Kiffmeister’s #Fintech Daily Digest (20251110)

November 10, 2025November 10, 2025 ~ kiffmeister

Proposed Regulatory Regime for Sterling-Denominated Systemic Stablecoins (BOE)

The Bank of England (BOE) published a consultation paper that outlines its proposed regulatory regime for sterling-denominated systemic stablecoins, digital assets that could pose risks to UK financial stability if widely used for payments. The regime would require systemic stablecoin issuers to hold at least 40% of their backing assets as non-interest-bearing BOE deposits and up to 60% in short-term UK government debt. Issuers must meet robust capital and reserve requirements, with reserves held in trust for holders to protect against market and insolvency risks. Individuals would be subject to £20,000 per-coin holding limits, and businesses to £10 million limits, although retail businesses and intermediaries servicing retail customers (such as crypto-asset trading platforms) could be exempted. Systemic stablecoins would be supervised jointly by the BOE and the Financial Conduct Authority (FCA), but only after HM Treasury (HMT) formally recognizes a stablecoin or its issuer as systemically important. Non-systemic stablecoins (not widely used) will face solo FCA regulation. This consultation closes on February 10, 2026. After considering stakeholder feedback, the BOE will develop and consult on the detailed Codes of Practice in 2026, with finalized rules expected thereafter. [Source: BOE]

Blockchain Price Oracles: Accuracy and Violation Recovery (JoCF)

The Journal of Corporate Finance (JoCF) published a paper that analyzes the accuracy and risk management of blockchain-based price oracles, focusing on Chainlink Price Feeds (CPFs) as the dominant oracle infrastructure for decentralized finance (DeFi), particularly collateralized lending protocols. The authors compile a dataset of over 150 million CPF price observations on Ethereum and match them to centralized exchange benchmarks, estimating how price deviations are shaped by oracle design, reporter behavior, and market conditions. Employing econometric models, they find that CPF price deviations average 57 basis points, and that tighter update parameters and faster heartbeats improve accuracy, while volatility and trading volume increase deviations. A Markov framework reveals most accuracy violations resolve within minutes, with severity and duration affecting the odds of recovery. The study also analyzes user behavior in leading DeFi lending markets, showing that improved oracle accuracy allows users to optimize collateral buffers more effectively, enhancing capital efficiency but with varied effects by user sophistication and asset type. [Source: JoCF]

Upcoming Speaking Engagements:

The Cedi@60 Anniversary Currency Conference (Accra, Ghana, November 17-20) hosted by the Bank of Ghana, in partnership with Currency Research, will celebrate 60 years of the Ghanaian Cedi, bringing together leaders from across Africa and beyond to reflect on the currency’s legacy and chart its digital future. Learn about Ghana’s eCedi pilot and the future of sovereign digital currencies in Africa, and engage with innovators driving mobile money, QR code payments, and financial inclusion across the region. [Register here and get 15% off by using the Kiffmeister15 code!]

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

I produce a monthly digest of digital fiat currency (DFC) developments exclusively for the official sector (e.g., central banks, ministries of finance and international financial institution (e.g., the BIS, IMF, OECD, World Bank)) plus academics and firms that are active in the DFC space (commercial banks, technology providers, consultants, etc.). (DFCs include central bank digital currency (CBDC), stablecoins and tokenized deposits.) It goes out via email on the first business day of every month, and if you’re interested in being on the mailing list, please email me at john@kiffmeister.com.

Kiffmeister’s #Fintech Daily Digest (20251104)

November 4, 2025November 4, 2025 ~ kiffmeister

I’ve updated my tabulation of the 110 central banks that have recently conducted launched, piloted, experimented with and/or researched retail central bank digital currency (#CBDC). This total is unchanged since the end-August update. It doesn’t include the two that started issuing retail CBDC and then shut the platforms down (Ecuador and Finland). Keep in mind that I don’t count all of the individual national central banks that are part of currency unions (e.g., the European or Eastern Caribbean Currency Unions)

RCBDC 202510 Tabulation Download

UBS, Chainlink Execute First Onchain Tokenized Fund Redemption (CoinDesk)

UBS completed the first on-chain redemption of a tokenized fund using Chainlink’s Digital Transfer Agent (DTA). The transaction involved the UBS USD Money Market Investment Fund Token (uMINT) on Ethereum, with DigiFT serving as the on-chain distributor. Through automation and integration of digital and traditional systems, UBS aims to streamline major processes such as order-taking, execution, and settlement, reducing operational complexity and accelerating processing times. This initiative, part of UBS Tokenize, demonstrates how smart contract technology and technical standards can enhance fund operations and expand possibilities for financial product composability, while also illustrating efforts to connect legacy banking systems to blockchain rails using technologies like Chainlink and Swift. [Source: UBS]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20250929)

