# FA Global Product technology update — Remittance Continue to Grow Central banks’ growing their CDBC work
Dear Members,
There is some general news on trends on payments, importantly our operations team has listed a few key updates and advancements on our progress the team is overloaded with progress and the summer break is near the end.
Central bank digital currencies (CBDCs) have been a topic of interest for central banks for some time, but a survey of central banks published this week by the Bank for International Settlement highlights that the focus on technology continues to increase.
The https://www.bis.org/publ/bppdf/bispap147.htm of 86 of the world’s central banks found that 94% now report working on CBDCs in some form — the highest since the organisation began its yearly survey. The vast majority (around 68%) now report working on CDBCs that combine solutions for both wholesale and retail, while slightly under a third of those who are conducting CDBC work are focusing exclusively on retail solutions. While combined CDBCs have a slightly lower share than last year, they continue to account for more than half of CBDC work — something that has been the case since 2021.
While there was an increase in the number of central banks engaging in both proofs-of-concept and full pilot initiatives in 2023, with abstract research dropping, the number of live or close-to-live CBDCs remains very low.
Interestingly, there is some convergence here between advanced economy (AE) central banks and those in emerging markets and developing economies (EMDEs). AEs saw a significant jump in the number of banks running pilots (up 23 percentage points to 33%) or proof-of-concepts (up 21 percentage points to 81%). However, this growth was less pronounced among EMDEs, which saw a three percentage point increase in pilots (19%) and a two percentage point increase in proof-of-concepts (to 39%). There has also been a much greater increase in retail CBDC proof-of-concepts among AEs.
Ensuring the singleness of money and warding off potential threats from new forms of privately issued money remains a significant driver for many central banks. However, on the retail side many central banks see potential efficiency gains as being key, while on the wholesale side, cross-border payments continue to be a key driver.
Can Ripple’s stablecoin help it win back the payments industry?
Just days after the company received a critical ruling on its multi years-long lawsuit with the SEC, Ripple has begun testing its upcoming stablecoin Ripple USD (RLUSD). With the company looking to re-engage with the Western payments market, could a stablecoin be key to winning back the cross-border payments industry?
Having first announced that it was planning to launch a stablecoin in April of this year, Ripple last week confirmed the name RLUSD, laying out further details in a blog post and podcast, alongside announcing that it had begun testing. While no release date has yet been confirmed, the stablecoin is thought to be getting a full launch later this year.
Issued by Ripple’s recent acquisition Standard Custody, a New York State Department of Finance-regulated digital asset custodian with a strong enterprise focus, the stablecoin comes as Ripple is increasingly looking to re-engage with the Western, and particularly the US, payments industry. While it was once one of the hottest names in the space, claiming hundreds of bank partnerships and hailed as a key driver of the future of cross-border payments, in late 2020 the US Securities and Exchange Commission filed a lawsuit against it concerning specific early sales of its cryptocurrency XRP and alleging that XRP was an unregistered security, leading the payments industry to quickly distance itself.
However, last week the judge on the case returned a split decision, ruling that XRP was not a security and ordering Ripple to pay $125m — much lower than the SEC’s requested $2bn. In anticipation of the legal case’s conclusion, the company has already been making moves to re-engage the industry, with US companies currently only accounting for 10% of its customers. So far, the company has rebranded its cross-border payments solution from RippleNet to Ripple Payments and bolstered its US regulatory position, and RLUSD — which looks set to most closely rival Circle’s USDC — may prove to be a critical part of its ongoing efforts.
The European Union and MiCA
The EU’s Markets in Crypto-Assets Regulation(MiCA) is one of the most comprehensive frameworks for regulating crypto assets, including stablecoins. MiCA classifies stablecoins as “electronic money tokens” and requires issuers to be authorized and supervised by national competent authorities. This ensures compliance with Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations.
If launched in the EU, Ripple’s stablecoin would need to comply with MiCA’s requirements. This includes obtaining authorization as an electronic money institution, maintaining adequate reserves and adhering to strict capital adequacy rules. While this adds a layer of complexity, it also provides a clear path for legitimate stablecoin operations within the EU.
U.S. stablecoin regulations
The U.S. regulatory landscape for stablecoins remains fragmented. Unlike the EU’s centralized approach, the U.S. relies on a patchwork of regulations from different agencies, including the Securities And Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The SEC has focused on whether certain stablecoins qualify as securities, potentially subjecting them to federal securities laws. Ripple’s ongoing legal battle with the SEC regarding XRP’s classification as a security highlights the uncertainties surrounding stablecoin regulation in the country.
Dear Valued Members,
Our operations internal team has listed a few key updates and consolidations.
FA GLOBAL BK FINANCE Ltd.’s online money transfer service has continued in development to 2.0 and is at the stage of completion, data and APIs are being migrated from the existing 1.0 redundant system could be re-activated developed or sold and will be decided at a later stage.
The new 2.0 System desktop version is at a 99% completion point for business user desktop access only, providing any business, or merchant the opportunity for compliance, governance, and monitoring of transactions and SAAS module for business and fintech institutions that are looking to build a compliant payment system across for the EU and our key markets Asia and African regions. www.moneypings.com The aim is to build on our margins and increase our target partner payments network.
The team is currently mapping 2 years of data-added AI functions, and APIs across Asia the system is also being prepared for the added authorisation submission a plan including an application for a license in Africa submitted a few weeks ago more details be followed up to which country.
The Forex County retail app has BETA 1.0 testers, IOS and Android, and language translation on final compliance view, and upon approval, we will launch it.
CENTS Pay will be downloadable on final approval currently retail users and compliance are BETA testing on Android both APPs will managed, and monitored under Moneypings.
Pls note, that when announcing and launching our service application due to legal, and new authority regulations that come into force this creates a certain number of development adjustments to make sure we comply it is appropriate with the measures taken this always adds to development time.
What’s Changing?
The UK’s Payment Services Regulator (PSR) is introducing new rules to enhance protection for victims of APP fraud. Starting from October 7, 2024, all Payment Service Providers (PSPs) using the UK’s Faster Payments Service (FPS) will be required to fully reimburse victims for losses resulting from APP fraud.
Under these regulations:
- The PSP initiating the transaction must refund 100% of the fraud-related losses to the victim within five days of the fraud being reported.
- The PSP that received the fraudulent funds will then be responsible for reimbursing 50% of the lost amount to the sending PSP.
Audited 06/06/24
FA HQ London system controls and policies were Audited externally on 06/06/24 for years 2021–2024, low risk with a couple of key suggestions to progress, we have an outcome during August and September which will determine our future action plans.
Adding hiring additional Director/NED, developer, and compliance is being currently selected we are searching for our candidates.
BOGO Deals, the APP, and the voucher System have been sold for an undisclosed amount a further amount has been offered for the branding and merchants signed up we are still deciding whether we have reinvested this into our GP project.
FA will soon announce the SWISS investment made in 2022 for the new technology blockchain payments, we have been in collaboration for 2 years more details will follow.
Estonia FA GLOBAL FINANCE OÜ’s business vision is financial embedded payments borderless blockchain software services. To achieve this, we paid attention to embedded on-chain fintech applications, OTC desk for institutes www.blockshield.finance compliance for BTC ETFs funds, now as an additional A 2024 MOU signed called STARTBUTTON building bank as a service and payment products in the region of Africa adding currency with advantages for us such as our 2021 plan for decentralization, integrity, and transparency. As a result, why we have developed and leveraged the technology of GP Coin and its Platform. We will provide the links very soon the service will be active in 8–10 weeks after 12 months of testing banking partners are being selected.
Recently In June 2024, the FA Global CEO attended a key government blockchain event in South Korea https://www.jbnu.ac.kr
A signed MOU, a strategic opportunity with South Korean firm BORABIT provides blockchain that is also building financial services offerings to Africa projects.
GP Updates
The company is planning key comprehensive updates to the chain and systems to boost the potential value and ecosystem of XGP. These updates are expected to significantly impact business development, with a coordinated schedule aimed at completion within 2024.
Thanks, OP Team.
FA Global BK Finance is a Fintech company, founded in 2011 as a consultancy on one core simple belief: improving borderless technology by giving access to ID & financial inclusion. 2020 Our foundation consistently has grown from legacy 2.0 and merged 3.0 applications products and blockchain services.
As a disclaimer, This article explores company updates only, new technologies like payments NFTs, and cryptocurrencies and their potential uses. This is for informational purposes only. It is not offered or intended to be used as legal, investment, financial, or other advice.
