Snippings

Mark Gould, chief payments executive for Federal Reserve Financial Services at the Federal Reserve, told PYMNTS that the Fed is fine-tuning its focus to streamline the embrace and use of digital, speedier payments.

Initially, key FedNow features (already in pilot) will include bill pay and request for payment, or RFP. In the case of the latter, with additional technology in place, a cellphone, utility provider or other biller could send a consumer a text with a link to click to complete the transaction. FedNow RFP will enable the exchange of rich data, such as underlying transaction details, which can serve as a useful record and allow billing organizations to streamline their reconciliation processes.

Other initial FedNow features and use cases will include account-to-account transfers and liquidity management transfers.

From Fed’s Prepares Instant Payments ‘Easy Button’:

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The People’s Bank of China ordered Tencent, Meituan and other large platforms to share user data, ranging from shopping records to travel history, with two state-backed groups, Baihang and Pudao, by early next month, according to people briefed on the negotiations.

Baihang and Pudao would in turn provide a feed of the data to banks for a fee, in order to help them assess potential borrowers’ creditworthiness, but the internet groups are resisting the arrangement, the people said.

Last year, the PBoC moved to ban online platforms from the direct sale of their user data to banks, citing fears about the possible misuse of personal information. But one central bank adviser said the practice had continued because lenders did not want to pay the higher fees charged by Baihang and Pudao.

From China’s central bank struggles to force tech groups to share user data with state | Financial Times:

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Many Chinese banks, especially smaller regional lenders, rely on internet companies’ troves of user data and analytical tools to identify creditworthy borrowers. According to public records, outstanding bank loans issued jointly with online platforms increased 22 per cent last year over 2020, compared with just 12 per cent overall loan growth.

However, a study by Renmin University in Beijing found that internet companies would incur as much as an 8 per cent increase in costs after surrendering data and analysis to the credit scoring groups.

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The idea of a privacy gradient comes from architecture and refers to the way that public, common spaces are located by the entrance to a building and as you progress through the building the spaces become more private until you reach the most private ‘inner sanctum’.

From Strange Attractor | Tackling Twitter abuse:

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BBS signatures and progressive disclosure

 

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According to several digital asset lawyers, the popular disclaimer “this is not financial advice” — may not actually protect them in the eyes of the law.

From Saying ‘not financial advice’ won’t keep you out of jail: Crypto lawyers:

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Large technology firms and financial start-ups are bundling payments with digital services, such as online marketplaces, messaging apps and financial services (for example lending and insurance). While banks continue to provide the underlying payment rails for these solutions, they are losing access to the customer interface.

From Cold hard (digital) cash: the economics of central bank digital currency:

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According to data from Juniper Research (September 2022), global spending on digital identity verification checks will rise from US$11.6 billion in 2022 to US$20.8 billion in 2027, and is expected to reach US$40 billion.

From Digital identity verification to top $40 billion in 2032 – What is new? – Security Boulevard:

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Third, a CBDC could help to preserve privacy. Private enterprises typically seek to profit from the personal data they can collect when people make digital payments, which can discourage their use in the first place – an inefficient outcome. A CBDC could be designed to provide users with more control over their data, for example over whether they choose to share personal data with third parties to receive more personalised services. This can foster efficiency and welfare in the digital economy (Ahnert et al., 2022b).

From Cold hard (digital) cash: the economics of central bank digital currency:

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JPMorgan Exploring Applications of Digital Identity

The bank’s potential digital wallet would enable people to choose digital identity credentials they want to share across Web3, DeFi and the metaverse

From JPMorgan Exploring Applications of Digital Identity – Blockworks:

 

The banking giant published a video detailing a planned solution enabling people to choose the identity credentials they want to share in their interactions across Web3, the metaverse and DeFi protocols.

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Privacy protection is one of the top issues among the many still remaining when it comes to the use of China’s central bank digital currency (CBDC), the digital yuan, according to China’s Central Bank Governor Yi Gang.
“It is also important to keep in mind that anonymity and full disclosure are not as simple as black and white. There are many subtleties in between,” Gang said during a virtual speech at Hong Kong FinTech Week. “Therefore, we must strike a delicate balance between protecting privacy and combating illicit activities.”

From Privacy Protection a Top Issue for Digital Yuan: China’s Central Bank Governor:

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Prove Auth enables companies to reduce reliance on passwords and one-time passcodes (OTPs) and empowers consumers to frictionlessly authenticate in all channels including phones, desktops and call centers with a solution that is simple, cost-effective, and secure. Prove Auth protects consumers from fraud including account takeovers.

Prove Auth is powered by Pinnacle™, Prove’s identity platform which manages identity tokens for 90% of the US adult population and is rapidly expanding globally. Prove’s identity tokens enable passive authentication with unparalleled accuracy versus legacy methods that are probabilistic and cumbersome.

From Prove Announces the Launch of Prove Auth™ to Deliver Next-Generation Passwordless Identity Authentication | Business Wire:

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