September 29, 2025September 29, 2025 ~ kiffmeister

SWIFT to Add Blockchain-Based Ledger to its Infrastructure Stack [SWIFT]

SWIFT will integrate a blockchain-based shared ledger into its global financial infrastructure, aiming to enable instant, always-on cross-border payments and enhance digital finance across over 200 countries. Partnering with more than 30 major financial institutions and developing a prototype with Consensys, the initiative will deliver real-time validation, sequencing, and interoperable transactions for regulated tokenized value, while maintaining SWIFT’s focus on resilience, security, and compliance. Supported by an international coalition of leading banks, this move advances SWIFT’s strategy to simultaneously upgrade current payment rails and build new digital pathways. [Source: SWIFT] The prototype will reportedly run on the Ethereum Layer-2 platform Linea. [Source: The Big Whale]

Make the Digital Euro Work for Merchants to Ensure it Meets its True Potential (IRE)

Independent Retail Europe (IRE), part of the Merchant Payments Coalition Europe, urged European policymakers to ensure the digital euro is designed to benefit merchants as well as consumers. The coalition argues for a simple, uniform transaction fee capped at 4 cents, allowing merchants to incentivize adoption and keep payment costs low, and for digital euro transactions to be accessible both online and offline without added complexity. They recommend prioritizing in-store and e-commerce payments over person-to-person use, enabling merchants to hold and use digital euros for supplier payments, and building a single, standardized European payments infrastructure to foster competition and integration. The statement emphasizes that the digital euro’s potential for innovation, cost reduction, and resilience depends on transparent, inclusive, and merchant-focused legislative and technical decisions. [Source: IRE]

Upcoming Speaking Engagements:

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

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

Kiffmeister’s #Fintech Daily Digest (20250927)

September 27, 2025September 27, 2025 ~ kiffmeister

UK Finance Announces Live Tokenized Sterling Deposit Pilot (UK Finance)

UK Finance is launching a collaborative industry pilot to deliver live transactions using tokenized sterling deposits (GBTD). Building on lessons from the U.K. Regulated Liability Network (RLN) project, the pilot will test three use cases—person-to-person (P2P) online marketplace payments, remortgaging, and digital asset settlement—running until mid-2026. Major banks including Barclays, HSBC, Lloyds, NatWest, Nationwide, and Santander are participating with support from Quant, EY, and Linklaters. The initiative aims to improve payment efficiency, fraud reduction, and settlement transparency, positioning the United Kingdom as a leader in programmable digital money and supporting broader government innovation goals such as the National Payments Vision. The platform will be interoperable across digital payment systems, and UK Finance will keep stakeholders updated through events and webinars. [Source: UK Finance]

Canton Network and Chainlink Enter Into Strategic Partnership (Canton)

Canton Network and Chainlink have announced a strategic partnership aimed at accelerating institutional adoption of blockchain technology. The Canton Network, is a public, permissionless blockchain purpose-built for institutional finance, and Chainlink is an oracle platform that connects blockchains with real-world data, providing secure and reliable data feeds and interoperability to power decentralized finance and institutional blockchain use cases. Through this collaboration, Canton Network joins the Chainlink Scale program to integrate Chainlink’s data streams, smart data (such as Proof of Reserve and NAVLink), and cross-chain interoperability protocol, strengthening Canton’s infrastructure for institutional finance. Chainlink Labs will participate as a Super Validator in the Canton Network, enhancing its governance and operational resilience. Canton expects this partnership to increase cost-efficiency, transparency, and connectivity for financial institutions, supporting innovation in tokenization, stablecoins, payments, and digital identity. [Source: Canton]

SWIFT Reportedly Chooses Linea for Blockchain Testing (The Big Whale)

SWIFT has reportedly launched a blockchain payments trial using the Ethereum Layer 2 platform Linea, partnering with several major banks (including BNP Paribas and BNY). The Linea platform, developed by ConsenSys, is designed to enhance Ethereum’s scalability and privacy. This pilot aims to move SWIFT’s traditional messaging and settlement system fully on-chain, combining payment instructions and settlement in one transaction to boost transparency and reduce costs. The trial, while still early, signals SWIFT’s intent to modernize global payments and integrate blockchain into traditional finance, while securely and efficiently working with existing banking systems. [Source: The Big Whale]

Upcoming Speaking Engagements:

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

Kiffmeister’s #Fintech Daily Digest (20250920)

September 20, 2025September 20, 2025 ~ kiffmeister

Chile’s Central Bank Considers CBDC to Settle Tokenized Assets (BCCh)

The Central Bank of Chile (BCCh) is preparing to launch a proof of concept to simulate the transfer of tokenized assets between agents on a blockchain ledger using a wholesale central bank digital currency (CBDC) as the settlement instrument. [Source: BCCh]

Optimal Policy for Financial Market Tokenization (IMF)

The IMF published a paper that analyzes how policymakers should approach the emergence of broker-led platforms that tokenize financial assets, promising efficiency gains but risking market fragmentation. The authors model competing brokers—each with varying numbers of clients—who can form coalitions to set up tokenized markets offering faster, cheaper settlement, but which may exclude rivals. The resulting equilibrium tends to produce partial coalitions, meaning either excessive investment in platforms (where private incentives for trade diversion outweigh social costs) or insufficient tokenization (excluding brokers who would increase welfare), while the welfare-maximizing outcome is either full participation or no tokenization. The analysis shows that neither mandating interoperability among platforms nor public-private cost-sharing alone is sufficient for optimal market structure—but their combination is. Even if open-access (public blockchain) platforms are allowed, policy intervention is still required to achieve the social optimum. Thus, the study suggests efficiency gains from tokenization are real, but policy must carefully balance interoperability mandates and cost sharing to avoid market fragmentation or inefficient investment. [Source: IMF]

Blockchain Consensus Mechanisms: A Primer for Supervisors (IMF)

The IMF published an update of a 2022 paper on blockchain consensus mechanisms such as proof-of-work, proof-of-stake, and Solana’s Tower BFT/proof-of-history, emphasizing their mechanics, incentives, and supervisory risks. The paper details operational risks (e.g., centralization of mining, energy use, network attacks), economic and market integrity challenges (e.g., validator dominance, slashing, liquid staking, maximal extractable value), and settlement finality differences across major networks. Additionally, it reviews scalability solutions (state channels, rollups, sidechains), highlighting the “scalability trilemma” and new complexities and risks these layer 2 solutions introduce. It notes regulatory challenges around staking, embedded supervision, and the trend toward distinguishing mature (decentralized) vs. centralized networks in regulation. [Source: IMF]

Upcoming Speaking Engagements:

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

Kiffmeister’s #Fintech Daily Digest (20250901)

September 1, 2025September 1, 2025 ~ kiffmeister

Japan Post Bank to Consider Handling Tokenized Deposits (JPB)

Japan Post Bank (JPB) is considering offering blockchain-based tokenized deposits to customers by March 31, 2026 (the end of its fiscal year), aiming to enable instant and transparent settlement of non-fungible tokens (NFTs) and securities tokens. They will be eligible for deposit insurance. They will use a platform provided by DeCurret DCP. [Source: JPB]

Paypal Glitch – Direct Debits Worth Billions Stopped (SZ)

According to Sueddeutsche Zeitung (SZ) a significant technical failure in PayPal’s security system recently (in late August 2025) allowed direct debit transactions to go through without the usual fraud checks, prompting banks to halt billions of euros in payments to prevent potential fraud. This disruption primarily affected German customers and merchants, causing delays in legitimate transactions. Although PayPal states the issue has been fixed and systems are back to normal, consumer advocates recommend users check their accounts for unauthorized debits. European regulations allow for easy reversal of unauthorized payments, and regulatory authorities in Luxembourg, where PayPal Europe is based, have been notified about the incident. PayPal is a crucial online payment provider in Germany, making this outage especially impactful for the region. [Source: SZ]

Upcoming Speaking Engagements:

The CB+DC Conference (Nassau, Bahamas, September 9-11) is a premier gathering centered on CBDCs, tokenized assets, and stablecoins. It provides a forum for central bankers, commercial bankers, technology innovators, policymakers, and academics to explore the latest advancements in digital currency, engage with experts and peers, and discuss the future of digital currency. [Register here but before you do, email me at john@kiffmeister.com for a 15% discount]

Kiffmeister’s #Fintech Daily Digest (20250815)

August 15, 2025August 15, 2025 ~ kiffmeister

Circle Launching Arc Open Layer-1 Blockchain (Circle)

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

Digital Dollar: Privacy and Transparency Dilemma (UC Law)

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

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

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

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

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

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

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

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20250814)

August 14, 2025August 14, 2025 ~ kiffmeister

Industry Working Group Completes On-Chain US Treasury Financing on Canton Network (Canton)

