Latest global banking news

July 6, 2022 12:17 PM

In global news this week, the European Central Bank weighs in on fractured crypto regs, China's digital wallets come to Qatar, Amazon brings buy now/pay later to Egypt, and more.

Here's what's happening around the world.

European Central Bank worried about fractured crypto regs

While the European Commission recently set standards for crypto assets across the European Union, regulators are still trying to prevent individual national regulations from creating inconsistencies. The ECB is preparing a warning to individual central banks to share information over the next 18 months to make sure cryptocurrency rules are interoperable between nations and with the larger EU, reports the Financial Times. The EU standards, called Markets in Crypto Assets, are scheduled to go into effect in early 2023. The EU is concerned that differences in standards for other nations lead to venue shopping for cryptocurrency companies seeking a lower regulatory burden. —John Adams

Amazon extends buy now/pay later to Egypt

While BNPL fintechs are hitting a rough stretch in terms of falling valuations and increasing regulatory scrutiny, the model is still expanding. Amazon is partnering with buy now/pay later fintech valU to offer point-of-sale credit for Amazon Egypt. Consumers select a payment option that is based on a credit limit provided by valU with a minimum spend of about $26. Payments can be spread over 6 to 60 months without a down payment. Amazon's BNPL partnerships also include Affirm, which appears as a payment option alongside cards and mobile wallets in the U.S. and other markets. —John Adams

Chinese payment apps expand in Qatar

Qatar National Bank has added support for WeChatPay and AliPay+, allowing the two China-based digital wallets to gain a foothold in the country. Qatar National Bank is the first bank in the nation to support WeChatPay and AliPay+, covering 31 countries in the region. WeChatPay and AliPay+ have both partnered with fintechs and banks in numerous markets over the years, building a base of consumers from China who wish to make own-currency payments in-person or online; and merchants seeking to reach Chinese consumers. The models for both companies have helped boost other mobile payment options as well. —John Adams

Wirex offers crypto-backed credit

Wirex, a London-based digital payment provider, launched a crypto-backed credit loan offering called Wirex Credit. The program allows users to apply for loans of up to $100,000 in major stablecoins including USD Coin, Tether and NXUSD. The credit can be used wherever Visa or Mastercard are accepted. “Wirex's vast ecosystem of products means there are huge opportunities for using Wirex Credit," Pavel Matveev, chief executive and co-founder of Wirex, said in a press release on Tuesday. —Paige Hagy

Bank of England says digital pounds unlikely to work like cash

The Bank of England is unlikely to offer a digital form of the pound that works like banknotes, opting instead for an instrument managed through some sort of account. Deputy Governor Jon Cunliffe, who is overseeing the BOE’s work on central bank digital currencies, said policy makers are thinking about how to make the pound work better for consumers in online transactions. However, the new form of currency is unlikely to be a “bearer” instrument like banknotes, where no information is recorded about the holder. That reflects concerns that new digital pounds could be used in crime and money laundering. “I think it’s very unlikely that any of us would issue a retail CBDC as a bearer instrument,” Cunliffe said at a panel discussion in London on Wednesday. “It would probably be some form of account-based instrument.” —Reed Landberg, Bloomberg News