Fintech Daily Digest

This paper by a Reserve Bank of Australia (RBA) staffer sheds light on Australia's fast real-time retail payments system, the New Payments Platform (NPP). It concludes that there is no strong case for the RBA to issue a retail central bank digital currency given that the NPP and the safer Next Generation Banknote series.

Payments innovation is moving at a dizzying pace. Some ideas may fail to get off the ground, while others may need to pivot to become commercially viable. Other issues, like market dominance or cyber-security risks, will undoubtedly become more prominent in policy debates. On balance, however, the economic and social benefits of a frictionless, fraud-free, and trusted global payments system will likely outweigh the risks.

Google will offer checking accounts next year, according to a source familiar with the company's plans, representing Big Tech's boldest move yet into the consumer banking business.

Data trends also show that blockchain's been losing its fizz. In a big turnaround from years prior, the flow of cash into blockchain start-ups has dropped, according to data compiled by CB Insights. Businesses focusing on blockchain are on pace to draw $1.6 billion this year, down from a record $4.1 billion in 2018, the firm said recently.

British-based digital banking app Revolut is in talks with investors to raise at least $500 million next year to fund a global hiring spree as it expands in markets including the United States and Japan.

Debit cards linked to crypto wallets have been a useful payment tool for users who want to be able to spend their crypto-assets almost anywhere. Here's a list of crypto cards that currently support at least 10 cryptocurrencies.

The People's Bank of China has officially said that it is "still in the process of research and testing" its digital yuan, but that news reports stating that the central bank has issued its digital currency are "fraudulent." (http://www.pbc.gov.cn/rmyh/105208/3919880/index.html)

The Turkish government government has confirmed that it is testing a new blockchain-based version of the lira to be issued by the country's central bank.

In a filing to the district court of the Southern District of New York Telegram broke down and refuted all the allegations made by the SEC in its case, barring some fundamentals such as the nature of the company and its team and uncontested details of its fundraise.

The Monetary Authority of Singapore (MAS) and the Bank for International Settlements (BIS) today launched the BIS Innovation Hub Centre in Singapore. This is the BIS's first expansion of its global footprint in 17 years.

Topics under consideration for the work agenda include central bank digital currencies, global stablecoins, payment innovations, the impact of big tech on financial intermediation, regtech and suptech, fast-paced electronic markets, and digitalisation of trade finance.

Bitcoin futures market Bakkt intends to expand from its current physically-settled offerings to cash-settled futures before 2020.

Binance became the first crypto exchange to implement the fiat gateway of stablecoin operator Paxos. The Paxos Fiat Gateway allows its users to swap between dollars and stablecoins on a one-to-one basis.

Derivatives exchange CME Group has announced it will launch options on its bitcoin futures contracts in January. As long as it gets the green light from regulators, the options will go live on Jan. 13, 2020.

Facebook is launching Facebook Pay to facilitate payments across its Facebook, Messenger, Instagram, and WhatsApp apps. It's built on existing financial infrastructure and partnerships, and will be separate from Calibra and Libra network.

The Bank of Thailand launched the Project Inthanon and Project DLT scripless bond initiatives in 2018. Project Inthanon is a proof-of-concept for wholesale domestic and cross-border funds transfer using central bank digital currency. The Project DLT scripless bond is an initiative to increase efficiency for the saving bond registration and sales processes.

In a sweeping rejection the Central Bank of Tunisia quashed "unfounded" rumors that it had become the first monetary authority to issue a central bank digital currency, asserting instead that an unaffiliated proof of concept project was taken out of context.

Ant Financial has started testing its Ant Blockchain Open Alliance enterprise blockchain platform. The platform aims to support small and medium-sized businesses by allowing them to cut costs and expand their reach.

Digital transactions in India increased by 55% last year, compared with 48% in China and 23% in Indonesia. By comparison, cashless payments grew about 10% in the UK, a developed market where card transactions are already entrenched.

As a follow-up to the MoU signed between the HKMA and the Bank of Thailand in May 2019, the two authorities are conducting a joint research project named Project LionRock-Inthanon to study the application of Central Bank Digital Currency (CBDC) to cross-border payments, with a view to facilitating HKD-THB payment-versus-payment (PvP) among banks in Hong Kong and Thailand. A joint report is scheduled to be released in Q1 2020.