The European Central Bank (ECB) published a paper that reported the results of a series of experiments in a population-representative survey of European consumers to examine their attitudes towards the possible introduction of a digital euro. The study found that test subjects who were shown a short video explaining the key features of the digital euro increases the likelihood of adoption by 12 percentage points relative to a control group that is not shown the video. Second, it found that test subjects would allocate a relatively small fraction from a positive wealth shock to digital euros and their allocation to other liquid assets would be little affected. Third, it found that holding limits in the range of €1,000 to €10,000 would have insignificant differential effects on the composition of liquid asset holdings. Lastly, 55% of test subjects said that they will not adopt the digital euro due to strong preferences for existing forms of payment. [Read more at the ECB]
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.
On February 13, 2025 the U.S. Securities and Exchange Commission (SEC) acknowledged filings from crypto-asset manager Grayscale to list spot XRP and Dogecoin exchange-traded funds (ETFs). The SEC has 240 days following the submission of the filings to the federal register to decide whether they get the green light, which would put the deadline in mid-October 2025. In prior weeks, the SEC had also acknowledged applications for Litecoin and Solana ETFs. The decision on an XRP ETF may be complicated by the SEC’s lawsuit against Ripple Labs regarding XRP’s security status. Dogecoin’s path to approval could be more straightforward as it adopts many facets of Bitcoin, for which the SEC has approved ETF products. [Read XRP submission at the SEC]
Sponsored Content:
Upcoming Speaking Engagements:
The Central Bank Payments Conference (Paris, February 17–19) will explore the latest issues and developments confronting central banks and their evolving role as operators, overseers, and catalysts within the payments landscape. The focus will be on cross-border payments, CBDC and tokenization, open finance, instant payments, and financial inclusion, among other topics. When you register get 15% off by using the Kiffmeister15 code. [register here]
The Global Payments Summit (Paris, February 19–21), the second half of Currency Research Payments Week, will explore emerging payments trends and innovations, positioning the ecosystem’s commercial players — banks, PSPs, solution providers — at the center of the discussions. When you register get 15% off by using the Kiffmeister15 code. [register here]
The Crypto Assets Conference (Frankfurt, March 26) will explore the latest innovations and emerging industry trends in DLT, blockchain, and crypto assets, through insightful talks, interactive debates, and presentations by industry thought leaders. [Register here]
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 World Bank published a technical paper on on its practical experiments on fast payments system (FPS) interoperability with central bank digital currency (CBDC) systems. The first experiment investigated the option of settling FPS obligations in a wholesale CBDC system, including the option to reserve funds to guarantee the settlement of FPS net obligations. The second experiment investigated the interoperability between users within the FPS and retail CBDC users, including the transfer of funds among both types of users, using common services such as address resolution services. This experiment illustrated how CBDC systems could interoperate with retail payment systems through an interlinking bridge that was used to route messages and application programming interface (API) calls among different systems. The programmability features of distributed ledger technology (DLT) were used to link the settlement in CBDC to the transfer of funds in the FPS. [Read more at the World Bank]
The Eurosystem defined a harmonized policy to allow non-bank payment service providers (PSPs) to access central bank-operated payment systems, including TARGET. Non-bank PSPs include payment institutions (PIs) and electronic money institutions (EMIs). The broader access criteria for TARGET are aimed at enhancing the efficiency of the European retail payments market, fostering competition and innovation in the European payments landscape, and supporting the uptake of instant payments in the European Union. Starting in April 2025, non-bank PSPs meeting certain requirements will be able to access TARGET, including T2 (for settling payments) and TIPS (for settling instant payments). The Payment Services Directive was also amended to introduce the option for non-bank PSPs to safeguard users’ funds in an account held with a central bank, subject to the discretion of that central bank. [Read more at the European Central Bank]
The Bank for International Settlements (BIS) published a paper that examines the relationship between digital payment innovation, economic growth and informal activities in 101 economies over 2014–19. It finds that a one-percentage point increase in digital payments use is associated with increases in the growth of GDP per capita of 0.10 percentage points and a decline in the share of informal sector employment of 0.06 percentage points, both over a two-year period. Digital payments do not appear to be significantly associated with rises in total factor productivity once controlling for general measures of digitalization and government effectiveness, but they are linked to greater financial inclusion and credit access. The results reinforce the case for government policies to encourage digital payments and, as complementary factors, access to the financial sector and information technology. [Read more at the BIS]
Upcoming Speaking Engagements:
CBDC Conference, Istanbul, September 10-12. The conference will offer representatives of central banks, commercial banks, technology providers, policy makers and academics the perfect platform to learn about the latest CBDC developments, exchange ideas with experts and peers. [Find out more and register here][Central bank delegates may be eligible for free registration (email registration@cbdc-conference.com to find out more)]
Digital Currency Conference, London, September 23-24. The conference will bring together policymakers, regulators, and technology and innovation experts to network and discuss all aspects of digital currencies. And enter the KiffmeisterDCC code at registration to get a 20% discount! [Find out more and 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 U.S. Securities and Exchange Commission (SEC) Division of Trading and Markets has approved the spot Ethereum (ETH) exchange-traded fund (ETF) 19b-4 filings from VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. This will allow the spot ETH ETFs to be listed and traded on their respective exchanges, but the SEC still needs to sign off on their corresponding S-1 registration statements for trading to officially begin, and this could take months. This process differs from that followed in the January 2024 spot Bitcoin (BTC) ETF approval process in which both the 19b-4 and S-1 filings were approved almost simultaneously. [Read more at the SEC]
The U.S. House of Representatives passed the CBDC Anti-Surveillance State Act (H.R. 5403) that requires the Federal Reserve to obtain congressional approval before issuing a central bank digital currency (CBDC). The bill seeks to amend the Federal Reserve Act, barring the Fed from providing direct consumer services or leveraging CBDCs for monetary policy (i.e., remunerating a CBDC) without Congress’s explicit consent. As pointed out by Ledger Insights, the drafting is very sloppy, particularly by blurring the lines between retail and wholesale CBDC, and full enactment could have unintended consequences. For example, the sloppy drafting could prohibit the current practice of using remuneration on commercial bank reserves held at the Fed as a policy tool. [Read bill at GovInfo.gov]
Upcoming Speaking Engagements:
CBDC Conference, Istanbul, September 10-12. The conference will offer representatives of central banks, commercial banks, technology providers, policy makers and academics the perfect platform to learn about the latest CBDC developments, exchange ideas with experts and peers. [Find out more and register here][Central bank delegates may be eligible for free registration (email registration@cbdc-conference.com to find out more)]
Digital Currency Conference, London, September 23-24. The conference will bring together policymakers, regulators, and technology and innovation experts to network and discuss all aspects of digital currencies. And enter the KiffmeisterDCC code at registration to get a 20% discount! [Find out more and 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.
Almost all of the firms that have submitted spot Ethereum (ETH) exchange-traded fund (ETF) applications with the U.S. Securities and Exchange Commission (SEC) have amended the applications to remove the possibility of staking. Staking allows ETH holders to earn yield on their holdings, a feature of proof-of-stake (POS) cryptocurrencies. ETH holders need to lock in their holdings for a set period to support the blockchain operations in exchange for the reward. However, the SEC sees staking as an illegal offering by crypto platforms, as it can be seen as the offering of unregistered securities. This is fueling optimism that the SEC will soon approve most of the applications. [Read more at Finance Magnates]
The U.S. House of Representatives voted 279-136 in favor of the Financial Innovation and Technology for the 21st Century Act (H.R. 4763), which aims to clarify which government agencies will have responsibility for overseeing specific tokens and digital asset platforms. FIT21 will significantly boost the oversight role of the Commodity Futures Trading Commission (CFTC) while significantly hobbling the Securities and Exchange Commission (SEC). FIT21 will now go to the Senate, and even if it did pass that hurdle, it would likely be by a margin sufficient to ward off a possible Biden veto of the bill as currently written. [Read more at Coingeek]
Upcoming Speaking Engagements:
CBDC Conference, Istanbul, September 10-12. The conference will offer representatives of central banks, commercial banks, technology providers, policy makers and academics the perfect platform to learn about the latest CBDC developments, exchange ideas with experts and peers. [Find out more and register here][Central bank delegates may be eligible for free registration (email registration@cbdc-conference.com to find out more)]
