Kiffmeister’s #Fintech Daily Digest (20231117)*

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IOSCO publishes crypto markets policy recommendations

The International Organization of Securities Commissions (IOSCO) published its conclusive report containing policy suggestions for crypto-asset and digital asset markets, after a consultation period that started in May 2023. The recommendations aim to help establish a coordinated global regulatory response to the risks posed by crypto-asset service providers (CASPs), including market abuse, conflict of interest, client asset protection and disclosures. The regulatory approach taken is consistent with IOSCO’s principles and associated standards for securities markets regulation, and IOSCO denied crypto industry requests for a bespoke regime for stablecoins. [Read more at IOSCO]

Launch of cross-border real-time payments between Singapore and Malaysia

The Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM) have jointly launched a real-time payment systems linkage between Singapore’s PayNow and Malaysia’s DuitNow. The initiative follows the QR payment linkage announced in March 2023 which enabled cross-border QR payments to merchants. The PayNow-DuitNow linkage enables instant, secure and cost-effective P2P fund transfers and remittances between the two countries using the recipient’s mobile phone number or virtual payments address. This real-time payment systems linkage is also the first to include the participation of non-bank financial institutions from both countries. [Read more at the MAS]

Launch of cross-border QR payments linkage between Indonesia and Singapore

Bank Indonesia and the MAS launched the cross-border quick response (QR) payment linkage between Indonesia and Singapore. This linkage enables customers of participating financial institutions to make seamless cross-border retail payments using their existing mobile banking applications to scan QRIS (Quick Response Code Indonesian Standard) or NETS QR codes displayed by merchants in Indonesia and Singapore respectively. [Read more at the MAS]

PBOC, HKMA conduct technical testing on cross-border payments of digital yuan

The Digital Currency Institute of the People’s Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA) are carrying out the second phase of technical testing on the use of digital yuan in cross-border payments, involving more banks in Hong Kong and the use of the Fast Payment System to top up digital yuan wallets. Earlier in November 2023, the Octopus Cards Limited (OCL) e-payment platform and the Bank of China in Hong Kong started to explore new digital yuan application scenarios, with a view to benefitting both mainland visitors to Hong Kong and Hong Kong residents visiting the mainland. [Read more at the Global Times]

FYI here are some of my upcoming speaking engagements:

– Currency Research Americas Cash Cycle & Payments Seminar (Orlando Florida on November 27-30)[Register here]

– Digital Euro Conference 2024 (Frankfurt on February 29)[Register here]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Kiffmeister’s central bank digital currency monthly monitor

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

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20231116)*

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HRF launches central bank digital currency tracker

The Human Rights Foundation (HRF) launched a central bank digital currency (CBDC) tracker that focuses on civil liberties and human rights impacts, particularly of people living under authoritarian regimes. According to tracker, central banks in 119 countries are researching, piloting, or deploying CBDCs, and the HRF estimates that 46% of the world population are living under autocracies currently experimenting with CBDCs. The coverage is similar to that provided by the Atlantic Council’s CBDC tracker, and similarly “double” counts currency zone countries to pump up the numbers, which the crowd-sourced CBDCTracker.org does not do. [Read more at the HRF CBDC Tracker website]

MAS lays foundation for safe and innovative use of digital money

The Monetary Authority of Singapore (MAS) unveiled three initiatives to ensure the safe and innovative use of digital money in Singapore. First there is the Orchid Blueprint that sets out the technology and infrastructure building blocks that would be required to facilitate digital money transactions in the future. Second, there will be four new Project Orchid digital money trials, including testing the broad applicability of purpose bound money, which enables money to be directed towards a specific purpose, without requiring money itself to be programmed. And third, “live” wholesale CBDC will be tested, with the first pilot focusing on settling retail payments between commercial banks, and future pilots possibly focusing on settling cross-border securities trades. The Orchid Blueprint will support single-currency stablecoins that will be regulated for their value stability under MAS’ proposed regulatory framework for stablecoin activities. The Blueprint will also support tokenized bank deposits issued by MAS-regulated banks. [Read more at the MAS]

The subtle art of slow: The CBDC adoption journey

Jonas Gross and Conrad Kraft argue that, although the slow uptake of retail CBDC pilots and launches may be viewed as disappointing by some, it isn’t uncommon among transformative payment technologies (e.g., credit cards, online banking and e-wallets). They provide a number of key factors that can guide the gradual transition to wider-spread CBDC adoption, such as education and awareness, maintaining a focus on technological advancements and security, developing regulations that support CBDC growth, and collaborating with all stakeholders, including merchants, banks and payment service providers. And most importantly, “CBDC must offer unique features that surpass the capabilities of existing payment instruments… A CBDC that merely replicates current digital money, differing only in its central bank backing (largely imperceptible to potential users), won’t attract widespread use.” [Read more at CoinDesk]

