Kiffmeister’s #Fintech Daily Digest (20251008)

October 8, 2025October 8, 2025 ~ kiffmeister

Just a reminder that 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.

BOE Plans Carveouts on Stablecoin Cap After Industry Backlash (Bloomberg)

The Bank of England (BOE) reportedly plans to grant exemptions to its proposed £20,000 cap for individuals and £10 million cap for businesses on stablecoin holdings, specifically targeting crypto exchanges and other firms that require large stablecoin positions. The central bank will also allow firms to use stablecoins as settlement assets in its experimental Digital Securities Sandbox, marking a notable shift from Governor Andrew Bailey’s earlier warnings that stablecoins could destabilize public trust in money. This policy adjustment comes amid growing concerns that the UK is falling behind the US in stablecoin regulation, with only $581,000 worth of pound-pegged stablecoins in circulation compared to $468 million in euro-pegged tokens, and fears that talent and investment could flow to New York under the Trump administration’s more favorable Genius Act framework. The changes reflect pressure from the digital payments industry. [Source: Bloomberg]

Pricing in Fast Payments: A Practical and Theoretical Overview (BIS)

The Bank for International Settlements (BIS) published a paper that provides an overview of how fast payment systems (FPS) are priced at various levels, including system participants (banks and payment service providers) and end-users. It reviews global practices, such as free, paid, freemium, and subscription models, highlighting incentives and trade-offs for financial inclusion, innovation, and competition. Using a two-sided market theoretical model (focused on person-to-merchant (P2M) transactions), the authors show that zero-fee models are unsustainable without external subsidies, while different pricing approaches influence both usage volume and social welfare. Some systems (eg Türkiye, Brazil) avoid joining or fixed fees for participants to encourage adoption, while others (eg Australia, the United Kingdom) use a mix of fee types. At the end user level, many (eg Brazil, Malaysia, Thailand) offer free or low-cost transactions for individuals. Fees for merchants can be market-based or regulated (eg Türkiye, India, Mexico). The model shows that FPS usage may be sub-optimal under many pricing schemes that are currently applied in practice. [Source: BIS]

Upcoming Speaking Engagements:

Stablecoin C-Suite Summit (New York City on November 14-15) will be the definitive conference for exploring the future of digital money and intelligent payments. The event brings together founders, C-level executives, investors, policymakers, and developers for two immersive days of talks, panels, and networking. This be the place to be if you’re building, backing, or regulating the next wave of programmable finance. [Register here]

The Digital Euro Conference 2026 (Frankfurt, March 26) will explore the future of money with a focus on CBDCs, stablecoins, and commercial bank tokens. This hybrid event offers the perfect platform to understand the future of digital money! When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [register here]

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 (20250924)

September 24, 2025September 24, 2025 ~ kiffmeister

Digital Euro May Be Rolled Out in Mid-2029, ECB’s Cipollone Says (Bloomberg)

The digital euro could be launched by mid-2029, according to ECB Executive Board member Piero Cipollone, speaking at a Bloomberg Future of Finance event. A recent agreement among euro-area finance chiefs on customer holding limits has accelerated the project’s momentum, but the initiative’s progress now depends on the European Parliament passing required legislation. Cipollone suggests that the Parliament’s formal position may be ready by early May 2026, with broader agreement among EU member states likely by year-end. [Source: Bloomberg]

CFTC Launches Tokenized Collateral and Stablecoins Initiative (CFTC)

The U.S. Commodities Futures Trading Commission (CFTC) has launched an initiative to allow tokenized collateral—including stablecoins—to be used in U.S. derivatives markets, citing the need for modernization and greater market efficiency. Industry leaders from Circle, Coinbase, Ripple, Tether, and Crypto.com publicly support the move, emphasizing how regulated stablecoins could enhance liquidity, reduce risks, and strengthen U.S. global leadership in financial innovation. The CFTC is inviting stakeholders and the public to submit feedback by October 20, 2025, as it prepares to implement new pilot programs and regulatory updates in line with recommendations from the President’s Working Group and its own Global Markets Advisory Committee. [Source: CFTC]

Drivers of Digital Payment Adoption: Lessons from Brazil, Costa Rica, and Mexico (NBER)

