Tag: CBDC

Kiffmeister’s #Fintech Daily Digest (20260508)

~ kiffmeister

To Tokenize, or Not to Tokenize: The Design Question for a CBDC (Bank of Canada)

The Bank of Canada published a paper that develops a general equilibrium model to assess whether a central bank digital currency (CBDC) should be tokenized—deployable on programmable ledgers to compete with stablecoins—or non-tokenized and confined to off-chain markets, where traditional and crypto banks coexist. Tokenization matters for equilibrium only when collateral use differs across sectors; the three governing structural parameters are crypto-bank pledgeability, crypto-asset scarcity, and the social valuation of on-chain transactions. For institutional design, tokenized CBDC crowds out stablecoins and improves welfare when crypto banks are unreliable and crypto collateral is scarce, whereas non-tokenized CBDC may dominate when on-chain activity is less socially desirable or bond-collateral reallocation to the crypto sector is itself welfare-improving; both forms reduce bank lending, posing a payment-efficiency-versus-intermediation trade-off. [Bank of Canada]

Patterns and Determinants of Global Cryptocurrency Flows (Bank of Canada)

The Bank of Canada published a paper that uses Chainalysis on-chain data for up to 162 countries (2020–2023) to document cross-border Bitcoin flow patterns, identify their determinants, and extend the analysis to four major stablecoins. Bitcoin flows behave distinctly from traditional capital flows in level and volatility, with net outflows concentrated in emerging market economies and net inflows in advanced economies. Panel analysis identifies seven motives—adverse current and past macro and financial conditions, weak institutions, underdeveloped financial systems, payments and remittances demand, capital control circumvention, and sanctions evasion—of which macro conditions and remittances are most robust; a COVID-19 difference-in-differences exercise corroborates both. The remittances finding suggests cryptocurrency fills gaps in cross-border payment infrastructure, while evidence of capital control and sanctions circumvention supports closer regulatory oversight; the Chainalysis country-attribution methodology, which relies on web traffic as a proxy for user location, remains an unresolved data limitation. [Bank of Canada]

I am honored to have been given the opportunity to contribute a chapter to the soon-to-be released book, Tokenisation of Money: From Fiat Currencies to Stablecoins, published by Springer! Expertly edited by Prof. Selim Yazıcı, Prof. C. Coşkun Küçüközmen, and Dr. Michael Salmony, it serves as a critical handbook for navigating the profound transformation of the global financial services industry. At a time when there is substantial confusion regarding new digital instruments, this book distinguishes reality from hype across the dimensions of CBDCs, stablecoins, and tokenized deposits. In my contribution, I provide an overview and reality check on global retail central bank digital currency (CBDC) developments. The book will be available via digital platforms by the end of May and you can pre-order the hard cover version here: https://link.springer.com/book/9783032229458!

FYI 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 (20260505)

~ kiffmeister

Legal Tender -A Barbarous Relic in the Digital Currency Era (SSRN)

In a paper posted on SSRN, Christian Pfister argues that granting legal tender status to retail central bank digital currency (CBDC) in advanced economies is a conceptually weak and potentially distortionary extension of a historically contingent, often obsolete institution. The paper critiques recent IMF legal analyses for presuming a “digital cash” equivalence and for conflating the unit of account, the issuer, and specific payment instruments when defining legal tender. Pfister shows that modern payment efficiency, financial inclusion, and safety can be achieved through regulation and public infrastructure without legal tender, and that combining legal tender status with regulated aggressive pricing of public rails could crowd out deposits, weaken bank intermediation, and recreate public “walled gardens.” This raises a core design question: whether any residual role for legal tender should attach to the unit of account, central bank liabilities, or particular instruments, and how to do so without impairing monetary transmission, competition, or innovation. [SSRN]

Digital Money and the Architecture of Trust (Banca d’Italia)

Chiara Scotti, Deputy Governor of Banca d’Italia, argues that debates on central bank digital currencies (CBDCs), stablecoins and tokenized deposits must shift from instruments to system architecture, with trust and “singleness of money” anchored in central bank money and regulatory design. She proposes a seven‑dimensional framework (efficiency, trust/convertibility, stability, market functioning, intermediation, transmission, regulation) focused on bearer versus non‑bearer design, settlement inside or outside the central bank core, and reserve structures. This framing highlights unresolved questions about how tokenized private monies reshape monetary policy transmission, safe‑asset demand and bank funding, and whether European tokenization should extend existing infrastructures such as the Single Euro Payments Area rather than rely on new private rails. [Banca d’Italia]

Progressing Fund Tokenisation (UK FCA)

The UK Financial Conduct Authority (UK FCA)sets out final rules and guidance to accelerate tokenisation of authorised funds and introduce an optional “direct to fund” dealing model using issues-and-cancellations accounts instead of manager box dealing. The statement clarifies that on-chain ledgers can be primary books and records, public distributed ledgers and smart contracts are permitted subject to outcome‑based controls, and tokenised units may sit across multiple blockchains within a class. It tightens ring‑fencing around umbrella cash by constraining omnibus issue-and-cancellation accounts under protected cell legislation, while dropping a proposed mandatory client‑money fallback and instead imposing enhanced reconciliation and unattributed‑cash rules. The package signals openness to stablecoins and tokenised gilts for settlement and operations under an interim waiver‑based regime, while deferring full alignment with the new crypto-asset framework and future composable “tokenised portfolio management” models. [UK FCA]

The BCEAO Invites Submissions for Research on Financial Inclusion (BCEAO)

The Central Bank of West African States (BCEAO) is inviting submissions for the 2026 Abdoulaye FADIGA Prize, which rewards high‑quality economic research on West African Economic and Monetary Union (WAEMU) economies. It explicitly invites research on financial inclusion and digital innovation, including work on how cryptocurrencies, mobile money, central bank digital currencies, and fintech can expand access to financial services in WAEMU, while rigorously assessing associated risks, regulatory and supervisory implications, and their interaction with payment systems, financial stability, and monetary policy transmission in the Union. [BCEAO]

I am honored to have been given the opportunity to contribute a chapter to the soon-to-be released book, Tokenisation of Money: From Fiat Currencies to Stablecoins, published by Springer! Expertly edited by Prof. Selim Yazıcı, Prof. C. Coşkun Küçüközmen, and Dr. Michael Salmony, it serves as a critical handbook for navigating the profound transformation of the global financial services industry. At a time when there is substantial confusion regarding new digital instruments, this book distinguishes reality from hype across the dimensions of CBDCs, stablecoins, and tokenized deposits. In my contribution, I provide an overview and reality check on global retail central bank digital currency (CBDC) developments. The book will be available via digital platforms by the end of May and you can pre-order the hard cover version here: https://link.springer.com/book/9783032229458!

FYI 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 (20260504)

~ kiffmeister

I am honored to announce that I have contributed a chapter to the soon-to-be released book, Tokenisation of Money: From Fiat Currencies to Stablecoins, published by Springer! Expertly edited by Prof. Selim Yazıcı, Prof. C. Coşkun Küçüközmen, and Dr. Michael Salmony, it serves as a critical handbook for navigating the profound transformation of the global financial services industry. At a time when there is substantial confusion regarding new digital instruments, this book distinguishes reality from hype across the dimensions of CBDCs, stablecoins, and tokenized deposits. In my contribution, I provide an overview and reality check on global retail central bank digital currency (CBDC) developments. The book will be available via digital platforms by the end of May and you can pre-order the hard cover version here: https://link.springer.com/book/9783032229458!

FYI 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 (20260502)

~ kiffmeister

BOE Considers Keeping Digital Pound On Ice as Rivals Race Ahead (Bloomberg)

The Bank of England (BOE) and HM Treasury (HMT) are reportedly considering slowing down the digital pound project to defer making an immediate firm decision to approve or scrap it. Officials have been encouraged by private-sector innovation—especially tokenized deposits—that could deliver many CBDC benefits (faster, cheaper payments) within the existing regulated banking system, reducing the urgency to build a central-bank solution. The project has faced skepticism from the public, Parliament, and even BOE Governor Andrew Bailey, who remains unconvinced of the need for a retail CBDC. A decision to build would entail upfront costs in the hundreds of millions of pounds (albeit later offset by CBDC income), voluntary participation by banks, and risk of political backlash over privacy concerns. [Bloomberg]

Meta Rolls Out Stablecoin Payments (Coindesk)

Meta rolled out digital currency payouts for select creators in Colombia and the Philippines. The payouts use the USDC stablecoin on either the Solana or Polygon blockchain networks, processed via Stripe’s Link wallet and accompanied by tax reporting from both Meta and Stripe. The initiative marks Meta’s return to stablecoins after it attempted to introduce the Libra token, later renamed Diem, only to shut down the project amid regulatory scrutiny in 2022. [Meta]

Central Bank Digital Currency and Monetary Architecture (Dirk Niepelt)

In a literature review that has been accepted for publication by the Journal of Economic Literature, Dirk Niepelt argues that the macroeconomic consequences of retail central bank digital currency (CBDC) depend primarily on the policy choices accompanying its introduction. Organizing the survey around a neutrality result, the paper demonstrates that bank disintermediation does not independently constitute a source of non-neutrality, provided the central bank recycles CBDC proceeds to banks on deposit-equivalent terms. Most existing research conflates policy-contingent with fundamental sources of non-neutrality, obscuring the extent of policymaker control. Because CBDC represents a structural shift in monetary architecture rather than a technical payment upgrade, it raises political economy questions that exceed the conventional mandate of central banks. [Niepelt.ch]

On the Resilience of Payment Methods (NBER)

The U.S. National Bureau of Economic Research (NBER) published a paper that argues, using multi-source U.S. and cross-country evidence, that cash functions as critical fallback liquidity when electricity outages disable digital payment infrastructure during natural disasters. Event studies across store-level transaction data, card aggregates, and household scanner records show that hurricanes generate persistent outages, shifting spending composition sharply toward cash, while pre-disaster expenditure spikes are credit-financed stockpiling. The finding that payment-system fragility is a first-order attribute of any instrument has direct implications for regulators overseeing cashless transitions, mandatory acceptance rules, and the design of offline-capable central bank digital currencies. [NBER]

FYI 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 (20260430)

~ kiffmeister

Crypto-Asset Service Providers as Financial Intermediaries: Risks and Policy Approaches (BIS)

The Bank for International Settlements (BIS) published a paper that argues that large crypto-asset service providers have evolved into multifunction crypto-asset intermediaries performing bank-like risk transformation and should face commensurate prudential regulation. The paper documents expansion from custody and trading into lending, derivatives, and “earn” programs that transform client assets into credit, liquidity, and maturity risks. Such activities replicate core intermediation functions without capital, liquidity, or supervisory safeguards, raising financial-stability and regulatory-perimeter concerns as links to traditional finance deepen. The authors advocate a combined entity- and activity-based approach, while noting unresolved issues around data gaps, cross-border supervision, and incomplete coverage of key activities. [BIS]

The Stablecoin Stumbling Block (FT)

The Financial Times published a paper in which Daniel Heller argues that existing stablecoin designs are structurally unfit to serve as wholesale settlement assets at scale. He notes that post-crisis standards for financial market infrastructures require settlement in central bank money or assets with equivalent credit quality and intraday liquidity, a bar current stablecoin reserve and redemption models fail to meet. This matters because large-value payments and securities settlement depend on systemically robust “money,” and today’s stablecoins embed maturity, liquidity, and operational risks misaligned with that role. Heller sees potential in tokenized central bank money or purpose-built, narrow-balance-sheet wholesale stablecoins, but leaves open whether central banks will grant reserve access and how global oversight would be structured. [FT]

I’m reposting this paper by Christian Pfister because of its relevance to yesterday’s post regarding the European Central Bank’s (ECB’s) stated digital euro motivations:

For a Political Economy of Central Bank Digital Currency (REP)

In this 2024 Revue d’Economie Politique (REP) article, Christian Pfister applies a positive (political economy) rather than normative framework to retail central bank digital currency (rCBDC). He maps stakeholder incentives across governments, central banks, regulators, incumbent banks, and fintech firms, then tests whether stated policy rationales align with those incentives. He concludes that publicly foregrounded motives, like financial inclusion, payment system safety, monetary sovereignty, and privacy, are analytically weak or already reached in developed economies. The dominant but largely unstated drivers are fiscal, such as seigniorage maximization through balance-sheet expansion, permanent rollover of sovereign debt held as rCBDC backing, and reduced tax evasion. Setting rCBDC remuneration at zero, officially framed as “do no harm” to bank intermediation, simultaneously serves those seigniorage objectives while suppressing a monetary policy transmission channel that the academic literature broadly endorses. For institutional design, combining legal tender status with fee exemptions advantages rCBDC in ways that raise competitive-neutrality concerns and risk crowding out private innovation. In non-democratic settings, programmable money creates structural conditions for mass surveillance. [REP]

And some backfilling (this one formalizes what most of us have known for about a year…)

Eastern Caribbean Central Bank (ECCB) Suspends DCash 2.0 Project (ECCB)

[February 13, 2026] The Monetary Council of the Eastern Caribbean Central Bank (ECCB) approved the suspension of the DCash 2.0 central bank digital currency (CBDC) project to prioritize the development of the fast payment system (FPS) and participation in the The Caribbean Community (CARICOM) Payments and Settlement System (CAPSS) pilot. [ECCB]

FYI 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 (20260429)

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Selling the Digital Euro to Legislators (PIIE)

On April 22, 2026, the Peterson Institute for International Economics (PIIE) hosted a virtual event at which Nicolas Véron interviewed the European Central Bank’s (ECB’s) Piero Cipollone on the digital euro project. As Izabella Kaminska noted on X, at one point Veron opined that the ECB’s concerns about the big US payment companies (e.g., MasterCard and VISA) pulling out of Europe is somewhat far-fetched, to which Cipollone admitted that the rhetoric is largely in play just to motivate legislators to push ahead with the digital euro. “The geopolitical risk, this is resonating much more with politicians and that’s where we saw some acceleration from the political side to put this project into focus… I must confess that before, this was a slow-moving project, at least at the legislative level. Then what happened in the last three/four years, it provided a sort of acceleration, mostly on the political side”. [PIIE]

Digitalization and Innovation – Opportunities and Risks for Financial Health (BIS)

A Bank for International Settlements (BIS) Financial Stability Institute brief argues that digital financial innovation is enhancing access to payments, credit, savings and insurance, and can help people to manage their financial obligations and have greater confidence in their financial future. However, these benefits are emerging alongside new vulnerabilities: a global surge in scams and fraud, greater overindebtedness among some digital borrowers and the use of ill-suited investment products. This mixed record challenges the presumption that inclusion automatically produces well-being, requiring supervisors to adopt outcome-focused oversight and disaggregated measurement beyond access metrics alone. Whether digital public infrastructure can systematically translate inclusion gains into durable financial health improvements at scale remains empirically unresolved. [BIS]

FYI 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 (20260428)

~ kiffmeister

ECB Signs Agreements with European Standard Setters to Facilitate Digital Euro Payments (ECB)

The European Central Bank (ECB) announced agreements with three European payment standard‑setting bodies to reuse existing open standards for processing online digital euro payments. The standards include European Card Payment Cooperation (ECPC) CPACE (to support contactless “tap‑to‑pay” payments using near‑field communication between a payment device and a payment terminal); nexo (specifications to connect merchants’ systems with the back-end systems of payment service providers and acquirers; and Berlin Group (to allow payments to be made using an alias (such as a mobile phone number) and support balance checks and reconciliation across mobile devices and payment acceptance in areas like digital euro transactions initiated in merchant apps on smartphones). The deal aims to reduce integration costs, support cross‑border scaling of European schemes, and lessen dependence on proprietary card and wallet standards owned by global firms. This move embeds the project in existing retail payment infrastructure, but leaves open how additional standards and governance will evolve over time. [ECB]

Western Union to Launch Stablecoin Next Month (The Block)

Western Union will launch a Solana-based, U.S. dollar–backed stablecoin called USDPT next month, initially using it as an internal settlement rail with key agents in select countries as an alternative to SWIFT, enabling on-chain cross-border settlement even during traditional banking holidays. The firm is also rolling out a Digital Asset Network (DAN) that connects consumer crypto wallets to Western Union’s retail and agent network so users can cash out digital assets into local currency through familiar outlets, with the first partner going live this week. Later this year, Western Union plans a USD “Stable Card” in dozens of markets, allowing consumers—especially in inflation-prone countries—to hold dollar-denominated value in stablecoins and spend globally. [The Block]

FIDO Alliance to Develop Standards for Trusted AI Agent Interactions (FIDO)

The FIDO Alliance announced a new Agentic Authentication Technical Working Group and payments workstream to standardize how AI agents authenticate, delegate, and execute commerce on users’ behalf. The initiative, building on contributions like Google’s Agent Payments Protocol and Mastercard’s Verifiable Intent, aims to create phishing‑resistant mechanisms for verifiable user instructions, agent authentication, and bounded, user‑controlled delegation for transactions. This matters for policy and market structure because it could harden agentic commerce against fraud, reduce reliance on proprietary stacks, and provide interoperable guardrails around intent, authorization, and liability allocation, while leaving governance and enforcement models still under‑specified. [FIDO]

Reforming MiCA for Euro Stablecoins (Blockchain for Europe)

Blockchain for Europe published a report in which Ulrich Bindseil and Erwin Voloder propose reforms to the Markets in Crypto-Assets Regulation (MiCAR) to bolster euro-denominated electronic money tokens (EMTs). Core recommendations include permitting remuneration limited to reserve income pass-through, eliminating the 30-60% minimum bank deposit requirement to enable diversified high-quality liquid assets (HQLA) akin to liquidity coverage ratio standards, enhancing proportionate reserve transparency via standardized reporting, mandating stress testing and concentration limits, granting calibrated central bank deposit access for safeguarding, and clarifying cross-border multi-issuance frameworks. These adjustments aim to mitigate MiCAR’s regulatory overreach—placing Europe on the downward-sloping Laffer curve for stablecoin competitiveness—while preserving prudential safeguards, reducing bank interdependencies, and elevating the euro’s global on-chain role amid U.S. dollar dominance. [Blockchain for Europe]

A Tale of Transactions: An Analysis of Retail Payments in the Euro Area (JPSS)

The Journal of Payments Strategy & Systems (JPSS) published an article in which Diederik Bruggink uses euro area retail payment data to inform debate on potential holding limits for a digital euro. Drawing on the European Central Bank’s Study on the Payment Attitudes of Consumers in the Euro Area 2024 and ECB statistical data, he derives average transaction values and cash holdings by country, and analyzes card and e‑money transactions by instrument and merchant category. The paper shows cash still anchors small-value payments and backup liquidity, debit cards dominate everyday non‑cash transactions with falling average ticket sizes, and e‑money is highly concentrated in a few markets. This matters because realistic digital euro limits must reflect actual transaction sizes, cross‑country heterogeneity, and the contingency role of cash, or risk distorting payment choice, inclusion, and bank funding. Open questions include how to integrate instant payments and how behavioral substitution will evolve once a digital euro exists. [JPSS]

FYI 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 (20260423)

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India’s Digital Currency Push Targets its Leaky Welfare System (Reuters)

Reuters published an article that I was quoted in, on how India is using its e‑rupee central bank digital currency (CBDC) in targeted pilots to tighten welfare delivery, especially for farm subsidies and subsidized food, by programming funds so they can only be spent at approved vendors, which reduces leakage and upfront costs for low‑income beneficiaries but also raises concerns about over‑controlling “programmable” money and deterring wider adoption compared with more cash‑like designs. [Reuters]

FYI 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 (20260421)

~ kiffmeister

Bank of Korea’s New Governor Vows to Push CBDC and Deposit Tokens (The Block)

Bank of Korea’s new Governor and ex-BIS Chief Economist, Hyun Song Shin, used his inauguration speech to pledge support for expanding central bank digital currency (CBDC) and bank-issued deposit tokens through the second phase of Project Hangang and cooperation with global initiatives like BIS’s Project Agora to strengthen the won’s role in digital payments, while emphasizing price stability amid external shocks. He conspicuously omitted any reference to won-pegged stablecoins even as lawmakers, backed by President Lee Jae-myung, work on a Digital Asset Basic Act to legally frame local stablecoins, and major financial firms prepare related products, with the bill’s progress delayed until after June regional elections. [The Block]

Launch of POC for digital collateral management using JGBs (JSCC)

Japan Securities Clearing Corporation (JSCC) will run a proof of concept (POC) with Mizuho, Nomura and Digital Asset to use Japanese government bonds (JGBs) as onchain collateral on the Canton Network, testing whether JGBs can be transferred and managed digitally while retaining their legal status and enabling 24/7, potentially cross-border, real-time collateral transactions under existing Japanese law. The trial, backed by Japan’s Financial Services Agency under its Payment Innovation Project, aims to inform how one of the world’s largest sovereign bond markets could support digital collateral processes without changing current legal and supervisory frameworks, and follows earlier Canton pilots with tokenized US Treasuries and parallel UK experiments with digital gilts in the Bank of England’s Digital Securities Sandbox. [JSCC]

FYI 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.