FinGurú - From bankruptcy to inclusion by horacio gustavo ammaturo

On financial inclusion

In recent days, several events have highlighted how regulations and regulations evolve in countries facing new technologies called “financial inclusion”.This concept, as used by companies known as FinTech, points to integrating with the world of electronic payments Those who for various reasons operate outside the traditional banking and financial systems.Inclusion comes as evolutionary term of banking, a lot of fashion during the 1990s, when by law it was forced for companies to give up wages to their workers exclusively through the banks and that at any payment exceeding 1,000 pesos of that time, equivalent to $1,000 should be carried out through checks or bank transfers.The rules of the banking system have segmented the population among those who may have and face the costs of maintaining a bank account and those who do not. Indeed, A large number of citizens do not have the opportunity to open bank accounts.In addition, the collaboration between banks and tax collectors has served to ensure that small businesses and independent workers in any area see disbursed their activities Through fees, services, perceptions and tax advances that affect each banking movement.These realities served as a cultivation broth for entrepreneurs and technicians to seek the way draw both scollos, scale economy and tax loads, through new technological solutions.There are several formats, from Accessible electronic accounts through a debit card traditional to sophisticated wallets which allow in real time to check balances, movements and instant transfers.

About ways to process payments

While pre-loaded or debit cards and portfolios linked to bank accounts serve as ramps to send or receive money, there are computer highways where these balances circulate, these are payment processing systems.The banks have their own network, the cards have their own, as well as the automatic boxes, which together integrate to interoperate with each other.

A new player

Without prejudice to what anyone can think about cryptocurrencies, the technology in which they transfer and store their positions, Blockchain, constitutes a new way of processing balances. In fact, it is much more than that, because by using the Internet as a freeway its access possibilities are almost unlimited and much lower operating costs.

Capital, security and costs.

Using Blockchain as technology at the service of balance records between accounts has enormous comparative advantages over existing alternatives:

By using the Internet as a communications network you can access and link anywhere you have with this coverage, almost everyone today.
The encryption protocol, separation into stored information blocks and unknown data distribution gives excellent computer security levels.
The use of distributed infrastructure combined with which they are used to access the network habitual devices such as mobile phones, personal computers or any personal device makes hardware investments almost zero. It takes advantage of the installed capacity of all parts, optimizing the use of what already has.

MBA (Multi Balance accounts)

Blockchain-based transaction processing systems are ideal for managing in one single account balances of balances of multiple species.Have a single account that allows you to keep balances on weights, dollars, stocks quoted in stock exchange, cryptocurrencies, fixed time, credit lines or positions on fixed deadlines, and that all of these may be transferable or interchangeable in real time.In addition to these attributes, very important in itself, the networks in Blockchain offer the possibility of generating in token or NFT formats certificates undoubtedly from participations on anything that at least two parts of value.

Regulatory framework

As in any new industry or technology, advancement and usability are prior to regulatory and legal definitions.Banks, payment processors, credit card issuers and, in general, financial institutions have traveled similar ways to meet three fundamental requirements:

Avoid the use of these means and procedures for illicit activities. For these purposes, KYC standards, or you know your client, require the financial system to have certain information and control over the holders of your accounts. In this sense, also, control the movement of accounts to avoid money laundering. In this sense, each holder is profiled according to their patrimonial capabilities, activity and consumption, alerting when any of the parameters come out of the “normal” so that the corresponding research occurs.
To provide security to customers about the availability and custody of their assets, for this, audited balance sheets, norms of central banks, income and insurance are mandatory for those who administer third-party funds or take public savings.
“Colaborate” with the fiss, returning to the banking and financial system from information agent to responsible funder.

New technologies now require new regulations.Daily we are witnesses of how the world adapts its laws, including the new formats of processing and registering balances, integrating traditional systems with the youngest.Interestingly, in recent weeks, two events have highlighted the trends that each nation adopts.While in our country we restrict the use and supply of digital assets and hinder the integration of the local banking system with the new technological world, in Panama is trying to do all the opposite through a modernto the lawitulada “CRIPT REPUBLIC: WHO HAS THE COMPATIBLE PANAMA REPUBLIC WITH DIGITAL ECONOMY, BLOCKCHAIN, ACTIVITIES AND INTERNET”.Clearly, the Panamanian legislators took the work of analyzing where the world of finance goes, inexorably, and they go in the way of framing their legal rules in this sense.As in many aspects of the lives of the Argentines, in which, over time, the conditions and opportunities of the citizens are equal, in relation to technological advances, we meet the standards for new possibilities to be postponed or adapted to the old solutions.Progress can occur in the same direction at higher or lower speed, go contramão multiplies and accelerates delay, in the face of a world in which competition by capturing those that most value-added produce has become a race of those who offer more.

5/17/2022 - economy-and-finance

From bankruptcy to inclusion

On financial inclusion

About ways to process payments

A new player

Capital, security and costs.

MBA (Multi Balance accounts)

Regulatory framework

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horacio gustavo ammaturo

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