Kiffmeister’s #Fintech Daily Digest (20260815)

August 15, 2026August 15, 2026 ~ kiffmeister ~ Leave a comment

KPMG U.S. Unqualified Audit Opinion on Tether’s 2025 Financial Statements (Tether)

Tether reported that KPMG U.S. issued an unqualified opinion on Tether International’s 2025 U.S. GAAP financial statements, marking a shift from periodic reserve attestations to a full financial-statement audit. The audit tested assets, token-related liabilities, transactions, systems, ownership evidence, valuations and counterparties. Tether says it included physical inspection of its gold bars and showed reserves exceeding liabilities by $6.814 billion at year-end. However, Tether did not release the statements themselves, so there is still much that is not known, such as accounting policies, reserve composition, and counterparty exposures. [Tether]

Use of Cash by Companies in the Euro Area in 2026 (ECB)

According to the latest European Central Bank (ECB) survey of 8,205 euro area consumer-facing merchants, cash acceptance has stabilized rather than continued its post-pandemic decline. 92% of firms with physical points of sale accepted cash in 2026, up from 90% in 2024, while 92% of current acceptors expect to continue over five years. Mobile-payment acceptance increased to 68% from 36% in 2024, alongside broadly unchanged card acceptance (88%). 25% of firms have taken measures to steer customers toward digital payments, and 48% with self-checkout terminals accept no cash at those terminals. Cash-access frictions—especially deposit/withdrawal inconvenience—are increasingly cited by non-acceptors, making cash infrastructure and cash-capable automation the principal unresolved constraints. [ECB]

Monetary Assurance, Payment Authority and the Payment Trust Architecture Design Space (Crunchfish)

Crunchfish published a paper arguing that every payment rests on two separable assurances—monetary assurance (sufficient value exists) and payment authority (the transaction is validly authorized)—whose representations can evolve independently, defining a “payment trust architecture design space”. It maps two dimensions: monetary assurance as “trusted assertion” (system-dependent) versus “trusted object” (independently verifiable), and payment authority as “trusted session” (session-bound) versus “trusted intent” (portable). Their four combinations yield distinct capabilities, generalized through the concept of “portable trust”. Crunchfish’s “governed offline” model is offered as the first practical instance. It gives monetary assurance and payment authority separate lifecycles: the former established in advance through reservation, the latter created locally as a “trusted intent” at payment. The broader principle is proposed as relevant to delegated and programmable payments, AI-agent transactions, and tokenized markets. [Crunchfish]

BTW if you want to see a complete database of my DFC-related posts going back years, including many that didn’t make the Daily Digest cut, click here.

FYI 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.

Kiffmeister’s #Fintech Daily Digest (20260802)

August 2, 2026August 2, 2026 ~ kiffmeister

China Cuts Durian Settlement to 30 Minutes with First Outbound e-CNY Payment to Malaysia (SCMP)

China has completed its first outbound payment via the Cross‑Border e‑CNY Express Service (CBETS) to Malaysia, settling a 43,000 yuan shipment of fresh durian. The transaction was executed by China Construction Bank’s Xiamen branch in coordination with its Labuan branch in Malaysia, using direct bank‑to‑bank ledger transfers and on‑the‑fly conversion into Malaysian ringgit. Compared with traditional correspondent banking networks operating under the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system, this cut settlement to 30 minutes from one to three days and eliminated clearing fees of up to 6% and per‑transaction charges of $25 to $35. CBETS, operated by the e‑CNY International Operation Center under the guidance of the People’s Bank of China’s Digital Currency Institute, provides on‑chain and off‑chain connectivity and 24/7 cross‑border settlement. [SCMP]

FYI most publications are presenting this as a central bank digital currency (CBDC) story, but there’s no concrete evidence that it is. For starters, the Peoples Bank of China (PBOC) announced earlier in the year that the e-CNY is now a tokenized commercial bank deposit-based platform. And earlier stories going back to September 2025 (see below) that I missed make it clear that the Cross‑Border e‑CNY Express Service (CBETS) platform is only operating under PBOC guidance, so none of these platforms are CBDC-based according to the core part of the CBDC definition; a direct liability of the central bank.

