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Islamic Development Bank to Create Blockchain Smart Credit Platform with Samsung's Blocko

It is a known fact that blockchain technology can help drive a tremendous change in the financial services sector. Central Banks are developing future-oriented economies and are devising means to align with the drastic changes that blockchain technology and digital assets are driving. While some are actively developing their state-backed digital currencies, Middle East powerhouse, Saudi Arabia is opening options for a blockchain-backed credit system.

This innovative project leveraging blockchain technology was initiated by the Islamic Research and Training Institute (IRTI), the research arm of the country’s Islamic Development Bank (IDB). The IRTI partnered with Samsung backed blockchain provider Blocko in an alliance that comes as part of the E24P.

The E24P is a collective of technology experts, distributed financial services providers, state-level government sponsors, and leading research institutes in the UAE and the UK working with clients in high-growth economies and sectors across the Middle East, Africa, and South East Asia.

Towards a Functional Credit System

The IRTI partnership with Blocko comes as part of the E24P regional consortium launched by Blocko in April 2020. This partnership will help create a functional blockchain-backed credit system that will help minimize the risks associated with credit financing to businesses and consumers.

With the projection of the Islamic Finance sector to expand to $3.78 trillion dollars by 2022, the IDB is eager to address any bottleneck that may impede this growth. The IDB, known as a non-interest bank, faces hurdles in the timely repayment of credit facilities by borrowers. The blockchain credit system currently under development will help put an incentive for timely repayment of loans while also helping to automatically donate late payment charges to the appropriate charities.

The smart credit management system will be built on the Aergo Hybrid Blockchain and with its many functionalities which also include insurance options for lenders will help create an efficient credit system.

Future Blockchain Engagements

Saudi Arabia is renowned for having friendly regulations with respect to blockchain technology. The Saudi Arabian Monetary Authority (SAMA) has profiled and believes blockchain and cryptocurrencies are redefining the future of finance. Through SAMA’s active engagements, we can conclude that the country is well-positioned to lead the region into a blockchain empowered future.

Credit Giant MasterCard Grants Wirex First Principal Membership License

Wirex has become the first native cryptocurrency platform to be granted a principal membership license from credit card giant Mastercard as part of its accelerated expansion into digital assets and its outreach to other crypto card providers seeking to enter the market.

According to a release shared with Blockchain.News, Mastercard today announced the expansion of its cryptocurrency ‘Accelerate’ program, which extends an invitation to cryptocurrency and crypto card partners from emerging brands and fintechs.

The move comes as Wirex becomes the first native cryptocurrency platform to be granted a Mastercard principal membership, allowing it to directly issue payment cards.

Mastercard’s Crypto Mission

Mastercard has committed to applying its innovation, experience and scale to emerging cryptocurrency and digital currency partners, building global ecosystems to modernize payments and transform the way people and businesses transact.

According to recent research from Statista, consumer interest and investment in digital currencies are growing, with data showing that up to 20 percent of the population of some countries are holding cryptocurrencies, and an increasing number of merchants, digital players, and financial institutions are exploring crypto payments.

“The cryptocurrency market continues to mature, and Mastercard is driving it forward, creating safe and secure experiences from consumers and businesses in today’s digital economy,” said Raj Dhamodharan, Executive Vice President, Digital Assets and Blockchain Partnerships, Mastercard. “Our work with Wirex and the wider crypto ecosystem is accelerating innovation and empowering consumers with more choice in the way they pay.”

What Does Principal Membership Mean for Wirex

Being granted Mastercard principal membership enables Wirex to issue payment cards directly to consumers, which will make it easier for mainstream consumers to buy, hold and exchange multiple traditional and cryptocurrencies. Consumers can instantly convert their cryptocurrencies into traditional fiat currency, which can be spent everywhere Mastercard is accepted around the world.

Although currency may only enter Mastercard’s network as traditional fiat currency, users will be able to benefit from Wirex’s Cryptoback rewards program, which automatically gives customers up to 1.5% in Bitcoin for every purchase made on the card.

Pavel Matveev, CEO and co-founder of Wirex said, “We are very excited for Wirex to be the first crypto-native company granted principal membership from Mastercard.” Matveev stated that the license granted to Wirex represents a growing interest and recognition in the acceptance of cryptocurrency by leading bodies and regulators and believes that it will help create a world where all currencies, “traditional and crypto, are equal.”

Regulated by the UK’s Financial Conduct Authority with a license to issue cards in Europe, Wirex has been growing rapidly over the past 18 months, with a successful expansion into the Asia Pacific region and the release of its native Wirex Token (WXT).

Japan’s Digitalization Effort will have Mixed Credit Impact across Sectors, says Moody’s Report

Japan’s digitalization effort will have mixed credit impact across sectors according to a new report by Moody’s investor services.

Under Prime Minister Yoshihide Suga, Japan’s (A1 stable) government is aiming to promote digital transformation (DX) through the newly formed Digital Agency.

The Digital Agency will lead efforts to digitalize Japanese government operations, and to increase the efficiency of public services. To differing degrees, the initiative will shape the credit quality of not only the central, and regional and local governments (RLGs), but also Japan’s businesses and financial institutions, and structured finance instruments.

The aim of the government-led initiative is to generate efficiencies in Japan as it is falling behind others in digital adoption and readiness. Businesses that support digitalization could stand to gain, but the rise of new competitors could threaten existing players.

Japan’s new initiative to digitalize government operations and the delivery of public services will bolster policy effectiveness, supporting sovereign credit quality, but will bring mixed credit implications for regional and local governments (RLGs), businesses and financial institutions, according to a new report by Moody’s Japan K.K.

Motoki Yanase, a Moody’s Vice President and Senior Credit Officer:

“Digital transformation will lower operating costs by increasing operational efficiency and dismantling silos between ministries. It could also spur digitalization in the private sector – which if achieved will support economic growth.”

But remote working could bring mixed credit implications to RLGs, some of which could face pressure on their revenues. For instance, fare revenues at RLG-operated mass transit systems will come under pressure as more workers work from home, while property tax revenues could fall as fewer offices are leased out. On the other hand, some local governments could enjoy more tax revenue from companies that open exurban satellite offices.

Meanwhile, businesses that support the digitalization effort, such as startups and companies providing IT infrastructure, stand to benefit from rising demand, but office property and office equipment companies could lose out as remote working takes hold. And financial institutions will benefit from more streamlined operations, although the near-term cost of investing in technology and cyber-risk prevention will be high.

Finally, for the structured finance sector, digital adoption will optimize the origination process, support volumes in an aging society with a shrinking working-age population and strengthen the credit screening process through the use of artificial intelligence. On the flip side, greater digitalization could create cybersecurity risks such as fraud and identity theft.

Bybit Now Supports Crypto Purchases with Credit or Debit Cards

Bybit users can directly buy crypto with their credit or debit cards using fiat currencies, the cryptocurrency exchange company announced.

The launch of Bybit’s credit and debit card payments system “will make buying crypto as simple as making any purchase, such as books and clothes, online,” the company said.

“Bybit users can now easily buy crypto assets such as Bitcoin, collect NFTs on our marketplace, or deploy their capital in other ways to reach their personal financial goals,” said Ben Zhou co-founder and CEO of Bybit.

Currently, users can pay via the Visa or Mastercard system and according to Bybit, Visa and Mastercard due to their ubiquity and security.

In an interview with Blockchain.News, Bybit said, “as security is our number one priority, we wanted to use Visa and Mastercard due to their ubiquity and excellent security, and that is why we chose a service provider who could deliver that. On a similar note, we are constantly tweaking our platform mechanisms to optimize for security and customer experience to provide the next level of trading for our users.

Bybit supports various fiat currencies, including the euro, U.S. dollar, and pound sterling. The service is available to any eligible user with a Bybit account.

Bybit has also waived fees on credit and debit card purchases for customers from the European Economic Area and the UK until May 17, to celebrate this new integration.

The company said that following May 17, “customers who purchase crypto on Bybit through the integration will enjoy some of the lowest fees for this kind of service in the industry, starting at 1.1% for purchases made from the European Union.”

“This integration brings next-level convenience, so users can access world-class liquidity and reliability offered by Bybit,” said Zhou.

In terms of its unique offerings that differentiate them from other exchanges, Bybit told Blockchain.News that it is “known for our reliable platform that traders can count on in moments that count. Coupled with our diverse offerings from NFT to options trading, Bybit is the one-stop crypto destination with the newly added seamless credit and debit card onramp service for traders and crypto fans of all skill and knowledge levels.”

Bybit plans to launch more products this year and the company told Blockchain.news that people can expect “amazing events and product launches this year, and one upcoming highlight is our annual World Series of Trading — which is like the World Cup for crypto traders. Also, keep an eye on our Launchpad 2.0 for upcoming projects to be announced in the next few weeks.”

Established in 2018, Bybit has been offering a professional platform to help traders find an ultra-fast matching engine, excellent customer service and multilingual community support.

In a recent announcement, Bybit also said that it has launched leveraged token products.

Blockchain.News reported that the token products were released on the trading platform’s spot exchange starting with two leveraged bitcoin tokens, BTC3L and BTC3S.

Bybit recommended these leveraged tokens as short-term investment vehicles, which will allow traders to reap the benefits of leverage with no margin, collateral or liquidation risks, the report added.

In one of its major deals, Bybit was successful in securing a multi-year partnership deal with Red Bull Racing.

Blockchain.News reported that following a 3-year deal, Singapore-based crypto assets trading platform Bybit has become the Principal Team Partner for Oracle Red Bull Racing, one of the most successful Formula 1 team.

As announced by Red Bull, the deal is worth $50 million annually.