In today’s top news in digital-first banking, the government of the Philippines is considering limiting the number of digital banks that run in the country, while Ripple introduced its Line of Credit beta offering. Plus, the Federal Reserve is working with seven central banks and the Bank for International Settlements (BIS) on a framework for digital currency.
The Philippines government is mulling restricting the count of digital banks that run in the nation. The consideration of possible restrictions is part of a policy review procedure that could create new laws governing digital banks by the close of 2020. Bangko Sentral ng Pilipinas Governor Benjamin Diokno said during an online meeting that digital banks might face the same rules as traditional banks when the review is finished.
Ripple unveiled its Line of Credit beta offering that it says lets its FinTech clients harness the XRP cryptocurrency to send international payments. The enterprise blockchain service firm said on its website that Line of Credit could assist in bringing down the cost of capital for companies. Line of Credit functions on the RippleNet platform, and Ripple said it had successfully tested out the program with current RippleNet clients.
The Fed is working with seven central banks and the Bank for International Settlements (BIS) to figure out a structure for cryptocurrency. The Swiss National Bank, the European Central Bank and Bank of Japan are among the central banks working with BIS. A May BIS poll of 66 central banks found that 80 percent are working on central bank digital currencies (CBDCs).
Bank of America (BoA) introduced its Balance Assist short-term loan program designed for clients who require a few hundred dollars to make ends meet. Clients can seek as much as $500 in increments of $100 for a fixed $5 charge with repayment in three installments during a time frame of three months.