My posts this week may get a bit spotty, as I’ll be in Washington DC for the Georgetown University DC Fintech Week, the CBDC Think Tank Summit, and various activities around the International Monetary Fund / World Bank Annual Meetings.
FSB outlines next steps for enhancing cross-border payments
The Financial Stability Board (FSB) published the priority themes for the next phase of work under the G20 Roadmap for Enhancing Cross-Border Payments. The FSB also published a report on the progress made during the second year of the Roadmap. Three priority themes have been identified to focus on in the next phase; (i) payment system interoperability and extension, (ii) legal, regulatory and supervisory frameworks, and (iii) cross-border data exchange and message standards. The plan includes steps to strengthen external engagement during this next phase. [Read more at the FSB]
Here are some specifics of the next steps from the progress report:
- The Bank for International Settlements (BIS) in collaboration with International Monetary Fund (IMF) and World Bank will organize a conference to share information and encourage collaboration on cross-border payments across (planned) CBDC implementations by March 2023. Additionally, the IMF and World Bank will provide technical assistance on how to facilitate cross-border use of CBDC if requested.
- The Committee for Payments and Markets Infrastructure (CPMI) will consider whether and how the use of well-designed and risk-managed stablecoin arrangements could enhance cross-border payments by addressing existing frictions, what opportunities and challenges this would entail, and how this could impact central banks’ core functions.
ECB seeks scheme rulebook manager for the digital euro
The European Central Bank (ECB) Directorate General Market Infrastructure and Payments is looking for a senior expert from the payments industry to coordinate the group that will draft a potential digital euro scheme rulebook, i.e. a set of rules for payment transactions with a digital euro. [Read more at the ECB]
EU tenders for blockchain data and DeFi project
The European Commission has reportedly put out a tender for a study on embedded supervision of decentralised finance. The study will entail a six month pilot project to develop, deploy and test a technological solution that would enable regulatory bodies to automatically monitor compliance by reading public blockchain data. [Read more at FinExtra]
First Digital Securities Issuances Go Live in Germany
Clearstream created the first digital instrument on D7, Deutsche Börse’s digital post-trade platform. The first automated issuances were performed by LBBW and Vontobel. D7 is fully integrated within Clearstream’s global infrastructure and works as a connector between established networks and digital capabilities. This will provide a fully digital alternative to conventional physical issuance for about 80% of German securities. [Read more at MarketsMedia]
Kiffmeister’s Global Central Bank Digital Currency Monthly Monitor
Just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So for any of you out there who work for a central bank, ministry of finance or international financial institution who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at chronicles@kiffmeister.com.