DFC

Kyrgyz Republic President Sadyr Japarov signed the constitutional law that will enable the country's central bank to launch a digital som pilot project and create a legal basis for the central bank digital currency (CBDC). The law was adopted by the Parliament on March 20, 2025. The law defines the digital som as the national currency of the Kyrgyz Republic in digital form, which is legal tender in the country. The central bank is granted the exclusive right to issue the digital som, and will establish the procedure for its issue and circulation, as well as organize and ensure functioning of the digital som platform.

The National Bank of Belarus (NBB) reportedly plans to launch a digital ruble in the second half of 2026, starting with "economic agents" and expanding to government agencies and individuals in 2027. The central bank is cooperating very closely with Russian central bank and its central bank digital currency (CBDC) efforts to facilitate digital ruble cross-border transactions. Also, the NBB is working closely with government authorities to ensure that CBDC transactions can be tracked along the entire chain.

[November 20, 2024] The National Bank of the Kyrgyz Republic (NBK) convened a meeting with the relevant ministries and agencies of the Kyrgyz Republic to discuss Phase II of the project for testing the prototype of the Digital Som platform in the context of state and social payments. During the meeting, the National Bank presented a draft architecture for the implementation of the "Balaga Suyunchu" (a one-time payment upon the birth of a child) project on the Digital Som platform. An agreement was reached to continue joint implementation of the project with technical specialists.

Valor Economico is reporting that some of the firms involved in the Banco Central do Brasil Drex (BCB) wholesale central bank digital currency (CBDC) project are reducing resource commitments to it. This is reportedly due to frustrations with the BCB's privacy requirements to hide transaction data from all the banks involved except the one that is executing it, while allowing the BCB to see everything and be able to reverse transaction with a court order to that effect. All this must be achieved without harming the digital currency's programmability and composability allowed by its distributed ledger technology (DLT) based platform.

The Bank of England (BOE) is now accepting applications to conduct hands-on experimentation to explore the feasibility of different digital pound (DP) use cases in a simulated environment (no real customers or real money payments will be involved). Its goals include assessing the viability of potential business models for payment interface providers (PIPs) and external service Interface providers (ESIPs), and assessing the requirements necessary for a DP to provide a platform for innovation. The Lab is expected to run from August 2025 to July 2026, during which there will be two phases (see below). Applications are open to all private and public sector companies and organisations from technology, payments, banking, retail and other relevant sectors.

The Bank of England (BOE) published a report on their project aimed to assess whether it is technically feasible to implement an offline payment functionality for a digital pound. The project confirmed the technical feasibility, there are trade-offs, particularly around user experience and preventing double spending and counterfeiting, that make implementing it challenging. It showed that there are several technology choices that could be made for offline payments today, but those are dependent on policy choices, such as risk appetite, product proposition and liability, which impact the options available for mitigating security risks.

The Bank of England (BOE) published an an overview of its initial thinking and work on the potential roles and responsibilities of digital pound (DP) intermediaries and a preliminary conceptual framework for a DP rulebook (or similar document) aimed at facilitating the proper management of the DP were one to be launched. It includes five broad elements; (I) the key participants in the DP ecosystem, (ii) the governance and oversight of the DP payment system, (iii) intermediaries' obligations and minimum standards, (iv) the core functions intermediaries are expected to support, and (v) the governance of intermediaries.

The European Central Bank (ECB) published the fourth update on the work of the digital euro Rulebook Development Group (RDG) in developing a draft digital euro scheme rulebook. The draft rulebook sections have been updated to reflect more than 2,000 comments received as part of the RDG’s interim review in 2024. The report also provides an update on the RDG workstreams since the last update published in September 2024.

The Journal of Cybersecurity published a paper that proposes a secure offline payment model utilizing a Trusted Platform Module (TPM) to enhance the security of digital currency transactions. Additionally, the monotonic counter, the basic component of the TPM, is integrated into this model to prevent double spending in a completely offline environment. The research presents a protocol model that combines these easily implementable technologies to facilitate the efficient processing of transactions entirely offline. However, it is crucial to acknowledge the security implications associated with the TPMs and near-field communications upon which this protocol relies.

Noelle Acheson published an article that discusses the European Central Bank's (ECB) digital euro initiative and its underlying motivations. It highlights how the ECB initially presented the digital euro as a response to consumer demand for a pan-European digital payment platform, but later, the focus shifted to concerns about the dominance of US and Chinese payment platforms in Europe. The article points out that the ECB's push for a digital euro is driven by a fear of losing demand for the euro to dollar-backed stablecoins and a lack of confidence in European banks' ability to compete. It concludes that the ECB's actions reveal a deeper issue: a recognition of the entrenched divisions within the European banking system and a move towards increased public control of commercial marketplaces.

Euroclear has joined the Hong Kong Monetary Authority’s (HKMA) Project Ensemble, aimed at using wholesale central bank digital currency (CBDC) to settle interbank tokenized exposits and assets. As an Architecture Community member, Euroclear will contribute by developing a set of industry standards to support interoperability in Hong Kong's tokenization ecosystem.

The IMF published a paper that presents a practical legal-analytical framework to assess how private law rules can be designed to support the wide circulation and safe holding of token-based central bank digital currency (CBDC) primarily intended for retail use. It follows a previous IMF working paper that examined the legal foundations of CBDC under central bank law and its treatment under monetary law—the main public law aspects of CBDC. A private law framework is also needed, because unlike account-based CBDC, token-based CBDC constitutes from the legal perspective a new form of money and hence raises a lot of challenges under private law. This legal nature will shape how token-based CBDC can be transferred, held in custody, “deposited” with commercial banks, and pledged. It is also be crucial that private law rules establish with certainty how ownership and other rights in token-based CBDC can be transferred between economic agents. In most jurisdictions, the private law regime for token-based CBDC will likely need to be augmented by a comprehensive legislative intervention to provide a sufficiently robust and predictable legal foundation for this new digital currency. In designing such a legislative framework, countries will need to consider carefully whether to anchor it in a broader framework for digital money or assets.

The Iraqi News Agency (INA) reported that Muzhir Mohammad Saleh, the financial advisor to the Iraqi Prime Minister, said that the Central Bank of Iraq is planning to issue a digital currency (CBDC) as a "gradual alternative" to bank notes. He added that "digital cash will maintain its traditional functions as a unit of account, payments and savings, with the possibility of using it online and smart phones, which will contribute to developing a more stable and efficient financial environment."

The European Central Bank (ECB) published a paper that reported the results of a series of experiments in a population-representative survey of European consumers to examine their attitudes towards the possible introduction of a digital euro. The study found that test subjects who were shown a short video explaining the key features of the digital euro increases the likelihood of adoption by 12 percentage points relative to a control group that is not shown the video. Second, it found that test subjects would allocate a relatively small fraction from a positive wealth shock to digital euros and their allocation to other liquid assets would be little affected. Third, it found that holding limits in the range of €1,000 to €10,000 would have insignificant differential effects on the composition of liquid asset holdings. Lastly, 55% of test subjects said that they will not adopt the digital euro due to strong preferences for existing forms of payment.

European Central Bank (ECB) President Christine LaGarde signaled an acceleration of the pace of its digital euro project. She also gave an October 2025 deadline to "put to reality this digital euro" after "campaigning enough with all the stakeholders – meaning the European Parliament, European Council, European Commission [to] complete the legislative process, without which we will not be able to move. The crypto press has taken October 2025 to be a prospective digital euro launch date, but that seems very unlikely to me. Surely "put to reality" means something more like preparing to pilot the new central bank digital currency (CBDC)?

Magyar Nemzeti Bank (MNB) published a white paper on its Student Safe central bank digital currency (CBDC) pilot project, which was launched in May 2023 and phased out in February 2025. The aim was to create a CBDC environment that is not only secure and regulated, but also flexible and user-friendly. The Student Safe offered free of charge and secure digital payment solutions to support the financial inclusion of 8-14 year olds. It provided users with the opportunity to learn the theory and practice of digital finance basics through a combination of quizzes and mobile banking functions. Going forward, the MNB will examine possible motivations and emerging use cases that could be relevant to the Student Safe user base or to another group of consumers.

The Bank of Israel (BOI) published a paper on its preliminary digital shekel (DS) ecosystem design thinking for public and professional community feedback. It covers the basic and advanced user journey, architecture and technical issues, and various aspects of policy, rules, and regulation. A prospective DS will be a universal means of payment that would be free for private users (for businesses, the costs of using it are expected to be significantly lower than existing digital payments). The DS will support offline payments, allowing payments even in situations without network connectivity. Anonymous payments would be possible but in limited amounts. Access to personal identifiable information about user DS balances and activities will not be available to the BOI, but they will be to payment service providers, like with existing digital payment methods.

The Bank of the Russia has postponed the launch of the digital ruble from July 2025 to a later date to be determined. According to Governor Elvira Nabiullina the central bank needs more time to work out all the details in the pilot and hold all consultations with banks on the economic model that is most attractive to customers. 15 banks, 1,700 citizens and about 30 companies have taken part in the pilot that started in August 2023.

The Bank of Israel (BOI) published the results of a survey of public willingness to adopt a digital shekel. 34% of respondents showed a very high interest in using a digital shekel (8 to 10 on a scale of 1 to 10), 17% expressed medium-high interest (6 to 7) and 37% showed low interest (1-5). The survey also examined what features of the digital shekel may increase its use.  Prominent among them was customer protection against fraud and system errors, the possibility of remuneration, and zero fees for basic functions.  In contrast, the main concerns raised by the survey participants were cybersecurity and information security risks, difficulty of use, and lack of accessibility for certain population groups.  Unlike findings in some other countries, privacy concerns did not emerge as a dominant issue. Men showed higher interest than women in the digital shekel, and interest was positively correlated with age and with income level.

The Bank for International Settlements (BIS) published an update on Project Rialto, which is exploring connecting instant payment systems (IPSs) across borders using central bank money (CBM) on a tokenized platform and an automated foreign exchange (FX) conversion layer. Such integration raises some specific challenges and design considerations, which will be addressed in the development phase and form an integral part of the project’s contributions to improving cross-border payments. This report identifies the main policy and technical aspects to be considered, with the next steps being to develop at proof of concept.