Kiffmeister’s #Fintech Daily Digest (20250630)

June 30, 2025June 30, 2025 ~ kiffmeister

Bank of Korea Pauses Digital Currency Project (The Business Times)

The Bank of Korea (BOK) has reportedly temporarily suspended preparations for the second phase of its wholesale central bank digital currency (CBDC) pilot that had been scheduled for the fourth quarter of 2025. The first phase of “Project Hanging River”, which was aimed at building a programmable and interoperable CBDC network to support a tokenized financial ecosystem, ended on June 30, 2025. The decision comes as the government pushes a won-based stablecoin-focused agenda. [Read more at The Business Times]

Proper Procedures Not Followed on Palau Stablecoin Project (Cryptopolitan)

Republic of Palau’s Office of the Public Auditor published a performance audit report of the Ministry of Finance’s stablecoin project conducted from October 2021 through November 2023. The audit found that while the Ministry of Finance acted within its authority in partnering with Ripple to explore a US Dollar-backed digital currency (Palau Stablecoin or PSC), the agreements were not certified by the Attorney General for form and legality, and the availability of funds was not properly certified by the National Director of Program, Budget, and Management before entering into contracts. The project involved 154 government employee volunteers testing the stablecoin at three local retailers using $25,000 provided by Ripple. The audit concluded that while the proof-of-concept (POC) was executed properly within the Ministry’s mandate and funds were appropriately managed, any expansion beyond the POC phase to establish a circulating currency would require legislative approval from the Palau National Congress. [Read more on the Palau Office of the Public Auditor website]

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.

Kiffmeister’s #Fintech Daily Digest (20250505)

May 5, 2025May 5, 2025 ~ kiffmeister

Almost 70 organizations join ECB’s digital euro innovation platform (Ledger Insights)

The European Central Bank (ECB) launched its digital euro innovation platform, and almost seventy organizations have signed up to participate. The platform simulates the envisaged digital euro ecosystem, in which the ECB provides the technical support and infrastructure, such as an application programming interface (API), for European intermediaries to independently develop innovative digital payment features and services. Findings will be published by the ECB in a report to be published later this year. [Read more at the ECB]

Kyrgyzstan gold/government-backed dollar-pegged stablecoin (CoinDesk)

The Kyrgyz Ministry of Finance reportedly plans to launch a gold-backed stablecoin pegged 1:1 to the U.S. dollar in Q3 2025. The Gold Dollar (USDKG) will initially be backed by $500 million and be designed to facilitate seamless cross-border transfers. The Ministry aims to expand the gold reserves to as much as $2 billion, with independent audits planned to ensure trust and transparency in the collateral backing. All operational responsibilities—including gold custody, collateralization processes, and token issuance controls— will be handled by an independent Kyrgyz-registered private entity. [Read more at the USDKG.com]

FCA seeks feedback on regulation of crypto-asset trading platforms (FCA)

The U.K. Financial Conduct Authority (FCA) published a discussion paper (DP) to seek views on the future regulation of specific crypto-asset activities, ahead of legislation to bring them within regulation. This is the latest policy publication in the FCA’s Crypto Roadmap which provides a clear timeline for consulting on future crypto regulation. Other areas in the roadmap include market abuse and admissions and disclosures, stablecoins and custody, and prudential considerations. This discussion paper follows the publication of draft legislation by the Treasury that, once passed, will bring specific crypto-asset activities within the FCA’s regulation. The DP reflects insights gained from a series of FCA-led industry roundtables. [Read more at the FCA]

Kiffmeister’s #Fintech Daily Digest (20250131)

January 31, 2025January 31, 2025 ~ kiffmeister

Thai government plans Baht stablecoin backed by gov bonds (Ledger Insights)

Thailand’s Ministry of Finance reportedly plans to issue 10 billion of baht stablecoins backed by government bonds, initially newly issued ones, in October, 2025. However, it isn’t clear whether these will be baht-pegged, or float with the value of the underlying bonds. If it is the latter, this is more like a tokenized bond, rather than a digital currency, scheme. From the press reports, it sounds more like the former, as the Minister of Finance reportedly spoke of them allowing a wider range of individuals to invest, and not just financial institutions or large investors. Also, he said that a central platform for secondary market trading is also being developed to facilitate easier buying and selling of the stablecoin, increasing market liquidity. [Read more at The Nation]

Sponsored Content:

Supercharge your CBDC research and deployment strategy with Chavanette’s Alpha Knowledge Platform (⍺LP)—the ultimate resource for deep insights into CBDCs and the ecosystem of CBDC technology providers and solutions. Get insider access to the top 20 CBDC platforms through the GALACTIC GRID, dissected by Chavanette’s expert framework. Lead the digital central banking revolution with the tools necessary to deploy Central Banking 4.0—stay informed, stay bold, stay transformative. Be the leader. Register for access here and get a 10% discount on the first year with the kiffmeister10 code.

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. [r egister 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]