FYI here are some of my upcoming speaking engagements:

– Currency Research Americas Cash Cycle & Payments Seminar (Orlando Florida on November 27-30)[Register here]

– Digital Euro Conference 2024 (Frankfurt on February 29)[Register here]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Kiffmeister’s central bank digital currency monthly monitor

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

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20231115)*

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National Bank of Kazakhstan launches digital tenge pilot

The National Bank of Kazakhstan (NBK) kicked off a central bank digital currency (CBDC) pilot involving second tier banks and their clients. The architecture of the platform allows the use of digital tenge by opening a digital account in the mobile application of the banks, between which users can make payments and money transfers. Also, Almaty city administration will distribute automated social support payments using smart contract technology. Also, participating banks have issued digital cards in cooperation with international payment systems like MasterCard and Visa, so that . holders can make digital tenge payments and transfers with familiar form factors. [Read more at the NBK]

IMF launches Central Bank Digital Currency Virtual Handbook

The IMF launched its Central Bank Digital Currency (CBDC) Virtual Handbook, a reference guide for policymakers and experts at central banks and ministries of finance. It also serves as the basis for the IMF’s engagement with country authorities and other stakeholders. The CBDC Handbook aims to collect and share knowledge, lessons, empirical findings, and frameworks to address policymakers’ most frequently asked questions on CBDCs. As the IMF’s body of knowledge and analysis grows, it will continue to add about five chapters every year aiming to provide about twenty chapters by 2026. Moreover, chapters will be periodically updated, reflecting evolving views. [Read more at the IMF]

MAS kickstarts new round of asset tokenization pilots

The Monetary Authority of Singapore (MAS) will commence a new series of asset tokenization pilots in collaboration with 17 international banks. The initiative is an extension to MAS’ Project Guardian, in which the central bank collaborated with 15 financial institutions to carry out industry pilots on asset tokenization in fixed income, foreign exchange, and asset management products. The five new pilot projects explore a new set of use cases including listing, distribution, trading, settlement, and asset servicing. Additionally, MAS is collaborating with international policymakers and financial institutions to create an open digital infrastructure called Global Layer One (GL1) to facilitate seamless cross-border transactions and enable trading of tokenized assets across global liquidity pools while adhering to regulatory requirements. Furthermore, MAS is working with the financial industry to develop an Interlinked Network Model (INM) as a common framework for exchanging digital assets across independent networks, enabling transactions among financial institutions without the need for all to be on the same network. [Read more at MAS]

Fnality adds Goldman, BNP Paribas, DTCC in $95m funding round

Goldman Sachs, BNP Paribas and DTCC joined Fnality’s £77.7 million Series B funding round. Formerly called Utility Settlement Coin, Fnality plans to offer a wholesale payment and settlement platform using stablecoins backed by deposits at central banks. So far it’s operational only in the U.K., where banks can transfer money from their Bank of England accounts to the Fnality UK central bank account where it’s tokenized. Because the money is tokenized it enables instant atomic securities transaction settlement. One of the intended use cases is cross currency payments, but that will need the cooperation of other central banks, which has been slow in coming. [Read more at Fnality]

Alipay+ now integrated with Cambodia’s National QR code KHQR

The National Bank of Cambodia (NBC) and Ant International have partnered to promote efficient and secure cross-border mobile payments via QR code. The partnership, signed at the Singapore Fintech Festival, will enable users of Alipay+ payment partners to easily make payments at any KHQR merchants across Cambodia, and vice versa. KHQR, launched by the NBC in 2022, is a QR code-based payment solution designed to facilitate retail payments within Cambodia and cross-border transactions within ASEAN. [Read more at Fintech Singapore]

FYI here are some of my upcoming speaking engagements:

– Currency Research Americas Cash Cycle & Payments Seminar (Orlando Florida on November 27-30)[Register here]

– Digital Euro Conference 2024 (Frankfurt on February 29)[Register here]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Kiffmeister’s central bank digital currency monthly monitor

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

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20231113)*

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Grayscale Bitcoin Trust discount shrinks to 10.35% as ETF hype persists

The discount on the Grayscale Bitcoin Trust (GBTC) has narrowed to its lowest levels since July 2021. Data from YCharts shows the trust’s discount to its net asset value (NAV) is 10.35% versus the almost 50% during the depths of the FTX-induced crypto winter in December last year. The shrinking comes amid reports that the U.S. Securities and Exchange Commission (SEC) has engaged in discussions with Grayscale Investments regarding the conversion of the trust into a spot Bitcoin exchange-traded fund (ETF). [Read more at Cryptonews]

FYI here are some of my upcoming speaking engagements:

– Currency Research Americas Cash Cycle & Payments Seminar (Orlando Florida on November 27-30)[Register here]

– Digital Euro Conference 2024 (Frankfurt on February 29)[Register here]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Kiffmeister’s central bank digital currency monthly monitor

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

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20231112)*

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Global toolkit on regulatory sandbox for central bank digital currency

The United Nations has published a sandbox framework that maps out the steps and key elements for the designing and operationalizing central bank digital currency (CBDC). First a proof of concept (PoC) is used as part of the selection process for the CBDC issuing system, and then the sandbox is used to test the basic capabilities of the platform to issue CBDC securely. Then banks and other payment service providers (PSPs) are brought in to test settlement functions. When key criteria have been met, then the CBDC can be released for pilots with real CBDC for use with selected groups of users, merchants, and other stakeholders. The framework was developed in collaboration with the Maldives Monetary Authority, and the work goes back at least to September 2022. [Read more at the United Nations]

JPM Coin launches programmable payments

Onyx by JP Morgan has launched programmable payments for blockchain-based accounts on JPM Coin. The solution allows users to use an if-this-then-that interface to program their transactions. Customers can control their JPM Coin accounts in new ways such as dynamic funding, in which they can apply various rules for funding a bank account in case of shortfalls, and event-based payouts, in which they can execute transactions depending on various needs such as delivery of assets. On November 6, Siemens AG completed its first payment using the feature, and FedEx and Cargill will be going live with the solution in the next few weeks. [Read more at Finextra]

FYI here are some of my upcoming speaking engagements:

– Currency Research Americas Cash Cycle & Payments Seminar (Orlando Florida on November 27-30)[Register here]

– Digital Euro Conference 2024 (Frankfurt on February 29)[Register here]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Kiffmeister’s central bank digital currency monthly monitor

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

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20231110)*

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ECCB preparing to launch ‘DCash 2.0’

The Eastern Caribbean Central Bank (ECCB) is preparing for a full “commercial deployment” of DCash, the central bank digital currency (CBDC) it has been piloting since March 2021. Governor Timothy Antoine said the ECCB “intends to move forward with alacrity” on the CBDC project, “and will conclude its pilot [by end-2023] and launch DCash 2.0, which is commercial deployment”. [Read more at Central Banking]

Legislation To Combat Critical Chinese National Security Threat

Legislation to “combat China, prevent cyberattacks, and protect U.S. intellectual property” was introduced into the U.S. House of Representatives. The Creating Legal Accountability for Rogue Innovators and Technology (CLARITY) Act would prohibit the federal government from utilizing blockchain technology developed by China and other foreign adversaries to ensure these countries do not have a backdoor to access critical national security intelligence and Americans’ private information. Firms listed include any parent companies or subsidiaries of China’s Blockchain Services Network (BSN) and the affiliated Red Date Technology, and iFinex, the parent company of USDT issuer Tether. [Read more at Representative Zach Nunn’s website]

China’s Digital Currency and Blockchain Network: Disparate Projects or Two Sides of the Same Coin?

“China is simultaneously developing two ambitious projects that aim to digitize key parts of its economy and, if successful, may have broad implications for economies beyond its borders. Often conflated, the Digital Yuan (数字人民币, shùzì rénmínbì, also known as e-CNY) and the Blockchain-based Service Network (BSN, 区块链服务网络, qūkuàiliàn fúwù wǎngluò) are distinct technologies—and the success of either is not uniquely predicated on that of the other. But experts, as well as the organizations spearheading these projects, suggest that they have the potential to augment one another in the future.” [Read more at Stanford University’s Cyber Policy Center]

FYI here are some of my upcoming speaking engagements:

– Currency Research Americas Cash Cycle & Payments Seminar (Orlando Florida on November 27-30)[Register here]

– Digital Euro Conference 2024 (Frankfurt on February 29)[Register here]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Kiffmeister’s central bank digital currency monthly monitor

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

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20231109)*

~ kiffmeister ~ Leave a comment

Large fiat-backed stablecoins depegged 600+ times in 2023

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

Ripple unveils enhanced cross-border payments solution

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

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

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

FYI here are some of my upcoming speaking engagements:

Currency Research Americas Cash Cycle & Payments Seminar (Orlando Florida on November 27-30)[Register here]

Digital Euro Conference 2024 (Frankfurt on February 29)[Register here]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Kiffmeister’s central bank digital currency monthly monitor

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

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20231108)*

~ kiffmeister ~ Leave a comment

Will the real stablecoin please stand up?

The Bank for International Settlements (BIS) published a paper that provides an overview of the evolution of the stablecoin market and examines whether stablecoins are actually “stable”. It studies 68 stablecoins and shows that none of them have been able to maintain parity with their pegs at all times. Moreover, it argues that there is currently no guarantee that stablecoin issuers could redeem users’ stablecoins in full and on demand. For these reasons, it concludes that the current crop of stablecoins don’t meet the key criteria for being a safe store of value and a trustworthy means of payment in the real economy. The paper also highlights some significant data gaps. [Read more at the BIS]

EBA establishes capital requirements for stablecoin issuers

The European Banking Authority (EBA) launched consultations on draft stablecoin regulatory requirements. Smaller stablecoins must hold at least 30% of their reserves at commercial banks (for significant stablecoins it’s 60%). (A significant stablecoin is one with at least €5 billion in reserves or more than ten million users.) Also, no more than 10% can be held at one bank (5% if the bank is a small one), and deposits from a single stablecoin can’t make up more than 2.5% of a bank’s assets. There are also rules on the maturity of assets. Plus there are requirements for non cash liquid assets (government, local or quasi-government debt) and restrictions on the maximum exposure to a single issuer. [Read more, including links to the relevant EBA papers, at Finance Magnates and Ledger Insights]

Platform lending and innovation

The BIS published a paper that analyzes the effect of big tech platforms on credit markets. It finds that: “(i) platform lending serves as an instrument to price discriminate vendors with heterogenous funding needs, resulting in higher fees and below-market interest rates; (ii) platform lending can spur innovation by providing access to subsidized credit, but may be detrimental to vendors who do not borrow; and (iii) when the platform has better information it will lend only to the highest-quality vendors and at a better rate than banks, which, anticipating adverse selection effects, will not lend. The results suggest that platform lending can be socially desirable if the users would not have received funding from banks, but it has ambiguous effects otherwise.” [Read more at the BIS]

FYI here are some of my upcoming speaking engagements:

Currency Research Americas Cash Cycle & Payments Seminar (Orlando Florida on November 27-30)[Register here]

Digital Euro Conference 2024 (Frankfurt on February 29)[Register here]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Kiffmeister’s central bank digital currency monthly monitor

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

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20231106)*

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Proposed UK regulatory regime for systemic payment systems using stablecoins

The Bank of England (BoE) published a discussion paper that sets out its proposed regulatory framework for systemic payment systems using sterling-denominated stablecoins and related service providers. It was published alongside a discussion paper from the Financial Conduct Authority (FCA) on their regulatory approach to stablecoin issuers and custodians, a letter from the Prudential Regulation Authority (PRA) to bank Chief Executive Officers on innovations in the use by banks of deposits, e-money and stablecoins, and a roadmap paper, which sets out how the various regimes interact together. Notably, the BoE discussion paper favors stablecoins fully backed by *unremunerated* central bank deposits as the most appropriate for systemic payment systems using stablecoins. [Read more at the BoE]

FYI here are some of my upcoming speaking engagements:

Currency Research Americas Cash Cycle & Payments Seminar (Orlando Florida on November 27-30)[Register here]

Digital Euro Conference 2024 (Frankfurt on February 29)[Register here]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Kiffmeister’s central bank digital currency monthly monitor

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

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]

Kiffmeister’s #Fintech Daily Digest (20231105)*

~ kiffmeister ~ Leave a comment

IMF update on its Peru CBDC technical assistance

The IMF has been providing central bank digital currency (CBDC) technical assistance (TA) to the Banco Central de Reserva del Perú (BCRP) since 2021. The initial TA mission supported the central bank during the first phase of the project, which involved clarifying the context, key questions, and potential approaches to study a CBDC. The second phase started with the publication of a paper by the central bank. The white paper outlined the context, goals and challenges related to a potential CBDC in Peru. Consistent with recommendations from the first mission, the BCRP recognized the need to focus on an initial engagement with stakeholders, including representatives of the banking sector, payment service providers, and the fintech and technology sector. [Read more at the IMF]

FYI here are some of my upcoming speaking engagements:

Currency Research Americas Cash Cycle & Payments Seminar (Orlando Florida on November 27-30)[Register here]

Digital Euro Conference 2024 (Frankfurt on February 29)[Register here]

*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.

Kiffmeister’s central bank digital currency monthly monitor

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

The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]