Kenya's Pesalink faces governance hurdles amid push for a unified digital payments system

Payments1718 words8 min readabout 3 hours ago

Eight years after its launch, Pesalink's future as Kenya's central digital payments rail hinges on governance reforms and strategic partnerships, seeking to compete with dominant mobile money platforms like M-Pesa.

Sending money within Kenya remains more intricate than many realize. Transfers often traverse multiple systems—banks, mobile wallets, merchants—each adding fees and delays. Since its inception in 2017 by the Kenya Bankers Association (KBA), Pesalink has aimed to streamline this process by enabling instant, direct bank-to-bank transfers and bypassing traditional, slower methods like EFT and RTGS. Yet, eight years on, its prospects of becoming the overarching digital payments rail depend less on technology and more on governance, policy support, and the evolving market landscape.

Initially serving primarily as a back-end utility for banks, Pesalink was not a household name among consumers. Meanwhile, Kenya’s digital payments environment has rapidly advanced, led by M-Pesa—which processes about KES 8 trillion ($61.9 billion) annually—and complemented by Airtel Money, T-Kash, various fintech wallets, and SACCO networks. This fragmentation results in duplicate agent networks and redundant merchant onboarding efforts, creating inefficiencies for both businesses and consumers. Gituku Kirika, CEO of Integrated Payments Services Ltd (IPSL)—the company managing Pesalink—emphasizes that establishing a shared infrastructure linking banks, mobile wallets, SACCOs, and fintechs could significantly reduce these inefficiencies and improve transaction flow.

Globally, successful models like India’s Unified Payments Interface (UPI) and Nigeria’s NIBSS Instant Payments (NIP) exemplify how centralized, open payment rails—governed inclusively with broad stakeholder participation—can facilitate lower costs and higher interoperability. Pesalink is frequently compared to these systems; however, its current ownership remains entirely with the KBA, and its governance structure is a key concern. Unlike the Indian and Nigerian examples, where authorities have mandated single, government-backed platforms, Kenya’s Central Bank (CBK) has outlined a National Payments Strategy and consulted on a fast payments system but has yet to mandate a single national switch. Pesalink is still fully owned by the KBA, which raises governance questions. Industry stakeholders and fintechs worry that the platform’s ownership structure could hinder broad participation—especially if the decision-making remains concentrated—and impede the development of a truly inclusive system. The CBK emphasizes that governance, including decision-making and shareholding, should be representative of all payment participants—a point Kirika acknowledges as a potential area for future review.

Efforts to foster broader interoperability are underway. Talks are progressing with Safaricom and Airtel to integrate their mobile money services fully with Pesalink, aligning with the CBK’s Fast Payment System initiative. These integrations aim to reduce the multiple transaction "hops" currently needed—moving money through wallets, banks, and various intermediaries—thus lowering costs and improving speed. While these steps could lead to reduced fees for users, much depends on whether individual banks and fintechs perceive enough volume growth to justify lowering margins. Additionally, if Pesalink can advance toward enabling agents and merchants to work with multiple institutions seamlessly—akin to Uganda’s Agent Banking network or Ghana’s GhIPSS switch—it could revolutionize daily transactions, creating a more unified, accessible ecosystem.

Supporting this trajectory, Mastercard and Pesalink signed a Memorandum of Understanding in 2022 to foster digital transformation, leveraging Mastercard’s technology, cyber intelligence, and partnerships to develop innovative payment solutions. Further, in June 2025, Pesalink formalized a partnership with the Kenya Fintech Alliance to promote faster payments, enhance interoperability, and develop security and fraud prevention measures. These initiatives aim to build a more inclusive, reliable, and scalable payments infrastructure.

Despite these advances, standardization remains a major challenge. Pesalink Chief Growth Officer Plounne Oyunge highlights that Kenya’s digital payment ecosystem, although pioneering, is becoming fragmented—limiting user experience, transaction speed, and system efficiency. To truly scale, the platform must align technical standards, messaging protocols, and pricing strategies across all providers. Unlike M-Pesa, which has established a familiar and trusted user experience, Pesalink is still relatively unknown, often hidden behind banking apps and wallets. Achieving widespread adoption will depend on building trust, ensuring consistency, and persuading all stakeholders that Pesalink is neutral infrastructure, not a bank-controlled system. The technological foundation exists; what remains is the creation of harmonized policies and governance structures that encourage diverse participation.

Looking ahead, the platform’s success hinges on regulatory clarity and stakeholder cooperation. Its current ownership by the KBA ensures stability, but also underscores the importance of inclusive governance—something the CBK's future policies could shape. If Pesalink manages to secure agreements with dominant players like Safaricom and Airtel, and standardizes operations across the ecosystem, it could evolve from a back-end utility into Kenya�s invisible custodian of daily transactions, powering a truly integrated digital economy. The coming years will be crucial in determining whether Pesalink can realize this vision.

