Snippings

The Bank for International Settlements (BIS) Innovation Hub Nordic Centre has published a comprehensive handbook exploring key aspects of how central bank digital currencies (CBDCs) could work for offline payments, by which they mean payments made without being connected to the internet, either temporarily or because of coverage limitations. The handbook, produced as part of the BIS Project Polaris, intends to help central banks considering the potential implementation of CBDCs with offline functionality to take into account a complex matrix of issues including security, privacy, likely risks, the types of solution, their maturity and applicability, and operational factors. The handbook, compiled in partnership with Consult Hyperion (disclosure: although I had nothing to do with this project, I am a Director of Consult Hyperion) addresses these issues as well as objectives for resilience, inclusion, cash resemblance, accessibility and other desired attributes.

At the same time, a survey by Kantar for the European Central Bank (ECB) revealed that Europeans perceived offline payments to be the most innovative digital wallet feature with its use in specific situations, e.g. in areas without internet coverage, when mobile data isn’t available, or when using flight mode.

(Despite this, most participants expected they would not often use offline payments, which tells me is that neither the pollsters nor the public understood what offline payments are for or how they will be used at population scale, but that’s a different point.)

xxx

Why it matters: More businesses are eschewing cash — a trend accelerated by the pandemic — but states and cities are passing laws banning them from doing so, in deference to people who don’t have bank accounts or credit cards.

Handling cash is also a hassle for retailers, with problems including theft and constant runs to the bank.
Driving the news: Reverse ATMs — also known as cash-to-card kiosks — are quickly being installed in all manner of venues that want to go cashless without flouting the law or turning away the “unbanked,” who represent 4.5% of Americans, per the FDIC.

Amusement parks, casinos and sports stadiums are taking the lead.
Reverse ATMs have been installed at most Major League Baseball and National Football League ballparks, plus cashless attractions like Hersheypark, Six Flags and many waterparks.
“Cash digitization” is the term that’s catching on for converting cash to electronic currency — which is increasingly necessary as transit systems and other public accommodations also go cashless.

From Cashless stores accept money, dispense cards with “reverse ATMs”:

xxx

xxx

What happened to Cristina – a Financial Times technology correspondent and a friend and former colleague of mine – is what TikTok and its parent company, ByteDance, have consistently denied happens at all, which is why she has decided to tell BBC News about it. TikTok has confirmed members of its internal audit department looked at the location of Cristina’s IP address – the unique number of a device – and compared it with the IP data of an unknown number of their own staff, to try to establish who was secretly meeting with the press. They “misused their authority” to do this and were acting unauthorised… Cristina’s TikTok account was on her personal mobile handset – and in the name of her cat, Buffy. Her own name and occupation were not mentioned in the bio.

From TikTok tracked UK journalist via her cat’s account – BBC News.

xxx

xxx

Some 19 per cent of UK adults surveyed by finder.com said they would “consider getting financial advice” from ChatGPT, while another 8 per cent say they had already taken financial advice from the chatbot.

From ChatGPT ‘portfolio’ outperforms leading UK funds | Financial Times:

xxx

 

xxx

However, he said research in 2021 indicated that half of UK investors used social media for investment advice.

“Would you rather get your advice from an unqualified TikTok star or AI that is capable of processing millions of data points from around the web and giving tailored advice?”

From ChatGPT ‘portfolio’ outperforms leading UK funds | Financial Times:

xxx

xxx

In a change to the online safety bill, video footage that shows people crossing the Channel in “a positive light” will be added to the list of illegal content that all tech platforms must proactively prevent from reaching users. The culture secretary, Michelle Donelan, said that posting positive videos of crossings could be aiding and abetting immigration offences.

From A ban on ‘positive’ videos won’t stop the Channel crossings, but it may well cause more tragedies | Diane Taylor | The Guardian:

xxx

xxx

As we look into the payments space five to 10 years from now, what are you most excited to see?

The biggest one would be the tokenization of everything

From Mastercard Chief Innovation Officer on the Reimagining of Money:

xxx

xxx

DeVille goes on to advocate for an alternative method of age verification, which would require users to identify themselves through their devices.

PornHub will not be accessible to Utah residents until a “real solution is offered,” she adds, urging people to contact their state representatives to demand “device-based verification solutions.”

From Pornhub Blocks Access in Utah in Response to Age Verification Law:

xxx

xxx

The Online Pornography Viewing Age Requirements law mandates commercial entities that distribute adult content to verify their users’ ages by having them upload personal information from state-issued IDs. The law also allows parents of minors who come across pornography or other materials deemed harmful to sue companies that do not comply with the new law.

From Pornhub Blocks Access in Utah in Response to Age Verification Law:

xxx

xxx

Making a nickel costs more than double what it’s worth. As of last year, every nickel cost 10.4 cents to make, up 40.2% from 7.4 cents in 2020, according to a biennial mint report published last week.

Dimes and quarters are worth more than they cost, but the margins for both have shrunk significantly over the past two years. The cost to make a dime increased from 3.7 cents in 2020 to 5 cents in 2022 — a 34.9% increase. Meanwhile, the cost to make a quarter went from 8.6 cents to 11.1 cents — a 28.7% increase.

From The U.S. Mint Says Coins Are Getting Too Expensive to Make | Money:

xxx

xxx

During 2022, more than $7 billion in remittances were sent to the Central American country; however, only $126 million were sent using cryptocurrencies, according to Prensa Latina.

From Crypto Remittances to El Salvador Down 18% in Early 2023:

xxx

That means that Bitcoin is less than 1.5% of remittance volumes, and it is actually falling, not rising. Cryptocurrency remittances are down around a fifth year-on-year.