Update from Cash Essentials

Reply on DGroups | 11 comments

Digital finance / mobile money in Africa

Nov. 23, 2022, 1:02 p.m.

Moussa Mamane

Bonjour à tous,
c'est vraiment très instructifs.
Merci beaucoup James!!!

Le dim. 20 nov. 2022 à 21:55, James Shepherd-Barron <
[Hidden email]> a écrit :

> Dear fellow CaLPers and MiCers.
>
> Here are recent highlights from academic and cash management industry
> sources that you might find relevant for your cash and markets-based
> policy-making and programming.
>
> With thanks to Prof. Batiz-Lazo of Northumbria University, the NEP Project
> (General information on the NEP project can be found at
> http://nep.repec.org), Currency News International, The Payments Journal,
> Cash & Payments News, ATM Marketplace and Payments Afrika.
>
> For a wider perspective on Cash and Crises, including podcasts and
> videographics produced with the aid community in mind, see:
> https://cashessentials.org/cash-crises/
>
> *Chen: A Demand-Side View of Mobile Internet - Adoption in the Global
> South; Policy Research Working Paper 9590, World Development , March 2021*
>
> Mobile technologies show great potential to accelerate internet access and
> usage, especially in developing countries. A better understanding of key
> drivers and main constraints for mobile internet access is the first
> prerequisite for governments to design targeted policy solutions. This
> study exploits a household survey that collects information on information
> and communications technology access and usage at the household and
> individual levels in 22 countries in the Global South. The study finds that
> in addition to infrastructure investment, which has been the main focus of
> many developing countries, other demand-side factors are of critical
> importance. Across the developing world, females, the elderly, those who
> live in rural areas, and those who have a relatively low level of income or
> education are less likely to adopt mobile internet. Social network effects
> are found to have a significant positive impact on the usage of mobile
> internet. Across regions, although the factors affecting the adoption of
> mobile internet remain largely the same, the magnitudes of their impacts
> vary. In Africa, the impact of education level is more salient than in
> other regions, implying an urgent need to improve digital literacy.
>
> URL:
> https://documents1.worldbank.org/curated/en/492871616350929155/pdf/A-Demand-Side-View-of-Mobile-Internet-Adoption-in-the-Global-South.pdf
>
>
>
> *Chehade: Blockchain and Distributed Ledger Technology; HAL Open Science,
> 30 September 2022*
>
> Blockchain technology is a distributed network on decentralized machines
> that allows transactions to be carried out and validated. The term
> blockchain has covered various uses in the banking market for several
> years. By considering the architecture of the blockchain and the banking
> infrastructure, we clarify at the uses of these technologies by showing the
> differences between distributed ledger (DLT) and blockchain. We present the
> obstacles created by public blockchains and the contributions of private
> blockchains in order to better understand their adoption possibilities in
> the banking environment. The analysis shows that the consortium DLT is
> currently the most suitable prototype to meet the needs and constraints of
> the banking market
>
> URL: https://hal-normandie-univ.archives-ouvertes.fr/hal-03779240/document
>
>
>
> *Ubeda etal: The sustainable practices of multinational banks as drivers
> of financial inclusion in developing countries; London School of Economics,
> Finance Research Letters (online), September 2022*
>
> Lack of access to banking generates inequality in the developing world;
> therefore, financial inclusion is a crucial objective of the Sustainable
> Development Goals. We investigate the impact of sustainable practices of
> multinational banks (MNBs) on financial inclusion. Specifically, we find
> that as MNBs become sustainable, the use of mobile banking intensifies.
> This finding is consequential because mobile banking is one of the most
> powerful means to achieve financial inclusion in the developing world.
>
> URL: http://eprints.lse.ac.uk/116428/
>
>
>
> *Lambolia and Travaglino: Statistical sources for assessing financial
> literacy; Bank of Italy, Occasional Paper Number 725, October 2022*
>
> In the past decade, institutions, researchers and professionals all around
> the world have designed surveys with the aim of defining a metric for
> measuring financial literacy. However, the topic is still under discussion
> due to the complexity of the definition of financial literacy. In this
> paper, we analyse in detail the way financial literacy is defined and
> measured. We also report all the information gathered in each survey with a
> special focus on digital skill indicators.
>
> URL:
> https://www.bancaditalia.it/pubblicazioni/qef/2022-0725/QEF_725_22.pdf
>
>
>
> *Yeyouomo et al: Fintechs and the financial inclusion gender gap in
> Sub-Saharan African countries; AGDI Working Paper, WP/22/083, September
> 2022*
>
> This study addresses the issue of financial innovation in developing
> countries, focusing specifically on the role fintechs have in closing the
> gender gap of financial inclusion in Sub-Saharan Africa (SSA) over the
> period 2011-2017. The results show that fintechs reduce the financial
> inclusion gender gap by mitigating the gender gap in access to and use of
> financial services. Furthermore, they cast doubt on the ability of fintechs
> development to bridge this gap on its own, and hint on the joint importance
> of targeted policy initiatives aimed at directly closing the gender gap to
> this end.
>
> URL:
> http://www.afridev.org/RePEc/agd/agd-wpaper/Fintechs-and-the-financial-inclusion-gender-gap-in-Sub-Saharan-African-countries.pdf
>
>
>
> *James Shepherd-Barron MIH, PhD(hc)*
>
> - *Disaster Risk Management Advisor* (*in case you're wondering, this
> means I advise Governments, aid organisations and private sector companies
> on the modelling and management of international disaster risk*)
> - *Adjunct Professor* at the Institute of International Humanitarian
> Affairs, Fordham University
> - *CEO* of The Aid Workers Union, the support service for independent
> aid professionals (https://aidworkersunion.org
> <https: www.aidworkersunion.org="">)
> - *Founder* of The ATM Appreciation Society (https://atmas.org)
> - *Author* of 'Absolute Disasters' and other books (https://amazon.com)
>
>
> Mobile: +44 7785 70 34 90
> Skype: james.s-b
> Twitter: @jshepherdbarron
> Website: https://www.aidessentials.org
>
> If you think you have received this e-mail in error, please reply to the
> sender to that effect and delete this email promptly.
>
> Please note: This email has been checked for computer viruses, but be
> aware that this service is not 100% reliable. Do not open any attachment
> unless you have specifically requested it. The sender bears no
> responsibility for any such transmission.
>
>
>
>
>
>
</https:>

Nov. 20, 2022, 8:54 p.m.

James Shepherd-Barron

Dear fellow CaLPers and MiCers.

Here are recent highlights from academic and cash management industry
sources that you might find relevant for your cash and markets-based
policy-making and programming.

With thanks to Prof. Batiz-Lazo of Northumbria University, the NEP Project
(General information on the NEP project can be found at http://nep.repec.org),
Currency News International, The Payments Journal, Cash & Payments News,
ATM Marketplace and Payments Afrika.

For a wider perspective on Cash and Crises, including podcasts and
videographics produced with the aid community in mind, see:
https://cashessentials.org/cash-crises/

*Chen: A Demand-Side View of Mobile Internet - Adoption in the Global
South; Policy Research Working Paper 9590, World Development , March 2021*

Mobile technologies show great potential to accelerate internet access and
usage, especially in developing countries. A better understanding of key
drivers and main constraints for mobile internet access is the first
prerequisite for governments to design targeted policy solutions. This
study exploits a household survey that collects information on information
and communications technology access and usage at the household and
individual levels in 22 countries in the Global South. The study finds that
in addition to infrastructure investment, which has been the main focus of
many developing countries, other demand-side factors are of critical
importance. Across the developing world, females, the elderly, those who
live in rural areas, and those who have a relatively low level of income or
education are less likely to adopt mobile internet. Social network effects
are found to have a significant positive impact on the usage of mobile
internet. Across regions, although the factors affecting the adoption of
mobile internet remain largely the same, the magnitudes of their impacts
vary. In Africa, the impact of education level is more salient than in
other regions, implying an urgent need to improve digital literacy.

URL:
https://documents1.worldbank.org/curated/en/492871616350929155/pdf/A-Demand-Side-View-of-Mobile-Internet-Adoption-in-the-Global-South.pdf

*Chehade: Blockchain and Distributed Ledger Technology; HAL Open Science,
30 September 2022*

Blockchain technology is a distributed network on decentralized machines
that allows transactions to be carried out and validated. The term
blockchain has covered various uses in the banking market for several
years. By considering the architecture of the blockchain and the banking
infrastructure, we clarify at the uses of these technologies by showing the
differences between distributed ledger (DLT) and blockchain. We present the
obstacles created by public blockchains and the contributions of private
blockchains in order to better understand their adoption possibilities in
the banking environment. The analysis shows that the consortium DLT is
currently the most suitable prototype to meet the needs and constraints of
the banking market

URL: https://hal-normandie-univ.archives-ouvertes.fr/hal-03779240/document

*Ubeda etal: The sustainable practices of multinational banks as drivers of
financial inclusion in developing countries; London School of Economics,
Finance Research Letters (online), September 2022*

Lack of access to banking generates inequality in the developing world;
therefore, financial inclusion is a crucial objective of the Sustainable
Development Goals. We investigate the impact of sustainable practices of
multinational banks (MNBs) on financial inclusion. Specifically, we find
that as MNBs become sustainable, the use of mobile banking intensifies.
This finding is consequential because mobile banking is one of the most
powerful means to achieve financial inclusion in the developing world.

