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]
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]
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]
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.
The Bank of Korea reportedly plans to use wholesale central bank digital currency (CBDC) to back the distribution of over $79 billion in government subsidies in the second phase of the “Han River Project”. This move, proposed by the Ministry of Strategy and Finance, is aimed at making subsidy payments more efficient and transparent by issuing CBDC-based tokenized bank deposits to contractors instead of traditional vouchers or bank transfers. By leveraging blockchain technology, the initiative seeks to reduce fraud and improve the tracking of public funds, and it marks a significant shift from a previous pause in CBDC testing. [Source: Hankook]
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]
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]
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.
I spent a very pleasant hour with Digital Euro Association (DEA) Chair Jonas Gross chatting about the evolution of digital currency, from central bank digital currency (CBDC) to stablecoins and tokenized deposits. Here’s the TL;DR but click here for the whole podcast, which I think you’ll find interesting:
CBDCs are at a pivotal stage, with wholesale CBDCs gaining renewed interest for their potential in efficient, high-value settlements—especially as tokenized deposits and atomic settlement use cases emerge. However, retail CBDCs face uncertainty, as countries like Canada, Sweden, and the UK pause or scale back projects due to limited public interest and adoption challenges, while the European Central Bank continues to push ahead with its digital euro preparations. Lessons from early adopters show that technology alone is insufficient without strong merchant integration and public education. Meanwhile, stablecoins are rising in influence, but their future depends on regulatory acceptance and central bank backing. The debate continues between permissioned and permissionless blockchain infrastructures, and their roles in creating modular, interoperable financial systems .
Bank Negara Malaysia (BNM) published a paper that explores the fundamental nature of modern money—characterizing it as a credit relation and a promise to pay abstract value—and examines its implications for Shariah (Islamic law) analysis, particularly in the context of central bank digital currency (CBDC). It argues that modern money, unlike classical commodity-based money, is constituted by social, economic, and political relationships among individuals, banks, central banks, and the state. The authors highlight that traditional Shariah conceptions, which treat money as a tangible commodity, do not fully capture the essence of modern money. They propose a hybrid Shariah approach that recognizes modern money as both a means of payment and a credit instrument, suggesting that the rules of riba (usury) should apply to modern money in its various forms, including CBDCs, to ensure alignment with Islamic principles. [Read more at the BNM]
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]
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.
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]
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]
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]
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]
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]
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:
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]
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.
The U.S. Senate has passed the GENIUS Act, a bipartisan bill aimed at establishing a regulatory framework for stablecoins. The legislation seeks to provide clarity for issuers, ensure consumer protections, and maintain financial stability while fostering innovation in the digital asset space. Key provisions include requirements for stablecoin issuers to maintain reserves, comply with anti-money laundering (AML) rules, and undergo regular audits. The bill now moves to the House of Representatives for further consideration. [Read more at Congress.gov]
The Digital Euro Association (DEA) published a position statement that advocates for a balanced and innovative approach to digital money in Europe, focusing on stablecoins, retail and wholesale digital euros, and deposit tokens. The DEA emphasizes regulatory clarity, interoperability, user protection, and privacy, supporting the Markets in Crypto-Assets Regulation (MiCAR) for stablecoins while calling for proportional implementation to foster innovation. For the wholesale digital euro, the DEA highlights efficiency gains through distributed ledger technology (DLT), global interoperability, and collaborative governance. The retail digital euro should prioritize public good, privacy, and user-centric design, ensuring accessibility and legal clarity. Deposit tokens are seen as complementary to public money, requiring regulatory clarity and consumer protection. Overall, the DEA promotes a cohesive digital financial ecosystem that strengthens Europe’s monetary sovereignty, fosters innovation, and ensures trust and inclusivity. [Read more at the DEA]
JPMorgan Chase is reportedly planning to launch a tokenized deposit on Coinbase’s Base Ethereum Layer 2 network. It will operate on a public permissioned basis and will be for use only by the bank’s institutional clients. Unlike stablecoins issued by nonbanks, JPMD operates within the regulated commercial banking system and is subject to standard supervisory requirements. [Read more at CNBC]
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]
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.
