The U.S. Securities and Exchange Commission (SEC) published a notice that deems that “covered stablecoins” are considered “non-securities” and exempt from transaction reporting requirements. Covered stablecoins are those that don’t offer holders the right to receive any interest, profit, or other returns, don’t reflect any investment or other ownership interest in the stablecoin issuer or any other third party, don’t afford holders any governance rights with respect to the issuer or stablecoin, and/or don’t provide holders with any financial benefit or loss based on the issuer or any third party’s financial performance. These criteria are consistent with regulations stipulated in the Senate’s GENIUS stablecoin bill, and the House of Representatives’ Stable Act of 2025. [Read more at the SEC]
Euroclear has joined the Hong Kong Monetary Authority’s (HKMA) Project Ensemble, aimed at using wholesale central bank digital currency (CBDC) to settle interbank tokenized exposits and assets. As an Architecture Community member, Euroclear will contribute by developing a set of industry standards to support interoperability in Hong Kong’s tokenization ecosystem. [Read more at Euroclear]
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 Bank of Korea (BOK) will reportedly launch its wholesale central bank digital currency (CBDC) pilot next month. Participants will be able to convert their bank deposits into tokenized deposits and use them for payments at affiliated merchants. The purpose of the distributed ledger technology (DLT) based wholesale CBDC is to settle the tokenized deposit transactions across the seven participating banks. Currently, interbank transfers are settled via transfers across banks’ BOK reserve accounts. To recruit approximately 100,000 pilot participants for the experiment, the BOK reportedly plans to issue a public announcement by the end of this month. [Read more at BusinessKorea]
The U.K Chancellor of the Exchequer announced details of the launch of the procurement process for the Digital Gilt Instrument (DIGIT) issuance pilot. HM Treasury has published additional information, engagement questions and has issued a Preliminary Market Engagement notice through its contract finder service. The short-dated gilts will be issued outside the government’s conventional debt issuance program, and will not be issued by the Debt Management Office. Given the gilt will be hosted on a platform that’s part of the Digital Securities Sandbox, the platform will first need approval from the Bank of England and Financial Conduct Authority that are jointly operating the Sandbox. [Read more at the U.K. government website]
Upcoming Speaking Engagements:
The Crypto Assets Conference (Frankfurt, March 26) will delve into the advancements in digital assets, tokenization, crypto assets, web3, and more, through insightful talks, interactive debates, and presentations by industry experts, founders, investors, and representatives from public institutions. [Register here and get a 10% discount]
The Digital Euro Conference 2025 (Frankfurt, March 27) will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Register here]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
The Crypto Assets Conference (Frankfurt, March 26) will explore the latest innovations and emerging industry trends in DLT, blockchain, and crypto assets, through insightful talks, interactive debates, and presentations by industry thought leaders. [Register here]
The Digital Euro Conference 2025 (Frankfurt, March 27) will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [register here]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
Bangko Sentral ng Pilipinas and participating financial institutions (FIs) have completed proof-of-concept work on Project Agila. Agila allow FIs to transfer funds to each other even during off-business hours, including evenings, weekends, and holidays, using wholesale central bank digital currency (CBDC). The evaluation with FIs covered functional, performance, security, exploratory, end-to-end and programmability testing. [Read more at the BSP]
The European Central Bank (ECB) concluded its tests of the use of distributed ledger technology (DLT) for wholesale settlement in central bank money. Between May and November 2024, the Eurosystem processed over 200 transactions and a total value of €1.59 billion. In total, 64 participants comprising central banks, financial market participants and DLT operators completed over 40 trials and experiments. Trials included actual settlement in central bank money, while experiments were tests with mock settlement. In January 2025, participants involved in the exploratory work will be invited to discuss lessons learned from the trials and experiments. The outcome of the analysis will inform the Eurosystem’s decision on its next steps. [Read more at the ECB]
As part of the ECB wholesale DLT settlement trials using central bank money, HQLAᵡ was involved in an intraday repo transaction where Goldman Sachs borrowed cash from Clearstream in exchange for collateral held on the HQLAᵡ DLT platform. HQLAᵡ is a collateral mobility solution in which assets held by custodians are locked and digitized in the HQLAᵡ digital collateral registry, with the legal agreements enabling collateral to transfer instantly using DLT. In this case, the cash leg of the transaction used the Bundesbank’s Trigger solution. The trades were agreed via the Eurex Repo F7 trading system, and Deutsche Börse’s Clearstream D7 digital securities platform was used as the market system operator. [Read more at Ledger Insights]
The Bank for International Settlements (BIS) published a paper that analyzes how retail CBDC and fast payment systems (FPSs) compare with each other and why some jurisdictions have opted for a retail CBDC, while others have chosen to introduce an FPS or both. Interviews with central banks in 14 jurisdictions around the world show that some see a case for both to fulfil different policy goals and complement one another. The paper’s key conclusion is that the choice between a retail CBDC or an FPS, or both, is very contextual and will depend on the market features, ecosystem and degree of maturity and innovation of existing payment infrastructures in a country. [Read more at the BIS]
Banco de España published a paper that explores the financial stability nexus within a monetary ecosystem that has been expanded to include a CBDC. It highlights the importance of partially adapting the two-tier system of money by implementing certain limits, as envisaged in CBDC plans. The endogenous mitigation of the risks through improved bank competition often attributed to CBDCs is uncertain and may be insufficient from a systemic risk perspective. The introduction of exogenous mitigants, like CBDC holding limits calibrated on the basis of a robust methodology, seems instrumental to ensure the consistency of a monetary ecosystem that includes a CBDC. Hence, the paper addresses some fundamental methodological issues related to these limits, such as the rationale for alternative targets for the limits, the influence of disintermediation speed, the time horizons involved in the limitation and adaptation process, and the role of regulatory and market frictions. [Read more at Banco de España]
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Upcoming Speaking Engagements:
Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
On November 14, 2024, the U.K. Chancellor of the Exchequer announced that HM Treasury plans to launch a distributed ledger technology (DLT) based Digital Gilt Instrument (DIGIT) pilot. No details were provided, but according to an earlier Bloomberg story, it could launch within two years. Also on November 14, UK Finance, a trade association for the U.K. banking and financial services sector, published a paper that it submitted in April 2024 to HM Treasury and the Debt Management Office, with options for such a pilot. These was an “evolutionary” approach to be deployed in three phases over 18 months, and a “big bang” approach that could be deployed in 12 to 18 months. [Read more at Gov.UK]
The U.K. HM Treasury published its National Payments Vision, in which it committed to continue the design phase for a retail central bank digital currency (CBDC) in partnership with the Bank of England. It reconfirmed that no decision has been taken on whether to implement a digital pound, but any decision to proceed would be accompanied by the introduction of primary legislation, ensuring full Parliamentary scrutiny by both Houses of Parliament, before any launch. Legislation would be preceded by a further public consultation and would guarantee users’ privacy and control of their money. “Irrespective of the final decision, by partnering with the private sector on proofs of concept and experiments, the work will support private innovation in digital currency technologies [and] deepen the retail payments expertise of the UK public authorities. [Read more at HM Treasury]
A Norwegian government-sponsored task force concluded that there’s no rush for the central bank to launch an e-kroner. However, work should be started “on the necessary regulatory changes” for a possible introduction of a CBDC that may become relevant in future. “The committee doesn’t currently see a need to introduce digital central bank money for reasons of financial inclusion, privacy or emergency preparedness, but doesn’t rule out that a central bank digital currency may in the future be a relevant instrument for safeguarding these considerations.” [Read more on the Norwegian government website]
Sponsored Content:
Supercharge your CBDC research and deployment strategy with Chavanette’s Alpha Knowledge Platform (⍺LP)—the ultimate resource for deep insights into CBDCs and the ecosystem of CBDC technology providers and solutions. Get insider access to the top 20 CBDC platforms through the GALACTIC GRID, dissected by Chavanette’s expert framework. Lead the digital central banking revolution with the tools necessary to deploy Central Banking 4.0—stay informed, stay bold, stay transformative. Be the leader. Register for access here and get a 10% discount on the first year with the kiffmeister10 code.
Upcoming Speaking Engagements:
Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
The Swiss National Bank (SNB) published the results of its pilot test of a monetary policy operation on the SIX Digital Exchange (SDX) distributed ledger technology (DLT) platform. As part of Project Helvetia III, in June 2024 the SNB issued digital SNB Bills settled in wholesale central bank digital currency (CBDC) in a production environment. The Bills were redeemed sever day later. It showed that implementing monetary policy on a DLT-based infrastructure is feasible and effective. While the corresponding processes bring about some improvements, new challenges emerge. The SNB concluded that “the question of whether to conduct monetary policy operations on a DLT-based infrastructure is premature [and] ramping up such operations would also entail significant investment for the SNB, its counterparties as well as infrastructure providers”. [Read more at the SNB]
The Cambridge Centre for Alternative Finance (CCAF) published its 2nd Global Crypto-Asset Regulatory Landscape Study. The report describes and compares emerging practices in crypto-asset regulation, focusing on 19 representative jurisdictions and encompassing key dimensions of regulatory frameworks. The objective is to identify areas of convergence and divergence in the implementation of regulatory frameworks. In the conclusion this study indicates, where possible, early lessons for financial authorities, particularly in emerging market and developing economy (EMDE) jurisdictions. The report is published alongside a global online tracker of crypto-asset regulatory frameworks, within the CCAF’s Global Regulatory Innovation Dashboard (GRID). [Read more at the CCAF]
In September 2024, the Subhadra Yojana, a direct transfer initiative for women in the state of Odisha, became India’s first government program to allow beneficiaries to receive payouts in digital rupee central bank digital currency (CBDC). Approximately 12,000 beneficiaries received the first annual Rs 10,000 instalment and were notified of the deposit via text messages. [Read more on Wikipedia]
Sponsored Content:
Supercharge your CBDC research and deployment strategy with Chavanette’s Alpha Knowledge Platform (⍺LP)—the ultimate resource for deep insights into CBDCs and the ecosystem of CBDC technology providers and solutions. Get insider access to the top 20 CBDC platforms through the GALACTIC GRID, dissected by Chavanette’s expert framework. Lead the digital central banking revolution with the tools necessary to deploy Central Banking 4.0—stay informed, stay bold, stay transformative. Be the leader. Register for access here and get a 10% discount on the first year with the kiffmeister10 code.
Upcoming Speaking Engagements:
Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
Caisse des Dépôts et Consignations (CDC) issued a €100 million digital bond settled using the Banque de France’s DL3S distributed ledger technology (DLT) platform using its pilot wholesale central bank digital currency (CBDC). The transaction formed part of the European Central Bank’s wholesale distributed ledger technology (DLT) settlement trials. The Banque de France avoids using the term wholesale CBDC, instead referring to it as a tokenized representation of central bank money. For the CDC issuance, it required synchronizing the issuance of the digitally native note (DNN) on Euroclear’s D-FMI platform with the settlement on the central bank’s DL3S. [Read more at Ledger Insights]
The Association for Financial Markets in Europe (AFME) published a response to a call for submissions from the European Commission (EC) Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) on any issues and opportunities relating to the deployment of DLT based infrastructure and services in the European Union (EU) that may merit the EC’s attention. AFME’s overarching view is that a transformative potential of DLT is that can enable companies and individuals to access a shared, peer-validated database as a single-source-of-truth, without the need to centralize data and transaction processing with a single actor. This increases accessibility by participants, data security and immutability, and data transparency in the real economy. Innovation in finance plays a key role in this vision, which will only begin in earnest with the updating of capital markets infrastructure. [Download the response at the AFME]
JPMorgan (JPM) rebranded its blockchain platform, formerly Onyx, as Kinexys, and its JPM Coin System has been renamed “Kinexys Digital Payments”. The bank also said it plans to introduce on-chain foreign exchange capabilities to the platform as early as the first quarter of 2025, paving the way for the “automation of 24/7, near real-time multicurrency clearing and settlement.” The service will first be available for the U.S. dollar and euro with plans to expand to other currencies. [Read more at JPM]
Sponsored Content:
Supercharge your CBDC research and deployment strategy with Chavanette’s Alpha Knowledge Platform (⍺LP)—the ultimate resource for deep insights into CBDCs and the ecosystem of CBDC technology providers and solutions. Get insider access to the top 20 CBDC platforms through the GALACTIC GRID, dissected by Chavanette’s expert framework. Lead the digital central banking revolution with the tools necessary to deploy Central Banking 4.0—stay informed, stay bold, stay transformative. Be the leader. Register for access here and get a 10% discount on the first year with the kiffmeister10 code.
Upcoming Speaking Engagements:
Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
Intesa Sanpaolo issued €10 million in commercial paper (CP) using Clearstream’s D7 tokenization platform, using the Bank of Italy’s TIPS Hashlink solution for settlement. TIPS Hashlink is one of three payment options that are part of the European Central Bank’s (ECB’s) distributed ledger technology (DLT) based wholesale settlement trials. Rather than use the on-chain central bank money (i.e., central bank digital currency) being used in the other two trails, the Hashlink interoperability mechanism is used to settle the transaction using the ECB-run Trans-European Automated Real-time Gross settlement Express Transfer (TARGET) Instant Payment Settlement (TIPS) system. This is apparently only the second test of this platform, the other being a €25 million Cassa Depositi e Prestiti (CDP) digital bond issue in July 2024. [Read more at Ledger Insights]
ABN AMRO executed four repo pilot trades with DLT-based wholesale central bank digital currency (CBDC) utilizing tokenized commercial paper (CP) as collateral in late October 2024. This served to test one of three payment options (in this case the one being led by the Banque de France) that are part of the ECB’s DLT-based wholesale settlement trials. ABN AMRO issued €1.1 million of the tokenized CP that was used as collateral in the latest transaction, which involved four reverse repo transactions between ABN AMRO Bank, ABN AMRO Clearing, and Rabobank, cleared by Eurex Clearing. In a repo Repo (repurchase) transaction one party (e.g., Bank A) sells securities to another party (e.g., Bank B) and agrees to buy them back later at a slightly higher price. ABN AMRO Bank’s Treasury regularly uses repos for balance sheet management. [Read more at ABN AMRO]
Sponsored Content:
Supercharge your CBDC research and deployment strategy with Chavanette’s Alpha Knowledge Platform (⍺LP)—the ultimate resource for deep insights into CBDCs and the ecosystem of CBDC technology providers and solutions. Get insider access to the top 20 CBDC platforms through the GALACTIC GRID, dissected by Chavanette’s expert framework. Lead the digital central banking revolution with the tools necessary to deploy Central Banking 4.0—stay informed, stay bold, stay transformative. Be the leader. Register for access here and get a 10% discount on the first year with the kiffmeister10 code.
Upcoming Speaking Engagements:
Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
The OECD published a report that presents a mapping exercise to explore the different approaches to digital identity of G7 members. It draws out significant commonalities, as well as differences. In doing so, this document is intended to provide a resource for policymakers and stakeholders looking to understand the current state of digital identity policy and governance across the G7. This document may also serve as a foundation for discussions and planning around more interoperable digital identity systems. [Read more at the OECD]
The U.S. Securities and Exchange Commission (SEC) has submitted a Civil Appeal Pre-Argument Statement (“Form C”) appealing the August 7, 2024 final judgment of Judge Analisa Torres of the US District Court for the Southern District of New York, enjoining Ripple from further violations of Section 5 of the Securities Act of 1933 and imposing a $125 million civil penalty. The new SEC action will drag the whole legal process that started in 2020 out at least until July 2025. [Read more at Cointelegraph]
DTCC and Japan Securities Clearing Corporation (JSCC) conducted a proof-of-concept (POC) to design and develop a cross-industry and cross-product collateral ecosystem by making full use of the “DTCC Digital Launchpad” distributed ledger technology (DLT) based platform. The POC explored how central counterparties (CCPs) could use tokenization to optimize the collateral management process for clearing members and their buy-side firms. In particular, it examined how margin calls and their associated processes could be automated, made more efficient and transparent for all participants using digital assets and smart contracts – or rules that automatically execute on a distributed ledger when certain conditions are met. [Read more at DTCC]
Upcoming Speaking Engagements:
Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
The IMF published a paper that analyzes the financial stability implications of retail central bank digital currency (CBDC). It starts with a systematic analysis of balance sheet changes that arise from the new liability for the central bank and the banking system, and examine how they depend on preconditions, central bank choices, and banking system responses. Based on this, it discusses the range of implications for financial stability that may arise in steady state, in the context of adoption, and in crisis times. Threats to financial intermediation in steady state arise mainly in situations where the central bank balance sheet expands, and triggers adjustment mechanisms that lead to more costly or less stable funding of the banking system, while in crisis times run risk may increase. The analysis of policy choices to control these effects considers macroprudential policy, and an expansion of central bank lending to commercial banks, but finds that a main contribution needs to come from a design of the CBDC that encourages its use as a means of payment rather than a store of value. [Read more at the IMF]
The Central Securities Depository Prague (CDCP) has become the first institution to get official authorization to launch under the European Securities and Market Authority (ESMA) DLT Pilot Regime. The DLT Pilot Regime provides the legal framework for trading and settlement of transactions in crypto-assets that qualify as financial instruments under European regulation, while facilitating the set-up of new types of market infrastructures. Starting November 18, 2024, CDCP will be able to offer issuers of book-entry securities registration of issues in the newly created distributed ledger technology (DLT) based registry. [Read more at CDCP]
In an October 10, 2024 filing in the U.S. District Court for the Southern District of New York, Ripple disclosed plans to take a cross-appeal to the Court of Appeals for the Second Circuit, in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). On October 2 the SEC filed an appeal to an August 7 order for Ripple to pay a $125 million civil penalty for violating federal securities laws. The Court of Appeals will review both appeals to determine if any legal or procedural errors were made in the August 7 decision. [Read more at Cointelegraph]
Upcoming Speaking Engagements:
Digital Euro Conference 2025, Frankfurt, March 27, 2025. The DEC25 conference will explore the future of money with a focus on CBDCs, stablecoins, tokenized deposits, and the intersection of AI and digital ID. When you register, get 20% off the regular ticket price by using the Kiffmeister20 code! [Find out more and register here]
And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only)if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.
