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NewsBriefs






        This article contains summaries of news stories recently posted under   co-workers, and even pets, is increasing.
        Breaking Industry News on our homepage. For links to these and other
        full news stories, please visit www.greensheet.com/breakingnews.php.  Powell says emphatic no to CBDC
                                                                Federal Reserve Chairman Jerome Powell confirmed that
                                                                a U.S. central bank digital currency (CBDC) will not be
                                                                developed under his leadership. During his semi-annual
                                                                report to Congress, Powell was asked directly if the Fed
                                                                would commit to not creating a CBDC and responded
                                                                with a definitive "yes." This aligns with President Trump’s
                                                                recent executive order overturning a 2022 directive from
                                                                President Biden that explored digital asset regulation and
                                                                CBDC development.

                                                                CBDCs, digital forms of fiat currency issued by central
                                                                banks, have been adopted by fewer than a dozen coun-
        As CFPB goes, so goes Big Tech payments oversight       tries, mostly in the developing world. While they offer po-

        The Trump Administration shut down the Consumer Fi-     tential benefits like financial inclusion and improved pay-
        nancial Protection Bureau, leaving Big Tech payment ser-  ment efficiency, concerns remain over monetary stability,
                                                                privacy and illicit use. A recent survey found that while
        vices with fewer regulatory constraints than traditional
        financial institutions. Sen. Elizabeth Warren, the CFPB’s   most central banks are exploring CBDCs, issuance time-
                                                                lines are often delayed due to implementation challenges.
        chief architect, fiercely opposed the move, calling it a gift
        to corporations like Elon Musk’s X Money. Speaking at a   Zelle shatters records with unrivaled growth
        protest in Washington, D.C., she argued the CFPB has re-
        turned $21 billion to scammed consumers and should not   Zelle, the person-to-person payment network operated by
        be dismantled.                                          Early Warning Services, processed over $1 trillion in trans-
                                                                actions last year, a record for any P2P payment service. Its
        The CFPB’s new rule, finalized in November 2024, would   user base grew to 151 million, up 16 million from the pre-
        have allowed oversight of large digital payment apps pro-  vious year. The fourth quarter 2024 was Zelle’s strongest
        cessing over $50 billion annually. Warren claimed that   ever, fueled by holiday gifting and rising adoption.
        shuttering the agency is an attempt to shield X Money,
        Musk’s new payment service, from scrutiny. The Trump    Owned by major banks like JPMorgan Chase and Wells
        Administration halted CFPB operations, but Warren in-   Fargo, Zelle connects over 2,200 financial institutions, with
        sists only Congress can eliminate it.                   95 percent being community banks and credit unions.
                                                                Small businesses increasingly rely on Zelle, with one in
        Valentine's Day spending hits record high               four senders making payments to them, totaling $283 bil-
                                                                lion in 2024's fourth quarter.
        Valentine’s Day spending is set to hit a record $27.5 bil-
        lion, surpassing last year’s $25.8 billion and the previous   However, Zelle has faced scrutiny over fraud issues. The
        high of $27.4 billion in 2020, according to the National Re-  Consumer Financial Protection Bureau sued Zelle and
        tail Federation. Consumers plan to spend an average of   three owner banks over $870 million in fraud losses, but
        $188.81, with 56 percent celebrating the holiday, up from   the case may stall as the Trump Administration moves to
        53 percent last year. Men, in particular, are more engaged,   shut down the agency.
        with 55 percent planning to participate.
                                                                Mastercard simplifies checkout
        Popular gifts include candy (56 percent), flowers (40 per-  with new digital credential
        cent), and greeting cards (40 percent), while dining and
        entertainment spending is projected at $5.4 billion. Jew-  Mastercard introduced One Credential, a digital payment
        elry remains the most lucrative category at $6.5 billion.   solution that allows consumers—especially Gen Z—to
        Beyond romantic partners, spending on family, friends,   manage multiple payment methods in one place. De-
                                                                signed for digital natives, it enables users to personalize
                                                                their transactions by selecting debit, credit, prepaid or in-
                        Also find us on Facebook,               stallment payments.
                        LinkedIn & Twitter for the              Mastercard research shows that nearly 70 percent of Gen
                        most up-to-date stories,                Zers are working to improve their credit scores, yet many
                        can’t miss events and newest            lack guidance. One Credential offers structured credit op-
                        industry announcements.                 tions, helping them build financial health. Users can set
                                                                preferences online or via an app. Key U.S. partners include
                                                                Galileo Financial Technologies, Marqeta and Lithic.

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