Tag: Payments

Kiffmeister’s #Fintech Daily Digest (20240517)

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Expanding the cross-boundary e-CNY pilot in Hong Kong

The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBOC) are expanding the scope of the e-CNY pilot in Hong Kong to facilitate the set up and the use of e-CNY wallets by Hong Kong residents, as well as the top-up of e-CNY wallets through the Faster Payment System (FPS). This marks the world’s first linkage of a faster payment system with a central bank digital currency (CBDC) system. Users can now set up e-CNY personal wallets in Hong Kong, which requires only their Hong Kong mobile phone numbers. The e-CNY wallets can then be used for cross-boundary payments to merchants, but not person-to-person (P2P) transfers. [Read more at the HKMA]

Bank of Ghana completes first Project DESFT proof of concept

The Bank of Ghana (BOG) has reportedly completed the second phase of Project Digital Economy Semi-Fungible Token (DESFT), a joint project with the Monetary Authority of Singapore (MAS) and the United Nations Development Programme (UNDP). The first phase saw the development of the blockchain-based Universal Trusted Credentials (UTC) system that enables micro, small and medium enterprises (MSMEs) to efficiently verify authenticity of key information, such as basic credentials, licenses, certificates, and trade records across borders. In the second phase, a cross-border payment was made using UTCs, the eCedi CBDC and a Singapore dollar stablecoin, using the Purpose-Bound Money (PBM) protocol. [Read more at Ghana Business News]

Bank of England digital pound point-of-sale proof of concept

The Bank of England (BOE) has assessed the technical feasibility of using existing point-of-sale (POS) hardware, as currently used in the UK, to initiate digital pound payments. This involved a proof of concept (POC) that used EMV standards to send payment instructions from smart cards to POS devices, and then to an application programming interface (API). It demonstrated that, while existing POS terminals may not need to be modified to make online digital pound payments, they might need to be modified for offline payments. [Read more at the BoE]

Basel Committee publishes report on the digitalization of finance

The Basel Committee on Banking Supervision published a report that considers the implications of the ongoing digitalization of finance on banks and supervision, including application programming interfaces (APIs), artificial intelligence and machine learning, distributed ledger technology (DLT) and cloud computing. It also considers the role of big techs, fintechs and third-party service providers, and new business models. [Read more at the Bank for International Settlements]

U.S. Senate votes to overturn SEC crypto custody rule

The U.S. Senate voted for a bipartisan resolution to overturn the Securities and Exchange Commission’s (SEC) SAB 121, the staff accounting bulletin that requires listed firms, including banks to include assets under custody as both an asset and liability on their balance sheets. Usually, as common sense would suggest, these such assets don’t go on the balance sheet because they belong to the client. The House of Representatives has already passed a similar bill, but the White House has said that it will veto the bill. [Read more at Ledger Insights]

Digital Euro project governance and stakeholder management

And this just popped up on the European Central Bank (ECB) website:

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.

Kiffmeister’s #Fintech Daily Digest (20240503)

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Bank of Namibia launches instant payment project

Bank of Namibia (BON) launched its Instant Payment Project, with a targeted launch year of 2025. It will focus on enhancing financial services in rural areas and the informal sector, thereby reducing cash dependency, and increasing transactional efficiency. Designed for inclusivity, the platform will be accessible on any device, including non-smartphones, ensuring that everyone can use it effortlessly. According to Finextra, BON will partner with National Payments Corporation of India (NPCI), the firm behind India’s Unified Payments Interface (UPI). [Read more at BON]

Why DeFi lending? Evidence from Aave V2

The Bank for International Settlements (BIS) published a paper that uses granular, transaction-level data from Aave, a leading player in the distributed finance (DeFi) lending market, to study investor motivations. The theoretical and empirical findings reveal that the search for yield predominantly drives liquidity provision in DeFi lending pools, whereas borrowing activity is mainly influenced by speculative and, to some extent, governance motives. Both retail- and large investors seek potential high returns through market movements and price speculation, however the latter engage in DeFi borrowing relatively more than the former also to influence protocol decisions and accrue more significant governance rights. [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]
  • 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.

