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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)
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)
eCurrency to Facilitate the Development of CBDC in Malawi (eCurrency)
eCurrency to Facilitate the Development of CBDC in Malawi (eCurrency)
eCurrency Mint has been selected by the Reserve Bank of Malawi (RBM) to develop and experiment with central bank digital currency (CBDC) technology in the country. The project will utilize eCurrency's Digital Symmetric Core Currency Cryptography (DSC3) technology. DSC3 utilizes symmetric key cryptography along with layers of digital security to ensure that the resultant cryptographic objects, i.e. digital bearer instruments in the form of a cryptogram, are protected from counterfeiting. DSC3 supports a two-tier architecture and public-private partnership in which the central bank is the sole issuer of CBDC, while private sector payment networks enable its distribution, storage and transaction. [Source: eCurrency]
#CBDC#eCurrency#Malawi#Fintech#DFC
·prnewswire.com·
eCurrency to Facilitate the Development of CBDC in Malawi (eCurrency)
CBDCs versus Instant Payments (Central Banking)
CBDCs versus Instant Payments (Central Banking)
Central Banking published an article that discusses the global trend of central banks prioritizing instant payment systems over central bank digital currencies (CBDCs) for improving domestic and cross-border payments, with 93.6% of surveyed central banks favoring instant payments domestically and 95.5% for cross-border transactions. While both technologies offer similar benefits like real-time transactions, instant payment systems are generally less complex and costly to implement than CBDC infrastructure, though CBDCs use central bank money rather than commercial bank money. Countries like the Bahamas, Jamaica, and Nigeria launched CBDCs primarily to address financial inclusion and outdated payment systems, but have faced adoption challenges, while successful instant payment systems like Brazil's Pix and India's UPI have proven highly effective. Experts suggest that for most jurisdictions, instant payment systems combined with digital identity frameworks provide sufficient solutions for retail payments, though CBDCs may have specific use cases in wholesale payments, cross-border transactions, or as backups to existing systems. The main challenges for both approaches include scalability issues for cross-border linkages, disintermediation risks for banks, and the need for harmonized legal and regulatory frameworks across jurisdictions. [Source: Central Banking]
#CBDC#FastPayments#Payments#Fintech#DFC
·centralbanking.com·
CBDCs versus Instant Payments (Central Banking)
Ethiopia Unveils 5-Year National Digital Payment Strategy (NBE)
Ethiopia Unveils 5-Year National Digital Payment Strategy (NBE)

[December 9, 2025] The National Bank of Ethiopia (NBE) Ethiopia published a draft National Digital Payment Strategy 2026–30. The five-year framework outlines a roadmap to build a trusted, innovative, and integrated digital payments ecosystem. Part of the study involves studying stablecoins, cryptocurrencies, and central bank digital currency (CBDC), map their current use in Ethiopia, and identify concrete, locally viable use-cases for future policy and product development. Furthermore, white papers will be published and, if deemed necessary, required regulatory frameworks and pilot programs will be implemented. [Source: NBE]

#Ethiopia#Fintech#CBDC#DFC
·nbe.gov.et·
Ethiopia Unveils 5-Year National Digital Payment Strategy (NBE)
Lessons from Global CBDC Pioneers for Rwanda's Next Leap (RBA)
Lessons from Global CBDC Pioneers for Rwanda's Next Leap (RBA)
The Rwanda Bankers' Association (RBA) published an analysis of pioneering central bank digital currency (CBDC) implementations in the Bahamas (Sand Dollar), Jamaica (JAM-DEX), and Nigeria (eNaira). Using quantitative pre- and post-launch data analysis, the study finds that theoretical fears of bank disintermediation did not materialize—commercial bank deposits actually grew significantly in all three countries after CBDC introduction. The research reveals that CBDC rollouts coincided with broader macroeconomic shifts including tighter monetary policy and economic rebounds, while direct effects on inflation remained statistically insignificant. However, the primary challenge across all cases was achieving widespread public adoption rather than financial instability, with uptake remaining extremely low despite technical readiness. The paper concludes that for Rwanda, currently in its CBDC Proof-of-Concept phase, success will depend less on mitigating theoretical risks and more on delivering a compelling value proposition that addresses the country's specific challenges including limited smartphone ownership (34.3%), low internet access (29.8%), and the need for enhanced payment system resilience, financial inclusion, and reduced cross-border remittance costs. [Source: RBA]
#CBDC#Rwanda#Fintech#FinancialStability#DFC
·rba.rw·
Lessons from Global CBDC Pioneers for Rwanda's Next Leap (RBA)
PBOC to Permit Banks to Pay Interest on Digital Yuan Deposits (Weixin)
PBOC to Permit Banks to Pay Interest on Digital Yuan Deposits (Weixin)
On January 1, 2026, the People's Bank of China (PBOC) implemented its "Action Plan on Further Strengthening the Digital Yuan Management Service System and Related Financial Infrastructure Construction," transitioning the e-CNY from an M0 instrument — digital cash — to a deposit-based instrument classified within M1 or M2 depending on liquidity. Under the new framework, commercial bank e-CNY wallet balances are reclassified as commercial bank liabilities, subject to the standard fractional reserve requirement rather than the previous 100% reserve obligation that applied to all operating institutions. Banks are required to pay interest on verified (real-name) wallet balances at demand deposit rates, with quarterly settlement beginning March 2026, and those balances are covered by deposit insurance on the same terms as ordinary deposits. Anonymous (fourth-category) wallets remain excluded from interest accrual. Non-bank payment institutions retain the 100% reserve requirement, reflecting their lack of deposit-taking authorization. [Weixin] (See also: https://claude.ai/chat/c24e40c8-772f-411d-82bc-52b4048cbaaa)
#CBDC#China#DFC#Fintech#FinancialStability
·mp.weixin.qq.com·
PBOC to Permit Banks to Pay Interest on Digital Yuan Deposits (Weixin)
The Digital Euro: Awareness, Adoption and Household Portfolios (ECB)
The Digital Euro: Awareness, Adoption and Household Portfolios (ECB)
The European Central Bank (ECB) published a summary of a research paper uses survey data from the ECB’s Consumer Expectations Survey covering the 11 largest euro-area countries to assess public awareness of and willingness to adopt a digital euro and to evaluate how its introduction might affect household financial portfolios. Awareness of the digital euro has risen significantly in recent years, and a substantial share of consumers indicate they would be willing to use it for everyday transactions, particularly retail payments. Under plausible holding limits (e.g., €1,000–€10,000), the digital euro is estimated to cause only minor and statistically insignificant shifts in households’ allocation of liquid assets away from traditional bank deposits, suggesting limited risk of widespread financial disintermediation under normal conditions. The study also highlights the importance of effective communication about the digital euro’s key features to increase consumer adoption. [Source: ECB]
#CBDC#Eurozone#ECB#FinancialStability#Fintech#DFC
·ecb.europa.eu·
The Digital Euro: Awareness, Adoption and Household Portfolios (ECB)
Russian Ministry of Finance Approves Some Digital Ruble Payments for Government Budget Expenditures (MoF)
Russian Ministry of Finance Approves Some Digital Ruble Payments for Government Budget Expenditures (MoF)
[December 18, 2025] The Russian government has approved a list of budget expenditures using the digital ruble starting January 1, 2026, reported on the website of the Ministry of Finance (MoF). The list includes social security payments, and salaries and other payments to staff, as well as expenses for capital construction, repair and maintenance of state-owned facilities. Also, the use of the digital ruble will become available for transfers to budgets and transfers of funds to federal institutions. Furthermore, from July 1, 2027, corresponding transactions with regional and local budgets, as well as transactions with extra-budgetary funds and recipients of funds, will become available. Payments from the budget will be made in digital rubles only if the recipients wish. [Source: MoF]
#CBDC#Russia#Payments#DFC#Fintech
·minfin.gov.ru·
Russian Ministry of Finance Approves Some Digital Ruble Payments for Government Budget Expenditures (MoF)
Central Bank of Peru Prepares to Launch CBDC Pilot (BCRP)
Central Bank of Peru Prepares to Launch CBDC Pilot (BCRP)

[October 14, 2024] The Central Reserve Bank of Peru (BCRP) and Bitel signed a framework agreement on October 14, 2024, to launch the country's first Central Bank Digital Currency (CBDC) pilot program. This initiative, formalized through regulations published in April 2024 and Bitel's selection in July 2024, aims to improve financial inclusion by providing digital payment services to unbanked populations in rural and underserved areas. During the pilot, Bitel will distribute the CBDC through its Bipay digital wallet, allowing users to make payments and transfers with this sovereign digital money issued by the central bank. The program will assess whether CBDCs can effectively replace cash and foster a digital payments ecosystem in regions with limited financial services. [Source: BCRP] https://www.bcrp.gob.pe/docs/Transparencia/Notas-Informativas/2024/nota-informativa-2024-10-14.pdf

#Peru#CBDC#Fintech#DFC
·bcrp.gob.pe·
Central Bank of Peru Prepares to Launch CBDC Pilot (BCRP)
Central Bank of Peru Launches CBDC Pilot (BCRP)
Central Bank of Peru Launches CBDC Pilot (BCRP)

[March 10, 2025] The Central Reserve Bank of Peru (BCRP) launched an evaluation phase on March 10, 2025, for its first digital currency innovation pilot in partnership with Bitel, following a successful trial period that began in 2024. By February 2025, Bitel's BiPay wallet had enrolled 67,000 active users processing an average of 91,000 daily transactions, with S/ 4.2 million in BCRP digital currency in circulation. The three-month pilot aims to assess whether a central bank digital currency (CBDC) can effectively complement cash in regions with low financial inclusion and limited digital payment infrastructure, with the wallet accessible even to users without smartphones through USSD text messaging technology. [Source: BCRP]

#Fintech#CBDC#Peru#DFC
·bcrp.gob.pe·
Central Bank of Peru Launches CBDC Pilot (BCRP)
Digital Euro Technical Preparations Completed (ECB)
Digital Euro Technical Preparations Completed (ECB)

According to Christine Lagarde, President of the European Central Bank (ECB) technical preparations for a digital euro, including system architecture and safeguards, are now complete, with further progress now awaiting legislative action from the European Council and European Parliament. [Source: ECB]

#Fintech#CBDC#Eurozone#ECB#DFC
·ecb.europa.eu·
Digital Euro Technical Preparations Completed (ECB)
Ethiopia's Central Bank Eyes Digital Birr (Capital Ethiopia)
Ethiopia's Central Bank Eyes Digital Birr (Capital Ethiopia)
The National Bank of Ethiopia (NBE) has reportedly initiated an exploratory review of potential central bank digital currency (CBDC) frameworks, aimed at understanding global digital currency developments rather than representing a commitment to implementation. The assessment is situated within Ethiopia's draft National Digital Payments Strategy and Digital Ethiopia 2025 framework, though the central bank anticipates continued primacy of cash given the country's substantial rural and informal economy. In February 2025, the Ethiopian Parliament passed into law National Bank of Ethiopia (NBE) Proclamation No. 1359/2025, establishing a legal framework that permits the NBE to issue CBDC as legal tender. [Source: Capital Ethiopia]
#CBDC#Ethiopia#Fintech
·capitalethiopia.com·
Ethiopia's Central Bank Eyes Digital Birr (Capital Ethiopia)
Norges Bank does not Recommend CBDC Introduction (Norges Bank)
Norges Bank does not Recommend CBDC Introduction (Norges Bank)

