Tag: Central Bank Digital Currency

admin Retail CBDC , , , , ,

Enable QR-Code Payment to Work Offline (Enhance Operational Resilience)

What we do

We help payment companies to enhance the operational resilience of their QR-code payment system by enabling offline capability.

Problem Statement

The future financial system, CBDC will be coming in the next few years. In order to stay competitive, operational resilience will be the key differentiation.

  • One of the challenges of CBDC is that “with enhanced operational resilience of the payment system, designed with offline capability, that allows some payments to be made without internet access and can be executed during natural disasters or other large disruptions”, US Federal Reserve.
  • As a replacement for M0, retail CBDC needs “to provide [resilient] cash-like payment experience, the ability to handle peak traffic as well as connectivity breaks or offline”, BIS.org.

Offline Solution

Benefits:

  • Enhance operational resilience against Internet network failure, system disruption, and natural disaster
  • Reduce the need for expensive payment data centers to maintain system availability and peak traffic handling
  • Avoid initial payment servers investment to expand globally
  • Financial inclusion: where the Internet infrastructure is poor.
  • Low or zero cost of transactions
  • Zero CO2 emission

To learn more, please contact us, at keith@ibonus.net

admin C&S America , ,

Retail CBDC payments in Latin America and the Caribbean

December 2020 

Source: https://www.bis.org/publ/qtrpdf/r_qt2012f.pdf

Retail payment services in Latin America and the Caribbean are characterised by high costs and insufficient access for large swathes of the region’s population. To overcome these limitations, some of the larger central banks in the region have taken the lead to introduce fast retail payments and develop an open banking ecosystem. Several others have launched central bank digital currency pilots. The shift to digital payments, which is supported by these policy initiatives, is likely to receive further impetus from the Covid-19 pandemic.

Key takeaways

• Limited access to retail payment services and their high costs are significant challenges in Latin America and the Caribbean.

• Central banks in the region have undertaken major initiatives aimed at promoting more efficient and inclusive payment systems.

• The Covid-19 pandemic should reinforce the momentum of these policy initiatives, as it has accelerated the shift to digital payments and underscored the need for more inclusive and lower-cost payments.

Current Retail Payment Technology: QR Code and NFC

CoDi in Mexico and Pix in Brazil are fast retail payment systems (FRPS) that allow users to execute and finalise payments

in real time and are available 24 hours a day, every day of the year, through a platform operated by the respective central banks.

CoDi and Pix share many common features but also present some differences (Table 1). From the viewpoint of final users, coverage is identical. Both are available virtually to all transaction account holders for sending payments.

However, some participating institutions cannot receive payments within CoDi. By contrast, in Pix it is compulsory for all participating PSPs to provide their customers with all the functionalities for initiating and receiving instant payments in their mobile applications. As for access channels, both systems allow payments through mobile devices when a quick response (QR) code is scanned or by using near field communication (NFC) technology.

admin Australia , , , , ,

14-01-21 Bitcoin in Race for Adoption Before CBDC in E-commerce: Australia’s Macquarie

With a runway of a year or more before the Federal Reserve and other major central banks can launch digital currencies, bitcoin and other private cryptocurrencies could gain a foothold in electronic commerce.

Central banks like the Federal Reserve and European Central Bank risk losing the digital-currency race if private cryptocurrencies like bitcoin become too entrenched in electronic commerce, according to a new research note from the Australian investment bank Macquarie.

https://www.coindesk.com/bitcoin-race-for-adoption-central-bank-digital-currencies

admin Australia , , , ,

16-11-20 There is currently no strong public policy case to introduce a CBDC for retail use.

The Reserve Bank of Australia (RBA) has announced a partnership with Commonwealth Bank, National Australia Bank, Perpetual and ConsenSys Software to explore the use of a wholesale central bank digital currency (CBDC) using distributed ledger technology (DLT).

The project is currently limited to the wholesale market, reflecting the RBA’s conclusion in a recent bulletin on the Design Considerations, Rationales and Implications of a Retail CBDC that there is currently no strong public policy case to introduce a CBDC for retail use.

admin Australia , , , , ,

26-09-20 Reserve Bank of Australia confirmed the Bank has no plans to issue a retail CBDC just yet.

Today at the UWA Blockchain and Cryptocurrency Conference, the Head of Payments Policy at the Reserve Bank of Australia, Tony Richards, confirmed the Bank has no plans to issue a retail central bank digital currency (CBDC) just yet. Instead, the Bank will continue with research into decentralized ledger technology (DLT) and its uses. 

https://www.ledgerinsights.com/reserve-bank-australia-cbdc-central-bank-digital-currency/

admin VISA/MasterCard , , , ,

VISA explores the offline exchange of digital cash in Central Bank Digital Currency

VISA explores the offline exchange of digital cash and how it could benefit consumers and economies, everywhere

https://usa.visa.com/visa-everywhere/blog/bdp/2020/12/17/central-bank-digital-1608165518834.html

Tackling design hurdles in Offline Transaction


As central banks consider frameworks for reaping the benefits of CBDC, some common design challenges have emerged. For example, how might digital currencies be exchanged in person, when neither the buyer nor the seller has a connection to the internet? Today the only reliable, real-time medium of exchange in an offline context is physical cash. For CBDC to have utility as an alternative to physical cash, it must be useable for face-to-face transactions occurring offline.

About iBonus Limited

Our solution with award-winning and patent-pending QR-BLE-QR communication supports 99% of smartphones (IOS and Android), and with a transaction time of less than 1 second on average. Learn more