Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Payments, Transfers, Rewards
VoPay & Sage Revolutionize SMB Payroll Solutions
Fintech Partnership | Release | Jul 24, 2024
Image: Freepik
VoPay and Sage Team Up to Transform Payroll Management for SMBs
Vancouver, BC, July 24, 2024 – VoPay, a leading fintech company known for its innovative embedded payment solutions, has announced a strategic partnership with Sage, a global provider of accounting, financial, HR, and payroll technology. This partnership integrates VoPay's advanced payment technology into Sage Business Cloud Payroll, aiming to streamline and automate payroll processes for small and medium-sized businesses (SMBs).
Comprehensive Payroll and Financial Solutions
This partnership offers several benefits to small and medium-sized businesses, with a focus on improving payroll efficiency and accuracy.
See: VoPay Launches TXB Solution for Banks and Credit Unions
- Businesses can automate payroll direct deposits to eliminate human cheque processing and errors. This guarantees that employees receive their wages in a timely and secure manner, increasing overall satisfaction and retention.
- A secure employee web portal allows employees to access and manage their payment information, as well as view pay stubs, minimizing the administrative strain on HR teams.
- VoPay's technology offers detailed payroll data and insights, easing compliance, financial reporting, and reconciliation.
- VoPay's API-driven solutions work seamlessly with Sage's platform, helping businesses grow and expand. This integration provides strong security and compliance with industry standards.
Additional Benefits and Technologies
VoPay offers a range of additional tools via its platform, VoPay 360, which connects with a variety of accounting applications, including Sage, QuickBooks, Xero, and others. This interface centralizes financial data, allowing firms to more effectively manage accounts payable and receivable. VoPay 360 also offers real-time transaction insight, automatic reconciliations, and streamlined financial processes to all types of businesses, including SMBs and gig economy platforms.
See: Canadian Fintech VoPay and Mastercard Partner to Move Money
This partnership leverages VoPay's significant experience in real-time payment processing, including quick bank transfers and real-time payout capabilities. Embedded Payments API enables organizations to function without relying on typical banking cut-off times, resulting in greater flexibility and reliability in financial operations.
Hamed Arbabi, Founder and CEO of VoPay:
"Our goal is to eliminate the complexities of payroll processing for SMBs, providing them with the tools to manage their finances more effectively. This partnership with Sage aligns perfectly with our mission to bring innovative financial solutions to businesses of all sizes."
Outlook
This partnership enables Sage Business Cloud Payroll to provide a full stack scalable solution that small and medium-sized businesses can integrate and adapt to their unique needs. It improves payroll efficiency and also frees up valuable resources so companies can focus on primary operations and strategic expansion. To learn more information, visit Vopay.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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DCPayments Enhances Digital Solutions with Jasper PIM Buyout
M&A | Release | Jul 8, 2024
Image: Freepik
DCPayments Completes Acquisition of Jasper's Operating Business
Digital Commerce Payments (DCPayments) has completed its acquisition of Jasper Commerce Inc.'s (Jasper) Product Information Management (PIM) business. This transaction, which will take effect on June 30, 2024, aims to improve DCPayments' digital payment solutions while also expanding its market position.
View Jasper release here | DCPayments release here.
Deal Overview
- DCPayments purchased the assets from Jasper Interactive Studios Inc. (JISI), a Jasper subsidiary.
- A revenue earn-out over three years based on the business's gross revenue will be included in the deal, which has a maximum value of $1,500,000, subject to usual purchase price modifications.
- 95% of the proceeds will be distributed to JISI's creditors. Not all obligations, nevertheless, will be fulfilled.
DCPayments's Perspective
Acquiring Jasper's PIM division is a calculated move by DCPayments to further connect their electronic payment services with strong product management skills. With this addition, DCPayments will be able to provide more complete solutions, assisting companies in expediting market entry and optimizing online operations. Up to $1,500,000 is the total consideration for this deal, subject to usual adjustments and a revenue earn-out spread over three years.
See: “Crypto’s Back”, Stripe to Support On-Chain USDC Payments
Pamela Draper, President of DCPayments:
“Integrating Jasper’s PIM business aligns with our goal to provide a one-stop-shop for businesses enhancing their online presence. This will enable us to deliver faster, more reliable solutions to our clients.”
Jasper's Perspective
For Jasper, the deal is a crucial step toward meeting its financial commitments and looking into new commercial prospects. 95% of the unsecured debts will be settled with JISI's creditors through the primary usage of the revenues. All liabilities will not be satisfied by the deal, though, as Jasper's shares are still listed as suspended on the TSX Venture Exchange.
See: Balance Commits to Alberta, Relocates to Calgary
Mag Saad, Chairman of Jasper:
“This transaction allows us to focus on new ventures and maximize shareholder value. While we face challenges with suspended trading, we are committed to identifying and acquiring new business opportunities to drive future growth.”
Future Plans
Jasper reported a net loss reduction in Q3 2024 and plans to invest in new business activities. However, the necessity for more capital and suspended trading present substantial obstacles.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Inside OMFIF’s Tokenisation Report: New Rails of Finance
Report | Tokenisation | Jul 4, 2024
Image: OMFIF Tokenisation The New Rails of Finance, Cover
9 Insightful Quotes from the OMFIF Report on the Future of Finance
OMFIF's "Tokenisation, New Rails of Finance" report takes a comprehensive look at how tokenisation and blockchain technology are poised to disrupt the financial industry. Here, we highlight 9 key statements from the report and their significance to provide insight into the future of finance. #blockchain #digitalmoney #stablecoins #smartcontracts
1. Stablecoins as Financial Enablers
"Stablecoins, as blockchain-native representations of government obligations, equip traditional fiat currencies with internet advantages." - Lewis McLellan, Editor of the Digital Monetary Institute at OMFIF.
Importance:
By providing a link between blockchain technology and conventional fiat currencies, stablecoins facilitate easier and more convenient transactions in the digital economy. Stablecoins provide a new means for people to transact on blockchain platforms, and fintechs view them as an alternative to conventional banking products. To remain relevant in the market, financial institutions may need to build their own digital currencies or modify their offerings to compete with stablecoins.
Further Reading: Tokenizing Assets and Unlocking Value on the Blockchain
2. Programmability of Stablecoins
"The programmability of stablecoins could make them a natural fit for creating a new, interoperable technology layer that works in the background." - Paul Green, Chief Technology Officer at IBM.
Importance:
Stablecoins with programmable features can automate complex financial transactions and connections, rendering them an adaptable instrument within the financial infrastructure. Fintech companies can create novel solutions by utilizing smart contracts and programmable stablecoins to automate financial procedures. Programmable stablecoins can be used by financial organizations to improve interoperability and streamline operations with other financial technology.
Further Reading: Swift’s Blockchain Breakthrough Boosts Global Tokenization
3. Economic Activity on Blockchain
"The World Economic Forum, Citigroup and Boston Consulting Group estimate that trillions of dollars’ worth of economic activity will take place on the blockchain in the coming years." - David Anderson, Strategic Positioning and Global Thought Leadership at Circle.
Importance:
The substantial amount of business activity that is anticipated to take place on blockchains highlights how revolutionary this technology can be for a variety of financial transactions. Fintechs can benefit from the increasing uptake of blockchain technology by creating next gen financial services and products that make use of tokenisation. Financial institutions need to invest in technology and expertise to enable the change to blockchain-based economic activity and stay competitive. This is a major transformation that they should be ready for.
Further Reading: Citi Report: Blockchain’s Next Billion Users: Money, Tokens, Games
4. Broader Tokenised Assets
"Beyond tokenised cash, other types of tokenised assets are also poised to scale significantly." - Linda Thompson, Digital Currency Expert at the Federal Reserve.
Importance:
The fact that additional tokenised assets can be scaled suggests that tokenisation's advantages go beyond stablecoins to encompass a range of asset classes. Tokenisation for a range of digital assets opens up new avenues for investment and financial engineering. Financial institutions are building infrastructure in order to facilitate the maintenance and trading of various tokenised assets today.
Further Reading: Real World Implementation of Real Estate Tokenization
5. Driving Financial Inclusion
"The potential for tokenised assets to drive financial inclusion and move global finance forward is significant." - Rachel Lee, Director of Fintech at Deloitte.
Importance:
By democratizing access to financial services, tokenised assets will foster more participation from from underrepresented sectors in the global economy. Tokenisation is a tool that fintechs can use to provide financial services to underprivileged communities, thus encouraging greater financial inclusion.
Further Reading: JPMorgan Announces First Transaction on TCN Network
6. Need for Regulation
"Central banks need to set strict prudential rules around the composition and auditing of the reserves backing stablecoins." - Financial Analyst at Citigroup.
Importance:
Stablecoins must be properly regulated in order to guarantee their dependability and safety as well as to stop their abuse for illegal purposes. Strict regulatory requirements must be followed by fintechs issuing stablecoins in order to reduce risks and guarantee adherence to financial laws. To avoid abuse and guarantee financial stability, financial institutions and authorities must set up thorough systems for tracking and managing stablecoin transactions.
Further Reading: Insights from the Tokenization Report Act of 2024 Hearing
7. Enhancing Transaction Efficiency
"Tokenising commercial bank deposits can enhance the efficiency and security of financial transactions, reducing costs and increasing transparency." - Mark Wilson, Head of Digital Assets at HSBC.
Importance:
Tokenising central bank funds and commercial bank deposits can improve the security and efficiency of financial transactions while lowering costs and boosting transparency. Fintechs can create systems that enable tokenised commercial bank deposits, enabling consumers to transact on the blockchain easier than today. To meet customer demand for blockchain-based transactions and technological improvements, central and commercial banks may need to step up their tokenisation activities and services.
Further Reading: JPMorgan Announces First Transaction on TCN Network
8. Importance of Interoperability
"Interoperability is hard to deliver – but absolutely essential for the future of blockchain technology." - Olivia Brown, Lead Blockchain Engineer at Microsoft.
Importance:
The smooth operation of several blockchain networks, which allows for effective and integrated financial ecosystems, depends on interoperability. Fintechs should concentrate on creating products that make it easier for various blockchain platforms to communicate with one another, for more seamless and effective transactions. Financial institutions can only provide complete and integrated services in a multi-blockchain environment if they invest in relationships and technology that foster interoperability.
Further Reading: MAS Update: Asset Tokenization in Project Guardian
9. Future of Banking Models
"The broader question remains: is the business of banking, complete with lending and fractional reserves, inextricably linked to payments or is there room for alternative models?" - Anna Roberts, Economist at the Bank of England.
Importance:
This statement questions the conventional banking paradigm (i.e., branches, direct consumer interactions, legacy systems etc) and encourages innovators to consider possibilities for fresh, cutting-edge financial services that keep lending and payments distinct. Fintech companies can create substitute financial frameworks that disentangle loans from payments, providing more specialized and effective services. In order for financial institutions to stay competitive in a changing financial landscape, they should reevaluate their business strategies and look into the potential of alternative structures.
Further Reading: BlackRock Launches New Fund on Ethereum, Bullish on Tokenization
Conclusion
OMFIFs latest tokenisation report shines light on the revolutionary possibilities of tokenisation and blockchain technology for the financial industry. Stablecoins and its programmable characteristics are becoming more popular, and blockchains are predicted to see significant economic activity as well. These developments will undoubtedly promote efficiency, transparency, and inclusion in global banking. Both fintechs and traditional financial institutions must innovate and adapt to stay competitive in this rapidly evolving industry.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Beyond QR Codes. Enhance Fintech Security with GenAI
QR Codes | Jul 3, 2024
Image: Freepik
Generative AI Visual Inputs as a Secure Alternative to QR Codes
The swift adoption of QR codes for contactless payments across the globe has brought to light security concerns, such as malware dissemination, phishing, and data theft. As smartphone technology and artificial intelligence (AI) continue to progress, generative AI visual inputs—which offer improved security and a seamless user experience—present a viable replacement for QR codes.
The Rise of QR Codes in Fintech
QR codes have transformed fintech by providing a simple, cost-effective way to facilitate transactions. Their popularity skyrocketed during the COVID-19 outbreak, as companies and customers sought contactless payment options to avoid direct touch. The QR code payment market is expected to expand from USD 11.2 billion in 2022 to USD 51.58 billion by 2032, owing to its convenience and the trend towards cashless transactions. Major regions like China, India, and the US have seen tremendous adoption, with platforms like Alipay, WeChat Pay, Revolut, and PayPal leading the way.
See: How Permissioned DeFi Will Transform Global Payments
Despite their benefits, QR codes pose several security risks that can compromise user data and trust:
- Malicious phishing attacks using QR codes can lead visitors to bogus websites that steal personal information.
- Scanning a hacked QR code might result in data theft and illegal access to sensitive information.
- QR codes can be used to launch downloads and install malicious software on the user's device.
Popular Non-QR Code Payment Solutions that Improve Security
To improve security and prevent fraud in fintech, various alternatives to QR codes use modern technologies to provide more safe and dependable payment solutions.
- Biometric authentication uses unique biological traits such as fingerprints, facial recognition, or iris scans to verify users. Biometric data is difficult to copy, which increases security and reduces the danger of unwanted access. Apple's Face ID and Touch ID are commonly utilized in mobile payment systems. See: Amazon's Pay by Palm. Although see: India Biometric Data Breach Highlights Cybersecurity Risks.
- Near Field Communication (NFC) --> Enables devices to communicate when they are close together; often used in contactless payment systems. NFC transactions are encrypted and frequently require extra authentication (such as a PIN or biometric verification). Google Pay and Apple Pay employ NFC technology to provide secure contactless payments.
- Tokenization --> replaces sensitive payment information with unique tokens that cannot be used outside of the transaction. Even if intercepted, tokens are worthless outside their original context, dramatically lowering the risk of data breaches. Many payment processors, such as Visa and MasterCard, use tokenization for online transactions.
See: Tokenisation - The New Rails of Finance
- Dynamic Card Verification Value (CVV) --> Unlike typical credit cards, which use a static CVV, dynamic CVV uses a changing CVV code for each transaction. Reduces the possibility of card-not-present (CNP) fraud because the dynamic CVV is only valid for a limited time. Some banks and credit card firms have begun to issue cards with dynamic CVV technology.
- Invisible payments and voice recognition --> Transactions can be completed without the requirement for physical interaction, typically by voice commands or automatic detection. Reduces the risk of physical card skimming by utilizing voice biometrics for safe authentication. Amazon Go stores accept invisible payments, and Google Assistant and Amazon Alexa use speech recognition for transactions. See: The Necessity of Copyrighting Your Voice in 2024
- Artificial Intelligence and Machine Learning --> Utilizes AI and ML algorithms to detect and prevent fraudulent activities by analyzing transaction patterns and user behavior. Can identify anomalies in real-time, providing advanced fraud detection and prevention. Fintech companies like Stripe and PayPal use AI-driven systems to monitor and secure transactions. See: PayPal Ventures Co-Leads $30 Million in AI Pioneer Rasa
Generative AI for Fintech Payments
How about using generative AI visual inputs instead of QR codes for secure transactional payments using AI and smartphone technology? Here's how it could work and what the possible benefits are.
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Use Visual Recognition and Contextual Understanding
Generative AI can analyze visual content such as advertisements, posters, and product packaging. This AI can understand and interpret text, logos, images, and other elements to provide relevant information and actions. When a user points their smartphone camera at an advertisement, the AI can recognize the brand, extract key information, and display interactive options.
See: Google’s Vision for a Real-Time, Multimodal AI Assistant
For example, it can identify a fast food advertisement and show nearby outlets, current promotions, or even allow direct ordering. Google Lens is already a step in this direction, enabling users to identify objects, translate text, and find product information by simply pointing their camera at an item. This functionality streamlines the user experience and mitigates the risk of malicious QR codes.
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Enhance with Augmented Reality (AR) Overlays
Artificial intelligence-powered augmented reality can overlay digital information on actual locations, improving the user experience. In a retail context, AI may overlay product details, reviews, and buy alternatives onto objects while the consumer looks at them through their smartphone camera. This lowers the necessity for physical interaction while improving security. IKEA's AR software enables consumers to visualize furniture in their house, enhancing the buying experience.
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Security and Fraud Protection
AI can provide an additional degree of protection by evaluating the validity of visual content and ensuring that the information presented is accurate and safe.
See: How GenAI Is Transforming Risk and Compliance in Banking
AI algorithms can cross-check visual inputs against known databases to prevent phishing and fraudulent activity, making them a more secure alternative to QR codes, which are easily tampered with.
Conclusion
The popular usage of QR codes in fintech has undeniably changed the way we do transactions, but their security flaws must be addressed. Generative AI visual inputs are an appealing option that improves security and provides a more intuitive user interface. As AI technology advances, its incorporation into fintech will most certainly pave the way for safer, more efficient payment solutions.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Nuvei Shareholders Approve $6.3B Advent International Buyout
M&A | Release | Jun 19, 2024
Image: Freepik/jcomp
Nuvei Shareholders Greenlight $6.3 Billion Buyout by Advent International
Nuvei Corp., a major payment technology corporation based in Montreal, has announced that its shareholders have decisively approved a buyout proposal from American private equity firm Advent International. In a recent vote, 99.24% of Nuvei shareholders approved the takeover, which pays $34 per share in cash for a valuation of $6.3 billion. This high approval demonstrates investor confidence in the transaction and its ability to strengthen the company's strategic position. This transaction will take Nuvei private.
See: How AI is Shaping the Future of Financial Services in Canada
Advent International proposed the buyout in partnership with existing owners Novacap, CDPQ, and Nuvei's chair and CEO Philip Fayer, which was first revealed in March 2024. Under the terms of the agreement, Philip Fayer will remain CEO and chair, to ensure continuity of management. The corporation will also keep its headquarters in Montreal.
Background and Next Steps
Nuvei went public in 2020, raising $833 million and breaking the record for the largest tech IPO on the Toronto Stock Exchange. The company's innovative payment options and rapid growth sparked widespread interest, including a large investment from Canadian actor Ryan Reynolds in 2023. These achievements have established Nuvei as a prominent participant in the fintech sector, increasing market interest and investor confidence.
Glass Lewis and Institutional Shareholder Services, two renowned independent proxy consulting companies, also contributed significantly to shareholder approval. These firms had previously advocated voting in favour of the plan, emphasizing the strategic benefits of the transaction.
See: API Magic: Empowering Payment Services Providers and Fintech Innovators to Scale
Nuvei still has to get a court order to complete the transaction. The company expects the transaction to finalize later this year or in the first quarter of 2025. The successful conclusion of this buyout will usher in a new era for Nuvei as a private company, prepared for future growth and innovation.
Conclusion
The approval of Nuvei's $6.3 billion purchase by Advent International is a huge milestone for the company. With strong shareholder support and strategic backing, Nuvei is well-positioned to capitalize on future success as a private venture.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Bank of Canada Publishes New Retail Payment Enforcement Policies
Payments Regulation | Jun 18, 2024
Image: Freepik
The Bank of Canada has announced new supervisory policies around enforcement
On June 17, 2024, the Bank of Canada implemented various new regulatory measures around enforcement aimed at improving oversight of payment service companies.
See: BoC Speech: Essence of the New Retail Payment Activities Act
These policies centre on:
- Administrative Monetary sanctions (AMPs): Implementing new penalties for noncompliance.
- Enforcement Process and instruments: Streamlining enforcement procedures and instruments.
- Public Notice of Decisions: Developing guidelines for providing public notices of enforcement actions.
- Governor's Review: Defining the process for examining the Governor's decisions.
- Executive Roles: Clarifying the roles and responsibilities of the Executive Director and the Managing Director.
- Significant Adverse Impact: Managing problems with considerable negative consequences.
They also updated their Glossary of Terms about retail payment supervision.
Resource: BoC Update for PSPs: New Registration Guide and Supervisory Policies Available
Review this comprehensive page hosted by the Bank of Canada around Retail Payments Supervision - Policies and Guidelines.
Conclusion
The introduction of these policies comes at an important time, as digital payments continue to expand fast. NCFA Canada emphasizes the importance of staying informed to ensure compliance in order to maintain the payment ecosystem's integrity.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Saudi Arabia Joins mBridge CBDC Project, Digital Oil Trade
CBDC | Jun 17, 2024
Image: Freepik
Saudi Arabia Joins BIS-Led Central Bank Digital Currency Project
As reported by Reuters, Saudi Arabia has become a member of the BIS-led, China dominated, project mBridge, creating a cross-border payments platform using digital currencies (CBDCs) that is managed by many central banks. The goal of this project is to improve the speed, affordability, and transparency of international transactions involving China, Hong Kong, Thailand, and the United Arab Emirates. With Saudi Arabia involved, the transition away from the US dollar and toward the "petroyuan" foreshadowing the adoption of CBDCs for oil transactions, particularly with China.
A Change in International Oil Trade
According to Rich Turrin, Saudi Arabia would be able to sell oil to China and create the petroyuan through instantaneous, low-cost cross-border cash transactions made possible by Project mBridge. This change is a part of a larger trend that uses CBDCs from BRICS and other countries in the global south, which may lessen the US dollar's dominance in international trade.
See:
SWIFT Launching CBDC Solution Within 2 Years (to Compete with BRICS)
IMF Working on Global CBDC Platform to Revolutionize Global Remittances and Trade
Project mBridge, launched by the BIS in 2021, aims to revolutionize cross-border payments using distributed ledger technology. The project has reached the "minimum viable product" stage, readying it for real-world testing. It promises near-instant, low-cost transfers and could significantly impact traditional systems like SWIFT, offering an alternative for countries under sanctions.
And International Trade
It is anticipated that the use of CBDCs and platforms such as mBridge will improve the security of national payment systems, modernize payments, and expand financial inclusion. mBridge has the potential to usher in a new era of financial transactions for international trade by upending SWIFT's monopoly on cross-border payments, which would save costs and increase efficiency.
Closing
The involvement of Saudi Arabia in Project mBridge is a turning point in the development of international finance and could see a move away from the US dollar and the rise of the petroyuan.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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