India puts cap on third party wallets; Spanish banks team on digital ID

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Digital ceiling

The National Payments Corporation of India is limiting the volume of Unified Payments Interface transactions from third party apps to 30% of the rail’s total volume.

The NPCI is making the move, effective in January, to address risks to UPI as it scales, reports Gadgets NDTV, a local technology site. It could adversely impact Google and PhonePe, which make up a vast majority of UPI’s volume. UPI just passed two billion monthly transactions for the first time in September.

Google has been subject to legal complaints in India, alleging the search giant is operating on UPI without proper authorization. Google and Paytm, which has a much smaller share of UPI but has roots in India, have recently squabbled over access and gaming payments.

New identity

A handful of Spanish financial institutions are collaborating on a digital authentication model that uses blockchain.

Called Dalion, it recently completed a proof of concept test and plans to debut in May 2021, according to Finextra. Santander, LiberBank, Caixa Bank, BME and BME are part of the initiative, which allows people to have a single digital identity that can be stored on their mobile device. The consumers would have full control over who accesses their data.

The banks and participants from other industries envision use cases such as payment authorization, ride-share hiring or facility access. Blockchain is considered a strong option to build interoperable ID that allows a migration away from usernames and passwords. The Spanish project is based on Alastria, which uses the Ethereum and Quorum blockchain.

Branching out

Coinbase is adding staff and expanding its presence in Japan ahead of launching its cryptocurrency exchange locally.

It’s adding IT, finance, data and international expansion experts, part of a long-time goal at Coinbase to enter one of the world’s largest cryptocurrency markets, reports Coindesk.

In March Coinbase became a member of the Japan Virtual Currency Exchange Association, a self-regulatory agency that has the blessing of Japan’s banking regulators.

Pocket cash

German startup Vivid Money has raised $17.6 million from Ribbit Capital to fund its challenger bank.

Vivid, which has a valuation of about $117 million, started signing up consumers for its digital financial services and metal debit card a few months ago, reports TechCrunch. The card can be controlled through a mobile app, and also works with Apple Pay and Google Pay.

The app also has sub-accounts called pockets, each with its own IBAN. Consumers can invite other users into “pockets” and can associate cards with one pocket or another, according to TechCrunch.

From the web

U.S. seizes over $1 billion in bitcoin tied to ‘Silk Road’
REUTERS | Thursday, November 5, 2020
The U.S. Justice Department announced Thursday it had seized over $1 billion worth of bitcoin associated with the underground online marketplace Silk Road.

Amazon to invest $2.8 billion to build its second data center region in India
TECHCRUNCH | Thursday, November 5, 2020
Amazon will invest about $2.8 billion in Telangana to set up a new AWS Cloud region in the southern state of India, a top Indian politician announced on Friday.

South Korean Crypto Firms Must Disclose Users’ Identities Under Planned Law Change
COINDESK | Thursday, November 5, 2020
South Korea’s Financial Services Commission (FSC) is seeking legal amendments that would make it mandatory for virtual asset service providers (VASPs) within the country to report the names of their customers.

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