Digital Asset and a consortium of major financial firms executed a fully on-chain U.S. Treasury financing (repo) on the Canton Network, settling atomically and near-instantly via Tradeweb outside traditional market hours using the USDC stablecoin for cash and tokenized Treasuries as collateral, with underlying assets custodied at Depository Trust & Clearing Corporation (DTCC). Participants included Bank of America, Circle, Citadel Securities, Cumberland DRW, Hidden Road, Société Générale, Tradeweb, and Virtu Financial, demonstrating true 24/7 liquidity and eliminating the limitations of off-ledger cash and market-hour restrictions seen in legacy implementations– all of which is critical to creating a real, always-available, interoperable capital markets infrastructure. [Read more at Canton]

2024 Canadian Methods-of-Payment Survey Report (Bank of Canada)

According to the Bank of Canada, in 2024, Canadians’ cash use remained stable at roughly one-fifth of transaction volume and about one-tenth of value, holding its place behind credit and debit at the point of sale; meanwhile, nominal cash holdings ticked up (with more $50/$100 notes on hand), and withdrawals rose across ABMs, branches, and cashback though still below pre‑2017 levels. Most people report good access to cash (ABMs and branches), strong note quality perceptions, and limited appetite to go fully cashless—nearly four in five have no plans to abandon cash, and even many “cashless” consumers still keep some on hand. Cash transactions skew toward lower‑value purchases (average around the mid‑$20s over the diary window), while contactless cards and rising mobile payments continue to capture higher shares of in‑person spending; merchant acceptance of cash remains high, and the overall post‑pandemic leveling suggests cash persists as a meaningful, resilient payment option despite ongoing growth in digital alternatives. [Read more at the Bank of Canada]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20250710)

July 10, 2025July 10, 2025 ~ kiffmeister

Myanmar Central Bank to Introduce Digital Currency (Myanmar Now)

The Central Bank of Myanmar (CBM) reportedly plans to introduce a central bank digital currency to reduce the use of banknotes. The CBM has formed a committee of 13 members, including a deputy governor, to study and analyse the best methods, technologies, and regulatory frameworks to use in ensuring the successful introduction of the CBDC into the economy, as well as assess its potential impacts on payments systems and monetary policy. The committee will also be responsible for overseeing and maintaining the infrastructural foundations, funding, and regulation of the digital currency after it is introduced. [Read more at Myanmar Now]

Pakistan Planning CBDC Pilot (Ledger Insights)

The State Bank of Pakistan is reportedly planning a central bank digital currency (CBDC) pilot. Governor Jameel Ahmad said that the central bank is building up appropriate capacity and hoped to roll out a pilot soon. However, this should be taken with a grain of salt, since the central bank has twice before made false starts to CBDC work, most recently in 2023. [Read more at Ledger Insights]

RBA and DFCRC Project Acacia Update (RBA)

The Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) provided an update on Project Acacia. It will explore how different forms of digital money and associated infrastructure could support the development of wholesale tokenized asset markets in Australia. 19 pilot use cases, and 5 proof-of-concept use cases, have been conditionally selected for this next stage of the project to take place over six months. The use cases involve a range of asset classes, including fixed income, private markets, trade receivables and carbon credits. Proposed settlement assets for the use cases include stablecoins, bank deposit tokens, and pilot wholesale central bank digital currency (CBDC), as well as new ways of using banks’ existing exchange settlement accounts at the RBA. Issuance of pilot wholesale CBDC for testing use cases will occur on a range of private and public-permissioned distributed ledger technology (DLT) platforms. The Australian Securities and Investments Commission (ASIC) will provide regulatory relief to participants to support and streamline the pilot. [Read more at the RBA]

Stablecoins are Trending, But What Frictions and Risks are Getting Overlooked? (Atlantic Council)

The Atlantic Council published an article by Ashley Lannquist that discusses the growing popularity of stablecoins, while highlighting the risks and frictions. The article points out regulatory gaps, potential financial instability, and the lack of transparency in reserve backing, which could lead to liquidity crises if many users redeem stablecoins simultaneously. It also examines geopolitical concerns, such as the use of stablecoins to evade sanctions, and operational risks like cybersecurity threats. Also, despite their utility in cross-border payments and decentralized finance (DeFi), stablecoins’ value for everyday payments remains to be seen. [Read more at the Atlantic Council]

Latest Stablecoin Depeg Spotlights Need for Better Attestation (Ledger Insights)

