In many regions, internet-free access may be a make-or-break feature for central bank digital currencies
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
Process Flow Comparison: How VISA Works When Swiping a Credit Card at a Merchant’s Shop VS Digital Wallet
ByteByteGo | Alex Wu | Jul 16, 2022
What happens when you swipe your credit card at a merchant's shop
VISA, Mastercard, and American Express act as card networks for clearing and settling funds. The card acquiring bank and the card issuing bank can be – and often are – different. If banks were to settle transactions one by one without an intermediary, each bank would have to settle the transactions with all the other banks. This is quite inefficient.
See:
FTP Report: B2B Payments: A Major Fintech Opportunity to Solve Paper-based Payments and Processes
Instagram Launches Payment Service for Small Businesses (Directly in Chat)
Crypto Payments Report 2022: How digital currencies are revolutionizing commerce, corporates and culture
Bank of Canada: The Latest on Retail Payments Supervision and Survey
QR Code payment process using your digital wallets, such as Venmo, Paytm, or Paypal
To understand the process involved, we need to divide the “scan to pay” process into two sub-processes:
- Merchant generates a QR code and displays it on the screen
- Consumer scans the QR code and pays
Continue to the full article --> here
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, 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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Offline and Internet-free CBDCs
IMF | John Kiff | Aug 6, 2022
In many regions, internet-free access may be a make-or-break feature for central bank digital currencies
As the world’s central banks rush to develop digital currencies, almost all the research and trials focus on internet-based technology. What will happen when the web goes down in a war or a natural disaster? And what about the 75 percent of the world’s adult low-income population that doesn’t even have internet access (World Bank Findex Database)?
Offline Digital CBDCs
Offline digital payment systems could verify availability of funds and validate transactions without the need to check in with an online ledger. They could use old-tech, non-internet-driven mobile phones or something like a souped-up stored-value card.
See: US Fed’s CBDC Report Comments: The Good, Bad, and Ugly
Recently, several enterprises have launched updated versions of the Avant and Mondex concepts (initiatives from the 90's) that are capable of handling offline payments. Users send and receive funds by exchanging multi-digit authorization codes, either manually or using near-field communication (NFC) connections. Some require intermediary devices such as mobile phones or online connections to fully settle transactions, but that is to keep the device costs down and eliminate the need for internal battery power.
- For example, the 170-year-old German banknote company Giesecke+Devrient is testing an offline CBDC platform with the Bank of Ghana based on a stored-value card. The eCedi can be used by anyone with either a digital wallet app or a contactless smart card that can be used offline.
- The People’s Bank of China has reportedly been experimenting with similar hardware wallets as part of its trials of the digital yuan.
- Fintech company WhisperCash offers a sophisticated battery-powered credit-card-sized device for conducting digital currency transactions that costs about $70. The company has also rolled out an offline platform that piggybacks on text-based, non-internet-enabled mobile phones. Known as “feature phones,” they can be had for as little as $5. The WhisperCash system involves a $2 device that’s attached to the phone’s SIM card.
See: BIS Report: Can CBDCs be designed to help financial inclusion?
- Even in low-income countries, 66 percent of adults own at least such a phone. In 2017–18 the Central Bank of Uruguay conducted a successful six-month test of a CBDC that users could access using feature phones (Sarmiento 2022).
- The Bank of Canada is exploring such universal access devices intended to incorporate attributes of cash and prevent the interruption of digital transactions in case of an infrastructure failure.
- In its exploratory work on a digital euro, the European Central Bank is considering offline functionality.
Continue to the full article --> here
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, 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: The Latest on Retail Payments Supervision and Survey
Bank of Canada (via email) | Aug 8, 2022
The Retail Payments Advisory Committee (RPAC) met on June 16, 2022, for a demonstration of the digital tools the Bank of Canada is developing as part of its retail payments supervision (RPS) mandate. These tools include:
- the self-assessment questionnaire to help businesses determine whether they should register with the Bank as a payment service provider (PSP) as defined in the Retail Payment Activities Act
- a web portal for applicants and PSPs to communicate with the Bank and to submit information, such as registration applications and mandatory reports
We asked participants for their views on:
- the content of the self-assessment questionnaire.
- the design and functionality of the application form to register with the Bank;
- potential roles of users within a PSP and the access requirements for their accounts with the Bank; and
- other practical tools to provide signatures and pay fees.
The summary provides insight into the committee’s discussion and how the Bank will use the feedback. Read the summary
See: BoC: Retail Payments Supervision Meeting Summaries for registration, governance and fees
Give your feedback on the self-assessment questionnaire
The Bank is seeking feedback on the RPS self-assessment questionnaire from industry stakeholders who are not members of RPAC. Take a moment to watch a short video demonstration of the questionnaire and answer our survey. We will use your feedback to finalize the questionnaire. Take the survey
Find out if you may need to register with the Bank
We have updated our website with information on the registration scope of the RPAA. Learn more about the payment functions that may be performed by PSPs. Learn more
Continue to learn more about Retail Payment Supervision and the Retail Payment Activities Act --> here
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, 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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What to Know Before Using Bitcoin ATMs
Guest Post | Aug 1, 2022
Before you buy Bitcoin (BTC), your first step is to create a crypto exchange account, along with buying or downloading a crypto wallet for storing your cryptocurrency. As cryptocurrency and the tech associated with it have developed, there's another easy and convenient way of buying Bitcoin, which doesn't involve a computer or cryptocurrency exchange. This method is using a Bitcoin ATM.
What Is a Bitcoin ATM?
Bitcoin ATMs (or crypto ATMs) are cryptocurrency kiosks where people deposit cash (fiat currency) or use credit cards to buy Bitcoin. Some ATMs support other cryptocurrencies. Bitcoin ATMs aren't like fiat currency ATMs where you can manage your account's funds. They're simply tools through which you can buy Bitcoin without requiring users to create an account. You'll just need to complete a few steps as directed in the ATM and complete the transaction.
You can find these Bitcoin ATMs or kiosks in your local areas, such as grocery stores, department stores, or local banks. If you don't see one in your local area, you can use an online locator to find one within your region. While Bitcoin ATMs are not a growing part of cryptocurrency, their use still strikes many people as strange.
How Do Bitcoin ATMs Work?
You can't withdraw fiat currency from a cryptocurrency ATM as you would from your debit account. They only allow you to buy Bitcoin using fiat currency or credit card or sell your crypto funds for cash. You insert cash or credit card into the machine and follow a few steps, and then it displays the corresponding amount of Bitcoin (or crypto) funds in your crypto or virtual eWallet.
In the Bitcoin ATM, there's a QR code that will prompt you to download a specific crypto wallet that the ATM machine supports. Coinbase crypto wallet is popular for many Bitcoin ATMs, but you can choose a wallet from the list in the machine. You can also sign in to your Netcoins eWallet here if you already have one.
The wallet you created will generate a particular Bitcoin address where the ATM will now send your purchased coins after you confirm and complete the transaction. Generally, Bitcoin ATMs are intuitive for anyone; if you've used an ATM before, you'll just follow instructions and steps on the screen.
See: Payments without banks goes mainstream with Twitter on Bitcoin Lightning Network
If you need cash, you also can sell your Bitcoin funds at the ATMs in exchange for cash. You'll enter the given amount of fiat currency you want in figures and take cash. The amount of crypto (Bitcoin) funds deducted will vanish from your eWallet, after you complete the sale.
Are Bitcoin ATMs Safe?
Bitcoin ATMs are potential targets for scammers, fraudsters, cybercriminals, and money launderers to defraud unsuspecting victims. Due to their lack of identification verification, it's easier to anonymously and instantly convert fiat currency to Bitcoin or other cryptocurrencies. This is both a risk to money laundering and complicates anti-fraud investigations of money launderers.
Scammers might also use the Bitcoin ATMs as their payment points for goods or services advertised on eBay or craigslist and sold at much lower prices. They may lure buyers to private communication, instruct them to pay via Bitcoin ATMs then fail to deliver the goods.
Endnote
Overall, Bitcoin ATMs are a great way of buying Bitcoin if you want to buy in a private manner and without going through an exchange. However, you need to make sure there's one in your locality, along with being aware of scammers and money laundering schemes.
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, 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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What Are the Pros and Cons of Bitcoin ATMs?
Jul 22, 2022
Almost 30% of Canadians have made the great choice to start using cryptocurrency. If you're one of them or are thinking about joining their ranks, using a Bitcoin ATM is one of the most accessible, simple, and secure ways to begin your journey.
These kiosks are ultimately enormously beneficial to crypto users, but it's important to have all the facts before booting up a Bitcoin ATM near you. Read on to learn the pros and cons of these machines and to get some information on when to use one.
The Basics of Crypto ATMs
Cryptocurrency ATMs are kiosks that you might find at several different venues in your area. These locations may include grocery stores and department stores. They also can almost always be found at banks.
Basically, if you can find a regular ATM in a specific location, you can probably find a Bitcoin one there as well. You can also locate them using kiosk locators online such as ByteFederal's website.
But what exactly is a Bitcoin ATM?
On the surface, these kiosks look like regular ATMs, but they perform different functions. Instead of letting you withdraw fiat currency from a debit account, they allow you to buy Bitcoin with fiat currency. When you insert cash into the machine, the corresponding amount of crypto funds will appear in your virtual eWallet.