26 Financial Institutions Sign On as direct participants with e-CNY Center International (SCIO)

[June 17, 2026] The State Council Information Office of China (SCIO) announced that the e‑CNY International Operation Center, which operates under the guidance of the Digital Currency Institute of the People’s Bank of China, has enrolled 26 institutions as direct participants on its Cross-Border e-CNY Transfer Services (CBETS) platform. Since the beginning of 2026, the e-CNY International Operations Center, which commenced operations in September 2025, has upgraded its three major platforms into the CBETS. CBETS provides on-chain and off-chain connectivity and 24/7 settlement, reducing reliance on three-to-five intermediary correspondent banks per transaction. The 26 aforementioned institutions include Standard Chartered China and Chinese bank branches in Thailand, Singapore, Laos, and Qatar. [SCIO]

e-CNY International Operation Center Officially Launched in Shanghai (PBOC)

[September 25, 2025] The People’s Bank of China (PBOC) formally launched the e‑CNY International Operation Center in Shanghai to provide dedicated infrastructure for cross‑border use of the digital renminbi, framed as part of a broader upgrade of monetary and payment systems. The center’s three core “business platforms” are a cross‑border digital payment platform, a blockchain service platform, and a digital asset platform, together supporting e‑CNY cross‑border settlement, asset tokenization, and related digital financial services. Institutionally, the PBOC’s Digital Currency Institute will build and operate these systems, with a mandate to connect domestic and foreign financial infrastructures and support international operation of e‑CNY. [PBOC]

BTW if you want to see a complete database of my DFC-related posts going back years, including many that didn’t make the Daily Digest cut, click here.

Kiffmeister’s #Fintech Daily Digest (20260529)

May 29, 2026May 29, 2026 ~ kiffmeister

Reserve Bank of India Updates on its CBDC Pilot Programs (RBI)

The Reserve Bank of India (RBI) published its 2025–26 Annual Report in which it provided updates on its multiple retail central bank digital currency (CBDC) pilots tied to direct benefit transfer (DBT) schemes. These included using programmable retail CBDC to distribute food subsidies. Beneficiaries in Gujarat, Puducherry, and Chandigarh received subsidies in CBDC form that could be redeemed only for eligible goods at designated merchants, demonstrating the technology’s ability to target and restrict spending. The RBI views programmability as a key feature for public-sector use cases and plans to extend CBDC pilots to additional DBT programs and broader domestic retail applications during 2026–27. [RBI]

The RBI also reported on its wholesale CBDC pilots. During 2025–26 it developed the Unified Markets Interface (UMI), a platform designed to support tokenized financial assets while using wholesale CBDC for settlement. A pilot involving tokenized certificates of deposit was launched on the platform. The RBI also advanced cross-border wholesale CBDC work through cooperation with Singapore and the UAE and by joining BIS Innovation Hub initiatives Project Rialto and Project Mandala. Looking ahead, it plans additional tokenization pilots, broader participation in UMI-based experiments, and the operationalization of bilateral cross-border CBDC pilots with selected use cases. [RBI]

Eurosystem Moves Toward Extending T2 Operating Hours (ECB)

The European Central Bank (ECB) is proposing a phased extension of TARGET (Trans-European Automated Real-time Gross Settlement Express Transfer) operating hours, in the context of growing instant payments, cross‑border payment reforms and forthcoming distributed ledger technology (DLT) and digital euro services. In the short term it will (i) automatically remunerate excess reserves on all TARGET current accounts, including TARGET Instant Payment Settlement (TIPS) dedicated cash accounts, (ii) introduce rule‑based floor‑ and ceiling‑driven automated liquidity transfers between TIPS cash accounts and main cash accounts via Central Liquidity Management (CLM), and (iii) add a brief weekend TARGET window for liquidity transfers, without changing value‑dating. Medium‑ to long‑term options include near‑24/7 CLM, near‑24/5 real-time gross settlement, later cut‑off times and weekend opening of the Eurosystem Collateral Management System, with open questions on liquidity and run risk when markets are closed, collateral and staffing costs, cyber risk and the alignment of remuneration and value-dating. [ECB].

Research Project on the Master Plan Development for Pacific Island Countries (Fortience)

[March 22, 2026] Fortience (QUNIE) published selection results stating that, under Japan’s Ministry of Economy, Trade and Industry “Global South Future‑Oriented Co‑Creation” program, ABeam Consulting had been chosen for a “Research Project on the Master Plan Development for the Introduction of Central Bank Digital Currency (CBDC) for Cross-Border Payments in Pacific Island Countries.” The RFP window had run from 7 October to 1 November 2024, and the contract’s implementation period was defined as approximately one year from signing, capped at 28 February 2026, implying that most substantive work should have been completed before the March 2026 announcement. The description notes the use of Soramitsu’s blockchain and cites countries “such as Tonga, Samoa, and Cook Islands,” but no master plan, technical design, or central‑bank response linked to this project has been published. [Fortience]

Kiffmeister’s #Fintech Daily Digest (20260416)

April 16, 2026April 16, 2026 ~ kiffmeister

Factors that Promote Adoption and Use of a CBDC Wallet in Peru (IDEAS)

Banco Central de Reserva del Perú (BCRP) economists examined the determinants of adoption and usage of Peru’s retail central bank digital currency (CBDC) pilot, implemented through Viettel’s BiPay digital wallet beginning in October 2024, focusing on eight regions with low financial inclusion. Based on individual-level survey data, active CBDC usage was positively associated with awareness of the BCRP’s role in the pilot, wallet satisfaction, knowledge of functionalities, and prior digital wallet use, while self-employment was negatively associated, plausibly due to the pilot’s closed-loop, non-interoperable design. Targeted advertising significantly increased merchant adoption, active user counts, and bill payment volumes, with merchant network expansion identified as a key transmission channel. The authors conclude that retail CBDC scaling requires attention to both sides of the payment market — user-facing communication and financial incentives on the demand side, merchant onboarding on the supply side — with interoperability remaining a persistent structural barrier to broader adoption. [IDEAS]

South Korean Government to Test Tokenized Deposits on Disbursements (MOEF)

South Korea’s Ministry of Economy and Finance (MOEF) will run a regulatory sandbox pilot in Sejong City to use distributed ledger technology (DLT) based tokenized bank deposits for day‑to‑day government operational spending, testing preset time, amount, and category controls on expenses to improve oversight and reduce misuse, with legal and regulatory changes and nationwide rollout targeted from Q4 2026 as part of a broader plan to digitize around a quarter of treasury disbursements by 2030, building on an earlier tokenized‑deposit subsidy pilot for EV charging infrastructure. https://cointelegraph.com/news/south-korea-pilot-tokenized-deposits-government-spending [MOEF]

Tether Launches tether.wallet Self-Custodial Digital Wallet (Tether)

Tether has launched tether.wallet, a self‑custodial digital wallet intended to extend its stablecoin‑based payment infrastructure directly to end users in over 160 countries. The product aggregates access to Tether’s digital dollars (USD₮, USA₮), gold (XAU₮), and Bitcoin across multiple networks, abstracts away gas‑token management, and enables transfers via simple human‑readable identifiers, reducing frictions that have limited previous wallet adoption. This move potentially deepens dollarization dynamics in high‑inflation and underbanked jurisdictions while bypassing bank‑intermediated channels. [Tether]

Central Banks of UAE and Philippines Agree to Link Instant Payment Systems (CBUAE)

The Central Bank of the United Arab Emirates (CBUAE) and the Bangko Sentral ng Pilipinas (BSP) signed a memorandum of understanding (MoU) to support broader cooperation on financial infrastructure and payments connectivity. This includes working to integrate their instant payment platforms to enable seamless cross-border payment transactions. The MoU also provides for collaboration on central bank digital currency (CBDC) initiatives, including sharing expertise on the development of CBDC platforms for individuals and institutions. [CBUAE]

Kiffmeister’s #Fintech Daily Digest (20260405)

April 5, 2026April 8, 2026 ~ kiffmeister

Is Nigeria’s eNaira Dead? (Cryptonews)

[October 22, 2025] Nigeria’s eNaira has effectively slipped into a quiet death, with official channels and infrastructure fading away even as authorities stop short of formally killing the project. The mobile apps have disappeared from major app stores, the USSD access channel no longer works, leaving users locked out or unable to complete basic actions. And the eNaira’s official website returns a “404 Web Site not found” message and the official social media presence has been silent since 2023. [Cryptonews]

Question to readers: Should the eNaira be classified as “canceled” in the CBDCTracker.org database? The story above is old, but everything it says is now current.

Innovations and the Layering of Money and Payments (SAFE)

In a Sustainable Architecture for Finance in Europe (SAFE) working paper, Ulrich Bindseil argues that technological innovation is reshaping but not abolishing the hierarchical “layering” of money and payment ledgers, with central bank money remaining the ultimate anchor. He develops a typology of ledger layers and balance‑sheet structures, then applies it to central bank digital currency (CBDC), instant payment systems, public blockchains, tokenized multi‑asset platforms, expanded non‑bank access to central bank accounts, and stablecoins, finding that most proposals reorganize tiers rather than create a genuinely flat architecture. This matters because optimal layering balances efficiency, risk allocation, and governance: central banks should preserve singleness of money via a senior public ledger while selectively widening access and modernizing regulation to manage new operational and financial risks. The key unresolved question is how far to extend base‑layer access and programmability without undermining the advantages of a two‑tier banking system or overburdening central banks’ risk‑management role. [SAFE vis SSRN]

Kiffmeister’s #Fintech Daily Digest (20260304)

March 4, 2026March 5, 2026 ~ kiffmeister

The New Financial Ecosystem and the Role of Central Banks (BOJ)

Bank of Japan (BOJ) Governor Ueda Kazuo provided updates to the central bank’s digital payments projects. The BOJ is still investigating retail central bank digital currency (CBDC) with an eye towards providing a “digital form of cash” if needed, and has set up (and now plans to reorganize) a CBDC Forum to draw on private‑sector expertise and consider the future of payments more broadly. Internationally, the BOJ is participating in Project Agorá, exploring tokenized deposits and smart‑contract‑based cross‑border interbank payments on blockchains, and domestically it has launched a sandbox to test settlement in central bank current account balances on blockchain‑based systems, including links to existing infrastructures and use cases such as interbank and securities settlement. [BOJ]

Digital Pound Design Phase Progress Update (BOE)

The Bank of England (BOE) published a progress update on the digital pound design phase, which is focusing on four workstreams: a joint assessment of need, policy and public‑interest impacts, commercial viability, and operational feasibility; a detailed blueprint covering product design, roles of intermediaries, interoperability in a multi‑money ecosystem, product roadmap, alias services and offline functionality; targeted experiments and proofs of concept (including a prototype ledger architecture and the Digital Pound Lab, where firms test use cases such as POS payments, conditional B2B payments, tourist wallets and programmable features via allowances and locks); and extensive engagement with industry, academia and civil society to refine requirements, privacy protections and user safeguards. This work is tightly linked to the UK National Payments Vision and the new Retail Payments Infrastructure Board, with an emphasis on interoperability between bank deposits, tokenized deposits, stablecoins and a potential digital pound, and on preserving access to cash, prohibiting “programmable money”, and embedding strong privacy and data‑protection guarantees in both law and system architecture. The design phase runs to 2026, and the Bank and HM Treasury plan to publish the blueprint assessment and a decision on whether to proceed with building a digital pound later in 2026. [BOE]

Kraken Becomes First Crypto Company to Secure a Fed Master Account (CoinDesk)

Kraken has become the first crypto firm to obtain a Federal Reserve master account, granted to its banking subsidiary Kraken Financial under a Wyoming special-purpose bank charter, with oversight by the Federal Reserve Bank of Kansas City. The account gives Kraken direct access to Fedwire, the Fed’s core interbank payment network, eliminating its previous reliance on partner banks to handle U.S. dollar settlements and enabling faster deposits and withdrawals for large traders and institutional clients. The approval is limited in scope, however, as Kraken will not earn interest on reserves nor have access to the Fed’s emergency lending facilities, unlike traditional banks. [CoinDesk]

Stablecoins and Monetary Policy Transmission (ECB)

The European Central Bank (ECB) published a paper on rising stablecoin adoption’s impact on monetary policy by reshaping banks’ funding structures and, in turn, the strength and composition of transmission channels. As stablecoins alter banks’ liability mix towards wholesale funding, the traditional bank lending channel is strengthened (through tighter funding constraints) but the deposit channel is weakened (by changing how deposit rates and quantities react to policy rates), thereby undermining the predictability of the overall pass‑through from policy rates to financial conditions. If foreign‑currency (especially USD‑pegged) stablecoins became widely used in the euro area, they would increase banks’ reliance on foreign‑currency wholesale funding and “import” foreign monetary and risk conditions into domestic liquidity and spending, eroding monetary sovereignty and making it harder for the central bank to stabilize inflation and output, particularly in stress episodes. [ECB]