VISA published an interim report on Phase 2 of the e-HKD Pilot Programme, an initiative by the Hong Kong Monetary Authority (HKMA) to explore cross-border transactions using new forms of digital money including central bank digital currency (CBDC) and tokenized deposits. The pilot, involving VISA, ANZ, Fidelity International, and ChinaAMC Hong Kong, testis how Australia-based investors can purchase tokenized fund units from Hong Kong asset managers using e-HKD or tokenized deposits. The program aims to explore the potential of blockchain technology for near real-time settlements, enhanced interoperability between public and permissioned blockchains, and the establishment of token standards, ultimately seeking to accelerate digital asset adoption and improve the efficiency of fund management and cross-border payments. [Read more at VISA]
The European Central Bank (ECB) is seeking input from market stakeholders on potentially extending the operating hours of T2, its real-time gross settlement system. The Eurosystem is considering the possibility of moving T2 towards a 24/7 model. The consultation will consider several options for extending T2 operating hours, including a move towards (i) a 24-hour operational day, (ii) a 6 or 7-day operational week, or (iii) a 365-day operational year. Additionally, the Eurosystem is considering some potential adjustments to key operational features or longstanding conventions such as (i) reorganizing payments settlement during night-time, (ii) adjusting key cut-off times and (iii) introducing new value dates. [Read more at the ECB]
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]
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.
USDC stablecoin issuer Circle filed paperwork with the U.S. Securities and Exchange Commission (SEC) to offer 24 million shares for $24 to $26 each. The firm is targeting a $6.7 billion fully diluted valuation. Circle is expected to trade on the New York Stock Exchange under the ticker CRCL. USDC was launched by Circle and Coinbase in 2018 via the Centre Consortium. Coinbase, which went public in 2021, took an equity stake in Circle in August 2023 amid the dissolution of the consortium. In April, Bloomberg reported that Ripple made a $4-5 billion offer for Circle, but was rebuffed due to the offer being too low. [Read more at Businesswire]
In a University of Toulouse School of Economics (TSE) working paper, Jon Frost (BIS), Jean-Charles Rochet, Huyn Song Shin (BIS), and Marianne Verdier analyzed the competition between three digital payment instruments: bank deposits, private stablecoins, and central bank digital currencies (CBDCs). Using a theoretical model grounded in two-sided market economics, the authors explore how market structure and social welfare are affected by “walled gardens” (non-interoperable payment ecosystems) versus interoperable systems such as central bank-operated fast payment systems (FPS) or CBDCs. They find that both CBDCs and FPS can increase financial inclusion, raise trade volumes, and enhance welfare—though they may reduce the market share of traditional financial intermediaries and paradoxically lead to higher merchant fees due to decreased price elasticity. The paper concludes that, in many cases, a well-designed FPS may offer similar benefits to a retail CBDC, suggesting that countries with robust FPS infrastructure may not urgently need a CBDC. [Read more at the TSE]
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]
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.
The Bank of Korea (BOK) “Project Hangang River” wholesale central bank digital currency (CBDC) backed tokenized deposit pilot is reportedly preparing to launch a second phase as early as October. The current three-month (April 1 to June 30, 2025) phase involves about 100,000 participants, and is limited to person-to-business (P2B) payments (for goods and services at online and offline merchants). In the next phase, person-to-person (P2P) transfers will be added, along with expanded use cases and a full rollout of a digital voucher program for welfare payments by local governments. [Read more at BusinessKorea]
Circle will be launching the Circle Payments Network (CPN) to connect financial institutions to enable real-time settlement of cross-border payments using regulated stablecoins. CPN will require participants to meet strict eligibility standards, including licensing, AML/CFT compliance, financial risk management, and cybersecurity protocols. By leveraging USDC, EURC, and other regulated stablecoins, CPN will enable seamless connectivity to domestic real-time payment systems worldwide, while upholding the compliance, security, and trust required for financial institutions to meet their regulatory obligations. Powered by smart contract infrastructure and modular APIs, the network will enable third-party developers to build advanced modules, app services, and automated financial workflows directly on top of CPN. [Read more at Circle]
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.
