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Universal Launches UAE’s First Central Bank-Registered USD Stablecoin (Universal Digital)
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]
#UAE#Stablecoins#DFC#Fintech#Regulation
·universal.ae·
Universal Launches UAE’s First Central Bank-Registered USD Stablecoin (Universal Digital)
Potential Implementation of Timor-Leste eCentavos (BCTL)
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]
#CBDC#Fintech#DFC#Timor-Leste
·bancocentral.tl·
Potential Implementation of Timor-Leste eCentavos (BCTL)
Talking ’Bout Next Generation (Bank of England)
Talking ’Bout Next Generation (Bank of England)
The Bank of England is leading a major overhaul of the UK's retail payments infrastructure through a new public-private partnership. Deputy Governor Sarah Breeden outlined three key goals: enabling direct account-to-account payments at retailers (bypassing card networks to reduce merchant costs averaging 0.6% per transaction), supporting seamless exchange between traditional bank deposits, tokenized deposits, and regulated stablecoins in a "multi-money" system, and improving cross-border payment speed and cost. The new Retail Payments Infrastructure Board, chaired by the Bank and including industry representatives, will consult on the design in Spring 2026, while a separate industry-led Delivery Company will build the infrastructure. To bridge the gap until the new system is ready, the Bank is encouraging interim private sector innovation through technology labs and a proportionate regulatory approach, aiming to modernize the UK's payment system to match advances seen in countries like India (UPI), Brazil (Pix), and Sweden (Swish).
#PaymentSystems#Payments#Fintech#UnitedKingdom#CBDC#DepositTokens#FastPayments#Tokenization#DLT#DFC
·bankofengland.co.uk·
Talking ’Bout Next Generation (Bank of England)
BSP eyes CBDC for settling tokenized government bonds (GMA News)
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 government tokenized 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]
#CBDC#Philippines#wCBDC#Settlement#Tokenization#DFC#Fintech
·gmanetwork.com·
BSP eyes CBDC for settling tokenized government bonds (GMA News)
Understanding Disputes Over Digitalization: CBDC Cross-Border Perspectives (Emory Law)
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]
#CBDC#CrossBorder#Fintech#DFC#Legal
·scholarlycommons.law.emory.edu·
Understanding Disputes Over Digitalization: CBDC Cross-Border Perspectives (Emory Law)
Crunchfish to Participate in BOE Digital Pound Lab (Crunchfish)
Crunchfish to Participate in BOE Digital Pound Lab (Crunchfish)
Crunchfish, a Swedish fintech company specializing in offline digital payment solutions, has been selected by the Bank of England (BOE) to participate in the Digital Pound Lab, an experimental initiative exploring potential use cases for a digital pound. The company will spend approximately three months developing proof-of-concept solutions focused on resilient digital payments and offline transaction functionality within the Lab's simulated environment, which includes APIs, wallets, and smart contract capabilities. Crunchfish will demonstrate how its offline-capable payment technology could contribute to future digital currency implementations, with participants potentially presenting their findings at a showcase event later in the year. [Source: Crunchfish]
#CBDC#Crunchfish#Sandboxes#UnitedKingdom#Fintech#Offline
·crunchfish.com·
Crunchfish to Participate in BOE Digital Pound Lab (Crunchfish)
Digital Turkish Lira Second Phase Progress Report (CBRT)
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]
#CBDC#Turkey#Fintech#DFC
·tcmb.gov.tr·
Digital Turkish Lira Second Phase Progress Report (CBRT)
Angolan Central Bank Exploring Central Bank Digital Currency (BNA)
Angolan Central Bank Exploring Central Bank Digital Currency (BNA)
[April 29, 2025] The Banco Nacional de Angola (BNA) revealed in its 2024 Annual Report that it concluded a preliminary study on central bank digital currency (CBDC), with the objective of evaluating the benefits and risks associated with different models, and analyzing potential implementation in the Angolan financial system. For 2025, the BNA will continue to monitor international CBDC projects, including exchanges with specialized institutions and central banks, with the aim of deepening knowledge and exploring possible paths for its eventual implementation. [Source: BNA] However, according to a Bloomberg Law article, the BNA has purportedly been exploring CBDC since at least 2022. [Source: Bloomberg Law]
#Fintech#CBDC#DFC#Angola
·bna.ao·
Angolan Central Bank Exploring Central Bank Digital Currency (BNA)
Liberia's Central Bank Exploring Central Bank Digital Currency (CBL)
Liberia's Central Bank Exploring Central Bank Digital Currency (CBL)

