India's CBDC project gets larger, Visa/Mastercard expand in Egypt

The Reserve Bank of India is conducting several tests of the country's central bank digital currency, including programmable payments and a push to support retail CBDC transactions in rural or low-internet areas. The programmable payments could include using the digital rupee to schedule payments at a certain time, or under certain conditions, reports the Economic Times of India and other local media, citing commentary from an RBI press conference. The tests will also determine how the CBDC could be used to make payments offline, which would address access for a wider range of merchants. Retail CBDCs are a type of digital currency which is designed for consumer transactions such as in-store payments, and are considered more difficult to design and build. Wholesale CBDCs are designed for larger transactions between governments or large banks and have progressed faster. —John Adams 

Visa has signed a memorandum of understanding with government agencies in Egypt to improve processing for transfers from expatriates to relatives inside Egypt. The card network is working with Egyptian Banks Co. for Technological Advancements (EBC), an organization that operates and builds new payment systems for the Central Bank of Egypt. The program will use Visa's technology and EBC's infrastructure to support digital wallets, electronic payments and other products. The initial project will enable consumers to initiate transfers from Visa accounts to recipients through Egypt's instant settlement network. Another project will include partnerships with commercial banks to support payments via the recipient's mobile phone number. Visa's recent work with central banks includes a partnership to develop Brazil's central bank digital currency to enable local farmers to access clients in other nations. —John Adams

Mastercard was also active this week in Egypt, signing a partnership deal with Al Baraka Bank to support payment products for consumer, commercial and small-business customers. The card network is seeking to grow its financial inclusion efforts in the country, which, like most nations, is moving away from traditional cash-based payments toward digital, which could leave out certain businesses and consumers that cannot afford to upgrade. By using Mastercard's technology and consulting services, the bank plans to develop products that reach a wider audience at less expense. Mastercard in the past year has pushed financial inclusion initiatives in dozens of countries, including the U.S., where it has extended grants to small businesses in underserved communities in Atlanta, Birmingham, New Orleans, New York and St. Louis. Mastercard also works with technology partners to extend access to digital tools for small businesses and oversees mentorship programs. —John Adams