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Evaluating the Implications of CBDC for Financial Stability (IMF)
Evaluating the Implications of CBDC for Financial Stability (IMF)
The IMF published a Fintech Note that examines the potential financial stability implications of introducing retail central bank digital currencies (CBDCs). The paper identifies six transmission channels through which CBDCs could affect financial stability: liability and asset channels (affecting bank funding structures and balance sheets), fee income channel (reducing bank revenues), run-risk channel (potentially facilitating bank runs), information channel (affecting data flows on borrowers), and payment system resilience channel (impacting competition and operational resilience). While acknowledging theoretical ambiguities, the paper reviews quantitative studies suggesting that under moderate adoption scenarios (approximately 10% of deposits), CBDCs would likely have manageable effects on bank profitability and financial stability, particularly in systems characterized by low competition, diverse funding sources, and limited deposit reliance. The magnitude of impacts depends critically on CBDC adoption rates, country-specific characteristics, and design features such as remuneration rates and holding limits. And in any case, quantity restrictions, tiered remuneration, and access parameters, combined with traditional prudential policies, can effectively mitigate potential financial stability risks.​​​​​​​​​​​​​​​​ [Source: IMF]
#CBDC#FinancialStability#Fintech#DFC#IMF
·imf.org·
Evaluating the Implications of CBDC for Financial Stability (IMF)
Selected Legal Considerations for Central Bank Digital Currencies (IMF)
Selected Legal Considerations for Central Bank Digital Currencies (IMF)
The IMF published a Fintech Note that provides comprehensive guidance for policymakers evaluating legal frameworks for central bank digital currency (CBDC) issuance, focusing primarily on retail CBDC (rCBDC) with separate analysis of wholesale CBDC (wCBDC). The authors examine how rCBDC should be legally classified as currency under public law—establishing it as a direct central bank liability with attributes including monopoly of issuance, cours forcé, legal tender status, and criminal law protections. The Note addresses central banks' legal authority to issue rCBDC and operate payment platforms, the regulatory frameworks needed for intermediaries in two-tier distribution models, and the legal relationships between central banks, intermediaries, and users. Specific design features are analyzed, including limits on holdings and transactions, interest-bearing capabilities, programmability, and offline functionality. For wCBDC, the Note examines legal challenges related to tokenization, settlement finality, and central bank mandates to operate platforms for financial institutions. Throughout, the analysis draws on enacted laws and regulatory drafts from various jurisdictions, emphasizing that while the Note identifies legal considerations and potential approaches, it does not constitute a recommendation for jurisdictions to issue CBDCs. [Source: IMF]
#CBDC#Legal#wCBDC#rCBDC#Offline#Fintech#DFC#IMF
·imf.org·
Selected Legal Considerations for Central Bank Digital Currencies (IMF)
The Impact of Central Bank Digital Currency on Payments Competition (IMF)
The Impact of Central Bank Digital Currency on Payments Competition (IMF)

The IMF published a Fintech Note that examines whether central bank digital currencies (CBDCs) could enhance competition in retail payment markets. The authors analyze CBDC's potential competitive impact through four channels: pricing discipline, service quality improvements, market contestability, and financial access expansion. The analysis identifies three market scenarios with varying competitive implications. In unregulated markets dominated by private platforms, CBDC could exert substantial competitive pressure by reducing fees and lowering entry barriers, particularly if interoperability with existing systems is ensured. In markets already subject to regulatory interventions such as interchange fee caps, CBDC would likely have more moderate effects, addressing residual gaps rather than fundamentally altering market dynamics. In jurisdictions with well-functioning public fast payment systems, CBDC would offer primarily incremental benefits, mainly extending access to underserved populations. The Note emphasizes that CBDC's actual competitive impact depends critically on design choices—including fee structures, intermediary participation rules, holding limits, and interoperability requirements—and warns that overly aggressive pricing could crowd out private providers, potentially reducing payment system resilience and diversity. [Source: IMF]

#CBDC#Fintech#DFC#IMF#Payments
·imf.org·
The Impact of Central Bank Digital Currency on Payments Competition (IMF)
Public Demand and Financial Implications for Retail CBDC: A Randomized Survey Experiment (BOK)
Public Demand and Financial Implications for Retail CBDC: A Randomized Survey Experiment (BOK)
The Bank of Korea (BOK) published a working paper that examines public demand for retail central bank digital currency (CBDC) through a randomized survey experiment conducted in October 2023 with 2,879 South Korean respondents. The researchers tested five different CBDC designs varying by online/offline functionality, privacy protection features (through physical cards), and interest payment options. The key findings indicate that while CBDC design features (privacy protections and offline capabilities) do not significantly influence demand for CBDC as a payment method, offering positive interest rates does enhance its appeal as a store of value. The study finds that CBDC would primarily substitute debit card usage rather than credit cards or mobile payment apps, with overall projected usage around 28% of transactions. Trust in the central bank and willingness to adopt new technology emerge as more important determinants of CBDC demand than specific technical features. The authors recommend setting holding limits around 4-5 million KRW (EUR 3,000) to balance financial innovation against risks to bank disintermediation, as this would affect fewer than 15% of users while potentially reducing demand deposits by approximately 15-17% without such limits. [Source: BOK]
#CBDC#Korea#Fintech#DFC
·bok.or.kr·
Public Demand and Financial Implications for Retail CBDC: A Randomized Survey Experiment (BOK)
Payment Resilience in Fragile and Conflict-Affected States: Lessons for CBDC (IMF)
Payment Resilience in Fragile and Conflict-Affected States: Lessons for CBDC (IMF)
The IMF published a Fintech Note that analyzes how payment systems in fragile and conflict-affected states (FCS) face severe disruptions, from cyberattacks and infrastructure breakdowns to institutional challenges, and offers practical strategies to strengthen payment system resilience. Key lessons for policymakers include building redundancy through multisite operational architectures, leveraging distributed/cloud infrastructure and satellite networks, promoting user-centric design and digital literacy, and ensuring robust contingency planning and regulatory agility. The note finds that both cash and digital payments remain essential for continuity, with innovations in digital money, such as stablecoins and central bank digital currency (CBDC), playing emerging roles. For CBDCs, resilience depends on careful design, redundancy, offline capabilities, interoperability, and trust-building, but adoption faces operational, regulatory, and trust-related challenges unique to FCS settings. [Source: IMF]
#CBDC#Offline#Payments#Resilience#Fintech#DFC#IMF
·imf.org·
Payment Resilience in Fragile and Conflict-Affected States: Lessons for CBDC (IMF)
Successful Live Trial of Settlement of Interbank Overnight Lending Using Wholesale CBDC (MAS)
Successful Live Trial of Settlement of Interbank Overnight Lending Using Wholesale CBDC (MAS)
The Monetary Authority of Singapore (MAS) conducted a successful live trial of settling interbank overnight lending transactions using wholesale central bank digital currency (CBDC) on the Singapore Dollar Test Network (SGD Testnet). The trial involved three commercial banks, and featured the first live issuance of Singapore dollar wholesale CBDC, with transactions recorded in the banks' official books and regulatory filings. The SGD Testnet offers functionalities including a common settlement asset, programmability for real-time conditional payments, and multi-asset atomic settlement, helping to reduce settlement risks and market fragmentation. MAS plans to build on this pilot by conducting a future trial for the issuance and settlement of tokenized MAS Bills via CBDC, with further details to be provided in 2026.​ [Source: MAS]
#CBDC#wCBDC#Singapore#Settlement#DLT#DFC#Tokenization
·mas.gov.sg·
Successful Live Trial of Settlement of Interbank Overnight Lending Using Wholesale CBDC (MAS)
Project Guardian Fixed Income Workstream Update (ICMA)
Project Guardian Fixed Income Workstream Update (ICMA)
The International Capital Market Association (ICMA) published two key technical deliverables to the Monetary Authority of Singapore (MAS) Project Guardian Fixed Income Framework workstream. One was a guide for delivery versus payment (DvP) settlement of distributed ledger technology (DLT) based debt securities, comparing wholesale central bank digital currencies (CBDCs), tokenized bank deposits, and stablecoins. Each presents distinct opportunities and risks regarding counterparty exposure, liquidity, and operational considerations. Multiple settlement forms will coexist and require interoperability. Key challenges include legal clarity, custody arrangements, connectivity between on-chain and off-chain systems, and achieving settlement finality across different networks. The second deliverable was on lessons learned from custody arrangements for DLT-based debt securities, revealing common challenges. Key issues include determining whether tokenized securities require novel custody models or fit within traditional central securities depositories (CSDs), establishing legal clarity for investor eligibility, safeguarding private cryptographic keys, and integrating DLT platforms with existing systems. New contractual frameworks addressing roles, liabilities, and cross-border complexities are essential for scaling custody arrangements. [Source: ICMA]
#Fintech#CBDC#wCBDC#DepositTokens#Stablecoins#CryptoAssets#Settlement#Tokenization#DFC#Singapore
·icmagroup.org·
Project Guardian Fixed Income Workstream Update (ICMA)
UAE Government Conducts First Digital Dirham Transaction (UAE Government)
UAE Government Conducts First Digital Dirham Transaction (UAE Government)
The Ministry of Finance and Dubai Finance, in collaboration with the Central Bank of the UAE, completed the country’s first government financial transaction using the Digital Dirham. This transaction was part of the proof-of-concept (POC) phase of the Digital Dirham project launched under the Financial Infrastructure Transformation Programme. The POC used the mBridge platform to test integration and operational readiness between federal and local government payment systems. The transaction was processed in less than two minutes via the mBridge platform for multi-CBDC payments, designed to provide secure, reliable digital government settlements without intermediaries, while aiming to enhance operational efficiency, transparency, and speed in government transactions. ​[Source: UAE Government]
#CBDC#DFC#UAE#Fintech#Dubai
·mediaoffice.ae·
UAE Government Conducts First Digital Dirham Transaction (UAE Government)
Brazil's Central Bank Shuts Down Drex CBDC Platform (Valor)
Brazil's Central Bank Shuts Down Drex CBDC Platform (Valor)
Banco Central do Brasil (BCB) has reportedly shut down its Drex central bank digital currency (CBDC) project, due to high maintenance costs and unresolved privacy concerns in transaction processing. The next phase of the Drex project will take a technology-neutral approach, with ongoing studies into tokenization and settlement environments for central bank-issued currency, but privacy solutions remain a challenge. It has been a long while since the last official update from the BCB, but back in August 2025, it had reportedly signaled that it was dropping the blockchain-based design due to immature privacy solutions that failed to meet bank-grade confidentiality and verifiability standards, although at that time the project was still reportedly alive. What is not clear from these latest reports is whether the BCB is walking completely away from the CBDC project or they are just confirmations that the blockchain-based design is being dropped. Until the BCB speaks up for itself, we'll just have to wait. [Source:Valor]
#CBDC#Brazil#DLT#Blockchain#Fintech#DFC
·valorinternational.globo.com·
Brazil's Central Bank Shuts Down Drex CBDC Platform (Valor)
Understanding Disputes Over Digitalization: A Perspective of Cross-Border CBDCs (Heng Wang)
Understanding Disputes Over Digitalization: A Perspective of Cross-Border CBDCs (Heng Wang)
In a forthcoming paper in the Emory International Law Review, Heng Wang analyzes the complexity of disputes arising from digitalization, with a particular focus on cross-border central bank digital currencies (CBDCs). The paper highlights that CBDCs—as novel digital forms of national currency issued by central banks—bring transformative changes, especially through cross-border initiatives like Project mBridge and other multilateral efforts. The paper argues that the rapid digitalization of currency systems increases the likelihood of disputes due to diverging stakeholder interests, regulatory inconsistencies, technological challenges, and evolving governance structures. Wang proposes a framework examining social (stakeholder interests and interactions), material (subject matter and party perceptions), and temporal (evolution and timing of disputes) dimensions to better understand these disputes. By dissecting disputes along these lines, the paper aims to bridge the gaps between digital transformation and dispute settlement, helping public and private actors navigate the complex regulatory, technological, and operational landscape emerging from global CBDC adoption.​ [Source: ResearchGate]
#CBDC#CrossBorder#Legal#DFC#Fintech
·researchgate.net·
Understanding Disputes Over Digitalization: A Perspective of Cross-Border CBDCs (Heng Wang)
Conceptual Model for POS Payment with Retail CBDC
Conceptual Model for POS Payment with Retail CBDC
[November 2024] Lars Hupel posted a paper that presents a comprehensive conceptual model for point-of-sale (POS) payments using retail central bank digital currency (CBDC), with a focus on user and merchant interaction scenarios. The paper examines how retail CBDC could be accepted at POS alongside existing methods, emphasizing the increased relevance of push payments, the necessity for wallet and platform diversity, and the complexity introduced for both consumers and merchants in selecting payment sources. Offline functionality, peer-to-peer mode, and seamless integration with existing payment infrastructure are key focus areas. The model advocates for leveraging familiar standards (like EMV) for online authentication, standardizing QR codes, and addressing the unique user experience challenges posed by offline payments, with the ultimate goal of enhancing adoption while minimizing disruption and inefficiency in the payment landscape.​ [Source: Lars Hupel]
#CBDC#Payments#Interoperability#Offline#Fintech#DFC
·lars.hupel.info·
Conceptual Model for POS Payment with Retail CBDC
The Past and Future of Money: New Technologies and Economic Risks (G30)
The Past and Future of Money: New Technologies and Economic Risks (G30)
[October 8, 2025] The Group of Thirty (G30) published a report that explores how rapid technological innovation is transforming money and payment systems while exposing new risks to monetary stability. It emphasizes the enduring importance of trust, singleness, and stability in the monetary system, particularly through the two-tier structure where central bank and commercial bank money remain interchangeable at par—an achievement of modern regulation and oversight. Drawing on historical lessons from commodity money and banking eras, the report argues that while new technologies like cryptocurrencies and stablecoins promise efficiency and programmability, they also risk undermining monetary singleness, facilitating illicit finance, and evading regulation if not carefully managed. The working group recommends policymakers accelerate work on central bank digital currencies (CBDCs), encourage bank sector innovations such as tokenized deposits within a robust regulatory perimeter, and urgently develop strong regulatory frameworks for stablecoins to promote payment competition without destabilizing the system. [Source: G30]​
#G30#Fintech#CBDC#DFC#Stablecoins#CryptoAssets#DepositTokens
·group30.org·
The Past and Future of Money: New Technologies and Economic Risks (G30)
Money, Payment and Technology: The Legal Challenge (EBLR)
Money, Payment and Technology: The Legal Challenge (EBLR)
[September 2025] The European Business Law Review (EBLR) published an article by Benjamin Geva that explores the evolving relationship between money, payment, and technology, tracing how advances in payment instruments and innovations like cheques, payment cards, e-money, and digital currency have blurred the lines between "money" and "payment." Historically, money referred to tangible assets like coins, while payment described the transfer mechanism. Over centuries, legal frameworks—especially the law of negotiable instruments—struggled to keep pace as banking systems, technological progress, and new instruments made payment itself a form of money. The rise of electronic banking, stored-value devices, and digital coins further transformed payment mechanisms, creating new legal challenges. With the advent of Fintech and the emergence of central bank digital currencies (CBDC), Geva argues that payment law now faces immense regulatory, consumer protection, and privacy hurdles, and calls for a flexible, coherent legal system to govern the complex landscape of modern payments and money. [Source: EBLR]
#Legal#Regulation#Payments#Fintech#LegalTender#CBDC#DFC
·kluwerlawonline.com·
Money, Payment and Technology: The Legal Challenge (EBLR)
The E-Banknote as a 'Banknote': A Monetary Law Interpreted
The E-Banknote as a 'Banknote': A Monetary Law Interpreted
[June 28, 2021] The Oxford Journal of Legal Studies published a paper co-written by Benjamin Geva that examines whether electronic banknotes (“e-banknotes”) can be legally and functionally defined as “banknotes” under present monetary laws. It argues that the evolution of banknotes—from paper to digital—should be interpreted through general monetary law principles that prioritize functionality and societal needs over strict adherence to physical form. The authors propose precise terminology for digital currencies and show that a banknote may be “written” electronically, focusing particularly on token-based (non-blockchain) models for central bank digital currency (CBDC) issuance. They advocate for central banks to regard electronic banknotes as legal tender, emphasizing that statutes and constitutions should adapt fluidly with technological progress. The article concludes that e-banknotes, when designed as unique digital tokens with secure ownership and transfer, fulfill both the legal and functional requirements of traditional banknotes, thus paving the way for their issuance without necessitating changes to central bank powers. [Source: SSRN]
#CBDC#LegalTender#Regulation#Fintech#DFC
·papers.ssrn.com·
The E-Banknote as a 'Banknote': A Monetary Law Interpreted
CBDC and Monetary Architecture (Dirk Niepelt)
CBDC and Monetary Architecture (Dirk Niepelt)
Dirk Niepelt reviewed the macroeconomic literature on retail central bank digital currency (CBDC), focusing on the question of when the introduction of CBDC is macroeconomically neutral and when it produces significant effects. The study uses a general-equilibrium “neutrality” framework to show that, under certain policy choices, introducing CBDC—even if it displaces bank deposits and alters funding sources—need not have major macroeconomic consequences. However, many of the effects identified in the literature stem not from the intrinsic properties of CBDC but from associated policies or departures from neutrality. CBDC’s impact on financial stability, bank intermediation, and macroeconomic outcomes mainly depends on how it is implemented; political and policy choices (rather than fundamental economic constraints). [Source: Niepelt.ch]
#CBDC#FinancialStability#Macrofinancial#Fintech#DFC
·niepelt.ch·
CBDC and Monetary Architecture (Dirk Niepelt)
CBDC, Flight-to-Quality, and Bank-Runs in an Agent-Based Model (arXiv)
CBDC, Flight-to-Quality, and Bank-Runs in an Agent-Based Model (arXiv)
This paper analyzes the impact of introducing a Central Bank Digital Currency (CBDC) on financial stability and welfare using a macroeconomic agent-based model incorporating firms, banks, and households. Households can switch their funds from bank deposits to CBDC based on perceived bank risk, which amplifies the risk of bank runs and financial instability, especially when there is no cap on CBDC holdings. The model shows that while CBDC introduction has limited effects on overall macroeconomic variables like GDP and unemployment, it leads to slightly higher loan interest rates and reduced credit to firms, with wealth increasingly redistributed from banks and firms to households. Unconstrained conversion of deposits to CBDC significantly raises bank default rates and economic volatility, whereas imposing limits (e.g., a cap at 30–40% of deposits and deposit insurance) mitigates these negative effects and can improve welfare. The research concludes that fears over financial disintermediation are mostly exaggerated—well-designed holding limits keep the risks low and offer resilience, but allowing large-scale conversion to CBDC could harm both stability and welfare.​ [Source: arXiv]
#CBDC#FinancialStability#Macrofinancial#Fintech#DFC
·arxiv.org·
CBDC, Flight-to-Quality, and Bank-Runs in an Agent-Based Model (arXiv)
Digital Euro Legislative Process Advances (European Parliament)
Digital Euro Legislative Process Advances (European Parliament)

Fernando Navarrete, the rapporteur responsible for shepherding the digital euro legislation through the European Parliament, published his draft report for the Single Currency Package, which includes the Establishment of the Digital Euro Regulation, On October 28, 2025. The package included proposals for the establishment of the digital euro regulation, legal tender status regulation, and the provisions for payment service providers (PSPs) in non-euro member states regulation. [Source: European Parliament] https://www.europarl.europa.eu/doceo/document/ECON-PR-778137_EN.pdf (legal tender status) https://www.europarl.europa.eu/doceo/document/ECON-PR-778135_EN.pdf (PSPs in non-member countries)

Notably, the DRAFT legislation prioritizes the rollout of the offline versioN and mandates that the European Central Bank (ECB) complete all technical and organizational preparations for the offline digital euro before the online version is considered. Introduction of the online digital euro will depend on a market assessment by the European Commission, which will proceed only if there is no suitable pan-European private retail payment solution that covers person-to-person, point-of-sale, and e-commerce. Both forms, upon ECB authorization, enter a minimum 24-month adaptation phase to allow payment service providers and stakeholders to adjust securely and gradually. This framework aims to avoid crowding out private sector solutions, synchronize technical standards, and ensure interoperability, with clear fee guidelines and user choice, making public sector intervention conditional and proportional to actual market needs.

#Fintech#CBDC#ECB#DFC#Eurozone
·europarl.europa.eu·
Digital Euro Legislative Process Advances (European Parliament)
European Council Call for Acceleration of Digital Euro Progress (European Council)
European Council Call for Acceleration of Digital Euro Progress (European Council)
At its October 23, 2025 Summit, the European Council called for the swift completion of digital euro legislative work and the acceleration of other preparatory steps. The statement noted that "the digital euro offers a strategic opportunity for supporting a competitive and resilient European payment system, contributing to Europe’s strategic autonomy and economic security, and strengthening the international role of the euro". The European Council is the top political body of the European Union (EU), composed of the heads of state or government of all EU member countries, the European Council President, and the European Commission President. [Source: European Council]
#CBDC#Fintech#Eurozone#ECB#DFC
·consilium.europa.eu·
European Council Call for Acceleration of Digital Euro Progress (European Council)
Bank Indonesia Governor Reveals Government Bond Tokenization Plans (CNBC)
Bank Indonesia Governor Reveals Government Bond Tokenization Plans (CNBC)
Bank Indonesia (BI) Governor Perry Warjiyo reportedly announced plans to issue a national stablecoin backed by government bonds (Surat Berharga Negara or SBN). The digital central bank securities will be tokenized versions of government bonds built on a prospective wholesale digital rupiah central bank digital currency (CBDC) platform. He goes on to say that the tokenized bonds would represent "Indonesia's national version of a stablecoin" but he might mean that in the broader sense of "stablecoin" rather than as a generally-accepted medium of exchange. My interpretation would be consistent with where the BI's Project Garuda wholesale CBDC proof of concept (POC) left off, concluding that the BI will proceed with broader explorations of a securities ledger. [Source: CNBC]
#CBDC#Indonesia#wCBDC#Tokenization#Settlement#Fintech#DFC
·cnbcindonesia.com·
Bank Indonesia Governor Reveals Government Bond Tokenization Plans (CNBC)
HKMA Completes Second Phase of e-HKD Pilot Programme (HKMA)
HKMA Completes Second Phase of e-HKD Pilot Programme (HKMA)

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

#Fintech#CBDC#DFC#HongKong#wCBDC#Tokenization#Settlement#DLT
·hkma.gov.hk·
HKMA Completes Second Phase of e-HKD Pilot Programme (HKMA)
eCurrency to Pilot Central Bank Digital Currency Solution in Madagascar (eCurrency)
eCurrency to Pilot Central Bank Digital Currency Solution in Madagascar (eCurrency)
eCurrency Mint is set to begin an eAriary central bank digital currency (CBDC) pilot in Madagascar. The project aims to introduce a digital version of the Ariary currency, leveraging eCurrency's DSC3 technology to enable secure and efficient transactions. The solution is designed to integrate seamlessly into Madagascar's existing financial ecosystem, and will be piloted in partnership with PayLogic SA to align with the “specific requirements of the Banky Foiben'i Madagasikara”. However, it is unclear to what extent the central bank itself is involved. [Source: PR Newswire]
#Madagascar#CBDC#Fintech#eCurrency#DFC
·prnewswire.com·
eCurrency to Pilot Central Bank Digital Currency Solution in Madagascar (eCurrency)
China’s Digital Yuan CBDC Processes $2 Trillion (Ledger Insights)
China’s Digital Yuan CBDC Processes $2 Trillion (Ledger Insights)
China's digital yuan payment volumes reportedly reached RMB 14.2 trillion ($2 trillion) by September 2025, nearly doubling from RMB 7.3 trillion in July 2024. The number of digital RMB wallets has increased to 2.25 billion, with users opening multiple wallets. However, the average transaction value has remained stable at RMB 428 ($60), a decline from the 2023 peak of RMB 1,895 ($135). [Source: Ledger Insights] https://english.news.cn/20251028/ef76c5940b984294a966119ad660dd8f/c.html
#CBDC#China#Fintech#mCBDC#DFC
·ledgerinsights.com·
China’s Digital Yuan CBDC Processes $2 Trillion (Ledger Insights)
Can CBDCs Improve the Delivery of Social Safety Nets? (IMF)
Can CBDCs Improve the Delivery of Social Safety Nets? (IMF)
The IMF published a paper that evaluates whether retail central bank digital currencies (CBDCs) can improve the effectiveness and efficiency of delivering social safety nets (SSNs) to vulnerable populations. The authors find that while CBDCs used merely as payment delivery mechanisms offer limited advantages over existing fast payment systems, their real potential lies in serving as payment administration platforms. Features such as programmability, peer-to-peer transfers, decentralized ledger access, and direct transaction monitoring could enable SSN agencies to automate transfers, operate independently from private financial institutions, and better track payments, leading to more streamlined and transparent benefit delivery. However, these benefits come with significant challenges: privacy protection, compliance and customer due diligence requirements, technological and infrastructure risks, and the need for thoughtful integration with established systems. The paper concludes that unlocking CBDCs’ full potential for social safety nets requires close collaboration between digital currency developers and SSN administrators, with careful consideration of comparative advantages and risks. [Source: IMF]
#CBDC#G2P#Privacy#Fintech#IMF#DFC
·imf.org·
Can CBDCs Improve the Delivery of Social Safety Nets? (IMF)
Design Note – Alias Service (Bank of England)
Design Note – Alias Service (Bank of England)
The Bank of England (BOE) published a digital pound design note that explores how alternative aliases, such as mobile numbers, email addresses, or randomly generated codes, could improve convenience, privacy, and interoperability in retail payments. The note highlights that, when used as alternative identifiers for digital money accounts, aliases can improve the convenience, privacy and security of retail payments, while also supporting interoperability between different payment schemes and jurisdictions. The BOE proposes that a digital pound alias service should be integrated into its infrastructure, ensuring neutral mapping of aliases to user accounts irrespective of provider, but with careful safeguards for privacy. The preferred model would see the BOE host or orchestrate the service while potentially delegating data management to intermediaries (payment interface providers), balancing system control with innovation and privacy. [Source: BOE]
#CBDC#DFC#Fintech#UnitedKingdom#DigitalID
·bankofengland.co.uk·
Design Note – Alias Service (Bank of England)
HaRBInger 2025 Fourth Global Hackathon (RBI)
HaRBInger 2025 Fourth Global Hackathon (RBI)

The Reserve Bank of India (RBI) launched its "HaRBInger 2025 – Innovation for Transformation" hackathon, which features as one of the three focus areas, offline central bank digital currency (CBDC). Participants are invited to design a secure, user-friendly, tamper-resistant, and scalable solution for enabling offline digital rupee transactions. The solution should allow consecutive offline payments without real-time internet or telecom connectivity and ensuring double-spend prevention. It should work on low-cost devices and be agnostic across devices and communication protocols, and work on different form factors. [Source: RBI]

#India#CBDC#Offline#DFC#Fintech
·rbi.org.in·
HaRBInger 2025 Fourth Global Hackathon (RBI)
India Introduces Digital Rupee for Easy Offline Payments (The CSR Journal)
India Introduces Digital Rupee for Easy Offline Payments (The CSR Journal)
The Reserve Bank of India reportedly officially launched the offline digital rupee CBDC during the Global Fintech Fest 2025 in Mumbai. It would offer direct wallet-to-wallet transfers, benefiting remote areas and those without banking access. Users will be able to download wallets from 15 major banks. The wallets will offer secure recovery options in case of lost devices, alongside transaction limits set at Rs 50,000 per day or 20 transactions, with wallet balances capped at Rs 1 lakh. Key features will include programmable money (restricting usage by location, time, or purpose), and support for government welfare and corporate payments. [Source CSR Journal]
#CBDC#India#Offline#Fintech
·thecsrjournal.in·
India Introduces Digital Rupee for Easy Offline Payments (The CSR Journal)
Design Note – Offline Payments (Bank of England)
Design Note – Offline Payments (Bank of England)
The Bank of England (BOE) published a note that outlines its current thinking on offline payments for a potential digital pound, distinguishing between “deferred offline payments” (similar to card transactions where payment is queued until a party reconnects online) and “device offline payments” (where value moves directly between devices out of online system view, like cash transfers). The note emphasizes the established use cases for deferred offline payments (e.g., transit, vending machines) and acknowledges future opportunities and resilience benefits for device offline payments, though risks and technical maturity mean such device-to-device features would not be available at launch. [Source: BOE]
#Fintech#CBDC#DFC#Offline#UnitedKingdom
·bankofengland.co.uk·
Design Note – Offline Payments (Bank of England)
Bank Negara Malaysia to Complete Domestic Wholesale CBDC proof-of-concept by end-2025 (MOF)
Bank Negara Malaysia to Complete Domestic Wholesale CBDC proof-of-concept by end-2025 (MOF)
Bank Negara Malaysia (BNM) is reportedly expected to complete its proof-of-concept for a domestic wholesale central bank digital currency (CBDC) by the end of 2025. This initiative seeks to evaluate the potential use of CBDC within Malaysia's wholesale payment system, especially focusing on the real-time electronic transfer of funds and securities system (Rentas), and to improve the understanding of distributed ledger technology (DLT) and CBDC for both BNM and the broader financial sector. Additionally, BNM is actively participating in several Bank for International Settlements Innovation Hub-led projects—such as Project Dunbar, Project Mandala, and Project Rialto—which explore how multi-CBDC arrangements can make cross-border wholesale payments more efficient, faster, and secure. [Source: The Edge Malaysia]
#CBDC#wCBDC#Malaysia#Fintech#DFC#CrossBorder#Settlement
·theedgemalaysia.com·
Bank Negara Malaysia to Complete Domestic Wholesale CBDC proof-of-concept by end-2025 (MOF)
Ethiopia's Parliament Passes CBDC-Enabling Legislation (NBE)
Ethiopia's Parliament Passes CBDC-Enabling Legislation (NBE)
[February 4, 2025] The Ethiopian Parliament passed into law National Bank of Ethiopia (NBE) Proclamation No. 1359/2025, establishing a legal framework for the introduction of a digital birr central bank digital currency (CBDC). It permits the central bank's Board to issue a Directive to issue CBDC as legal tender of the country. [Source: NBE]
#Ethiopia#CBDC#DFC#Fintech
·nbe.gov.et·
Ethiopia's Parliament Passes CBDC-Enabling Legislation (NBE)
Bolivian Central Bank Publishes CBDC Consultative Paper (BCB)
Bolivian Central Bank Publishes CBDC Consultative Paper (BCB)
Banco Central de Bolivia (BCB) published an initial assessment of the feasibility of implementing a central bank digital currency (CBDC) in Bolivia. The consultative document examines the progress made in modernizing the national payment system and analyzes how a digital boliviano could be integrated as a complement to existing infrastructure, strengthening monetary sovereignty and financial stability. It finds that considering the currently high level of development of the retail payment system in Bolivia, the additional benefits that a retail CBDC could offer could prove limited in the short term. In this context, the impact of its implementation must be carefully evaluated, especially in relation to existing capacities. However, a wholesale CBDC represents a strategic opportunity to strengthen the operational, technological, and regulatory pillars of the national financial system. The BCB emphasizes that the publication of this paper does not imply a definitive decision on the issuance of a digital boliviano. https://web.archive.org/web/20251225231901/https://www.bcb.gob.bo/webdocs/CBDC/Moneda_digital_CBDC_v11.pdf https://www.bcb.gob.bo/webdocs/files_noticias/CP-49%20Boliviano%20digital%20%20OK%20OK%20(1).pdf [Source: BCB]
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Bolivian Central Bank Publishes CBDC Consultative Paper (BCB)