Kiffmeister’s #Fintech Daily Digest (20260416)

April 16, 2026April 16, 2026 ~ kiffmeister ~ Leave a comment

Factors that Promote Adoption and Use of a CBDC Wallet in Peru (IDEAS)

Banco Central de Reserva del Perú (BCRP) economists examined the determinants of adoption and usage of Peru’s retail central bank digital currency (CBDC) pilot, implemented through Viettel’s BiPay digital wallet beginning in October 2024, focusing on eight regions with low financial inclusion. Based on individual-level survey data, active CBDC usage was positively associated with awareness of the BCRP’s role in the pilot, wallet satisfaction, knowledge of functionalities, and prior digital wallet use, while self-employment was negatively associated, plausibly due to the pilot’s closed-loop, non-interoperable design. Targeted advertising significantly increased merchant adoption, active user counts, and bill payment volumes, with merchant network expansion identified as a key transmission channel. The authors conclude that retail CBDC scaling requires attention to both sides of the payment market — user-facing communication and financial incentives on the demand side, merchant onboarding on the supply side — with interoperability remaining a persistent structural barrier to broader adoption. [IDEAS]

South Korean Government to Test Tokenized Deposits on Disbursements (MOEF)

South Korea’s Ministry of Economy and Finance (MOEF) will run a regulatory sandbox pilot in Sejong City to use distributed ledger technology (DLT) based tokenized bank deposits for day‑to‑day government operational spending, testing preset time, amount, and category controls on expenses to improve oversight and reduce misuse, with legal and regulatory changes and nationwide rollout targeted from Q4 2026 as part of a broader plan to digitize around a quarter of treasury disbursements by 2030, building on an earlier tokenized‑deposit subsidy pilot for EV charging infrastructure. https://cointelegraph.com/news/south-korea-pilot-tokenized-deposits-government-spending [MOEF]

Tether Launches tether.wallet Self-Custodial Digital Wallet (Tether)

Tether has launched tether.wallet, a self‑custodial digital wallet intended to extend its stablecoin‑based payment infrastructure directly to end users in over 160 countries. The product aggregates access to Tether’s digital dollars (USD₮, USA₮), gold (XAU₮), and Bitcoin across multiple networks, abstracts away gas‑token management, and enables transfers via simple human‑readable identifiers, reducing frictions that have limited previous wallet adoption. This move potentially deepens dollarization dynamics in high‑inflation and underbanked jurisdictions while bypassing bank‑intermediated channels. [Tether]

Central Banks of UAE and Philippines Agree to Link Instant Payment Systems (CBUAE)

The Central Bank of the United Arab Emirates (CBUAE) and the Bangko Sentral ng Pilipinas (BSP) signed a memorandum of understanding (MoU) to support broader cooperation on financial infrastructure and payments connectivity. This includes working to integrate their instant payment platforms to enable seamless cross-border payment transactions. The MoU also provides for collaboration on central bank digital currency (CBDC) initiatives, including sharing expertise on the development of CBDC platforms for individuals and institutions. [CBUAE]

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.

Protected: Kiffmeister’s Digital Currency Monitor, March 2026

March 31, 2026March 31, 2026 ~ kiffmeister

Kiffmeister’s #Fintech Daily Digest (20260330)

March 30, 2026March 31, 2026 ~ kiffmeister ~ Leave a comment

Tokenised Deposits, WCBDC and the Central Bank’s Liquidity Management (Norges Bank)

Norges Bank published a paper that analyzes how tokenized bank deposits and wholesale central bank digital currency (WCBDC) interact with central bank liquidity management under different reserve regimes and settlement designs. They model four configurations combining scarce versus ample reserves with settlement either in traditional reserves via the real-time gross settlement (RTGS) system or in WCBDC on a ledger, showing that liquidity frictions arise mainly when reserves are scarce and tokenized payments can alter banks’ reserve or WCBDC positions close to RTGS cut-off (see table below). This matters because late-in-the-day tokenized flows can force abrupt recourse to standing facilities, complicate overnight redistribution, and impair short-term rate control and monetary policy implementation, particularly in corridor or quota systems. Policy responses include deferred settlement for tokenized deposits settled in reserves and time windows or design tweaks for WCBDC activity. [Norges Bank]

Are Stablecoins and Bank Deposits Substitutes? (SSRN)

