Kiffmeister’s #Fintech Daily Digest (20221005)

The Book of [Blockchain, Crypto and Web3] Jargon

Latham & Watkins LLP has published a very helpful interactive glossary of acronyms, slang, and blockchain, crypto and Web3 industry terminology. [Download at Latham & Watkins LLP]

SWIFT innovation paves way for global use of CBDCs and tokenized assets

SWIFT, working with Capgemini, has shown that central bank digital currencies (CBDCs) and tokenized assets can move seamlessly on existing financial infrastructure. The findings, from two separate experiments, bridged transactions between different distributed ledger technology (DLT) platforms (JPMorgan Quorum and R3 Corda) and real-time gross settlement systems. However, it appears that it still uses intermediaries for cross border payments, and and intermediaries are a significant cause of friction in the payment system. Fourteen banks will be involved in further experiments to scale the system. [Read more at SWIFT]

Privacy in cross-border digital currency: A transatlantic approach

The Atlantic Council published an article illustrating how various technical design choices can affect the privacy and transparency of cross-border CBDCs. Many of the cross-border CBDC pilot studies to date have adopted the technical designs provided by enterprise DLT platforms. However, some of these designs make tradeoffs regarding privacy, efficiency, and/or security. Whether these tradeoffs are acceptable is a matter of policy, and requires coordination between different regulators and central banks. [Read more at the Atlantic Council]

Smart Contracts Could Improve Efficiency And Transparency In Financial Transactions

S&P Global has published a smart contract explainer. Using smart contracts in financial transactions can improve efficiency and reduce reliance on third parties like asset servicers and custodians, as well as make transaction resolutions faster–enhancing creditworthiness and the integrity of business dealings. However, smart contracts have had slow and limited adoption in the financial markets owing to key risks including technology issues (such as incorrect coding) and legal and regulatory ambiguities that make accountability difficult. [Read more at S&P Global]

Tickets available for CBDC Think Tank masterclass

The CBDC Think Tank, in partnership with the IMF and George Washington University, is hosting a full-day in-person CBDC Masterclass on October 12 in Washington DC for “official sector” staff and academics active in the CBDC / digital currency space only. The sessions are designed as instructional deep dives with full presentations and Q&A components.  Tickets are $99. [Register here]

Also, the CBDC Think Tank, in partnership with Georgetown University and the DC FinTech Week, is hosting a FREE (also in-person) Digital Currency Lecture Series, a set of digital currency lightning talks delivered by subject matter experts, on October 14 in Washington DC. [Request an invite 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.

Kiffmeister’s #Fintech Daily Digest (20220928)

Project Icebreaker: Central banks of Israel, Norway and Sweden team up with the BIS to explore retail CBDC for international payments

The Bank for International Settlements (BIS) and the central banks of Israel, Norway and Sweden are launching Project Icebreaker, a joint exploration of how central bank digital currencies (CBDCs) can be used for international retail and remittance payments. using a hub-and-spoke model. The project will run through the end of the year, with a final report expected in the first quarter of 2023. [Read more at the BIS]

CBDC pilots and research, lessons for the digital euro

The Digital Euro Association published a very nice summary of the current state of play in the CBDC space. It’s part of a series of articles, this first one providing a general overview of global CBDC projects, motivations, with a particular focus on the Bahamas, China, Eastern Caribbean Union, Nigeria and Russia. Subsequent articles in this series will provide a deeper understanding of CBDC research and development in countries with different challenges and policy objectives. The articles will highlight that there is no one-size-fits-all approach to CBDC, but that CBDC solutions must be based on the needs and challenges of each country. [Read more at the DEA]

ESMA not planning blockchain securities rule changes before DLT pilot regime starts

The European Securities and Markets Authority (ESMA) says there is no need for new regulatory technical standards before the start of the European Union’s distributed ledger technology (DLT) pilot regime in March 2023. The regime aims to reduce the regulatory burden to enable blockchain-based securities trading and settlement to be trialed at scale and provide legal certainty. Tokenized stocks, bonds and investment funds fall within the DLT Pilot regime and have monetary limits. [Read more at Ledger Insights]

FCA green lights Revolut, making no UK crypto firms operating under temporary status

The UK Financial Conduct Authority (FCA) has added crypto-friendly payments app Revolut to its list of companies authorized to offer crypto products and services in the country. Revolut was among a small number of entities granted an extension to the FCA’s temporary cryptocurrency licensing program in March 2022. It was the last company on this list as other applicants withdrew their requests, were refused registration, or had their licenses granted before the end of June. [Read more at CoinTelegraph]

France’s CBDC Projects to Manage DeFi Liquidity, Settle Tokenized Assets

The Banque de France announced two new wholesale CBDC projects. The first will look at improving CBDC market liquidity management in decentralized finance (DeFi), such as via automated market makers. The second will focus on issuing and distributing tokenized bonds on a blockchain. [Read more at the Banque de France]

Tickets available for CBDC Think Tank masterclass

The CBDC Think Tank, in partnership with the IMF and George Washington University, is hosting a full-day in-person CBDC Masterclass on October 12 in Washington DC for “official sector” staff and academics active in the CBDC / digital currency space only. The sessions are designed as instructional deep dives with full presentations and Q&A components.  Tickets are $99. [Register here]

Also, the CBDC Think Tank, in partnership with Georgetown University and the DC FinTech Week, is hosting a FREE (also in-person) Digital Currency Lecture Series, a set of digital currency lightning talks delivered by subject matter experts, on October 14 in Washington DC. [Request an invite 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.

Kiffmeister’s #Fintech Daily Digest (20220927)

First Project mCBDC Bridge Pilot Complete

Project mBridge is a prototype real-time cross-border payments platform based distributed ledger technology (DLT) and multiple central bank digital currencies (CBDCs) developed by the Bank for International Settlements Innovation Hub and four central banks. The first pilot is now complete, with over $12 million in value issued onto the platform facilitating over 160 cross-border payments and FX transactions totaling more than $22 million in value between 20 participating commercial banks over the course of a month. A detailed report will be released in October. [Read more on LinkedIn]

Central Bank Digital Currency: Financial Inclusion vs. Disintermediation

The Dallas Fed published a working paper that analyzes the impact of introducing a central bank digital currency (CBDC) on financial inclusion, and its potential adverse effect on bank funding. The paper highlights the role of two design parameters: the fixed cost of CBDC usage and the interest rate it pays, and derive principles for maximum inclusion and for mitigating the inclusion-intermediation trade-off. Agents’ choice of money instrument is endogenously driven by income heterogeneity. Pre-CBDC, wealthier agents adopt deposits, while poorer agents adopt cash and remain unbanked. CBDCs with low fixed costs (and low interest rates) are adopted by cash holders and directly increase inclusion. CBDCs with high fixed costs (and high interest rates) are adopted by deposit holders and increase inclusion by raising deposit rates. The former allows for more favorable inclusion-intermediation trade-offs. [Read more at the Dallas Fed]

 

Regulating the crypto ecosystem: The case of unbacked crypto assets

The International Monetary Fund (IMF) published a Fintech Note that recommends that global bodies work to develop common crypto-asset taxonomies that can inform global and cross-sectoral standards while improving data insights. Standards should be risk-based, with greater requirements on entities and activities that generate more risk. Crypto asset service providers that deliver core functions and generate key risks should be licensed, registered, or authorized. [Read more at the IMF]

Regulating the crypto ecosystem: The case of stablecoins

The IMF published a Fintech Note that provides key elements that should feature in any stablecoin regulatory arrangement. Global regulation for stablecoins should be comprehensive, consistent, risk-based, flexible, and focus on their structural features and use. Requirements on stablecoins should cover the entire ecosystem and all its key functions, and there should be additional oversight for systemic stablecoin arrangements. In markets where risks are growing quickly, authorities should take immediate action by using all the tools at their disposal. For effective implementation, domestic and international collaboration are key. [Read more at the IMF]

Distributed ledger technology (DLT) options for CBDC

The Swiss National Bank’s Thomas Moser was one of the authors of a paper on the options for designing CBDCs using distributed ledger technology (DLT). It analyzes the various structures for implementation offered by DLT – public, permissioned and private – and the implications that each has for the central bank and the existing financial system. While a CBDC built on an open, permissionless system would provide the full functionality offered by DLT, it is also far more disruptive to the existing financial system and consequently requires more new infrastructure on the part of the central bank. Within the current DLT landscape, public-private partnerships offer the most practical and efficient means of building a DLT-based CBDC. A selection of existing DLT providers able to support a CBDC is also discussed. [Read more at SSRN]

The impact of fintech lending on credit access for U.S. small businesses

The Bank for International Settlements (BIS) published a working paper that explores the characteristics of pre-pandemic (2016-2019) small business lending (SBL) in the United States, using proprietary loan-level data from two fintech SBL platforms (Funding Circle and LendingClub). The results show that fintech SBL platforms lent more in zip codes with higher unemployment rates and higher business bankruptcy filings. Moreover, fintech platforms’ internal credit scores were able to predict future loan performance more accurately than the traditional approach to credit scoring, particularly in areas with high unemployment. Overall, fintech lenders have a potential to create a more inclusive financial system, allowing small businesses that were less likely to receive credit through traditional lenders to access credit and to do so at lower cost. [Read more at the BIS]

Tickets available for CBDC Think Tank masterclass

The CBDC Think Tank, in partnership with the IMF and George Washington University, is hosting a full-day in-person CBDC Masterclass on October 12 in Washington DC for “official sector” staff and academics active in the CBDC / digital currency space only. The sessions are designed as instructional deep dives with full presentations and Q&A components.  Tickets are $99. [Register here]

Also, the CBDC Think Tank, in partnership with Georgetown University and the DC FinTech Week, is hosting a FREE (also in-person) Digital Currency Lecture Series, a set of digital currency lightning talks delivered by subject matter experts, on October 14 in Washington DC. [Request an invite 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.

Kiffmeister’s #Fintech Daily Digest (20220918)

BIS Innovation Center at the NY Fed is looking into wholesale CBDC

Project Cedar, which is being run out of the BIS Innovation Center at the New York Fed, is looking into wholesale central bank digital currency (CBDC) from a research standpoint. It’s led by Per von Zelowitz, and what they’re trying to do, according to the Boston Fed’s Robert Bench, is “understand what are the requirements, or what are the things they need to think about, for the obligations of New York, which is the world’s leading capital market center?” Thanks to the Atlantic Council’s Josh Lipsky for bringing this to my attention.  [Read more at the Atlanta Fed]

Bullet train: New tokens and platforms may transform cross-border payments

A few weeks ago the IMF’s Finance & Development magazine published an article by Tobias Adrian and Tommaso Mancini-Griffoli that pitched the idea of a multi wholesale CBDC platform to achieve greater cross border payment efficiencies. The IMF will soon publish two papers on these topics that will lay out an initial blueprint for such platforms. This concept is also being pursued by the BIS Innovation Hub Hong Kong Centre’s Project mCBDC Bridge, along with the Hong Kong Monetary Authority, Bank of Thailand, People’s Bank of China and Central Bank of the United Arab Emirates. [Read more at the IMF]

Central Bank Digital Currencies – The Quest for Public Digital Payment Infrastructures

This paper by Xavier Lavayssière summarizes the many considerations that go into the decision as to whether a central bank should issue CBDC and the many design dimensions. The decision-making process raises fundamental questions about the functions of central banks, the roles of the public and private sectors, technological design and international monetary competition that will be defining for the payment industry, economic development and sovereignty. [Download at Blockchain@X]

The Demand for Programmable Payments

This paper Charles Kahn and Maarten van Oordt studies the desirability of programmable payments where transfers are automatically executed conditional upon preset objective criteria. They do so in a framework that captures a wide range of economic relationships between two parties, in an environment without legal recourse. They find that optimal payment arrangements for long-term economic relationships consist predominantly of simple direct payments. Programmable payments will be desirable, and may in fact be the only viable payment arrangement, in situations where economic relationships are of a short duration. [Read more at SSRN]

 

Tickets available for CBDC Think Tank masterclass

The CBDC Think Tank, in partnership with the IMF and George Washington University, is hosting a full-day in-person CBDC Masterclass on October 12 in Washington DC for “official sector” staff and academics active in the CBDC / digital currency space only. The sessions are designed as instructional deep dives with full presentations and Q&A components.  Tickets are $99. [Register here]

Also, the CBDC Think Tank, in partnership with Georgetown University and the DC FinTech Week, is hosting a FREE (also in-person) Digital Currency Lecture Series, a set of digital currency lightning talks delivered by subject matter experts, on October 14 in Washington DC. [Request an invite 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.

Kiffmeister’s #Fintech Daily Digest (20220907)

Russia’s Finance Ministry is working on stablecoin platforms to avoid cross-border dollar settlement

Russia’s finance ministry is reportedly looking to stablecoins to avoid international payment rails denominated in the U.S. dollar and euro. “The stablecoins can be tied to some generally accepted instrument like, for example, gold, whose value is understood and appreciable for all parties… It will require additional regulation, and the ministry is only considering approaches to it, there are no ready-made solutions.” [Read more at Tass]

Exiles Put Crypto, Fed Funds at Center of Myanmar Finance Plan

Myanmar exiles ousted in a 2021 coup are pressing the US Federal Reserve to endorse their bid to use $1 billion in funds frozen by the US to back a digital currency and a plan to establish a new central bank. If the exiles can get US support, they would then seek to establish a new central bank that could issue the digital currency to help support the opposition’s “revolutionary efforts.” [Read more at Bloomberg]

Ethereum’s Bellatrix upgrade now live despite concerns

The Bellatrix upgrade preparing Ethereum for the Merge was successfully completed on September 6, 2022. This upgrade brought Ethereum’s consensus layer, the Beacon Chain, into a ready state for the Merge which is slated to occur around September 15 once the final (“Paris”) upgrade goes live. Some concerns were raised over an almost one in ten missed block rate across the last 600 slots. This could be due to some validators being not fully upgraded to the latest software, which could leave them unable participate in the post-merge proof-of-stake network. [Read more on Decrypt]

Liquidity bridges across central banks for cross-border payments

The Committee on Payments and Market Infrastructures (CPMI) published a report  on central bank liquidity bridges –  short-term intraday liquidity arrangement set up between two or more central banks. In a liquidity bridge, collateral held by a payment service provider (PSP) with one central bank can be used by a PSP’s related entity in another jurisdiction to get intraday liquidity from that other central bank. Liquidity bridges may help reduce credit and settlement risks to PSPs arising from FX transactions and reduce intraday settlement risk across borders. [Read more at the CPMI]

Discounted tickets available for CBDC Think Tank masterclass

The CBDC Think Tank, in partnership with the IMF and George Washington University, is hosting a full-day in-person CBDC Masterclass on October 12 in Washington DC for “official sector” staff only. The sessions are designed as instructional deep dives with full presentations and Q&A components.  Ticket prices start at $99 and you can save 30% by entering KIFFMEISTER where the registration page asks for a discount code. [Register here]

Also, the CBDC Think Tank, in partnership with Georgetown University and the DC FinTech Week, is hosting a FREE (also in-person) Digital Currency Lecture Series, a set of digital currency lightning talks delivered by subject matter experts, on October 14 in Washington DC. [Request an invite 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.

Kiffmeister’s #Fintech Daily Digest (20220711)

Options for access to and interoperability of CBDCs for cross-border payments

The Bank for International Settlements Innovation Hub, Committee on Payments and Market Infrastructures, International Monetary Fund and the World Bank assessed different options for cross-border access and interoperability of central bank digital currencies (CBDCs). They highlight that CBDCs currently have a key benefit in being able to consider cross-border functionality already during the initial development phase, but this “clean slate” advantage has an expiry date. International cooperation and coordination are needed in the early stages of CBDC design. In addition, any system must be built with the flexibility to adapt both to a changing world and the different CBDC designs likely to be chosen by central banks. [Read more at BIS.org]

FSB issues statement on the international regulation and supervision of crypto-asset activities

The Financial Stability Board (FSB) announced that it will submit to the October meeting of G20 finance ministers and central bank governors a public consultation report on its review of its high-level recommendations for the regulation, supervision and oversight of “global stablecoin” arrangements, including how existing frameworks may be extended to close gaps and implement the high-level recommendations. The FSB will also submit a public consultation report that proposes recommendations for promoting international consistency of regulatory and supervisory approaches to other crypto-assets and crypto-asset markets and strengthening international cooperation and coordination. [Read more at FSB.org]

Upcoming events I’m affiliated with:

The CBDC Think Tank, in partnership with the International Monetary Fund and George Washington University, is hosting a full-day in-person CBDC Masterclass on October 12 in Washington DC. The sessions are designed as instructional deep dives with full presentations and Q&A components.  [Register here]

Kiffmeister’s #Fintech Daily Digest (20220622)

Using CBDCs across borders: lessons from practical experiments

The Bank for International Settlements (BIS) published an update on BIS Innovation Hub (BISIH) experiments showing how central bank digital currencies (CBDCs) could help deliver faster, cheaper and more transparent cross-border payments. Collectively, the projects show that platforms with two or more CBDCs are technically feasible and offer a range of benefits that can lead to faster, cheaper and more transparent payments across borders. However, questions remain unanswered related to policy considerations, legal and regulatory frameworks, and basic operational economics that might call into question the viability of multi-CBDC platforms. [Read more]

Mojaloop Foundation Launches the Mojaloop CBDC Center of Excellence in Singapore

The Mojaloop Foundation launched its Mojaloop Central Bank Digital Currency Center of Excellence in Singapore to advance financial inclusion in emerging markets. Mojaloop is an open source payment platform based on the non-blockchain-based  Interledger Protocol. [Read more]

Tether To Launch GBP₮, Tether Tokens Pegged to the British Pound Sterling

Tether will be launching Tether tokens (“GBP₮”) pegged to British Pound Sterling in July. No further details were provided, such as how and where it will be backed. It will join four other fiat-currency pegged tokens Tether has in the market: the U.S. dollar-pegged USD₮, the Euro-pegged EUR₮, the offshore Chinese Yuan-pegged CNH₮, and MXN₮, the Mexican Peso-pegged stablecoin. [Read more]

Amsterdam to launch its own digital currency to promote local economy

Amsterdam plans to launch its own digital currency in the next four years. The coin can only be used in Amsterdam at the local entrepreneurs with the idea of boosting the neighborhood economy. The city council was inspired by Sardinia’s Sardex. Amsterdam is still working out the exact interpretation, for example, how consumers will get the coin, what it will be linked to, and who will participate. [Read more]

BIS G20 TechSprint 2022 Shortlist Winners

Over the last few days I’ve reported that the BIS Innovation Hub and Bank Indonesia had apparently chosen the projects that will be invited to showcase prototypes in a July workshop for the CBDC-focused G20 Techsprint. The BISIH have yet to publish them, but I picked up four from vendors themselves: BitMint (quantum-safe offline-capable peer-to-peer digital currency (DC) platform), Dragonfly Fintech (blockchain-based DC platform), Fluency (blockchain-based offline-capable DC platform), and Giesecke+Devrient (multiple-media offline-capable DC platform). Then thanks to Gieseke+Devrient’s  Tanja Heßdörfer, we have three more; Bitt and IDEMIA (offline-capable DC platform),  Extolabs (offline-capable DC platform), and R3 (blockchain-based DC platform). Now, thanks to BitMint’s Amnon Samid, we can add five more; Crunchfish (offline-capable DC), Dragonfly Fintech (blockchain-based DC system), paywith.glass (blockchain-based DC platform), Ripple (blockchain-based DC platform), and Roxe (blockchain-based CBDC).

Upcoming events I’m affiliated with:

The second session of the CBDC Think Tank CBDC Papers Lecture Series will be held on June 24 starting at 7am EST and run for 4 hours. [View list of papers and register here]

The CBDC Think Tank, in partnership with the International Monetary Fund and George Washington University, is hosting a full-day in-person CBDC Masterclass on October 12 in Washington DC. The sessions are designed as instructional deep dives with full presentations and Q&A components.  [Register here]

Kiffmeister’s #Fintech Daily Digest (20220612)

The Central Bank Digital Currency (CBDC) “Elephant in the Room

The Centre for European Reform asks why would anyone use a retail CBDC? “Central banks will struggle to rollout CBDCs that will be widely adopted. They may not provide consumers the same benefits as today’s services; privacy is unlikely to be a game-changer; and the private sector still offers scope for innovation. Without widespread adoption, a CBDC will be an expensive failure, and will do little to advance central banks’ goals. For the EU, regulation is a more sensible way to make European payments cheaper, and more diverse, competitive and innovative.” [Read more]

Russian state-owned company builds blockchain-based replacement for SWIFT

Rostec, a state-owned defense conglomerate headquartered in Moscow, announced that it has developed a blockchain platform that can be used for international settlements. Named the CELLS industrial blockchain, it is Russia’s purported replacement for the Society for Worldwide Interbank Financial Telecommunication (SWIFT) messaging system. The platform will allow for settlements in national currencies and allow Russia to circumvent all international sanctions. [Read more]

Upcoming events I’m affiliated with:

The CBDC Think Tank is hosting a CBDC Papers Lecture Series on June 17 and 24 starting at 7am EST and running for 4 hours each day. [View list of papers and register here]

Kiffmeister’s #Fintech Daily Digest (20220520)(Revised)

New experiments pave way for international payments using CBDCs

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) published a paper outlining how the financial transaction messaging platform is preparing to interact with the cross-border use of central bank digital currencies (CBDCs). SWIFT is teaming up with Capgemini to test ways to link multiple CBDC networks, as well as CBDC and traditional currency networks, as a proof of concept. [Read more]

Building regional payment areas: the Single Rule Book approach

A Bank for International Settlements working paper analyzes regional payment integration projects across the world to identify key lessons for future cross-border payment enhancements on regional and global level, focusing on the role of technology, law and regulation. It finds that ach border adds to the costs of a cross-border payment if crossing the border means entering into a different technological, regulatory and legal environment, with different systems, regulators, and courts. At the global level, mismatches between the inter-institutional framework on the back-end and the contractual relationship with clients on the front-end represent potential costs for the payment services provider and increase legal risk, prompting costly legal, due diligence manual adjustments in payments processes.  The paper concludes that globally coordinated action is needed to develop a comprehensive “single rule book” framework to guide and support regional payment integration. [Read more]

DLT-based enhancement of cross-border payment efficiency – a legal and regulatory perspective

Another BIS working paper published today concludes that financial law traditionally assumes that functions are concentrated in a single entity. Hence, the distribution of functions in distributed ledger technology (DLT) DLT with the need for additional agreements, ongoing coordination across, and governance arrangements among each participant. Further, in a cross-border context, multiple regulators and courts of various countries will be involved. All of these must decide whether for compliance with the law and regulations they look at DLT as a whole (‘ledger perspective’) or each individual DLT participant (‘node perspective’). On that basis the paper analyzes the extent to which the ledger or the node perspective should prevail. [Read more]

Upcoming events I’m affiliated with:

Satoshi Capital Advisors is hosting a virtual workshop on wholesale CBDC, stablecoins and digital capital markets on May 24 (starting at 08:00 EST). [Register here with the passcode: CBDC]

The CBDC Think Tank is hosting a CBDC Papers Lecture Series on June 17 and 24 starting at 7am EST and running for 4 hours each day. [View list of papers and register here]

Kiffmeister’s #Fintech Daily Digest (20220501)

NZ Reserve Bank pleased with strong public interest in the Future of Money

The New Zealand Reserve Bank published a summary of responses to three 2021 “future of money” issues papers, one of which canvassed issues and options for a potential central bank digital currency (CBDC). Feedback reinforced the need for privacy to be a critical feature of any potential CBDC. Concerns were also expressed about social inclusion of the digitally excluded, and the limited use case of CBDC given existing alternatives both in digital bank money and crypto-assets. [Read more]

Argentine Central Bank Explores Central Bank Digital Currency

Banco Central de la República Argentina published a paper that summarizes the design and architecture alternatives under study to minimize some of the risks of issuing a retail CBDC. There are no indications in the paper that the central bank has plans for deeper exploration. [Read more]

Towards the holy grail of cross-border payments

This paper, co-authored by the European Central Bank’s Ulrich Bindseil, describes current potential “holy grail” ways to cheap cross-border payments that settle immediately in a secure settlement medium. It concludes that several solutions are suitable and some may even be the holy grail. [Read more]

Upcoming events I’m affiliated with:

The Bank of Ukraine will present virtually on their E-Hryvnia retail CBDC project on May 3 (at 08:00 EST) at the CBDC Think Tank  [Register here]

Satoshi Capital Advisors is hosting a virtual workshop on wholesale CBDC, stablecoins and digital capital markets on May 24 (starting at 08:00 EST). [Register here with the passcode: CBDC]