[May 5, 2025] The Central Bank of Liberia (CBL) revealed in its 2025-2029 Strategic Plan that it will explore the feasibility of introducing a central bank digital currency (CBDC) to enhance financial inclusion and modernize the financial system. CBL’s approach will include a feasibility study to assess the potential impact of a CBDC on Liberia’s monetary policy, financial stability, and payment systems, and engagement with key stakeholders, including financial institutions, government bodies, and the public, to gather insights and address concerns surrounding the introduction of a CBDC. Based on the findings of the research and studies, the CBL may consider launching a pilot CBDC program, initially targeting areas where traditional banking infrastructure is limited, to assess its viability in the Liberian context. This is in line with the medium-term goal of the Bank to digitalize the financial system and the economy at large and reduce the need for paper currency. [Source: CBL]

#Liberia#CBDC#DFC#Fintech
·cbl.org.lr·
Liberia's Central Bank Exploring Central Bank Digital Currency (CBL)
Central Bank of Uzbekistan Explores Digital Som Pilot Project (UZ Daily]
Central Bank of Uzbekistan Explores Digital Som Pilot Project (UZ Daily]
[September 11, 2025] The Central Bank of Uzbekistan (CBU) is reportedly exploring the launch of digital som central bank digital currency (CBDC) and commercial bank-issued stablecoin pilot projects. Both retail and wholesale CBDCs are being considered. The stablecoin pilot would be conducted in a regulatory sandbox run by the National Agency for Advanced Projects, the central bank emphasizing the importance of strict reserve backing to avoid effectively creating additional money supply. [Source: UZ Daily]
#CBDC#Uzbekistan#Fintech#DFC
·uzdaily.uz·
Central Bank of Uzbekistan Explores Digital Som Pilot Project (UZ Daily]
Central Bank of Uzbekistan Explores CBDC (Business & Finance Consulting)
Central Bank of Uzbekistan Explores CBDC (Business & Finance Consulting)

[November 15, 2021] Speaking at the 2nd international PLUS forum ("FinTech without Borders: Digital Asia), Shukhrat Fayzullaev, deputy director of the Payment Systems Department of the Central Bank of Uzbekistan (CBU), reportedly spoke about the central bank's central bank digital currency (CBDC) pre-project study. The purpose of this study was to: (1) analyze the prerequisites and economic efficiencies of introducing a CBDC, (2) examine the experience of other countries that have introduced or are introducing CBDCs and (3) assess the technical, human and financial resources that will be required to develop a CBDC. [Source: Business & Finance Consulting]

#CBDC#Fintech#DFC#Uzbekistan
·bulletins.bfconsulting.com·
Central Bank of Uzbekistan Explores CBDC (Business & Finance Consulting)
Digital Currencies Impact on Financial Stability and Financial Cycle (Bank of Albania)
Digital Currencies Impact on Financial Stability and Financial Cycle (Bank of Albania)
[February 11, 2022] The Bank of Albania published a paper that examines the impact on financial stability and financial cycles of crypto-assets, stablecoins, and central bank digital currencies (CBDC). Since then, it seems the Bank of Albania hasn't done any more work on the CBDC topic. [Source: Bank of Albania]
#Albania#Fintech#CBDC#DFC
·bankofalbania.org·
Digital Currencies Impact on Financial Stability and Financial Cycle (Bank of Albania)
Central Bank of the Barbados was Researching CBDC in 2020 (CBB)
Central Bank of the Barbados was Researching CBDC in 2020 (CBB)
[July 1, 2000] The Central Bank of the Barbados (CBB) hosted a seminar of central bank digital currency (CBDC) at which Governor Cleviston Hayne revealed that the CBB the CBB was researching CBDCs. In attendance were representatives from the Bahamas, Canada and the Eastern Caribbean Central Bank (ECCB). However, there has been no public follow-up on the central bank on the topic. [Source: CBB]
#CBDC#DFC#Fintech#Barbados#FastPayments
·centralbank.org.bb·
Central Bank of the Barbados was Researching CBDC in 2020 (CBB)
Bank of Mauritius Calls for Participation in Projects for its Innovation Hub (BoM)
Bank of Mauritius Calls for Participation in Projects for its Innovation Hub (BoM)
[August 23, 2024] The Bank of Mauritius announced the upcoming launch of its Innovation Hub, inviting interested participants to register for fintech solution development projects, including Suptech/Regtech and central bank digital currency (CBDC). This collaborative platform aims to foster cutting-edge innovations for the financial, banking, and regulatory sectors in Mauritius and the region by bringing together diverse stakeholders including entrepreneurs, industry experts, technology providers, regulators, academia, and students. The initiative is designed to accelerate the growth of the fintech ecosystem by leveraging the collective expertise and creativity of these key players. [Source: BoM]
#Fintech#Mauritius#Innovation#Sandboxes#CBDC#DFC#RegTech#SupTech
·bom.mu·
Bank of Mauritius Calls for Participation in Projects for its Innovation Hub (BoM)
Bank of Mauritius Progresses its CBDC POC Work (BoM)
Bank of Mauritius Progresses its CBDC POC Work (BoM)
[January 10, 2024] The Bank of Mauritius (BoM) has progressed on its research for the potential implementation of a digital rupee retail central bank digital currency. In this respect, the BoM has embarked on a proof-of-concept (POC) project starting with one commercial bank, There are other POCs in the pipeline, and other commercial banks and members of the public will be invited to join the pilot in due course. [Source: BoM]
#CBDC#Mauritius#Fintech#DFC
·bom.mu·
Bank of Mauritius Progresses its CBDC POC Work (BoM)
U.S. SEC Statement on Regulatory Treatment of Tokenized Securities (SEC)
U.S. SEC Statement on Regulatory Treatment of Tokenized Securities (SEC)
The U.S. Securities and Exchange Commission (SEC) clarified how federal securities laws apply to distributed ledger technology (DLT) based tokenized securities. It outlines two main categories: issuer-sponsored tokenized securities, where companies directly issue securities in tokenized format (with ownership records maintained on-chain, off-chain, or both), and third-party tokenized securities, where unaffiliated parties create tokenized versions through custodial arrangements (like tokenized security entitlements) or synthetic instruments (like linked securities or security-based swaps). The statement emphasizes that the format or recordkeeping method doesn't change how securities laws apply—tokenized securities face the same registration, reporting, and regulatory requirements as traditional securities. It also addresses specific considerations for security-based swaps, including restrictions on sales to non-eligible contract participants, and provides guidance on distinguishing between different types of tokenized instruments based on their economic reality rather than their labels. [Source: U.S. SEC]
#Tokenization#Regulation#CryptoAssets#DLT#Blockchain#UnitedStates#Fintech
·sec.gov·
U.S. SEC Statement on Regulatory Treatment of Tokenized Securities (SEC)
Digital Pound Lab: Phase 1 Update: Overview of First Round of Use Cases (BOE)
Digital Pound Lab: Phase 1 Update: Overview of First Round of Use Cases (BOE)
The Bank of England (BOE) Digital Pound Lab Phase 1 has completed, showcasing various demonstration use cases for U.K. retail payments infrastructure. The BOE developed several core capabilities including verifiable credentials for privacy-preserving identity verification, payment requests via QR codes, digital cheques, allowances for delegated spending, e-commerce integrations with delivery-versus-payment features, and blockchain interoperability. External participants (Fluxpay Limited; LINK, in collaboration with Consult Hyperion; NOBO Finance, in collaboration with Applied Blockchain; and Yotra Limited) tested additional use cases such as tiered wallets, tourist wallets, point-of-sale payments, and conditional business-to-business payments. Phase 2 is now underway with applications open until March 2026, aiming to explore more innovative payment services that don't currently exist, with a showcase event planned for July 2026. [Source: BOE]
#CBDC#Fintech#Sandboxes#UnitedKingdom#DFC
·bankofengland.co.uk·
Digital Pound Lab: Phase 1 Update: Overview of First Round of Use Cases (BOE)
ECB Calls for Experts to Explore Roles of Digital Euro Technical Service Providers (ECB)
ECB Calls for Experts to Explore Roles of Digital Euro Technical Service Providers (ECB)
The European Central Bank (ECB) is inviting technical service providers (TSPs) from the EU to participate in two expert-level workshops in early March 2026 focused on their role in supporting market readiness for a potential digital euro. Following the October 2025 announcement of the digital euro project's next phase, which includes a pilot starting in the second half of 2027 and potential first issuance in 2029, these half-day workshops will explore how TSPs can support payment service providers in both distribution and acquiring/acceptance activities. Interested TSPs must apply by February 10, 2026, and participants will be selected based on factors including their EU establishment, relevant experience, and technical capabilities, with the goal of creating balanced and representative workshop groups that will help inform the upcoming digital euro pilot activities. [Source: ECB]
#CBDC#ECB#Eurozone#Fintech#DFC
·ecb.europa.eu·
ECB Calls for Experts to Explore Roles of Digital Euro Technical Service Providers (ECB)
Tether Launches USA₮, the Federally Regulated, Dollar-Backed Stablecoin (Tether)