Falcon USD (USDf), a crypto-backed, overcollateralized stablecoin issued by Falcon Finance, a subsidiary of DWF Labs experienced a depegging event, with its price dropping as low as $0.98 and briefly to $0.9432 before recovering to around $0.995. This incident has raised concerns about the transparency and quality of the collateral backing USDf, as well as the potential risk of a broader stablecoin crisis reminiscent of the Terra (LUNA) collapse. Critics and risk consultants have pointed to a lack of clarity regarding the composition and liquidity of USDf’s reserves, and have questioned its inclusion as collateral on DeFi lending platforms. In response to the depegging and growing scrutiny, DWF Labs’ CEO has pledged to provide a more detailed breakdown of the assets backing USDf. [Read more at Ledger Insights]

Why Banks Need Regulatory Clarity on Permissionless Blockchains (Fireblocks)

Fireblocks published an article about the regulatory barriers that prevent banks from effectively utilizing permissionless blockchains, despite their potential benefits. For example, Basel III’s emphasis on knowing all node operators results in a maximum 1250% risk weight for tokenized assets on public blockchains, making them approximately 12 times more expensive to hold than traditional assets. The article contends that these regulatory mismatches discourage banks from adopting infrastructure that could provide trust through decentralization, continuous innovation, and programmable finance capabilities. To address these challenges, the author advocates for more nuanced regulatory approaches that distinguish between different types of risks, focus on how banks actually use blockchain networks rather than the networks’ permission models, and recognize that governance and compliance controls can be embedded at the token or application layer rather than requiring control over the entire network infrastructure. [Read more at Fireblocks]

Upcoming Speaking Engagements:

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 (20250702)

July 3, 2025 ~ kiffmeister

A Macroeconomic Model of Remunerated Central Bank Digital Currency (NBER)

The U.S. National Bureau of Research (NBER) published a paper that develops a calibrated New Keynesian DSGE model featuring monopolistic banks to assess the macroeconomic impact of introducing a remunerated central bank digital currency (CBDC). The analysis shows that households gain from enhanced liquidity services and higher deposit interest rates due to reduced bank market power, while banks experience lower profits and lending volumes. Exploring economies across different interest rate regimes, the authors identify significant welfare improvements from remunerated CBDC adoption, especially in economies with high interest rates where banks have substantial market power in deposit markets. They propose a practical CBDC interest-rate setting rule—setting it as the greater of zero and the policy rate minus one percentage point—which closely approximates the optimal rate found in their model. [Read more at the NBER]

Ripple Follows Circle in Bid for US Banking License (Decrypt)

Ripple has filed an application with the Office of the Comptroller of the Currency (OCC) to obtain a national bank charter, following in the footsteps of Circle’s similar application just two days earlier. The application comes as stablecoin issuers prepare for expected regulatory requirements under the GENIUS Act legislation, which recently passed the Senate. Ripple has also filed for a Federal Reserve master account through its Standard Custody subsidiary, which would allow it to hold RLUSD stablecoin reserves directly with the Fed and provide more flexibility for processing digital assets. [Read more at X]

Peter Thiel joins tech billionaires backing new lender Erebor to rival Silicon Valley Bank (FT)

A group of tech billionaires including Palmer Luckey of Anduril and Joe Lonsdale of 8VC are launching Erebor, a new US bank designed to serve the gap left by Silicon Valley Bank’s collapse in 2023. Backed by high-profile investors including Peter Thiel’s Founders Fund, the bank aims to serve tech companies and crypto businesses that traditional banks often reject, with a particular focus on virtual currencies, AI, defense, and manufacturing companies. Erebor has applied for a national bank charter and plans to differentiate itself by working with underserved customers who lack sufficient access to credit, with stablecoin transactions expected to be a significant part of its operations. The bank will be headquartered in Columbus, Ohio, with a New York office, and will operate primarily through digital channels. [Read more at the FT]

Moody’s Brings Credit Ratings Onchain via Solana (CoinTelegraph)

Moody’s partnered with fintech startup Alphaledger in June 2025 to run a pilot program exploring how traditional credit ratings could be integrated into blockchain systems using the Solana network. The experiment involved creating a tokenized municipal bond on Solana, with Moody’s providing a real credit rating that was then pushed directly onto the blockchain via API, making it permanently embedded and publicly viewable as part of the token’s metadata. This allows smart contracts and decentralized applications to automatically query bond ratings without needing external verification, potentially enabling real-time credit assessments, automated compliance, and new forms of programmable financial infrastructure. [Read more at CoinTelegraph]

Upcoming Speaking Engagements: