Disco Central Banker
@centralbanker.bsky.social
Central banker. Ex-Banking supervisor.
Building a CBDC
🇪🇺
Building a CBDC
🇪🇺
Just found out that the author is on Bluesky
@yamara.bsky.social i wanted to say that I am a big fan of the set-up of Continuum.
Wishing you the best in your ventures
@yamara.bsky.social i wanted to say that I am a big fan of the set-up of Continuum.
Wishing you the best in your ventures
November 13, 2025 at 9:04 PM
Just found out that the author is on Bluesky
@yamara.bsky.social i wanted to say that I am a big fan of the set-up of Continuum.
Wishing you the best in your ventures
@yamara.bsky.social i wanted to say that I am a big fan of the set-up of Continuum.
Wishing you the best in your ventures
This is why retail CBDCs generally consider they can bear operating costs from earnings of reinvesting reserves but have some (lower) merchant transaction fees to remunerate acquiring PSPs for their investment costs
As you said, this requires some minimum holding and positive interest rates to work
As you said, this requires some minimum holding and positive interest rates to work
November 10, 2025 at 4:09 PM
This is why retail CBDCs generally consider they can bear operating costs from earnings of reinvesting reserves but have some (lower) merchant transaction fees to remunerate acquiring PSPs for their investment costs
As you said, this requires some minimum holding and positive interest rates to work
As you said, this requires some minimum holding and positive interest rates to work
bsky.app/profile/cent...
Shared some thoughts on the prior version here.
Precious « full backing by CBs unremunerated CB reserve » is china approach to systemic emoney issuers (Alipay and WeChat pay).
HOWEVER this work because WeChat pay and Alipay charge merchants +-0.6% on transaction fees.
Shared some thoughts on the prior version here.
Precious « full backing by CBs unremunerated CB reserve » is china approach to systemic emoney issuers (Alipay and WeChat pay).
HOWEVER this work because WeChat pay and Alipay charge merchants +-0.6% on transaction fees.
BoE position comes from a strict application of the PFMIs
If you look closely they speak of systemic stablecoin for payment systems
Principle 9 of the PFMIs recommends settlement in central bank money and if not possible, second best is money backed by central bank money
If you look closely they speak of systemic stablecoin for payment systems
Principle 9 of the PFMIs recommends settlement in central bank money and if not possible, second best is money backed by central bank money
November 10, 2025 at 2:22 PM
bsky.app/profile/cent...
Shared some thoughts on the prior version here.
Precious « full backing by CBs unremunerated CB reserve » is china approach to systemic emoney issuers (Alipay and WeChat pay).
HOWEVER this work because WeChat pay and Alipay charge merchants +-0.6% on transaction fees.
Shared some thoughts on the prior version here.
Precious « full backing by CBs unremunerated CB reserve » is china approach to systemic emoney issuers (Alipay and WeChat pay).
HOWEVER this work because WeChat pay and Alipay charge merchants +-0.6% on transaction fees.
That’s what I say once a year when I launch a new quest for it
November 8, 2025 at 12:12 AM
That’s what I say once a year when I launch a new quest for it
Still hopeful to see one day the rumoured to exist 0.9 version of narcissist.
November 8, 2025 at 12:09 AM
Still hopeful to see one day the rumoured to exist 0.9 version of narcissist.
Wasn’t she the one also with incredible LinkedIn groups? Like subscribed to all the AML/compliance officers pages?
October 28, 2025 at 8:11 PM
Wasn’t she the one also with incredible LinkedIn groups? Like subscribed to all the AML/compliance officers pages?
Interesting thanks
October 18, 2025 at 6:26 PM
Interesting thanks
/12
So while the mistake itself is similar to what happens in TradFi, the impact surface in crypto could be wider without appropriate controls and protocols should monitor for sudden mint of high amounts of accepted assets, and have contingency plans for this kind of situation.
So while the mistake itself is similar to what happens in TradFi, the impact surface in crypto could be wider without appropriate controls and protocols should monitor for sudden mint of high amounts of accepted assets, and have contingency plans for this kind of situation.
October 16, 2025 at 6:52 PM
/12
So while the mistake itself is similar to what happens in TradFi, the impact surface in crypto could be wider without appropriate controls and protocols should monitor for sudden mint of high amounts of accepted assets, and have contingency plans for this kind of situation.
So while the mistake itself is similar to what happens in TradFi, the impact surface in crypto could be wider without appropriate controls and protocols should monitor for sudden mint of high amounts of accepted assets, and have contingency plans for this kind of situation.
11/
They could have used those tokens to buy assets on any DeFi protocol. swapping, borrowing, or providing liquidity, instantly and autonomously.
That could have nuked token prices or triggered cascading liquidations.
They could have used those tokens to buy assets on any DeFi protocol. swapping, borrowing, or providing liquidity, instantly and autonomously.
That could have nuked token prices or triggered cascading liquidations.
October 16, 2025 at 6:52 PM
11/
They could have used those tokens to buy assets on any DeFi protocol. swapping, borrowing, or providing liquidity, instantly and autonomously.
That could have nuked token prices or triggered cascading liquidations.
They could have used those tokens to buy assets on any DeFi protocol. swapping, borrowing, or providing liquidity, instantly and autonomously.
That could have nuked token prices or triggered cascading liquidations.
That means if a bad actor received those mistakenly minted tokens, (or hacked an issuer mint and created stablecoins) they could spend them directly
not waiting for Paxos to settle reserves.
not waiting for Paxos to settle reserves.
October 16, 2025 at 6:52 PM
That means if a bad actor received those mistakenly minted tokens, (or hacked an issuer mint and created stablecoins) they could spend them directly
not waiting for Paxos to settle reserves.
not waiting for Paxos to settle reserves.
9/
But with tokens like PYUSD, things change.
A token is itself a transferable liability of the issuer. In this case, PayPal/Paxos.
You are not paying by asking the issuer to send their reserves to your counterpart. You pay directly with issuer’s liability.
But with tokens like PYUSD, things change.
A token is itself a transferable liability of the issuer. In this case, PayPal/Paxos.
You are not paying by asking the issuer to send their reserves to your counterpart. You pay directly with issuer’s liability.
October 16, 2025 at 6:52 PM
9/
But with tokens like PYUSD, things change.
A token is itself a transferable liability of the issuer. In this case, PayPal/Paxos.
You are not paying by asking the issuer to send their reserves to your counterpart. You pay directly with issuer’s liability.
But with tokens like PYUSD, things change.
A token is itself a transferable liability of the issuer. In this case, PayPal/Paxos.
You are not paying by asking the issuer to send their reserves to your counterpart. You pay directly with issuer’s liability.
8/
As a banking supervisor, I have seen banks send their entire reserves in various currencies to other banks.
Spoiler, it’s almost always when someone makes a mistake shortly after a software update so test your freaking softwares.
As a banking supervisor, I have seen banks send their entire reserves in various currencies to other banks.
Spoiler, it’s almost always when someone makes a mistake shortly after a software update so test your freaking softwares.
October 16, 2025 at 6:52 PM
8/
As a banking supervisor, I have seen banks send their entire reserves in various currencies to other banks.
Spoiler, it’s almost always when someone makes a mistake shortly after a software update so test your freaking softwares.
As a banking supervisor, I have seen banks send their entire reserves in various currencies to other banks.
Spoiler, it’s almost always when someone makes a mistake shortly after a software update so test your freaking softwares.
7/
The similarity:
If the mistaken recipient of funds tries to redeem or transfer reserves, both Paxos and a traditional bank would hit the same wall.
They can only transfer up to the reserves they actually hold.
The similarity:
If the mistaken recipient of funds tries to redeem or transfer reserves, both Paxos and a traditional bank would hit the same wall.
They can only transfer up to the reserves they actually hold.
October 16, 2025 at 6:52 PM
7/
The similarity:
If the mistaken recipient of funds tries to redeem or transfer reserves, both Paxos and a traditional bank would hit the same wall.
They can only transfer up to the reserves they actually hold.
The similarity:
If the mistaken recipient of funds tries to redeem or transfer reserves, both Paxos and a traditional bank would hit the same wall.
They can only transfer up to the reserves they actually hold.
6/
However, there is a systemic risk angle here.
Because while Paxos’s mistake looks like a simple operational error, it exposes one critical similarity with TradFi and one major difference.
However, there is a systemic risk angle here.
Because while Paxos’s mistake looks like a simple operational error, it exposes one critical similarity with TradFi and one major difference.
October 16, 2025 at 6:52 PM
6/
However, there is a systemic risk angle here.
Because while Paxos’s mistake looks like a simple operational error, it exposes one critical similarity with TradFi and one major difference.
However, there is a systemic risk angle here.
Because while Paxos’s mistake looks like a simple operational error, it exposes one critical similarity with TradFi and one major difference.
5/
And some can be big.
You’ve seen the stories: “Person becomes a trillionaire overnight.”
Few years ago, Citi mistakenly credited 81 trillions to a customer balance.
And several employees missed it.
Same category of mistake as Paxos
www.cnbc.com/amp/2025/03/...
And some can be big.
You’ve seen the stories: “Person becomes a trillionaire overnight.”
Few years ago, Citi mistakenly credited 81 trillions to a customer balance.
And several employees missed it.
Same category of mistake as Paxos
www.cnbc.com/amp/2025/03/...
Another 'near miss': Citigroup mistakenly credited a customer account with $81 trillion
Citigroup mistakenly credit a customer's account with $81 trillion last year when it meant to send just $280.
www.cnbc.com
October 16, 2025 at 6:52 PM
5/
And some can be big.
You’ve seen the stories: “Person becomes a trillionaire overnight.”
Few years ago, Citi mistakenly credited 81 trillions to a customer balance.
And several employees missed it.
Same category of mistake as Paxos
www.cnbc.com/amp/2025/03/...
And some can be big.
You’ve seen the stories: “Person becomes a trillionaire overnight.”
Few years ago, Citi mistakenly credited 81 trillions to a customer balance.
And several employees missed it.
Same category of mistake as Paxos
www.cnbc.com/amp/2025/03/...