Category: Privacy

Kiffmeister’s #Fintech Daily Digest (20250815)

~ kiffmeister

Circle Launching Arc Open Layer-1 Blockchain (Circle)

Circle announced plans to launch a new stablecoin-focused, Ethereum Virtual Machine (EVM) compatible Layer 1 blockchain called Arc, which will use USDC as its native gas token. Aimed at supporting enterprise-grade stablecoin payments, FX, and capital markets, Arc promises features like a stablecoin FX engine, rapid sub-second settlement, opt-in privacy, seamless integration with Circle’s platform, and interoperability across other partner blockchains. The public testnet for Arc is expected to go live in the fall of 2025 and a mainnet beta in 2026. [Read more at Circle]

Digital Dollar: Privacy and Transparency Dilemma (UC Law)

The University of California (UC) Law Journal published a paper by Jiaying Jiang that explores the debate around implementing central bank digital currency (CBDC), focusing on the tension between privacy and regulatory demands. The author argues that the prevailing fear of government surveillance is not a technical inevitability but a result of outdated anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations. To address this, the paper proposes concrete solutions: modernizing AML/CFT rules to allow for limited, threshold-based anonymity in everyday CBDC transactions; updating institutional record-keeping and reporting so small or low-risk transfers can occur privately; adopting privacy-preserving technologies like token-based payment options and encryption; and introducing clear legal carve-outs that permit financial institutions to implement privacy-by-design features without breaching regulatory obligations. These reforms, the author contends, would enable a digital dollar that protects user privacy while still equipping authorities with the tools necessary for oversight and crime prevention—demonstrating that privacy and compliance can be achieved together through thoughtful legal and technical innovation. [Read more at UC Law]

Public Attitudes Towards CBDC and the Role of Trust in the Central Bank (SSRN)

A forthcoming Bar Ilan University Faculty of Law Research Paper reports on the results of a multi-stage nationally-representatvie survey conducted in collaboration with the Bank of Israel on Israeli attitudes towards a possible digital shekel. The survey revealed that willingness to adopt was strongly correlated with trust in the central bank; respondents who expressed higher trust in the Bank of Israel were much more likely to intend to use the digital shekel. Interestingly, concerns about privacy were lower among Israelis compared to similar surveys in other countries, which may explain their relatively high acceptance. When asked about the most important features, respondents prioritized ease of use across payment scenarios, fraud protection, the ability to use the currency offline, absence of hidden fees, the option to earn interest, and above all, assurance that the central bank would not have access to personal transaction data. Overall, the survey highlights that while technical features matter, trust in the central bank is the most decisive factor influencing public willingness to adopt CBDC in Israel. [Read more at SSRN]

Personal Financial Planning and the Propensity of CBDC Adoption [Emerald Insight]

A paper published in the International Journal of Bank Marketing explores how personal financial planning impacts individuals’ willingness to adopt central bank digital currencies (CBDCs), using survey data from Sweden and the UK. The research finds that individuals who engage in activities such as budgeting, tracking expenses or setting long-term goals are more likely to express interest in CBDC adoption. These behaviors, reflecting financial literacy and forward-looking decision-making, align with openness to innovative financial technologies, were strengthened by perceptions of security, safety, and trust in the new technology. Individuals who believe that CBDCs are secure and that their personal data will be protected are significantly more likely to adopt the technology. Socioeconomic factors like education and age, as well as personal attitudes toward technology and risk, also influence adoption. [Read more at Emerald Insight]

Instant Cross-Currency Payments to Launch in October (Riksbank)

The TIPS Cross-Currency (TIPS X-CCY) service, a joint initiative by the Riksbank, ECB, Banca d’Italia, and Danmarks Nationalbank, will launching in October 2025, to enable instant, simultaneous settlement of cross-currency payments between the euro, Swedish krona, and Danish krone, with a future expansion to the Norwegian krone planned. This system leverages the Enhanced Linked Transaction (ELKT) model to ensure real-time payment and settlement across participating central bank systems, and is undergoing technical trials and regulatory updates to support its rollout, aiming to interlink with additional global payment systems over time. [Read more at the Riksbank]

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 (20250109)

~ kiffmeister

Privacy-enhancing technologies for CBDC solutions (BOC)

The Bank of Canada (BOC) published a paper that explores the use of privacy-enhancing technologies (PETs) in the design of central bank digital currency (CBDC) systems, potentially paving the way for solutions that better safeguard end-user privacy and meet rigorous data protection standards. PETs can offer robust protection for data throughout their lifecycle, whether stored, in transit or during processing, and ensure privacy is maintained even when data are extensively shared or analyzed. However, they can introduce performance overheads and add complexity to systems, and their effectiveness and applicability are currently limited due to their early stage of development. This paper provides a comprehensive overview of how PETs can transform privacy design in financial systems and the implications of their broader adoption. [Read more at the BOC]

Hong Kong launches DLT incubator for banks (Ledger Insights)

The Hong Kong Monetary Authority (HKMA) unveiled a “Supervisory Incubator for Distributed Ledger Technology”, with tokenized deposits as a major focus. At the individual bank level, the Incubator will offer a one-stop supervisory platform that enables banks to reaffirm the adequacy of their risk management controls prior to the full launch of a DLT-based initiative. By leveraging this platform, banks will have access to a dedicated team from the HKMA for obtaining supervisory feedback and may opt to conduct live trials to validate and refine specific aspects of their risk management implementation under a hands-on and iterative approach, as needed. [Read more at the HKMA]

Sponsored Content:

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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. [register 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. [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]

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 (20241210)

~ kiffmeister

Kiwis say privacy is crucial in Digital Cash (RBNZ)

The Reserve Bank of New Zealand (RBNZ) published the results of a public consultation on New Zealanders’ views on a potential central bank digital currency (CBDC). The vast majority of respondents expressed concern about the potential for government control, privacy, traceability, and autonomy. Many feared “Digital Cash” will be used to facilitate unacceptable intrusion into their privacy or social control, even if it is not originally designed to do so. In that regard, they want assurance that the RBNZ will continue to issue physical cash. In response, the RBNZ said that it remains committed to a privacy-centric design for Digital Cash subject to financial integrity considerations. [Read more at the RBNZ]

Sponsored Content:

Supercharge your CBDC research and deployment strategy with Chavanette’s Alpha Knowledge Platform (⍺LP)—the ultimate resource for deep insights into CBDCs and the ecosystem of CBDC technology providers and solutions. Get insider access to the top 20 CBDC platforms through the GALACTIC GRID, dissected by Chavanette’s expert framework. Lead the digital central banking revolution with the tools necessary to deploy Central Banking 4.0—stay informed, stay bold, stay transformative. Be the leader. Register for access here and get a 10% discount on the first year with the kiffmeister10 code.

Upcoming Speaking Engagements:

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

And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.

Kiffmeister’s #Fintech Daily Digest (20241209)

~ kiffmeister

Enhancing the privacy of a digital pound (BoE and MIT DCI)

The Bank of England (BoE) published a joint report with MIT Digital Currency Initiative (DCI) on how privacy enhancing technologies (PETs) could be used to enhance the privacy of a potential digital pound. The paper focused on pseudonymization, zero-knowledge proofs, and secure multiparty computing. It found that these technologies present opportunities for a central bank digital currency (CBDC) to be at least as private as current forms of digital money and potentially even more private as they mature. While PETs, on their own, do not guarantee privacy, the approaches explored in this paper seek to safeguard consumers’ private information, enable compliance with existing regulations, and strengthen trust and confidence in a digital pound, should one be launched in the future. [Read more at the MIT DCI]

Central bank money as a catalyst for fungibility: the case of stablecoins (ECB)

A paper co-written by a European Central Bank (ECB) staffer suggests required fungibility conditions for reserve asset-backed stablecoins issued by different issuers on different platforms. These include interoperable payment and settlement technologies, payment settlement finality, and seamless stablecoin convertibility into the quasi-ultimate means of payment (e.g., central bank money). Also, issuers should have sufficiently strong liquidity and capital positions to meet redemption obligations, including to cover potential variations in liquid off-chain asset price volatility. [Read more at SSRN]

Sponsored Content:

Supercharge your CBDC research and deployment strategy with Chavanette’s Alpha Knowledge Platform (⍺LP)—the ultimate resource for deep insights into CBDCs and the ecosystem of CBDC technology providers and solutions. Get insider access to the top 20 CBDC platforms through the GALACTIC GRID, dissected by Chavanette’s expert framework. Lead the digital central banking revolution with the tools necessary to deploy Central Banking 4.0—stay informed, stay bold, stay transformative. Be the leader. Register for access here and get a 10% discount on the first year with the kiffmeister10 code.

Upcoming Speaking Engagements:

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

And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.

Kiffmeister’s #Fintech Daily Digest (20240831)

~ kiffmeister

Central bank digital currency data use and privacy protection (IMF)

The IMF published a Fintech Note that offers a framework to help countries navigate, as well as tools to help them manage, the trade-offs between central bank digital currency (CBDC) data use and privacy protection. It addresses retail CBDC, as data access and privacy-preserving considerations in a wholesale environment are similar to those of the traditional real-time gross settlement (RTGS) systems. It emphasizes the role of institutional arrangements, data collection, access and storage policies, design choices, and technological solutions. At a given level of preference for privacy, central banks can facilitate better use of CBDC data through robust transparency and accountability arrangements, sound policies, and judicious adoption of privacy-by-design approaches including the use of privacy-enhancing technologies. [Read more at the IMF]

Deposit tokenization: survey of overseas initiatives (BOJ)

The Bank of Japan (BOJ) published a survey of global deposit tokenization projects. With the emergence of stablecoins, these initiatives seem to seek an extension of functionality in payment and settlement systems by applying new technologies, such as distributed ledger technology (DLT), to bank deposits as a traditional means of payment. The main reason such initiatives prefer leveraging deposit money is said to be its affinity with the two-tier monetary system and possibly with existing laws or regulations. However, there remain some issues that require further clarification on how payments with tokenized deposits are categorized in the private law system, and how smart contracts provide implications for non-functional requirements and legal certainty. [Read more at the BOJ]

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.

Kiffmeister’s #Fintech Daily Digest (20240823)

~ kiffmeister

FinCEN unhosted wallet proposal officially dead (Coin Desk)

The U.S. Treasury Department Financial Crimes Enforcement Network (FINCEN) officially withdrew its proposed rule, introduced in 2020, that would have imposed know-your-customer (KYC) requirements on unhosted wallets. Basically, it became clear that it would be practically impossible for virtual asset service providers (VASPs) to implement the proposed rules. [Read more at FederalRegister.gov]

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 (20240807)

~ kiffmeister

Google, Amazon, Walmart seek to join e-rupee pilot (Reuters)

GooglePay, Walmart-backed PhonePe and AmazonPay, plus Indian fintech firms Cred and Mobikwikare, are reportedly seeking to join the Reserve Bank of India (RBI) e-rupee central bank digital currency (CBDC). Initially, the RBI had permitted only banks to offer e-rupee via their mobile applications, but in April 2024 it said payment firms could also offer e-rupee transactions via their platform once approved by the RBI. [Read more at Reuters]

Regulating decentralized systems: evidence from Tornado Cash sanctions (Ledger Insights)

The Federal Reserve Bank of New York (NY Fed) published a study of the impact and effectiveness of regulation in decentralized systems, using sanctions imposed in 2022 by the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) on the Tornado Cash (TC) crypto-asset mixer. It documented an immediate and lasting negative impact on TC following the sanction announcement. This conclusion was based on tracking Ethereum block proposers and the builders responsible for selecting transactions for settlement. Many large builders cooperated with the sanctions. A couple of builders who did not comply with the sanctions, acting for philosophical reasons rather than monetary motives, were responsible for most of the ongoing TC transactions. [Read more at the NY Fed]

Ledger Insights makes the point that OFAC’s sanctions on crypto mixers could be viewed as a violation of Article 12 of the Universal Declaration of Human Rights, as are all existing anti-money laundering (AML) procedures promulgated by the Financial Action Task Force (FATF). And despite zero evidence that effectiveness of AML procedures outweigh their negative impact on financial inclusion, national authorities continue to unquestioningly impose them. As examples of the abject failure of AML procedures Ledger Insights points out that studies have estimated that their impact is about 0.2% of illicit flows, and a McKinsey report noted that suspicious transactions flagged by banks are up to 99% false positives.

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 (20240726)

~ kiffmeister

ERPB technical session on the digital euro (ECB)

The European Central Bank (ECB) published two documents discussed at the June 28, 2024 meeting of the European Retail Payments Board (ERPB) technical session of the digital euro [agenda here]. One was a summary of inputs on the methodology for calibrating holding limits [download here], and the other was on the strategies for conducting euro user research and engaging with market participants (payment service providers and merchants)[download here].

Thailand distributing stimulus payments in digital currency (CoinTelegraph)

Thailand’s finance ministry is going ahead with a plan to pay a social benefit in digital currency. Up to 45 million Thais will be eligible to receive 10,000 baht (about $280) in digital money on August 1, 2024, about two-thirds of the average monthly income in the country. There are numerous restrictions on usage, including know your customer (KYC) verification that will exclude prisoners and people and businesses with records of economic abuse. There are also restrictions on the items that can be purchased with the digital currency. [Read more at CoinTelegraph]

German banks share tokenized deposit trial results (Ledger Insights)

The German Banking Industry Committee (GBIC) published the results of a proof of concept (POC) for its distributed ledger technology (DLT) based commercial bank money token (CBMT) project. CBMT is focused on serving large corporates, especially industrial companies, allowing them to hold tokens from multiple banks and to make P2P (B2B) transactions 24/7/365. Results confirmed that the CBMT is viable and offers considerable potential, enabling the realization of a variety of use cases across corporate functions. Results also showed that the CBMT works across a variety of DLT platforms, has the potential to scale and should present no barrier to integration into existing systems via application programming interfaces (APIs). [Read more at the GBIC]

Payment behavior in Germany in 2023 (Deutsche Bundesbank)

The Deutsche Bundesbank (BuBa) published an analysis of how people pay in Germany, based on approximately 5,700 randomly selected members of the public aged 18 and over between September and November 2023. Of payment volumes, debit cards accounted for 32%, cash for 26%, transfers and direct debits 20%, credit cards 10%, and mobile payments 6%. In general, 44% of respondents prefer to pay with electronic payment methods, but 24% still prefer cash, and 94% of merchants accept cash at point of sale. The perceived benefits of cash include privacy preservation (63%), immediate and reliable settlement of payments (47%), and easy expense overview (41%). [Read more at BuBa]

CBDC and transmission of monetary policy (Bank of Canada)

The Bank of Canada (BOC) published a paper on how a central bank digital currency (CBDC) changes monetary policy transmission in a general equilibrium model with nominal rigidities, liquidity frictions, and a banking sector where commercial banks face a leverage constraint. It finds that the effects of a shock to the Taylor rule that governs interest on central bank reserves, is magnified with the introduction of a fixed-interest-rate CBDC. More generally, whether CBDC magnifies or abates the response of the economy depends on the type of shock (e.g., interest rate or quantity of reserves shock). The paper also finds that the response of the economy depends on the monetary policy framework—whether the central bank implements monetary policy through reserves or through CBDC—as well as central bank balance sheet rules that govern the quantity of CBDC and reserves. [Read more at the BOC]

Jordanian government launches national blockchain network (Jordan News)

Jordan’s Ministry of Digital Economy and Entrepreneurship (MODEE) launched a national blockchain technology network, MODEE DLT, to enhance trust and transparency in government services. MODEE DLT has been integrated with the Sanad system to provide a decentralized and verifiable digital record of all Sanad transactions. Sanad is a government portal through which residents can access their government digital documents and personal records, apply for government services, digitally sign documents, and make bill payments. [Read more at MODEE]

Qatar Central Bank issues DLT guidelines (Qatar Central Bank)

The Qatar Central Bank (QCB) published its guidelines for the oversight of distributed ledger technology applications or systems provision and usage by QCB-regulated entities to ensure that their usage is safe, secure and efficient. [Read more at the QCB]

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.

