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Digital money in China: The People's Bank of China has successfully tested its own digital currency, making it the first central bank in the world to do so, according to Chinese media agency Caixin. The report said the trial included transactions and settlements using the internally developed digital currency. A group of commercial banks participated in the test, including the Industrial and Commercial Bank of China, and WeBank. The central bank will next set up a research unit for digital currency, including people with expertise in advanced data management, cryptography and blockchain. The central bank's digital currency platform will eventually connect to the Shanghai Paper Exchange to operate a national platform for digital currency. The new currency will enter circulation along with paper bills.
Traffic passes the China Central Television (CCTV) headquarters, right, and other commercial buildings in the central business district in Beijing, China, on Monday, Sept. 8, 2014. China is scheduled to release figures on consumer and producer prices on Sept. 11. Photographer: Brent Lewin/Bloomberg
Brent Lewin/Bloomberg
Blockchain bonds down under: Blockchain uses are proliferating so fast that companies like fleet card provider WEX are getting on board before they're even sure about how the technology will be helpful. In Australia, blockchain is advancing as a government bond tool. Financial Review reports Commonwealth Bank of Australia has successfully tested blockchain, with Queensland Treasury Corporation using the distributed ledger to generate a bond offer, view bids, finalize investment, execute payments and settle with buyers. The bond used smart contracts, which automatically paid the bond's coupons to holders at the due date. The bank's blockchain team built the technology in its innovation lab in conjunction with the bank's debt markets team.
Germany wants stable fintech regs: In a volatile political climate where countries are competing to lure financial technology companies away from each other by easing regulations, German is seeking a common regulatory criteria. In a speech at the G20 conference, Jens Weidmann, president of Bundesbank, warned regulatory loopholes could cause lax risk management, which could lead to a financial crisis similar to the credit collapse in the last decade. As Germany assumes the G20 presidency, Weidmann called for a framework that all members would use when regulating financial innovation to create a level playing field.
Scotiabank puts funds into AI project: Beyond some early deployments such as a security project at Mastercard, artificial intelligence is still early stage, early enough that many payment and other financial professionals still lack knowledge about the technology. Hoping to spot new uses, Scotiabank is sponsoring NextAI, a Canadian program designed to encourage young people to develop AI applications. The bank will provide $1 million over the next three years and will provide speakers and support for program participants. The bank in 2016 created the Scotiabank Disruptive Technologies Venture at The Rotman School Management in Canada.
Alibaba's success leaves room to innovate Business Insider • B.I. Intelligence Chinese e-commerce giant Alibaba trounced analyst expectations in Q4 2016, highlighting strong growth and performance across the majority of its business segments.
In the age of Amazon, First Data pushes merchant flexibility Amazon and other e-commerce disruptors are turning long-held retail models upside down, but in doing so they create a lifeline for retailers who see them as an opportunity rather than a threat.
More than 13M same-day ACH payments made in late 2016 U.S. banks and credit unions processed more than 13 million same-day payments between Sept. 23, the launch date for recent improvements to the automated clearing house system, and the end of 2016.
The Cincinnati bank aims to grow in northeast Ohio with the acquisition of Westfield. The deal is expected to boost First Financial to a $20.6 billion institution.
House Financial Services Committee Chair French Hill, R-Ark., declined to say whether he would pass the Senate's GENIUS Act without making his own changes, as President Trump has preferred.
Nissan Motor Acceptance Corp. has applied for an industrial loan company charter, joining General Motors and Ford in hoping for better prospects for approval under the Trump administration.
Barely two years after adopting a bank charter, NewtekOne in Florida plans to expand beyond its roots as an SBA 7(a) lender by growing its alternative loan program.
