Today In Digital-First Banking: BNY Mellon Debuts E-Bill Tool On RTP Network; Banks Express Caution Over Digital Currency
In today’s top news in digital-first banking, BNY Mellon debuted a digital billing tool on the RTP network, while large banks are expressing caution over digital currency. Plus, the Bank of Mauritius is reportedly aiming to roll out a central bank digital currency (CBDC).
BNY Mellon announced that it has become the first bank to harness the RTP network to equip companies with an instant digital bill pay offering for clients. The functionality will allow businesses to provide customers with electronic and real-time bills through the RTP network operated by The Clearing House and obtain instant payments from a client’s bank. “This transformational solution promises significant change by delivering ubiquitous 24/7/365 digital capabilities that will improve their end-to-end payment interactions,” BNY Mellon said in an announcement.
Leaders from the largest U.S. banks testified in front of the U.S. Senate Banking Committee on Wednesday (May 26) to express concerns regarding digital currencies. “Before we engage with cryptocurrencies, we see it as our responsibility to ensure we have clear governance and controls in place,” Citigroup CEO Jane Fraser said in her written testimony. Wells Fargo CEO and President Charles Scharf testified that the bank would keep a close eye on the development of digital currencies, “which have emerged as alternative investments products, though their status as a currency and mechanism of payment remains fluid.”
The Bank of Mauritius is reportedly seeking to roll out a CBDC by 2021’s close. “CBDCs will be here to complement, and to address gaps that the traditional monetary system is not able to fulfill,” Bank of Mauritius Governor Harvesh Seegolam said at CoinDesk’s Consensus 2021. The news comes as central banks globally are examining the potentiality of digitizing their fiat currencies.