A paper published by the Munich Personal RePEc Archive has carried out secondary research on Africa’s adoption of CBDCs.

Artificial Intelligence (AI) roared into the public consciousness in 2023. Its widespread use and, more importantly, its potential have become visible to all, not just the small specialist user community that has been working on it for years. Clearly, AI is of great interest to central banks from the policy makers through the cash issue department.

Bancomat AB was registered in 1968 in Sweden, and it is the second oldest ATM operator in the world. It was incorporated in 2010 and is owned by Danske bank, Nordea, Handelsbanken, SEB, Swedbank and some savings banks.

Mastercard’s CFO, speaking recently at a UBS conference, has raised issues with India’s Unified Payment Interface (UPI) system. Describing it as ‘fantastic at many levels’, he also said it was an ‘incredibly painful experience’ for its ecosystem participants.

Geldmaat spoke at the ATMIA summit following on directly after the Dutch National Bank. It described how it came into being and the challenges it faces.

Two recent pieces address the usefulness and role of CBDCs. One explores the theoretical benefits of a CBDC in a high inflation environment, the other the impact of a CBDC if a loss of confidence in the banking system leads to a run on the banks.

An International Monetary Fund Financial Access Survey has confirmed that Ugandan banks are switching their spending to digital channels and away from branches and ATMs. There has been an exponential growth in mobile money services.

The Bank for International Settlements (BIS) has used decentralised finance (DeFi) technology concepts on a public blockchain to trade and settle hypothetical euro, Swiss franc and Singapore dollar wholesale CBDCs across borders between simulated financial institutions.

As noted in the summary of the recent Emerging Market and Europe ATM and Cash Summit in Dublin, the focus was on understanding the future of ATMs in a changing cash environment. As such there was a strong ‘Future of Cash’ feel to the agenda alongside more technical ATM perspectives and topics.

At the recent ATMIA Emerging Markets and Europe ATM and Cash Summit, the Dutch National Bank (DNB) presented on access to cash.

Moody’s Investor Service has published a report on ‘Decentralised Finance and Digital Assets’. In it, it has raised concerns that the Aadhaar identification system, which is based on biometric technologies, is unreliable due to India’s hot and humid conditions, resulting in ‘service denials’.

The Reserve Bank of Atlanta has made some observations about the Merchant Risk Council’s 2023 Global Ecommerce Payments and Fraud Report.

The Emerging Market and Europe ATM and Cash Summit in Dublin focused on the future role of ATMs in a changing world. In addition to the keynote speech by the Dutch National Bank, supported by a Geldmaat presentation, Bancomat from Sweden, LINK from the UK and the ECB also covered the changing role of cash.

The International Mint Industry Association (IMIA) has issued a position paper on the European Commission’s (EC) draft regulations on the legal tender of euro banknotes and coins. The paper also refers to the EC’s proposals about a possible digital euro. Although supportive of the initiative, the IMIA highlights a number of concerns.

Australia’s fifth largest bank, Macquarie Bank, has announced that from November 2024 it will no longer handle cash and will also end cheques.

The Centre for Economic Policy Research (CEPR) has published a paper questioning whether the design of the digital euro could already be undermining its chances of success.

The Future of Cash conference typically attracts some 120 participants from central and commercial banks, CIT and cash management companies, academics and other cash cycle stakeholders. The 2023 event takes place 6-8 November in Istanbul.

The Reserve Bank of Australia (RBA) has been researching CBDCs. Its latest work found legal, regulatory, technical and operation issues that suggest an early launch of a CBDC is unlikely.

New Jersey, in the US, has made a law limiting surcharges applied by merchants on consumers who prefer to pay by card rather than by cash.

As noted in another article this month, the CBDC Conference took place in Istanbul 12-14 September. This article reports almost entirely on the central bank perspective on CBDCs, particularly the use cases justifying their use.