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- Singapore Confirms Plans To Issue Wholesale CBDC In 2024
- Germany’s Commerzbank Grabs Crypto Custody Licence
- Czech Banks Launch Mobile Payments Service
- IMF Offers Helping Hand With Virtual Currencies
- Belgian Regulator Launches DORA Awareness Survey
- Mastercard, NEC Expand Biometric Checkout Program To APAC
- Lloyds Issues Urgent Warning Over Crypto Scams
- Blockchain Payments Firm Fnality Raises £77m, Led By Goldman Sachs
- Malaysia's PayNet Launches Cross-Border Service For Alipay+ Users In Seven Countries
- Thailand To Distribute $14bn In Helicopter Money Via Digital Wallet App In 2024
- China And Administrative Regions Sign Fintech Agreement
- Klarna Avoids Going To Court In 'Pay In 4' US Class Action
- Block Puts Cash App Launch On Hold In Ireland, EU
- Wise Quietly Puts New Customer Onboarding On Hold For Businesses
Singapore Confirms Plans To Issue Wholesale CBDC In 2024
The Monetary Authority of Singapore (MAS) has confirmed that it will develop a central bank digital currency (CBDC) for wholesale interbank settlement beginning in 2024.
Under the plans, the MAS will pilot the “live” issuance of wholesale CBDC for the first time, after previously simulating issuance only within test environments.
The first pilot will involve the use of wholesale CBDC to settle retail payments between commercial banks, and future pilots could use CBDC to settle cross-border securities trade.
“The ‘live’ issuance of central bank digital money for use as a common settlement asset in payments is a significant milestone in MAS’ digital money journey that began in 2016,” said Ravi Menon, managing director of the MAS.
“The issuance of wholesale CBDC reinforces the role that central bank money plays in facilitating safe and efficient payments.”
The wholesale CBDC pilot will complement ongoing tests of regulated stablecoins, retail CBDC and tokenised bank deposits under the Orchid Blueprint.
Germany’s Commerzbank Grabs Crypto Custody Licence
Commerzbank has become Germany’s first full-service bank to be granted a Crypto Custody Licence by the Federal Financial Supervisory Authority (BaFin).
In a statement, Commerzbank said the licence will enable it to build up a “broad range” of digital asset services.
The bank’s first step will be to establish a “secure and reliable” platform to support institutional clients by providing custody for crypto-assets based on blockchain technology.
“Now that we have been granted the licence, we have achieved an important milestone,” said Jörg Oliveri del Castillo-Schulz, CEO of Commerzbank.
“This highlights our ongoing commitment to applying the latest technologies and innovations, and it forms the foundation for supporting our customers in the areas of digital assets.”
Czech Banks Launch Mobile Payments Service
Six of Czechia's largest banks have launched a new mobile payments service known as Contact Payments.
To register, customers will need to pair their mobile number with their bank account. Subsequently, customers will only need to know the mobile number of the payee to send money to them.
Upon launch, the maximum amount that users will be able to send per transaction will be 5,000 korunas (€200), and the register of numbers is being operated by the Czech National Bank.
A survey by the Czech Banking Association (CBA) found that almost two-thirds of people would like to use Contact Payments, and more banks are set to join the platform in 2024.
“We are bringing further simplification when sending money between people," said Monika Zahálková, executive director of the CBA.
IMF Offers Helping Hand With Virtual Currencies
The International Monetary Fund (IMF) has launched a central bank digital currency (CBDC) virtual handbook that can act as a reference guide for policymakers and experts at central banks and ministries of finance.
It will also serve as the basis for the IMF’s engagement with country authorities and other stakeholders.
The CBDC Virtual Handbook aims to collect and share knowledge, lessons, empirical findings and frameworks to address policymakers’ most frequently asked questions on CBDCs.
The IMF has said that as its expertise in the area grows, it will continue to add about five chapters every year aiming to provide about 20 chapters by 2026.
Moreover, the IMF has said that chapters will be periodically updated, reflecting evolving views.
IMF chair Kristalina Georgieva said on LinkedIn this week that “there is more space for innovation”, and that “this is not the time to turn back” on CBDC projects.
“Keep preparing for CBDCs and payment platforms, and design these platforms with cross-border payments in mind,” she said.
Belgian Regulator Launches DORA Awareness Survey
The Belgian Financial Services and Markets Authority (FSMA) has launched an awareness survey to help financial institutions prepare for the Digital Operational Resilience Act (DORA).
The survey has been launched to enable the regulator to get a better understanding of the “maturity level” of the firms that it supervises.
The obligations established by the DORA regulation will apply from January 17, 2025, but industry insiders have told Vixio that firms are already preparing to become compliant with the requirements.
Mastercard, NEC Expand Biometric Checkout Program To APAC
Mastercard has announced that its Biometric Checkout Program will soon be launching in Asia-Pacific as a result of a new partnership with NEC Corporation.
Following a memorandum of understanding (MoU), the partnership will combine NEC’s face recognition and liveness verification technology with Mastercard’s payments facilitation at checkout.
"Biometric solutions offer a seamless, quick and secure checkout, without needing to unlock a phone or insert a PIN,” said Ajay Bhalla, president for cyber and intelligence solutions at Mastercard.
Mastercard said the program offers an all-in-one solution that combines biometric performance with data protection and privacy requirements for merchants, PSPs and financial institutions.
After launching last year with a pilot in Brazil, the program will be showcased this week at Singapore FinTech Festival.
Lloyds Issues Urgent Warning Over Crypto Scams
One of the UK’s largest retail banks has issued a warning over an increase in crypto scams after a 23 percent surge.
According to Lloyds, victims are losing £10,741 on average. This is more than any other type of consumer fraud (such as romance scams or purchase scams).
Lloyds has further said that Revolut is the most common recipient of Faster Payments made by crypto investment scam victims at Lloyds Banking Group, although it is not always the end destination of the funds, which may then be sent on elsewhere.
Meanwhile, the most common age range for crypto scam victims is 25 to 34 year olds, who make up a quarter of all cases.
Blockchain Payments Firm Fnality Raises £77m, Led By Goldman Sachs
Fnality International, a UK-based blockchain payments firm, has raised £77.7m in a series B funding round led by Goldman Sachs and BNP Paribas.
Other participants include DTCC, Euroclear, Nomura and WisdomTree, while major banks such as Santander, Barclays and BNY Mellon made additional series A investments.
The latest funding round brings Fnality's total capital raised to £132m, as it prepares to launch the Sterling Fnality Payment System (FnPS) in 2023, subject to regulatory approval.
Fnality said its latest funding will also be used to develop its vision of a global liquidity management ecosystem that uses new digital payment models in both wholesale financial and tokenised asset markets.
“Several landmark proofs of concept have already demonstrated the potential inherent in leveraging distributed ledger technology (DLT) to achieve faster, safer and more efficient exchange of value in global wholesale markets,” said Fnality.
Malaysia's PayNet Launches Cross-Border Service For Alipay+ Users In Seven Countries
Malaysia’s PayNet has partnered with Ant Group to launch a new cross-border service that will allow travellers from seven countries to use PayNet’s DuitNow QR code when visiting Malaysia.
As of this month, travellers that use an Alipay+ partner wallet can make payments at more than 1.8m merchants in Malaysia who use PayNet’s DuitNow QR code standard.
The eligible wallets include Alipay (China), AlipayHK (Hong Kong), HelloMoney by AUB (Philippines), Hipay (Mongolia), MPay (Macau), Naver Pay and Toss Pay (South Korea) and TrueMoney (Thailand).
PayNet said that more Alipay+ payment partners will be added to the collaboration in 2024, as will a reciprocal agreement that will enable DuitNow QR users to pay at Alipay+ merchants globally.
“With this collaboration, I am seeing a new Silk Route emerging,” said Farhan Ahmad, group CEO of PayNet, “one that is powered by cross-border payment interoperability.”
Thailand To Distribute $14bn In Helicopter Money Via Digital Wallet App In 2024
Thai Prime Minister Srettha Thavisin has confirmed that the Ministry of Finance will distribute 10,000 baht ($280) to almost every citizen over 16 years old in May next year.
Those who earn more than 70,000 baht ($2,000) per month or who have 500,000 baht ($14,000) in savings will not qualify for the disbursal.
The money will be paid into the Pao Tang app, a digital wallet that was developed by Kruntgthai Bank during the COVID-19 pandemic to pay subsidies to low-income people.
During Thailand's general election campaign earlier this year, Thavisin’s ruling Pheu Thai party promised the disbursal programme, saying it would help to kickstart the country’s struggling economy.
However, economists have warned that after an initial stimulus to economic activity, inflation will follow.
China And Administrative Regions Sign Fintech Agreement
The People’s Bank of China (PBOC), the Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Macao (AMCM) have signed a memorandum of understanding (MoU) on deepening fintech innovation.
Under the MoU, the three authorities agreed to link up, in the form of a network, the PBOC’s Fintech Innovation Regulatory Facility, the HKMA’s Fintech Supervisory Sandbox and the AMCM’s Regulatory Requirements for Innovative Fintech Trials.
In compliance with laws and regulations, the “network link-up” will promote the development of digital finance in Guangdong, Hong Kong and Macao, and will enhance the quality and efficiency of financial services in the regions.
“We are very pleased to have, together with the PBoC, jointly invited the AMCM to join the one-stop platform," said Eddie Yue, chief executive of the HKMA.
"The arrangement will provide a more friendly supervisory environment for cross-boundary fintech developments."
Klarna Avoids Going To Court In 'Pay In 4' US Class Action
A US Second Circuit Court has compelled arbitration in a class action lawsuit that sought to challenge Klarna’s Pay in 4 product.
Najah Edmundson, a user of Klarna’s buy now, pay later (BNPL) product, sued the Swedish fintech after she incurred an overdraft fee as a result of an automatic Klarna repayment.
Edmundson alleged that Klarna “misrepresents and conceals” the risk of bank overdraft fees that consumers face when using its BNPL service.
In February 2022, a Connecticut district court rejected Klarna’s motion to compel arbitration, but the Second Circuit Court has now reversed that ruling, ordering the parties to arbitrate the claims.
The court said Edmundson assented to arbitration when she clicked on "confirm and continue" on Klarna, which meant she agreed to Klarna’s payment terms, including a mandatory arbitration provision.
Block Puts Cash App Launch On Hold In Ireland, EU
US fintech giant Block has reportedly withdrawn an application to launch its Cash App peer-to-peer (P2P) payments app in Ireland and, by extension, the EU.
According to a report from the Irish Independent, in May this year Block withdrew a licence application for Cash App that it had filed with the Central Bank of Ireland (CBI).
A spokesperson for Block confirmed the accuracy of the report.
The news follows Block’s announcement, covered by Vixio last week, that it plans to cut 1,000 staff by the end of 2024.
Jack Dorsey, co-founder and CEO of Block, said a hiring freeze will be in place “until we feel the growth of the business has meaningfully outpaced the growth of the company”.
Wise Quietly Puts New Customer Onboarding On Hold For Businesses
UK-listed fintech Wise has announced that it is no longer accepting new applications to join its service from business customers in the UK and EEA.
In a statement posted last week, Wise said it has “temporarily paused” onboarding new businesses in these markets.
In the meantime, the company said that some customers will be asked to join a waiting list.
Although a Wise spokesperson said the pause is due to high demand in these markets, it follows turbulence for Wise’s business-facing arm in the US.
Last month, Wise informed its US business customers that their Wise Business cards would be “temporarily deactivated” on October 31, 2023. No reason for the deactivation was given.
