DFC

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Sweden’s central bank calls for new bank regulations to protect access to cash
Sweden’s central bank calls for new bank regulations to protect access to cash
Sveriges Riksbank has called for regulations to ensure that Swedish companies and public authorities, who are legally obliged to accept cash, have access to functioning services for daily takings and petty cash. With banks having largely stopped providing cash services to businesses, only cash-in-transit company Loomis AB is offering these services and almost exclusively by the and entirely on a commercial basis. Banks have chosen to fulfil their obligations by providing deposit machines with limits that are too low for many businesses, and have limited access to petty cash by closing down manual services. The Riksbank also underscored that access to cash is necessary to strengthen civil preparedness regarding payments.
#Fintech#Cash#CBDC#Sweden#DFC
·riksbank.se·
Sweden’s central bank calls for new bank regulations to protect access to cash
Design options for interoperability and funds locking across digital pounds and central bank money
Design options for interoperability and funds locking across digital pounds and central bank money
arXiv published a paper by Barclays staff that analyzes the design options for supporting "functional consistency" across digital pounds and commercial bank money. It focuses on three key capabilities: communication between digital pound ecosystem participants, funds locking, and interoperability across digital pounds and commercial bank money. It explores them via three payments use cases: person-to-person push payment, merchant-initiated request to pay, and lock funds and pay on physical delivery. It then presents and evaluates the suitability of design options to provide the specific capabilities for each use case and draw initial insights. The paper concludes that a financial market infrastructure (FMI) providing specific capabilities could simplify the experience of ecosystem participants, simplify the operating platforms for both the Bank of England and digital pound payment interface providers (PIPs), and facilitate the creation of innovative services.
#Fintech#CBDC#Interoperability#UnitedKingdom#DFC
·arxiv.org·
Design options for interoperability and funds locking across digital pounds and central bank money
HybCBDC: A Design for CBDC Systems Enabling Digital Cash (IEEE)
HybCBDC: A Design for CBDC Systems Enabling Digital Cash (IEEE)
The Institute of Electrical and Electronics Engineers (IEEE) published a paper that presents HybCBDC, a central bank digital currency (CBDC) system design that tackles the tension between offering payments with cash-like confidentiality while allowing for enforcement of financial integrity regulations. HybCBDC offers cash-like confidential payments and means to enforce regulations. HybCBDC builds on a hybrid access model for using monetary items of a CBDC and combines an account-based and an unspent transaction output (UTXO)-based subsystem to record payments. Each subsystem is operated based on different but interoperable DLT subsystems.
#Fintech#CBDC#Privacy#FinancialIntegrity#DFC
·ieeexplore.ieee.org·
HybCBDC: A Design for CBDC Systems Enabling Digital Cash (IEEE)
Analysis of CBDC Ecosystem Models
Analysis of CBDC Ecosystem Models
The Bank of Canada (BOC) published a paper presents a framework for analyzing different economic models of CBDC ecosystems. For an intermediated CBDC to be successful, central banks will need to develop sustainable economic models where intermediaries and end users derive value and central banks achieve their policy goals. The paper analyzes the trade-offs of three of the eight potential CBDC ecosystem models, each with different levels of central bank involvement in activities of the ecosystem and the usage of different policy levers. The policy levers considered in the framework are control over intermediary access to the CBDC network, prices and quality standards. The analysis suggests that a central bank provision of network infrastructure enables direct control over intermediary access requirements, prices and quality standards upstream. Providing a CBDC wallet increases development costs but allows the central bank to set quality standards downstream and to promote competition. Delegating the network service to a regulated entity reduces costs for the central bank but may limit its strategic autonomy to control upstream pricing and intermediary access.
