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CGAP brief on deposit insurance as it applies to digital stored-value products
Consultative Group to Assist the Poor brief summarizes issues relevant to deposit insurance arising from emerging digital stored-value products issued by financial institutions and mobile network operators (MNOs). Observes three distinct approaches: i) exclusion approach, where digital stored-value products are not considered deposits and are not insured; ii) direct approach, where digital stored-value products are offered by licensed financial institutions, are considered deposits, and are eligible for insurance; and iii) pass-through approach, where the funds collected by providers who are not members of the deposit insurance system, such as MNOs, are placed in pooled custodial accounts with an insured institution.
Publisher:
International Organizations
Release date:
Oct 2016
Type:
Consultative, discussion and issues paper
Topics:
Deposit insurance, Financial inclusion, Consumer education and protection
Sectors:
Banking, Microfinance
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