In an interview with the Financial Times (FT) the chair of the Basel Committee on Banking Supervision, Erik Thedéen, has called for a reworking of global crypto rules for banks after the US and UK refused to adopt requirements imposing a 1,250% risk weighting on stablecoins and other digital assets that used permissionless blockchains. Thedéen noted that the sharp rise in stablecoin usage and differing regulatory stances have made it difficult to achieve consensus, prompting calls for a new approach. While the current Basel rules, originally focused on assets like bitcoin, would subject many stablecoins to the harshest capital requirements, major regulators such as the US Federal Reserve and the Bank of England have decided not to implement them in full. [Source: FT]
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.
JPMorgan and Singapore’s DBS Bank are collaborating to develop a cross-border tokenized deposit framework that will connect their respective blockchain payment systems, allowing institutional clients to transfer tokenized deposits in real time between both public and private blockchains. This initiative links DBS Token Services with JPMorgan’s Kinexys Digital Payments project, enabling interoperability and 24/7 settlement between banks without relying on traditional payment rails. The move aims to set new standards for interoperability in institutional digital payments, reflecting the global trend of major banks seeking seamless, cross-system digital deposit solutions. According to BIS, about a third of banks worldwide are now exploring or launching tokenized deposit innovations, signaling accelerating adoption in this area. [Source: CoinDesk]
Visa and Mastercard have reached a revised $38 billion settlement with U.S. merchants, aiming to resolve two decades of litigation over antitrust violations and high card “swipe fees.” The deal would lower card processing fees by 0.1 percentage point for five years and grant merchants more control over card acceptance and surcharging, with standard consumer rates capped at 1.25% for eight years—a 25% drop. While Visa and Mastercard tout the relief for all merchants, especially smaller ones, major merchant groups like the National Retail Federation object, arguing the reforms don’t go far enough to address excessive fees and market power. The settlement replaces a previously rejected $30 billion accord and comes amid opposition from some merchant coalitions. Visa and Mastercard deny wrongdoing in agreeing to settle. [Source: Reuters]
IOSCO published a report on the tokenization of financial assets that assesses the adoption and implications of distributed ledger technology (DLT) in capital markets. It finds that while tokenization aims to drive efficiencies—such as fractionalization, programmability, and atomic settlement—the ecosystem remains nascent, with limited large-scale commercial adoption mostly seen in fixed income products and money market funds. Most lifecycle processes (issuance, trading, settlement, custody) continue to depend on conventional infrastructure due to challenges in DLT interoperability and credible on-chain settlement assets. The report highlights that risks from tokenization generally fit under existing legal and operational risk categories, but technology-specific risks (like smart contract bugs, cyber threats, and legal uncertainties around token ownership) may demand new controls. Regulators have mainly relied on existing, technology-neutral frameworks, sometimes complemented by specific guidance, sandboxes, or updated laws, as the economic substance of tokenized assets closely resembles traditional financial products. [Source: IOSCO]
The World Bank published a report that analyzes new data on fast payments systems (FPS) in Latin America and the Caribbean (LAC). FPSs are rapidly transforming digital finance in LAC, making digital transactions far faster, more affordable, and accessible. In the last eight years, fast payments grew from 2% to about 45% of all digital payments in LAC-11 countries, catalyzed especially by the COVID-19 pandemic and proactive central bank policies. Brazil’s Pix system stands out globally for per-adult transaction volume, demonstrating how open design, broad use cases, and regulatory support drive adoption. Most LAC nations now offer fast payments through varied models, with increasing central bank involvement. These systems deepen financial inclusion for those with accounts and can attract the unbanked, but further policy attention is needed to expand access. Challenges remain around interoperability, governance, fraud, and use-case diversification. The report recommends prioritizing open nonbank access, robust governance, broader use cases, enhanced fraud management, and alignment with digital public infrastructure for sustained impact and inclusion. [Source: World Bank]
Upcoming Speaking Engagements:
The Cedi@60 Anniversary Currency Conference (Accra, Ghana, November 17-20) hosted by the Bank of Ghana, in partnership with Currency Research, will celebrate 60 years of the Ghanaian Cedi, bringing together leaders from across Africa and beyond to reflect on the currency’s legacy and chart its digital future. Learn about Ghana’s eCedi pilot and the future of sovereign digital currencies in Africa, and engage with innovators driving mobile money, QR code payments, and financial inclusion across the region. [Register here and get 15% off by using the Kiffmeister15 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.
The Bank of England (BOE) published a consultation paper that outlines its proposed regulatory regime for sterling-denominated systemic stablecoins, digital assets that could pose risks to UK financial stability if widely used for payments. The regime would require systemic stablecoin issuers to hold at least 40% of their backing assets as non-interest-bearing BOE deposits and up to 60% in short-term UK government debt. Issuers must meet robust capital and reserve requirements, with reserves held in trust for holders to protect against market and insolvency risks. Individuals would be subject to £20,000 per-coin holding limits, and businesses to £10 million limits, although retail businesses and intermediaries servicing retail customers (such as crypto-asset trading platforms) could be exempted. Systemic stablecoins would be supervised jointly by the BOE and the Financial Conduct Authority (FCA), but only after HM Treasury (HMT) formally recognizes a stablecoin or its issuer as systemically important. Non-systemic stablecoins (not widely used) will face solo FCA regulation. This consultation closes on February 10, 2026. After considering stakeholder feedback, the BOE will develop and consult on the detailed Codes of Practice in 2026, with finalized rules expected thereafter. [Source: BOE]
The Journal of Corporate Finance (JoCF) published a paper that analyzes the accuracy and risk management of blockchain-based price oracles, focusing on Chainlink Price Feeds (CPFs) as the dominant oracle infrastructure for decentralized finance (DeFi), particularly collateralized lending protocols. The authors compile a dataset of over 150 million CPF price observations on Ethereum and match them to centralized exchange benchmarks, estimating how price deviations are shaped by oracle design, reporter behavior, and market conditions. Employing econometric models, they find that CPF price deviations average 57 basis points, and that tighter update parameters and faster heartbeats improve accuracy, while volatility and trading volume increase deviations. A Markov framework reveals most accuracy violations resolve within minutes, with severity and duration affecting the odds of recovery. The study also analyzes user behavior in leading DeFi lending markets, showing that improved oracle accuracy allows users to optimize collateral buffers more effectively, enhancing capital efficiency but with varied effects by user sophistication and asset type. [Source: JoCF]
Upcoming Speaking Engagements:
The Cedi@60 Anniversary Currency Conference (Accra, Ghana, November 17-20) hosted by the Bank of Ghana, in partnership with Currency Research, will celebrate 60 years of the Ghanaian Cedi, bringing together leaders from across Africa and beyond to reflect on the currency’s legacy and chart its digital future. Learn about Ghana’s eCedi pilot and the future of sovereign digital currencies in Africa, and engage with innovators driving mobile money, QR code payments, and financial inclusion across the region. [Register here and get 15% off by using the Kiffmeister15 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.
Ulrich Bindseil posted a paper that examines the regulatory and financial stability implications of stablecoins, framing them as electronic money issued by narrow balance sheet entities onto programmable platforms. He highlights that European, U.S and U.K. regulatory approaches aim to prevent stablecoins from destabilizing the financial system, but the rules on what assets must back stablecoins diverge widely, with the U.S. favoring short-dated Treasury bills, the EU requiring bank deposits, and the U.K. preferring central bank deposits. However, all insist that stablecoins must not pay interest, a legacy from the era of paper money that does not make sense for electronic assets. The rationale appears to be protection of banks from excessive competition, based on supposed positive externalities from deposit creation and lending, yet the author argues that non-remuneration is a blunt instrument, not a well-designed response to any market failure. Opportunity costs for stablecoin holders rise with interest rates, triggering shifts to other assets, while issuers still earn intermediation margins. The author proposes that better-targeted regulation can address risks and market failures without unnecessarily distorting incentives or relying on mechanical non-remuneration, thus calling for more nuanced policy approaches. For example, Ulrich suggests targeted regulatory charges levied on stablecoin issuers, designed to offset any negative externalities or to compensate for positive externalities lost when funds flow out of banks toward stablecoins. [Source SSRN]
It is notable that the European Parliament’s draft digital euro legislation prioritizes the rollout of the offline version. It mandates that the European Central Bank (ECB) complete all technical and organizational preparations for the offline digital euro before the online version is considered. Introduction of the online digital euro will depend on a market assessment by the European Commission, which will proceed only if there is no suitable pan-European private retail payment solution that covers person-to-person, point-of-sale, and e-commerce. Both forms, upon ECB authorization, enter a minimum 24-month adaptation phase to allow payment service providers and stakeholders to adjust securely and gradually. This framework aims to avoid crowding out private sector solutions, synchronize technical standards, and ensure interoperability, with clear fee guidelines and user choice, making public sector intervention conditional and proportional to actual market needs. [Source: European Parliament]
The draft legislation also requires that offline transactions resemble the anonymity of physical cash. Payments are conducted directly between devices, without reliance on central infrastructure, so payment service providers do not process or record any personal data linked to individual transactions. Only minimal information needed for funding or defunding the device—such as device identifiers—is handled, and no monitoring or tracking of payment activity occurs during offline use. Robust safeguards will be required to prevent the identification of users through device registration, mandating that only the data strictly necessary for regulatory compliance is processed and never used for profiling or tracing specific transactions. As a result, offline digital euro payments would be highly privacy-preserving, ensuring that personal information and payment details remain outside the access of both authorities and service providers.
Upcoming Speaking Engagements:
The Cedi@60 Anniversary Currency Conference (Accra, Ghana, November 17-20) hosted by the Bank of Ghana, in partnership with Currency Research, will celebrate 60 years of the Ghanaian Cedi, bringing together leaders from across Africa and beyond to reflect on the currency’s legacy and chart its digital future. Learn about Ghana’s eCedi pilot and the future of sovereign digital currencies in Africa, and engage with innovators driving mobile money, QR code payments, and financial inclusion across the region. [Register here and get 15% off by using the Kiffmeister15 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.
The Canadian government will introduce legislation to regulate the issuance of fiat-backed stablecoins in Canada. Under this framework, issuers will be required to maintain and manage adequate asset reserves, establish clear redemption policies, and implement robust risk management systems to protect consumers. The legislation ensures privacy safeguards for Canadians’ sensitive information and includes national security provisions to strengthen trust in the system, making stablecoins safe and secure for individuals and businesses. The Bank of Canada will administer these regulations, retaining $10 million over two years and subsequently $5 million annually, with costs offset by regulated stablecoin issuers. Additionally, the Retail Payment Activities Act will be amended to allow for the regulation of payment service providers conducting payment functions with stablecoins, reinforcing oversight and consumer protection in digital payments. [Source: Government of Canada]
Some Google researchers posted a paper on arXiv on the concept of single-use quantum tokens designed for secure, unforgeable, anonymous transactions with classical verification. Leveraging the quantum no-cloning theorem, which states that it is physically impossible to make an exact copy of an unknown quantum state, the authors develop tokens that are identically minted and provide strong privacy guarantees, including the ability of users to verify whether the issuing bank is tracking them through an audit process. The scheme theoretically supports classical verification, which means that all steps to prove the quantum token’s validity require only regular (non-quantum) memory and communication. However, given current technology limitations, only the issuer can check the validity of a token, in contrast to public key schemes, where any user can efficiently verify the tokens. [Source: arXiv]
Upcoming Speaking Engagements:
The Cedi@60 Anniversary Currency Conference (Accra, Ghana, November 17-20) hosted by the Bank of Ghana, in partnership with Currency Research, will celebrate 60 years of the Ghanaian Cedi, bringing together leaders from across Africa and beyond to reflect on the currency’s legacy and chart its digital future. Learn about Ghana’s eCedi pilot and the future of sovereign digital currencies in Africa, and engage with innovators driving mobile money, QR code payments, and financial inclusion across the region. [Register here and get 15% off by using the Kiffmeister15 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.
Wyoming-based crypto-focused Custodia Bank suffered another legal setback in its multi-year campaign to secure a Federal Reserve master account, which would provide direct access to the U.S. central bank’s payment system. The 10th Circuit Court of Appeals affirmed a lower court’s decision, ruling that the Fed possesses the discretion to deny master account access to eligible entities, contrary to Custodia’s argument that the law requires approval for all qualifying institutions. Custodia’s claims that the Federal Reserve Bank of Kansas City coordinated improperly with the Board of Governors and the Biden administration were also rejected. While the ruling leaves open the possibility of Custodia petitioning for a rehearing, no clear path forward exists, though Fed Governor Chris Waller recently mentioned potential for a limited-access “skinny master account” for crypto firms to address systemic risk concerns. [Source: CoinDesk]
In early October, the Group of Thirty (G30) published a report that explores how rapid technological innovation is transforming money and payment systems while exposing new risks to monetary stability. It emphasizes the enduring importance of trust, singleness, and stability in the monetary system, particularly through the two-tier structure where central bank and commercial bank money remain interchangeable at par—an achievement of modern regulation and oversight. Drawing on historical lessons from commodity money and banking eras, the report argues that while new technologies like cryptocurrencies and stablecoins promise efficiency and programmability, they also risk undermining monetary singleness, facilitating illicit finance, and evading regulation if not carefully managed. The working group recommends policymakers accelerate work on central bank digital currencies (CBDCs), encourage bank sector innovations such as tokenized deposits within a robust regulatory perimeter, and urgently develop strong regulatory frameworks for stablecoins to promote payment competition without destabilizing the system. [Source: G30]
I’ve been reporting a lot of updates on digital euro legislative process, but here are a few I missed:
At its October 23, 2025 Summit, the European Council called for the swift completion of digital euro legislative work and the acceleration of other preparatory steps. The statement noted that “the digital euro offers a strategic opportunity for supporting a competitive and resilient European payment system, contributing to Europe’s strategic autonomy and economic security, and strengthening the international role of the euro”. The European Council is the top political body of the European Union (EU), composed of the heads of state or government of all EU member countries, the European Council President, and the European Commission President. [Source: European Council]
Upcoming Speaking Engagements:
The Cedi@60 Anniversary Currency Conference (Accra, Ghana, November 17-20) hosted by the Bank of Ghana, in partnership with Currency Research, will celebrate 60 years of the Ghanaian Cedi, bringing together leaders from across Africa and beyond to reflect on the currency’s legacy and chart its digital future. Learn about Ghana’s eCedi pilot and the future of sovereign digital currencies in Africa, and engage with innovators driving mobile money, QR code payments, and financial inclusion across the region. [Register here and get 15% off by using the Kiffmeister15 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.
The Bank of England (BOE) published a digital pound design note that explores how alternative aliases, such as mobile numbers, email addresses, or randomly generated codes, could improve convenience, privacy, and interoperability in retail payments. The note highlights that, when used as alternative identifiers for digital money accounts, aliases can improve the convenience, privacy and security of retail payments, while also supporting interoperability between different payment schemes and jurisdictions. The BOE proposes that a digital pound alias service should be integrated into its infrastructure, ensuring neutral mapping of aliases to user accounts irrespective of provider, but with careful safeguards for privacy. The preferred model would see the BOE host or orchestrate the service while potentially delegating data management to intermediaries (payment interface providers), balancing system control with innovation and privacy. [Source: BOE]
The BOE launched its Synchronization Lab, a non-live environment aimed at helping industry participants demonstrate and test synchronization use cases for the renewed real-time gross settlement (RTGS) service (RT2). The Lab enables potential synchronization operators, such as RTGS account holders, asset ledger operators, and end-customers, to experiment with and validate business models, technical designs, and settlement processes for synchronized (atomic) transactions in central bank money. Running for six months starting in spring 2026, it will provide a platform for hands-on prototyping and evaluation of different synchronization models, allowing participants to build, integrate, and demonstrate their solutions while the Bank gathers insights to refine the RTGS synchronization capability for future production. The initiative is complementary to the Bank’s other innovation programs but does not involve real-money payments or constitute a regulatory sandbox. [Source: BOE]
The BIS Financial Stability Institute (FSI) published a brief that analyzes regulatory approaches for stablecoin-related yield products, where crypto-asset service providers (CASPs) offer returns to holders of payment stablecoins, despite these tokens not being designed to generate on-chain yields. CASPs create returns through mechanisms such as lending, margin pools, DeFi protocols, or loyalty programs, which blur payment-investment boundaries and expose users to consumer protection risks, absent deposit insurance or strict oversight. While all surveyed jurisdictions prohibit issuers from directly remunerating stablecoin balances, regulation of CASP-provided yields varies: some (EU, Hong Kong) ban yield products entirely, some (Singapore) restrict them for retail users but allow for professionals, and others (US) currently lack explicit prohibitions. The paper highlights potential risks of these products, including consumer protection holes, financial stability vulnerabilities, and operational conflicts of interest. Addressing these risks may require a regulatory framework that cover CASPs’ stablecoin-related activities, close regulatory gaps and safeguard end users’ protection and financial stability. [Source: BIS FSI]
Vantage Bank and Custodia have launched a platform enabling U.S. community and regional banks to offer tokenized deposits and stablecoins, integrating these digital assets directly into online banking environments. This interoperable solution allows member banks to control their own wallets for tokenized deposits and stablecoins, shifting tokens seamlessly between regulatory categories while maintaining oversight and deposit stability. Early use cases include instant cross-border payments and flexible payroll options. The initiative distinguishes itself by addressing interoperability—creating a single token usable as both a tokenized deposit and a stablecoin—and offers open access to institutions of all sizes. Custodia’s compliance credentials ensure regulatory alignment, and the system is designed to preserve deposit stability within banks, and unify tokenized deposits and Avit stablecoins under a shared smart contract framework. Only traditional and tokenized deposits are FDIC insured; stablecoins remain uninsured and subject to regulatory risks. [Source: Custodia Bank]
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! When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [register here]
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.
The Bank of England (BOE) published a note that outlines its current thinking on offline payments for a potential digital pound, distinguishing between “deferred offline payments” (similar to card transactions where payment is queued until a party reconnects online) and “device offline payments” (where value moves directly between devices out of online system view, like cash transfers). The note emphasizes the established use cases for deferred offline payments (e.g., transit, vending machines) and acknowledges future opportunities and resilience benefits for device offline payments, though risks and technical maturity mean such device-to-device features would not be available at launch. [Source: BOE]
The Reserve Bank of India (RBI) reportedly launched the offline digital rupee CBDC during the Global Fintech Fest 2025 in Mumbai. It would offer direct wallet-to-wallet transfers, benefiting remote areas and those without banking access. Users will be able to download wallets from 15 major banks. The wallets will offer secure recovery options in case of lost devices, alongside transaction limits set at Rs 50,000 per day or 20 transactions, with wallet balances capped at Rs 1 lakh. Key features will include programmable money (restricting usage by location, time, or purpose), and support for government welfare and corporate payments. [Source: CSR Journal]
Coincidentally, the RBI officially launched its “HaRBInger 2025 – Innovation for Transformation” hackathon, which features as one of the three focus areas, offline central bank digital currency (CBDC). Participants are invited to design a secure, user-friendly, tamper-resistant, and scalable solution for enabling offline digital rupee transactions. The solution should allow consecutive offline payments without real-time internet or telecom connectivity and ensuring double-spend prevention. It should work on low-cost devices and be agnostic across devices and communication protocols, and work on different form factors. [Source: RBI]
Blockstories’s Louis Tellier highlighted three key insights about the stablecoin business in Europe under MiCA regulation. First, banks issuing stablecoins are not required to maintain segregated reserves, allowing them to integrate stablecoin assets within their balance sheets and partially lend them under a fractional-reserve model, which provides banks a unique competitive edge over electronic money institutions (EMIs) like Circle that must maintain fully backed, segregated reserves. Second, despite MiCA’s prohibition on yield distribution for stablecoins, some platforms have enabled yield via DeFi integrations through non-custodial wallets—taking advantage of a regulatory “DeFi exemption” that falls outside MiCA’s scope; recent examples include Bitpanda and Deblock using protocols like Morpho. Lastly, deploying bank-issued stablecoins in DeFi is now feasible, with regulations clarifying that issuers need not know the identity of every holder at all times, as long as compliance features such as blacklists and token freezing are embedded in smart contracts, demonstrated by Société Générale and ODDO BHF. [Source: LinkedIn]
Nigeria’s Ministry of Finance and central bank have reportedly established a working group to examine the adoption of stablecoins as part of its financial sector innovation agenda. They aim to explore the broader implications of integrating stablecoins, balancing support for technological innovation with the need to mitigate associated risks. This is all against the backdrop of the underwhelming response to the e-Naira CBDC. [Source: Business Day Nigeria]
Bank Negara Malaysia (BNM) is reportedly expected to complete its proof-of-concept for a domestic wholesale central bank digital currency (CBDC) by the end of 2025. This initiative seeks to evaluate the potential use of CBDC within Malaysia’s wholesale payment system, especially focusing on the real-time electronic transfer of funds and securities system (Rentas), and to improve the understanding of distributed ledger technology (DLT) and CBDC for both BNM and the broader financial sector. Additionally, BNM is actively participating in several Bank for International Settlements Innovation Hub-led projects—such as Project Dunbar, Project Mandala, and Project Rialto—which explore how multi-CBDC arrangements can make cross-border wholesale payments more efficient, faster, and secure. [Source: The Edge Malaysia]
[February 4, 2025] The Ethiopian Parliament passed into law National Bank of Ethiopia (NBE) Proclamation No. 1359/2025, establishing a legal framework for the introduction of a digital birr central bank digital currency (CBDC). It permits the central bank’s Board to issue a Directive to issue CBDC as legal tender of the country. [Source: NBE]
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]
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.
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]
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]
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]
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.
IOSCO published a review that assesses the progress made by 20 jurisdictions in implementing key policy recommendations for the regulation and oversight of crypto and digital asset markets, with a focus on investor protection and market integrity. IOSCO finds significant steps toward developing regulatory frameworks, noting that most jurisdictions have either adapted existing laws or introduced new rules for crypto-asset service providers (CASPs), especially around governance, disclosure of conflicts, fraud prevention, custody of assets, and cross-border cooperation. While there has been encouraging momentum, notable challenges persist: regulatory approaches and coverage vary widely, particularly for new business models (like staking and lending), and cross-border cooperation is developing but remains limited. The report emphasizes the need for ongoing reforms, proactive monitoring of emerging risks, and enhancements to information-sharing mechanisms to address the sector’s fast evolution and support global regulatory consistency. IOSCO calls for jurisdictions to fully implement all 18 recommendations, highlighting the importance of robust frameworks as crypto and stablecoin activity grows, and urges international collaboration to mitigate risks, regulatory arbitrage, and market instability. [Source: IOSCO]
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]
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.
