Tag: Bitcoin

Kiffmeister’s #Fintech Daily Digest (20231113)*

~ kiffmeister ~ Leave a comment

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 (20230914)*

~ kiffmeister

Franklin Templeton files for Bitcoin ETF

Asset manager Franklin Templeton, which is one of the world’s largest asset managers, filed an application for a spot Bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC) on September 12, 2023. The product would be called “The Franklin Bitcoin ETF” and its shares would be listed and traded on the CBOE BZX Exchange. Coinbase would be the fund’s custodian and surveillance-sharing partner. [Read more at Decrypt]

Fintech funding in Europe stumbles 70% YoY

According to Finch Capital’s 8th Annual State of European Fintech Report, European fintech companies secured only EUR 4.6 billion in funding in H1 2023, versus the EUR 15.8 billion raised during the same period in 2022. The deal count in H1 2023 dropped 48% to 463. The massive drop was mainly driven by a decreased number of mega rounds, a retreat in activity from American investors, and a return to investment fundamentals. [Read more at Finch Capital]

Vanuatu launches VANKLIA, a new national payment system

The Reserve Bank of Vanuatu launched a new national digital payment platform, VANKLIA, to strengthen its digital economy and promote financial inclusion. The VANKLIA system is comprised of a real-time gross settlement (RTGS) component and an automated clearing house (ACH) component which facilitates the clearing of low value, high volume electronic fund transfers for batch payments. [Read more at the International Finance Corporation]

*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 (20230831)*

~ kiffmeister

SWIFT hails success of blockchain interoperability pilot

SWIFT published the results from a series of experiments that show its infrastructure can seamlessly facilitate the transfer of tokenized value across multiple public and private blockchains. Working with more than a dozen major financial institutions and market infrastructures, SWIFT demonstrated that it can provide a single point of access to multiple networks using existing, secure infrastructure. Chainlink  was used as an enterprise abstraction layer to securely connect the SWIFT network to the Ethereum Sepolia network, while Chainlink’s Cross-Chain Interoperability Protocol enabled complete interoperability between the source and destination blockchains. [Read more at SWIFT]

Binance to ‘gradually’ end support for BUSD products

Binance will “gradually” end support for its BUSD stablecoin, removing it from spot and margin trading pairs. Users have been asked to convert their BUSD into other assets by February next year. Binance is also delisting BUSD as a loanable asset on September 6 and will cease withdrawals of Binance-peg BUSD tokens via BNB Chain, Avalanche, Polygon and Tron on September 7. A decision to end support for BUSD has been expected since BUSD issuer Paxos was ordered to stop minting the coin in February. [Read more at Binance]

The controversial business of cash-to-crypto Bitcoin ATMs

The Kansas City Federal Reserve published an article that surveys the data available on the multi-billion Bitcoin ATM (BTM) industry in the United States and reviews its overall shape and customer base. It finds that the industry continues to grow, with the number of BTMs increasing after the “crypto winter” retrenchment. Despite high fees, consumers seem likely to use them—perhaps for remittances, investment, or both. [Read more at the Kansas City Fed]

*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 (20230829)*

~ kiffmeister

Grayscale was unreasonably denied its Bitcoin ETF, court rules

The United States Court of Appeals for the DC Circuit ruled in favor of Grayscale in its lawsuit challenging the Securities and Exchange Commission’s (SEC’s) decision to deny the conversion of Grayscale Bitcoin Trust (GBTC) to an exchange-traded fund (ETF). The SEC has previously approved ETFs that track Bitcoin futures, but not spot ETFs, which directly track Bitcoin price. If GBTC is converted to an ETF investors would be able to trade shares more freely than the closed-end trust currently allows, and it would be easier to create and destroy shares, so the discount between Bitcoin prices and GBTC market values would vanish (see graphic below). [Read more at the Verge]

Brazil’s CBDC falls behind schedule as central bank suspends innovation lab

Banco Central do Brasil (BCB) is rumored to be delaying its digital real DREX central bank digital currency (CBDC) pilot by three months, and suspended its LIFT Lab innovation project indefinitely. The delay is being attributed to a slow start in onboarding pilot participants and because the BCB isn’t yet satisfied with the privacy preserving technology it plans to use. [Read more at Ledger Insights]

*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 (20230712)*

~ kiffmeister

IMF warns on Marshall Islands’ Fintech plans

IMF staff, in their concluding statement of their 2023 Article IV consultation mission, expressed concerns about the Fintech initiatives of the Republic of the Marshall Islands (RMI). These included the enactment of the DAO Act and the move to start registration of decentralized autonomous organizations (DAOs), and the potential launch of a stablecoin. Concerns included capacity constraints and questions regarding the understanding of the authorities to adequately regulate and supervise these initiatives. IMF staff also encouraged the authorities to expeditiously enact the SOV Repeal Bill. (In 2018 the RMI legislature passed the SOV Act making the RMI government-backed SOV crypto-asset a second legal tender, in addition to the US dollar, about which IMF staff had expressed reservations.) [Read more at the IMF]

The BIS on the crypto ecosystem key elements and risks

The BIS published a report on the key elements of the crypto ecosystem. It concludes that the crypto ecosystem is characterized by congestion and high fees, which lead to fragmentation. And despite an original decentralization ethos, crypto and decentralized finance (DeFi) often feature substantial de-facto centralization. Also, while DeFi mostly replicates services offered by the traditional financial system, it amplifies known risks. Moreover, as DeFi does not finance activity in the real economy, its growth is driven by the speculative influx of new users, with substantial risks to investors. [Read more at the BIS]

UK consultation on the digital securities sandbox

The U.K. government is consulting on Digital Securities Sandbox (DSS) in which the financial industry will be able to set up and test financial market infrastructures that utilize digital asset technology. The DSS will enable firms to set up and operate financial market infrastructures (FMIs) using innovative digital asset technology, performing the activities of a central securities depository (specifically notary, settlement and maintenance), and operating a trading venue under a temporarily modified legislative and regulatory framework. The consultation invites feedback from industry on the approach to the DSS, and seeks feedback on some further policy and legal issues. [Read more at HM Treasury]

Nuggets working with Bank of England on privacy layer for digital pound

Payments platform Nuggets is working with the Bank of England to develop a privacy and identity layer for a potential digital pound. The platform, which enables decentralized identity, plans to design a private and secure system to prevent the tracking and correlation of transactions, as well as prevent fraud and money laundering. Nuggets said that it plans to implement zero-knowledge proofs on its privacy layer, which will enable people to verify their identity without sharing their data. [Read more at Coindesk]

Grayscale bitcoin shares discount lowest since last summer

The Grayscale Bitcoin Trust (GBTC) discount continues to shrink amid a wave of U.S. exchange-traded fund (ETF) applications. Grayscale has attempted to convert GBTC from a closed-end fund into an ETF to enable redemptions at bitcoin’s market price, but the U.S. Securities and Exchange Commission (SEC) has denied approval so far. The inability of investors to redeem GBTC is the primary reason for the GBTC discount. However, BlackRock’s Bitcoin ETF filing on June 16 revived the market’s hope around ETF approvals. [Read more at Decrypt]

*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.

Upcoming conferences, webinars and speaking engagements:

  • I’ll be lecturing at the Digital Euro Association (DEA) Digital Money Academy on July 27, 2023. [Register here]

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 (20230509)

~ kiffmeister

Bitcoin Based-Memecoin Surge Seen Driving Binance Anxiety

The bitcoin blockchain is being clogged up by a recent spate of Bitcoin-based memecoins such as Pepe, driving up transaction fees and renewing concern about Binance. Several memecoins use bitcoin for transaction settlement, using a new BRC-20 bitcoin-based token standard. Binance halted withdrawals of Bitcoin twice in less than 12 hours on May 7, 2023, citing congestion on the network, saying that higher fees have been applied to pending transactions so they get picked up by Bitcoin miners. [Read more at Bloomberg]

Upcoming conferences, webinars and speaking engagements:

Kiffmeister’s global 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 for any of you out there who work for a central bank, ministry of finance or international financial institution 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 (20230208)

~ kiffmeister

Brazil central bank reportedly to launch its digital currency in 2024

Banco Central do Brasil (BCB) reportedly aims to launch its central bank digital currency (CBDC) in 2024. It will be designed to encourage banks to tokenize their assets, so it sounds like it’s being designed for niche cases, rather than general purpose usage.The huge popularity of the BCB’s PIX payment system might argue for such an approach. Its use now surpasses transactions with credit and debit cards in the country. [Read more at Reuters] [Sandra Mianda has provided a great PIX explainer and infographic on LinkedIn]

