Welcome to this week's "Innovating Payments News - Weekly Top Three.
In this week's issue, Federal Reserve Vice Chair Randal Quarles expressed significant doubts about establishing a central bank digital currency, calling the potential benefits "unclear" during his remarks to the Utah Bankers Association. The U.S. Faster Payments Council, in partnership with Glenbrook Partners, announced the release of their research report, "Why Interoperability is Important to Faster Payments." And finally, we take a closer look at the Finastra survey, which reveals Banking as a Service (BaaS) is set to have a notable impact on financial services.
Here are this week's top headlines:
1. Fed Vice Chair Quarles Casts Significant Doubt on Establishing a Digital Dollar (CNBC)
With the Federal Reserve set to release a much-anticipated report this summer on the potential creation of a digital dollar, the central bank's vice chair for supervision said Monday that he has significant doubts about the idea. Fed Governor Randal Quarles expressed skepticism about most arguments made in favor of a central bank digital currency. Read more.
2. Faster Payments Council Publishes Interoperability Report (Finextra)
The U.S. Faster Payments Council (FPC), in partnership with Glenbrook Partners, today released the research report, Why Interoperability is Important to Faster Payments. The report is the latest part of a three-year, multifaceted industry study consisting of quantitative and qualitative research, launched by the FPC and Glenbrook in 2019. Read more.
3. Finastra Survey Finds Banking as a Service (BaaS) Set to Make Significant Impact on Financial Service in Next 12 Months. (Yahoo! Finance)
Finastra research reveals that Banking as a Service (BaaS) and embedded banking services are set to have a notable impact on the industry in the next 12 months…The "Financial Services: State of the Nation Survey 2021", also finds that most organizations are now deriving the benefits of Open Banking and Open Finance, with the latter considered the natural evolution for the sector. Read more.
What are your thoughts about a central bank digital currency? Do you think interoperability between The Clearing House's Real-Time Payments network and the FedNow Service is important to faster payments? Why or why not?
Let us know what you think below. And be on the lookout for next week's issue!
AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.