Fintech
Working group minutes: facing up to CBDC adoption challenges
Participants at Cape Town meeting saw drawbacks to digital currency versus other payment methods
Sama bans banks from using WhatsApp for customer comms
Directive comes amid spike in scams
MNB launches DLT-based register for banks and insurers
Central bank says initiative aims to reduce administrative burden for firms and consumers
Trump names assets for US crypto strategic reserve
Announcement triggers rally for bitcoin, ethereum, XRP, solana and cardano
Technology needs to keep up with crypto regulation – panel
Panellists discuss AML/CFT risks arising from virtual assets during Central Banking Spring Meetings
Central banks split on whether CBDC will impact seigniorage
Some respondents see seigniorage depending on CBDC design choices
Central banks widely exploring RTGSs’ interoperability with CBDCs
High income institutions more likely to research the issue than their middle income counterparts
Half of institutions have a central data collection centre
Respondents with data collection system more likely to automate regulatory filings
Flexibility and business continuity seen as key benefits of cloud services
But three in four fintech teams point at privacy as concern
Central banks more likely to use software-based cloud services
Cloud widely used for cyber security and other applications
AI spreads further among fintech teams
Centralised fintech teams more likely to apply AI/ML to sentiment analysis
Half of planned CBDCs designed to be programmable
Two-thirds of wholesale CBDCs likely to be programmable
Most central banks without CBDC mandate engaged in retail projects
Only one in three banks has a legal mandate for CBDC issuance, but many are still working on digital currency
American central banks less likely to struggle with fintech recruitment
But American banks face toughest battle for talent retention
Stop calling them ‘CBDCs’, ECB paper argues
Study says the term, and much other crypto terminology, is misleading and should be binned
Fintechs more likely to be licensed in upper-middle income countries
Licence issue rate across central banks broadly unchanged year on year
Cyber, suptech and CBDCs are top areas for fintech research
Central banks with fintech strategy more likely to prioritise CBDCs
Cyber security and legacy systems still greatest technology challenges
But concerns differ by central banks’ CBDC mandate
Central banks lacking fintech unit less likely to have a strategy
Respondents’ strategic priorities include digitalisation, regulations, collaborations and others
Four in five central banks lack chief fintech officers
Centralised fintech teams more likely to have chief fintech officers
Congressional body questions Fed’s powers to regulate crypto
Banks can currently provide exposure to sector, but not custody, as exchange seeks partnership