The U.S. National Bureau of Economics and Research (NBER) published a paper that explores why digital person-to-person (P2P) payment platforms like Brazil’s Pix and Costa Rica’s Sinpe Móvil achieve broad, cash-like usage while Mexico’s CoDi lags. It finds that mass adoption depends on rapid spread from affluent early adopters to lower-income groups, which is enabled by low barriers to entry, strong network effects, policy support, universal connectivity, and public trust. For example, CoDi’s adoption plateaued at only 2–3% of adults, due to pre-existing low bank account ownership (~40%), lower mobile and internet penetration, and restrictive access. For example, opening a bank account in Mexico is more cumbersome than in Brazil because it typically involves heavier and stricter documentation requirements, in-person branch visits, and processes that are not fully digitized or simplified for unbanked or low-income populations. [Source: David Argente]

Stablecoins and the Future of Money: Economic Principles and Policy Implications (IMK)

The Institut für Makroökonomie und Konjunkturforschung (IMK) published a paper by Peter Bofinger that argues for the integration of national payment systems across European Union (EU) member states as a means of strengthening European payment sovereignty and resilience, particularly in the face of risks posed by foreign-currency stablecoins—most notably those denominated in USD. The rationale is that by unifying fragmented domestic payment infrastructures, the EU can achieve faster, cheaper, and more seamless cross-border transactions for both consumers and businesses, reducing dependence on non-EU payment schemes and lessening the appeal of private stablecoins for euro area payments. This integration would build on the existing Single Euro Payments Area (SEPA) and extend its ease and efficiency, allowing instant, interoperable euro payments at scale. [Source: IMK]

Upcoming Speaking Engagements:

Stablecoin NYC 2025 (New York City on November 14-15) will be the definitive conference for exploring the future of digital money and intelligent payments. The event brings together founders, C-level executives, investors, policymakers, and developers for two immersive days of talks, panels, and networking. This be the place to be if you’re building, backing, or regulating the next wave of programmable finance. [Register here]

Kiffmeister’s #Fintech Daily Digest (20250611)

June 11, 2025 ~ kiffmeister

Transforming global payments: the role of tokenized money & funds in cross-border transactions (VISA)

VISA published an interim report on Phase 2 of the e-HKD Pilot Programme, an initiative by the Hong Kong Monetary Authority (HKMA) to explore cross-border transactions using new forms of digital money including central bank digital currency (CBDC) and tokenized deposits. The pilot, involving VISA, ANZ, Fidelity International, and ChinaAMC Hong Kong, testis how Australia-based investors can purchase tokenized fund units from Hong Kong asset managers using e-HKD or tokenized deposits. The program aims to explore the potential of blockchain technology for near real-time settlements, enhanced interoperability between public and permissioned blockchains, and the establishment of token standards, ultimately seeking to accelerate digital asset adoption and improve the efficiency of fund management and cross-border payments. [Read more at VISA]

Public consultation on possible extension of T2 operating hours (ECB)

The European Central Bank (ECB) is seeking input from market stakeholders on potentially extending the operating hours of T2, its real-time gross settlement system. The Eurosystem is considering the possibility of moving T2 towards a 24/7 model. The consultation will consider several options for extending T2 operating hours, including a move towards (i) a 24-hour operational day, (ii) a 6 or 7-day operational week, or (iii) a 365-day operational year. Additionally, the Eurosystem is considering some potential adjustments to key operational features or longstanding conventions such as (i) reorganizing payments settlement during night-time, (ii) adjusting key cut-off times and (iii) introducing new value dates. [Read more at the ECB]

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]

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 (20250516)

May 16, 2025May 16, 2025 ~ kiffmeister

Judge Rejects SEC and Ripple’s Bid to Rework XRP Settlement (Decrypt)

U.S. District Judge Analisa Torres denied a joint bid by the U.S. Securities and Exchange Commission (SEC) and Ripple Labs to approve their recent agreement to drop their appeals and end a four-year legal battle, citing procedural errors. The SEC and Ripple had filed for an indicative ruling, a non-binding signal from the court that it would accept a deal dissolving Ripple’s injunction and reducing its $125 million fine to $50 million. But it bypassed Rule 60 of civil procedure, which governs relief from final judgments, and failed to demonstrate the “exceptional circumstances” required under that standard. However, Ripple’s Chief Legal Officer Stuart Alderoty said that “Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the Court, together”. [Read more at X]

ECB sets back deadline for non-bank PSP access to TARGET (ECB)

