On 5 July, the Bank for International Settlements published a Financial Stability Institute (FSI) Insight Paper on policy implementation, which explores how non-bank payment service providers (NBPSP) are regulated. It says that improvements in technology, coupled with growing demand for digital payment methods, are increasingly reshaping the way payments are made. It says that while the payments space continues to be dominated by banks in many countries, the role of NBPSP operating a variety of business models is gaining prominence. The paper provides a cross-country overview of the regulatory requirements for digital payment and e-money services offered by NBPSP. It benefited from responses to a survey of 75 jurisdictions conducted in early 2021 and was supplemented by a desktop review of public documents issued by selected authorities. Among the many findings are that the application of some regulatory requirements for payment services varies widely, novel technologies are creating the potential for new means of payments to emerge, and that regulatory approaches for stablecoins are starting to evolve.
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