The U.S. Securities and Exchange Commission (SEC) will return $75 million of the $125 million-court ordered fine paid by Ripple last year. The proposed settlement, subject to commissioner and court approval, comes a week after the SEC agreed to drop its appeal of U.S. District Court judge Analisa Torres’ 2023 ruling that Ripple’s programmatic sales of XRP to retail exchanges did not violate federal securities laws. Torres found that only Ripple’s institutional sales violated securities laws, ordering Ripple to pay the $125 million fine. The fine was less than the nearly $2 billion in civil penalties, disgorgement and prejudgement interest the SEC initially requested, and the SEC had filed an appeal, and Ripple filed a cross ppeal of the SEC’s appeal. As part of the pending settlement agreement, the SEC will drop its appeal and ask the court to lift the standard injunction imposed against Ripple, and Ripple will drop its cross-appeal [Read more on X]
The Warwick University Business School (WBS) Gillmore Centre for Financial Technology published its response the Bank of England’s central bank digital currency (CBDC) consultation. One of its main points was that, even with a strong policy case, a digital pound will only fulfill its purpose if people adopt it. In the United Kingdom, relatively strong retail payments landscape would present a challenge in this regard. However, two particular pain points suggest a pathway to adoption; merchant frustration over high card payment costs and lack of alternatives, and clunky person-to-person (P2P) payments. A digital pound is not the only solution here, but perhaps these concerns suggest a pathway to adoption. However, most consumers don’t directly bear payment costs (merchants) and prices typically remain the same regardless of the payment method, so there’s little direct incentive for users to switch, complicating adoption. And anxieties around CBDC privacy are ironic in the context of widespread reliance on payment systems that are not private, but maybe a CBDC with cash-like attributes could carve out a unique niche. [Read more at the WBS]
Custodia Bank has partnered with Texas community bank Vantage to mint, transfer and redeem a deposit token on the Ethereum blockchain. The reason for using quotes around the term “stablecoin” is because deposit tokens on a permissionless blockchain appear similar to stablecoins, but if they are purely backed by deposits and issued by a bank, then economically and legally they are different – they’re bank deposits using a different technology. That’s why the stablecoin bills progressing through Congress exclude bank-issued crypto-assets backed by deposits. [Read more on X]
Upcoming Speaking Engagements:
The Digital Euro Conference 2025 (Frankfurt, March 27) will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Register here]
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.
The concept of “digital fiat currency” (DFC) has started to catch on as a catch-all for digital currencies that are based on fiat currencies, including central bank digital currency (CBDC), stablecoins, tokenized deposits, and various other forms of electronic money. The term “DFC” goes back to a series of reports by the International Telecommunications Union (ITU) between 2017 and 2019, the meaning of which was best articulated in a 2019 technical report:
Digital fiat currency (DFC) is a tokenized, digital representation of a sovereign currency issued by an authorized public or private entity. When issued and distributed by a central bank or other monetary authority, it is a central bank digital currency (CBDC). If it is issued by a private entity, it may be e-money or another form of digital commercial bank money/private digital tokens/stablecoins, even if backed by central bank money.
The IMF now recognizes crypto-assets in its Balance of Payments and International Investment Position Manual. It divides cryptos into fungible and non-fungible tokens. Cryptos without backing liabilities are treated as non-produced nonfinancial assets under the capital account, which means cross-border transactions involving them will be tracked as acquisitions or disposals of non-produced assets. Stablecoins and other cryptos backed by liabilities are considered financial instruments. Platform-based cryptos, such as Ethereum and Solana, may be classified as equity-like instruments, reflecting ownership rights similar to traditional equities. The manual also addresses staking and crypto yield activities, which are to be treated as sources of income akin to dividends, depending on the holder’s intent and scale of holdings. Additionally, services related to crypto mining and staking are now recognized as exportable computer services, aligning with broader trends in the digital economy. [Read more at the IMF]
Upcoming Speaking Engagements:
The Crypto Assets Conference (Frankfurt, March 26) will delve into the advancements in digital assets, tokenization, crypto assets, web3, and more, through insightful talks, interactive debates, and presentations by industry experts, founders, investors, and representatives from public institutions. [Register here and get a 10% discount]
The Digital Euro Conference 2025 (Frankfurt, March 27) will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Register here]
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.