BIS Innovation Hub unveils new stablecoin, DeFi, CBDC projects

The BIS Innovation Hub (BISIH) has unveiled its 2023 work program. This includes previously unannounced projects on stablecoins, DeFi and CBDC, including Project Pyxtrial at the London Centre that will monitor stablecoins to ensure that the backing assets at least match the stablecoin issuance. And “going into its fourth year of life, the BIS Innovation Hub is reaching a cruising altitude, with 21 ongoing and five concluded projects. The Hub will increase the integration of its global network with additional cross-centre projects such as Mariana, which connects the Singapore, Swiss and upcoming Eurosystem centres, and others.” [Read more at the BISIH]

Is the Bitcoin Lightning Network the Future of Payments?

etonec has published a Bitcoin Lightning network explainer. Although Bitcoin enables global transactions without intermediaries, settling all payments via the Bitcoin blockchain has limitations. Lightning can significantly increase payment throughput. Also the possibility to send other assets, such as stablecoins, via the Lightning network, might positively impact its development. [Read more at etonec]

Dubai releases crypto regulations for virtual asset service providers

Dubai’s Virtual Asset Regulatory Authority (VARA) has issued new guidelines for virtual asset service providers (VASPs) operating within the emirate. VARA’s “Full Market Product Regulations” include four compulsory rulebooks and activity-specific rulebooks that lay down the rules for operating VASPs. The rules excluding those operating under the Dubai International Financial Centre (DIFC), a free zone with its own regulator. [Read more at VARA]

Upcoming conferences, webinars and speaking engagements:

Kiffmeister’s global 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 for any of you out there who work for a central bank, ministry of finance or international financial institution 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 (20230130)

~ kiffmeister

I’ve updated my tabulation of the 92 central banks that have issued, piloted, experimented with and/or researched retail central bank digital currency (CBDC). [See it here]

Tailored CBDC technical assistance in emerging markets: a critical gap in the pursuit of reaching the SDGs

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) published a stocktaking paper that I co-authored on the degrees of CBDC technical assistance (TA) support for lower- and middle-income countries (LMICs).  It highlights the different options for CBDC support for LMIC authorities in their general-purpose/retail and wholesale CBDC exploration journeys. It also shows how demand outstrips supply in fit-for- purpose assistance and the important role of development partners in closing this gap in order to ensure that CBDCs can meet the expectations in relation to achieving the sustainable development goals (SDGs). Also the paper highlights the remaining gaps in optimally equipping authorities in LMICs in their CBDC pursuit. [Read more at Cenfri.org]

Montenegro starting work on a central bank- or government-issued stablecoin

Prime Minister Dritan Abazovic, announced that, in collaboration with Ripple and the central bank, the government is starting work on a digital currency or stablecoin for Montenegro. Montenegro uses the EUR, despite not being a member of the Eurozone, although it is a candidate country for European Union (EU) membership. Is this a CBDC? Palau is working on something similar to this but Palau doesn’t have a central bank so giving it the thumbs down seems logical. However, even though what they propose is very similar to Palau’s concept, Montenegro does have a central bank and the stablecoin will be presumably backed and issued by the central bank, and denominated in the country’s unit of account. What do others think. Is this a CBDC project? [Read more on Twitter]

UPI – The golden child of payments in India

Arthur Bedel provides a nice explainer on the National Payments Corporation Of India (NPCI) Unified Payment Interface (UPI), the fastest growing payment system in the world. The UPI allows users to transfer money between bank accounts across a single window. It’s a system that powers multiple bank accounts into a single mobile app. This means you can send or receive money or scan a QR code to pay an individual, a merchant or a service provider to shop, pay bills or authorize payments. It was launched in 2016, to reduce the use of cash in the India. The NPCI is governed by the Reserve Bank of India (RBI), and its primary goal is to drive India towards becoming a digital economy. [Read more on LinkedIn]

Data shows 50% of bitcoin hashrate controlled by two mining pools

Bitcoin hashrate is becoming highly centralized, with a few mining pools controlling most of the blockchain mining power. The latest data from Mempool indicates that over 50% of the total hashrate is held by Foundry USA and Antpool. The graph below shows that over 80% of Bitcoin’s mining power is concentrated among just 5 pools. This contrasts with the beginning of 2022, when these five mining pools barely exceeded 60% of the hashrate. This poses significant dangers to the cryptocurrency, because the miners could agree to reject transactions that do not meet a specific parameter leading to a 51% attack. [Read more at Bitcoinist]  [Use pie chart!]

Upcoming conferences, webinars and speaking engagements:

  • I’ll be speaking at SettleMint’s “central banks leading the way in the decentralized world” webinar on February 1 at 17:00 GST. [Register here]
  • I’ll be moderating a panel on “what happens when the lights go out…different schemes for offline functionality” at the in-person Digital Currency Conference (DCC) in Mexico City on May 18. [Register here]

Kiffmeister’s global 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 for any of you out there who work for a central bank, ministry of finance or international financial institution 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 (20221201)

~ kiffmeister

ECB: The end is nigh for Bitcoin, “rarely used for legal transactions”

The European Central Bank (ECB) has published a blog post that predicts the demise of Bitcoin. Authored by Ulrich Bindseil and Jürgen Schaaf, entitled “Bitcoin’s Last Stand,” the article claims that Bitcoin is in its “last gasp before the road to irrelevance.” Noting that Bitcoin is rarely used real-world transactions, the authors hammer Bitcoin as “cumbersome, slow and expensive,” adding that “the market valuation of Bitcoin is therefore based purely on speculation.” It sounds like someone woke up on the wrong side of the bed! [Read more at the ECB]

Ensuring adoption of central bank digital currencies – An easy task or a Gordian knot?

The ECB published a paper that surveys the key elements involved in the adoption of new means of payment and discusses failed and ongoing initiatives with public digital money. It concludes that ensuring the desired level of adoption of retail central bank digital currency (CBDC) may impose significant constraints on central bank design choices and policy goals. In fact, in some settings, central banks may find themselves on the horns of a dilemma in seeking to balance the needs to (i) preserve the central bank’s hierarchy of policy goals, (ii) increase the chances of adoption and use of CBDCs by consumers and retailers, and (iii) avoid adverse economic effects. [Read more at the ECB]

The 3rd CCAF global Fintech regulator survey

The Cambridge Centre for Alternative Finance {CCAF} published its third global fintech regulator survey. It aims to understand the extent to which policymakers continue to be impacted by the COVID-19 pandemic as we move away from the crisis. The survey provides insights into the types of consumer risks that have emerged because of the pandemic and the impact of such risks on policy objectives. It also explores the important role of IT systems and infrastructures in supporting oversight and supervision across fintech verticals. [Read more at the CCAF]

Kiffmeister’s Global 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 for any of you out there who work for a central bank, ministry of finance or international financial institution 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.

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 (20221127)

~ kiffmeister

Hedging sanctions risk: Cryptocurrency in central bank reserves

A paper by the Harvard University’s Matthew Ferranti explores the potential for Bitcoin to serve as an alternative central bank reserve currency asset to ex-ante hedge against the risk of financial sanctions. It uses a dynamic Bayesian copula model to simulate the joint returns of Bitcoin and other reserve assets under a wide range of plausible sanctions probabilities. Assuming mean-variance preferences, a modest risk of sanctions significantly increases optimal gold and Bitcoin allocations. If a central bank cannot acquire sufficient physical gold to hedge its sanctions risk, the optimal Bitcoin share rises further, suggesting that gold and Bitcoin are imperfect substitutes. It concludes that sanctions risk may diminish the appeal of US Treasuries, propel broader diversification in central bank reserves, and bolster the long-run fundamental value of both cryptocurrency and gold. [Download the paper on Matthew Ferranti’s website]

How crypto goes to zero

A recent Economist article goes through the most likely path towards zero crypto – basically ending at the point where no one is using it. It rejects the attack-and-shut-down the major crypto-assets because that would essentially involve gaining 51% control of the computational power or value of tokens staked to verify transactions, which would be extraordinarily expensive, even at today’s depressed prices. The more likely scenario, according to the article, is the collapse and generally a massive loss in faith in the exchanges and decentralized finance (DeFi) lending protocols. This could lead to further collapses of crypto prices, making 51% attacks more feasible, triggering a self-reinforcing crash as confidence in the protocols tanks. [Read more at the Economist]

Digital Euro Association Digital Money Academy

I will be discussing global central bank digital currency (CBDC) developments at the Digital Euro Association’s Digital Money Academy on November 29. If you want to get into CBDCs, register for the Academy here!

Kiffmeister’s Global 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 for any of you out there who work for a central bank, ministry of finance or international financial institution 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.

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]