Kiffmeister’s FinTech Daily Digest (06/09/2020)

Fintech is a sector where businesses succeed or fail on their ability to scale. Yet the ecosystem is failing to provide even minimal levels of African American representation necessary for it to do so… Historically, African Americans have been locked out of lending and credit building opportunities that make up the cornerstones of inclusion and wealth building. As a result, they are far more likely to lack credit histories (and high scores), financial advice and information necessary to build wealth… This makes people of color — and African Americans in particular — especially important stakeholders in the fintech conversation. And, precisely because of their lived experience with the failures of traditional financial services, they may well prove to be the ones with the best ideas and intuitions for helping the industry evolve and flourish… If fintech fails to innovate where it counts the most, it will be doomed to repeat the failures of the very system it seeks to replace. (Chris Brummer on Fintech’s Race Problem)

Inclusive Banking During a Pandemic: Using FedAccounts and Digital Tools to Improve Delivery of Stimulus Payments
The US House Financial Services Committee will be holding a hearing to discuss the use of digital tools to improve the delivery of stimulus payments on June 11 starting at noon (ET). Congressman Stephen Lynch (D-MA), who serves as Chair of the FinTech Task Force, will oversee. It will focus on recently proposed legislation calling for a FedAccount digital dollar wallet – an account maintained by a Federal Reserve Bank on behalf of any person.

Towards Central Bank Digital Currency – A Systematic Literature Review
This paper evaluates research from the major central banks and the scientific community regarding CBDC. The focus hereby is on providing a comprehensive view on the topic by introducing, combining and discussing various research fragments. For this purpose, relevant research and publications are identified via a systematic literature review and classified into different groups. We find that research on CBDC is still at an early stage in both academia and within central banks, providing several areas of future research. Motivations and rationales for issuing a CBDC as well as possible design opportunities and potential properties of a CBDC are presented. Furthermore, the analysis is extended to include economic aspects, implications for monetary policy and legal issues.

FATF Meeting Scheduled to Discuss VASPs Compliance With Travel Rule
The Financial Action Task Force (FATF) has a plenary meeting scheduled on June 24 to assess the progress of Virtual Asset Service Providers (VASPs) worldwide in enforcing the organization’s “travel rule”. The guidelines are not legally binding, but they can be effective because any nation that does not comply with them by the deadline may be excluded from the global financial network. Out of the over 200 countries that make up the FATF, only 20 or so have issued regulations covering the travel rule, although the remaining countries are making significant progress, according to CoolBitX CEO Michael Ou.

Banque Centrale de Tunisie to officially launch Fintech website Friday
The Central Bank of Tunisia will launch its “BCT-FINTECH” website. The press conference will allow interaction with the Fintech ecosystem and discussion of the difficulties encountered during the COVID-19 crisis. The website, set up by the BCT, will support Tunisian fintechs develop solutions and provide them with several mechanisms including a regulatory sandbox and an innovation lab.

Posted from Diigo: