Russia is considering adding the subject of stablecoins to an upcoming bill, allowing them to be used officially for completing cross-border payments. Alexey Guznov, Deputy Chairman of the Bank of Russia, declared that proposals have already been presented and the issue is now being discussed. The Ministry of Finance also confirmed that this is being […]
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BIS Plans Instant Cross-Border Payments Using Wholesale CBDC Settlement
In a move to improve traditional cross-border payments, the Bank for International Settlements (BIS) has announced the launch of Project Rialto. This project aims to enhance instant cross-border payments by integrating a modular foreign exchange (FX) component with settlement in wholesale central bank digital currencies (CBDCs). The initiative, a collaboration between the BIS Innovation Hub […]
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China and UAE Praise Potential Role of CBDCs in Cross-Border Trade
China and the United Arab Emirates (UAE) have acknowledged the crucial role of central bank digital currency (CBDC) in facilitating cross-border trade and investment. In a joint statement, the two countries expressed their commitment to deepening bilateral and multilateral cooperation with respect to their CBDCs. China also expressed appreciation for the UAE’s recent direct cross-border […]
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Mastercard Launches Crypto Credential Service for Simplified Cross-Border Transactions
Financial giant Mastercard has initiated its first real-world application of the Crypto Credential system, a system aimed at facilitating easier and more secure peer-to-peer (P2P) cryptocurrency transactions. The service, which allows users to transfer cryptocurrencies using simple aliases, has gone live across several exchanges in Europe and Latin America. Mastercard Launches Crypto Credential, Aiming for […]
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Project Mbridge Reaches Milestone: First Digital Dirham Cross-Border Settlement Goes Through
The first cross-border digital dirham payment was completed by Sheikh Mansour Bin Zayed Al Nahyan, Chairman of the Board of the Central Bank of the UAE, using the Mbridge platform, a central bank digital currency (CBDC) liquidity and interconnection tool. The settlement involved sending 50 million dirhams (.6 million) directly to China.
UAE Completes First Digital Dirham Settlement Using Mbridge
UAE has completed the first payment of its central bank digital currency (CBDC), the digital dirham, using the Mbridge platform, a CBDC interconnection platform. The settlement, which involved the disbursement of 50 million digital dirhams (.6 million), was completed by Sheikh Mansour Bin Zayed Al Nahyan, Chairman of the Board of the Central Bank of the United Arab Emirates (UAE), and sent this amount directly to China.
The transaction was completed during the fiftieth-anniversary celebration of the Central Bank of UAE, with Sheikh Mansour emphasizing the focus on making the UAE a financial hub with the help of the central bank.
The UAE, alongside China, Hong Kong, and Thailand, is part of the Mbridge initiative, a joint effort to simplify the exchange of digital currencies between the central banks of the group and streamline payments using non-traditional and distributed rails. Mbridge, with the participation of the Bank of International Settlements (BIS), aims to serve a market of over 0 billion, the combined amount of the goods exchanged by these countries in 2021.
Some nations have become concerned about the development of this initiative, expected to show a minimum-viable product later this year, due to how it would render the action of unilateral sanctions useless against any of the countries integrating it.
In particular, nations fear that Mbridge, when implemented and utilized, would empower the digital yuan to become a viable alternative to the U.S. dollar in the global trade arena by leveraging almost instant and low fee-based payment rails, leaving systems like SWIFT at a disadvantage.
What do you think about the first Mbridge-powered digital dirham transaction? Tell us in the comments section below.
Bank Of China Completes First Cross-Border Digital Yuan Commodities Trade
The Bank of China Hong Kong, the second largest bank in the region, has completed its first cross-border digital yuan-based trade. The transaction, finalized with its sibling bank, the Bank of China, served to receive the payment for an imported iron ore commodity bulk trade, establishing the digital yuan as an option for this kind of settlement.
Bank of China Settles .4 Million in Bulk Commodities Using the Digital Yuan
The Bank of China has opened the path for companies to settle their cross-border payments using the Chinese central bank digital currency (CBDC), the digital yuan. The Hong Kong branch of the bank, the second-largest financial institution in the region, has achieved a milestone in serving as an intermediary for the settlement of a .4 million bulk commodity payment between Baosteel group, a steel and iron powerhouse, and Bao-trans Enterprises, a manufacturer of premium steel products.
The Hong Kong subsidiary and its mainland-based branch set up digital yuan wallets to support this transaction, receiving the funds in the name of Bao-trans Enterprises as a payment for an order of imported iron ore. According to local press reports, this is the first time the financial institution has acted as an intermediary for a commodity bulk settlement using the digital yuan.
Xing Guiwei, Bank of China Hong Kong deputy chief executive, praised the virtues of the Chinese CBDC in this kind of application. For Guiwei, the digital yuan can also be leveraged for the international settlements use case in addition to the retail payments scenario.
Guiwei stressed this application contributes to extending the use of the digital yuan at an international level. He explained:
The successful trial transaction can be helpful for the normalization of digital yuan usage among corporates and the further development of yuan internationalization.
China has been advancing in the internationalization of its digital currency, as Standard Chartered started offering digital yuan exchange services in China in November, and the People’s Bank of China (PBOC) partnered with the Monetary Authority of Singapore (MAS) to allow tourists of both countries to spend digital yuan.
What do you think about using digital yuan for cross-border commodities settlements? Tell us in the comments section below.
Ripple Joins Forces With Uphold to Improve Cross-Border Crypto Payments Liquidity
Ripple has partnered with Uphold to improve its cross-border crypto payments infrastructure. Uphold will provide Ripple with “enhanced crypto liquidity capabilities.” Ripple offers services in over 55 countries, with payout capabilities in more than 70 markets, the company said, adding that it has processed billion worth of volume and 20 million transactions.
Ripple Partners With Uphold
Ripple announced Tuesday that it has formed a new partnership with Uphold, a multi-asset digital currency platform that operates in over 184 countries, offering access to over 200 crypto and fiat currencies. According to the announcement:
The partnership will see Uphold provide Ripple with enhanced crypto liquidity capabilities to underpin and enhance its cross-border payments infrastructure.
Uphold CEO Simon McLoughlin explained that his company’s platform “features a fully automated, high-frequency trading stack” that is connected to 30 underlying trading venues. This allows Uphold to “offer deep liquidity, multiple execution paths for transactions, and exceptionally tight spreads,” he said.
Ripple’s head of payments, Pegah Soltani, commented: “Our new partnership with Uphold enables us to enhance our underlying infrastructure and Uphold’s deep liquidity expertise further underpins Ripple’s ability to offer fast and flexible cross-border payments around the world.”
Ripple’s solutions focus on three areas: cross-border payments, crypto liquidity, and central bank digital currency (CBDC). The firm’s announcement details:
Today, Ripple serves hundreds of customers in over 55 countries and 6 continents, with payout capabilities in more than 70 markets, and has processed billion worth of volume and 20 million transactions since its payments solution was first launched.
The crypto firm recently celebrated its victory against the U.S. Securities and Exchange Commission (SEC). Last week, the securities regulator dropped its lawsuit against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. On July 13, District Judge Analisa Torres partially ruled in favor of Ripple regarding XRP. The SEC sought to appeal the decision but Judge Torres rejected the regulator’s bid for an interlocutory appeal.
What do you think about Ripple partnering with Uphold to enhance cross-border crypto payments liquidity and infrastructure? Let us know in the comments section below.
Moneygram Introduces Non-Custodial Crypto Wallet for Cross-Border Payments
Moneygram, a leading money transfer company, announced plans to launch its own non-custodial digital wallet in partnership with the Stellar Development Foundation. The wallet will enable users to convert between fiat and digital currencies when sending cross-border payments.
Moneygram Partners With Stellar to Launch Non-Custodial Digital Wallet
Set to launch in the first quarter of 2024, the new digital wallet will allow Moneygram customers to cash out their digital assets at any participating Moneygram location worldwide. Additionally, the wallet will let users send digital assets to other wallet users. However, privacy advocates might take issue with the fact that Moneygram will apply its compliance screening to all wallet users.
“Our vision to connect the world’s communities by empowering our customers through innovative financial solutions takes another step forward today,” said Alex Holmes, CEO of Moneygram. Holmes added, “The Moneygram non-custodial digital wallet advances this mission even further.”
Offered without fees until June 2024, the non-custodial wallet will use Stellar’s blockchain network and integrate with Moneygram’s existing fiat on- and off-ramps. Moneygram plans to expand the wallet’s capabilities after its launch, introducing new features that further connect global money transfers with blockchain payments.
Building on Moneygram’s 2022 ventures in the crypto space, the company launched a USDC crypto-to-cash program last June, allowing users to cash out digital currencies. In November, Moneygram began permitting customers to buy and sell cryptocurrencies directly within its money transfer app. The non-custodial wallet represents the company’s most recent effort to increase access to digital assets.
What do you think about Moneygram non-custodial wallet? Share your thoughts and opinions about this subject in the comments section below.
Latam Insights — Javier Milei’s Victory Divides Argentina; Bitso Launches Cross-Border Institutional Payment Service
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: Javier Milei’s victory in Argentina causes a devaluation maelstrom, and Bitso launches a cross-border institutional payments service.
Javier Milei’s Victory in Argentina Sparks Devaluation and Inflation Maelstrom
The victory of Javier Milei in the Argentine preliminary elections, qualified as a far-right outsider by mainstream media, has sparked a series of consequences in the country’s economy that has caused citizens to take refuge in cryptocurrency and stablecoins. Milei’s win, which polls did not foresee, has intensified the discussion of a possible dollarization of the country, which has been mentioned as key in his government plans.
Milei’s dollarization plan, which would contemplate the total conversion of deposits of public and private institutions to U.S. dollars, would also include the closure of the Central Bank of Argentina. These ideas, alongside the devaluation of the official U.S. dollar exchange rate, have led companies and individuals to hedge their savings and investments in dollars, powering the plunge of the Argentine peso, which again reached record lows of almost 800 pesos per dollar on the informal “blue” exchange rate.
U.S. dollar-pegged stablecoins, especially USDT, were in high demand last week, with trading volumes rising by 300% and even up to 500% in some instances, according to local reports.
This dollarization plan has supporters and detractors, with the latter indicating that embracing the dollar would leave Argentina without the means to control its monetary policy and the former stating that dollarization is one of the resources that can stop devaluation and inflation.
This devaluation escalation is affecting the inflation predictions of private firms, which are now anticipating inflation numbers of up to 200% for 2023. This might limit or condition the economic policies of the next government that must also deal with the debt owed to the International Monetary Fund (IMF).
This inflation rate would put Argentina among the countries with the highest inflation in the world.
Bitso Launches Cross-Border Institutional Payment Service
Bitso, a Mexico-based, Latam-focused cryptocurrency exchange, has announced the launch of a new product to ease the process of making and receiving cross-border settlements from and to Latam. Santiago Alvarado, Bitso’s Senior VP of Institutional Products, stated:
With this launch, we seek to boost the economies of our region, by facilitating operations between countries and opening trade corridors that increase the development and prosperity of Latin America.
The trial of the service allowed customers to transact more than 160 million dollars from August 7 to August 11, with 80% of these settlements completed between the U.S. and Mexico.
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Egyptian and Nigerian Central Banks Sign Agreement to Deepen Cross-Border Regulation
The central banks of Egypt and Nigeria have signed a fintech agreement to deepen the two institutions’ “cross-border regulatory collaboration” and information sharing. The London Institute of Banking & Finance, which also signed an MOU, will offer training programs, workshops, and courses to leaders in the Egyptian fintech sector.
MOU Agreement to Help Boost Innovation
On July 17, the Egyptian and Nigerian central banks announced the signing of a financial technology collaboration agreement. The signing of the memorandum of understanding (MOU) is expected to help “deepen cross-border regulatory collaboration” and information sharing between the two institutions.
Furthermore, the pact will help “boost innovation and grow regional technology investments.” The MOUs were signed on the sidelines of the Seamless North Africa 2023 meeting held in Cairo.
Central Bank of Nigeria signs FinTech collaboration agreements with the Central Bank of Egypt #FinancialInclusion #FinTech #SeamlessNorthAfrica2023. pic.twitter.com/pswcIA7aMy
— Central Bank of Nigeria (@cenbank) July 18, 2023
In her remarks following the signing of what has been described as a fintech bridge, Aishah Ahmad, the deputy governor of the Central Bank of Nigeria (CBN), said the collaboration would foster financial inclusion.
“We look forward to cultivating an innovative space for fintech startups and entrepreneurs in Egypt and Nigeria to accelerate financial inclusion, deepen our payment systems and drive economic growth across the African Continent,” Ahmad, who is in charge of Financial System Stability, said.
According to a Xinhua report, the London Institute of Banking & Finance, which also signed an MOU with the Egyptian central bank, will offer training programs, workshops, and courses to leaders in the Egyptian fintech sector. Meanwhile, at the same event, the governor of the Egyptian central bank Hassan Abdallah announced the release of the Fintech Outlook report which highlights the positive indicators of Egypt’s fintech sector.
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