Bruce Charles’ Post

What is #CHAPS and how does it work?  Despite being one of the most popular, effective and efficient payment systems in the world, with more than 30 banks considered direct participants, there is still some confusion about the Clearing House Automated Payment System. Luckily, we have an article which explains:  ✔️ Exactly what CHAPS is ✔️ The ways in which CHAPS works ✔️ What it is about CHAPS that makes it the preferred choice for some specific financial institutions ✔️ Which banks use CHAPS  ✔️ Which organisations are direct participants and indirect participants Read the full article below and let us know if it was helpful for you 👇 #CHAPS #FinancialServices #Remittances #GlobalPayments 

The Chicago Payments Symposium hosted by the Federal Reserve Bank of Chicago remains the bellwether event for how the U.S. payments landscape is evolving. At this year's event, U.S. Department of the Treasury Under Secretary For Domestic Finance, Nellie Liang, delivered an important speech outlining what a national regulatory framework for payments might look like. I agree with many aspects of this national payments vision - which should promote the broadest payment system optionality possible, including bringing regulated #Stablecoins into the payments perimeter (the EU has done as much with #MiCA where compliant stablecoins are treated like e-money). While state-based oversight of payments has never had a Wirecard type failure, the U.S. is an outlier among advanced economies in not enjoying a national payments framework, which is a major economic competitiveness gap. https://lnkd.in/epbWPC8v

Illicit finance at today’s hearing… today’s tipsheet https://conta.cc/3uAlDzb Prometheum CEO Aaron Kaplan is back after catching the eye of the Senate and House last year. He announced his company will begin offering crypto custody services for Ether "securities" by the end of March. U.S. Treasury Secretary Janet Yellen revisits Capitol Hill today for another hearing on the Financial Stability Oversight Council (FSOC) annual report - this time with the Senate Banking Committee. Illicit finance and crytpo seems a likely topic of discussion. Negotiations between Democratic leadership and House Financial Services Chair Patrick McHenry (R, NC) may be bearing fruit for stablecoins says Politico. Ranking Member Maxine Waters (D, CA) expressed optimism last night. The Office of the Comptroller of the Currency is holding an event on tokenization today. Hong Kong is pushing for use of the Digital Yuan within its jurisdiction. House Agriculture and House Financial Services (HFS) digital asset market structure bill added Rep. Jim Banks (R, IN) as a new co-sponsor yesterday according to Congress.gov.

The Double Take: Make Private Banking Great Again: Trump 2.0 is coming, and some of the writing is already on the wall. In finance, the talk is of large-scale regulatory rollbacks. Not to mention a wave of stricter, unilateral tariffs on the American side and a much, much friendlier attitude towards crypto. The truth is that we don’t know what is coming or what the consequences will be, but it could be a new, even secular trend.  If even a part of what the incoming US presidential administration is discussing comes to fruition, it might greatly benefit Swiss private banking. That is because, if nothing else, Trump will likely exacerbate the fractures in the already large geopolitical divide between the largest and most powerful political and economic blocs. But many clients and businesses, particularly from the major countries of the Global South, won’t be entirely comfortable with being overexposed to US, European, and Chinese banks in the long-term.  That kind of highly polarized world needs a third alternative that favors sovereign offshore financial centers at least one step removed from either side of the fence. «The Double Take» is a new feature on finews.com that will be published regularly that comments on thematic issues affecting the Swiss banking hub. Andrew Isbester, the author, spent almost two decades working for major Swiss and European financial institutions, working in a variety of functions including communications, financial reporting, business risk, and financial crime. He currently is an editor-at-large in the wider finews group. #trump #usa

🚨 May 2024 Regulatory Highlights 🚨 - Dive into the latest updates from the financial regulatory landscape: 💰 Payments Innovation: Insights from the Bank of England at the Innovate Finance Global Summit emphasise advancements and safety in financial technologies. ⚖ Consumer Duty Compliance: The July 31 deadline is near! Ensure readiness for the new regulations affecting closed products. ♻ Sustainability Focus: New disclosure requirements underscore the finance sector's role in environmental responsibility. 🔴 Financial Crime Updates: Recent guidelines enhance controls against financial crimes, including new mandates on cryptoassets. 🚫 Forex Scheme Warning: FCA crackdown on unlicensed Forex operations protects investors from illegal activities. 🔗 https://lnkd.in/eZzCWGTX #Finance #Regulation #Fintech #Sustainability #Compliance #FinancialCrime

Keeping pace with payments: Lessons learned from a dynamic landscape. ISO implementations, instant and real-time Payments, digital currencies, regulatory compliance, and financial crime concerns are all on the top of the agenda this year and for the near future. As we navigate this complex ecosystem, it’s essential to reflect on the lessons learned, anticipate future challenges, and embrace opportunities for innovation. This thought leadership article, looks at the key initiatives and insights shaping the payments landscape, drawing from recent publications by BAFT (Bankers Association for Finance and Trade) https://lnkd.in/gcUNx-be Deepa Sinha Ayhan Köseoğlu #payments #banking #trade #iso20022