Kiffmeister’s #Fintech Daily Digest (20240615)

~ kiffmeister

Berlin Group adopts working paper on digital central bank money

The International Working Group on Data Protection in Technology (the “Berlin Group”), chaired by the German Federal Commissioner for Data Protection and Freedom of Information (BfDI), published a working paper on central bank digital currency (CBDC) privacy-related risk factors. For example, the paper points out that the ECB must take a privacy and data protection by design and by default approach. In addition, it argues that a distributed ledger technology (DLT) architecture does not necessary entail a more privacy friendly solution, because data is immediately visible to all nodes in the network and immutability means that data can never be deleted or rectified (a right that is guaranteed in Europe’s General Data Protection Regulation (GDPR). Also, some programmable features imply privacy and civil rights risks that may outweigh the potential benefits, due to legal and ethical concerns (for example automated decision-making without possibility of appeal and/or risk of censorship). [Read more at BfDI]

The ASX CHESS blockchain: seven years of sunk cost fallacy

In 2016 the Australian Stock Exchange (ASX) engaged Digital Asset Holdings to replace its aging (launched in 1994) Clearing House Electronic Sub-register System (CHESS) securities settlement system. The replacement was to run with smart contract functionality written in DAML (Digital Assets Modeling Language). The whole project turned out to be a fiasco (check out David Gerard’s timeline here) and it was shutdown in 2022 with ASX writing off AUD$250 million. Plus ASX users effectively wrote off the tens of millions of dollars spent on building interfaces to the failed system. In April 2024, a parliamentary enquiry concluded that the ASX and its regulators should have identified and monitored strategic technical risks such as scalability for the CHESS replacement project more carefully, and enhance their technology skills and experience at the most senior levels, and place less reliance on outsourcing their responsibility to contractors and consultants. [Read more on the Attack of the 50 Foot Blockchain]

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.

Kiffmeister’s #Fintech Daily Digest (20240614)

~ kiffmeister ~ 1 Comment

2023 BIS survey on central bank digital currencies and crypto

94% of the 86 central banks surveyed (between October 2023 and January 2024) by the Bank for International Settlements (BIS) are exploring central bank digital currency (CBDC). 54% are experimenting with proofs of concept and 31% are running a pilot. Around 30% of central banks focus on retail CBDCs only and 2% are working on wholesale CBDCs only, and it is more likely that central banks will issue a wholesale CBDC within the next six years than retail CBDC. More emerging market and developing economy (EMDE) central banks are likely to issue a retail CBDC on a distributed ledger than advanced economy (AE) central banks, perhaps reflecting a willingness to leapfrog moving from legacy systems to cutting-edge technologies. Also, this year the survey also provides insight into the use of stablecoins for payments and regulatory approaches to crypto-assets across the globe. [Read more at the BIS]

European Central Bank on making the digital euro truly private

The European Central Bank (ECB) published a blog post that explains what degrees of payments privacy future users of a digital euro can expect. It claims that it will promise better privacy and data protection than other current electronic means of payment, but not the same degree of privacy as cash although paying with an “offline digital euro” comes pretty close. Online digital euro payments will not be so private, because the commercial banks that run the user-facing parts of the platform will have full access to user identity and transaction information, just like they currently do on their own platforms. However, digital euro holder identities will be separated from the payment data, and the banks will pseudonymize user data so they are not visible to the Eurosystem. [Read more at the ECB]

Bank of Thailand to test programmable payments in enhanced sandbox

The Bank of Thailand (BoT) will test programmable payments in its Enhanced Regulatory Sandbox. Programmable payments automate transaction with predefined conditions for the payment of goods and services. This project will demonstrate the potential for applying technology to a wide variety of financial services, accompanied by appropriate risk management processes. The BOT will work in collaboration with the Securities and Exchange Commission, the Office of Insurance Commission, and the Fiscal Policy Office, Ministry of Finance, to evaluate the benefits and risks of financial innovations and to establish potential and suitable supervisory policies. [Read more at the BOT]

Are CBDCs quantum safe?

BitMint CEO Amnon Samid argues that CBDCs that rely on blockchain or distributed-ledger tech (DLT) will soon be cryptographically compromised by the power of quantum computers and artificial intelligence. Amnon argues that central banks should secure digital cash as token- or value-based digital representations, instead of designing systems that rely on traditional accounts as used by the commercial banking system. [Podcast on DigFin]

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.