Rashad Ahmed (Anderson Institute for Finance and Economics) and Iñaki Aldasoro (BIS) posted a paper that analyzes U.S. weekly data from 2019–2025 to test whether deposit rates and reserve‑backed stablecoin holdings are substitutes. They find that higher demand deposit rates significantly slow stablecoin market capitalization growth, exploiting a nonlinear deposit‑rate pass‑through “kink” above a 3% federal funds rate, yielding effects about three times larger. This suggests bank funding conditions and monetary policy transmission now extend into stablecoin markets, with stronger substitution for USDC than USDT, aligning with USDC’s tighter links to U.S. users, and no comparable effect for bitcoin. The findings suggest that deposit‑rate regulation, the design of stablecoin regimes, and the stance of monetary policy can reallocate liquidity between banks and USD stablecoins, although identification relies on a single high‑rate episode and aggregate data that leave user‑level motives and heterogeneity across institutions unresolved. [SSRN]

Protected: Kiffmeister’s Digital Currency Monitor, February 2026

March 1, 2026March 10, 2026 ~ kiffmeister

Kiffmeister’s #Fintech Daily Digest (20260212)

February 12, 2026February 12, 2026 ~ kiffmeister

European Parliament Votes for Online and Offline Digital Euro (Central Banking)

On February 10, 2025 the European Union (EU) Parliament has approved the digital euro initiative, reaching agreement with the European Council on creating a currency that will function both online and offline. They rejected an earlier proposal by the parliamentary rapporteur that would have restricted the digital euro to an offline version only (420 votes in favor, 158 against and 64 abstentions). Members of Parliament approved an amendment that stated that the central bank digital currency (CBDC) was “essential to strengthen EU monetary sovereignty, reduce fragmentation in retail payments, and support the integrity and resilience of the single market [as] the increasing digitalization of payments, if left exclusively to private and non-EU actors, risks creating new forms of exclusion for both users and merchants” (438 in favor, 158 against and 44 abstentions). [Central Banking and European Parliament]

Bank Negara Launches Digital Ringgit Pilot Programs (BNM)

Bank Negara Malaysia (BNM) announced that its Digital Asset Innovation Hub (DAIH) has onboarded three initiatives in 2026 to test real-world applications of ringgit stablecoins and tokenized deposits, focusing on wholesale payment use cases for domestic and cross-border transactions, including tokenized asset settlement. These initiatives will be conducted in a controlled environment with ecosystem partners, including corporate clients and other regulators, with some exploring Shariah-related considerations. The testing aims to assess monetary and financial stability implications, with BNM planning to provide clearer policy direction on ringgit stablecoins and tokenized deposits by end-2026, potentially integrating with existing wholesale central bank digital currency (CBDC) work. [BNM]

Programming Money Without Programmable Money (FRBNY)

The Federal Reserve Bank of New York published a staff report that examines the distinction between “programmable money” and “programmable payments” in the context of central bank digital currency (CBDC) and tokenized money systems. The authors propose a two-layer framework consisting of an “asset layer” (a ledger recording ownership of plain-vanilla money) and a “program layer” (instructions for conditional transfers), which issues “certificates” that can be classified by two properties: transferability (whether ownership can be transferred) and convertibility (whether the certificate releases basic money when conditions are met). Pure programmable money is defined as transferable but non-convertible certificates that could circulate perpetually without releasing basic money, while pure programmable payments are non-transferable but convertible certificates (like direct debit arrangements). However, programmable money would likely not satisfy the “no questions asked” (NQA) property needed for good money and therefore wouldn’t circulate widely as money. [FRBNY]

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! [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.

Protected: Kiffmeister’s Digital Currency Monitor, January 2026

February 1, 2026February 1, 2026 ~ kiffmeister

Kiffmeister’s #Fintech Daily Digest (20251224)

December 24, 2025December 24, 2025 ~ kiffmeister

Russian Ministry of Finance Approves Some Digital Ruble Payments for Government Budget Expenditures (MoF)

[December 18, 2025] The Russian government has approved a list of budget expenditures using the digital ruble starting January 1, 2026, reported on the website of the Ministry of Finance (MoF). The list includes social security payments, and salaries and other payments to staff, as well as expenses for capital construction, repair and maintenance of state-owned facilities. Also, the use of the digital ruble will become available for transfers to budgets and transfers of funds to federal institutions. Furthermore, from July 1, 2027, corresponding transactions with regional and local budgets, as well as transactions with extra-budgetary funds and recipients of funds, will become available. Payments from the budget will be made in digital rubles only if the recipients wish. [Source: Russian MoF]

South Korea to Test Distributing Government Subsidies in New CBDC Test Phase (Decenter)

The South Korean press is reporting that the Bank of Korea (BoK) is preparing to launch a new phase of its “Project Hangang River” wholesale central bank digital currency (CBDC) project, focusing on distributing government subsidies. A first three-month proof-of-concept phase with commercial banks, during which central bank authorities made it clear that it was actually testing tokenized deposits, reportedly ended in June 2025. Unfortunately the central bank itself has been silent on the project so we have to rely on press reports that are often short on details, like whether the purported second test will really be about wholesale CBDC or perhaps tokenized deposits again, or a hybrid in which tokenized deposits are settled in wholesale CBDC. [Source: Decenter]

