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The Bank for International Settlements (BIS) published a paper that uses a structural model of consumer demand and supply to understand the main drivers of adoption of smartphones in emerging markets. It finds that the most important factors are improvements in quality and changes in the income distribution of the population. A 10% expansion in the size of the smartphone market can be achieved by reducing the value added tax by 9 percentage points. The same adoption target can also be achieved by providing lower-income individuals with a targeted subsidy for smartphones.

The European Central Bank (ECB) published a paper that discusses the potential impact of retail CBDC introduction on monetary policy implementation if it leads to a decrease in commercial bank deposits. Should this happen, bank holdings of central bank reserve holdings might shrink. However, the paper argues that uncertainty as to the timing and extent of any conversions of deposits into CBDC might prompt banks to scale up their demand for central bank reserves in order to hold larger precautionary buffers. Consequently, central banks might need to adjust their reserve supply and other features of their monetary policy implementation. In any case, the paper suggests CBDC design features could mitigate the risk of negative consequences for monetary policy implementation.

The IMF published a paper that argues that successful CBDC adoption hinges not only on technical readiness and operational robustness, but also on strategic policy and design choices that target end-user and intermediary involvement from the outset. Central banks cannot take it for granted that CBDC, once launched, will be adopted and scaled up easily. The paper proposes a "REDI" framework that central banks can use to prepare for CBDC adoption comprised of (i) regulatory strategies, (ii) education and communication initiatives, (iii) design and deployment choices, and (iv) incentive mechanisms. The paper also makes several concrete recommendations including: -Early engagement with end-users focusing on identifying their needs and pain points, as well as social and cultural factors that influence their financial behavior. -Monetary and non-monetary incentives to encourage intermediary participation, including exclusivity agreements, subsidies for setup costs, and allowing for CBDC data monetization or charging for value-added services. -End-user incentives including sign-up bonuses, airdrops or lotteries upon onboarding, and once onboarded, usage incentives, such as cash-back offers and discounts on CBDC transactions. Incentives targeted specifically to merchants could include subsidies for setup costs, reduced transaction fees, tax exemptions, or volume-based rewards. -Implementing selected use cases (such as P2P, G2P or B2P payments) may help generate initial momentum (see also SODA's "test and deploy" implementation framework).

"An important motivating factor in the development of retail CBDC is the decline of the popularity of central bank money for retail purchases and the increasing use of digital money created by the private sector for such purposes. 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. Here, we present a critical analysis of the existing proposals. We examine their motivations and themes, as well as their underlying assumptions. We also offer a reflection of the opportunity that retail CBDC represents and suggest a way forward in furtherance of the public interest."

Cumulative e-CNY transaction volumes reached RMB 6.6 trillion ($910 billion) through to May 2024 (7.3 times year-over-year growth).

Tether is launched Alloy (aUSD₮), a stablecoin pegged to the U.S. dollar overcollateralized by Tether Gold (XAU₮). Users can mint aUSD₮ by depositing XAU₮ as collateral through a process managed by Ethereum-compatible smart contracts. The aUSD₮ smart contract ensures transparency by keeping track of all collateral and minted tokens, using price oracles to constantly evaluate the Mint to Value (MTV) ratio.

Bitcoin is trading below $60,000 for the first time since early May as the MtGox exchange announced that it will begin distributing approximately $9 billion worth of the cryptocurrency and $50 million of bitcoin cash to its long-suffering creditors. The defunct Tokyo-based platform, once the largest spot bitcoin exchange in the world, shut down in 2014 after a series of hacks. Of the 950,000 bitcoins lost, approximately 140,000 were recovered after MtGox declared bankruptcy, leaving thousands of creditors around the world stranded. Nine years later, authorities identified the hackers, with two Russian nationals charged by the U.S. Department of Justice for conspiring to launder around 647,000 bitcoins from the exchange.

The Bank for International Settlements (BIS) published a paper on the insights and lessons learned from a range of fast payment systems (FPS). Over 100 jurisdictions worldwide, including 15 jurisdictions in Latin America, have implemented FPS. The first, overview chapter draws out general insights from experiences in the Americas, such as on the impact of fast payments on financial inclusion, the role of central banks and domestic and cross-border interoperability. The next chapter looks in greater depth at Pix in Brazil, and its complementarities with other means of payment. A further chapter dives into the experiences of SINPE Móvil in Costa Rica, including the impact on banks. The final chapter explores the experience of the Unified Payments Interface (UPI) in India.

The Riksbank considers it necessary to increase the possibility of making payments even in the event of major disruptions in data communication. Therefore, card payments should be possible even without functioning data communication, i.e. offline. Hence, the Riksbank will collaborate with the private and public actors concerned, including card network providers, card acquirers and retailers, to achieve a common view and identify measures. The Riksbank considers the technical conditions for offline payments already favorable, but issues to be resolved around administrative processes, how abuse of offline payments can be curbed and who should bear the liquidity and credit risk arising from an offline payment. The Riksbank's objective is that, by July 1, 2026, it shall be possible to make card payments offline for the purchase of essential goods in the event of disruptions lasting up to 7 days. The possibility shall apply to all those over the age of 18 who have a card with one of the banks covered by the Riksbank's regulations.