The European Central Bank (ECB) has postponed a deadline for allowing non-bank payment service providers (PSPs) to access central bank-operated payment systems, including the TARGET settlement and the TIPS instant retail payment systems. This decision is a result of delays in some euro area countries in transposing the required amendments to the Settlement Finality Directive (SFD) and Payment Services Directive (PSD2) into their national legislation. The postponement to October 2025 necessary to avoid legal risks. [Read more at the ECB]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20250415)

April 15, 2025April 15, 2025 ~ kiffmeister

A formally defined model to describe and compare payment system architectures (BIS)

The Bank for International Settlements (BIS) proposed a formally defined model to represent three key functions of payment system architectures: issuance/withdrawal, holding and transfer of funds in a standardized manner. The model defines payment diagrams, using a precisely defined syntax. The paper illustrates the application of these diagrams for domestic and cross-border account transfers, as well as cash, card, e-money and stablecoin payments. However, the payment diagrams can be used for any type of funds and can be applied across different payment system architectures. It also demonstrates how the diagrams correspond to the balance sheet approach commonly used in economics, and that it offers added value by providing an end-to-end visualization of every stage of the payment journey. The model provides a tool for central banks, regulators and the payment industry to better understand and compare existing and new payment system architectures. [Read more at the BIS]

Fnality rolls out “earmarking” for programmable payments (Fnality)

Fnality has released a new “earmarking” feature that allows banks to program funds for release upon receipt of proof of an event elsewhere. For example, institutions will be able to systematically program when funds move in exchange for a specified asset, or a related market event. A proof is a cryptographically signed piece of data representing specific information from another system, triggering the release of the £FnPS’s digital representation of central bank funds. When an earmark is in place prior to its release, the funds remain on the originating participant’s balance sheet at all times. [Read more at Fnality]

Kiffmeister’s #Fintech Daily Digest (20250224)

February 24, 2025February 24, 2025 ~ kiffmeister

Binance.US restores US dollar deposits and withdrawals (Binance.US)

Binance.US has seen its US dollar fiat services restored, after the firm’s ability to handle USD deposits and withdrawals was choked off under the Biden administration. Users will be able to deposit and withdraw USD with zero fees using bank transfer (ACH) and continue buying, selling, converting and trading cryptocurrencies on the exchange. [Read more at Binance.US]

Interlinking fast payment systems to enhance cross-border payments (CPMI)

The Committee on Payments and Market Infrastructures (CPMI) published a summary of the high-level findings of a July 2024 conference on expediting the interlinking of fast payment systems (FPSs). It found that emerging markets and developing economies have made considerable progress in fast payment adoption. As the number of domestic FPSs grow, opportunities are emerging to facilitate the cross-border interlinking of safe and efficient FPS. Work is under way in many jurisdictions to enhance FPS readiness to participate in such links, particularly to improve their functionality and align with messaging and compliance standards. Successful links to date have prioritized interoperability and smoothly managed coordination between the public and private sectors and among jurisdictions. It is expected that FPS links in the near term will be based on bilateral links, while over the longer term, these may coexist with more open and future-proof multilateral arrangements. Over time, the market will likely evolve to link between regional groupings (see https://www.bis.org/cpmi/publ/brief5.htm). [Read more at the BIS]

Open-source software in the context of fast payment systems (World Bank)

The World Bank published a paper that examines the use of open-source software (OSS) in the context of fast payment systems (FPSs), as well as relevant implementation models, risks, benefits, and costs. It identified only one live FPS using OSS for core functionalities, but interest is growing among payment system operators, particularly in initiatives such as Mojaloop. Moreover, some FPS operators may choose to use OSS for non-core components, making it crucial for both operators and regulators to be aware of the potential impacts that OSS may have, both positive and negative, on the overall efficiency and resilience of FPSs. While OSS offers advantages, such as cost savings from reduced licensing fees and the flexibility to customize systems, it also presents challenges. For example, institutions need significant in-house expertise for customization, maintenance, and operation and must align their long-term FPS goals with the chosen open-source solutions to ensure adaptability and scalability. [Read more at the World Bank]

Upcoming Speaking Engagements:

The Crypto Assets Conference (Frankfurt, March 26) will delve into the advancements in digital assets, tokenization, crypto assets, web3, and more, through insightful talks, interactive debates, and presentations by industry experts, founders, investors, and representatives from public institutions. [Register here]
The Digital Euro Conference 2025 (Frankfurt, March 27) 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! [Register here]

Kiffmeister’s #Fintech Daily Digest (20250213)

February 13, 2025February 13, 2025 ~ kiffmeister

Improving instant cross-border payments using central bank money settlement (BIS)

The Bank for International Settlements (BIS) published an update on Project Rialto, which is exploring connecting instant payment systems (IPSs) across borders using central bank money (CBM) on a tokenized platform and an automated foreign exchange (FX) conversion layer. Such integration raises some specific challenges and design considerations, which will be addressed in the development phase and form an integral part of the project’s contributions to improving cross-border payments. This report identifies the main policy and technical aspects to be considered, with the next steps being to develop at proof of concept. [Read more at the BIS]

Practical approaches to extend payment system operating hours (CPMI)

The Committee on Payments and Market Infrastructures (CPMI) published a paper that analyzes and outlines practical approaches that have been used to address some of the key challenges of extending or aligning real-time gross settlement (RTGS) system operating hours. Limited RTGS system operating hours and gaps between jurisdictions’ operating hours due to time zone differences can lead to delays in settlement of cross-border payments. Several RTGS systems have extended operating hours in recent years and have experienced notable adoption of the additional hours. With the extended hours, payment system participants can offer better services to end users, such as 24/7 fast payments. Many more RTGS systems are evaluating or planning to extend operating hours. [Read more at the BIS]

Sponsored Content:

Upcoming Speaking Engagements:

The Central Bank Payments Conference (Paris, February 17–19) will explore the latest issues and developments confronting central banks and their evolving role as operators, overseers, and catalysts within the payments landscape. The focus will be on cross-border payments, CBDC and tokenization, open finance, instant payments, and financial inclusion, among other topics. When you register get 15% off by using the Kiffmeister15 code. [r egister here]
The Global Payments Summit (Paris, February 19–21), the second half of Currency Research Payments Week, will explore emerging payments trends and innovations, positioning the ecosystem’s commercial players — banks, PSPs, solution providers — at the center of the discussions. When you register get 15% off by using the Kiffmeister15 code. [register here]
The Crypto Assets Conference (Frankfurt, March 26) will explore the latest innovations and emerging industry trends in DLT, blockchain, and crypto assets, through insightful talks, interactive debates, and presentations by industry thought leaders. [Register here]
The Digital Euro Conference 2025 (Frankfurt, March 27) 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! [register here]

Kiffmeister’s #Fintech Daily Digest (20241213)

December 13, 2024December 13, 2024 ~ kiffmeister

Bank Indonesia completes digital rupiah PoC (BI)

Bank Indonesia (BI) completed its Project Garuda proof of concept (PoC) for a distributed ledger technology (DLT) based digital rupiah wholesale cash ledger. The testing confirmed that the solution can meet the business and technical needs requirements (transaction security, interoperability with existing payment systems and financial infrastructure). Two DLT-based platforms were tested; Corda (R3) and Hyperledger Besu (Kaleido). Both were able to meet all testing scenarios and address all key questions. Project Garuda will proceed with a broader exploration of securities ledger, including exploring liquidity management and privacy technology. [Read more at BI]

Macau pataca prototype system development completed (AMCM)

The Monetary Authority of Macau (AMCM) has completed the development of a prototype digital Macau pataca (e-MOP) which will soon undergo sandbox and public testing. There is also a chance it will be linked to China’s e-CNY and Hong Kong’s e-HKD in the future. The People’s Bank of China (PBOC) provided technical support, and the Hong Kong Monetary Authority (HKMA) is responsible for supervising and managing e-MOP issuance, cancellation and circulation. The AMCM will set up self-service money exchangers to allow holders to accept e-MOP or other foreign currencies for cash reloading by exchanging money. [Read the e-MOP white paper at the AMCM]

AXA IM in two ECB wholesale CBDC trials (Ledger Insights)

AXA Investment Managers (AXA IM) executed two transactions using the Banque de France’s pilot distributed ledger technology (DLT) based wholesale central bank digital currency (CBDC), as part of the Eurosystem wholesale DLT settlement trials. The first was a €3 million investment by AXA IM, on behalf of AXA France, into a digital sovereign bond issued by the Republic of Slovenia. The transaction was executed on BNP Paribas’ “Neobonds” tokenization platform with T+1 settlement on T+1 using the Banque de France’s DL3S platform. The second experiment executed a fund share subscription of €1 million from Generali into AXA Court Terme with instant settlement process using digital CeBM via the IZNES blockchain platform. [Read more at AXA IM]

SocGen completes repo transaction on public blockchain with the Banque de France (SocGen)

Societe Generale (SocGen) completed a collateralized market transaction fully executed on blockchain through its SG-FORGE subsidiary. This is the first sale and repurchase agreement (repo) transaction in digital securities with a Eurosystem central bank. SocGen deposited as collateral with the Banque de France some bonds issued in 2020 on the public Ethereum blockchain in exchange for pilot central bank digital currency (CBDC) issued by the Banque de France on its DL3S blockchain. [Read more at SocGen]

HQLAᵡ and market participants collaborate on collateral mobility initiative (DerivSource)
HQLAᵡ successfully concluded a feasibility initiative to address pain points in triparty collateral mobility. It uses its platform to transfer securities collateral to – or between – multiple triparty agents without triggering cross-custodian settlements. The HQLAᵡ platform uses distributed ledger technology (DLT) to validate the ownership of the securities at any given point in time. [Read more at DerivSource]

EBA assesses potential benefits and challenges of tokenized deposits (EBA)

The European Banking Authority (EBA) published a report to facilitate awareness of tokenized deposits, as well as assess their potential benefits and challenges. The report also aims to promote convergence in the classification of tokenized deposits in contrast with electronic money tokens (EMTs) issued by credit institutions under the Markets in Crypto-Assets Regulation (MiCAR). [Read more at the EBA]

ESAs provide guidelines to facilitate crypto-asset classification consistency (EBA)

Three European Supervisory Authorities (ESAs) published joint guidelines intended to facilitate consistency in the regulatory classification of crypto-assets under MiCAR. The guidelines include a standardized test to promote a common approach to classification as well as templates market participants should use when communicating to supervisors the regulatory classification of crypto-assets. [Read more at the EBA]

Recommendations related to cross-border payment data flows and regulation (FSB)

The Financial Stability Board (FSB) published recommendations to promote greater alignment in data frameworks related to cross-border payments and consistency in the regulation and supervision of bank and non-bank payment service providers. These recommendations advance key actions from the G20 Roadmap to address legal, supervisory, and regulatory issues in cross-border payments. [Read more at the FSB]

Exploring wholesale central bank digital currencies (CCAF)

The Cambridge Centre for Alternative Finance (CCAF) published a report that reviews the case for a wholesale CBDC, the various approaches in how it can be delivered, and an assessment of the pilots and experiments undertaken by the industry and central banks. It finds that buy- and sell-side firms are progressing with tokenization initiatives, driving a need for digital money for the cash leg. which may increasingly be delivered through tokenized bank deposits or stablecoins. Meanwhile, central banks are raising concerns on the risks of using such private settlement assets for settlement, facilitating experiments demonstrating how central bank money can be used instead, but with no clear indication yet on how and when this may be delivered in practice. [Read more at the CCAF]

Digital tool sheds light on stablecoin flows and regulation (CCAF)

Also, the CCAF updated its Cambridge Digital Money Dashboard (CDMD), offering new insights into the geographical flows of stablecoins, as well as regulatory overviews for a wider set of jurisdictions. This new update was made possible through a joint work with Chainalysis, a blockchain data platform specializing in on-chain data analytics for investigations and compliance. [Read more at the CCAF]

ICMA publishes DLT bonds reference guide (ICMA)

The International Capital Market Association (ICMA) published a reference guidance for DLT-based debt securities. The guide highlights considerations for the end-to-end lifecycle of DLT-based debt securities. It is designed for market practitioners as well as a broader audience of market stakeholders. It comprises over 50 practical questions and serves as a reference point across the lifecycle of a DLT-based debt security. [Read more at ICMA]

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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 (20240805)

August 5, 2024August 5, 2024 ~ kiffmeister

BOJ executive summary of “Future of Wholesale Payments” (BOJ)

The Bank of Japan (BOJ) published an executive summary of a presentation and panel session on the “future of wholesale payments at the FIN/SUM 2024 on March 6, 2024. Three consecutive sessions the course of developments in this area, the emergence of new forms of money, and challenges of the current practice. Of these sessions, the panel discussions brought together business leaders, industry experts, and academics to illustrate the future landscape of the wholesale payments ecosystem. [Read more at the BOJ]

Cambodia’s Bakong digital currency helps address dollarization (Ledger Insights)

A key aim of the National Bank of Cambodia’s Bakong digital currency payment system, launched in 2020, was to encourage a higher proportion of transactions in the local riel rather than dollars. Cambodia is a heavily dollarized country with roughly 80% of transactions taking place in US dollars. However, during the first half of 2024 the riel was used in 43% of Bakong transactions, versus 34.2% in 2023. One of the key tactics to encourage use of the local currency is to only support cross-border payments using riel. According to Leger Insights, while often described incorrectly as a central bank digital currency (CBDC), “Bakong is closer to a tokenized deposit initiative with the Bakong currency backed by balances at commercial banks”. [Read more at Ledger Insights]

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]

Kiffmeister’s #Fintech Daily Digest (20240802)

August 2, 2024August 2, 2024 ~ kiffmeister

Indonesia preps second stage of wholesale CBDC trials (Ledger Insights)

Bank Indonesia (BI) published its Indonesian Payment System Blueprint (BSPI) 2030, in which it provides an update on its digital rupiah central bank digital currency (CBDC) work. The central bank completed the first of three proof of concept phases CBDC work during the first half of 2024, the basic issuance and redemption of a distributed ledger technology (DLT) based wholesale CBDC . The BI is now readying to start the second phase in which it plans to explore the integration of a wCBDC with a digital securities ledger to test issuing, transferring and redeeming digital securities, conduct central bank operations, and extending the functionality of digital securities, including programmability, composability and tokenization. [Read the full report (in Indonesian) at the BI]

Central Bank of Azerbaijan holds back on CBDC (Trend News)

The Central Bank of Azerbaijan (CBA) reportedly has no plans to issue a CBDC, as it currently sees no prospects for its successful implementation. Governor Taleh Kazimov cited “challenges related to operations and financial sector stability”. [Read more at Trend News]

Offline digital euro: ECB seeks input from experts (Ledger Insights)

The European Central Bank (ECB) is inviting experts in offline payments to participate in conversations to explore options for an offline digital euro as part of its retail CBDC work. It wants to understand the marketplace for using embedded secure elements (eSEs) and embedded SIMs (eSIMs) in user devices. Secure elements are standard-compliant chips that ensure safe data storage embedded in most smartphones and many wearables, typically for payments. eSIMs facilitate user network switches via software updates, instead of swapping physical SIM cards. Both could play roles in offline payment functionality. The experts are to be drawn from original equipment manufacturers (OEMs), mobile network operators (MNOs) and specialized trusted service managers, but none that are participating in any of the ECB public tenders on digital euro components. [Read more at the ECB]

According to Giesecke+Devrient (G+D), the eSIM ecosystem offers an equivalent level of security and protection to that provided by the removable SIM card. The protocols are based on state-of-the-art cryptographic mechanisms and secure the privacy of the end user. A public key infrastructure (PKI) governed by the Global System for Mobile Communications Association (GSMA) provides a secure authentication of the entities of the ecosystem. Manufacturers or providers of eSIM solutions have to undergo GSMA certification in order to be admitted into the ecosystem.

PBOC and HKMA sign MOU on cross-border payment systems linkage (HKMA)

The Hong Kong Monetary Authority (HKMA) signed a memorandum of understanding ( MOU) with the People’s Bank of China (PBoC) to establish a cooperation framework to support the linkage of the payment systems of the Mainland and Hong Kong. “These efforts pave the way towards seamless and efficient cross-boundary payment connectivity between Hong Kong and the Mainland, unlock new opportunities for businesses and individuals in both places, and further cement Hong Kong’s role as a leading international financial center.” [Read more at the HKMA]

AFME provides an action plan for European tokenization (Ledger Insights)

The Association for Financial Markets in Europe (AFME) published a report on its recommendations for supporting the development of capital markets and increased access to finance through new technologies. It outlines a series of priorities, including tokenization and digital assets, where it calls for loosening legal requirements that require central securities depositories (CSDs) which aren’t always necessary for DLT-based settlement platforms. Additionally, AFME would like to see legal clarification relating to the Settlement Finality Directive around probabilistic settlement on public blockchains. [Read the report at the AFME]

The Bahamas brings in new crypto law (CoinDesk)

The Bahamas’ Parliament passed the Digital Assets and Registered Exchanges Act, 2024 (DARE 2024) 1.5 years after the collapse of Bahamas-headquartered FTX. It will tighten requirements for virtual asset service providers (VASPs) and put in place a full licensing regime. VASPs will be required to have a trade surveillance system in place, and insider trading, unlawful disclosure of information and market manipulation is prohibited. [Read the Act on the Parliamentary website]

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]