Innovate Finance's views on the UK’s regulatory approach for stablecoins 📑 Bank of England’s ‘Regulatory regime for systemic payment systems using stablecoins’, see here 🔗 https://lnkd.in/ef2P93tp Financial Conduct Authority’s ‘Regulating cryptoassets - Phase 1: Stablecoins’ Discussion Paper (DP23/4) see here 🔗: : Regulating cryptoassets Phase 1: Stablecoins (DP23/4) https://lnkd.in/ebztJkRJ While we welcome these initial proposals as a basis for further refinement, taken together, we are concerned that the FCA and Bank proposals do not provide the basis for enabling stablecoin providers to scale-up in the UK. The Bank's proposals for stablecoins as means of systemic payments have capital requirements that are stricter than a banking licence, and would create a cliff-edge for firms looking to grow from the proposed FCA regime to the Bank’s regime. This would not create a viable commercial model for newer stablecoin providers, and risks stifling the growth of innovators, creating a model that only large Banks, incumbent global payment providers and Big-Tech firms can utilise. Some of our other key points across both submissions are: - The Bank should allow stablecoin issuers to make money from the reserves held with the central bank, otherwise it risks creating disincentives to innovate without a viable commercial model. - Both the Bank and FCA need to provide more clarity and detail on how they view a firm transitioning in-between regulatory regimes in the event of a systemic designation, and that doing so would not require a fundamentally different business model. - On the potential designation process for systemic payments systems, further clarity should be provided on how this process will be applied in the context of stablecoins. Otherwise, it will lead to uncertainty in the market on potential regulatory outcomes.  - We welcome the FCA’s approach of allowing stablecoin issuers to generate revenue on the backing assets as this is consistent with current industry practices. - We appreciate the FCA’s creative thinking on allowing overseas stablecoins entry into the UK, but feel the idea needs further refinement to create the right incentives to succeed on a practical level. These proposals represent an opportunity for the UK to be a leading hub for stablecoins as a means of payment, which will drive investment and potential benefits to consumers, businesses and merchants. We look forward to contributing further as the proposals develop. You can read both consultation responses here: https://lnkd.in/eFjRPU9u #crypto #cryptoregulation #stablecoins #stablecoinregulation #digitalassets #VoiceOfFinTech Adam Jackson, Paul Worthington, Jago Corry

Here is a link to my latest speech on the private sector’s role in payments and the Fed’s role in payments. https://lnkd.in/eP7Xci6U

The Federal Reserve aims to make FedNow an everyday utility in the US financial services sphere. This aligns with the global trend of making instant payments ubiquitous. To achieve this, the World Payments Report 2025 highlights three key strategies: 1. **Leveraging Open Finance:** Building use cases across industries like automotive, retail, and insurance. 2. **Modernizing Payment Infrastructure:** Switching to 24/7/365 continuous payment processing. 3. **Harmonizing VoP Mechanisms:** Ensuring secure and efficient instant payments. #WPR25 #FedNow #InstantPayments #OpenFinance #DigitalPayments #FinancialServices #WorldPaymentsReport #PaymentsInnovation

The Digital Pound Foundation recently held a roundtable entitled “Preserving the Singleness and Uniformity of a digital Pound”, in which we explored the challenges around preserving the singleness of money in the digital age 👉 https://buff.ly/4b0E9k8 In the future, multiple different forms of money – both public and private, and both those currently in use as well as new forms of digital money – will co-exist. Each has the potential to fill a different niche in the ecosystem and to provide enhanced consumer and business choices, arising from their different characteristics, the technical functionality that they offer, the nature of their issuers and their risk profiles. If we are to achieve a diverse, competitive, and effective ecosystem of these new forms of digital money, seamless interoperability, convertibility, and – above all else – preservation of the singleness and uniformity of a #digitalPound in all its varied formats, will be required. Just as bank deposits can today be converted into cash, or e-money into bank deposits, the future evolution of money and payments will require equally seamless, trusted and invisible conversion between cash, bank deposits, e-money and other new forms of public and private #digitalmoney. In a recent paper, the Bank for International Settlements – BIS observes that “singleness of money does not rule out varying credit risk across intermediaries. The value of private liabilities as stores of value could differ across intermediaries, in much the same way that in the current two-tier monetary system bank bonds or negotiable certificates of deposit (CDs) can trade at varying spreads. Singleness is an attribute of the payment, rather than private liabilities as a store of value.” In the roundtable, participants explored this concept of the singleness of #money, the extent to which it remains important at different levels of the financial system, and the practical ways in which it can be implemented, through legal and regulatory frameworks, technical interoperability, and settlement mechanisms. The full writeup from the day is now available to read on the Digital Pound Foundation website. Please let us know your thoughts! 👉 https://buff.ly/4b0E9k8