International Reports

Beyond Payments: How Fintech Firms Use Microfinance Licenses to Expand Their Offerings

26Jun

By Ankit2 Comments

BFSI, Fintech, Global BFSI, International Reports, Microfinance

Beyond Payments: How Fintech Firms Use Microfinance Licenses to Expand Their Offerings

The microfinance sector has traditionally been the domain of specialized lenders focused on serving the underbanked. However, in recent years, a new trend has emerged - fintech companies are increasingly acquiring microfinance banking licenses to expand their capabilities. According to Eric Ntumba, the acting CEO of Baobab Microfinance Bank, this strategic move by fintechs is driven by their desire to go beyond just being payment platforms. "Most fintechs present themselves primarily as payment platforms. However, once they obtain a microfinance banking licence, they can also lend. Thus, they become relevant competition as they are equipped to perform the same regulatory activities we do," Ntumba explained. The advantages for fintechs are clear. By obtaining a microfinance ...

Project Agora: Enhancing Cross-Border Payments Through Tokenization, 2024

22May

By AnkitNo Comments

Blog, International Reports, Review

Project Agora: Enhancing Cross-Border Payments Through Tokenization, 2024

Project Agorá, a groundbreaking initiative launched by the Bank for International Settlements (BIS) in collaboration with leading central banks and the Institute of International Finance (IIF), aims to revolutionize cross-border payments. By leveraging tokenization and smart contracts, Project Agorá seeks to enhance the functioning of the global monetary system. Let’s explore the details: 1. Objective and Scope of Project Agora Enhancing Efficiency: Project Agorá focuses on improving the speed, integrity, and efficiency of cross-border payments within the existing two-tiered banking system. Tokenization: It investigates how tokenized commercial bank deposits can seamlessly integrate with tokenized wholesale central bank money. Smart Contracts: Smart contracts ...

Stablecoins: Promises vs. Reality: BIS report

23Apr

By Ankit1 Comment

CBDC, Fintech, Global BFSI, International Reports, Payments, Technology

Stablecoins: Promises vs. Reality: BIS report

Overview: The paper examines the evolution of the stablecoin market over the past decade and investigates whether stablecoins have truly lived up to their name in terms of stability. Stablecoins are a subcategory of cryptoassets designed to maintain a stable value relative to a specified peg. Key Findings: Classification of Stablecoins: The authors classify stablecoins into four distinct types: Those backed by fiat currency. Those backed by commodities. Those backed by other cryptoassets. Algorithmic stablecoins (not backed by any specific asset). Volatility and Parity: While stablecoins backed by fiat currency, commodities, or other cryptoassets have generally been less volatile than traditional cryptoassets, none of them has cons...

IMF’s Debt Alarm: Climate Finance Urgency Remains Unresolved

22Apr

By Ankit1 Comment

Economics, Finance, Global BFSI, International Reports

IMF’s Debt Alarm: Climate Finance Urgency Remains Unresolved

Recent report by the Debt Relief for Green and Inclusive Recovery Project (DRGR) warned that 47 emerging and developing market economies may struggle to allocate funds for climate adaptation and development without risking default in the next five years. The annual World Bank and IMF meetings have concluded, leaving behind a sense of urgency and concern. Despite the pressing need to mobilize trillions of dollars for combating climate change, these high-profile gatherings failed to produce a concrete plan. The absence of a clear climate finance strategy raises critical questions about our ability to address the global climate crisis. The Missing Climate Finance Blueprint At the heart of the issue lies the lack of a robust climate finance plan. As the world grapples with risin...

Central Bank Digital Currency : A Payments Perspective by World Bank, 2021

20Apr

By Ankit1 Comment

Payments, Banking, Blog, CBDC, International Reports, Review

Central Bank Digital Currency : A Payments Perspective by World Bank, 2021

The Guidance Report This document, titled "Central Bank Digital Currency: A Payments Perspective," provides insights and guidance on central bank digital currency (CBDC). It explores CBDC's role in the national payments system and analyzes its various aspects, including reasons for issuance, features, timing, infrastructure, and stakeholders. Lets understand this report in brief: Executive Summary The executive summary provides a concise overview of the document's key findings and policy recommendations. It highlights the importance of Central Bank Digital Currency (CBDC) as a transformative tool in the payments landscape and emphasizes the need for careful consideration of its objectives and potential consequences. Central Bank Digital Currency (CBDC): A Transformative Tool in t...