Categories: Economy

Breaking News: Central Bank Repeals 2023 Rule to Promote Financial Inclusion through Digital Wallets

The Central Bank has recently repealed a 2023 rule that required Payment Service Providers (PSPs) to pass on the returns generated by balances to their clients. This decision was made in an effort to promote financial inclusion by strengthening smaller digital wallets, according to Communication A 8038. The new regulations allow PSPs to transfer the remuneration of demand account balances to their clients, but only if a portion of the balance is deposited in financial institutions with 100% reserve requirements.

The Central Bank’s decision faced criticism from some banks, who expressed concerns that it would allow certain financial institutions to circumvent regulations while still benefiting from returns on deposits. However, this decision has been praised by the Argentine Fintech Chamber for promoting financial inclusion.

The Central Bank has implemented various regulations regarding virtual wallet management in the past, including requiring all funds to be deposited with the bank and restricting fund allocation to specific investments. The recent decision to repeal Communication A 7825 raises questions about potential impacts on the financial industry.

Overall, this decision reflects ongoing efforts by the Central Bank to regulate and promote financial inclusion in the digital payments ecosystem.

Samantha Johnson

As a passionate content writer at newschemical.com, my name is Samantha Johnson. With a background in journalism and a keen eye for storytelling, I craft compelling articles that captivate and inform our readers. From breaking news to in-depth features, I strive to deliver content that is not only engaging but also insightful. With a love for words and a dedication to accuracy, I work diligently to keep our audience informed and engaged with the latest stories and trends. Join me on this journey through the world of news and knowledge at newschemical.com.

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