Digital Currency Conference, London, September 23-24. The conference will bring together policymakers, regulators, and technology and innovation experts to network and discuss all aspects of digital currencies. And enter the KiffmeisterDCC code at registration to get a 20% discount! [Find out more and 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 U.S. Securities and Exchange Commission (SEC) is delaying its decision on bids to create Ethereum (ETH) exchange-traded funds (ETFs) from VanEck from March 24 to May 23, Ark 21Shares to May May 24, and Hashdex from March 31 to May 30th. Also, the U.S. SEC reportedly issued several subpoenas to companies related to attempts to label Ether as a security, and the Ethereum Foundation said that it may be under investigation “from a state authority.” Should the SEC move forward with regulating Ether, it could potentially put the regulator in conflict with the U.S. Commodity Futures Trading Commission (CFTC). [Read more at Coin Telegraph]
The GSMA published its annual report on mobile money. Adoption and active use continued to grow in 2023 but at a slower rate than in previous years. West Africa was the main growth driver, with Nigeria, Ghana and Senegal leading the way. Mobile money transaction volumes grew faster than transaction values – leading to a drop in average transaction values. Much of the higher-value transactions occurred during the height of the COVID-19 pandemic when the demand for digital transactions was very high. [Read more at the GSMA]
Blockchain developer Gluwa is exploring the possibility of building a central bank digital currency (CBDC) for Liberia. The firm’s CEO met with the President of Liberia to discuss enhancements to the country’s financial infrastructure, but no mention was made of central bank engagement, so the latter’s engagement in the project is unclear. [Read more at Gluwa]
*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.
Kiffmeister’s 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 (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 chronicles@kiffmeister.com
The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).
WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]
The European Central Bank (ECB) is establishing seven new workstreams to develop the various sections of the digital euro rulebook and has issued calls for candidates for each, inviting experts in payments infrastructure and architecture, technical specifications and scheme management to apply. Last year three workstreams were launched, covering the scheme’s compatibility with standards, as well as technical requirements, and identification and authentication. The workstreams will report to the Rulebook Development Group (RDG) that represents consumers, retailers, and intermediaries. Each applicant will need to be nominated by an RDG member. [Read more at the ECB]
Fidelity Investments updated its application to the U.S. Securities and Exchange Commission (SEC) for a spot Ethereum (ETH) exchange-traded fund (ETF) to include the ability to stake. According to the amendment “the Sponsor may, from time to time, stake a portion of the Fund’s assets through one or more trusted staking providers, which may include an affiliate of the Sponsor”. Fidelity made its initial application in November. Other potential issuers include BlackRock, Ark Invest and 21Shares, and Grayscale. [Read more at CoinDesk]
*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.
Kiffmeister’s 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 (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 chronicles@kiffmeister.com
The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).
WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]
The U.K. Financial Conduct Authority (FCA) will not object to requests from Recognized Investment Exchanges (RIEs) to create a UK listed market segment for crypto-asset-backed Exchange Traded Notes (cETNs). These products will be available for professional investors, such as investment firms and credit institutions authorized or regulated to operate in financial markets only. However, the ban on the sale of cETNs (and crypto derivatives) to retail consumers remains in place. On the same day as the FCA announcement (March 11, 2024) the London Stock Exchange confirmed it will accept applications for the admission of Bitcoin and Ethereum cETNs in Q2 2024. [Read more at the FCA]
The Bank of Israel (BoI) published a paper that examines architecture alternatives for implementing the two-tiered central bank digital currency (CBDC) business model. The paper focuses on the types of participants in the system, the functional distribution between the participants in providing an end-to-end solution, the distribution model to end users; and back-end layer—or system “engine”—managed by the central bank. It concludes that the optimal model is an indirect distribution model, in which the central bank distributes CBDC to the institutions that manage end user’s accounts, and those will support distribution to the end users. [Read more at the BoI]
The five-nation BRICS group Brazil, Russia, India, China and South Africa) is reportedly working on a blockchain-based digital payment system. Development work will also continue on the Contingent Reserve Arrangement, aimed at reducing reliance on U.S. dollars. [Read more at TASS]
*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.
