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BOE to press on with CBDC in case banks fall short
BOE to press on with CBDC in case banks fall short
According to Governor Andrew Bailey, the Bank of England (BOE) is pressing on with work on a potential retail central bank digital currency (CBDC) as it sees risks that commercial banks are failing to keep up with digital payment system innovations. "Absent innovation in commercial bank money, central banks may be left as the only game in town insofar as retail payments innovation is concerned, the central bank is indifferent as to whether retail payments are made in central bank or commercial bank money. However, during a 2021 House of Lords Economic Affairs Committee meeting, Bailey and then-Governor Jon Cunliffe implied that they would prefer not to see retail payments fully shift to nonbank payment instruments such as stablecoins. https://committees.parliament.uk/oralevidence/3062/html/
#Fintech#CBDC#UnitedKingdom#DFC
·bankofengland.co.uk·
BOE to press on with CBDC in case banks fall short
Russian Banks Baulk at Digital Ruble Implementation Costs
Russian Banks Baulk at Digital Ruble Implementation Costs
Russian banks, particularly smaller ones, are reportedly unhappy about the high cost (between 120 million and 200 million rubles) of integrating with the central bank’s digital ruble platform. The Bank of Russia has mandated that the 13 systemically important banks must offer clients the ability to use the digital ruble starting July 1, 2025. Universal banks (around 208) are expected to follow suit on July 1, 2026, while banks with basic licenses will begin on July 1, 2027. Despite these reservations expressed by some banks, the Bank of Russia is proceeding with the established timeframes and has vowed to fine institutions that fail to abide by the set deadlines. https://www.kommersant.ru/doc/7249032
#Fintech#CBDC#Russia#DFC
·news.bitcoin.com·
Russian Banks Baulk at Digital Ruble Implementation Costs
Transactional and network analysis of Thailand’s retail CBDC pilot
Transactional and network analysis of Thailand’s retail CBDC pilot
Bank of Thailand (BOT) staff published a paper that analyzes end-to-end transaction data from the central bank's seven-month 2023 retail CBDC pilot. The pilot's three financial service providers (FSPs) appeared to engage in asymmetric behavior between issuance and redemption of CBDC. They generally front-loaded CBDC to absorb uncertainty of future demand and pursued an adaptive strategy to adjust the level of their CBDC reserve balance following retail transaction observed to minimize the opportunity cost of holding unremunerated CBDC. Retail users tend to use CBDC as a means of payment but not as story of value, managing their CBDC holdings to meet the demand for making payments to minimize the opportunity cost of holding CBDC.
#Fintech#CBDC#Thailand#DFC
·dcfintechweek.org·
Transactional and network analysis of Thailand’s retail CBDC pilot
Bank of Ghana eCedi CBDC pilot project report
Bank of Ghana eCedi CBDC pilot project report
The Bank of Ghana (BOG) published the results of its recent eCedi retail central bank digital currency (CBDC) pilot project. The pilot, which used Giesecke+Devrient's (G+D's) Filia CBDC platform , involved individuals and merchants of diverse demographic and socioeconomic backgrounds, using mobile applications, smart cards and point-of-sale (POS) terminals for four months. Offline functionality, using smartcards and Filia Connect devices, was successfully tested in a carefully chosen off-grid location, with person-to-business (P2B) being the primary focus. Post-pilot surveys indicated a strong possibility of all participants adopting the eCedi if it were to go live. However, there are no immediate plans to fully launch the eCedi, given the central bank's more pressing need to prioritize economic stabilization. https://www.bog.gov.gh/wp-content/uploads/2024/10/The-eCedi-Report-221024.pdf
#Fintech#CBDC#Ghana#G+D#Offline#DFC
·bog.gov.gh·
Bank of Ghana eCedi CBDC pilot project report
The Bank of Japan’s Third CBDC Forum Plenary Meeting
The Bank of Japan’s Third CBDC Forum Plenary Meeting
Medium published an English language summary by Norbert Gehrke of the October 17, 2024 meeting of the Bank of Japan's (BOJ's) CBDC Forum Plenary. There have been three such meetings, the last one being in January 2024. The BOJ is conducting proof-of-concept (PoC) experiments in stages to verify the technical feasibility of CBDC. Currently, the BOJ's experiments are focusing on performance, scalability, and privacy considerations. The system is designed to avoid handling personal information within the ledger management section, to ensure that user information and transaction details remain confidential.
#CBDC#Fintech#DFC
·medium.com·
The Bank of Japan’s Third CBDC Forum Plenary Meeting
Norges Bank on Track to Deliver CBDC Recommendation in 2025
Norges Bank on Track to Deliver CBDC Recommendation in 2025
Norges Bank Deputy Governor Pal Longva says that the central bank remains on track to finalize a recommendation in 2025 on whether it should introduce a central bank digital currency (CBDC). He said there’s “no urgency” to accelerate the decision-making process, which is looking at both retail and wholesale versions, with increasing weight being put on the latter. Longva’s remarks come less than a month before a November 15, 2024 deadline for a government task force to submit a report on ensuring safe and simple payments.
#CBDC#Fintech#CryptoAssets#DFC
·bloomberg.com·
Norges Bank on Track to Deliver CBDC Recommendation in 2025
Conducted trials and experiments with the Trigger Solution
Conducted trials and experiments with the Trigger Solution
As part of the Eurosystem exploratory work to test new technologies for the settlement of wholesale transactions in central bank money, from May to November 2024, Eligible Market Participants and Eligible Market DLT Operators will have the opportunity to explore the interoperability solution(s) of their choice offered by the Eurosystem. The Deutsche Bundesbank (BuBa) Trigger Solution is one of these three available solutions. It links DLT platforms operated by the market with the traditional Eurosystem payment system (TARGET), thus enabling the direct settlement of DLT-based wholesale transactions on participants’ existing RTGS accounts in central bank money. The exploratory work comprises both trials in the participants’ production systems and experiments in the test environments. The BuBa maintains a list of all such use-case experiments here.
#Fintech#CBDC#wCBDC#Eurozone#Settlement#Tokenization#ECB#DFC
·bundesbank.de·
Conducted trials and experiments with the Trigger Solution
Deutsche Börse Group at the ECB wCBDC trials
Deutsche Börse Group at the ECB wCBDC trials
In 2024, the ECB invited market participants to test how new technologies like distributed-ledger technologies (DLT) would work for central bank money settlement. The so-called ECB trials and experiments are aimed at exploring the potential of digital payments targeting a wholesale central bank digital currency (CBDC). Together with leading institutions, infrastructures and fintech businesses, Deutsche Börse Group contributes to this transformative endeavor with its Clearstream and Eurex Clearing businesses. The Deutsche Börse maintains a list of all such use-case experiments here.
#Fintech#CBDC#wCBDC#Settlement#Tokenization#Eurozone#ECB#DFC
·deutsche-boerse.com·
Deutsche Börse Group at the ECB wCBDC trials
Banco do Brasil calls for new Drex project participants
Banco do Brasil calls for new Drex project participants
Banco Central do Brasil (BCB) is calling for new companies to participate in its Drex wholesale central bank digital currency (CBDC) project aimed at the tokenization of the Brazilian financial system. There is no initial limitation on the number of business cases that can be selected. The number of selected proposals will be determined on the set of applications received and considering the central bank’s technical and operational capacity.
#CBDC#Fintech#Brazil#wCBDC#Tokenization#DFC
·bcb.gov.br·
Banco do Brasil calls for new Drex project participants
Russia outlines proposal for BRICS DLT cross border payment system
Russia outlines proposal for BRICS DLT cross border payment system
Russia's Ministry of Finance published a proposal to develop a distributed ledger technology (DLT) based cross-border payment infrastructure that serves the interests of the BRICs countries (Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates). The BRICS Cross-Border Payment Initiative (BCBP) project is aimed at circumventing the U.S. dollar dominated global financial system, and sanction-proofing member countries. The report was co-authored by the Bank of Russia and Yakov & Partners, as Russia prepares to host leaders for the annual BRICS summit, in Kazan from October 22 to 24. https://minfin.gov.ru/common/upload/press_center/2024/10/BRICS_Research_on_IMFS_20241008.pdf https://pdfupload.io/docs/e1231f66
#Fintech#CBDC#CrossBorder#Blockchain#DLT#Russia#BRICS#Payments#wCBDC#DFC
·ledgerinsights.com·
Russia outlines proposal for BRICS DLT cross border payment system
PBOC update on the digital RMB pilot
PBOC update on the digital RMB pilot
Mu Changchun, Director of the Digital Currency Institute of the People's Bank of China (PBOC), provided an update on the digital renminbi (RMB) pilot. As of the end of July 2024, there were 180 million personal digital RMB wallets, and the cumulative transaction amount was 7.3 trillion yuan, including high-value securities and trade transactions.
As of the end of July 2024, the digital RMB App had opened a total of 180 million personal wallets, and the cumulative transaction amount in the pilot area was 7.3 trillion yuan.
#Fintech#CBDC#DFC
·finance.sina.com.cn·
PBOC update on the digital RMB pilot
From Central Banks to Governments and Standards: CBDC Governance in Canada
From Central Banks to Governments and Standards: CBDC Governance in Canada
The Centre for International Governance Innovation (CIGI) published a paper that explores the democratic governance required to make an informed decision on whether to issue a CBDC and, if one is to be issued, how to develop and implement it responsibly. It reveals a disconnect in Canadian CBDC discussions: while the government is responsible for the decision to issue such a currency, political engagement on the topic has been limited. Policy recommendations aimed at fostering democratic oversight, public engagement and the protection of rights in light of the potential development of a digital Canadian dollar are provided. For example, the paper suggests that Canada could leverage existing collaborative initiatives, such as the Canadian Digital Regulators Forum, to create a more comprehensive and inclusive CBDC governance framework.
#Fintech#CBDC#CryptoAssets#DFC
·cigionline.org·
From Central Banks to Governments and Standards: CBDC Governance in Canada
Eswatini digital lilangeni design paper
Eswatini digital lilangeni design paper
The Central Bank of Eswatini (CBE) published a paper co-written with Giesecke+Devrient (G+D) on the design characteristics of a potential domestic retail central bank digital currency (CBDC). It also reported on proof of concept (POC) tests of online and offline payment use cases involving selected CBE staff members. A digital lilangeni would be fully interoperability with the existing payment methods and wholesale and retail infrastructures, and be available 24/7/365 in (near) real-time manner. Also it would be unremunerated, as it will be primarily aimed to be a means of payment and not a savings vehicle. Although it would not be run on a distributed ledger technology (DLT) platform, it would be built on a distributed database, operated and permissioned by the CBE.
#Fintech#CBDC#Eswatini#G+D#DFC
·centralbank.org.sz·
Eswatini digital lilangeni design paper
ECB DLT settlement trials: Helaba’s WIBank issues registered bond on public blockchain
ECB DLT settlement trials: Helaba’s WIBank issues registered bond on public blockchain
Wirtschafts und Infrastrukturbank Hessen (WIBank), the Helaba owned German development bank, issued a registered bond on a public blockchain. It was settled in a delivery versus payment transaction (DvP) using the Bundesbank’s Trigger solution, which initiates settlement on the TARGET2 payment system. The transaction was part of the Eurosystem’s wholesale DLT settlement trials.
Wirtschafts und Infrastrukturbank Hessen (WIBank), the Helaba owned German development bank, issued a registered bond on a public blockchain. It was settled in a delivery versus payment transaction (DvP) using the Bundesbank’s Trigger solution, which initiates settlement on the TARGET2 payment system. The transaction was part of the Eurosystem’s wholesale DLT settlement trials.
#Fintech#Blockchain#Settlement#CBDC#wCBDC#Tokenization#Eurozone#ECB#DFC
·ledgerinsights.com·
ECB DLT settlement trials: Helaba’s WIBank issues registered bond on public blockchain
Kyrgyzstan on the Path to Creating a Digital Som
Kyrgyzstan on the Path to Creating a Digital Som
[September 27, 2024] Central Bank Payment News (CBPN) published an article by Aigul Bakesarieva, Head of the Digital Som Project Group, National Bank of the Kyrgyz Republic on central bank digital currency (CBDC) developments at her central bank. On May 25, 2022 the Board of the National Bank launched the digital som concept based on a two-tier retail model. The digital som will be a unique digital token that will be stored in a special digital wallet, with transfers . occurring directly from one digital wallet to another.
Aigul Bakesarieva
#Fintech#CBDC#Kyrgyzstan#DFC
·cbpn.currencyresearch.com·
Kyrgyzstan on the Path to Creating a Digital Som
Euro wholesale CBDC used to settle ABN AMRO digital commercial paper on DLT
Euro wholesale CBDC used to settle ABN AMRO digital commercial paper on DLT
ABN AMRO and Rabobank issued €1.1 million of one-month digital commercial tokenized on the Deutsche Börse Clearstream D7 distributed ledger technology (DLT) based platform. The Luxembourg transaction was settled atomically using a wholesale central bank digital currency (CBDC) issued by the Banque de France, as part of the Eurosystem’s DLT trials for wholesale settlement using central bank money. This is Clearstream‘s 5th use case at the European Central Bank (ECB) trials on the D7 platform.
one month €1.1 million
#Fintech#CBDC#wCBDC#Eurozone#Settlement#Tokenization#ECB#DFC
·ledgerinsights.com·
Euro wholesale CBDC used to settle ABN AMRO digital commercial paper on DLT
Rwandan Central Bank Studying Ways of Issuing Digital Currency
Rwandan Central Bank Studying Ways of Issuing Digital Currency
[August 22, 2019] The Rwandan central bank is looking into ways it could potentially issue its own digital currency to make the processing of transactions more efficient and to boost economic growth. “There are still concerns about how exactly you convert the entire currency into digital form, how to distribute that and how fast can you process those transactions,” Financial Stability Director-General Peace Masozera Uwase said. “Challenges come in, if technology is down how do you deal with such issues? “We will join in once we are ready.”
#Fintech#CBDC#Rwanda#DFC
·bloomberg.com·
Rwandan Central Bank Studying Ways of Issuing Digital Currency
RBA launches Project Acacia WCBDC assessment
RBA launches Project Acacia WCBDC assessment
[September 18, 2024] The Reserve Bank of Australia (RBA) announced the launch of Project Acacia to build on the lessons from the previous year's central bank digital currency (CBDC) pilot by focusing on opportunities to uplift the efficiency, transparency and resilience of wholesale markets through tokenized money and new settlement infrastructure. Subsequent phases of the project may involve cross-border applications with regional central banks. In October 2024 the RBA and the Digital Finance Cooperative Research Centre, will publish a consultation paper inviting industry engagement. The project is scheduled for completion in the second half of 2025.
#Fintech#CBDC#wCBDC#Tokenization#Australia#DFC
·rba.gov.au·
RBA launches Project Acacia WCBDC assessment
Implications of Central Bank Digital Currency for Monetary Operations
Implications of Central Bank Digital Currency for Monetary Operations
The IMF published a paper that analyzes how the issuance of central bank digital currency (CBDC) could affect monetary operations, which include central banks managing the demand and supply of reserves to achieve a desired stance of monetary policy. The note outlines three scenarios: CBDCs substituting cash, commercial bank deposits, and reserves, with implications varying based on design features and market developments. It discusses how these scenarios influence balance sheets and reserves, potentially drawing short-term interest rates away from the policy target and complicating liquidity forecasting. Furthermore, the note shows how central banks could calibrate monetary operations such as engaging in a fine-tuning operation and provide additional reserves on demand to ensure that central banks can maintain their monetary policy stance. Finally, careful design of CBDCs, such as setting criteria for access, holding quantity, and remuneration, can mitigate adverse effects on monetary operations.
#CBDC#MonetaryPolicy#Fintech#IMF#DFC
·imf.org·
Implications of Central Bank Digital Currency for Monetary Operations
Digital Payments: A Framework for Inclusive Design
Digital Payments: A Framework for Inclusive Design
The Bank of Canada (BoC) published a paper how digital payments can be made more cognitively accessible, focusing on removing cognitive barriers present in many digital interfaces and products. It proposes an inclusive approach since involving people with cognitive disabilities in design, testing, and refinement is crucial. The proposed framework centers on system learnability and user workload as the two key measures of cognitive accessibility in digital payment and banking interfaces. A prototype interface is developed and tested for voice payments, which successfully demonstrates that the framework provides an effective iterative design approach to enhance cognitive accessibility and usability.
#Fintech#CBDC#Inclusion#Canada#DFC
·bankofcanada.ca·
Digital Payments: A Framework for Inclusive Design
BoE wants to ensure tokenized wholesale transactions use central bank money
BoE wants to ensure tokenized wholesale transactions use central bank money
Bank of England (BoE) Executive Director of Financial Market Infrastructure Sasha Mills outlined the need for tokenized wholesale transactions to be settled in central bank money. “If central bank money is unable to interact with new technologies, there could be a risk of high value wholesale settlement activity moving away from central bank money to private settlement assets, weakening financial stability." Options include the use of the BoE's omnibus account facility, extending real-time gross settlement (RTGS) system hours, and wholesale CBDC. https://www.bankofengland.co.uk/speech/2024/october/sasha-mills-keynote-speech-at-the-digital-assets-week
#Fintech#CBDC#wCBDC#sCBDC#Tokenization#RTGS#UnitedKingdom#DFC
·ledgerinsights.com·
BoE wants to ensure tokenized wholesale transactions use central bank money
Brazil tests DeFi elements, compatibility in Drex CBDC pilot
Brazil tests DeFi elements, compatibility in Drex CBDC pilot
Banco Central do Brasil (BCB) is incorporating decentralized finance (DeFi) principles into ongoing experiments toward developing ecosystems that use "synthetic” central bank digital currency (CBDC) as payment instruments. Digital asset transactions would be settled in "Drex" wholesale CBDC issued by the BCB within the distributed ledger technology (DLT) Drex Platform. The BCB also plans to speed up its Open Finance tokenization efforts and bring decentralized finance (DeFi) into the regulatory perimeter. https://www.bcb.gov.br/conteudo/home-ptbr/TextosApresentacoes/Ap_RCN_Brunnermeier_3_10_24.pdf https://www.youtube.com/watch?v=x27Mz_CdwtI
#Fintech#CBDC#Brazil#wCBDC#Tokenization#DeFi#DLT#DFC
·cointelegraph.com·
Brazil tests DeFi elements, compatibility in Drex CBDC pilot
Payala offline digital currency platform
Payala offline digital currency platform
Payala is cryptographically secure digital payment technology smartcard-based digital payments ecosystem that provides users with a multi-currency digital wallet that is resilient highly resistant to cyberattack and operates when offline for business-to-customer, government-to-populace, and peer-to-peer transactions. The platform has been successfully field-tested and utilized in the Pacific region in an austere, low infrastructure environment. https://patents.google.com/patent/US10885519B1/en?q=(mautinoa)&oq=mautinoa
#Fintech#CBDC#Payments#Offline#DFC
·payala.com·
Payala offline digital currency platform
Positioning CBDC in the Payments Landscape
Positioning CBDC in the Payments Landscape
The IMF published a paper that proposes a framework for comparing retail central bank digital currency (CBDC) with fast payment systems (FPSs) and e-money systems from a payments perspective. A jurisdiction’s evaluation will be dependent on the distinct features and capacity of its current, and emerging, financial landscape. A landscape review is an important tool for central banks when assessing how policy objectives are being achieved today, and if necessary pre-conditions for new systems are in place, or could be established in future. Authorities’ capacity and capability to not only implement but supervise and regulate any system will be important. Any new system will have non-negligible costs, and different systems will potentially have different implications for the distribution of costs between the public and private sectors. Furthermore, a jurisdiction’s mandate and ability to apply their powers around payments may ultimately determine how well any system can fulfill its objectives. Given the early stage of CBDC development, no singular strategy exists in the context of the questions put forward. While central banks will make choices unique to their circumstances, it remains important for central banks to establish a strategy that allows them at minimum to monitor trends and core benefits of multiple solutions as developments occur to allow them to plan, adapt, and drive developments in their payments landscape.
#Fintech#CBDC#FastPayments#eMoney#IMF#DFC
·imf.org·
Positioning CBDC in the Payments Landscape
Boerse Stuttgart tests tokenized security settlement in ECB wholesale DLT trials
Boerse Stuttgart tests tokenized security settlement in ECB wholesale DLT trials

As part of the European Central Bank's (ECB) explorations, Boerse Stuttgart and six German banks tested the settlement of exchange transactions with blockchain-based securities against central bank money for the first time. The settlement solution was linked to the Deutsche Bundesbank's trigger solution and thus to the traditional euro payment system. The tests showed that the settlement processes can be mapped automatically, step by step and directly between the trading participants – efficiently, securely and without counterparty risk. The settlement time was reduced from two days to just a few minutes. https://group.boerse-stuttgart.com/media/li2dfavi/241001-mr-ecb-blockchain-tests.pdf

#Fintech#CBDC#wCBDC#Blockchain#Settlement#Eurozone#Tokenization#DLT#ECB#DFC
·ledgerinsights.com·
Boerse Stuttgart tests tokenized security settlement in ECB wholesale DLT trials
Anchoring UK Retail Digital Money
Anchoring UK Retail Digital Money
arXiv published a paper by Barclays staff that questions the need for a digital pound to preserve the singleness of money. It makes the case that singleness can be achieved by combining (i) on-demand interoperability between issuers and forms of private money, (ii) settlement finality in wholesale central bank money, and (iii) robust prudent regulations and effective supervision by the Bank of England and the UK Government. The paper concludes that the anchoring of private UK retail digital money is already well supported by all three of the above.
#Fintech#CBDC#UnitedKingdom#DFC
·arxiv.org·
Anchoring UK Retail Digital Money
ADB looking to implement digital currency platform
ADB looking to implement digital currency platform
The Asian Development Bank (ADB) is looking is looking for a service partner to implement a digital currency platform with both online and offline capabilities. This platform will support financial inclusion in remote areas with limited internet access and offer an alternative payment method for various users. The project will focus on deploying a modular, "token-based" architecture with programmable infrastructure to facilitate peer-to-peer transactions, strengthen financial resilience, and promote innovation across sectors. The outcome of this project will be an ADB-owned digital asset that can be utilized across its member countries.
#Fintech#CBDC#ADB#DFC
·adb.org·
ADB looking to implement digital currency platform
A digital euro for the people
A digital euro for the people
"A June 2024 paper on the digital euro from the Veblen Institute and Positive Money criticizes the current direction of the digital euro, saying it falls short of its potential. The paper, “a digital euro for the people”, argues that the European Central Bank (ECB) has “heeded to the bank lobby” and baked their interests into the design of the digital euro. Neither organization is a fan of commercial banks, so they are unhappy about the potential dependence on them as digital euro intermediaries. They would prefer to see a bigger role for the public sector and non profits, highlighting that the current wording does not rule this out." [https://www.ledgerinsights.com/digital-euro-eurozone-central-banks-have-option-of-distributing-cbdc-directly/]
#Fintech#CBDC#Eurozone#DFC
·positivemoney.org·
A digital euro for the people
Consumer demand for CBDC as a means of payment
Consumer demand for CBDC as a means of payment
The European Central Bank (ECB) published an article analyzes payment survey data to arrive at a framework for understanding the role of adoption frictions and design strategies in shaping central bank digital currency (CBDC) demand. The survey spanned 17 euro area countries with over 40,000 respondents. It included a payment diary, together with a questionnaire asking respondents to rank different payment instruments according to their most important attributes. The analytic results show that, while consumers may initially prefer to use more traditional payment methods, a design tailored to their specific needs could significantly increase CBDC uptake. Raising awareness and capitalising on network effects could also boost demand for CBDC.
#Fintech#CBDC#ECB#DFC
·ecb.europa.eu·
Consumer demand for CBDC as a means of payment
Retail CBDC Motivations, Opportunities, and Mistakes
Retail CBDC Motivations, Opportunities, and Mistakes
The debate about how retail CBDC would be designed and implemented has led to many proposals, which have sparked considerable debate about business models, regulatory frameworks, and the socio-technical role of money in general. This paper presents a critical analysis of the existing proposals. It examines their motivations and themes, as well as their underlying assumptions. The paper also offer a reflection of the opportunity that retail CBDC represents and suggest a way forward in furtherance of the public interest.
#Fintech#CBDC#DFC
·arxiv.org·
Retail CBDC Motivations, Opportunities, and Mistakes