European Council Agrees Position on the Digital Euro and on Strengthening the Role of Cash (European Council)

[December 19, 2025] The European Council released a 157-page document outlining its position on digital euro legislation, rejecting a proposal for an offline-only approach and insisting on both online and offline versions of the central bank digital currency (CBDC). While the digital euro is primarily intended for peer-to-peer and retail payments to reduce dependence on Visa and Mastercard, the Council envisions a broader scope including machine-to-machine payments for Industry 4.0, Web3 applications, and business-to-business conditional payments from the outset. The proposal also aims to safeguard acceptance of cash as a payment method throughout the euro area, and guarantee that people have access to cash and are free to choose their preferred payment method. It proposes to effectively ban non-acceptance of cash by retailers or service providers with a few exceptions, notably for payments for goods or services purchased at a distance, including online, and unmanned points of sale. [Source: European Council]

How New Regulations May Impact the Future of Stablecoins (CBPN)

Central Bank Payments News published an article by Ezechiel Copic that examines how new stablecoin regulations in the U.S. (GENIUS Act) and EU (MiCA) may impact the business models of stablecoin issuers. Both regulatory frameworks require 1:1 backing with high-quality liquid assets and prohibit interest payments to holders, but differ in prescribed asset allocations—the EU mandates 30-60% in bank deposits while the U.S. sets no specific limits. The analysis shows that while stablecoin issuers like Circle currently generate 95-99% of revenue from interest on reserve assets (primarily Treasury bills and reverse repos), they face significant interest rate risk as rates are expected to decline. However, projected growth in stablecoin supply to $1.4 trillion by 2030 could offset revenue losses from lower rates, resulting in modest revenue increases. The article concludes that Europe’s more prescriptive MiCA regulations may hinder stablecoin growth compared to the U.S. approach, and issuers may need to develop alternative revenue sources beyond reserve asset yields to maintain viable business models. [Source: CBPN]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20251111)

November 11, 2025November 11, 2025 ~ kiffmeister

JPMorgan and DBS Bank Team Up on Cross-Border Tokenized Deposit Framework (CoinDesk)

JPMorgan and Singapore’s DBS Bank are collaborating to develop a cross-border tokenized deposit framework that will connect their respective blockchain payment systems, allowing institutional clients to transfer tokenized deposits in real time between both public and private blockchains. This initiative links DBS Token Services with JPMorgan’s Kinexys Digital Payments project, enabling interoperability and 24/7 settlement between banks without relying on traditional payment rails. The move aims to set new standards for interoperability in institutional digital payments, reflecting the global trend of major banks seeking seamless, cross-system digital deposit solutions. According to BIS, about a third of banks worldwide are now exploring or launching tokenized deposit innovations, signaling accelerating adoption in this area. [Source: CoinDesk]

Visa, Mastercard Reach $38 billion Swipe Fee Settlement, Draw Opposition (Reuters)

Visa and Mastercard have reached a revised $38 billion settlement with U.S. merchants, aiming to resolve two decades of litigation over antitrust violations and high card “swipe fees.” The deal would lower card processing fees by 0.1 percentage point for five years and grant merchants more control over card acceptance and surcharging, with standard consumer rates capped at 1.25% for eight years—a 25% drop. While Visa and Mastercard tout the relief for all merchants, especially smaller ones, major merchant groups like the National Retail Federation object, arguing the reforms don’t go far enough to address excessive fees and market power. The settlement replaces a previously rejected $30 billion accord and comes amid opposition from some merchant coalitions. Visa and Mastercard deny wrongdoing in agreeing to settle. [Source: Reuters]

Tokenization of Financial Assets (IOSCO)

IOSCO published a report on the tokenization of financial assets that assesses the adoption and implications of distributed ledger technology (DLT) in capital markets. It finds that while tokenization aims to drive efficiencies—such as fractionalization, programmability, and atomic settlement—the ecosystem remains nascent, with limited large-scale commercial adoption mostly seen in fixed income products and money market funds. Most lifecycle processes (issuance, trading, settlement, custody) continue to depend on conventional infrastructure due to challenges in DLT interoperability and credible on-chain settlement assets. The report highlights that risks from tokenization generally fit under existing legal and operational risk categories, but technology-specific risks (like smart contract bugs, cyber threats, and legal uncertainties around token ownership) may demand new controls. Regulators have mainly relied on existing, technology-neutral frameworks, sometimes complemented by specific guidance, sandboxes, or updated laws, as the economic substance of tokenized assets closely resembles traditional financial products. [Source: IOSCO]