Kiffmeister’s 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 (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 chronicles@kiffmeister.com
The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).
WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]
Franklin Templeton has filed with the U.S. SEC for a spot Ethereum (ETH) ETF, becoming the eighth player to file for a similar product. VanEck was the first, which the SEC must either approve or deny by May 23. In January, the SEC delayed its decision on an application by Grayscale to convert its ETH trust product into a spot ETF, and BlackRock’s spot ETH ETF application was also punted. [Read more at Reuters]
ETH/USD over the last month (CoinMarketCap)
FYI here are some of my upcoming speaking engagements:
*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.
Kiffmeister’s 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 (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 chronicles@kiffmeister.com
The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).
WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]
The Bank of England (BOE) and HM Treasury (HMT) published a summary of the responses to their February 2023 digital pound consultation paper. The Bank and HMT received over 50,000 responses, with many respondents raising concerns about access to cash, users’ privacy, and control of their money. In the summary paper, the BOE and HMT said that the they would not have access to personal data. Private-sector payment interface providers (PIPs) would anonymize personal data before transactions are processed and settled by the BOE. Also the BOE and HMT would not pursue government or central bank-initiated programmable functions. However, PIPs could program digital pound payments but only with user consent, and be subject to robust regulatory requirements in this regard .Although commercial bank respondents called for individual holding limits of £3,000 to £5,000, the BOE and HMT are sticking with a £10,000 to £20,000 range for now. The design phase will continue until at least 2025 when a decision is needed on whether to proceed with prototyping and piloting prior to any launch decision. [Read more at the BOE]
The BOE and HMT also published the responses to the digital pound technology working paper also published in February 2023. There was broad support for the six technology design considerations – privacy, security, resilience, performance, extensibility and energy usage. Respondents also suggested additional considerations, such as interoperability, usability, accessibility and scalability. A few respondents suggested models that the BOE judges to not be compatible with the stated policy objectives or design principles, for example models based on anonymous bearer instruments, which will not be taken forward. Most respondents agreed that government or central bank-initiated programmable money should not be pursued, but that user-initiated programmable payments and smart contract functionality would be important for a digital pound system. [Read more at the BOE]
The U.S. Securities and Exchange Commission has delayed a decision on BlackRock’s iShares Ethereum Trust spot Ethereum exchange-traded fund (ETF) application. This follows a similar denial to Fidelity in the previous week. Some market observers had assumed that the approval of a spot Ethereum ETF was a foregone conclusion after the recent approval of eleven bitcoin spot ETFs, but apparently not so. [Read more at the SEC]
The SEC also delayed its decision on Grayscale’s Ethereum Trust ETF application for the second time. The first delay was in December 2023. specifically asked whether Ethereum’s proof of stake mechanism and “concentration of control or influence by a few individuals or entities” could bring up unique concerns to make the fund susceptible to fraud and manipulation. [Read more at the SEC]
FYI here are some of my upcoming speaking engagements:
*For those interested in intra-day updates, check out my searchable Diigo Fintech developments database, which is also a good place to go to query for past developments: https://www.diigo.com/user/kiffmeister/ART.
Kiffmeister’s 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 (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 chronicles@kiffmeister.com
The Sovereign Official Digital Association (SODA) is a technology-agnostic firm offering advisory services at the intersection of central banking, digital finance and the web3 industry, aiming to make public digital money a reality. SODA believes institutions in the existing financial ecosystem should have access to the tools and resources they need to move from discussion to action. SODA offers ‘real life’ use cases to help test digital money and drive adoption as central banks and other public institutions explore the future of a more financially inclusive world powered by interoperable blockchain-based networks. SODA would love you to join us on this journey – please get in touch (chris@sodapublicmoney.org).
WhisperCash offers the first fully offline digital currency platform that has the same properties as physical cash. It can perform secure consecutive offline payments without compromising on security, privacy or accessibility. WhisperCash allows direct person to person offline payments without any server infrastructure or internet connectivity. It comes in various form factors including the self-contained credit card-sized “Pro” that sports an eInk screen and capacitive keyboard, and lasts for two weeks between recharges assuming a few transactions per day. [Click here for more information]
