“Digital Transformation Worldwide” – Thurs. PM KTFA Thoughts, News w/ MilitiaMan 12-30-21

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Samson » December 30th, 2021

Disruption of official working hours in Iraq on the occasion of the New Year

30th December, 2021

The Prime Minister, Mustafa Al-Kazemi, directed the suspension of official working hours on Sunday, 2/1/2022, in all ministries and agencies not associated with the ministry and state institutions, on the occasion of the New Year.

This came during the cabinet session, held today, Thursday, according to a statement issued by the General Secretariat of the Council of Ministers.  LINK

Iraq will suspend official working hours next Sunday

30th December, 2021

The General Secretariat of the Council of Ministers announced, on Thursday, the suspension of official working hours on the occasion of the New Year.

And the secretariat stated in a statement received by / Mawazine News / a copy of it, that “the Prime Minister directed, during the cabinet session, held on 12/30/2021, to suspend the official working hours on Sunday, corresponding to 2/1/2022, in ministries and agencies not affiliated with a ministry. and all state institutions. He added, “This came on the occasion of the New Year’s Day.”  LINK

Enhancing the security of electronic money in the digital age

30th December, 2021

With the increasing use of digital money, regulators should focus on protecting consumers and the integrity of the payments system as a whole.

Imagine if you went to pay for your morning coffee and your stored value card fired an error message, or the wallet stored in the payment app on your phone didn’t open because the payment service company went bankrupt. Even worse, what if you live in a rural area and the electronic money service you get on your mobile phone is your only entrance to the financial system? Rather, what if your government had become dependent on the electronic money system on a large scale in order to transfer benefits or collect taxes?

Forms of digital money – including central bank digital currencies, private entity cryptocurrencies, and cryptocurrencies – are still taking shape and finding new ways to become more integrated into people’s daily lives. Essentially, electronic money is a digital representation of the traditional legal release currency guaranteed by the issuer. Customers exchange regular cash for electronic money that they can easily use to make payments instantly via an app on their mobile phones, whether it is between individuals or businesses.

Compared to other forms of digital money that have emerged recently, such as stablecoins, electronic money has been around for a while and is rapidly expanding in its customer base. Unlike most stablecoins issued by private entities, electronic money operates within a regulated framework.

For the regulatory and supervisory agencies charged with protecting consumers and creating conditions that ensure fair competition among all financial intermediaries, it may be difficult to keep pace with the pace of new developments. Regulators and regulators should, in this case, consider how best to protect customers from electronic money issuers’ failure (potentially systemic), including preventing them from losing their money.

In a new study, fund experts are examining these and other scenarios that may make customers, and possibly electronic money systems, vulnerable. We also look at how regulatory practices are evolving in each country, and make a set of policy recommendations on regulating e-money issuers and protecting customer funds.

Electronic money provides solutions to perform payments for non-dealing with the banking system

We can think of electronic money as an electronic store of monetary value in a prepaid card or electronic device, often a mobile phone, that may be commonly used to make payments. The stored value also represents a mandatory entitlement on the issue of electronic money, according to which its customers can demand at any time to repay the money they used to purchase electronic money.

Digital money is an essential part of the lives of billions of people, especially in many developing countries, where many are unable to benefit from the banking system. As the chart below shows, electronic money is now used by a large proportion of the population in a number of East African countries, which makes it important from a macro-financial perspective. 

It is estimated, for example, that two-thirds of the adult population in Kenya (where M-PESA mobile money transfer service has a high market penetration), Rwanda, Tanzania and Uganda combined use electronic money on a regular basis. Many of them do not have bank accounts or any other avenues to benefit from the formal financial system, so they store large proportions of their available funds in electronic money wallets and access them using mobile phones and computers.

Protecting financial systems and consumers alike

With the increasing importance of electronic money issuers, it is necessary to have a comprehensive and robust framework to regulate and protect the movement of customer funds.

Issuers should be subject to prudential regulatory requirements commensurate with the risks. For example, they should establish systems for the governance and management of operational risks in order to identify and mitigate risks. They should also be prohibited from engaging in retail lending activities. To protect consumers who may be less in-depth than bank customers, rules should be in place that govern how issuers disclose fees, protect consumer data, and handle complaints.

One of the most important organizational measures identified by our study is the need for electronic money issuers to implement mechanisms to keep customer funds and separate them from other funds in order to protect them. These entities should maintain a secure pool of liquid funds equivalent to the amounts of customer balances, and should be kept separately from the issuer’s own funds. This procedure represents an essential tool to prevent misuse of funds and is expected to allow, in principle, to recover these funds in the event of bankruptcy of the issuer.

However, keeping clients’ funds separate does not solve all the problems if an issuer fails that may be of systemic importance. In the absence of specific rules for bankruptcy, segregation alone is not sufficient to ensure rapid access to customers’ funds, and such a disconnect may create severe problems if the issuer plays a potentially systemic role in the payments system and in the day-to-day transactions of the country concerned.

Potential systemic importance, and potential problems

Regulatory and supervisory agencies may need a significant degree of support for the prudential supervision function and user protection arrangements, depending on the existing business model and the size of the electronic money system. In countries where e-money issuers or sectors have potential systemic importance, safeguards should be sought to preserve customer funds and ensure the continuity of critical payment services.

While some countries have sought to extend the scope of deposit insurance to include electronic money, more efforts in this regard may be required to activate this protection and ensure its effective application. In particular, clients should not lose access to their funds and therefore services should be able to be resumed or replaced promptly, preferably within hours. But the practical application of electronic money deposits remains uncharted territory for now – at least in practice. Careful consideration should be given to the costs and benefits of physically extending deposit insurance coverage to electronic money.

As with many issues in fintech, best practices are still being formed, and policy decisions are fraught with challenges. However, the pandemic has only reinforced the importance of rational frameworks for electronic money, in light of the rapid increase in the number of transactions conducted via the Internet and the steady growth in electronic money. As for the regulatory and supervisory bodies, now is the time to act.  LINK

Source: Dinar Recaps


MilitiaMan Full Post here:  LINK

(Excerpt) MilitiaManThere are global changes coming.. Iraq is imo a pivotal player and will require an urgency. Just as we just witnessed the Chapter VII lifted, Kuwait paid, combat troops being removed, etc.. Those three and I am sure may other circumstances done, support that we are not awaiting in the seating of an unknown timing to a political event. Time will tell.. imo.. ~ MM

TSM » December 30th, 2021

Well MM you rock imo, I agree with the idea of a RI before the end of 2021. Only have a couple of days left. Wouldn’t that be awesome WOW!!!   

All makes sense….EXCEPT this was the same rational that was used thru the last 3/4 of 2021….and never produced any results…we had so many reasons why this could NEVER get to next yr…. and here we are…WHAT was missed…Kuwait final payment…elections completed….maybe they had to keep their rate at the 1460 for 1 yr…. no one has said… and no one knows so we are all guessing and continue to guess…IMO  

MilitiaMan » December 30th, 2021

Thank you, but, I don’t’ think for a moment that I am guessing.

You may be, but, I am not guessing, I am making studied observations, imo. I and others provide sound data that supports this study’s progression.

Not one of us has a crystal ball and will not ever know the actual time or date. Yet, there are global things that when looked at critically we can see there is a digital transformation happening all around the world and in Iraq, that includes their currency, etc..

The study has been a work in progress that is extremely complex and has massive implications to the likes that no one here has ever been fully apprised of. So, calling it,  as we are all just guessing is not a good assessment at all, imo.. It very well may be for some, but, that is not my view on it.

The timing of so many things having been done to date, is extremely bullish for this to be about over and a new exchange rate is issued by the CBI.. Lets see what the year end has in store for us..

1) CBI has new digital plat form.

2) CBI has interlinked with 3 E- Government agencies.

3) AYSCUDA – Global Customs system. E-Taxation, customs, fees, etc..

4) Chapter VII form the UN criteria met.

5) Kuwait compensation done.

6) Final accounts for 2021 being sorted where banks are closed, accounts not accepting withdrawals or deposits, no contracts or interest rate changes, etc.

7) Election ratified.

8) BUNA cleared cross border payments.

9) HSBC and Wells Fargo clearing international and foreign currencies digitally.

10) Satellite banks loading software to communicate across borders.

There is much more., imo.. These few items should ring some bells.. lol  They do for me..  ~ MM 

Source: Dinar Recaps

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