“Central banks are considering how retail central bank digital currencies (CBDCs) may help support financial inclusion. While they are not a magic bullet, central banks see CBDC as a further tool to promote financial inclusion if this goal features prominently in the design from the get-go. In particular, central banks are considering design options around promoting innovation in the two-tiered financial system (eg allowing for novel non-bank payment service providers), offering a robust and low-cost public sector technological basis (with novel interfaces and offline payments), facilitating enrolment and education (via simplified due diligence and electronic know your customer) and fostering interoperability (both domestically and across borders). Together, these features can address a range of existing barriers to financial inclusion.”

“The Depository Trust & Clearing Corporation (DTCC) said on Tuesday that it is set to develop a prototype of how a central bank digital currency (CBDC) might work in the US in practice.  The corporation, which provides post-trade market infrastructure for the financial services industry, said in a press release that the model will use distributed ledger technology (DLT) and measure the benefits of a CBDC.”

“South Africa has taken another step closer to implementing its central bank digital currency (CBDC) as the South African Reserve Bank (SARB) concludes a technical proof-of-concept for the project. The project titled Project Khokha 2 (PK2) is the second phase of SARB’s Project Khokha (PK1), launched in 2018. It experimented with distributed ledger technology (DLT) for interbank payments‘ settlement, successfully replicating the banks’ “SAMOS” real-time gross settlement system.”

“The US secretary of the Treasury Janet Yellen has given a bit more insight into how regulation of digital assets like crypto and central bank digital currencies (CBDCs) could develop. Digital assets have grown explosively, reaching a market cap of $3 trillion last November from $14 billion just five years prior, she said.”

“The Swedish central bank’s digital currency project, a proposed CBDC, known as the e-krona has successfully finished its second phase of trials. According to Riksbank, the nation’s central bank, the asset is now technically ready to be integrated into banking networks and facilitate transactions.  During the second phase of the e-krona pilot project — which began in February 2021 — the CBDC was investigated on the matter of its technical ability to function within the country’s existing digital banking infrastructure. Participating banks included Handelsbanken and Tietoevry.”

“The future of money is digital. It is estimated that more than 80% of central banks are considering launching a central bank digital currency (CBDC) or have already done so.1  The 2022 PwC CBDC Global Index analyzes and ranks the leading retail and wholesale CBDC projects. The Index evaluates the current stage of CBDC project development also taking into account central bank opinion and public interest.”

“If the European Union issued a digital euro, it would need to establish laws in areas such as privacy and anti-money laundering, the European Commission, the EU’s executive branch, said in a consultation published on Tuesday. The call for ideas , which is seen as the first step toward legislation from Brussels on the topic, is being made even before any formal decision has been taken on whether to issue a digital currency in the first place.”

“Jamaica’s Central Bank’s decision to pursue its own digital currency is as much an effort to reach out to the relative unbanked segment of the population as it is to continue the Western Caribbean country’s effort to digitise its economy. The Sunday Business Guardian reached out to the Bank of Jamaica’s deputy governor and Central Bank Digital Currency (CBDC) implementation committee chair Natalie Haynes to discuss the Jam -Dex’s introduction to the Jamaican population. She explained the development of the digital currency served a dual purpose.”

“The Digital Dollar Project (DDP) , a nonprofit leading the exploration of central bank digital currency (CBDC) in the United States (U.S.), today applauded President Joseph R. Biden’s recent Executive Order directing a whole-of-government effort to understand and evaluate the benefits and risks of a U.S. CBDC for individuals and businesses alike.”

“Low smartphone penetration could be the biggest hindrance to digital shilling, the Central Bank of Kenya (CBK) has claimed. With less than half the population having access to 4G smartphones, the central bank digital currency (CBDC) could further isolate those that lack access to banking services currently, the regulator says.”

“In February 2022, the Bank of England and the Massachusetts Institute of Technology (MIT) agreed to collaborate on a twelve-month research project on Central Bank Digital Currency (CBDC). The Bank will partner with the MIT Media Lab’s Digital Currency Initiative (DCI) team to explore potential technical challenges, trade-offs, opportunities and risks involved in designing a CBDC system. The collaboration forms part of the Bank’s wider ‘research and exploration’ into CBDC , and will be focused on exploration and experimentation of potential technology approaches.”

“The Bank of Canada has partnered with the Massachusetts Institute of Technology (MIT) to work on a 12-month research project focused on the design of a Central Bank Digital Currency. According to a Wednesday announcement, the bank will work alongside the MIT Media Labs’ Digital Currency Initiative (DCI) team to examine how “advanced technologies could affect the potential design of a CBDC.””

“The central People’s Bank of China (PBoC) has added new functionality to its pilot digital yuan app – but it appears that some citizens are already trying to commit crimes using the new token, and have attempted to use it to launder money. Per IT Home, the PBoC’s app, which debuted in 11 cities and regions earlier this year , is set for a facelift – its first-ever – in the coming days, with an update that will respond to Apple’s next iOS update.”

“The Central Bank of Brazil has chosen nine partners to help develop a digital real, Brazil’s central bank digital currency (CBDC). Among the partners are crypto exchange Mercado Bitcoin, Santander Brasil, Itaú Unibanco and Aave, a decentralized finance (DeFi) platform.”

“The Bank of Israel moved one step closer to the possible issuance of a digital shekel, saying on Wednesday it was unlikely there would be a significant erosion of the banking system’s business results. Bank of Israel Governor Amir Yaron in November said the central bank was accelerating its study, research and preparation for the possible issuance of a digital shekel aimed at creating a more efficient payments system.”

“Despite the high expectations and hype around the Central Bank of Nigeria ’s digital currency- the eNaira- major retailers and vendors in the country are yet to adopt it over four months after launch. Following months of publicity by the CBN, the eNaira was unveiled by President Muhammadu Buhari on October 25, 2021.”

“Sweden’s Riksbank has introduced the completion of the Phase 2 technical trials for its CBDC after beginning the venture within the spring of 2017. During Phase 2, points similar to offline operate, efficiency, and integration with exterior individuals are examined and conclusions from this part can be printed in 2022.”

“Sweden’s central bank has extended its contract with Accenture as supplier for its CBDC experimental project for a further year following the completion of Phase 2 technical trials. With cash usage dwindling in Sweden, the Riksbank started a project in the spring of 2017 to examine the scope for the creation of a CBDC that could ensure that the general public will still have access to a state-guaranteed means of payment.”

“The Central Bank of Kenya (CBK) has issued a discussion paper assessing the applicability of a central bank digital currency (CBDC) in the country and seeking comment from the public on the technology. The move indicates that the country is considering adopting the technology but also raises questions on the effectiveness of having a CBDC in a country with a real-time payment system such as mobile money.”

“VTB bank and PSB have conducted the first successful testing of operations with digital rubles issued on the test version of the Bank of Russia’s CBDC platform In order to perform the transfer, VTB has developed a prototype mobile app which enables users to register, open a digital wallet, exchange non-cash rubles from their bank account for digital rubles and send digital rubles to other users on the platform. Testing ended with successful transfers of digital rubles between PSB and VTB clients.”