Kiffmeister’s #Fintech Daily Digest (20240423)

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Kyrgyz Bank advances its digital som CBDC project

The Kyrgyz Bank Interagency Working Group (IWG) on Regulatory Impact Analysis (RIA) wrapped up its work on the implementation of a potential digital som. Their comprehensive analysis delved into ten Kyrgyz Republic legislative acts related to the introduction of the central bank digital currency (CBDC), proposing crucial amendments in the process. During a meeting of the Steering Committee on Digital Som, the IWG demonstrated a demo version of the digital som on the (blockchain) platform of one of the CBDC platform providers of CBDC. Going forward, the project team will continue further work on research, analysis of proposals, as well as negotiations with CBDC platform. [Read more at the Kyrgyz Bank and on Altynbek Kamchybek uulu’s LinkedIn post]

ECB says iPhone is currently incompatible with digital euro

The European Central Bank (ECB) is opposed to Apple’s proposed changes to the iPhone’s near-field communication (NFC) at the core of Apple Pay. The ECB argues that by not providing third parties with full access to the secure element (SE) of its NFC technology, Apple Pay maintains an unfair advantage against third-party payment apps on iPhones. Because of these limitations, contactless payments made through third-party apps on iPhone would be less user-friendly and ultimately be slower than Apple’s offering. Also, iPhones would be incompatible with the digital euro, because the current enabling legislation requires the ability to do peer-to-peer (P2P) and offline payments, the latter which requires access to the SE. [Read more at the ECB]

Stablecoins and national security: Learning the lessons of Eurodollars

The Brookings Institute published a paper by Timothy Massad, U.S. Commodity Futures Trading Commission (CFTC) , on how blockchain-based stablecoins could undermine the global financial system plumbing that has been exploited by U.S. authorities to protect national security interests (e.g., by implementing sanctions). He discusses various regulatory and legislative options, and finds them either insufficient or disrespecting reasonable privacy expectations. Mr. Massad suggests that, at minimum, stablecoin issuers should be required to engage in enhanced monitoring of blockchains for suspicious transactions and consider when the issuer must “freeze” stablecoins. [Read more at Brookings]

Interlinking fast payment systems for cross-border payments

The Reserve Bank of Australia (RBA) published a report on the benefits, design choices and challenges associated with linking fast payment systems (FPSs) across countries. It finds that connecting FPSs has the potential to considerably improve the speed and transparency of cross-border payments, benefiting both end users and service providers. Crucial to realizing these benefits are well-designed governance, scheme rules and payments processing capabilities, which help to manage risk and ensure a seamless cross-border payments experience. However, establishing an interlinking arrangement poses challenges, including dealing with differences in legal and regulatory frameworks across participating jurisdictions and agreeing on governance arrangements and scheme rules. [Read more at the RBA]

FYI I’ll be speaking at the Digital Currency Conference in London on 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]

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 john@kiffmeister.com.

Kiffmeister’s #Fintech Daily Digest (20240419)

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South African Reserve Bank to continue retail CBDC exploration

The South African Reserve Bank (SARB) published its Digital Payments Roadmap, aimed at realizing the overarching goals and strategies of the National Payment System Framework and Strategy: Vision 2025, including the promotion of competition and innovation, cost-effectiveness, interoperability and financial inclusion. In the Roadmap, the SARB commits to further exploring the issuance of retail and wholesale central bank digital currency (CBDC) over a two-year timeline. The work will follow up on the work that started in May 2021 to investigate the feasibility, desirability and appropriateness of issuing retail CBDC, and on the SARB’s wholesale CBDC proof of concept work that goes back to Project Khokha 1, completed in 2018. [Read more at the SARB]

Central Bank Digital Currency and monetary policy implementation

The European Central Bank (ECB) published a paper that discusses the potential impact of retail CBDC introduction on monetary policy implementation if it leads to a decrease in commercial bank deposits. Should this happen, bank holdings of central bank reserve holdings might shrink. However, the paper argues that uncertainty as to the timing and extent of any conversions of deposits into CBDC might prompt banks to scale up their demand for central bank reserves in order to hold larger precautionary buffers. Consequently, central banks might need to adjust their reserve supply and other features of their monetary policy implementation. In any case, the paper suggests CBDC design features could mitigate the risk of negative consequences for monetary policy implementation. [Read more at the ECB]

Project FuSSE aims to modernize financial market infrastructures

The Inter-American Development Bank (IDB) provided an update on Project FuSSE (Fully Scalable Settlement Engine), a joint project with the Bank for International Settlements (BIS) Innovation Hub and Bank of Canada. It is an initiative that offers open-source technology among central banks to facilitate the implementation of payment systems and other settlement infrastructures to advance financial inclusion Latin America and the Caribbean. It will also provide technical assistance for regulatory design and institutional capacity improvement. [Read more at the IDB]

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 john@kiffmeister.com.

