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RBI Says CBDC Has 5M Users, Can be Phased in Gradually
RBI Says CBDC Has 5M Users, Can be Phased in Gradually
Reserve Bank of India (RBI) Governor Shaktikanta Das says that the retail central bank digital currency (CBDC) pilot has over 5 million users and 16 banks participating. Programmability functionalities are also being tested, and new use cases aimed at testing features such as anonymity and offline availability are proposed to be rolled out gradually. He also said that there should not be in any rush to roll out a system-wide CBDC until a comprehensive understanding of its impact on users, on monetary policy, on the financial system and on the economy. Such understanding would emerge from generation of user data in pilots. https://rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=1456
#Fintech#CBDC#India#DFC
·coindesk.com·
RBI Says CBDC Has 5M Users, Can be Phased in Gradually
Central bank digital currency in small open economies
Central bank digital currency in small open economies
The Latin American Journal of Central Banking published a paper that uses a theoretical model to examine how the introduction of central bank digital currency (CBDC) impacts small open economies. The main results are: (i) CBDC always increases the welfare of financially unconstrained households; however, it increases the welfare of constrained households when the cost of carrying cash is high enough and when the government purchase level is sufficiently low; (ii) CBDC increases the fiscal income by bringing more agents out of the informal economy, improving fiscal sustainability; (iii) CBDC improves the terms of trade as it strengthens the domestic currency.
#Fintech#CBDC#DFC
·sciencedirect.com·
Central bank digital currency in small open economies
Kyrgyz Republic central bank launches digital som ideathon (NBKR)
Kyrgyz Republic central bank launches digital som ideathon (NBKR)

The National Bank of the Kyrgyz Republic (NBKR) launched an ideation aimed at improving the prototype of its digital som central bank digital currency (CBDC). The goal is to ensure technological improvement of existing payment solutions and innovations, and at the testing stage to take into account the interests of citizens, business, government and the financial sector. Key areas of interest include system integration, security, user experience, and international interoperability.

#Fintech#CBDC#Kyrgyzstan#Hackathon#Ideathon#DFC
·nbkr.kg·
Kyrgyz Republic central bank launches digital som ideathon (NBKR)
Case study: Remittances from Europe to India with cross-border CBDC
Case study: Remittances from Europe to India with cross-border CBDC
G+D’s Lars Hupel published a summary of a Giesecke+Devrient (G+D) and UDPN Alliance cross-border payments proof of concept (POC). It involved connecting the Universal Digital Payments Network (UDPN) multilateral global messaging network and G+D’s Filia® retail central bank digital currency (CBDC) platform. The UDPN network comprises a distributed ledger technology (DLT) based application layer where smart contracts can be deployed and called for core UDPN functions (e.g., transfer, swap). The POC implemented payments from hypothetical EUR (running on Filia®) to Indian Rupee (INR) (running on UDPN). This included transfers between end-user wallets, currency conversion, liquidity management, CBDC issuance, identity, and wallet management.
#Fintech#CBDC#CrossBorder#G+D#DFC
·linkedin.com·
Case study: Remittances from Europe to India with cross-border CBDC
Cambodia launches Bakong tourist DLT payment app
Cambodia launches Bakong tourist DLT payment app
The National Bank of Cambodia (NBC) introduced the Bakong Tourists app. By downloading the app and registering with an email, tourists can top up their accounts and use the KHQR code to pay for goods and services, reducing the need for cash and ensuring a seamless experience during their stay. https://www.nbc.gov.kh/english/news_and_events/press_releases_info.php?id=208
#Fintech#Payments#CBDC#Cambodia#DFC
·ledgerinsights.com·
Cambodia launches Bakong tourist DLT payment app
Apple expanding iPhone NFC access to third-party apps
Apple expanding iPhone NFC access to third-party apps
Starting with iOS 18.1, iOS developers will be able to offer near-field communication (NFC) contactless transactions using the secure element (SE) from within their own apps on iPhones, separate from Apple Pay and Apple Wallet. Using the new NFC and SE, application programming interfaces (APIs), developers will be able to offer in-app contactless transactions for in-store payments, car keys, closed-loop transit, corporate badges, student IDs, home keys, hotel keys, merchant loyalty and rewards cards, and event tickets, with government IDs to be supported in the future. The only catch is that developers will need to enter into a commercial agreement with Apple, request the NFC and SE entitlement, and pay the associated fees. This follows a commitment made by Apple to the European Commission in July 2024 to grant European iOS developers similar NFC and SE access to address antitrust charges. Even the new commitment is not fully global in scope. The NFC and SE APIs will only be available to developers in Australia, Brazil, Canada, Japan, New Zealand, the United Kingdom, and the United States, although additional locations are said to follow.
#Fintech#CBDC#Apple#Payments#NFC#DFC
·apple.com·
Apple expanding iPhone NFC access to third-party apps
Sole Jamaican CBDC wallet provider questions JAM-DEX progress
Sole Jamaican CBDC wallet provider questions JAM-DEX progress
According to National Commercial Bank (NCB) Jamaica, the sole commercial bank providing wallets for JAM-DEX, the use of the central bank digital currency (CBDC) has been low. NCB CEO Jamaica Bruce Bowen said this may be linked to the few usage options for the CBDC, along with the process. Merchant adoption has been slow, despite the Bank of Jamaica committing funds earlier in 2024 for a technology provider to upgrade 10,000 of the more modern point of sale (POS) machines to support JAM-DEX. Also, Bowen noted that usage of NCB's Lynk digital wallet has been strong, few users are converting their bank deposit balances to JAM-DEX. https://radiojamaicanewsonline.com/business/ncb-says-use-of-jam-dex-low
#Fintech#CBDC#Jamaica#DFC
·ledgerinsights.com·
Sole Jamaican CBDC wallet provider questions JAM-DEX progress
Assumptions to Avoid when Designing Retail CBDC Systems
Assumptions to Avoid when Designing Retail CBDC Systems
Crunchfish published a paper that argues that virtual secure elements (SEs) provide better security to retail CBDC offline platforms than hardware-based SEs. It says that hardware-based SEs are less secure due to the separation from payment app that breaks the chain of trust between the two communicating endpoints. This can result in potential attacks by replacing either endpoint with malicious ones or tampering with them and modifying their behavior during runtime. As the hardware-based SE does not have full visibility of the payment app and the mobile operating system (OS), it cannot determine the identity of the app or whether the app has been tampered with, and must “blindly” trust the OS and the app. A trusted client application for offline payments implemented in an app-integrated virtual secure element, on the other hand, has no trust gap issues and runs securely even on rooted/jailbroken mobile devices.
#Fintech#CBDC#Offline#Crunchfish#DFC
·crunchfish.com·
Assumptions to Avoid when Designing Retail CBDC Systems
CBDC can gain further adoption with eSIM (G+D)
CBDC can gain further adoption with eSIM (G+D)

G+D's Lars Hupel writes that eSIMs replace traditional, removable SIM cards with an embedded SIM chip directly on the device. SIM cards no longer need to be physically replaced for an update. Instead, a new eSIM can be simply downloaded. Starting with the iPhone 14 in 2022, Apple has stopped shipping physical SIM trays in the US. New models use eSIM only. By 2030, the eSIM adoption rate will reach 80% in Latin America, Southeast Asia and the Eurozone, while Middle East and North Africa is expected to reach 70%. Secure central bank digital currency (CBDC) wallets could be run easily on eSIMs. https://www.gi-de.com/en/spotlight/digital-security/time-to-adopt-the-esim

#Fintech#CBDC#Offline#SIM#eSIM#DFC
·linkedin.com·
CBDC can gain further adoption with eSIM (G+D)
Central Banks, Secure Elements And Digital Currency
Central Banks, Secure Elements And Digital Currency
David Birch writes that an offline central bank digital currency (CBDC) is essential for a cash alternative, especially in areas with poor internet connectivity or during emergencies. The article proposes a shift in terminology from online/offline to local/remote and hub/edge transactions. It argues that all transactions should be device-to-device (edge) transactions, regardless of whether the devices are nearby or distant. This would create a more scalable and resilient system, similar to cash. While security concerns exist for a device-to-device system, the article suggests potential solutions like transaction limits, auditing, and field-upgradable security algorithms.
#Fintech#CBDC#Offline#DFC
·dgwbirch.substack.com·
Central Banks, Secure Elements And Digital Currency
Kyrgyzstan central bank posts CBDC-related legislative amendments
Kyrgyzstan central bank posts CBDC-related legislative amendments
The National Bank of the Kyrgyz Republic (NBKR) published a draft of proposed amendments to the country's central banking legislation to firm up the legal status of a digital som central bank digital currency (CBDC). These amendments affect eight key legislative acts, including the Civil Code, Budget Code, Code of Offenses, Tax Code, Law on Consumer Protection, Law on Payment Systems, and Law on Banks and Banking Activity. Public feedback, comments and suggestions must be submitted by September 7, 2024. https://www.nbkr.kg/newsout.jsp?item=31&lang=ENG&material=120922
#Fintech#CBDC#Kyrgyzstan#DFC
·linkedin.com·
Kyrgyzstan central bank posts CBDC-related legislative amendments
Google, Amazon, Walmart seek to join e-rupee pilot
Google, Amazon, Walmart seek to join e-rupee pilot
GooglePay, Walmart-backed PhonePe and AmazonPay, plus Indian fintech firms Cred and Mobikwikare, are reportedly seeking to join the Reserve Bank of India (RBI) e-rupee central bank digital currency (CBDC). Initially, the RBI had permitted only banks to offer e-rupee via their mobile applications, but in April 2024 it said payment firms could also offer e-rupee transactions via their platform once approved by the RBI.
#Fintech#Payments#CBDC#India#DFC
·reuters.com·
Google, Amazon, Walmart seek to join e-rupee pilot
Cambodia’s Bakong digital currency helps address dollarization
Cambodia’s Bakong digital currency helps address dollarization
A key aim of the National Bank of Cambodia's Bakong digital currency payment system, launched in 2020, was to encourage a higher proportion of transactions in the local riel rather than dollars. Cambodia is a heavily dollarized country with roughly 80% of transactions taking place in US dollars. However, during the first half of 2024 the riel was used in 43% of Bakong transactions, versus 34.2% in 2023. One of the key tactics to encourage use of the local currency is to only support cross-border payments using riel. According to Leger Insights, while often described incorrectly as a central bank digital currency (CBDC), "Bakong is closer to a tokenized deposit initiative with the Bakong currency backed by balances at commercial banks".
#Fintech#Cambodia#Payment#CrossBorder#CBDC#DFC
·ledgerinsights.com·
Cambodia’s Bakong digital currency helps address dollarization
BOJ presentation on the future of wholesale payments
BOJ presentation on the future of wholesale payments
The Bank of Japan (BOJ) published an executive summary of a presentation and panel session on the "future of wholesale payments at the FIN/SUM 2024 on March 6, 2024. Three consecutive sessions the course of developments in this area, the emergence of new forms of money, and challenges of the current practice. Of these sessions, the panel discussions brought together business leaders, industry experts, and academics to illustrate the future landscape of the wholesale payments ecosystem.
Bank of Japan Presentation and Panel Session at the FIN/SUM 2024 Executive Summary of "Future of Wholesale Payments"
#Fintech#PaymentSystems#CBDC#wCBDC#Japan#DFC
·boj.or.jp·
BOJ presentation on the future of wholesale payments
Indonesia preps second stage of wholesale CBDC trials
Indonesia preps second stage of wholesale CBDC trials
Bank Indonesia (BI) published its Indonesian Payment System Blueprint (BSPI) 2030, in which it provides an update on its digital rupiah central bank digital currency (CBDC) work. The central bank completed the first of three proof of concept phases CBDC work during the first half of 2024, the basic issuance and redemption of a distributed ledger technology (DLT) based wholesale CBDC . The BI is now readying to start the second phase in which it plans to explore the integration of a wCBDC with a digital securities ledger to test issuing, transferring and redeeming digital securities, conduct central bank operations, and extending the functionality of digital securities, including programmability, composability and tokenization. https://www.bi.go.id/id/publikasi/kajian/Pages/Blueprint-Sistem-Pembayaran-Indonesia-2030.aspx
#Fintech#CBDC#wCBDC#Tokenization#Settlement#Indonesia#DFC
·ledgerinsights.com·
Indonesia preps second stage of wholesale CBDC trials
Central Bank of Azerbaijan holds back on CBDC
Central Bank of Azerbaijan holds back on CBDC
The Central Bank of Azerbaijan (CBA) reportedly has no plans to issue a digital currency (CBDC), as it currently sees no prospects for its successful implementation. Governor Taleh Kazimov cited "challenges related to operations and financial sector stability".
#Fintech#CBDC#Azerbaijan#DFC
·en.trend.az·
Central Bank of Azerbaijan holds back on CBDC
eSIM Management to Digitize Processes
eSIM Management to Digitize Processes
The eSIM ecosystem offers an equivalent level of security and protection to that provided by the removable SIM card. The protocols are based on state-of-the-art cryptographic mechanisms and secure the privacy of the end user. A public key infrastructure (PKI) governed by the Global System for Mobile Communications Association (GSMA) provides a secure authentication of the entities of the ecosystem. Manufacturers or providers of eSIM solutions have to undergo GSMA certification in order to be admitted into the ecosystem.
#Fintech#Offline#G+D#CBDC#DFC
·gi-de.com·
eSIM Management to Digitize Processes
Offline digital euro: ECB seeks input from experts
Offline digital euro: ECB seeks input from experts
The European Central Bank (ECB) is inviting experts in offline payments to participate in conversations to explore options for an offline digital euro as part of its retail central bank digital currency (CBDC) work. It wants to understand the marketplace for using embedded secure elements (eSEs) and embedded SIMs (eSIMs) in user devices. Secure elements are standard-compliant chips that ensure safe data storage embedded in most smartphones and many wearables, typically for payments. eSIMs facilitate user network switches via software updates, instead of swapping physical SIM cards. Both could play roles in offline payment functionality. The experts are to be drawn from original equipment manufacturers (OEMs), mobile network operators (MNOs) and specialized trusted service managers, but none that are participating in any of the ECB public tenders on digital euro components. https://www.ecb.europa.eu/press/intro/news/html/ecb.mipnews240801.en.html
#Fintech#CBDC#Payments#Offline#Eurozone#ECB#DFC
·ledgerinsights.com·
Offline digital euro: ECB seeks input from experts
CBDCs in Latin America and the Caribbean
CBDCs in Latin America and the Caribbean
The Latin American (LATAM) Journal of Central Banking published a paper on central bank digital currencies (CBDCs) in Latin America and the Caribbean, by staff from the Bank for International Settlements (BIS), Central Bank of Colombia, and American Enterprise Institute (AEI). The paper draws heavily from the Committee on Payments and Infrastructures (CPMI) annual survey of central banks regarding interest in, and motivations for, exploring CBDC in their jurisdiction.
#Fintech#CBDC#LATAM#Caribbean#BIS#DFC
·sciencedirect.com·
CBDCs in Latin America and the Caribbean
E-Rupee pilot customers grow to 5 million
E-Rupee pilot customers grow to 5 million
The Reserve Bank of India (RBI) published its annual report on currency and Finance in which it reported that as of June 2024, 5 million users (versus 1.3 million a year earlier) and 0.4 million merchants (versus 0.3 million) were participating in e-Rupee CBDC retail pilot. https://rbi.org.in/Scripts/AnnualPublications.aspx?head=Report%20on%20Currency%20and%20Finance
#Fintech#CBDC#India#DFC
·business-standard.com·
E-Rupee pilot customers grow to 5 million
Byzantine Fault Tolerant consensus with confidential quorum certificate for a Central Bank DLT
Byzantine Fault Tolerant consensus with confidential quorum certificate for a Central Bank DLT
Banca d'Italia published a paper on the FROSTed Byzantine Fault Tolerance (FBFT) protocol, an approach to DLT proof of authority (PoA) validation meant to strengthen the security of the ledger, its tolerance to faults or attacks, and the confidentiality of validators. It combines the practical byzantine fault tolerance (PBFT) algorithm with the flexible round-optimized Schnorr threshold (FROST) signature scheme. The resulting system is an alternative platform for a distributed, resilient transactional system. Operated by a set of trusted actors, distributed at geographic scale, it holds potential for mission-critical applications, such as wholesale and retail CBDC, and asset tokenization schemes.
#Fintech#BFT#DLT#CBDC#Italy#ProofOfAuthority#DFC
·bancaditalia.it·
Byzantine Fault Tolerant consensus with confidential quorum certificate for a Central Bank DLT
Bank of England seeks feedback for wholesale CBDC trials
Bank of England seeks feedback for wholesale CBDC trials
The Bank of England (BOE) published a discussion paper on innovation in money and payments. While it covers payments across the board, it aims to gather feedback for planned wholesale central bank digital currency (CBDC) trials. These will include a synchronization (or "trigger") solution that settles transactions involving assets that are tokenized on distributed ledger technology (DLT) platforms using the real time gross settlement (RTGS) system. The BOE also wants to trial a digital securities transaction in which an end user makes a tokenized deposit payment. Finally, it will test interoperability with global initiatives like the Bank for International Settlements (BIS) Project Agorá for cross-border payments. Comments are due by October 31, 2024. https://www.bankofengland.co.uk/paper/2024/dp/the-boes-approach-to-innovation-in-money-and-payments
#Fintech#CBDC#wCBDC#Settlement#Payments#CrossBorder#UnitedKingdom#DFC
·ledgerinsights.com·
Bank of England seeks feedback for wholesale CBDC trials
People’s Bank of China Files Patent for Digital Currency Wallet | Coin Telegraph
People’s Bank of China Files Patent for Digital Currency Wallet | Coin Telegraph
"The new patent outlines how the proposed digital wallet could be used to track transaction data in coordination with a centralized digital currency issuance registration agency. The wallet would enable multi-signature security and manage digital assets that are encrypted - as existing cryptocurrencies - with private keys. Transaction queries would yield results including the digital currency type, amount, source currency, as well as identification of the source and destination wallets."
#Bitcoin#CBDC#DFC
·cointelegraph.com·
People’s Bank of China Files Patent for Digital Currency Wallet | Coin Telegraph
Bahamas to Introduce Native Cryptocurrency - CoinWire
Bahamas to Introduce Native Cryptocurrency - CoinWire
urrently, the Bahaman archipelago on the east of Florida in the Atlantic Ocean has two fiat currencies, the USD and the Bahamian Dollar, both of which are simultaneously used. While the Bohemian dollar is currently pegged at a 1:1 ratio with the USD, the Bahamas actually do not have its own currency. With the development of a native cryptocurrency, the archipelago could finally have a truly state-owned dollar that would represent its gross domestic product worth 9 billion USD.
#Bitcoin#CBDC#DFC
·coinwire.com·
Bahamas to Introduce Native Cryptocurrency - CoinWire
Digital currency to be introduced, says Bahama's Deputy Minister of Finance | Press Release
Digital currency to be introduced, says Bahama's Deputy Minister of Finance | Press Release
"Stating he hopes Grand Bahama becomes the digital paradise of the region, the Deputy Prime Minister said, “The production of a modern fully digital payment service is the way forward for this era of governance. A digital Bahamian currency is especially important for the many Family Islands as they have seen many commercial banks downsize and pull out of their communities, leaving them without banking services. As an island nation, where transportation can be an inconvenience for many, especially the elderly, and costly, we must offer financial services digitally and securely."
#Bitcoin#CBDC#DFC
·bahamas.gov.bs·
Digital currency to be introduced, says Bahama's Deputy Minister of Finance | Press Release
Bank of Jamaica’s Wynter on the path to inflation targeting - Central Banking
Bank of Jamaica’s Wynter on the path to inflation targeting - Central Banking
"The Bank of Jamaica is beginning to explore the issues related to a central bank-issued virtual currency. There have been talks among some Caribbean countries about launching a regional cryptocurrency. There is no realistic prospect of that at the moment. So a Caribbean cryptocurrency would have to address the common currency issue first. How do you do that when some countries have fixed rates, others have floating rates, and there is a variety of monetary regimes? I am not against discussing it, but it does not seem realistic for the Caribbean as a whole. I do not think cryptocurrencies are a better answer to a common currency than a common currency, and I do not think either of them is practical for the English-speaking Caribbean."
#Bitcoin#CBDC#DFC
·centralbanking.com·
Bank of Jamaica’s Wynter on the path to inflation targeting - Central Banking
Stablecoins Will Do More Than Just Reduce Crypto Price Volatility - CoinDesk
Stablecoins Will Do More Than Just Reduce Crypto Price Volatility - CoinDesk
Ultimately, I think that stablecoins will play an important role in bridging traditional financial markets with the emerging, programmable financial tools enabled by cryptocurrencies. Reducing the friction between the crypto and fiat financial systems will help increase access to new kinds of assets and opportunities, which is critical for projects and companies currently building in the crypto space.
#Bitcoin#CBDC#DFC
·coindesk.com·
Stablecoins Will Do More Than Just Reduce Crypto Price Volatility - CoinDesk