Tether Launches USA₮, the Federally Regulated, Dollar-Backed Stablecoin (Tether)
Tether launched USA₮, a U.S. dollar-backed stablecoin specifically designed for the U.S. market under the GENIUS Act framework. Issued by Anchorage Digital Bank (America's first federally regulated stablecoin issuer), USA₮ aims to provide institutions with a compliant digital dollar alternative while Tether's global USD₮ continues operating worldwide. The stablecoin features Cantor Fitzgerald as reserve custodian, bank-grade compliance infrastructure, and is initially available on major exchanges including Bybit, Crypto.com, Kraken, OKX, and Moonpay. This launch represents Tether's effort to strengthen U.S. dollar dominance in the digital economy while meeting American regulatory standards. The press release notes that Tether is the 17th-largest holder of U.S. Treasuries globally, ahead of sovereign holders including Germany, South Korea, and Australia. [Source: Tether]
#CryptoAssets#Fintech#Regulation#Stablecoins#Tether#UnitedStates#DFC#USDT#USAT
·tether.io·
Tether Launches USA₮, the Federally Regulated, Dollar-Backed Stablecoin (Tether)
ECB Paves Way for Acceptance of DLT-Based Assets as Eligible Eurosystem Collateral (ECB)
ECB Paves Way for Acceptance of DLT-Based Assets as Eligible Eurosystem Collateral (ECB)
The European Central Bank (ECB) announced that it will accept marketable assets issued using distributed ledger technology (DLT) as eligible collateral for Eurosystem credit operations starting March 30, 2026. These DLT-based assets must meet standard Eurosystem collateral eligibility criteria and be available for settlement in systems compliant with the Central Securities Depository Regulation (CSDR) and reachable via TARGET2-Securities (T2S). The Eurosystem is also launching a work plan to explore whether DLT-native assets not represented in traditional securities settlement systems could become eligible collateral in the future, taking a staggered approach that considers market developments and evolving regulations like the DLT Pilot Regime and Markets in Crypto-Assets Regulation (MiCAR). This initiative reflects the ECB's commitment to supporting innovation and technological progress in financial markets while maintaining safety and efficiency standards. [Source: ECB]
#DLT#ECB#Eurozone#Fintech#Tokenization#Collateral
·ecb.europa.eu·
ECB Paves Way for Acceptance of DLT-Based Assets as Eligible Eurosystem Collateral (ECB)
Stablecoins as Eurodollars 2.0 - Toward a Shadow Dollar Standard (SSRN)
Stablecoins as Eurodollars 2.0 - Toward a Shadow Dollar Standard (SSRN)
A paper posted on SSRN co-authored by the University of Toronto's Redouane Elkamhi argues that fiat-backed stablecoins function as "Eurodollars 2.0"—a new generation of offshore dollar liabilities that operate outside traditional banking regulation but remain economically linked to U.S. financial markets through reserve holdings and redemption mechanisms. Like the historical eurodollar system, stablecoins expand dollar liquidity creation and circulation beyond domestic borders, potentially strengthening dollar dominance by embedding the dollar as the default settlement asset in tokenized finance and accelerating digital dollarization in economies with weak currencies. However, this creates similar fragilities: stablecoins can experience rapid redemption runs that force reserve liquidations and transmit stress to money markets, while their global accessibility may erode monetary sovereignty in other jurisdictions. The authors propose the "Stablecoin Eurodollar System" framework to analyze how stress propagates through on-chain payment layers, off-chain reserve portfolios, and wholesale funding markets, emphasizing that the key policy challenge is not whether stablecoins exist but how convertibility into state money is governed when usage becomes systemic—particularly regarding reserve requirements, transparency standards, and whether public sector liquidity backstops should be extended to this new class of dollar instruments. [Source: SSRN]
#Stablecoins#CryptoAssets#DFC#Fintech#CrossBorder
·papers.ssrn.com·
Stablecoins as Eurodollars 2.0 - Toward a Shadow Dollar Standard (SSRN)
Stablecoins Are the Future But Banks Will Survive (Bloomberg)
Stablecoins Are the Future But Banks Will Survive (Bloomberg)
Bloomberg published an article that argues that stablecoins pose minimal threat to traditional banking. While banks worry that interest-bearing stablecoins will drain deposits and increase their funding costs, the article contends that historical evidence suggests stablecoins and bank deposits serve complementary rather than competing functions—similar to how bank notes and deposits coexisted during the National Banking Era. The authors note that 70-80% of bank deposits are insensitive to interest rates, with customers valuing bundled services like physical branches over higher yields, making mass migration to stablecoins unlikely. They conclude that stablecoins, backed strictly by cash and short-term Treasuries under the GENIUS Act, enhance financial stability rather than threaten it, while providing additional demand for government debt. [Source: Bloomberg]
