Kiffmeister’s #Fintech Daily Digest (03/29/2021)*

Visa moves to allow payment settlements using cryptocurrency

Visa will allow the use of USD Coin to settle transactions on its payment network. USD Coin (USDC) is a USD-pegged stablecoin. Visa has launched the pilot program with payment and crypto platform and plans to offer the option to more partners later this year. It uses the Ethereum blockchain, and strips out the need to convert digital coin into traditional money in order for the transaction to be settled. In the pilot, sent USDC to Visa’s Ethereum address at Anchorage.  

Consumer-Centric Aspects of the Proposed Regulations for the Bahamian Digital Currency

The Central Bank of the Bahamas circulated draft Sand Dollar regulations for public consultation on February 15. They are intended to enhance the existing legislative framework governing payment services providers, specific to their provision of central bank digital currency (CBDC) linked services. The consultation period closes on March 31 and the regulations will be finalized for issuance by May 1, 2021. Also, all wallet providers are expected to achieve full interoperability by March 31. 

The State Bank of Pakistan prepares Digital Bank Regulatory Framework

The State Bank of Pakistan (SBP) published a draft of the Digital Bank Regulatory Framework for public consultation. The initiative is part of the SBP’s comprehensive efforts to promote digital financial services, and the framework proposes guidelines for licensing and supplementary regulations for digital banks.  

* The views expressed herein are those of the author and should not be attributed to the International Monetary Fund, its Executive Board or its management.