Kiffmeister’s #Fintech Daily Digest (11/12/2020)

Retail CBDC Remuneration: The Sign Matters

This Banque de France paper lists the main options central banks would be faced with when defining their policies regarding the remuneration of retail central bank digital currency (CBDC). It assesses qualitatively the impacts of the choices made on the likely areas of interest for central banks, showing that whether the policy rate and/or the rate on CBDC is positive or null or strictly negative matters. Eventually, the two main policies that stand out are to issue a “banknote-like” CBDC, i.e. not to remunerate it, or to do so following a rule derived from the central bank’s interest rate policy for excess reserves. 

Turkish Central Bank set to launch new retail payment system

Central Bank of the Republic of Turkey will launch a pilot of a new retail payment system on December 18, 2020. The Instant and Continuous Transfer of Funds (FAST) system will allow fund holders to transfer money between their accounts at different banks within seconds on a 24/7 basis. The Easy Addressing System, which facilitates payments by using information like phone or ID numbers and e-mail addresses, will also be made available to all fund holders.  

OCC is too caught up in crypto under former Coinbase exec, congresspeople say

Acting Comptroller of the Currency Brian Brooks received a letter from multiple members of Congress expressing concerns over his crypto-heavy leadership. The letter references the Office of the Comptroller of the Currency’s (OCC’s) “recent unilateral actions in the digital financial activities space, including interpretive letters on cryptocurrency custody, stablecoins, and its announced plans to start offering special purpose ‘payments’ charters.”