ECB to keep tabs on how DBM may affect its mandate
Yves Mersch, European Central Bank (ECB) Board Member, delivered a speech on 16 January in which he raised the notion of whether or not Digital Base Money (DBM) – digital currency issued by central banks – could affect the ECB’s ability to honour its mandate. Any materialisation of DBM – according to Mr Mersch – would have to be assessed against four principles: technological safety, efficiency, technological neutrality, and freedom of choice of means of payment for users. The ECB representative concluded by saying that even where efficiency gains are possible though the use of DBM, technological feasibility and cost considerations alone will not change the ECB’s mandate.
UAE Central Bank issues new regulatory framework for electronic payments
On 1 January the Central Bank of The United Arab Emirates issued a new regulatory framework stored values and electronic payment systems. It applies to corporations offering deposits and withdrawals to payment accounts, debit and credit services, peer-to-peer payments and remittances. The text however has a stipulation that indicates that all virtual currencies are prohibited for the before mentioned companies.