Fast Payments in Latin America and the Caribbean (World Bank)

The World Bank published a report that analyzes new data on fast payments systems (FPS) in Latin America and the Caribbean (LAC). FPSs are rapidly transforming digital finance in LAC, making digital transactions far faster, more affordable, and accessible. In the last eight years, fast payments grew from 2% to about 45% of all digital payments in LAC-11 countries, catalyzed especially by the COVID-19 pandemic and proactive central bank policies. Brazil’s Pix system stands out globally for per-adult transaction volume, demonstrating how open design, broad use cases, and regulatory support drive adoption. Most LAC nations now offer fast payments through varied models, with increasing central bank involvement. These systems deepen financial inclusion for those with accounts and can attract the unbanked, but further policy attention is needed to expand access. Challenges remain around interoperability, governance, fraud, and use-case diversification. The report recommends prioritizing open nonbank access, robust governance, broader use cases, enhanced fraud management, and alignment with digital public infrastructure for sustained impact and inclusion. [Source: World Bank]

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!]

Kiffmeister’s #Fintech Daily Digest (20251103)

November 3, 2025November 4, 2025 ~ kiffmeister

Understanding Disputes Over Digitalization: A Perspective of Cross-Border CBDCs (Heng Wang)

In a forthcoming paper in the Emory International Law Review Heng Wang analyzes the complexity of disputes arising from digitalization, with a particular focus on cross-border central bank digital currencies (CBDCs). The paper highlights that CBDCs—as novel digital forms of national currency issued by central banks—bring transformative changes, especially through cross-border initiatives like Project mBridge and other multilateral efforts. The paper argues that the rapid digitalization of currency systems increases the likelihood of disputes due to diverging stakeholder interests, regulatory inconsistencies, technological challenges, and evolving governance structures. Wang proposes a framework examining social (stakeholder interests and interactions), material (subject matter and party perceptions), and temporal (evolution and timing of disputes) dimensions to better understand these disputes. By dissecting disputes along these lines, the paper aims to bridge the gaps between digital transformation and dispute settlement, helping public and private actors navigate the complex regulatory, technological, and operational landscape emerging from global CBDC adoption. [Source: ResearchGate]

Everyone Is Wrong About Tokenized Bank Deposits (Omid Malekan)

Crypto consultant Omid Malekan argues that widespread optimism about tokenized bank deposits is misplaced and reflects a misunderstanding of blockchain’s disruptive potential. He contends that tokenized deposits are inferior to stablecoins in terms of economics, safety, and compliance—requiring banks to pay competitive interest, being riskier due to fractional reserves, and suffering from restrictive permissioning that reduces utility. On the supply side, challenges like deposit insurance and price discovery on-chain could exacerbate instability and bank runs, and regulatory compliance will force banks into permissioned systems that undermine the very benefits of tokenization. Malekan concludes that unless banks radically rethink their structure, tokenizing legacy bank deposits simply reproduces outdated models, missing the transformative promise of blockchain technology. [Source: Substack]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20251029)

October 29, 2025 ~ kiffmeister

HKMA Completes Second Phase of e-HKD Pilot Programme (HKMA)

The Hong Kong Monetary Authority (HKMA) has completed the second and last phase of its e-HKD central bank digital currency (CBDC) pilot program. It evaluated the commercial viability and scalability of an e-HKD in various retail scenarios and compared it with tokenized deposits, structured around three themes: (i) settlement of tokenised assets, (ii) programmability, and (iii) offline payments. The results showed that an e-HKD can deliver benefits such as cost-efficient, programmable, and resilient transactions. One of the key takeaways was that, for retail end users, including merchants, consumers and individual investors, the difference between an e-HKD and tokenized deposits is not immediately clear, particularly in the context of routine payment transactions. Hence, the HKMA concluded that the immediate priority for the e-HKD lies in wholesale payments, and going forward it will prioritize the development of the tokenization ecosystem and cross-border payments. [Source: HKMA]

eCurrency to Pilot Central Bank Digital Currency Solution in Madagascar (eCurrency)

eCurrency Mint is set to begin an eAriary CBDC pilot in Madagascar. The project aims to introduce a digital version of the Ariary currency, leveraging eCurrency’s DSC3 technology to enable secure and efficient transactions. The solution is designed to integrate seamlessly into Madagascar’s existing financial ecosystem, and will be piloted in partnership with PayLogic SA to align with the “specific requirements of the Banky Foiben’i Madagasikara”. However, it is unclear to what extent the central bank itself is involved. [Source: PR Newswire]

Upcoming Speaking Engagements: