Kiffmeister’s #Fintech Daily Digest (20260209)

February 9, 2026February 9, 2026 ~ kiffmeister

I’m continuing my backfilling, this time catching up to some papers that were published in January that I put on the back burner because January was one of *those* months:

The Hidden Plumbing of Stablecoins: Financial and Technological Risks in the GENIUS Act Era (MIT DCI)

The MIT Digital Currency Initiative (DCI) published a paper evaluates the financial, technological, and regulatory risks facing U.S. dollar stablecoins under the 2025 GENIUS Act. The authors argue that while the Act strengthens reserve asset quality and transparency, it treats stablecoin stability primarily as a balance-sheet problem, leaving critical vulnerabilities unaddressed. Maintaining par-value redemption depends not only on high-quality backing assets but also on the functioning of Treasury and repo markets, broker-dealer balance-sheet capacity, and blockchain operational reliability. The paper identifies three interconnected risk layers: financial risks (including Treasury market fragility and dealer intermediation bottlenecks), technological risks (smart contract bugs, consensus attacks, bridge failures), and regulatory gaps (undefined redemption mechanics, lack of capital requirements, no access to Federal Reserve liquidity facilities). The analysis reveals that even conservatively backed stablecoins could face stress from redemption surges or market disruptions, and that stablecoin issuers have significantly lower capital buffers than commercial banks. The authors conclude that durable stability requires an integrated approach spanning financial-market infrastructure, prudential regulation, and software governance, while highlighting a key policy dilemma: granting stablecoin issuers Fed access could reduce liquidity risk but might disintermediate banks and affect monetary policy transmission. [Source: MIT DCI]

Stablecoins in Retail Payments (ArXiv)

ArXiv published a paper that systematically compares stablecoin-based payments with traditional card networks as retail payment systems. The authors introduce the CLEAR framework (Cost, Legality, Experience, Architecture, and Reach) to evaluate both systems across five dimensions. Their analysis reveals that while stablecoins offer advantages like continuous settlement, lower rail-level fees, and programmability, they suffer from significant drawbacks including weaker consumer protection (no native chargebacks), higher user-facing complexity (gas fees, wallet management), fragmented interoperability across blockchains, and limited merchant acceptance. Card networks, by contrast, subsidize consumers through interchange fees, provide strong legal recourse mechanisms, and benefit from standardized global infrastructure and network effects. The paper concludes that stablecoins demonstrate conditional advantages in closed-loop environments, cross-border corridors, and high-friction payment contexts (particularly in high-inflation economies), but remain structurally disadvantaged as general-purpose retail payment instruments compared to card networks due to their institutional incompleteness and lack of coordinated governance frameworks. [Source: ArXiv]

Central Bank Digital Currency and Monetary Sovereignty (CEPR)

The Centre for Economic Policy Research (CEPR) published an article that argues that a central bank digital currency (CBDC) is not essential for maintaining monetary sovereignty, contrary to popular claims. The author contends that throughout history, monetary stability has relied on a hybrid system of publicly defined units of account backed by private money (like bank deposits), rather than universal access to public currency. True monetary sovereignty depends on the central bank’s legal authority and its capacity to absorb risk through balance-sheet operations during crises, not on issuing retail digital currency. The article further distinguishes between money (the settlement asset) and payments (the transaction mechanism), arguing that concerns about foreign payment providers are payment system issues requiring regulatory solutions, not CBDC. [Source: CEPR]

Central Bank Digital Currency and Gresham’s Law: An Experimental Analysis (SNB)

The Swiss National Bank (SNB) published a paper that examines how people use central bank digital currency (CBDC) versus risky bank deposits through a laboratory experiment. The researchers tested Gresham’s law—the principle that “bad money drives out good”—by having participants allocate funds between a risk-free account (like CBDC) and a risky account (like bank deposits) that could lose 50% with 10% probability. Key findings show that when the risk-free account is unrestricted, people extensively hold and pay with it. However, when limited by a ceiling or negative interest rate, people tend to hoard the risk-free money as a store of value while using risky money for payments—confirming Gresham’s law. The study concludes that mechanisms designed to limit CBDC holdings (necessary to protect the banking system) may undermine its effectiveness as a payment method, suggesting it may be better to build payment systems on existing bank deposits rather than CBDC. [Source: SNB]

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 (20260207)

February 7, 2026February 7, 2026 ~ kiffmeister

Universal Launches UAE’s First Central Bank-Registered USD Stablecoin (Universal Digital)

[January 29, 2026] Universal Digital Intl Limited become the first Foreign Payment Token Issuer registered by the Central Bank of the United Arab Emirates (UAE), alongside the launch of USDU, the first USD-backed stablecoin to be registered as a Foreign Payment Token under the UAE’s Payment Token Services Regulation. This makes USDU the only compliant USD settlement option for digital assets in the UAE market. The stablecoin is backed 1:1 by reserves held in safeguarded accounts at Emirates NBD and Mashreq, with Mbank providing corporate banking support, and features monthly independent attestation by a global accounting firm. Universal, regulated by Abu Dhabi Global Market’s Financial Services Regulatory Authority, is partnering with AECoin, the first licensed UAE Dirham (AED) stablecoin in the UAE, for future AED conversions and with Aquanow for broader institutional distribution, positioning USDU as a bridge between traditional financial systems and the emerging digital asset economy both domestically and internationally. [Source: Universal Digital]

Some more backfilling:

Potential Implementation of Timor-Leste eCentavos (BCTL)

[September 6, 2024] Banco Central de Timor-Leste (BCTL) published its 2025-2035 Strategic Plan for Financial Sector Development in which it discussed its plans to possibly issue eCentavos central bank digital currency (CBDC), as part of its strategy to modernize the financial system, enhance payment efficiency, and promote financial inclusion. The project will follow a phased approach starting with a comprehensive feasibility study in 2025 that examines potential benefits, challenges, and lessons from other central banks’ CBDC experiences. This may be followed by pilot testing in at least five municipalities in 2026, and full-scale implementation in 2028. The plan emphasizes the importance of assessing technological resilience, privacy and security concerns, user adoption, and interoperability with existing financial systems during the gradual rollout. [Source: BCTL]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20260203)

February 3, 2026February 3, 2026 ~ kiffmeister

BSP Eyes CBDC for Settling Tokenized Government Bonds (GMA News)

The Bangko Sentral ng Pilipinas (BSP) is reportedly developing a second proof of concept for its wholesale central bank digital currency (CBDC) to settle tokenized government bonds, following the completion of Project Agila testing in 2024. According to BSP deputy governor Mamerto Tangonan, this initiative will provide a settlement instrument for the Bureau of the Treasury’s tokenized treasury bonds (TTBs), which raised ₱10 billion from the domestic bond market using distributed ledger technology. The wholesale CBDC is intended for use by commercial banks and financial institutions for interbank payments, securities transactions, and cross-border payments, with the BSP planning to expand participation beyond the initial six banks in the next testing phase, though no specific timeline has been announced. [Source: GMA News]

Understanding Disputes Over Digitalization: CBDC Cross-Border Perspectives (Emory Law)

The Emory International Law Review published a paper by Heng Wang that examines the complexity of disputes arising from digitalization through the lens of cross-border central bank digital currencies (CBDCs). The paper analyzes CBDC-related disputes using a three-dimensional framework: the social dimension (divergent state interests, approaches, and levels of commonality among jurisdictions); the material dimension (subject matter complexities involving data, technology, and parties’ perceptions regarding dispute classification, risk tolerance, and market attitudes); and the temporal dimension (how technology and rule development evolve over time, creating legal vacuums and new challenges). The paper finds that dispute complexity stems from factors including regulatory inconsistencies across jurisdictions, technological uncertainties, varying privacy standards, interoperability challenges, and geoeconomic considerations. It argues that understanding these multifaceted dimensions is essential for developing effective dispute settlement mechanisms and governance frameworks as digitalization accelerates, particularly as CBDC networks expand and interconnect globally. [Source: Emory Law]

I’m also continuing my efforts to update my CBDC and CBDCTracker.org databases, so here’s some more backfilling:

Digital Turkish Lira Second Phase Progress Report (CBRT)

[November 24, 2025] The Central Bank of the Republic of Türkiye (CBRT) published a progress report on the 2nd phase of its Digital Turkish Lira project, which will focus on developing programmable payments and offline payment capabilities while maintaining core principles of privacy, interoperability, and financial inclusion. The digital lira will operate through a two-tier system where the central bank issues the currency and financial intermediaries provide user access without the central bank storing user identity data. Key developments include payment templates and packages that enable automated, condition-based transactions integrated with digital identity verification, and offline payment functionality using smart cards and NFC technology to work without internet connectivity. The system is being designed for interoperability with digital assets, cross-border payment platforms, and existing financial infrastructure, with the goal of reaching a minimum viable product stage by the end of this phase before any potential circulation decision in a third phase. Similar to the first phase, pilot tests will also be conducted in the second phase. [Source: CBRT]

Central Bank of Iraq on Banking reform, Digital Dinar, Dollar Transactions… (Iraq Business News)

[December 2, 2025] The Central Bank of Iraq (CBI) is reportedly developing a digital dinar project, although according to Governor Ali Mohsen Al-Alaqit, it requires significant time and infrastructure before launch. [Source: Iraq Business News]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20251202)

December 2, 2025December 2, 2025 ~ kiffmeister

Operation Choke Point 2.0: Biden’s Debanking of Digital Assets (U.S. HCOFS)

The U.S. House Committee on Financial Services published an investigative report on “Operation Choke Point 2.0″—a coordinated effort by Biden Administration regulators to deny banking services to digital asset businesses and individuals. Through over 20 letters, thousands of documents, and two hearings, the Committee found that federal agencies (the Federal Reserve, FDIC, OCC, and SEC) used informal guidance, “pause” letters, non-objection requirements, and enforcement actions to pressure banks into cutting off crypto firms, rather than establishing clear regulations. This approach resulted in at least 30 entities being debanked, stifled American innovation, and drove businesses overseas. [Source: U.S. HCOFS]

Rwanda: Digital Currency POC Set for Next Year (NBR)

The National Bank of Rwanda (NBR) is planning to continue its e-FRW central bank digital currency (CBDC) proof-of-concept work in 2026. It will test technical feasibility, evaluate payment system integration, and develop recommendations for the legal framework prior to the overall technical design phase. These tests are being conducted in partnership with selected financial service providers, and the results will determine NBR’s next steps in the CBDC project. In all phases, consultation with the private sector and policy makers has been, and will be, emphasized. [Source: NBR]

Project Meridian Securities (BOE)

The Bank of England (BOE) published a summary of the findings of the Project Meridian Securities experiment that explored how synchronization can bridge traditional real-time gross settlement (RTGS) systems with tokenized securities platforms using distributed ledger technology (DLT). The project successfully demonstrated that synchronization enables atomic settlement in central bank money for tokenized securities transactions, allowing programmable features like automated repos and cross-platform liquidity management without requiring full infrastructure replacement. Key findings show that smart contracts can automate settlement workflows while maintaining the trust and safety of central bank money, supporting improved liquidity management and interoperability across diverse platforms. The experiments revealed that synchronization can extend programmability to traditional infrastructures cost-effectively, though questions remain about optimal architecture, scalability, and whether independent synchronization operators are needed in multi-platform environments. [Source: BOE]

How New Regulations Could Potentially Impact the Future of Stablecoins (VISA)

The VISA Economic Empowerment Institute published a report by Zeke Copic on how new stablecoin regulations across the US, EU, UAE, and Hong Kong are shaping the industry’s future. While all jurisdictions require 1:1 backing with high-quality liquid assets and prohibit interest payments to holders, the specific requirements vary—with the US GENIUS Act being more flexible than Europe’s MiCA regulation, which mandates 30-60% of reserves in bank deposits. Stablecoin issuers like Circle currently generate 95-99% of revenue from interest on reserve assets (primarily Treasury bills and reverse repos), making them highly vulnerable to interest rate fluctuations and counterparty risks, as demonstrated during the Silicon Valley Bank collapse. Although declining interest rates may reduce reserve income, projected growth in stablecoin supply (potentially reaching $1.6-3.7 trillion by 2030) could offset this impact, though issuers may need to develop alternative fee-based revenue streams to maintain viable business models under the new regulatory frameworks. [Source: VISA]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20251114)

November 14, 2025November 14, 2025 ~ kiffmeister

Successful Live Trial of Settlement of Interbank Overnight Lending Using Wholesale CBDC (MAS)

The Monetary Authority of Singapore (MAS) successfully completed a live trial for settlement of interbank overnight lending transactions using wholesale central bank digital currency (CBDC) on the Singapore Dollar Test Network (SGD Testnet). The trial involved three commercial banks, and featured the first live issuance of Singapore dollar wholesale CBDC, with transactions recorded in the banks’ official books and regulatory filings. The SGD Testnet offers functionalities including a common settlement asset, programmability for real-time conditional payments, and multi-asset atomic settlement, helping to reduce settlement risks and market fragmentation. MAS plans to build on this pilot by conducting a future trial for the issuance and settlement of tokenized MAS Bills via CBDC, with further details to be provided in 2026. [Source: MAS]

Cambodia and Singapore Launch Phase One of Their QR Payment Linkage (Fintech News)

Cambodia and Singapore have launched the first phase of a cross-border QR code payment linkage, enabling Cambodian travelers to use their Khmer Riel accounts to make fast, secure real-time payments in Singapore. Leveraging the Bakong app and participating mobile banking tools, users can scan SGQR merchant QR codes for instant transactions, eliminating the need for cash exchanges or physical cards. The initiative, unveiled at the Singapore Fintech Festival and supported by both public and private partners, aims to facilitate convenience for tourists, boost local currency usage in cross-border payments, and advance regional financial cooperation and digital innovation. This project aligns with goals to enhance trade, tourism, financial inclusion, and economic integration between the two nations. [Source: Bank of Cambodia]

MAS and Deutsche Bundesbank sign MoU on Tokenization and Cross-Border Settlement (MAS)

The Monetary Authority of Singapore (MAS) and the Deutsche Bundesbank signed a Memorandum of Understanding to collaborate on cross-border digital asset settlement. This partnership aims to develop innovative settlement solutions to lower costs and speed up processing for cross-border transactions between Singapore and Germany. It also seeks to establish common standards for payments, foreign exchange, and securities involving tokenized assets to improve interoperability across digital asset platforms. Building on MAS’s Project Guardian, the agreement is expected to deepen financial connectivity, foster efficiency, and lay the groundwork for future digital financial infrastructure between both economies. [Source: MAS]

Project Guardian Fixed Income Workstream Update (ICMA)

The International Capital Market Association (ICMA) published two key technical deliverables to the Monetary Authority of Singapore (MAS) Project Guardian Fixed Income Framework workstream. One was a guide for delivery versus payment (DvP) settlement of distributed ledger technology (DLT) based debt securities, comparing wholesale central bank digital currencies (CBDCs), tokenized bank deposits, and stablecoins. Each presents distinct opportunities and risks regarding counterparty exposure, liquidity, and operational considerations. Multiple settlement forms will coexist and require interoperability. Key challenges include legal clarity, custody arrangements, connectivity between on-chain and off-chain systems, and achieving settlement finality across different networks. The second deliverable was on lessons learned from custody arrangements for DLT-based debt securities, revealing common challenges. Key issues include determining whether tokenized securities require novel custody models or fit within traditional central securities depositories (CSDs), establishing legal clarity for investor eligibility, safeguarding private cryptographic keys, and integrating DLT platforms with existing systems. New contractual frameworks addressing roles, liabilities, and cross-border complexities are essential for scaling custody arrangements. [Source: ICMA]

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!]

Kiffmeister’s #Fintech Daily Digest (20251113)

November 13, 2025November 13, 2025 ~ kiffmeister

HKMA Announces New Phase of Project Ensemble (HKMA)

The Hong Kong Monetary Authority (HKMA) has launched EnsembleTX, marking the new phase of Project Ensemble to enable real-value transactions in tokenized deposits and digital assets within a controlled pilot environment. Building on successful sandbox experiments since August 2024, this phase allows industry participants to settle digital asset transactions using tokenized deposits, initially focusing on transactions such as money market funds and real-time liquidity management. The project, running throughout 2026, will initially use the HKD RTGS system for interbank settlement and aims to facilitate 24/7 settlement in tokenized central bank money (CeBM), further developing Hong Kong’s tokenization ecosystem. HKMA and the Securities and Futures Commission will continue collaborating to advance practical applications of tokenization. [Source: HKMA]

BOE, MAS and BOT to Explore Cross-Border Synchronized FX Settlement (BOE)

The Bank of England (BOE), Monetary Authority of Singapore (MAS), and Bank of Thailand (BOT) announced a collaborative project to examine the technical and policy aspects of synchronized settlement for foreign exchange (FX) transactions across borders. Building on insights from Project Meridian FX, the initiative will test interoperability and complex, multilateral use cases by leveraging simulated Real Time Gross Settlement (RTGS) systems and distributed ledger technology (DLT) environments. The goal is to enable atomic, real-time FX transactions that are fast, secure, and interoperable, potentially supporting payment-versus-payment FX settlement across various infrastructures and regulatory frameworks. [Source: BOE]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20251111)

November 11, 2025November 11, 2025 ~ kiffmeister

JPMorgan and DBS Bank Team Up on Cross-Border Tokenized Deposit Framework (CoinDesk)

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, Mastercard Reach $38 billion Swipe Fee Settlement, Draw Opposition (Reuters)

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]

Tokenization of Financial Assets (IOSCO)

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]

Fast Payments in Latin America and the Caribbean (World Bank)

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:

Kiffmeister’s #Fintech Daily Digest (20251104)

November 4, 2025November 4, 2025 ~ kiffmeister

I’ve updated my tabulation of the 110 central banks that have recently conducted launched, piloted, experimented with and/or researched retail central bank digital currency (#CBDC). This total is unchanged since the end-August update. It doesn’t include the two that started issuing retail CBDC and then shut the platforms down (Ecuador and Finland). Keep in mind that I don’t count all of the individual national central banks that are part of currency unions (e.g., the European or Eastern Caribbean Currency Unions)

RCBDC 202510 Tabulation Download

UBS, Chainlink Execute First Onchain Tokenized Fund Redemption (CoinDesk)

UBS completed the first on-chain redemption of a tokenized fund using Chainlink’s Digital Transfer Agent (DTA). The transaction involved the UBS USD Money Market Investment Fund Token (uMINT) on Ethereum, with DigiFT serving as the on-chain distributor. Through automation and integration of digital and traditional systems, UBS aims to streamline major processes such as order-taking, execution, and settlement, reducing operational complexity and accelerating processing times. This initiative, part of UBS Tokenize, demonstrates how smart contract technology and technical standards can enhance fund operations and expand possibilities for financial product composability, while also illustrating efforts to connect legacy banking systems to blockchain rails using technologies like Chainlink and Swift. [Source: UBS]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20251029)

October 29, 2025 ~ kiffmeister

HKMA Completes Second Phase of e-HKD Pilot Programme (HKMA)

The Hong Kong Monetary Authority (HKMA) has completed the second and last phase of its e-HKD central bank digital currency (CBDC) pilot program. It evaluated the commercial viability and scalability of an e-HKD in various retail scenarios and compared it with tokenized deposits, structured around three themes: (i) settlement of tokenised assets, (ii) programmability, and (iii) offline payments. The results showed that an e-HKD can deliver benefits such as cost-efficient, programmable, and resilient transactions. One of the key takeaways was that, for retail end users, including merchants, consumers and individual investors, the difference between an e-HKD and tokenized deposits is not immediately clear, particularly in the context of routine payment transactions. Hence, the HKMA concluded that the immediate priority for the e-HKD lies in wholesale payments, and going forward it will prioritize the development of the tokenization ecosystem and cross-border payments. [Source: HKMA]

eCurrency to Pilot Central Bank Digital Currency Solution in Madagascar (eCurrency)

eCurrency Mint is set to begin an eAriary CBDC pilot in Madagascar. The project aims to introduce a digital version of the Ariary currency, leveraging eCurrency’s DSC3 technology to enable secure and efficient transactions. The solution is designed to integrate seamlessly into Madagascar’s existing financial ecosystem, and will be piloted in partnership with PayLogic SA to align with the “specific requirements of the Banky Foiben’i Madagasikara”. However, it is unclear to what extent the central bank itself is involved. [Source: PR Newswire]

Upcoming Speaking Engagements:

Kiffmeister’s #Fintech Daily Digest (20251024)

October 24, 2025October 24, 2025 ~ kiffmeister

Design Note – Alias Service (BOE)

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]

Bank of England Launches Synchronization Lab (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 Launch Tokenized Deposit Platform for U.S. Banks (Custodia)

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]