You also can sell Bitcoin at these kiosks in exchange for cash. You just enter the amount of money that you want to withdraw and take the cash. The correct amount of crypto funds will just vanish from your eWallet, completing the sale.
What Are the Pros of Bitcoin ATMs?
One benefit of Bitcoin ATMs is that they're extremely accessible and easy to use. The kiosks are all over the country, but they also are extremely easy to perform transactions on. All you need is a photo ID, eWallet QR code, and some cash.
Scan your ID on the reputable ByteFederal kiosk. Then scan the QR code linked to the eWallet where you store crypto. This code usually is on a smartphone screen, but you can print it and scan a hard copy if that makes you feel more comfortable.
Think links your identity to your eWallet to ensure that you are who you say you are. It keeps you safe from unauthorized users getting into your account and clearing your funds.
At this point, you'll be prompted to insert cash. Follow the prompt and wait a few minutes for the corresponding amount of crypto to appear in your account. You can then log out of the machine and be on your way.
This easy transaction is a welcome shift from more challenging online exchanges. If you use a crypto exchange, you need to locate something reputable, look into its credentials, enter personal information, link your account, and wait to find a seller that meets your needs. You also would need to wait for about a week for funds to appear in your crypto wallet, which is inconvenient.
Speedy Transactions
Waiting for a week to get the Bitcoin that you buy is annoying since you can't spend it immediately. However, it also is risky when it comes to actually getting what you pay for.
If you buy Bitcoin online, even a direct exchange is risky. If you don't see your funds appear for a week, you won't know if you've been jilted. You also don't know if the other person accidentally sent funds to the wrong place and will be stressed out until you see the funds appear.
In addition, you have little recourse if you don't get the crypto you're owed. It's more challenging to complain to a stranger a week after the transaction than it is to call an ATM company 10 minutes after a transaction.
Bitcoin ATMs give you peace of mind with their immediate transactions. You can also instantly load funds onto a Bitcoin debit card or begin to make online purchases. This lets you make the most out of the crypto that you purchase.
More Control Than Alternatives
Another issue with online exchanges is the lack of control. Most exchange websites randomly pair up a buyer with a seller. You won't even know any information about the person that you're making a transaction with.
This can be stressful for many Bitcoin buyers since they have 0 control over the transaction. There's no way to confirm that the trader is trustworthy. There's no chance to even establish a baseline level of trust with a conversation.
Some people turn to direct exchanges to do this where they meet someone online and buy Bitcoin from them. However, this also isn't without its risks. You still don't actually know the person and whether they're trustworthy, so the stress is still partially there.
Bitcoin ATMs give you full control over who you buy from. You know that you're working with a reputable company assuming that the kiosk is clearly labeled. There's no need to worry about being jilted or running into security issues.
High-Level Security
Speaking of security, Bitcoin ATMs are extremely secure. They make you verify your identity before a transaction, ensuring that others can't steal your funds. However, they don't save any of the documents that you scan.
This means that in the unlikely event of a data breach, there will still be nothing for hackers to steal. The Bitcoin ATM network is also secured by encryption and firewall technologies to make penetration difficult for cybercriminals.
Perfect for On-the-Go Crypto Enthusiasts
When you travel abroad, exchange rates can be challenging to navigate. You also would need to find ATMs, pay conversion fees, and occasionally worry about foreign transaction charges on credit and debit cards.
This isn't the case for those who use cryptocurrency. If you like to travel, you can use cryptocurrency to avoid these fees and inconveniences. If you're traveling within the US and Canada, you can find crypto ATMs everywhere you go and buy Bitcoin with no frills.
Are There Any Cons of Bitcoin ATMs?
While Bitcoin ATMs are largely positive, there are pros and cons to them just as there are with any technology. Some disadvantages include:
- Transaction fees (about 9%-30% every time you use the kiosk)
- Harder to locate than traditional ATMs despite their accessibility
- Occasional errors and shutdowns, though no more than you would find with traditional ATMs
- Require an eWallet that is compatible with the machine
- Some are not reputable, though this is avoidable when you work with top providers like ByteFederal and seek out their machines
Besides the transaction fees, none of these cons present more problems than a traditional ATM would. Most of them are easily avoidable. You have the power to locate reputable kiosks, install an appropriate eWallet, and locate an ATM near you.
When it comes to fees, it's understandable that Bitcoin ATM providers use them to get compensation. However, fees are decreasing as demand for crypto grows. This con may be annoying, but it also likely is a short-lived disadvantage.
When Should You Locate and Use a Kiosk?
You can find a Bitcoin ATM whenever you need to trade cash for crypto or vice versa! There are no rules about when you should locate them. They're usually available during regular business hours at whatever venue you find them.
One good reason to locate a kiosk is when you want to perform more secure transactions. You can sign up for gambling sites online without giving out any financial information. You can make purchases from eCommerce vendors that you don't want accessing your banking data.
See: Decentralization and Resilience are Key to Bitcoin’s Value
The possibilities are limitless for users, but they also are vast for investors. If you like to invest and make money over time, you should find a Bitcoin ATM when you want to diversify your portfolio. This is a great way to get something that will accrue value over time so that you can sell it back for more money later.
Convert Cryptocurrency to Cash and Back
Crypto kiosks are emerging as one of the most secure and convenient ways to access Bitcoin. While they do have a few downsides, they're by a landslide the best option for buying Bitcoin. Now that you know when to find a Bitcoin ATM and make a withdrawal, it's time to get started.
Check out the "invest" tab on our home page to learn more about why Canadians - and worldwide consumers - should invest in Bitcoin. You'll get portfolio diversification tips and some hacks on how to make the most out of each investment. You also may be interested in our "build" section for some information on growing a business with crypto.
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, 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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Instagram Launches Payment Service for Small Businesses (Directly in Chat)
Meta | Jul 18, 2022
Image: Meta
When you’re chatting with a qualified small business on Instagram, you’ll now be able to make purchases without leaving the chat. For example, if you’re interested in a backpack, all you have to do is send a message to the business about the one you love. From there, you can chat about customizations — like adding your initials — and then place your order right in the chat. In that same chat thread, you’ll also be able to track your order and ask the business any follow-up questions. Finally, you’ll be able to use Meta Pay to complete purchases, making checkout even easier in just a few taps. And you can shop with confidence knowing that your payments are securely processed and your purchases are protected.
See: Meta’s WhatsApp has launched a crypto payments U.S. pilot
Using this new feature, small business owners will be able to:
- Chat with customers in real time to answer questions and confirm purchase details.
- Create a payment request with item description and price.
- Request and collect payment.
And when businesses are ready to set up their digital storefront, they can use Shops on Instagram and Facebook.
Continue to the full article --> here
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, 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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The Volume of Transactions Using QR Codes Will Exceed $3 Trillion by 2025
Jul 8, 2022
Almost one in three mobile phone users worldwide will use this technology for daily operations. The total value of transactions for payments made using QR codes will reach $3 trillion in three years, which is 25% higher than the current indicator ($2.4 trillion). This is due to the growing attention to new financial technologies in developing markets, as well as the introduction of alternative payment methods in developed countries. This conclusion is contained in the report of Juniper Research.
It is necessary to consider that digital payment methods are replacing cash extremely fast. This is true for numerous fields, including entertainment like gambling in zodiac casino, shopping, and so on. According to the BIS, the share of contactless payments in total card transactions increased at the fastest rate from 2015 to 2020. Consumers in highly developed countries made almost twice as many non-cash payments as residents of developing countries during the specified period.
In India, for example, the bank’s analysts found that the volume of cashless payments increased almost fourfold — from $10,926 million in 2016 to $40,628 million in 2020, and the value of transactions increased from $3,289,188 to $5,293,058. In turn, in Great Britain, the volume of cashless transactions increased from $25,152 million in 2016 to $30,910 million in 2020, and their total value increased from $112,201,396 to $128,779,403.
The research data also shows that while the amount of cash in circulation has reached a ten-year-high, overall, the total number of cash transactions worldwide has fallen by 23%. BIS statistics are compiled based on official data provided by the central banks of 25 countries.
QR Code Transactions
The researchers believe that the Chinese company Alipay will become the leader among QR payment service providers, followed by PayPal, WeChat Pay, Google Pay, and UnionPay International. The report says that the prospects for the implementation and growth of this technology depend on the regional legislation of each country and the incentives launched by the government.
See: QR Code Triggers Instant Crypto Payments and Self-serve Frosty
In particular, in India, the value of QR code payments will increase from $62 billion in 2022 to $125 billion in 2026, thanks to the recently launched national QR code standard and a reduction in the use of cash among the population. Juniper Research predicts that by 2025, almost one in three mobile phone users worldwide will use QR code payment services.
In Conclusion
It can be said that the growing popularity of cashless payments is due to the convenience and speed of such transactions. At the same time, their safety and security are ensured by various means, including encryption, two-factor authentication, and biometric data verification. In addition, many countries are taking measures to promote cashless payments, such as introducing new legislation and incentives. As a result, it is expected that the volume of cashless transactions will continue to grow in the coming years.
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, 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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