Tag: Bitcoin

Kiffmeister’s #Fintech Daily Digest (20241219)

~ kiffmeister

Faster digital payments: global and regional perspectives (BIS)

The Bank for International Settlements (BIS) published a paper on the insights and lessons learned from a range of fast payment systems (FPS). Over 100 jurisdictions worldwide, including 15 jurisdictions in Latin America, have implemented FPS. The first, overview chapter draws out general insights from experiences in the Americas, such as on the impact of fast payments on financial inclusion, the role of central banks and domestic and cross-border interoperability. The next chapter looks in greater depth at Pix in Brazil, and its complementarities with other means of payment. A further chapter dives into the experiences of SINPE Móvil in Costa Rica, including the impact on banks. The final chapter explores the experience of the Unified Payments Interface (UPI) in India. [Read more at the BIS]

El Salvador to scale back bitcoin efforts under $1.4 billion IMF deal (Decrypt)

IMF staff and the El Salvadoran authorities reached a staff-level agreement on a new arrangement under the IMF’s Extended Fund Facility (EFF) for about US$1.4 billion to support the government’s reform agenda. The agreement is subject to IMF Executive Board approval. Provisions on the agreement imply that if approved, El Salvador would have to scale back certain aspects of its bitcoin strategy. Bitcoin acceptance will be made voluntary for the private sector and public sector involvement in crypto activities will be confined. Also, taxes will only be paid in U.S. dollars, and the government will gradually unwind its role in the Chivo digital wallet program. [Read more at the IMF]

Deutsche Bank tries to tackle compliance hurdles for public blockchains (Bloomberg)

Deutsche Bank is working on a fix for the regulatory challenges financial institutions face when trying to use public blockchains, such as the risk of inadvertently transacting with criminals or sanctioned entities. The bank unveiled a test version of Project DAMA-2, a Layer-2 Ethereum-based asset-servicing pilot in November 2024, as part of the bank’s contribution to the Monetary Authority of Singapore’s (MAS) Project Guardian. [Read more at Axelar]

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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]

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 (20240624)

~ kiffmeister

Mt Gox to start distributing $9 billion in bitcoin to creditors

On June 24, 2024, Mt. Gox’s rehabilitation trustee announced that it will start processing reimbursements starting in July 2024. More than $9 billion worth of Bitcoin (BTC) and Bitcoin Cash (BCH) is owed to approximately 127,000 creditors of Mt. Gox. These creditors have been waiting for over 10 years to recover their funds following the exchange’s collapse in 2014 due to multiple unnoticed hacks. The trustee had transferred BTC and BCH worth $9.62 billion into a new wallet, “1Jbez,” from several other cold wallets associated with Mt. Gox in May 2024 as part of a consolidation plan to prepare to start repaying creditors. [Read more at Mt. Gox]

ECB publishes first progress report on digital euro preparation phase

The European Central Bank (ECB) published its first progress report on the digital euro preparation phase, which was launched on 1 November 2023 with the aim of laying the foundations for the potential issuance of a digital euro. The report outlines the progress made on key digital euro design aspects and the envisaged next steps for the project. [Read more at the ECB and a summary at Ledger Insights]

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 (20240513)

~ kiffmeister

I’ve updated my tabulation of retail central bank digital currency (CBDC) explorers. [Read more at Kiffmeister.com]

Few Chinese workers paid in digital yuan choose to use it

Some Chinese cities have begun to pay employees with eCNY but most convert to cash immediately. Ledger Insights points out that this may be because few retail outlets accept it because of the zero acceptance fees paid by merchants, versus the 0.6% paid on other retail digital payment instruments. Apparently, point-of-sale (POS) equipment manufacturers earn a cut of merchant fees, so zero eCNY fees disincentivize conversion of POS equipment. [Read more at Ledger Insights]

El Salvador launches Bitcoin treasury monitoring website

The El Salvador government has launched a proof-of-reserves website to provide real-time on-chain transparency of its Bitcoin holdings. The government currently holds 5,748 Bitcoin currently worth about $350 million. They were bought at an average cost of $43,097 per Bitcoin, for a substantial unrealized profit. [Read more at Coin Telegraph]

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 (20240406)

~ kiffmeister

Reserve Bank of Zimbabwe launches new ZiG “structured” currency

The Reserve Bank of Zimbabwe (RBZ) launched a new “structured” currency called “Zimbabwe Gold” (ZiG) that will be anchored to a weighted value of the central bank’s precious metal (mainly gold) and foreign currency reserves. As of April 5, 2024, the RBZ had reserve assets of US$100 million in cash and 2,522 kgs of gold (US$185 million) to back the entire local currency component of reserve money which stood at ZW$2.6 trillion (US$90 million). ZiG notes and coins shall be issued in denominations made up of 1ZiG, 2ZiG, 5ZiG, 10ZiG, 20Zig, 50ZiG, 100ZiG, and 200ZiG, but no mention is made of what becomes of the ZiG (now GBDT) wallets, assuming such wallets ever existed. [Read more at the RBZ]

There’s a bit of funky history here, because in May 2023, the RBZ introduced Gold-Backed Digital Tokens (GBDTs) that were pegged to gold prices and fully backed by physical gold held by the RBZ. Apparently, in July 2023, the GBDT was renamed “Zimbabwe Investment Gold” (ZiG) and in October 2023 the RBZ advised that the ZiG will become one of the “means of payments” for domestic transactions, at which point I designated the ZiG as a central bank digital currency (CBDC) in my CBDC tabulation. Now the RBZ has renamed existing ZiG accounts GBDT accounts to be used for their original investment instrument purposes, rather than as a medium of exchange.

So are GBDT accounts CBDC when it appears they’re no longer intended as a medium of exchange? The Bank for International Settlements (BIS) definition of CBDC, and the one I use, is that “a CBDC is a digital payment instrument, denominated in the national unit of account, that is a direct liability of the central bank“. The new GBDT are clearly direct liabilities of the central bank, but are they still payment instruments and units of account? And I still have a question as to whether the old ZiG was ever actually activated and used as a retail CBDC. Can anyone out there confirm or deny that?

A primer on Bitcoin cross-border flows: Measurement and drivers

The IMF published a paper that uses raw Bitcoin data covering both on-chain (on the Bitcoin blockchain) and off-chain (outside the Bitcoin blockchain) transactions globally to gain a better understanding of cross-border Bitcoin flows. It finds that Bitcoin cross-border flows respond differently than capital flows to traditional drivers of capital flows, and differences appear between on-chain and off-chain Bitcoin cross-border flows. Off-chain cross-border flows seem correlated with incentives to avoid capital flow restrictions. [Read more at the IMF]

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.

Kiffmeister’s #Fintech Daily Digest (20240405)

~ kiffmeister

RBI to broaden e-rupee’s retail access beyond banks

The Reserve Bank of India (RBI) plans to its make e-rupee central bank digital currency (CBDC) accessible to a broader segment of users by enabling non-bank payment system operators to offer CBDC wallets. Such non-bank payment system operators, include third-party payment app providers like PhonePe, Google Pay and Paytm. This expansion will facilitate testing of the resiliency of CBDC platform to handle multi-channel transactions, and hopefully help lift underwhelming transaction volumes. [Read more at the RBI]

ESMA explains why DLT Pilot Regime hasn’t taken off

The European Securities and Markets Authority (ESMA) published an update on the uptake of distributed ledger technology (DLT) by financial market infrastructures in the context of the European Union’s DLT Pilot Regime. The regime, launched in March 2023, aimed to pave the way for innovative DLT market infrastructures, such as DLT multilateral trading facilities and settlement systems. However, uptake has been underwhelming, with only four applications submitted so far, which ESMA blames uncertainties regarding on-chain cash settlement solutions, the use of self-hosted wallets, and the scope of admitted DLT financial instruments. [Read more at ESMA]

Bhutan to upgrade Bitcoin mining in Himalayas as ‘halving’ looms

Bhutan’s government investment arm, Druk Holding & Investments, and Bitdeer Technologies Group are planning a six-fold ramp up of their Bitcoin mining operation to help offset the revenue impact of the upcoming “halving”. The planned hardware upgrades will increase Bhutan’s mining capacity by 500 megawatts by the first half of 2025. [Read more at Bloomberg]

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.

Kiffmeister’s #Fintech Daily Digest (20240213)*

~ kiffmeister

Bitcoin ETF success by key measures one month after debut

According to Bloomberg, spot bitcoin exchange-traded funds (ETFs) have raked in about $9.2 billion in total gross inflows since the U.S. Securities and Exchange Commission (SEC) approved eleven such ETFs in January. However, that’s “only” $2.8 million net after accounting for the $6.4 billion outflows from the Grayscale Bitcoin Trust after it was converted from a trust into an ETF. [Read more at Bloomberg]

Franklin Templeton files for spot Ethereum ETF

Franklin Templeton has filed with the U.S. SEC for a spot Ethereum (ETH) ETF, becoming the eighth player to file for a similar product. VanEck was the first, which the SEC must either approve or deny by May 23. In January, the SEC delayed its decision on an application by Grayscale to convert its ETH trust product into a spot ETF, and BlackRock’s spot ETH ETF application was also punted. [Read more at Reuters]

ETH/USD over the last month (CoinMarketCap)

FYI here are some of my upcoming speaking engagements:

– Digital Euro Conference 2024 (Frankfurt on February 29)[Register here and get a 20% discount with the Kiffmeister20 code]

*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 (20240115)*

~ kiffmeister

Scaramucci says Grayscale ETF sales helped fuel bitcoin decline

Bitcoin and other crypto-assets have tanked since the U.S. Securities and Exchange Commission (SEC) approved eleven spot bitcoin exchange-traded funds (ETFs). Some of the decline is being attributed to profit taking and buy-the-rumor-sell-the-news following the recent runup in prices. However, Skybridge Capital Founder Anthony Scaramucci is also attributing it to sales of Grayscale Bitcoin Trust (GBTC) shares to book losses and shift to lower fee alternatives. Most of GBTC’s competitors are charging annual fees of between 0.20 and 0.40% and many are offering temporary fee waivers, but Greyscale is charging 1.50% with no waiver. According to Finequia’s Matteo Greco, in the initial two days of trading after the ETF approvals there was a cumulative inflow of approximately $1.4 billion into the 11 ETFs and $600 million GBTC outflows. [Read more on Bloomberg]

FYI here are some of my upcoming speaking engagements:

– Digital Euro Conference 2024 (Frankfurt on February 29)[Register here and get a 20% discount with the Kiffmeister20 code]

*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 (20240110)*

~ kiffmeister

U.S. SEC approves spot bitcoin exchange-traded products

The U.S. Securities and Exchange Commission (SEC) approved the listing and trading of eleven spot bitcoin exchange-traded funds (ETFs). The eleven issuers are Bitwise, Grayscale, Hashdex, BlackRock, Valkyrie, BZX, Invesco, VanEck, WisdomTree, Fidelity and Franklin. Alongside the omnibus approval order, the SEC published a speech by Chair Gary Gensler that included a warning that “while we approved the listing and trading of certain spot bitcoin [ETFs] today, we did not approve or endorse bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.” [Read more at the SEC]

Compromised SEC account posted fake bitcoin ETF tweet

The day prior to the approval announcement, in a case of “do as I say, not as I do”, the U.S. Securities and Exchange Commission (SEC) is not employing two-factor authentication (TFA) on its X account, which was compromised to spread false bitcoin exchange-traded fund (ETF) news, according to X (formerly Twitter). Apparently, the SEC did not have TFA enabled at the time the account was compromised, only a few months after SEC Chair Gary Gensler reminded everyone to use “strong passphrases or passwords and set up multifactor authentication“! The fake tweets caused bitcoin prices to immediately spike to $47,680 from the $46,800 level, and then fall as low as $45,400 as the tweets were found to be fake. The fake tweet announced the approval of 13 spot bitcoin ETFs, which was quickly denied by Gensler. [Read more at Decrypt]

FYI here are some of my upcoming speaking engagements:

– Digital Euro Conference 2024 (Frankfurt on February 29)[Register here and get a 20% discount with the Kiffmeister20 code]

*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 (20240109)*

~ kiffmeister

Bitcoin touches $47,000 for the first time since April 2022 as investors brace for landmark ETF decision

Crypto market participants are holding their breath as they wait the U.S. Securities and Exchange Commission (SEC) verdict on a swath of spot Bitcoin exchange traded fund (ETF) applications, including from some of the big mainstream money managers (e.g., BlackRock, Fidelity and Franklin Templeton). Decisions are expected tomorrow (January 10) and hopes are running high that, after numerous unsuccessful application attempts, so stay tuned! [Read more at CNBC]

Central bank money settlement of wholesale transactions in the face of technological innovation

The European Central Bank (ECB) published an update on its explorations of central bank money settlement of wholesale transactions on distributed ledger technology (DLT) platforms. Together with interested market players, the Eurosystem intends to test three cross-platform settlement solutions: The first is a “trigger” solution developed by the Deutsche Bundesbank, in which euro central bank money settlement would take place on the existing TARGET settlement system. The second is a “TIPS Hash-Link” solution developed by the Banca d’Italia, in which settlement would take place in an infrastructure based on TIPS, which is currently used for settling instant retail payments. The third is a full-DLT solutions developed by the Banque de France, in which euro central bank money settlement would take place on a DLT platform, operated by the central bank or jointly with other parties. [Read more at the ECB]

CBDCs and national security: Policy considerations

The U.K.-based Royal United Services Institute (RUSI) published a paper on the potential adverse international security effects of the development of foreign central bank digital currencies (CBDCs). Concerns center on (1) the possibility of China dominating the CBDC market, (2) implications of first-mover advantage (and conversely the implications of the Bank of England delaying domestic development of a CBDC), (3) he role of CBDCs in international sanctions, and (4) the impact of foreign CBDCs on the United Kingdom as a financial center. [Read more at the RUSI]

FYI here are some of my upcoming speaking engagements:

– Digital Euro Conference 2024 (Frankfurt on February 29)[Register here and get a 20% discount with the Kiffmeister20 code]

*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 (20240104)*

~ kiffmeister

Update on the work of the digital euro scheme’s Rulebook Development Group

The European Central Bank (ECB) has published a report summarizing the progress made by the digital euro scheme’s Rulebook Development Group (RDG). Since the last update in June 2023, the RDG has drafted the first chapters of the digital euro rulebook in line with the legislative proposal and the digital euro design decisions approved by the Governing Council of the ECB. This first draft of the rulebook is an intermediate version which covers: (i) the functional and operational models, including the end-to-end flows describing the functioning of all use cases and services relating to a digital euro; (ii) the technical scheme requirements depicting a high-level architecture and standards which should potentially be considered in a digital euro landscape; and (iii) the adherence model setting out the rights and obligations of scheme members in accordance with the draft legislation. [Read more at the ECB]

Citi alumni plan bitcoin securities that don’t need US SEC approval

A group of former Citigroup executives is starting to offer bitcoin-backed securities that they say don’t need the blessing of the U.S. Securities and Exchange Commission (SEC). Receipts Depositary Corporation (RDC) plans to issue the bitcoin depositary receipts (BTC DRs) to Qualified Institutional Buyers (QIBs) in transactions exempt from registration under the Securities Act of 1933. BTC DRs follow the same construction as American Depositary Receipts (ADRs), and like ADRs, they operate within U.S.-regulated market infrastructure and are cleared through the Depository Trust Company (DTC). BTC DRs have been issued a CUSIP number and an ISIN. [Read more at Markets Media]

ISDA updates master agreement for tokenized collateral

The International Swaps and Derivatives Association (ISDA) has updated an annex to its master derivatives agreement to support the use of tokenized collateral. The Tokenized Collateral Model Provisions do not purport, and should not be considered, to address all issues and considerations that may be relevant in connection to the transfer or receipt of Tokenized Collateral, including, without limitation, enforceability, regulatory, tax and accounting issues and considerations. [Read more at ISDA]

FYI here are some of my upcoming speaking engagements:

– Digital Euro Conference 2024 (Frankfurt on February 29)[Register here and get a 20% discount with the Kiffmeister20 code]

*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]