A study from PwC conducted on behalf of the European Banking Federation, the European Association of Co-operative Banks (EACB), and the European Savings and Retail Banking Group shows that the introduction of the digital euro could cost up to €30 billion for banks in the eurozone, even though – as currently conceived – it would not offer any recognizable added value for either consumers or businesses. The umbrella organizations of the Savings Banks Finance Group and the Volksbanken Raiffeisenbanken Cooperative Financial Network are therefore calling for closer collaboration with private initiatives in the European financial sector. [Read more at PwC]
The U.S. Securities and Exchange Commission (SEC) and Ripple have jointly asked Southern District of New York federal court to dissolve a prior injunction and release $125 million currently held in escrow. Under the proposal, Ripple would pay a $50 million civil penalty to the SEC, with the remaining funds to be returned to the company. The filing marks a major step in ending a case that has stretched nearly four years and triggered wide industry scrutiny. [Read the filing on X]
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.
I’ve updated my tabulation of the 105 (+1 from end-April) central banks that have recently launched, piloted, experimented with and/or researched retail central bank digital currency (#CBDC). The new entry is Bolivia based on local media reports, so to be taken with a grain of salt. [Read more at Kiffmeister.com]
The Digital Euro Association (DEA) published a paper that examines how the growing $225 billion stablecoin market impacts European financial sovereignty across four critical dimensions: monetary, payments, regulatory, and digital sovereignty. With stablecoins processing over $7 trillion (adjusted volume) in the last 12 months, rivaling established payment networks, Europe sovereignty faces both opportunities and challenges. The research introduces a novel analytical framework and demonstrates that well-regulated euro stablecoins could strengthen European autonomy, while unmanaged foreign alternatives pose sovereignty challenges. [Read more at the DEA]
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.
The U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance staff have given new guidance on “Protocol Staking Activities” such as crypto-assets staked in proof-of-stake blockchains. According to the new guidance, such activities don’t need to register with the SEC, or fall within one of the Securities Act’s exemptions from registration. It added that staking rewards are compensation for a service provided by node operators, not profits earned from “others’ entrepreneurial or managerial efforts,” and do not fall under securities regulation. Custodial staking also can’t be classified as a securities offering as custodians don’t have a direct role in deciding how much is staked and only act as “agents in connection with staking,” according to the division’s staffers. [Read more at the SEC]
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]
Upcoming Speaking Engagements:
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.
The Reserve Bank of India (RBI) outlined its 2025–26 plans for its digital rupee central bank digital currency (CBDC) pilots in its 2024-25 Annual Report. In 2024-25 the pilots tested offline and programmable functionalities, including use cases such as direct benefit transfers, agricultural loans, and targeted employee allowances. These pilots have been extended to public schemes, like direct benefit transfers to farmers against generation of carbon credits and loans to tenant farmers in select locations. Looking ahead, discussions are ongoing with central and state agencies to scale programmable CBDC for defined-use fund transfers. Also, the RBI plans to explore both bilateral and multilateral cross-border CBDC pilots, especially given India’s role as a leading remittance recipient. The upcoming agenda also includes testing new designs, technologies, and use cases such as asset tokenization. [Read more at the RBI]
The UK Financial Conduct Authority (FCA) published a consultation paper that outlines a proposed regulatory framework for the issuance of fiat-referenced stablecoins and the custody of qualifying crypto-assets. The framework focuses on establishing clear rules to ensure the stability, transparency, and redemption rights of stablecoins, mandating that issuers back tokens 1:1 with secure, liquid assets held in statutory trust by independent custodians. Custodians must also segregate and safeguard client assets under trust arrangements. The proposals aim to enhance consumer protection, market integrity, and innovation, while aligning with global standards. The FCA plans further consultations on conduct, prudential, and governance standards, and encourages industry feedback by July 31, 2025. [Read more at the UK FCA]
Bank of Korea (BOK) Governor Rhee Chang-yong reportedly visited the nation’s six largest banks to advocate for the central bank’s two wholesale central bank digital currency (CBDC) projects, Project Hangang and Project Agorá, offering to cover a third of the costs for Project Hangang. This initiative coincides with these banks’ plans to launch a joint stablecoin, highlighting a competitive landscape between public and private digital currencies. The BOK’s strategy includes leveraging permissioned blockchains for tokenized deposits, contrasting with the banks’ preference for permissionless blockchain-based stablecoins. [Read more at The Korea Times]
The Bank for International Settlements (BIS) published a paper that examines the impact of dollar-backed stablecoin flows on short-term US Treasury yields using daily data from 2021 to 2025. The results of the empirical analysis suggest that a 2-standard deviation inflow into stablecoins lowers 3-month Treasury yields by 2-2.5 basis points within 10 days, with limited to no spillover effects on longer tenors. It also finds evidence of asymmetric effects: stablecoin outflows raise yields by two to three times as much as inflows lower them. Decomposing the yield impact by issuer shows that USDT (Tether) has the largest contribution followed by USDC (Circle), consistent with their relative size. [Read more at the BIS]
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.
The Atlantic Council has added 15 new countries and regulatory developments to their Cryptocurrency Regulation Tracker. Its interactive tracker now analyzes 75 economies, including G20 member states, European Union (EU) countries, and economies with the highest rates of cryptocurrency adoption. Of them, it finds that cryptocurrency is legal in 45, partially banned in 20 and generally banned in 10. In twelve G20 countries, representing over 57% of the world’s GDP, cryptocurrencies are fully legal. Regulation is under consideration in all G20 countries. However, only 28 of the 75 countries have regulations in place on taxation, anti-money laundering and combating the financing of terrorism (AML/CFT), consumer protection, and licensing. Just six of the emerging market countries studied have all the above regulations. [Read more at the Atlantic Council]
Hong Kong’s legislature passed the Stablecoin Bill that establishes a licensing regime for fiat-referenced stablecoin issuers in Hong Kong, providing regulatory clarity for upcoming stablecoin issuers. Under the new regime, any person who issues stablecoins in Hong Kong – or issues stablecoins backed by Hong Kong dollars, whether within or outside the city – must obtain a license from the Hong Kong Monetary Authority (HKMA). The relevant parties must satisfy the requirements in areas such as reserve asset management and redemption, including proper segregation of client assets, maintaining a robust stabilization mechanism, and processing stablecoin holders’ requests for redemption at par value with reasonable conditions. They must also comply with requirements in relation to anti-money laundering and counter-terrorist financing, risk management, disclosure and auditing, and fitness and propriety. The ordinance is expected to come into effect by the end of 2025. [Read more at news.gov.hk]
The World Economic Forum (WEF) published a report that assesses current asset tokenization use cases in issuance, securities financing and asset management, highlighting conditions and regional factors that determine successful implementation. It highlights that tokenization, through programmable ledgers, enhances transparency, accessibility, and efficiency, democratizing financial market access. It details five key differentiators: shared systems of record, flexible custodial arrangements, programmability, asset fractionalization, and composability. Despite its benefits, the report identifies barriers to adoption, including legacy infrastructure, a lack of global standards, limited cross-chain interoperability, insufficient secondary market liquidity, and privacy/compliance concerns. [Read more at the WEF]
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.
The paper “Stablecoin Self-Regulation” by Federal Reserve Board (FRB) Principal Economist Francesca Carapella proposes a self-enforcing, market-based alternative to traditional regulation for addressing the fragility of stablecoin issuers. It models an economy where stablecoins and banks coexist, both facing limited commitment to redeem liabilities. To mitigate this, the author introduces a voluntary, two-part mechanism: (1) a loss mutualization fund and (2) costly one-period membership titles that issuers must purchase to insure their obligations. This structure aligns with how central counterparties (CCPs) manage risk. The paper finds that this self-regulatory approach can improve financial stability more effectively than current legislative proposals, which often ignore the indirect impact of regulation on traditional financial institutions and lack key disciplining features. Notably, integrating stablecoin issuers under bank regulation may reduce banks’ incentive to offer insured deposits, potentially increasing systemic risk. [Download the paper at SSRN]
Banco de la República Colombia (BRC) published a paper that explores how central banks can optimize the design of central bank digital currencies (CBDCs) by introducing multiple variants with varying degrees of anonymity and interest rates. The authors examine the trade-offs between anonymity and security and assess the welfare outcomes in economies with and without cash. They find that when anonymity-related externalities (e.g., illicit activity) are high, a cashless society with multiple optimally designed CBDCs maximizes welfare. Even when anonymity costs are absent, a cashless system with one additional CBDC still outperforms systems retaining cash. The study emphasizes the flexibility of multiple CBDCs in tailoring monetary instruments to diverse user preferences while minimizing societal costs, and argues that careful CBDC design can enhance financial stability and efficiency more effectively than static cash-based systems. [Read more at the BRC]
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.
Communications of the Association for Information Systems (CAIS) published a study that investigates the factors that drive countries to develop central bank digital currency (CBDC) projects. The research combines quantitative analysis of data from 68 countries with a qualitative analysis of CBDC white papers. The findings indicate that a country’s political regime, economic freedom, and perceived corruption significantly influence its decision to develop CBDCs. Specifically, countries with more autocratic political systems, less economic freedom, and higher perceived corruption are more likely to pursue CBDC projects. [Read more at AIS]
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.
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]
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.
Ripple Labs and the U.S. Securities and Exchange Commission (SEC) have officially reached a deal that, if approved by a judge, will bring their years-long legal battle to a close. According to a settlement agreement filed in New York on Thursday, both parties have agreed to a $50 million penalty — a portion of the $125 million fine initially imposed last year by Judge Analisa Torres of the Southern District of New York (SDNY), and a tiny fraction of the massive $2 billion fine initially requested by the SEC. [Read more at the SEC]
Stripe launched Stablecoin Financial Accounts, new money management capabilities powered by stablecoins, which will be accessible to businesses in 101 countries. This comes three months after Stripe completed its acquisition of stablecoin platform Bridge. With these new accounts, businesses will be able to hold a balance in stablecoins, receive funds on both crypto and fiat rails (like ACH and SEPA), and send stablecoins almost anywhere in the world. These accounts will allow entrepreneurs in countries with volatile currencies to hedge against inflation and more easily access the global economy. Stripe will start by supporting two dollar-denominated stablecoins—USDC and Bridge’s USDB—and plans to add others over time. [Read more at Stripe]
The U.S. Securities and Exchange Commission (SEC) is considering a potential exemptive order that would allow firms to use distributed ledger technology (DLT) to issue, trade, and settle securities without having to comply with certain registration requirements that may be ill-suited for this technology. This potential conditional exemption from certain SEC registration requirements and associated rules would allow firms to use innovative trading systems for eligible tokenized securities. The contemplated exemption would be conditional. Exempted entities would comply with market integrity conditions for the prevention of fraud and manipulation. This sketch of a potential exemption is a work-in-progress. There would be other conditions, but the goal is to formulate a commercially feasible approach that protects investors, including by ensuring that they have the benefit of cutting-edge technologies for trading, clearing, and settling securities. [Read more at the SEC]
The BIS published the results of an empirical investigation of trends and drivers of cross-border flows of Bitcoin (BTC), Ethereum (ETH), Tether (USDT) and USD Coin (USDC) between 184 countries from 2017 to 2024. These flows are substantial, peaking at around $2.6 trillion in 2021, with the two stablecoins (USDT and USDC) accounting for close to half the volume. The bilateral data allow for the estimation the drivers of these flows in a gravity framework, and how they differ across different types of crypto-assets. The findings highlight speculative motives and global funding conditions as key drivers of native crypto-asset flows. Transactional motives play a significant role in cross-border flows for stablecoins and low-value BTC transactions, where a strong association with higher costs of traditional remittances is found. [Read more at the BIS]
Coinbase has agreed to acquire Deribit, the largest crypto options exchange for $2.9 billion, including $700 million in cash with the balance in stock. Coinbase already has a derivatives subsidiary, which is particularly active in perpetual futures. The transaction is expected to close by the end of the year, subject to regulatory approvals. [Read more at Ledger Insights]
The CFA Institute has published two reports on tokenization. The first one discusses distributed ledger technology, the various models of tokenization, and the processes involved. It also considers the benefits and limitations of tokenization in areas like clearing and settlement, transparency and compliance, and market access. The report further includes case studies from interviews with firms and digital finance professionals on the impact of tokenizing investment products. The value proposition of tokenization revolves around improvements in clearing and settlement, transparency and compliance, and fractionalization and market access. Limitations and challenges include cybersecurity risks, regulatory uncertainties, a still-fledgling market infrastructure, and the issue of whether it makes sense to grant easier access to private market investments for retail investors. [Read more at the CFA Institute]
The second part focuses on the legal and regulatory developments considered necessary to support the tokenization industry. It also analyzes international and supranational standards and proposals by non-governmental bodies and provides a comparative cross-jurisdictional analysis of regulatory sandbox initiatives. The key takeaways are that the growth of digital assets and tokenization requires legal and regulatory frameworks to address issues related to property rights, cross-border recognition and compliance, enforcement rights, and jurisdictional remit, and that global regulatory cooperation and measures to safeguard stakeholders are a priority for regulators and policymakers. [Read more at the CFA Institute]
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.
The European Central Bank (ECB) launched its digital euro innovation platform, and almost seventy organizations have signed up to participate. The platform simulates the envisaged digital euro ecosystem, in which the ECB provides the technical support and infrastructure, such as an application programming interface (API), for European intermediaries to independently develop innovative digital payment features and services. Findings will be published by the ECB in a report to be published later this year. [Read more at the ECB]
The Kyrgyz Ministry of Finance reportedly plans to launch a gold-backed stablecoin pegged 1:1 to the U.S. dollar in Q3 2025. The Gold Dollar (USDKG) will initially be backed by $500 million and be designed to facilitate seamless cross-border transfers. The Ministry aims to expand the gold reserves to as much as $2 billion, with independent audits planned to ensure trust and transparency in the collateral backing. All operational responsibilities—including gold custody, collateralization processes, and token issuance controls— will be handled by an independent Kyrgyz-registered private entity. [Read more at the USDKG.com]
The U.K. Financial Conduct Authority (FCA) published a discussion paper (DP) to seek views on the future regulation of specific crypto-asset activities, ahead of legislation to bring them within regulation. This is the latest policy publication in the FCA’s Crypto Roadmap which provides a clear timeline for consulting on future crypto regulation. Other areas in the roadmap include market abuse and admissions and disclosures, stablecoins and custody, and prudential considerations. This discussion paper follows the publication of draft legislation by the Treasury that, once passed, will bring specific crypto-asset activities within the FCA’s regulation. The DP reflects insights gained from a series of FCA-led industry roundtables. [Read more at the FCA]
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.