Upcoming Speaking Engagements:

The Digital Euro Conference 2026 (Frankfurt, March 26) will explore the future of money with a focus on CBDCs, stablecoins, and commercial bank tokens. This hybrid event offers the perfect platform to understand the future of digital money! [Register here and get 20% off the regular ticket price by using the Kiffmeister20 code!]

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.

Kiffmeister’s #Fintech Daily Digest (20251220)

December 20, 2025December 20, 2025 ~ kiffmeister

European Council Gives Digital Euro the Provisional Green Light (European Council)

The Council of the European Union (“European Council”) has agreed on its positions on introducing a digital euro and clarifying the legal tender status of cash, for its negotiations with the European Parliament. The digital euro would complement physical cash, be backed by the European Central Bank (ECB), and available for payments across the euro area by potentially 2029, with limits on holdings to prevent it being used as a store of value and mandatory free basic services for consumers. Once the proposal to establish the legal framework is adopted by the European Parliament and Council, it will ultimately be for the ECB to decide whether to issue the digital euro. The second position aims to strengthen cash by effectively banning its non-acceptance by retailers (with exceptions for online and unmanned sales), requiring member states to monitor cash acceptance and access, and establishing cash resilience plans for electronic payment disruptions. The Council will now begin negotiations with the European Parliament on both regulations. [Source: European Council]

Federal Reserve Board Proposes Limited-Purpose “Payment Account” (FRB)

The U.S. Federal Reserve Board (FRB) is seeking public comment on a new “payment account” designed for eligible financial institutions to use specifically for clearing and settling payments. Unlike traditional master accounts, payment accounts, holders could only maintain limited overnight balances (lesser of $500 million or 10% of total assets), would receive no interest on balances, and would have no access to the discount window or intraday credit. These accounts would only support specific payment services (Fedwire Funds, FedNow, National Settlement Service, and Fedwire Securities free transfers) that have automated controls to prevent overdrafts, while excluding services like FedACH and check processing. The streamlined account is intended to reduce risks to the Federal Reserve system while providing faster access (generally within 90 days) for legally eligible institutions that primarily need payment clearing and settlement capabilities rather than full banking services. Notably, it does not widen eligibility standards beyond those already in place for regular master account access. [Source: FRB]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20251021)

October 21, 2025October 21, 2025 ~ kiffmeister

Oddo BHF Launches its First Euro-Backed Stablecoin (Blockstories)

Oddo Berliner Handels- und Frankfurter (Oddo BHF) became one of the first European banks to launch a stablecoin with the launch of its EUROD. According to Blockstories, approval was given by Autorité de Contrôle Prudentiel et de Résolution (ACPR), the French banking supervisor. This also makes Oddo BHF the first European bank not to set up a segregated reserve for a bank-issued stablecoin, which means that the stablecoin’s reserves appear on Oddo BHF’s balance sheet and can be integrated into the bank’s fractional-reserve system. Currently only Japan’s, Singapore’s, and the European Union’s stablecoin regulations allow credit institutions to issue stablecoins directly backed by their balance sheets. [Source: Oddo BHF and Blockstories]

Embracing New Technologies and Players in Payments (FRB)

U.S. Federal Reserve Board (FRB) Governor Waller introduced the concept of a “skinny” master account, or payment account, at the FRB’s Payments Innovation Conference. The proposal envisions making basic Federal Reserve (Fed) payment services available to legally eligible institutions focused on payments innovation, especially those that do not require full access to the traditional master account’s suite of services. The skinny account would provide access to Fed payment rails but would come with key restrictions: it would not pay interest, could have balance caps, would lack daylight overdraft privileges, and would not allow discount window borrowing or access to all Fed services. The goal is to streamline account approval for lower-risk firms, helping payment innovators move faster while maintaining the safety and stability of Fed operations. This is presented as a prototype idea, and staff will solicit stakeholder feedback going forward. [Source: FRB]