#Fintech#CBDC#Canada#DFC
·bankofcanada.ca·
Analysis of CBDC Ecosystem Models
Eurosystem exploratory work on settlement in central bank money using new technologies
Eurosystem exploratory work on settlement in central bank money using new technologies
In collaboration with the Italian Banking Association Innovation Lab (ABI Lab) and 8 of its banking partners, the Banque de France (BdF) settled, in its DL3S platform and in a tokenized representation of central bank money (CeBM), several automated wholesale payments instructed by ABI Lab’s Leonidas distributed ledger technology (DLT) platform. Leonidas is an emanation of the highly successful Spunta project launched by ABI Lab in 2020, which now manages 200 million transactions yearly. Leonidas aims at calculating and settling liquid balances between participating banks, and experimenting settlement in central bank money. A similar experiment has been completed with JP Morgan S.E. using its ONYX DLT platform.
#Fintech#CBDC#wCBDC#Eurozone#France#Italy#Interoperability#JPMorgan#ONYX#DFC
·banque-france.fr·
Eurosystem exploratory work on settlement in central bank money using new technologies
Russian Central Bank Targets July 2025 for Widespread Digital Ruble Use
Russian Central Bank Targets July 2025 for Widespread Digital Ruble Use
The Bank of Russia wants the country's largest banks to support a digital ruble for retail and commercial use by July 2025, after which a full launch will take place. Customers will have to be able to "open and top up digital ruble accounts, make transfers, and accept digital rubles in their infrastructure”. The Bank has sent its proposals to amend the relevant laws to the Russian Ministry of Finance. Smaller banks will be given until July 1, 2026 to follow suit, While other credit institutions have to make sure they comply with the requirement by July 1, 2027. https://cbr.ru/eng/press/event/?id=20992
#Fintech#CBDC#Russia#DFC
·coindesk.com·
Russian Central Bank Targets July 2025 for Widespread Digital Ruble Use
Kazakhstan's digital tenge project enters new phase
Kazakhstan's digital tenge project enters new phase
The National Bank of Kazakhstan (NBK) has entered a new phase of its digital tenge project by introducing the concept of programmable money for government spending. The central bank has been actively engaging with the Ministry of Finance, including the Treasury and Tax Authority, to integrate their systems with the digital tenge platform. This will enable pilots for transparent public procurement, social digital vouchers, and other innovative scenarios. The NBK is finding that the combination of electronic procurement, digital treasury, digital tax administration, and smart payment rails can significantly increase the efficiency and transparency of public finances.
#Fintech#CBDC#Kazakhstan#DFC
·linkedin.com·
Kazakhstan's digital tenge project enters new phase
How can CBDCs be Designed to Drive Financial Inclusion?
How can CBDCs be Designed to Drive Financial Inclusion?
The United Nations Development Programme (UNDP) published an article by Heng Wang on potential central bank digital currency (CBDC) design features that drive financial inclusion. From users' perspectives, CBDCs need to (i) provide low-cost and safe electronic payment services and to provide benefits like accessibility for vulnerable people, (ii) align with values, experiences, and needs of potential users, and address concerns like privacy, safety, (iii) simplify access to CBDCs (especially for vulnerable groups), easy access to CBDC wallets, user-friendly interfaces, clear terms and conditions, (iv) be tested comprehensively through pilots and sandboxes to refine their design and ensure safety, and (v) the benefits and costs should be visible and understood by users.
#Fintech#CBDC#FinancialInclusion#UnitedNations#DFC
·undp.org·
How can CBDCs be Designed to Drive Financial Inclusion?
Lessons for Canada’s CBDC from the Digital Euro and Digital Pound
Lessons for Canada’s CBDC from the Digital Euro and Digital Pound
The Centre for International Governance (CIGI) published Ori Freiman's paper that explores how Canada can craft a responsible and user-centric approach to its digital loonie project. It emphasizes meaningful public engagement in both technical design and regulatory processes -- drawing from the U.K. and European Union (EU) consultative approaches. It also highlights the importance of responsible personal data handling and clear regulatory language, learning from EU expectations and UK legislative concerns. It concludes with recommendations that span across five key areas, critical to the successful integration of the digital loonie within the fabric of society; the developmental approach, engagement strategy, regulation and consumer protection, regulatory novelty and further research.
#Fintech#CBDC#Canada#DFC
·cigionline.org·
Lessons for Canada’s CBDC from the Digital Euro and Digital Pound
Tokenization: Another Giant Leap for Securities?
Tokenization: Another Giant Leap for Securities?
The U.S. Federal Reserve Bank of New York (NY Fed) published an article that explains what tokenization is and how it works, and looks at how past innovation in financial markets might offer lessons for the future. Multiple successful experiments show efficiencies in a completely tokenized world—where money and securities are all tokenized and settlement can be automated and synchronized with smart contracts. Change takes time, and there may be a period of years where tokenized money would need to interact with traditional securities, or vice versa. As an example, the article points to the Swiss National Bank (SNB) Project Helvetia which initially tried to link the existing payment system to a tokenized securities system, but found that without tokenized cash operational burdens were added, not reduced. Hence, when Helvetia went live, it did so with wholesale CBDC.
#Fintech#CBDC#wCBDC#Tokenization#Settlement#DFC
·tellerwindow.newyorkfed.org·
Tokenization: Another Giant Leap for Securities?
BCB announces projects selected for the second phase of Drex testing
BCB announces projects selected for the second phase of Drex testing
Banco Central do Brasil (BCB) announced the 13 themes that will be trialed during the second phase of the Drex wholesale central bank digital currency (CBDC) pilots. The first phase involved testing processes such as issuing, transferring and settling digital treasury bonds with tokenized commercial bank deposits with wholesale CBDC utilized for interbank settlements. During the second phase, various financial services will be developed via smart contracts on the Drex platform created by 16 consortia or companies. The platform is a permissioned Ethereum network using Hyperledger Besu
#Fintech#CBDC#wCBDC#DepositTokens#Brazil#DFC
·bcb.gov.br·
BCB announces projects selected for the second phase of Drex testing
ECB reviews progress on digital euro rulebook
ECB reviews progress on digital euro rulebook
The European Central Bank (ECB) published its third report outlining the progress of the digital euro scheme Rulebook Development Group in developing a draft digital euro rulebook, consisting of a single set of rules, practices and standards for the harmonization of digital euro payments across the euro area.
#Fintech#CBDC#Eurozone#ECB#DFC
·ecb.europa.eu·
ECB reviews progress on digital euro rulebook
Citi survey finds fewer institutions want CBDC for digital asset settlement
Citi survey finds fewer institutions want CBDC for digital asset settlement
Of almost 500 institutions surveyed by Citi, only 15% expressed a need CBDC for digital asset settlement versus 52% of respondents to a similar survey in 2023. Instead, there’s a greater emphasis on alternative digital payment methods including nonbank stablecoins, tokenized deposits and tokenized money market funds. https://www.citibank.com/icg/docs/Citi_Securities_Services_Evolution_2024.pdf
#Fintech#CBDC#wCBDC#Tokenization#Settlement#DepositTokens#DFC
·ledgerinsights.com·
Citi survey finds fewer institutions want CBDC for digital asset settlement
Retail digital Aruba florin for inclusive resilience
Retail digital Aruba florin for inclusive resilience
The Central Bank van Aruba (CBA) published a paper that reviews the best implementation options for a retail digital florin. It concludes that an inclusively-resilient retail digital florin must at least exhibit a three-tiered know-your-customer (KYC) approach (to balance privacy and KYC efforts), have offline features, one-to-one conversion between commercial bank deposits and CBDC, be unremunerated, and based on permissioned distributed ledger technology (DLT). Cross-border payments have been tabled for future consideration. This paper represents the first of a five-step five-year evaluation and implementation process. The paper also revealed that in 2019, the CBA conducted a feasibility study on a local wholesale CBDC, but concluded that its risks may fall outside the CBA’s risk appetite. The 2019 paper does not seem to be available online.
#Fintech#CBDC#Aruba#DFC
·cbaruba.org·
Retail digital Aruba florin for inclusive resilience
Using BoE Omnibus Accounts to facilitate wholesale DLT-based settlement
Using BoE Omnibus Accounts to facilitate wholesale DLT-based settlement
The Bank of England (BoE) introduction of Omnibus Accounts in 2021 enabled banks to pool their money held at the Bank of England. In turn this money can be used to achieve distributed ledger technology (DLT) based settlement fully funded by central bank money but taking place on a privately operated platform. The full funding of DLT-based transactions in central bank money provides participants reduced credit risk when holding funds and making payments via a regulated financial market infrastructure (FMI). This allows the FMI to operate outside real-time gross settlement (RTGS) operating hours, as long as sufficient funds have been pre-positioned in the account before RTGS closes. In principle, FMIs using the Omnibus Account could enable efficiencies in interbank payments, including Payment versus Payment (PvP)/Delivery versus Payment (DvP) settlement and potentially faster and cheaper cross-border payments. https://www.bankofengland.co.uk/news/2021/april/boe-publishes-policy-for-omnibus-accounts-in-rtgs
#Fintech#CBDC#wCBDC#sCBDC#RTGS#UnitedKingdom#DFC
·bankofengland.co.uk·
Using BoE Omnibus Accounts to facilitate wholesale DLT-based settlement
Russia's largest bank to start offering customers CBDC in 2025
Russia's largest bank to start offering customers CBDC in 2025
Russia's Sberbank plans to start operations with the country's digital ruble for its customers in early 2025. Sberbank is among Russian banks expected to join the project in the second round of testing CBDC, along with about 20 other financial institutions. https://www.moscowtimes.ru/2024/09/03/intervyu-sberbank-rasschityvaet-nachat-operatsii-s-klientami-v-tsifrovykh-rublyakh-v-nachale-2025-goda-a141054
#Fintech#CBDC#Russia#DFC
·crypto.news·
Russia's largest bank to start offering customers CBDC in 2025
CBDCs, Payment Firms, and Geopolitics
CBDCs, Payment Firms, and Geopolitics
The U.S. National Bureau of Economic Research (NBER) published a paper that analyzes the effect of a major central bank digital currency (CBDC) – the digital euro – on the payment industry, finding "remarkably" heterogeneous effects. Stock prices of U.S. payment firms decrease, while stock prices of European payment firms increase in response to positive announcements on the digital euro. Bank stocks do not react. The results are consistent with the notion that the development of the digital euro is driven by a desire for strategic autonomy in payments, pointing to a novel geopolitical dimension of CBDCs.
#Fintech#CBDC#Eurozone#NBER#DFC
·nber.org·
CBDCs, Payment Firms, and Geopolitics
Bank of Russia expands CBDC pilot
Bank of Russia expands CBDC pilot
The Bank of Russia is expanding its central bank digital currency (CBDC) pilot programme. The new phase, which started on September 1, 2024, will involve up to 9,000 people and 1,200 companies, versus the 600 people and 22 firms that took part in the previous stage. The latest phase will enable dynamic QR code payments and business-to-business transfers. Digital ruble transactions will be available to the customers of the same 12 banks that have been participating in the pilot testing since its start in August 2023, and more banks will be added.
#Fintech#CBDC#Russia#DFC
·cbr.ru·
Bank of Russia expands CBDC pilot
Deposit Tokenization: Survey of Overseas Initiatives
Deposit Tokenization: Survey of Overseas Initiatives
The Bank of Japan (BOJ) published a survey of global deposit tokenization projects. With the emergence of stablecoins, these initiatives seem to seek an extension of functionality in payment and settlement systems by applying new technologies, such as distributed ledger technology (DLT), to bank deposits as a traditional means of payment. The main reason such initiatives prefer leveraging deposit money is said to be its affinity with the two-tier monetary system and possibly with existing laws or regulations. However, there remain some issues that require further clarification on how payments with tokenized deposits are categorized in the private law system, and how smart contracts provide implications for non-functional requirements and legal certainty.
#Fintech#Tokenization#DepositTokens#DFC
·boj.or.jp·
Deposit Tokenization: Survey of Overseas Initiatives
Central Bank Digital Currency Data Use and Privacy Protection
Central Bank Digital Currency Data Use and Privacy Protection
The IMF published a Fintech Note that offers a framework to help countries navigate, as well as tools to help them manage, the trade-offs between central bank digital currency (CBDC) data use and privacy protection. It addresses retail CBDC, as data access and privacy-preserving considerations in a wholesale environment are similar to those of the traditional real-time gross settlement (RTGS) systems. It emphasizes the role of institutional arrangements, data collection, access and storage policies, design choices, and technological solutions. At a given level of preference for privacy, central banks can facilitate better use of CBDC data through robust transparency and accountability arrangements, sound policies, and judicious adoption of privacy-by-design approaches including the use of privacy-enhancing technologies.
#Fintech#CBDC#Privacy#IMF#DFC
·imf.org·
Central Bank Digital Currency Data Use and Privacy Protection
KfW issues digital bond as part of ECB DLT settlement trials
KfW issues digital bond as part of ECB DLT settlement trials
German government-owned Bank aus Verantwortung (KfW) has issued €50 million of digital bearer bonds, settled on a delivery versus payment (DVP) basis using the Bundesbank's "trigger solution" in which a smart contract triggers a payment in central bank money by linking to the TARGET2 real-time gross settlement (RTGS) system. The pilot issuance was part of the European Central Bank's (ECB's) wholesale distributed ledger technology (DLT) settlement trials using central bank money. The bonds were issued on the Polygon blockchain. Redemption will take place on 28 November before the ECB's trials end. https://www.kfw.de/About-KfW/Newsroom/Latest-News/Pressemitteilungen-Details_820544.html
#Fintech#CBDC#wCBDC#Eurozone#ECB#Germany#DFC
·ledgerinsights.com·
KfW issues digital bond as part of ECB DLT settlement trials
What is the LVGA Token?
What is the LVGA Token?
LVGA are a local stablecoin. They can be purchased within the MyLugano app and collected through the cashback while shopping at local affiliated shops. Unlike other cryptocurrencies such as Bitcoin LVGA can be used only in Lugano and once obtained they cannot be exchanged or traded for other currencies. LVGA are not subject to fluctuation being "pegged" to the Swiss franc. Thus, they have no speculative intent but exists solely and exclusively as a form of incentive for local spending in Lugano.
#Fintech#CryptoAssets#Stablecoins#GovCoins#Switzerland#DFC
·my.lugano.ch·
What is the LVGA Token?
Cyber Resilience of the Central Bank Digital Currency Ecosystem
Cyber Resilience of the Central Bank Digital Currency Ecosystem
The IMF published a paper on retail central bank digital currency (CBDC) ecosystem cybersecurity considerations. It is based on experiences from live CBDCs and informed by experiments conducted by central banks and international institutions for domestic use. It also draws from standard-setting body cybersecurity and resilience frameworks. It introduces digital risks and their impact on an interconnected CBDC ecosystem. It then describes CBDC attributes and examines pros and cons of commonly considered design options, and suggests potential mitigations. It concludes by delving into best practices for developing a cyber-resilient CBDC ecosystem.
#Fintech#CBDC#IMF#CyberSecurity#DFC
·elibrary.imf.org·
Cyber Resilience of the Central Bank Digital Currency Ecosystem
Assessing the implications of a Dominican Republic retail CBDC
Assessing the implications of a Dominican Republic retail CBDC
The International Monetary Fund (IMF) published a technical assistance report that helped the Banco Central de la República Dominicana (BCRD) to assess a CBDC’s potential macro-financial, legal, and financial integrity implications, and shared lessons from other countries’ CBDC and digital money projects, technology considerations, practices for stakeholder engagement, and how CBDC can increase financial inclusion, among others. The mission advised the BCRD to continue the exploration of macro-financial implications of a CBDC, conduct the legal framework revisions should a positive decision of CBDC be taken, assess risks to financial integrity once a firmer design choice is made, and build up technology knowledge and capacity meanwhile.
#Fintech#CBDC#IMF#DominicanRepublic#DFC
·imf.org·
Assessing the implications of a Dominican Republic retail CBDC
Malawi central bank to launch a CBDC proof of concept
Malawi central bank to launch a CBDC proof of concept
The Reserve Bank of Malawi is looking to engage a consultant to further its central bank digital currency (CBDC) proof of concept work. The initiative aims at exploring the feasibility, benefits and challenges associated with the implementation of a CBDC in Malawi.
#Fintech#CBDC#Malawi#DFC
·rbm.mw·
Malawi central bank to launch a CBDC proof of concept
ECB hosting a digital euro design focus session
ECB hosting a digital euro design focus session
The European Central Bank (ECB) is hosting a virtual digital euro design focus session on September 9, 2024. The "digital euro design for the European payments market” is a technical forum aimed at payment service providers and professionals from the financial sector with an interest in the design of the digital euro and its impact on the European payments market. The entire focus session will be live streamed, recorded and published on the ECB’s website shortly after the event, together with the slides presented.
#Fintech#CBDC#Eurozone#ECB#DFC
·ecb.europa.eu·
ECB hosting a digital euro design focus session
Hong Kong launches Project Ensemble sandbox for wCBDC, tokenization
Hong Kong launches Project Ensemble sandbox for wCBDC, tokenization
The Hong Kong Monetary Authority (HKMA) launched the Project Ensemble Sandbox to support institutional experimentation with tokenization. Four main themes were chosen for the initial round of experimentation, fixed income and investment funds, liquidity management, green and sustainable finance, and trade and supply chain finance. Also, an experimental wholesale central bank digital currency (CBDC) will enable interbank settlement between the tokenized deposits of banks. The HKMA will also explore collaborating with the BIS Innovation Hub Hong Kong Centre across one or more themes. https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/08/20240828-3/
#Fintech#CBDC#wCBDC#Tokenization#HongKong#DFC
·ledgerinsights.com·
Hong Kong launches Project Ensemble sandbox for wCBDC, tokenization
Offline Payments: Implications for Reliability and Resiliency in Digital Payment Systems
Offline Payments: Implications for Reliability and Resiliency in Digital Payment Systems
The U.S. Federal Reserve Board (FRB) published an assessment of the offline digital payment payment services and analyzes their potential to mitigate internet outage risks and bolster digital payment resilience. It finds that many services branded as offline payment solutions are more accurately classified as hybrid solutions because they ultimately require internet access for clearing and settlement. Truly offline digital payment systems that exchange digital bearer instruments for instant, in-person settlement are still in early development stages. The note lays out a variety of risks associated with offline payment models, including risks related to double spending, security, user privacy, and merchant liability. It concludes that certain offline payment models are promising, but more research and wider uptake is needed for the technology to drive incremental gains in payment system resilience and reliability.
#Fintech#CBDC#Offline#FRB#Payments#DFC
·federalreserve.gov·
Offline Payments: Implications for Reliability and Resiliency in Digital Payment Systems
Japanese tokenized deposit solution DCJPY launches into production
Japanese tokenized deposit solution DCJPY launches into production
Japan's DeCurret DCP officially launched its DCJPY tokenized deposit solution. DCJPY consists of two zones, a Financial Zone where banks mint tokens and integrate with their core banking systems. Multiple Business Zones synchronize transactions with the Financial Zone. The first DCJPY use case involves server hosting company IIJ procuring renewable energy certificates (RECs), tokenizing them and selling them to its clients. Apart from using the tokenized RECs for its clients, IIJ is also considering the secondary distribution of the tokens. https://www.decurret-dcp.com/en/pressrelease/pr-20240828.html
#Fintech#Tokenization#DepositTokens#Japan#DFC
·ledgerinsights.com·
Japanese tokenized deposit solution DCJPY launches into production
Cash-back Fees
Cash-back Fees
The U.S. Consumer Financial Protection Bureau (CFPB) published a report on consumers’ use of "cash back" services. While people use various means of getting cash, one common method is to get “cash back” at a store when making a purchase with a debit or prepaid card. This option may be particularly important in banking deserts and in areas where banks and ATM operators charge significant fees. Retailers are essentially filling a void in access to cash, which has historically been supplied by banks and credit unions in an affordable way, and some retailers charge a fee for these transactions.
#Fintech#Cash#UnitedStates#DFC
·consumerfinance.gov·
Cash-back Fees