#Stablecoins#FinancialStability#Fintech#DFC#CryptoAssets
·bloomberg.com·
Stablecoins Are the Future But Banks Will Survive (Bloomberg)
When Monetary Innovation Makes Money Obsolete (OMFIF)
When Monetary Innovation Makes Money Obsolete (OMFIF)
The Official Monetary and Financial Institutions Forum (OMFIF) published an article by Ousmène Mandeng that argues that tokenization and instant financial transactions could make traditional money holdings obsolete. The author explains that money's value stems from transaction frictions—the delays and costs of converting assets into purchasing power. As tokenization enables near-instantaneous, frictionless conversion between interest-bearing securities and money, people would no longer need to hold money balances in advance of payments. Instead, they would convert assets to money just-in-time for transactions and immediately back again, causing money holdings to shrink toward zero while money velocity becomes unbounded. This would fundamentally reshape banking, blurring the lines between banks and investment funds, as money transitions from being a store of value to merely a transient settlement instrument within transaction flows. [Source: OMFIF]
#OMFIF#Fintech#Tokenization#DFC#Stablecoins
·omfif.org·
When Monetary Innovation Makes Money Obsolete (OMFIF)
Stablecoins in Payments: What the Raw Transaction Numbers Miss (LinkedIn)
Stablecoins in Payments: What the Raw Transaction Numbers Miss (LinkedIn)
McKinsey Financial Services published analysis reveals that while stablecoins show headline transaction volumes of up to $35 trillion annually, the actual payment activity is only about $390 billion—representing roughly 0.02% of global payments. Most reported stablecoin transactions consist of trading, internal fund shuffling, and automated blockchain activity rather than real-world payments like supplier payments or remittances. The research, conducted with Artemis Analytics, found that B2B payments dominate actual stablecoin usage at $226 billion (60% of total), with Asia-originated activity leading at $245 billion. While stablecoin supply has grown from under $30 billion in 2020 to over $300 billion today, with projections reaching $2-4 trillion by 2030, the analysis emphasizes that financial institutions need to critically evaluate raw blockchain data and invest strategically in proven use cases rather than relying on inflated volume figures to assess stablecoins' current market position and potential. [Source: McKinsey]
#Stablecoins#CryptoAssets#Payments#DFC#Fintech
·linkedin.com·
Stablecoins in Payments: What the Raw Transaction Numbers Miss (LinkedIn)
CBDCs and Liquidity Risks: Evidence from the SandDollar’s Impact on Deposits and Loans in the Bahamas (MDPI)
CBDCs and Liquidity Risks: Evidence from the SandDollar’s Impact on Deposits and Loans in the Bahamas (MDPI)
MDPI published a study that evaluates the early impact of Central Bank Digital Currencies (CBDCs) on key financial indicators in The Bahamas, focusing on the introduction of the SandDollar—the world’s first fully implemented retail CBDC. Using the Synthetic Control Method (SCM), the analysis constructs counterfactual scenarios to assess the effects of CBDCs on three dependent variables: outstanding loans from commercial banks as a percentage of GDP, outstanding deposits as a percentage of GDP, and the number of deposit accounts per 1000 adults. Three separate SCM models were estimated for the period 2014–2024, incorporating a broad set of control variables reflecting financial infrastructure, economic performance, demographic characteristics, and digital readiness. The findings consistently show that the SandDollar’s implementation is associated with reductions in loan issuance, deposit levels, and deposit account ownership compared to their synthetic counterparts. These results support the hypothesis that direct CBDC models may amplify “deposit substitution” and increase liquidity risks by shifting financial activity away from commercial banks. Although the SCM provides a structured causal framework, the short post-treatment period and potential pandemic-related disruptions limit the scope of a long-term understanding. (Source: MDPI)
#CBDC#Bahamas#Fintech#DFC#FinancialStability
·mdpi.com·
CBDCs and Liquidity Risks: Evidence from the SandDollar’s Impact on Deposits and Loans in the Bahamas (MDPI)
India's Central Bank Proposes Linking BRICS' Digital Currencies (Reuters)
India's Central Bank Proposes Linking BRICS' Digital Currencies (Reuters)
The Reserve Bank of India (RBI) has reportedly recommended that the Indian government place a proposal to interconnect BRICS central bank digital currencies (CBDCs) on the agenda for the 2026 BRICS summit, which India will host. The proposal aims to facilitate cross-border payments for trade and tourism among BRICS members, potentially reducing reliance on dollar-based settlement systems, though the RBI maintains its efforts are not directed toward de-dollarization. Implementation would require resolution of several technical and political challenges: none of the BRICS states has fully deployed a retail CBDC beyond pilot programs, and any operational framework would necessitate consensus on interoperable technology standards, governance structures, and mechanisms to manage trade imbalances—a problem illustrated by earlier Russia-India local-currency trade arrangements where Russia accumulated large rupee balances with limited deployment options. The sources indicated that bilateral foreign exchange swap arrangements between central banks, with weekly or monthly settlements, are under consideration as one potential solution, though they cautioned that member states' reluctance to adopt technology platforms developed by other countries could impede progress. The initiative builds on the 2025 Rio declaration calling for payment system interoperability among BRICS members and would mark the first formal presentation of a CBDC linkage proposal at a BRICS leaders' meeting, though previous ambitious BRICS initiatives, including proposals for a common BRICS currency, have failed to materialize. [Source: Reuters]
#BRICS#CrossBorder#Payments#CBDC#India#DFC#Fintech
·reuters.com·
India's Central Bank Proposes Linking BRICS' Digital Currencies (Reuters)
ECB to Launch a Digital Euro Proof-of-Concept in 2027 (ECB)
ECB to Launch a Digital Euro Proof-of-Concept in 2027 (ECB)
The European Central Bank (ECB) published a presentation of its plans for a digital euro proof-of-concept (POC) program starting in H2 2027. The 12-month POC will involve a limited number of payment service providers (PSPs), merchants, and approximately 5,000-10,000 Eurosystem staff testing four use cases: person-to-person and person-to-business transactions using both online (alias/access number, e-commerce) and offline near-field communication (NFC) methods. The ECB will launch a call for expression of interest in March 2026 to select participating PSPs based on technical capabilities, market reach, and geographical representation. During the POC, transactions will use a digital means of payment that mimics the digital euro's characteristics but won't have legal tender status, operating under the Revised Payment Services Directive (PSD2) framework. [Source: ECB]
#CBDC#ECB#Eurozone#Fintech#DFC
·ecb.europa.eu·
ECB to Launch a Digital Euro Proof-of-Concept in 2027 (ECB)
Liquidity, Redemptions, and Fire Sales with a Systemic Stablecoin (IMF)
Liquidity, Redemptions, and Fire Sales with a Systemic Stablecoin (IMF)
The IMF published a paper that examines the financial stability risks posed by systemically important fiat-backed stablecoins and explores regulatory design choices to mitigate them. The authors argue that if stablecoins scale to systemic size, they could create dangerous feedback loops: redemptions would force bond sales, depressing market prices and yields, which would erode the issuer's solvency and trigger further redemptions—amplifying stress across financial markets. Through both conceptual analysis and a simulation model, the paper demonstrates that capital requirements (maintaining asset-liability ratios above 100%) and cash reserve requirements are the most effective stabilizers, substantially reducing the likelihood and severity of runs and fire sales. Redemption gates and lower-duration bond portfolios provide additional but more modest protection by moderating intensity rather than frequency of crises. However, in any case, the paper concludes that international regulatory coordination will be essential to prevent arbitrage. [Source: IMF]
#Stablecoins#FinancialStability#Contagion#Fintech#CryptoAssets#DFC#IMF#Regulation
·imf.org·
Liquidity, Redemptions, and Fire Sales with a Systemic Stablecoin (IMF)
Kazakhstan's Digital Tenge CBDC Officially Launched (NBRK)
Kazakhstan's Digital Tenge CBDC Officially Launched (NBRK)
The National Bank of the Republic of Kazakhstan (NBRK) announced that its digital tenge central bank digital currency (CBDC) has officially launched. The digital tenge is now legal tender in Kazakhstan, with the NBRK as the sole issuer, and interaction with it facilitated through financial market participants. [Source: NBRK]
#Kazakhstan#Fintech#CBDC#DFC
·nationalbank.kz·
Kazakhstan's Digital Tenge CBDC Officially Launched (NBRK)