Kiffmeister’s #Fintech Daily Digest (20240409)

~ kiffmeister

SNB Chair reflects on wholesale CBDC pilots. Retail too risky

Swiss National Bank (SNB) Chair Thomas Jordan provided an update on the central bank’s central bank digital currency (CBDC) experiments and thinking. Firstly, the SNB’s position remains that there is no need for a Swiss retail CBDC because digital payment requirements are already satisfied, and there are possibly far-reaching consequences for the financial system. However, the SNB continues to advance its wholesale CBDC work aimed at settling tokenized securities on the SIX Digital Exchange (SIX) platform. He also called attention to the unusual approach of issuing the CBDC on a third-party (i.e., SDX) platform. However, as pointed out by Ledger Insights, SIX also operates the Swiss real-time gross settlement (RTGS) system, so a trust relationship already exists. However, the SNB is also evaluating other options for tokenized securities settlement, such as the RTGS “trigger” solutions being tested by the European Central Bank in its wholesale CBDC experiments. [Read more at the SNB]

Bank of Russia expects CBDC to take 5-7 years to achieve mass use

Bank of Russia Governor Elvira Nabiullina provided an update on its digital ruble pilot to the State Duma. A serious scaling will happen no earlier than 2025, depending on how the pilot is going, and after that, it will take five to seven years to become a mass product. The Governor said that “this will be a natural process, because the choice of the people themselves, the business, is fundamental, it should be convenient for them. [Read more in the State Duma Gazette]

Stablecoins: regulatory responses to their promise of stability

The Bank for International Settlements (BIS) published a paper that assesses the evolving regulatory landscape for issuers of single fiat-pegged stablecoins. It compares regulatory frameworks issued by 11 authorities in seven jurisdictions to identify emerging trends and commonalities in their respective frameworks. It finds that many regulatory approaches have similar key requirements, but there are relevant differences in regulatory regimes. For example, in-scope stablecoin definitions vary significantly across regulations, and there are notable differences in the specifics of the regulatory treatment of reserves, and in relation to segregation and custody. [Read more at the BIS]

Brunei and Laos join the ASEAN Regional Payment Connectivity Initiative

Brunei Darussalam Central Bank (BDCB) and Bank of the Lao PDR (BOL) have officially joined the ASEAN Regional Payment Connectivity (RPC). The group now has eight member countries (see below). RPC is an initiative that aims to promote, faster, cheaper, more transparent, and more inclusive cross-border payments through, among others, quick response (QR) code-based payment and fast payment modalities. [Read more at the Monetary Authority of Singapore]

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.

Kiffmeister’s #Fintech Daily Digest (20240402)

~ kiffmeister

ECB looking for consultant to support digital euro offline functionality

The European Central Bank (ECB) is looking for a senior payments industry expert to provide consultancy services on a 40% part-time basis to support the project team designing and developing the digital euro’s offline functionality. The successful candidate will support the team in (i) defining the deployment of the digital euro’s offline functionality in end users’ devices in line with the requirements set in the draft legislative proposal; (ii) designing and implementing an optimal user experience for offline contactless payments via smartphones; (iii) assessing how an offline digital euro can be integrated within the existing terminal landscape at the point of sale; (iv) supporting the drafting of detailed requirements for the digital euro’s offline functionality. [Read more at the ECB]

Bank of China launches e-CNY offline payments for Qingdao Rail Transit

The Qingdao branch of the Bank of China (BOC) has rolled out a new payment option for Qingdao Rail Transit through digital yuan hardware wallets for payments without network and electricity. This “deferred payment” system allows travelers to use the public transit service first and pay later with the hardware wallet featured enabled on users’ smartphones. This functionality requires the use of an Android-based smartphone running a “Super SIM” card that stores digital yuan account information for use when there’s no network or electricity, introduced by China Mobile, China Telecom, and China Unicom in 2023. [Read more at Dazhong]

Japan’s first deposit-backed stablecoin “Tochika” has been launched

Hokkoku Bank together with the City of Suzu and Kono Shinkin Bank, has launched the “Suzu Tochika” deposit-backed blockchain-based stablecoin in Suzu City, Ishikawa Prefecture. In the summer of 2023, the consortium launched the “Suzu Tochituka” digital payment service for Suzu City-issued “Suzu Tochipo” points used for payments at participating stores. A Tochika account can be opened by registering a bank deposit account for charging the Tochituka app, with 1 tochika equating to 1 yen, and later redeemed at the same rate. Tochika is accepted at Tochituka member stores. Merchants pay a 0.5% settlement fee on Tochika transactions. [Read more on Norbert Gehrke’s Medium blog]

Decentralized finance (DeFi) leverage

The Bank for International Settlements (BIS) published a paper that examines decentralized finance (DeFi) leverage – ie the asset-to-equity ratio at the wallet level in major lending platforms. The overall leverage typically ranges between 1.4 and 1.9, while the largest and most active users consistently exhibit higher leverage than the rest. Leverage is mainly driven by loan-to-value requirements and borrowing costs, as well as crypto market price movements and sentiments. Higher wallet leverage generally undermines lending resilience, particularly increasing the share of outstanding debt close to being liquidated. Borrowers with high leverage are more likely to tilt towards volatile collateral when their debt positions are about to be liquidated. [Read more at the BIS]

Making sense of decentralized finance (DeFi)

The Philadelphia Fed published a paper that finds that DeFi has not decentralized decision-making power to users in the way its proponents had hoped. Decision-making power in DeFi remains highly concentrated in a few hands; insiders such as the founding team and venture capital funders often retain a substantial fraction of a platform’s tokens as compensation. Also, most small-scale users have little incentive to participate in votes on platform policies, since their votes are unlikely to influence the outcome. There may also be formal or informal barriers to small users’ participation. The paper concludes that future progress in DeFi will require not only technical advances in smart contract and distributed ledger design but also economic solutions to the governance problems faced by these platforms. [Read more at the Philly Fed]

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).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

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]

Kiffmeister’s #Fintech Daily Digest (20240305)*

~ kiffmeister

The CBDCTracker.org database has been updated, now counting a total of 108 jurisdictions and/or currency unions engaged in central bank digital currency (CBDC) research. Note that the Euro area, the Eastern Caribbean Economic and Currency Union and Economic and Monetary Community of Central Africa are currency unions and only count as one. For more information, please read Atakan Kavuklu’s summary of February developments [here] and visit the CBDCTracker.org website.

Russian CBDC status update: 25,000 transactions so far

The Bank of Russia provided an update on the digital ruble pilot that started in August 2023 with a dozen banks, 600 end users and 30 merchants across 11 cities. So far there have been 19,000 for person-to-person and 6,000 person-to-business payments, and 3,500 involved smart contracts. The central bank plans to further expand the circle of users and add 19 more banks, add dynamic QR codes, and expand the use of smart contracts. [Read more at the Bank of Russia and IZ.RU]

Fast payments: design and adoption

The BIS published a paper that lays out the main design features of fast payment systems (FPS) that may foster adoption. Cross-country regressions suggest that adoption of fast payments is greater when the public sector plays an active role in the FPS. Other design factors important for adoption are non-bank participation, more use cases and more cross-border connections. [Read more at the BIS]

*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).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

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]

Kiffmeister’s #Fintech Daily Digest (20240303)*

~ kiffmeister

Bank of Jamaica set on riding out CBDC challenges

Governor of the Bank of Jamaica (BOJ) Richard Byles reportedly says the central bank is “determined” to make its Jam-Dex central bank digital currency (CBDC) work despite the slow take-up. The main reason is merchant adoption, with most of the larger merchants preferring that Jam-Dex payments go through a single point-of-sale machine, so BOJ is testing a solution that uses a dynamic quick response (QR) code. Also, only one bank is able to facilitate Jam-Dex transactions, although three more are expected to step up to the plate soon. [Read more at the Jamaica Observer]

Suptech uptake drives consumer protection and financial inclusion

The University of Cambridge Judge Business School (JBS) Centre for Alternative Finance SupTech Lab published its Annual State of Suptech Report, based on a survey of 64 national financial sector oversight authorities from around the world. It found that the adoption of Suptech continues, with 81% indicating their involvement in various suptech initiatives, an increase from the 71% reported in the 2023 report. However, most implementations remain largely in the early stages of a complete digital infrastructure. [Read more at the JBS]

The real-time payments world map

The Clearing House and PYMNTS.com updated their map of the countries that have adopted, and are expected to soon adopt, fast payment systems. They currently count over 90 countries that have implemented fast payment systems. [Read more at PYMNTS.com]

Chainalysis annual crypto crime report

According to Chainalysis, In 2023, illicit addresses sent $22.2 billion worth of cryptocurrency to services, versus the $31.5 billion sent in 2022. Some of this drop may be attributed to an overall decrease in crypto transaction volume. However, the drop in money laundering activity was steeper, at 29.5%, compared to the 14.9% drop in total transaction volume. However, there was a big increase in the volume of funds sent to cross-chain bridges from addresses associated with stolen funds, and a substantial increase in funds sent from ransomware to gambling platforms, and in funds sent to bridges from ransomware wallets. [Read more at Chainalysis]

*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).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

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]

Kiffmeister’s #Fintech Daily Digest (20240226)*

~ kiffmeister

I’m thrilled to be participating in person at the Digital Euro Conference 2024 in Frankfurt on this Thursday (February 29, 2024). It’s not too late to register (click here) for in-person or virtual attendance. And as a reader of this blog you get a 20% discount with the Kiffmeister20 code! I hope to see you there!

Rise of digital money: Implications for Pacific Island countries

The IMF published an overview of the development of digital money and payment systems in twelve Pacific Island countries (PICs), assessing potential benefits and risks, with a focus on how they can harness digital technology to enhance financial inclusion and payment efficiency while minimizing risks. The paper also examines the prerequisites for successfully adopting various forms of digital money and proposes a strategic framework for policy decisions (see graphic below). It advocates a gradual, well-informed approach, tailored to PICs’ unique monetary and financial circumstances, including the presence of national currencies and the maturity of payment systems. Moreover, the paper suggests that a regional approach could help address capacity and scalability challenges in introducing new digital money forms and payment methods in PICs. [Read more at the IMF]

Russia advances law to use tokenized digital assets for trade payments

The Russian State Duma will consider a draft law on February 27, 2024, that will legalize the use of tokenized assets for cross border payments. Russia already has a legal framework for tokenized financial assets, which it refers to as digital financial assets (DFA). These regulated assets include tokenized commodities, trade finance and other structured products. However, DFAs were explicitly not allowed to be used for payments. However, Russia is now looking for alternative ways to settle cross border transactions, in light of sanctions imposed following Russia’s invasion of Ukraine. [Read more at Ledger Insights]

FYI here are some of my upcoming speaking engagements:

– Digital Euro Conference 2024 (Frankfurt on February 29)[Register here and get a 20% discount with the Kiffmeister20 code]

*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).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

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]

Kiffmeister’s #Fintech Daily Digest (20240105)*

~ kiffmeister

Bank of Spain selects partners for DLT-based wholesale CBDC testing

Banco de España (BDE) has chosen two Spanish banks (Cecabank and Abanca) to participate in distributed ledger technology (DLT) based wholesale central bank digital currency (CBDC) tests. The proofs of concept will feature the testing of the processing and settlement of domestic and cross-border interbank payments, and simulating tokenized bond settlements. The BDE has previously noted that this DLT-based wholesale CBDC work is independent of the digital euro project that would cover the eurozone if implemented. Adhara Blockchain will be providing technical services. [Read the Cecabank-Abanca contract here the Adhara one here]

Minutes of the BOE October 2023 CBDC Technology Forum meeting

The Bank of England (BOE) published the minutes of the October 2023 retail CBDC Technology Forum meeting. The four subgroups presented their objectives, expected outputs and timelines. Subgroup 1 will look at privacy-enhancing technologies and aliases. Subgroup 2 will focus on alternative models of interaction between payment infrastructure providers (PIPs). Subgroup 3 will explore options for the core ledger design in general terms, rather than the technology or solutions provided by specific vendors. Subgroup 4 will assess what a platform for innovation might look like and explore the possible technology requirements for one. [Read more at the BOE]

The cost-of-living crisis is driving a return to cash

The British Retail Consortium’s (BRC) Payments Survey 2023 shows that cash transactions grew in 2023 for the first time in a decade, both by volume and value. According to the Bank of England (BOE), cash in circulation has declined very slightly (-0.45%) in 2023, but the value of the £20 denomination which is the most widely used transactional note increased by 3.6%. The BRC says that “this reflects a choice by many households to use cash to budget more carefully during the onset of the cost of living crisis, as well as a natural return to cash usage following the move to contactless during Covid.” [Read more at the BRC]

FYI here are some of my upcoming speaking engagements:

– Digital Euro Conference 2024 (Frankfurt on February 29)[Register here and get a 20% discount with the Kiffmeister20 code]

*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).

Satoshi Capital Advisors is a New York-based, global advisory firm that works with central banks, governments, and the private sector to architect, implement, and operate varying initiatives. Satoshi Capital Advisors’ central bank work revolves around CBDC architecture and implementation, providing advisory services from research phase through to growth phase. Utilizing a product-market fit and technology agnostic approach to CBDC architecture and implementation enables Satoshi Capital Advisors to build tailored solutions, bespoke to local financial system nuances. Satoshi Capital Advisors welcomes requests from central bank officials for virtual and in-person CBDC workshops. [Click here for more information]

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]