A new IMF paper discusses the ways that technology is changing the landscape of the financial sector, and increasing access to financial services in profound ways. These changes have been in motion for several years, affecting nearly all countries in the world. However, during the COVID-19 pandemic, technology has created new opportunities for digital financial services to accelerate and enhance financial inclusion, amid social distancing and containment measures. At the same time, the risks emerging prior to COVID-19, as digital financial services developed, are becoming even more relevant.
Central Bank of the Bahamas to take ‘Sand Dollar’ nationwide by Q3
The Central Bank of the Bahamas is preparing to make the Sand Dollar available nation wide by the end of the third quarter of this year, according to Deputy Prime Minister and Minister of Finance K Peter Turnquest. Turnquest was addressing Parliament on the proposed legislative reforms to Central Bank Governance, Financial Sector Crisis Management and Modernization of the Domestic Payments System.
Ride-Hailing Giant DiDi to Trial China’s Central Bank Digital Currency
Chinese ride-hailing mobile service DiDi has reportedly entered into a strategic partnership with the Digital Currency Research Institute of the People’s Bank of China (PBoC) in an effort to accelerate the application of its Digital Currency Electronic Payment (DCEP). DiDi is the dominant ride-hailing mobile service in China.
FATF Report to the G20 Finance Ministers and Central Bank Governors on Stablecoins
In a report to the G20 finance ministers and central bank governors, the Financial Action Task Force (FATF) said regulators need to cooperate to make measures such as the “travel rule” more effective. The organization will work to develop an international framework for authorities to coordinate and share information about virtual asset service providers (VASPs). The FATF also said it will be providing specific guidance on stablecoins for regulators at some future point.
Criminals infiltrating Africa’s booming mobile money industry
A new INTERPOL report has found the billion dollar mobile money industry in Africa is being exploited by organized crime groups – a trend only set to increase as the service is rolled out across the continent. The report presents an overview of the criminal exploitation of mobile money services, including fraud, money laundering, extortion, human trafficking and people smuggling, the illegal wildlife trade and terrorism. A lack of robust identity checks to verify users combined with a need for greater law enforcement resources and training on mobile money-enabled crimes have created a financial system distinctly vulnerable to criminal infiltration.
Card schemes to take Click to Pay standard global
American Express, Visa, Mastercard and Discover are to roll out the online Click to Pay standard globally, having signed up 10,000 merchants in the US since launch in 2019. Major payments service providers, gateways and acquirers across the ecosystem have also joined the initiative. Click to Pay aims to make online shopping easier for consumers by replacing time-consuming key entry of personal account numbers and information at checkout with a universal payments button.
Sri Lanka’s Central Bank to develop Blockchain Technology based KYC Proof of Concept
The Central Bank of Sri Lanka is developing a blockchain-based shared know-your-customer proofs of concept. Over 40 companies, including 17 foreign companies applied, either individually or jointly, to develop the POC. After several rounds of selection, the CBSL selected three applicants to be tasked with this project.
Saudi Payments helps society adapt to COVID-19
Saudi Arabian Monetary Authority (SAMA) subsidiary Saudi Payments highlighted the importance of electronic payment platforms and their increasing usage popularized during the COVID-19 pandemic. SAMA had tripled the limit of purchases through bankcards that use NFC technology on point-of-sale devices, in order to avoid contact with contaminated surfaces. As a result, during the first quarter of 2020, there were large increases in online purchases and purchases via POS devices.
Mobile money ban sends Zimbabwe’s economy spiraling
The ban on electronic money transactions in Zimbabwe has sent trade in the economy into a tailspin. The government has suspended mobile money transactions except those for receiving essential payments for goods and services as well as paying for utilities like water, electricity and airtime. However, it also suspended the Ecocash mobile payments platform, which accounts for about 94% of the market. While the government insists individual transactions are still open, on the ground, things are more “intricate” now.
Posted from Diigo: https://www.diigo.com/user/kiffmeister/Fintech