December 5, 2023 FinTech Monitor

BFC FinTech Monitor (November 2023)

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Stay up-to-date on all the latest FinTech news and information from around the world in the BFC FinTech Monitor.

Around the World

#Reports and Studies

  • A survey of 1,000 respondents from Chile, France, Singapore and the US conducted by Entrust Cybersecurity Institute has found that most people are comfortable with banks using facial, selfie or fingerprint recognition systems as well as artificial intelligence to detect fraud. »»»

#Payments

  • The Baltic Payment Forum will be held in Vilnius in April 2024, with online participation possible. »»»
  • Swedish fintech company Klarna will be able to connect to the SEPA system as part of its cooperation with the Form3 cloud platform. »»»
  • Mastercard has received permission to process domestic payments in China, which means that it will be able to issue cards in the local currency there. »»»
  • Chinese fintech giant Ant International has presented its strategy for digital payments and digital commerce, which consists of 4 main areas: (1) cross-border mobile payment service Alipay+, (2) neobank ANEXT Bank, (3) Antom Merchant Payment Services for consumers in Asia and abroad and (4) WorldFirst digital payment and financial services for SMEs engaged in cross-border trade. »»»
  • Turkish payment system Turan Teknoloji Anonim Şirketi (Turan) has commenced operations in Central Asia. »»»

#Artificial Intelligence (AI)

  • Visa has launched a consulting practice to help customers unlock the potential of AI. »»»
  • Gartner analysts believe that initiatives in the field of AI should be the main priority for IT directors over the next 1-2 years. »»»
  • The Monetary Authority of Singapore (MAS) has brought together banks and technology companies to create a generative AI risk methodology that explores further technological possibilities in the financial sector. »»»
  • The Commonwealth Bank of Australia will provide its AI and machine learning methods free of charge to any bank to combat unwanted messages or transactions. »»»
  • British bank NatWest has integrated generative AI capabilities into its chatbot, allowing the digital assistant to communicate with customers in a more “human-like” way. »»»
  • Users of the paid version of ChatGPT can now create commands within their own applications instead of having to use a chat window to perform them. »»»
  • OpenAI has announced improvements to its GPT-4 and GPT-3 language models. »»»

#Cryptocurrencies, Blockchain, Non-Fungible Tokens (NFTs) and Decentralized Finance (DeFi)

  • The victory of libertarian economist Javier Miley in the Argentine presidential elections is seen as a potential turning point for Bitcoin as he considers the cryptocurrency key to reviving the country’s economy. »»»
  • Ex-employees of Revolut have launched Zeal, a new crypto wallet. »»»
  • Approximately 50 countries have adopted the OECD crypto-asset reporting framework standards, due to come into effect in 2027, which will require cryptocurrency platforms to hand over taxpayer information to tax authorities. »»»
  • One of the world’s largest banks, HSBC, is now offering tokenized gold as “a digital double” of the physical asset. »»»
  • The Institut kriptoaktivov has opened in Paris to support and conduct research related to blockchain technology and cryptocurrencies. »»»
  • Binance users in Armenia, Azerbaijan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan and Ukraine now have the opportunity to get a cryptocurrency card. »»»
  • Tangem has presented a cryptocurrency wallet for cold storage in the form of a ring. »»»
  • Bloomberg Intelligence analyst Jamie Coates believes that the number of daily blockchain users could reach 100 million people by 2028. »»»
  • 10 out of 11 tokens from AI-related projects have grown following personnel confusion at OpenAI. »»»
  • Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), has announced that the FTX crypto exchange could be revived if new management ensures legislative compliance. »»» In related news, former FTX managers have united to launch a new exchange. »»»
  • Cyber security experts have developed the first completely undetectable and free cloud cryptocurrency miner. »»»
  • Mastercard’s  cooperation with Feedzai has led to improved protection against crypto fraud. »»»
  • The US Securities and Exchange Commission (SEC) has subpoenaed PayPal over the release of the PUSD stablecoin. »»»
  • Belgium intends to accelerate the development of European blockchain infrastructure at the beginning of next year as it assumes the presidency of the European Council. »»»
  • Crypto exchange Binance has presented the self-storage Web3 Wallet. »»»
  • Chinese authorities intend to prosecute individuals who steal digital collections, such as non-fungible tokens (NFTs). »»»
  • American financial holding JPMorgan has launched a programmable payment function for institutional users of the private blockchain platform JPM Coin. »»»
  • The EU loophole that allows banks to dodge the European Central Bank (ECB)’s crypto supervision needs to be addressed. »»»

#Central Bank Digital Currencies (CBDCs)

  • Kristalina Georgieva, the head of the International Monetary Fund (IMF), has urged governments to continue preparations for deploying CBDCs and their corresponding payment platforms. »»»
  • A study by the Bank of International Settlements (BIS) highlights the importance of data confidentiality in implementing CBDCs, noting that consumers have limited tolerance for intrusions into their private lives. »»»
  • A pilot project in South Korea will enable thousands of citizens to purchase goods using a digital phone linked to a CBDC. »»»
  • gustin Carstens, the general director of the Bank of International Settlements (BIS), has urged central banks to introduce innovative CBDC solutions. »»»
  • In New Zealand, the NZDD stablecoin, pegged to the local dollar, has been launched as a collaborative effort between Easy Crypto and the Australian blockchain developer Labrys. »»»
  • Mastercard has carried out a pilot project testing the use of a CBDC in Hong Kong. »»»

