficiency, functionality and resilience of Australia’s wholesale financial markets. The consultation seeks views on how the RBA’s settlement services could support the development and growth of tokenized asset markets and tokenized private money in Australia, while continuing to promote safety, efficiency and financial stability. The consultation is one of several initiatives identified in Project Acacia as forming the basis of a future program of work aimed at ensuring Australia’s money, payments and settlement arrangements remain fit for the future. The RBA is also seeking views on key design considerations for tokenized central bank reserves. [RBA]

Harneys and droppRWA Plan First Blockchain-Recorded Catastrophe Bond Issue (Coindesk)

Harneys, a global offshore law firm originally established in the British Virgin Islands, and droppRWA, a Bermuda-based tokenization platform, reportedly plan to issue tokenized catastrophe (CAT) bonds by 2027, transitioning legal ownership directly onto a blockchain. This could compress reconciliation from days to seconds and reduce minimum investments from $250,000 to $5,000 via beneficial interest vehicles. The project is still pending applicable regulatory requirements and approvals. Any platform administrator role would be subject to licensing under Bermuda’s Digital Asset Business Act 2018. [Coindesk]

BTW if you want to see a complete database of my DFC-related posts going back years, including many that didn’t make the Daily Digest cut, click here.

FYI I produce a monthly digest of digital fiat currency (DFC) developments exclusively for the official sector (e.g., central banks, ministries of finance and international financial institution (e.g., the BIS, IMF, OECD, World Bank)) plus academics and firms that are active in the DFC space (commercial banks, technology providers, consultants, etc.). (DFCs include central bank digital currency (CBDC), stablecoins and tokenized deposits.) It goes out via email on the first business day of every month, and if you’re interested in being on the mailing list, please email me at john@kiffmeister.com.

Kiffmeister’s #Fintech Daily Digest (20240705)

~ kiffmeister

MiCAR’s influence on stablecoins: Industry insights and implications

The Digital Euro Association (DEA) published a paper that dissects the Markets in Crypto-Assets Regulation (MiCAR) and its transformative impact on the stablecoin landscape. It explores the diverse regulatory approaches to stablecoins across major jurisdictions and how MiCAR might serve as a model for global regulation. The paper discusses the potential market opportunities MiCAR offers for stablecoin issuers, including enhanced consumer trust, clearer regulatory guidance, and increased access to the European market. Also, it covers the significant challenges stablecoin issuers face under MiCAR, from stringent compliance requirements to operational and technological strains, and how these hurdles might impact smaller issuers and market dynamics. [Read more at the DEA]

Schroders Capital & Hannover Re collaborate on tokenized ILS pilot

Germany reinsurer Hannover Re has collaborated with Schroders Capital on a pilot tokenization project, designed to enhance the way insurance-linked securities (ILS) are invested and managed. On an internal-only basis, Schroders successfully enabled reinsurance contracts to be tokenized and traded on a public blockchain platform using smart contracts. This allowed a number of time-consuming processes to be automated. For example, by integrating key catastrophe insurance data sources into the smart contracts payments to appropriate recipients could be automatically triggered if qualifying natural disaster events occurred. [Read more at Artemis.bm]

Monetary devolution and the political economy of central bank digital currencies

According to a paper by Leonidas Zelmanovitz and Bruno Meyerhof Salama, retail central bank digital currency (CBDC) can be considered a form of “monetary devolution,” that shifts the power, at least in part, from commercial banks to central banks. They discuss the institutional incentives of digital currencies in general and monetary devolution in the United States in particular. Next they outline an alternative that incorporates the technological edge provided by CBDCs. This alternative would be the creation of wholesale CBDCs to serve as the monetary base for settling retail payments with stablecoins. Designed as such, CBDCs could preserve the current balance between private and public money. [Read more at SSRN]

Upcoming Speaking Engagements:

  • 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.