Mongolia Troubles 1st Digital Currency License beneath New Payment System Law
Mongolia has taken a substantial step forward toward bolstering its fintech sector, with the East Asian nation&rsquos central bank authorizing a neighborhood telecom operator to problem a digital currency under the nation&rsquos not too long ago-passed national payment technique bill.
As initial reported by state-owned news agency Montsame, the Bank of Mongolia on Friday issued its 1st-ever digital currency license to Mobifinance — the fintech arm of Mobicom, the largest mobile telephone provider in Mongolia.
Зөвхөн Мобикомын хэрэглэгчид ашиглах боломжтой байсан Candy өдгөө Монгол орон даяар аль ч операторын хэрэглэгч ашиглах боломжтой болж Үндэсний төлбөрийн системд цоо шинэ төлбөрийн хэрэгсэл болон &ldquoмэндэлж&rdquo байна. https://t.co/fvKfeFze4s @CandyMGL @Mongolbank_mn pic.twitter.com/MAjrvn5Nwf
&mdash MobiCom (@MobicomOfficial) September 28, 2018
Now licensed as a state-authorized financial instrument, Mobicom&rsquos virtual currency — dubbed &ldquoCandy&rdquo — is considered a &ldquonon-money payment instrument&rdquo whose value is pegged to Mongolia&rsquos fiat currency, the tugrik.
Previously, Mobicom had only been authorized to concern the token to its mobile consumers by means of a wallet app called Candy Pay. Utilizing the app, buyers could send funds to or from their bank, spend bills, shop on-line at select retailers from within the app, and transfer funds to other users.
Nevertheless, starting on Oct. 1, companies all through Mongolia will be allowed to use Candy as an official payment system, and though it remains to be seen to what extent this certain currency will catch on, Mobicom CEO Tatsuya Hamada mentioned that he expects digital currencies to reshape the monetary services landscape.
&ldquoAs digital currencies have begun to circulate, ATMs and cards will turn out to be a thing of the previous as nicely,&rdquo Hamada mentioned.
Bank of Mongolia executives issued the license to Mobicom at a ceremonial occasion held at the central bank&rsquos headquarters earlier nowadays, indicative of the truth that regulators believe the newly-passed legislation will encourage innovation in the nation by permitting businesses outside of standard banking institutions to participate in the economic solutions business.
According to Montsame&rsquos report, central bank officials said that at least a single other firm has submitted an application for a digital currency license below the new legislation.
Featured Image from Mobicom/Twitter
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Published at Sat, 29 Sep 2018 01:20:53 +0000