Today In Digital-First Banking: India’s Central Bank Leaves Crypto Decision To FIs; Citigroup Mulls Offering Digital Currency Services
In today’s top news in digital-first banking, the National Payments Corporation of India (NPCI) won’t be blocking cryptocurrency trades, while Citigroup is looking into the rollout of services to support cryptocurrency. Plus, Kazakhstan is the latest nation to think about a possible central bank digital currency (CBDC).
The NPCI won’t be blocking digital currency trades. The umbrella body for retail payments intends to leave the decision up to individual financial institutions, allowing them to determine their own risk level. This news comes as some financial institutions have blocked the occasional digital currency transaction or investment.
Citigroup is looking into the launch of services to support digital currency after receiving a number of requests from clients. The financial institution is mulling over rolling out crypto trading, custody and financing services. “There are different options from our perspective, and we are considering where we can best service clients. This is not going to be a prop-trading effort,” Itay Tuchman, Citi’s global head of foreign exchange, told the Financial Times.
Kazakhstan is the newest nation to mull over a possible CBDC. The National Bank for the Republic of Kazakhstan said it intends to refer to the new token as the “digital tenge.” In the country, the tenge is the basic monetary unit and is typically worth 100 teins, or $0.23. The bank will offer the infrastructure for the CBDCs.
A Financial Stability Report from the Federal Reserve indicated that the ultimate length and scope of the pandemic remain as among the “most significant risks to the financial system.” If the duration of the coronavirus pandemic would be longer than anticipated, the Fed said that downward pressure on the U.S. economy could disrupt the ongoing recovery.