GSMA and Leading African Operators Propose Minimum Requirements for Affordable 4G Smartphones (GSMA)

The Global System for Mobile Communications Association (GSMA) and six leading African mobile operators have announced a new initiative to establish minimum requirements for affordable entry-level 4G smartphones, aimed at accelerating digital inclusion across Africa. The proposal is part of the GSMA Handset Affordability Coalition and addresses smartphone affordability as the primary barrier to mobile internet adoption in Sub-Saharan Africa, where more than 3 billion people globally live within mobile broadband coverage but don’t use the internet. According to GSMA Intelligence, a $40 smartphone could enable an additional 20 million people in Sub-Saharan Africa to access mobile internet, while a $30 device could connect up to 50 million people. The initiative proposes baseline specifications for memory, RAM, camera quality, display size, battery performance, and other features to ensure viable 4G smartphone experiences at reduced costs. The GSMA will engage with manufacturers and technology companies to gain support for these affordable devices, while simultaneously calling on African governments to remove taxes on entry-level smartphones priced below $100, as VAT and import duties can increase device prices by more than 30% in some countries. [Source: GSMA]

Upcoming Speaking Engagements:

Stablecoin C-Suite Summit (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]

The Digital Euro Conference 2026 (Frankfurt, March 26) will explore the future of money with a focus on CBDCs, stablecoins, and commercial bank tokens. This hybrid event offers the perfect platform to understand the future of digital money! When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [register here]

Kiffmeister’s #Fintech Daily Digest (20250516)

May 16, 2025May 16, 2025 ~ kiffmeister

Judge Rejects SEC and Ripple’s Bid to Rework XRP Settlement (Decrypt)

U.S. District Judge Analisa Torres denied a joint bid by the U.S. Securities and Exchange Commission (SEC) and Ripple Labs to approve their recent agreement to drop their appeals and end a four-year legal battle, citing procedural errors. The SEC and Ripple had filed for an indicative ruling, a non-binding signal from the court that it would accept a deal dissolving Ripple’s injunction and reducing its $125 million fine to $50 million. But it bypassed Rule 60 of civil procedure, which governs relief from final judgments, and failed to demonstrate the “exceptional circumstances” required under that standard. However, Ripple’s Chief Legal Officer Stuart Alderoty said that “Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the Court, together”. [Read more at X]

ECB sets back deadline for non-bank PSP access to TARGET (ECB)

The European Central Bank (ECB) has postponed a deadline for allowing non-bank payment service providers (PSPs) to access central bank-operated payment systems, including the TARGET settlement and the TIPS instant retail payment systems. This decision is a result of delays in some euro area countries in transposing the required amendments to the Settlement Finality Directive (SFD) and Payment Services Directive (PSD2) into their national legislation. The postponement to October 2025 necessary to avoid legal risks. [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.

Kiffmeister’s #Fintech Daily Digest (20250415)

April 15, 2025April 15, 2025 ~ kiffmeister

A formally defined model to describe and compare payment system architectures (BIS)

The Bank for International Settlements (BIS) proposed a formally defined model to represent three key functions of payment system architectures: issuance/withdrawal, holding and transfer of funds in a standardized manner. The model defines payment diagrams, using a precisely defined syntax. The paper illustrates the application of these diagrams for domestic and cross-border account transfers, as well as cash, card, e-money and stablecoin payments. However, the payment diagrams can be used for any type of funds and can be applied across different payment system architectures. It also demonstrates how the diagrams correspond to the balance sheet approach commonly used in economics, and that it offers added value by providing an end-to-end visualization of every stage of the payment journey. The model provides a tool for central banks, regulators and the payment industry to better understand and compare existing and new payment system architectures. [Read more at the BIS]

Fnality rolls out “earmarking” for programmable payments (Fnality)

Fnality has released a new “earmarking” feature that allows banks to program funds for release upon receipt of proof of an event elsewhere. For example, institutions will be able to systematically program when funds move in exchange for a specified asset, or a related market event. A proof is a cryptographically signed piece of data representing specific information from another system, triggering the release of the £FnPS’s digital representation of central bank funds. When an earmark is in place prior to its release, the funds remain on the originating participant’s balance sheet at all times. [Read more at Fnality]