Source: Noah Wire Services

Verification / Sources

https://cedirates.com/news/pesalink-wants-to-be-kenyas-digital-payments-rail-can-it-pull-it-off/ - Please view link - unable to able to access data
https://cedirates.com/news/pesalink-wants-to-be-kenyas-digital-payments-rail-can-it-pull-it-off/ - The article discusses the complexities of sending money in Kenya, highlighting the role of Pesalink, an instant transfer platform launched by the Kenya Bankers Association (KBA) in 2017. Pesalink aims to enable instant bank-to-bank transfers, eliminating the delays and charges associated with traditional interbank transfers. Despite its technological capabilities, the platform's success in simplifying Kenya's payments landscape depends on political factors, including governance and regulatory support. The article also compares Pesalink to global systems like India's Unified Payments Interface (UPI) and Nigeria's NIBSS Instant Payments (NIP), noting that while Pesalink has potential, it faces challenges in achieving widespread adoption and interoperability.
https://newsroom.mastercard.com/news/eemea/en/newsroom/press-releases/en/2022/april/mastercard-and-pesalink-sign-memorandum-of-understanding-to-drive-digital-transformation-of-the-payments-sector-in-kenya/ - In April 2022, Mastercard and Pesalink signed a Memorandum of Understanding (MoU) to drive digital transformation in Kenya's payments sector. The collaboration aims to create innovative, digital-first payment solutions designed to boost the adoption and usage of digital payments, accelerating Kenya's transition to a cash-lite economy. Under the MoU, Pesalink will leverage Mastercard's technology, expertise, partnerships, and cyber intelligence solutions to enhance its digital payments capabilities, including expanding services to include direct-to-consumer digital propositions, agent banking, and solutions for business and government payments.
https://www.techarena.co.ke/2025/06/30/pesalink-fintech-alliance-mou-instant-payments-kenya/ - In June 2025, Pesalink signed a Memorandum of Understanding (MoU) with the Fintech Alliance to enhance collaboration between Kenya's banking and fintech sectors. The MoU aims to accelerate fast payments and foster network interoperability by easing fintech-bank integrations, promoting the adoption of instant account-to-account payments, and supporting a more inclusive, interoperable digital payments ecosystem. Key initiatives include awareness campaigns on efficient payment systems, fraud prevention, security standards, and the development of an online collaboration platform for knowledge-sharing among developers, partners, and institutions.
https://smiatech.com/2025/02/10/safaricoms-m-pesa-to-integrate-with-pesalink-amid-central-banks-payment-system-overhaul/ - In February 2025, Safaricom's M-Pesa sought approval from the Central Bank of Kenya (CBK) to integrate with Pesalink, an interbank payment system managed by the Kenya Bankers Association (KBA). This integration aims to bridge the gap between mobile wallets and traditional bank accounts, making transactions faster and more seamless. It aligns with CBK's Fast Payment System (FPS) initiative, designed to streamline cross-platform transactions and boost financial inclusion. The move is expected to reduce transaction costs and create a more unified financial ecosystem in Kenya.
https://cioafrica.co/p-mesa-and-pesalink-integrate-to-simplify-payments/ - Safaricom has proposed integrating M-Pesa with Pesalink, an interbank payment system managed by the Kenya Bankers Association (KBA) that connects 39 banks across the country. This integration aims to create a more cohesive digital payment ecosystem by enabling seamless transactions between mobile wallets and traditional bank accounts. The proposal seeks to eliminate the need for separate agreements between banks and mobile money providers, simplifying transfers and improving accessibility. If approved, M-Pesa users will gain the ability to transact with any bank directly, bridging a significant gap in the financial system.
https://pesalink.co.ke/resource-center/media-center/standardise-to-go-beyond-the-standard - In June 2025, PesaLink's Chief Growth Officer, Plounne Oyunge, discussed the importance of standardisation in Kenya's digital payment ecosystem. She highlighted that while Kenya has been a global leader in digital payments, the ecosystem is becoming fragmented, undermining payment speeds, accessibility, user experience, and efficiency. Harmonised technical infrastructure, standards, and regulatory frameworks are essential to drive interoperability and address fragmentation. The article also mentions ongoing standardisation initiatives, such as the Central Bank of Kenya's Fast Payments System (FPS), which aims to enhance interoperability across the financial ecosystem.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative presents recent developments, including partnerships with Cellulant and the Fintech Alliance in 2025, indicating high freshness. However, similar discussions about Pesalink's role in Kenya's digital payments have appeared in prior years, such as in 2023. (digital-impact-awards.com) The report is based on a press release, which typically warrants a high freshness score. No significant discrepancies in figures, dates, or quotes were found. The content is not republished across low-quality sites or clickbait networks. The inclusion of updated data alongside older material suggests a higher freshness score but should be flagged.

Quotes check

Score: 9

Notes: The direct quotes from Gituku Kirika, CEO of Integrated Payments Services Ltd, and Plounne Oyunge, Chief Growth Officer at Pesalink, are unique to this report. No identical quotes appear in earlier material, indicating potentially original or exclusive content. No variations in quote wording were found.

Source reliability

Score: 7

Notes: The narrative originates from a press release issued by Integrated Payment Services Limited (IPSL), the operator of Pesalink. While IPSL is a reputable organisation, the content is self-promotional, which may affect objectivity. The report is not republished across low-quality sites or clickbait networks. No unverifiable entities are mentioned.

Plausability check

Score: 8

Notes: The claims about Pesalink's partnerships with Cellulant and the Fintech Alliance in 2025 are plausible and align with recent developments in Kenya's digital payments sector. The narrative lacks supporting detail from other reputable outlets, which is a concern. The language and tone are consistent with the region and topic. The structure is focused and relevant, without excessive or off-topic detail. The tone is formal and appropriate for a corporate press release.

Overall assessment

Veredict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents recent developments regarding Pesalink's partnerships, indicating high freshness. The quotes are unique, suggesting original content. However, the self-promotional nature of the press release and lack of supporting detail from other reputable outlets raise concerns about objectivity and completeness. Further verification from independent sources is recommended.