Norges Bank has decided not to recommend introducing a central bank digital currency (CBDC) at this time, as Norway's current payment system is already efficient, secure, and stable. The bank examined both retail and wholesale CBDC, but found no immediate need for either variant. However, Norges Bank acknowledges that circumstances may change due to rapid technological advances, tokenization trends, and the potential introduction of a digital euro by the Eurosystem. The bank will continue researching CBDCs and tokenization through experimental testing and international collaboration to ensure it can implement a CBDC if necessary in the future, with a detailed report planned for Q1 2026. [Source: Norges Bank]

#CBDC#Norway#Fintech#DFC
·norges-bank.no·
Norges Bank does not Recommend CBDC Introduction (Norges Bank)
Project Rialto: Improving Instant Cross-Border Payments using Central Bank Money Settlement (BIS)
Project Rialto: Improving Instant Cross-Border Payments using Central Bank Money Settlement (BIS)
The BIS Innovation Hub wrapped up Project Rialto, a collaboration with central banks from France, Italy, Malaysia, and Singapore to improve instant cross-border payments. The project successfully demonstrated the technical feasibility of connecting traditional instant payment systems with an automated foreign exchange (FX) market using tokenized central bank money (CeBM) as a settlement asset. The architecture combined two functional blocks: domestic instant payment systems linked through a hub mechanism, and a cross-border distributed ledger network (XDN) for automated FX conversion via automated market makers (AMMs). The proof of concept tested both direct currency transactions and those requiring a vehicle currency for low-liquidity corridors, achieving payment-versus-payment settlement with minimal changes to existing systems. While technically successful, the report identifies key economic considerations for operational viability, including fee structures, performance under different market conditions, transparency impacts, and liquidity requirements, noting that AMMs require pre-funding which introduces costs and that further research is needed on the interaction between traditional intermediaries and decentralized exchanges in currency markets. [Source: BIS]
#BIS#CBDC#Fintech#DFC#FastPayments#CrossBorder#Payments#AMMs#wCBDC#CeBM
·bis.org·
Project Rialto: Improving Instant Cross-Border Payments using Central Bank Money Settlement (BIS)
Digital Pound – Case Studies (BOE)
Digital Pound – Case Studies (BOE)
The Bank of England (BOE) is looking for participants to help it explore how the digital pound could impact existing companies who choose to integrate it alongside traditional payment methods in the future. This project will consist of a series of bilateral conversations with each of the different participants based the BOE's previously published information. The aim of the study is to provide insight into where a retail digital pound could add value to different businesses, and what features are expected to be the most/least valuable for different kinds of businesses. The BOE is particularly keen to engage with companies that are interested in the digital pound, but have not yet been involved in the Digital Pound Lab. Applications are open until January 9, 2026. [Source: BOE]
#CBDC#UnitedKingdom#Fintech#DFC
·bankofengland.co.uk·
Digital Pound – Case Studies (BOE)
Immediate vs. Deferred Offline Modes for Digital Payment Ecosystems (Crunchfish)
Immediate vs. Deferred Offline Modes for Digital Payment Ecosystems (Crunchfish)
Crunchfish published a paper that compares two approaches to offline digital payments for central bank digital currency(CBDC): "immediate offline mode" that transfers digital value tokens like "digital banknotes" between devices, and "deferred offline mode" that transfers signed payment instructions (IOUs) that settle later online. The paper argues that deferred offline mode is more secure (ledger remains authoritative), more scalable (software-based, no special hardware required), easier to integrate with existing payment systems (aligns with EMV and ISO 20022), and preserves banking system liquidity since funds stay in accounts until settlement. In contrast, immediate offline mode exposes the ecosystem to double-spending risks, dependence on tamper-resistant hardware, complex reconciliation, and potential destabilization of bank lending capacity. The paper recommends that central banks adopt deferred offline mode as the baseline standard for offline CBDC payments. [Source: Crunchfish]
#Fintech#CBDC#Offline#Crunchfish#Payments
·crunchfish.com·
Immediate vs. Deferred Offline Modes for Digital Payment Ecosystems (Crunchfish)
More Than 20 Russian Banks Participate in Digital Ruble Pilot Project (TASS)
More Than 20 Russian Banks Participate in Digital Ruble Pilot Project (TASS)
Russia's TASS news service reported that, according to Bank of Russia Deputy Governor Zulfia Kakhrumanova, the digital ruble pilot, which now includes more than 20 banks, is expanding, and access to it is gradually becoming widespread. Over 90,000 transactions have been conducted, and around 2,500 users are involved, and the number of pilot participants is being gradually and systematically expanded, and the range of services being expanded. Also, earlier in 2025, the central bank, together with the Finance Ministry and the Federal Treasury, conducted test launches of smart contracts based on the digital ruble in Chuvashia, Tatarstan, and Rostov-on-Don. [Source: TASS]
#CBDC#Russia#Fintech#DFC
·tass.com·
More Than 20 Russian Banks Participate in Digital Ruble Pilot Project (TASS)
Rwanda: Digital Currency POC Set for Next Year (NBR)
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]

#Fintech#CBDC#Rwanda#DFC
·bnr.rw·
Rwanda: Digital Currency POC Set for Next Year (NBR)
Nigerian Central Bank Pivoting from Retail to Wholesale CBDC (Currency Research)
Nigerian Central Bank Pivoting from Retail to Wholesale CBDC (Currency Research)

At the Currency Research (November 17-20 Cedi@60 Anniversary Currency Conference I had the honor of moderating a panel on central bank digital currency (CBDC) trust establishment with Jean-Michel Godeffroy (ex-ECB), Roman Hartinger (G+D) and Musa Jimoh (Director of the Payments System Policy Department at the Bank of Nigeria). The whole 30 minute session is worth watching (it starts at around the 4h 58m mark), but Musa's interventions are particularly newsworthy, as he explained why the Nigerian central bank is pivoting away from retail CBDC to wholesale CBDC. Recall that Nigeria is one of only three countries where retail CBDC has recently been fully launched.) He explained how the e-Naira story is not a "rosy" one, and ran through some of the reasons. For starters, commercial banks were not willing to support the new payment instrument that they viewed as competition, and that support was essential for e-Naira success because the banks "owned" the merchants. It didn't help that the banks couldn't charge fees on e-Naira transfers, and the central bank wasn't sharing in any of the platform costs. Also, Nigerians are very much into crypto-asset markets and the e-Naira didn't offer the payments privacy expected of a payment medium. In addition, the central bank has been running a popular instant payment system since 2014, which made the e-Naira rather redundant. [Source: Currency Research]