#Miscellaneous

  • Fintech Farm is planning to launch neobanks across Asia, the Middle East, and North Africa. ¹»»» ²»»»
  • Mashreq, Visa and Ecolytiq have launched a climate banking platform to help users obtain data on their carbon footprints. »»»
  • A collaboration between Infosys and Amazon Web Services will allow financial organizations to accelerate the process of implementing cloud technologies. »»»
  • European crowdfunding platforms Kapitaal op Maat (KoM), Max Crowdfund (MCF) and Capital Circle (CaCi) have announced plans to merge and create a super platform for alternative financing. »»»
  • 10x Banking, a SaaS platform, and Ozone API are collaborating to streamline the provision of APIs for banks, enabling financial institutions to integrate real-time banking services with a comprehensive solution for the complexities of open banking. »»»
  • The US Consumer Protection Bureau has announced that large technology companies and non-banks that process payments may be subject to the same supervisory checks as banks and credit unions. »»»

Ukraine:

  • The Ukraine Economic Outlook study indicates that from 2016 to 2022, a lack of regulation in the crypto market resulted in Ukraine missing out on approximately USD 4 billion in tax revenue and USD 48.8 billion in GDP. »»»
  • A new bill concerning virtual assets has been introduced in the Ukrainian parliament, aiming to establish an effective market for these assets and set up taxation rules for transactions involving this new asset class. »»»
  • Diia app users will now have the ability to update their bank data directly through the app. »»»
  • Ukrainian SaaS startup Getpin has secured financing of USD 400,000 from the Czech venture fund Presto Ventures. »»»
  • During a recent roundtable event, representatives from Ukrainian banks expressed their desire to digitize credit contracts. »»»
  • Boasting over 7.7 million clients, Monobank is preparing to launch a new app and has offered a prize for anyone who finds vulnerabilities in it. »»»
  • Ukrainian authorities have received over 1,500 criminal complaints concerning cryptocurrency-related crimes. »»»
  • Ukrainian cryptocurrency exchange Kuna plans to implement basic verification procedures for deposits, withdrawals and the trading of all assets. »»»

Kazakhstan:

  • Kazakhstan has initiated a pilot program for the digital tenge. »»»
  • Fintech startup Revolut has begun operations in Kazakhstan. »»»
  • Kazakhstan’s authorities have blocked access to the Coinbase cryptocurrency exchange. »»»
  • Sergey Voronenko, an analyst at Standard & Poor’s, predicts that around 15-17% of Kazakhstan banks’ total expenses in 2024 will be allocated to digital transformation. »»»
  • Due to the new tax on digital mining, many miners have started to exit the Kazakhstan market in large numbers. »»»
  • The National Bank of Kazakhstan and Mastercard have published the Trends of Digital Payments: View of the Future in the World and in Kazakhstan report. »»»
  • Renat Bekturov, the head of the Astana International Financial Center, discusses the center’s role in advancing fintech in Kazakhstan. »»»
  • Ozon, in partnership with Halyk Bank, Home Credit Bank, Eurasian Bank, and Fridom Finance Credit, has launched an installment service in Kazakhstan. »»»
  • Canaan has been granted a license for cryptocurrency mining in Kazakhstan. »»»
  • Dulat Tastekei, Aydyn Sapashev, and Erkebulan Kuryshbay engage in a discussion about how microfinance organizations are contributing to the development of fintech in Kazakhstan. »»»

Kyrgyzstan:

  • Kyrgyzstan is developing a law on venture financing, which will soon be open for public discussion. »»»
  • PO MaxPay LLP, an operator of mobile electronic money systems, has commenced operations in Kyrgyzstan. »»»
  • The volume of QR-code payments in Kyrgyzstan has tripled. »»»
  • The Digital Kyrgyzstan Forum is scheduled to take place in Bishkek on February 28, 2024. »»»

Uzbekistan:

  • Experts from Mastercard have compiled a report detailing recent changes in Uzbekistan’s fintech market. »»»
  • Nika Kurdiani, CEO of TBC Group Uzbekistan, has shared his vision for the development of fintech in Uzbekistan. »»»
  • Islamic fintech startup Alif aims to raise USD 50 million in investments to broaden its operations in Uzbekistan. »»»
  • Uzum Bank will soon introduce an installment payment option in its app. »»»
  • The QIWI Uzbekistan app will stop working on December 18, with all usual services transferred to the single QIWI app. »»»
  • A Paynet subsidiary is in the process of establishing a cryptocurrency depository. »»»

Azerbaijan:

  • The Seventh International Banking Forum, focusing on reliable, safe, and sustainable banking, was held in Baku. »»»
  • The Tiktok Startup Academy Program’s final event was hosted by the Innovation and Digital Development Agency (IRIA) and featured bloggers, IRIA representatives and 16 startups from Azerbaijan and Uzbekistan. »»»

Armenia:

  • The Central Bank of Armenia has developed a crypto regulation concept expected to facilitate quick and appropriate responses to both existing and potential risks, as well as establish a clear legal framework for the development of innovations and technologies in the virtual assets sector. »»»
  • The international conference FINTECH360, held in Yerevan, saw participation from approximately 200 representatives of leading banks, payment systems, fintech companies, startups, and professional associations. »»»
  • Euromoney has recognized Ameriabank as the best Armenian bank for digital solutions. »»»
  • Amio Bank has launched a video banking service. »»»

Georgia:

  • The Georgian regulatory authority has selected Ripple as the official technological partner for the digital lari pilot project. »»»

Moldova:

  • The information portal Point.md has released a report on the fifth installment of the Fintech Moldova Conference, which was held in October 2023. »»»

Prepared by BFC