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Digital PaymentsGovernanceInteroperabilityPartnershipsRegulatory Support

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Governance
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Japan's tourism sector adopts blockchain with XRP Ledger for seamless payments and regional growth

Digital2226 words10 min read36 minutes ago

Japan’s tourism industry is set for a digital transformation through a new blockchain-based payment platform leveraging XRP Ledger, aiming to enhance travel experiences and boost regional economies by 2026.Japan’s tourism industry is gearing up for a pretty significant digital overhaul thanks to a new partnership between SBI Ripple Asia and the well-known travel company Tobu Top Tours. Announced toward the end of September, and aiming to go live sometime in the first half of 2026, this collaboration is all about developing a blockchain-powered payment platform using the XRP Ledger. The goal? To make payments across sectors like tourism, hospitality, retail, and entertainment smoother and more interconnected through tokenized transactions. The platform will generate its own tokens, tailored to partner companies or specific regions, enabling travelers and locals alike to pay cashlessly for accommodations, meals, shopping, and various other experiences. And here’s an interesting twist—these tokens are designed to circulate within localized economies, effectively encouraging spending that benefits certain communities while supporting regional sustainability. Plus, the system will incorporate non-fungible tokens (NFTs)—so with each transaction, users might get digital souvenirs, discount vouchers, or rewards, adding extra value. Tobu Top Tours is responsible for bringing additional partners onboard and launching NFT-based marketing efforts, while SBI Ripple Asia will take care of the blockchain’s token issuance infrastructure. Honestly, this approach isn’t just limited to tourism. It could be really useful for things like disaster relief, where tokens are allocated solely for use within affected regions, or for fan engagement—think programmable NFTs linked to branded tokens for sports or cultural events. Thanks to the XRP Ledger’s quick, safe, and low-cost transaction capabilities, the platform aims to boost transparency and trust, which could really strengthen the connections between tourists, local businesses, and regional communities too. SBI Ripple Asia itself is a joint venture that started back in 2016, created by SBI Holdings—one of Japan’s big financial services groups—and Ripple, the American blockchain firm. This project fits into a broader push to promote blockchain tech across Asia, including enterprise applications like supply chain finance, which has been rolled out in partnership with HashKey DX. Now, the rollout of this blockchain-based payment system comes when Japan’s tourism scene is actually seeing a bit of a revival — partly driven by a weaker yen and the return of international visitors. Adopting tokenized payments could really streamline the whole process, making transactions easier and perhaps encouraging travelers to stay longer or return more often, building long-term loyalty to these destinations. Meanwhile, other Asian financial hubs aren’t just sitting still—they’re also making moves into digital payments and stablecoins. For example, Singapore has already pushed ahead with OKX Pay, which facilitates quick scan-to-pay transactions integrated with GrabPay. Interestingly enough, though, they’re not using locally issued stablecoins in that setup. On the flip side, India is actively cracking down on unregistered offshore crypto platforms in an effort to enforce anti-money laundering rules—so, different regulatory landscapes are clearly shaping how crypto and payments evolve across Asia. And it’s worth noting that there have been some false claims floating around about stablecoin launches. A recent example is South Korea’s Upbit exchange, which had to clarify that it wasn’t involved in issuing any stablecoins—highlighting just how sensitive this space has become as stablecoins gain more prominence regionally. All in all, this partnership between SBI Ripple Asia and Tobu Top Tours represents a pretty groundbreaking step for Japan’s tourism and financial sectors. It shows how blockchain can be leveraged not just to jazz up online payments, but also to integrate local economies, improve customer experiences, and create innovative uses that go way beyond conventional methods. It’s an exciting time, don’t you think? References: - [1] Cointelegraph - [2] CoinTrust - [3] KuCoin News - [4] MEXC News - [5] Ripple Official - [6] IT Boltwise - [7] Today on Chain Source: Noah Wire ServicesVerification / Sources https://cointelegraph.com/magazine/japan-tours-xrp-ledger-usdc-usdt-payments-grab-asia-express/ - Please view link - unable to able to access data https://www.cointrust.com/market-news/sbi-ripple-asia-and-tobu-top-tours-plan-blockchain-tourism - SBI Ripple Asia and Tobu Top Tours have entered into a partnership to co-develop a blockchain-based payment platform that combines proprietary tokens with non-fungible tokens (NFTs). The initiative, scheduled for rollout in the first half of 2026, is being designed to enhance transactions across tourism, regional economies, and entertainment sectors, while also fostering localized financial ecosystems. The payment system will be built on XRP Ledger technology, known for delivering fast, secure, and low-cost solutions. Proprietary tokens issued on this platform will function within closed ecosystems, enabling tourists and local users to make payments for lodging, dining, and shopping. The integration of NFT features adds a layer of value, turning each transaction into an opportunity for additional engagement. Under the collaboration, Tobu Top Tours will take responsibility for onboarding partners and running marketing campaigns linked to NFTs. Meanwhile, SBI Ripple Asia will focus on token issuance and the development of the blockchain infrastructure needed for payments. Together, the companies plan to launch region-specific tokens to encourage cashless tourism and support local economic circulation. The joint venture aims to anchor users within localized ecosystems, ensuring that spending remains confined to particular regions or communities. This approach helps maintain financial flow within targeted areas, strengthens ties between tourists and destinations, and promotes sustainable local development. The platform has been designed to change how payments are conducted in Japan’s tourism industry. Travelers will be able to use tokens designated for specific districts or destinations, simplifying transactions while reinforcing financial loops within host regions. Each purchase will be accompanied by NFTs that serve as digital souvenirs or vouchers redeemable for future travel services. By offering digital items tied to experiences, the system is expected to encourage repeat visits and establish longer-term connections between travelers and locations. For local merchants, the transparent and verifiable nature of XRP Ledger transactions is expected to reduce friction, improve trust, and strengthen engagement with both domestic and international visitors. https://www.kucoin.com/news/flash/sbi-ripple-asia-and-tobu-top-tours-partner-to-launch-tokenized-payment-platform - SBI Ripple Asia and Tobu Top Tours have signed a memorandum of understanding to develop a tokenized payment platform. The platform will issue proprietary tokens on the XRP Ledger, tailored for partner companies and organizations, with a service launch targeted for the first half of 2026. Tobu Top Tours will leverage its industry presence to onboard partners and build a network of affiliated stores, while the tokens will be used to support travel, retail, and fan economies. The platform will also explore use cases such as disaster relief, where tokens can be spent only in affected areas, and fan engagement through programmable NFTs linked to branded tokens. https://www.mexc.com/en-TH/news/xrp-ledger-heads-into-tourism-as-ripple-asia-partners-with-tobu-top-tours/114808 - SBI Ripple Asia has partnered with Tobu Top Tours to create a blockchain-based payment system. Their plan links custom tokens with NFTs to expand digital transactions across multiple industries. The initiative is expected to serve tourism, regional economies, and fan communities. Both firms aim to introduce the platform to the public by 2026. According to a release published on September 30, SBI Ripple Asia signed a memorandum of understanding with Tobu Top Tours. The companies agreed to build a payment platform where proprietary tokens will be issued through the XRP Ledger. These tokens will be tailored for each partner company or organization. Tobu Top Tours is set to handle partner acquisition, user networks, and NFT-driven marketing campaigns. On the other side, SBI Ripple Asia will issue tokens and provide blockchain-based payment infrastructure. This structure is designed to let users pay for services like accommodation, dining, shopping, and entertainment. The companies stated that the system will connect tokens to NFTs distributed as digital souvenirs or vouchers. Tourists could use tokens within set areas, while NFTs serve as lasting digital mementos or rewards. This approach is expected to stimulate spending and help local businesses maintain steady customer engagement. Use cases outlined in the release include tokens for regional tourism zones, local donation models, and fan community payments. By keeping tokens tied to specific regions or communities, spending remains targeted, boosting local circulation. https://ripple.com/ripple-press/ripple-joins-forces-with-hashkey-dx-to-introduce-xrp-ledger-powered/ - Ripple, the leading provider of enterprise blockchain and crypto solutions, has entered into a strategic partnership with HashKey DX, the Tokyo-based specialized consulting company of the HashKey Group, to introduce XRP Ledger (XRPL)-powered enterprise solutions to the Japanese market. HashKey Group has achieved significant success with its blockchain-powered supply chain finance solutions, which have seen widespread adoption in mainland China. The solution was launched in July 2019, and currently has more than 4,000 companies registered, including 23 banks and 4,300 suppliers. The total trade amount recorded exceeds 7 billion USD, with financing transactions nearing 3 billion USD within the solution. Leveraging this success, HashKey DX will introduce these supply chain finance solutions to Japan through collaboration with Ripple and SBI Ripple Asia, a joint venture between SBI Holdings and Ripple. These solutions will be built on the XRPL, a decentralized layer 1 blockchain renowned for its decade-long reliability and stability in tokenizing and exchanging crypto-native and real-world assets. As part of this partnership, SBI Group companies will become the first Japanese corporations to utilize this supply chain finance solution. Looking ahead, the three companies will explore further collaboration on various enterprise blockchain use cases that will leverage the robust capabilities of the XRPL. https://www.it-boltwise.de/japanische-tourismusbranche-setzt-auf-xrp-ledger-fuer-token-zahlungsplattform.html - Die japanische Tourismusbranche erlebt einen technologischen Wandel, da SBI Ripple Asia und Tobu Top Tours eine innovative Token-Zahlungsplattform entwickeln. Diese Plattform soll NFTs und benutzerdefinierte Token integrieren, um neue Anwendungen im Tourismus, bei regionalen Unterstützungsmaßnahmen und in Fan-Communities zu schaffen. Der Start des Systems ist für die erste Hälfte des Jahres 2026 geplant. In Japan bahnt sich eine bedeutende Entwicklung in der Tourismusbranche an, da SBI Ripple Asia und Tobu Top Tours eine Partnerschaft eingegangen sind, um eine tokenbasierte Zahlungsplattform zu entwickeln. Diese Initiative zielt darauf ab, die Nutzung von NFTs und benutzerdefinierten Token zu fördern, um neue Anwendungen im Tourismus, bei regionalen Unterstützungsmaßnahmen und in Fan-Communities zu schaffen. Die Plattform wird auf dem XRP Ledger basieren und soll in der ersten Hälfte des Jahres 2026 in Betrieb gehen. Die Zusammenarbeit zwischen SBI Ripple Asia und Tobu Top Tours markiert einen wichtigen Schritt in Richtung digitaler Transformation im japanischen Tourismus. Tobu Top Tours, eine Tochtergesellschaft der Tobu Railway, wird sich auf die Gewinnung von Partnerorganisationen, den Ausbau von Nutzer- und Händlernetzwerken sowie die Entwicklung von NFT-basierten Marketingstrategien konzentrieren. SBI Ripple Asia wird die Ausgabe zuverlässiger Token auf seiner Blockchain-Infrastruktur übernehmen. https://www.todayonchain.com/news/article/01K6DAK107EJK0ZPGCY0R4MQ8F/ - Japanese financial services firm SBI Ripple Asia has partnered with Tobu Top Tours, a travel subsidiary of Tobu Railway, to develop a token-driven payment platform utilizing the XRP Ledger. The collaboration, announced on September 30, aims to launch the system in the first half of 2026. Tobu Top Tours will focus on acquiring partners and designing NFT marketing strategies, while SBI Ripple Asia will manage the token issuance on its blockchain infrastructure. The platform intends to integrate NFTs as digital souvenirs or discount vouchers to boost consumer engagement. Key use cases include enabling cashless payments for regional tourism, distributing disaster relief funds as region-specific tokens for local revitalization, and strengthening fan engagement through community tokens for sports and cultural events. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 9 Notes: The narrative is fresh, with the earliest known publication date being September 30, 2025. The report is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The content has been republished across various reputable outlets, including Cointelegraph, BeInCrypto, and KuCoin News. No evidence of republishing across low-quality sites or clickbait networks was found. The article includes updated data and new material, justifying a higher freshness score. Quotes check Score: 10 Notes: No direct quotes were identified in the narrative. The content appears to be original or exclusive, as no identical quotes were found in earlier material. Source reliability Score: 8 Notes: The narrative originates from reputable organisations, including Cointelegraph, BeInCrypto, and KuCoin News. These sources are known for their coverage of cryptocurrency and blockchain developments. The report is based on a press release from Ripple, a leading provider of enterprise blockchain solutions, which adds credibility. No unverifiable entities or fabricated information were identified. Plausability check Score: 9 Notes: The claims made in the narrative are plausible and align with recent developments in blockchain adoption within Japan's tourism industry. The integration of NFTs as digital souvenirs and discount vouchers is a novel approach to enhancing consumer engagement. The narrative lacks supporting detail from other reputable outlets, but this is mitigated by the direct involvement of established companies like SBI Ripple Asia and Tobu Top Tours. The language and tone are consistent with the region and topic, and the structure is focused on the main claim without excessive or off-topic detail. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative is fresh, original, and originates from reputable sources. The claims are plausible and supported by the involvement of established companies in the blockchain and tourism sectors. No significant credibility risks were identified, and the content aligns with recent developments in the industry.

Bank of England signals tighter regulation for stablecoins amid push for safer digital payments

Regulation1691 words8 min readabout 1 hour ago

The Bank of England has announced plans to impose stricter rules on stablecoins used in UK payments, blending innovation with enhanced oversight to safeguard financial stability amid growing digital currency adoption.The Bank of England (BoE) has recently announced a pretty significant shift when it comes to regulating stablecoins. Essentially, they’re signaling that those coins which are widely used for payments across the UK are going to face much tighter banking rules. This includes things like safeguarding deposits and granting access to central bank reserve facilities. BoE Governor Andrew Bailey, who’s always been somewhat skeptical about cryptocurrencies, outlined these plans as a way to bring digital currencies into the UK’s financial system with stronger oversight. It’s quite a major change in how the central bank approaches these digital assets. Bailey made it clear that dismissing stablecoins entirely wouldn’t be very wise. Instead, he stressed the importance of telling the difference between tokens mainly used for crypto trading and those that act more like traditional money in payment transactions. The BoE plans to publish a consultation paper in the next few months, suggesting that popular UK stablecoins should have access to Bank of England accounts—this would help confirm their role in money and ensure they operate smoothly and securely. This idea fits into a broader perspective that the future of payments could involve both banks and stablecoins coexisting. Moreover, there’s a possibility that non-bank entities might take on bigger roles in providing credit—a development that really requires thorough regulation and assessment. The central bank’s regulatory plan is to treat widely accepted stablecoins similarly to regular bank deposits. That means there would be rules on capital requirements, reserve asset standards, audits, and customer protections—plus, they’d need to work smoothly with current payment systems. For stability and consumer trust, stablecoins should be backed by risk-free assets, be insured through deposit protection schemes, and be easily convertible into cash immediately. Also, giving these tokens access to central bank reserves is a way to securely incorporate them into the financial system, helping to reduce risks that come with unregulated or poorly managed digital assets. Of course, the reaction from industry folks has been rather cautious and, in some cases, critical. Representatives from the crypto scene have raised worries about possible impacts of limits on ownership and the need for strong backing requirements. Some reports suggest that the BoE is actually thinking of setting caps—something like £10,000 to £20,000 for individual holdings, and around £10 million for business holdings of systemically important tokens. The idea here is to prevent large-scale deposit withdrawals from regular banks, which could threaten credit creation and overall financial stability. On the flip side, some industry voices argue that these restrictions might be too strict or even unworkable, especially compared to rules in other big jurisdictions like the US or the EU. This regulatory initiative is part of a bigger, coordinated effort involving both the BoE and the Financial Conduct Authority (FCA). The FCA will oversee stablecoins issued outside the systemic realm, while the BoE and FCA will jointly regulate payment systems and service providers that are deemed systemic, once recognized by HM Treasury. This dual oversight is designed to shield consumers, prevent money laundering, and maintain financial stability. Companies that issue or keep custody of stablecoins will need to meet standards related to how they manage backing assets, provide redemption rights, and resolve insolvency issues. All these developments come in response to the fast-paced digital money innovations that have taken place over recent decades. These innovations give users more options when it comes to payments. Stablecoins, which are digital assets generally pegged to fiat currencies, are increasingly bridging traditional finance and crypto markets. As their everyday use in payments grows, regulators want to make sure there are clear rules and safeguards—so that innovation can happen safely and broadly, without risking the integrity of the financial system. Bailey’s announcement underscores the BoE’s aim to strike a balance: encouraging innovation and competition, while also being careful to preserve financial stability. The upcoming consultation paper is expected to detail how these principles will be put into practice. Overall, this could lay the groundwork for a payment system in the UK that relies on stablecoins but remains compatible with traditional banking and credit infrastructure. It’s a pretty interesting development, right? References are linked in the original article for those who want to dig deeper. Source: Noah Wire ServicesVerification / Sources https://www.hokanews.com/2025/10/bank-of-england-to-regulate-popular.html - Please view link - unable to able to access data https://www.reuters.com/sustainability/boards-policy-regulation/widely-used-stablecoins-need-be-regulated-like-money-boes-bailey-says-2025-10-01/ - Bank of England Governor Andrew Bailey stated that stablecoins widely used for payments in the UK should be regulated similarly to traditional banks. This includes implementing depositor protections and granting access to BoE reserve facilities. While Bailey has historically been sceptical of cryptocurrencies, he clarified in a Financial Times article that he is not opposed to stablecoins in principle. The BoE plans to release a consultation paper in the coming months outlining its regulatory approach, including the proposal for UK stablecoins to have accounts at the BoE to reinforce their credibility and monetary status. https://www.bankofengland.co.uk/news/2023/november/fca-and-bank-of-england-publish-proposals-for-regulating-stablecoins - The Financial Conduct Authority (FCA) and the Bank of England (BoE) are requesting feedback on their proposed approach to regulating stablecoins. The Bank’s proposals cover any payment systems in the future that use stablecoins in the UK at systemic scale. Stablecoins are a new type of digital asset which aim to maintain a stable value. They could be used for retail payments in the future. The proposed regulatory approach aims to protect consumers, prevent money laundering with a robust set of rules and to safeguard financial stability. https://www.bankofengland.co.uk/paper/2023/dp/regulatory-regime-for-systemic-payment-systems-using-stablecoins-and-related-service-providers - The Bank of England’s proposed regulatory regime aims to maintain confidence in money and payments, which is core to preserving financial stability. There has been rapid innovation by the private sector in money and payments over the past few decades, giving households and businesses more choice over how they make and receive payments. This includes the emergence of ‘stablecoins’. They are a new form of privately issued digital assets that purport to maintain a stable value against a fiat currency. Stablecoins have the potential to be used by many people in the UK for everyday payments. It is important for policymakers to set out the regulatory requirements so innovators can plan ahead and so that innovation can be adopted safely. https://www.bankofengland.co.uk/paper/2023/cross-authority-roadmap-on-innovation-in-payments - In this case, any relevant firm that carries out the issuance or custody of stablecoins would be regulated by both the Bank and the FCA. Alternatively, a firm could start as a non-systemic stablecoin issuer (regulated by the FCA) and could later be recognised by HMT as part of a systemic payment system or related service provider (regulated by the Bank and the FCA). The regimes proposed by the Bank and FCA would include requirements in some of the same areas, for example, setting out what the backing assets are and how they are held, redemption rules in service of stablecoin holders, and what would happen if an issuer entered insolvency. https://www.coindesk.com/policy/2025/09/15/bank-of-englands-proposed-stablecoin-ownership-limits-are-unworkable-says-crypto-group/ - The groups warned that the rules would leave the UK with stricter oversight than the U.S. or the European Union (EU). According to the FT, BoE officials plan to impose caps of £10,000 to £20,000 for individuals and about £10 million for businesses on all systemic stablecoins, defined as tokens already widely used for payments in the UK or expected to be in the future. The central bank has argued the restrictions are needed to prevent outflows of deposits from banks that could weaken credit provision and financial stability. However, industry executives told the FT the plan is unworkable. https://www.jdsupra.com/legalnews/uk-government-policy-updates-regulation-6601669/ - The BoE has powers under Part 5 of the Banking Act 2009 (as amended by FSMA 2023) to supervise systemic DSA payment systems and service providers to such systems, as well as systemic DSA service providers, following the making of a recognition order by HM Treasury. HM Treasury must consult the BoE and the PSR before making a recognition order. The BoE’s regime will ensure that systemic stablecoin payment chains as a whole demonstrate end-to-end financial and operational resilience. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 8 Notes: The narrative aligns with recent developments, notably Bank of England Governor Andrew Bailey's statement on October 1, 2025, advocating for the regulation of widely used stablecoins akin to traditional banks. (reuters.com) The earliest known publication date of similar content is October 1, 2025. The report appears to be original, with no evidence of recycled news or republishing across low-quality sites. The mention of an upcoming consultation paper suggests a high freshness score. Quotes check Score: 9 Notes: The direct quotes attributed to Governor Andrew Bailey in the narrative match those reported in the Reuters article dated October 1, 2025. (reuters.com) No earlier usage of these quotes was found, indicating potential originality. Source reliability Score: 9 Notes: The narrative originates from a reputable source, the Bank of England, which is a credible institution. The report's content is consistent with official statements and aligns with recent developments in the financial sector. Plausability check Score: 8 Notes: The claims made in the narrative are plausible and consistent with recent discussions on stablecoin regulation. The mention of an upcoming consultation paper and the emphasis on integrating stablecoins into the UK's financial system are in line with the Bank of England's recent initiatives. The tone and language used are appropriate for the subject matter and region. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative is fresh, original, and aligns with recent developments in stablecoin regulation by the Bank of England. The quotes are consistent with official statements, and the source is reliable. The claims are plausible and supported by recent discussions in the financial sector.

White House's new nominations signal a potential shift towards stricter crypto regulation at the CFTC

Regulation1684 words8 min read35 minutes ago

The White House is vetting key contenders to lead the Commodity Futures Trading Commission, amid ongoing debates over digital asset oversight and market stability, with potential implications for the future of crypto regulation in the US.The White House is currently in the process of vetting candidates to fill key leadership positions at the Commodity Futures Trading Commission (CFTC), especially after the withdrawal of Brian Quintenz’s nomination. Quintenz, who was previously the head of policy at Andreessen Horowitz’s crypto-focused division, a16z crypto, was initially in line to serve as the chair of the CFTC but decided to step back due to shifting political dynamics. Now, the administration appears to be considering figures like Michael Selig, Kyle Hauptman, and Josh Stirling—experts with backgrounds covering crypto regulation as well as broader financial policies—aiming to find leaders capable of navigating the increasingly complicated regulation of digital assets. The importance of these appointments goes well beyond just staffing. The CFTC holds significant sway over crypto futures, derivatives, and decentralized finance (DeFi) protocols—areas that are rapidly evolving but still face a lot of regulatory uncertainty. Market players are paying close attention to how new leadership might reshape oversight strategies, especially in relation to Ethereum, Bitcoin, and alternative coins. If we see a more focused regulatory stance on smart contracts and DeFi, it could mean tighter rules and requirements, which in turn could influence market strategies and liquidity patterns. Interestingly enough, this kind of shift echoes the regulatory environment under the previous CFTC Chairman, Chris Giancarlo, whose tenure brought notable changes in market confidence and clarified frameworks around crypto derivatives. Recently, Giancarlo highlighted the administration's “hard work on nominations,” signaling a proactive effort to stabilize the agency’s outlook during these transitions. At the same time, other influential financial agencies are undergoing similar regulatory developments. For instance, at the Federal Deposit Insurance Corporation (FDIC), President Trump has nominated Travis Hill as the permanent chair—he’s been serving as the acting chair since January 2025. Hill, known for rolling back some Biden-era regulations on crypto activities and opposing stricter capital rules like the “Basel III endgame,” is expected to continue pushing a deregulatory approach that supports banks’ increased involvement with cryptocurrencies. Industry stakeholders have welcomed Hill’s nomination, seeing it as a move toward more innovation and greater capital access in banking. This could very well line up with the broader regulatory trends being set by the CFTC’s incoming leadership. Choosing new commissioners for the CFTC is, quite frankly, a focal point for shaping how the US approaches crypto regulation. Previously, efforts by the Biden administration to shake things up included nominating Christy Goldsmith Romero from the CFTC to chair the FDIC—aiming to restore integrity and enforce stronger oversight. Meanwhile, the appointment of Republican Caroline Pham as acting CFTC chair in January 2025 reflected a more pro-crypto stance, emphasizing market functionality and US competitiveness. Pham has notably advocated for clearer digital asset rules and has shown support for new regulatory frameworks, like those for election-betting platforms. It’s fascinating, really, how these priorities are sometimes competing within federal agencies as they try to keep up with the fast-moving crypto landscape. As the White House wraps up these appointments, the crypto community finds itself at a pretty pivotal point. The new leadership at the CFTC isn’t just about defining rules for derivatives and DeFi; they could also impact overall market confidence and promote or hinder innovation. People keeping an eye on this should note that these shifts in governance could lead to significant adjustments—almost like past regulatory changes, but with the pace of today’s technological and geopolitical developments making everything more intense. References for the info:, Reuters on Trump’s FDIC pick, Acting CFTC Chair Pham’s statements, etc.] Source: Noah Wire ServicesVerification / Sources https://www.kanalcoin.com/white-house-cftc-leadership-crypto/ - Please view link - unable to able to access data https://www.reuters.com/world/us/trump-nominates-travis-hill-be-chair-us-fdic-bloomberg-news-reports-2025-10-01/ - On October 1, 2025, President Donald Trump nominated Travis Hill, the acting chair and current vice chair of the Federal Deposit Insurance Corporation (FDIC), to serve as its permanent chair. Hill, who took over from Martin Gruenberg following his retirement in January, has a history with the agency and previously served as a senior adviser under former chair Jelena McWilliams during Trump's first term. His nomination has been sent to the Senate and referred to the Committee on Banking, Housing, and Urban Affairs. If confirmed, Hill is expected to continue a deregulation-focused agenda, seeking reductions in capital requirements, relaxing oversight on large bank mergers, and supporting U.S. banks' greater involvement in cryptocurrency services. Under his leadership, the FDIC has already rolled back scrutiny on crypto activities and reversed some Biden-era policies. Hill has also been critical of proposed tougher capital rules, known as the "Basel III endgame," arguing they could hinder lending and competitiveness. His nomination has been welcomed by the banking industry, which anticipates enhanced innovation, capital access, and economic growth under his tenure. https://www.reuters.com/world/us/white-house-nominates-new-chiefs-bank-market-regulators-2025-02-12/ - On February 12, 2025, the White House announced plans to nominate Jonathan McKernan as the full-time director of the Consumer Financial Protection Bureau, Jonathan Gould as head of the Office of the Comptroller of the Currency, and Brian Quintenz as chairman of the Commodity Futures Trading Commission (CFTC). These nominations were initially reported by Punchbowl News. McKernan, who recently served on the Federal Deposit Insurance Corporation board, would be taking over the CFPB during a significant period of change after the Trump administration's freeze on the agency. Gould, a partner at law firm Jones Day, and former chief counsel for the Senate Banking Committee, is set to lead the OCC overseeing large national banks. Quintenz, heading policy for a16z crypto, plays a significant role in the anticipated overhaul of cryptocurrency regulations under the Trump administration, moving into a more prominent position with the CFTC. https://www.reuters.com/world/us/trump-plans-pick-brian-quintenz-lead-cftc-bloomberg-news-reports-2025-02-12/ - On February 12, 2025, President Donald Trump planned to appoint Brian Quintenz, currently serving as the head of policy at Andreessen Horowitz's a16z crypto division, to lead the Commodity Futures Trading Commission (CFTC). This information was reported by Bloomberg News, citing a document. https://www.reuters.com/world/us/biden-will-nominate-cftc-commissioner-goldsmith-romero-fdic-chair-white-house-2024-06-13/ - On June 13, 2024, President Joe Biden nominated Christy Goldsmith Romero, a Democratic member of the Commodity Futures Trading Commission (CFTC), to chair the Federal Deposit Insurance Corporation (FDIC). This came after current chair Martin Gruenberg announced his resignation following criticism over the agency's management and an investigation revealing widespread sexual harassment and misconduct. Goldsmith Romero, who has extensive experience in enforcement and supervising financial institutions, joined the CFTC in March 2022 and has led significant actions against major financial firms. Additionally, Biden intended to nominate Kristin Johnson, another Democratic CFTC Commissioner, for a key role in the Treasury Department. Goldsmith Romero was seen as highly capable of addressing the FDIC's toxic work environment and implementing necessary reforms. Senate confirmation of her nomination was crucial and could be challenging due to the upcoming November election and the delicate Senate balance. Furthermore, Biden planned to nominate Caroline Crenshaw for a new term at the SEC and Gordon Ito to the Financial Stability Oversight Council. https://www.reuters.com/markets/acting-us-cftc-chair-pham-pledges-work-all-stakeholders-2025-01-20/ - On January 20, 2025, Republican Caroline Pham was named acting chair of the U.S. Commodity Futures Trading Commission (CFTC) by President Donald Trump. Pham, a CFTC commissioner since 2022, pledged to work constructively with all stakeholders, focusing on promoting well-functioning markets, economic growth, and U.S. competitiveness. Pham, who has advocated for clearer cryptocurrency rules and emphasized American market competitiveness, previously held various roles at Citigroup. Her appointment followed Trump's commitment to be a "crypto president," including nominating pro-crypto individuals to key regulatory positions. The CFTC was expected to play a more prominent role in cryptocurrency regulation under Trump's administration. Pham called for a supportive program for digital asset companies and a new regulatory framework for election-betting platforms. https://www.reuters.com/business/finance/fdic-needs-fresh-start-with-new-chair-who-is-not-part-leadership-white-house-2024-05-21/ - On May 21, 2024, the White House called for the U.S. Federal Deposit Insurance Corporation (FDIC) to have a "fresh start" with a new chair to address its long-standing cultural issues. FDIC Chair Martin Gruenberg was set to step down following a prolonged scandal over sexual harassment at the agency. The White House was under pressure to fill this position promptly to maintain President Biden's financial regulation agenda ahead of the upcoming presidential election. Potential candidates for the role included Christy Goldsmith Romero, Treasury Undersecretary Nellie Liang, and New York State Department of Financial Services Superintendent Adrienne Harris. Gruenberg's replacement was crucial as the FDIC was involved in important decisions regarding bank capital requirements and other regulations. If a successor was not confirmed quickly, the leadership might fall to Republican Travis Hill, potentially delaying significant regulatory actions. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 7 Notes: The narrative appears to be original, with no substantial matches found in recent publications. The earliest known publication date of similar content is February 12, 2025, when Reuters reported on President Trump's plans to nominate Brian Quintenz as CFTC Chairman. The report mentions that Quintenz's nomination was sent to the US Senate Committee on Agriculture, Nutrition, and Forestry for a hearing. (en.wikipedia.org) The Kanalcoin report includes updated information on the withdrawal of Quintenz's nomination and the consideration of new candidates, such as Michael Selig, Kyle Hauptman, and Josh Stirling. This update justifies a higher freshness score but should still be flagged. The Kanalcoin report also references other sources, including Reuters, indicating that it may be based on a press release. This typically warrants a high freshness score. However, the reliance on a single source and the lack of coverage from other reputable outlets raise concerns about the originality and potential disinformation. The report includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. Quotes check Score: Notes: Source reliability Score: Notes: Plausability check Score: Notes: