Arf Blog

The trend for CBDCs primarily began two years ago, when China launched a research effort to digitize its yuan. Today, China’s digital yuan is almost ready for a rollout, and the Chinese government even conducted wide-scale tests for the asset at the just-concluded Winter Olympics. Debating the Possible Effects of CBDCs Right now, no one […]

One of the hottest trends in the finance space right now is the central bank digital currency (CBDC). Over the past few years, more central banks have moved to digitize their currencies as they hope to improve areas like trade and cross-border transactions.

Card networks have been the leading players of the payment world since the 1960s. Despite the rapid involvement of new and challenging players, they have maintained their dominance throughout decades and come this far by adding up new offerings with constant innovations. However, especially after the 2010s, the emergence and widespread use of new digital […]

What is a multichain stablecoin? A multichain stablecoin is available on several blockchain networks rather than a single one. Therefore, it can flexibly operate on various blockchains, which reduces the friction of converting a stablecoin across different ones, and helps users access other businesses and applications using different protocols.

Stablecoins can be backed by various sources, including fiat currency, other cryptocurrencies, precious metals, and algorithmic functions. However, their backing source highly impacts their risk level. A fiat-backed stablecoin, for example, is likely more stable because it is linked to a centralized financial system, where a regulating authority like a central bank can intervene in […]

What is embedded finance? Embedded finance is the integration of financial services, such as banking, insurance, or lending, into traditionally non-financial user experiences. It occurs when a non-financial provider integrates financial services into its offerings to enhance customers’ experience and retain them. An online store offering insurance services for goods sold or a ride-sharing app […]

The vast majority of stablecoins today is USD-pegged and expected to be so in the future, as the US dollar continues to be the dominant international reserve currency. IMF reports that, as of May 2021, 59% of all foreign bank reserves are accumulated in US dollars.[1] Although it has dropped to a 25-year low due […]

Neobanks and e-wallets are transforming financial services with the enhanced convenience, user experience, and accessibility they provide. In addition, they are firing up the competition within the industry by offering new products and services every passing day, accelerating the much needed change in the finance ecosystem.

An e-wallet, or a digital wallet, is an online service that enables people and businesses to make digital transactions and verify their credentials. Any type of personal data can be loaded into an e-wallet, including debit and credit cards, driver’s license, social security number, loyalty cards, as well as items such as movie tickets and […]

Neobanks, or digital-only banks, can be defined as fintech companies offering direct banking services to their customers. The term neobank was first coined around 2016[1] to describe fintech companies that challenge traditional banks.

Remittance service providers (RSPs) play a crucial role in the global financial system by helping migrants in the world to send money back home. Considering that remittances are the primary source of income for many emerging markets, RSPs’ vital importance for much-needed financial stability is undeniable. However, despite carrying a crucial responsibility on their shoulders, […]

Remittance flows are lifelines for migrants and their families in need. They are also one of the main sources of income for developing countries and play a crucial role in their economic survival. With the class of global citizens getting crowded and the gig economy passing $340 billion in 2021, the finance industry needs to […]

The word ‘remittance’, originally coined by the World Bank, refers to the sum of personal money and compensation transfers of migrant workers to their home country, usually for household maintenance purposes. Today, around 800 million people in the world are supported by money sent home by their family members who have migrated for work.[1] Considering […]

Correspondent banking is defined as “agreements or contractual relationships between banks to provide payment services for each other”.[1] In this model, one ‘correspondent’ bank holds deposits owned by other ‘respondent’ banks, and provides payment and other services to those respondents.[2]

Cross-border money transfers usually flow through a correspondent banking network that consists of chains of banks, cooperatively working to transfer funds from the payer to the payee. However, this model is problematic, as it adds extra time and cost to money transfers, and demands a lot of operational effort on the banks’ side.

Central bank digital currency (CBDC) is a form of digital money that is issued, backed, and controlled by a country’s central bank. CBDCs have been developed in two main forms: retail CBDCs for the use of individuals and entities like cash in digital form, and wholesale CBDCs for the use of financial institutions with central […]

Stablecoins are a type of cryptocurrency whose value is pegged to a real and stable asset like fiat currencies or gold, to stabilize its price.[1] They have all the advantages of a cryptocurrency: inexpensive, borderless, instant, 24/7 available.[2] While covering all advantages, they try to tackle cryptocurrencies’ biggest drawback, high volatility; and reduce the imposed […]