#Fintech#CBDC#wCBDC#Nigeria#DFC
·youtube.com·
Nigerian Central Bank Pivoting from Retail to Wholesale CBDC (Currency Research)
ECB to Invite Payment Service Providers to Participate in Digital Euro POC (ECB)
ECB to Invite Payment Service Providers to Participate in Digital Euro POC (ECB)
The European Central Bank (ECB) will invite European payment service providers in early 2026 to join a 12‑month digital euro proof-of-concept (POC) that will take place in the second half of 2027. It will be aimed at testing the technical, functional and operational readiness of a potential digital euro in a controlled environment with limited participants. The POC will involve only Eurosystem staff, selected merchants that already provide everyday services on the office premises of the ECB and of euro area national central banks, as well as selected e-commerce platforms. Eurosystem staff will have the opportunity to make payments from person-to-person (both online and offline) and from person-to-business (both at the physical point of sale and on e-commerce platforms). Participating payment service providers will be selected based on their capabilities and a set of pre-defined selection criteria, and their ability to ensure representative coverage of the Euro area market in terms of size, geographical coverage and market reach.
#CBDC#Eurozone#Fintech#DFC
·ecb.europa.eu·
ECB to Invite Payment Service Providers to Participate in Digital Euro POC (ECB)
The SARB on the Necessity of a Retail CBDC in South Africa (SARB)
The SARB on the Necessity of a Retail CBDC in South Africa (SARB)
The South African Reserve Bank published a position paper and background note on retail central bank digital currency (CBDC). They examine whether a retail CBDC could address persistent gaps in South Africa's payment ecosystem, where approximately 16% of adults remain unbanked and many rely on cash despite growing digital payment adoption driven by commercial banks and fintechs. The SARB identifies three core considerations: whether a CBDC fills an unmet need, whether it should be prioritized given ongoing modernization initiatives (particularly the PayShap fast payments system and expanded non-bank participation), and whether it can match or exceed cash's value proposition across twelve dimensions including accessibility, offline capability, trust, acceptance, cost, and privacy. Drawing on limited international evidence, primarily characterized by low adoption rates in the few jurisdictions that have launched retail CBDCs, the SARB determines that current resources should focus on existing payment system modernization rather than CBDC implementation. The paper acknowledges potential longer-term value in maintaining public access to central bank money in a digital economy and enabling financial innovation through technologies like smart contracts and tokenization, but concludes these considerations do not justify immediate action. Consequently, the SARB will shift its attention toward wholesale CBDC exploration while continuing to monitor retail CBDC developments globally. [Source: SARB]
#CBDC#SouthAfrica#Fintech#FastPayments#DFC
·resbank.co.za·
The SARB on the Necessity of a Retail CBDC in South Africa (SARB)
Competing Digital Monies (BIS)
Competing Digital Monies (BIS)
The Bank for International Settlements (BIS) published a paper that assesses how the introduction of a central bank digital currency (CBDC) and/or a central bank-run fast payment system (FPS) affects bank deposits and private tokens issued by digital platform operators. The paper finds that the key welfare driver is whether payments are interoperable across “walled gardens.” In a stylized model with banks and digital platforms, non‑interoperable systems generate financial exclusion and allow intermediaries to extract rents from merchants, reducing trade volumes and welfare relative to the social optimum. Introducing either a retail CBDC or an FPS makes payment instruments interoperable, eliminates financial exclusion, maximizes the volume of transactions, and unambiguously raises social welfare, even though it may lead to some degree of disintermediation. In this framework, a well-designed retail CBDC is effectively equivalent to a central bank-run FPS for the industrial organization of the payment system, implying that in jurisdictions with robust fast payments, launching a retail CBDC is less urgent.​ [Source: BIS]
#Fintech#PaymentSystems#CBDC#FastPayments#FinancialStability#DFC
·bis.org·
Competing Digital Monies (BIS)
New Road Repairs in Kazakhstan to be Financed Through Digital Tenge (Kazakhstan PMO)
New Road Repairs in Kazakhstan to be Financed Through Digital Tenge (Kazakhstan PMO)
Kazakhstan's Prime Minister's Office (PMO) announced that it is advancing the use of its the country's digital tenge central bank digital currency (CBDC) to finance government projects, starting with medium-term road repairs and the provision of school meal vouchers. The initiative aims to automate and monitor targeted budget spending using programmatic controls and marking of digital funds, ensuring funds are utilized strictly for contractually specified purposes. Pilot projects in road repairs and school meal distribution have highlighted needs for improved integration and sector-specific digital processes. Additional pilots are testing programmable spending in public procurement, SME support, digital VAT, safe transactions for vehicles and real estate, and procurement of medical and industrial equipment. The program is expected to increase payment transparency and efficiency, with further scaling and integration into broader treasury operations planned for the coming year.​ [Source Kazakhstan's PMO]
#CBDC#Kazakhstan#Fintech#DFC
·primeminister.kz·
New Road Repairs in Kazakhstan to be Financed Through Digital Tenge (Kazakhstan PMO)
Central Bank Digital Currency: Further Navigating Challenges and Risks (IMF)
Central Bank Digital Currency: Further Navigating Challenges and Risks (IMF)
The IMF published a paper that informs its Executive Board on the current state of central bank digital currency (CBDC) development, noting that while wholesale projects are gaining prominence, several retail efforts have stalled or been paused due to a lack of clear domestic necessity. The paper also summarizes the key messages and findings from the third wave (of six) CBDC Virtual Handbook chapters published in November 2025, that cover the macro-financial implications for stability and competition; the legal intricacies regarding frameworks and financial integrity; and specific challenges related to tokenized reserves and payment resilience in fragile, conflict-affected states. In total 23 chapters are planned, with the remaining six to be published in 2026. [Source: IMF]
#CBDC#Fintech#IMF#DFC
·imf.org·
Central Bank Digital Currency: Further Navigating Challenges and Risks (IMF)
Financial Integrity Implications of Retail Central Bank Digital Currencies (IMF)
Financial Integrity Implications of Retail Central Bank Digital Currencies (IMF)
The IMF published a paper that examines how retail central bank digital currencies (rCBDCs) can affect financial integrity, particularly in the context of anti-money-laundering/combating the financing of terrorism (AML/CFT) frameworks. The paper identifies offline-capable rrCBDCs as a distinct departure from standard online payment systems because transactions may be executed without real-time connectivity to a central ledger, which raises unique financial-integrity risks. The authors argue that jurisdictions must explicitly calibrate design choices around offline limits (transaction size, frequency), device and software safeguards, audit trails (including reconnection protocols) and risk-based customer due-diligence regimes for offline use. While offline capability can support resilience, merchant reach and financial-inclusion (especially in connectivity-poor settings), the more flexible the offline mode (in terms of transfer autonomy, reversibility or anonymity), the larger the integrity trade-off becomes. [Source: IMF]
#CBDC#rCBDC#AMLCFT#FinancialIntegrity#Fintech#IMF#Regulation#DFC
·imf.org·
Financial Integrity Implications of Retail Central Bank Digital Currencies (IMF)
First UAE-China direct central bank digital currency payment made (CBUAE)
First UAE-China direct central bank digital currency payment made (CBUAE)
The Central Bank of the United Arab Emirates (CBUAE) executed the first direct payment to China using a central bank digital currency (CBDC) via the Jisr platform, established with the participation of a group of Emirati and Chinese banks. In parallel, the instant payment systems of the UAE and China were interconnected, allowing students, residents and firms in both countries to transfer funds securely and instantly across borders, aiming to reduce costs, enhance transaction reliability, and strengthen commercial ties. Also, the two countries' central banks signed a memorandum of understanding to deepen cooperation in cross-border payments and financial infrastructure development. [Source: CBUAE]
#CBDC#DFC#Fintech#CrossBorder#China#UAE
·centralbank.ae·
First UAE-China direct central bank digital currency payment made (CBUAE)
Central Bank Exploration of Tokenized Reserves
Central Bank Exploration of Tokenized Reserves
The IMF published a Fintech Note examines how central banks are exploring the use central bank reserves issued as digital tokens on distributed ledger technology (DLT) to modernize wholesale payment and settlement systems. The note critically analyzes the trade-offs inherent in various implementation architectures, noting that while "single ledger" models (where the tokenized reserves and other assets are issued and exchanged on the same ledger) offer the theoretical benefits of strict atomic settlement and advanced programmability, they introduce significant contagion risks and governance challenges compared to "compatible ledger" models or traditional real-time gross settlement (RTGS) links. Furthermore, the note scrutinizes the potential disruption to monetary policy implementation, warning that the coexistence of tokenized and traditional reserves could drive liquidity fragmentation and complicate monetary policy operations, suggesting that central banks rigorously evaluate whether these risks outweigh the utility of alternative private sector solutions, such as stablecoins or omnibus accounts. [Source: IMF]
#Tokenization#DLT#MonetaryPolicy#SettlementSystems#IMF#CBDC#wCBDC#DFC#Stablecoins
·imf.org·
Central Bank Exploration of Tokenized Reserves