URL: http://eprints.lse.ac.uk/116428/

*Lambolia and Travaglino: Statistical sources for assessing financial
literacy; Bank of Italy, Occasional Paper Number 725, October 2022*

In the past decade, institutions, researchers and professionals all around
the world have designed surveys with the aim of defining a metric for
measuring financial literacy. However, the topic is still under discussion
due to the complexity of the definition of financial literacy. In this
paper, we analyse in detail the way financial literacy is defined and
measured. We also report all the information gathered in each survey with a
special focus on digital skill indicators.

URL: https://www.bancaditalia.it/pubblicazioni/qef/2022-0725/QEF_725_22.pdf

*Yeyouomo et al: Fintechs and the financial inclusion gender gap in
Sub-Saharan African countries; AGDI Working Paper, WP/22/083, September
2022*

This study addresses the issue of financial innovation in developing
countries, focusing specifically on the role fintechs have in closing the
gender gap of financial inclusion in Sub-Saharan Africa (SSA) over the
period 2011-2017. The results show that fintechs reduce the financial
inclusion gender gap by mitigating the gender gap in access to and use of
financial services. Furthermore, they cast doubt on the ability of fintechs
development to bridge this gap on its own, and hint on the joint importance
of targeted policy initiatives aimed at directly closing the gender gap to
this end.

URL:
http://www.afridev.org/RePEc/agd/agd-wpaper/Fintechs-and-the-financial-inclusion-gender-gap-in-Sub-Saharan-African-countries.pdf

*James Shepherd-Barron MIH, PhD(hc)*

- *Disaster Risk Management Advisor* (*in case you're wondering, this
means I advise Governments, aid organisations and private sector companies
on the modelling and management of international disaster risk*)
- *Adjunct Professor* at the Institute of International Humanitarian
Affairs, Fordham University
- *CEO* of The Aid Workers Union, the support service for independent
aid professionals (https://aidworkersunion.org
<https: www.aidworkersunion.org="">)
- *Founder* of The ATM Appreciation Society (https://atmas.org)
- *Author* of 'Absolute Disasters' and other books (https://amazon.com)

Mobile: +44 7785 70 34 90
Skype: james.s-b
Twitter: @jshepherdbarron
Website: https://www.aidessentials.org

If you think you have received this e-mail in error, please reply to the
sender to that effect and delete this email promptly.

Please note: This email has been checked for computer viruses, but be
aware that this service is not 100% reliable. Do not open any attachment
unless you have specifically requested it. The sender bears no
responsibility for any such transmission.
</https:>

Nov. 1, 2022, 12:28 p.m.

James Shepherd-Barron

Dear fellow CaLPers and MiCers.

Here are some recent highlights from academic and cash management industry
sources that you might find relevant for your cash and markets-based
policy-making and programming.

With thanks to Prof. Batiz-Lazo of Northumbria University and the NEP
Project, Currency News International, The Payments Journal, Cash & Payments
News, ATM Marketplace and Payments Afrika.

For a wider perspective on Cash and Crises, including podcasts and
videographics produced with the aid community in mind, see:
https://cashessentials.org/cash-crises/

*World Bank: Consumer Risks in Fintech; Policy Research Paper, April 2021*

Fintech is increasingly recognized as a key enabler for financial sectors
worldwide, enabling more efficient and competitive financial markets while
expanding access to finance for traditionally underserved consumers. It
supports economic growth and poverty reduction by strengthening financial
development, inclusion, and efficiency. Along with its benefits, fintech
poses a range of risks to consumers that need to be mitigated. Countries
such as Tanzania and Kenya have seen large numbers of borrowers who are
unable to repay their loans due to irresponsible lending practices. A 2017
MicroSave study found that 2.7 million Kenyans were blacklisted in credit
reference bureaus in the previous three years, 400,000 of these for amounts
of less than $2. Similarly, while there has been significant uptake of
electronic money (e-money) in many developing markets, the rise in usage
has been accompanied by a rise in fraud and unscrupulous fee-charging
practices.

URL:
https://openknowledge.worldbank.org/bitstream/handle/10986/35699/Consumer-Risks-in-Fintech-New-Manifestations-of-Consumer-Risks-and-Emerging-Regulatory-Approaches-Policy-Research-Paper.pdf?sequence=1

*Asongu and Salahodjaev: Demand-side mobile money drivers of financial
inclusion - minimum economic growth thresholds for mobile money
innovations; European Xtramile Centre of African Studies (EXCAS) Working
Paper 22/060, January 2022*

There are growing concerns as to whether more bank accounts and associated
favourable externalities such as mobile phone ownership and ATM access are
leading to sustained financial inclusion in developing countries. This
study provides economic growth critical masses or thresholds that need to
be exceeded in order for demand-side mobile money factors to favourably
drive mobile money innovations for financial inclusion.

URL:
http://publications.excas.org/RePEc/exs/exs-wpaper/Demand-side-mobile-money-drivers-of-financial-inclusion-economic-growth-thresholds.pdf

*Anyidoho et al: Mobile Money Taxation and Informal Workers - Evidence from
Ghana’s E-Levy; International Centre for Tax and Development at the
Institute of Development Studies (ICTD) Working Paper 146, September 2022*

The use of digital financial services, including money transfers and mobile
money, have expanded widely in lower-income countries in the past decade;
47 percent of the population of sub-Saharan Africa (548 million) had a
registered mobile money account in 2020, with 29 percent of those accounts
representing active users. In recent years, governments in lower-income
countries have increasingly introduced specific taxes on mobile money
transfers as a means to raise revenue. These are often explicitly promoted
as a way of taxing informal economic activity, but critics have noted their
potential negative impact on lower-income groups. Ghana’s electronic
transfer levy (E-levy), introduced in May 2022, was explicitly justified as
a way of taxing Ghana’s informal economy, but includes a 100 cedi/day
threshold to limit the tax burden on lower-income groups. This study finds
that, while the overall effect of the E-levy is highly regressive, with
users in the bottom quintile paying the largest share as a proportion of
their income, the threshold is effective in sheltering some lower-income
users from facing a new tax burden (Ed: The paper makes little mention of
tax evasion or avoidance by corporate financial service providers at home
and abroad).

URL:

https://opendocs.ids.ac.uk/opendocs/bitstream/handle/20.500.12413/17625/ICTD_WP146.pdf

*Mattsson et al: Measuring the Velocity of Money; Leiden Institute of
Advanced Computer Science, September 2022*

The rate at which money changes hands is an important macroeconomic
indicator and plays a key role in determining inflation. This unpublished
paper estimates the transfer velocity of Sarafu, a digital community
currency in Kenya, using a newly available data set describing individual
transactions over a period of time that includes the Covid-19 pandemic.
Analysis reveals distributional, temporal and geographical heterogeneity in
spending patterns. Some units of Sarafu are held for minutes, others for
months. The system experienced dramatic changes in its total balance and in
its average transfer velocity as the Covid-19 pandemic unfolded, and in
response to known administrative operations. Moreover, transaction rhythms
differed substantially between rural and urban areas, in particular, money
moves faster in urban communities. Successful macroeconomic policies
require understanding how individuals experience the economy and when those
experiences diverge. The data-driven approach described in this paper
improves our understanding of the heterogeneity underlying macroeconomic
indicators, and represents an advance in measurement that stands to improve
economic monitoring.

URL: https://arxiv.org/pdf/2209.01512.pdf

*Use of Satellites for Protection of Cash: **Cash & Payments News, 31
October 2022*

Organisations moving money around in insecure environments will be
interested to know about a new ‘cash tracking solution’ which enables fully
integrated communication between cash security cases, cash carrying
vehicles, ATMs, and security company control centres. The system manages
the security of multiple, high value assets from a centralised hub,
accessible on desktop or mobile with active control while providing
real-time visibility, location and security data. This minimises losses
from theft, damage, and equipment downtime, and at the same time protects
people. The system provides accuracy within 5m for a global location fix.
Another feature is two-way communication where cash in transit is remotely
monitored and unlocked using remote third parties. This allows the system
to actively respond to a security alert. It is also possible to incorporate
‘intelligent banknote destruction systems’.

URL (limited access):
https://cashpaymentnews.com/news/2022/oct/03/secure-innovation-uses-satellites-cash-protection/

If you have any comments or suggestions, please feel free to contact me
directly (i.e preferably not via the D-Groups).

All the Best

*James Shepherd-Barron MIH, PhD(hc)*

- *Disaster Risk Management Advisor* (*in case you're wondering, this
means I advise Governments, aid organisations and private sector companies
on the modelling and management of international disaster risk*)
- *Adjunct Professor* at the Institute of International Humanitarian
Affairs, Fordham University
- *CEO* of The Aid Workers Union, the support service for independent
aid professionals (https://aidworkersunion.org
<https: www.aidworkersunion.org="">)
- *Founder* of The ATM Appreciation Society (https://atmas.org)
- *Author* of 'Absolute Disasters' and other books (https://amazon.com)

Mobile: +44 7785 70 34 90
Skype: james.s-b
Twitter: @jshepherdbarron
Website: https://www.aidessentials.org

If you think you have received this e-mail in error, please reply to the
sender to that effect and delete this email promptly.

Please note: This email has been checked for computer viruses, but be
aware that this service is not 100% reliable. Do not open any attachment
unless you have specifically requested it. The sender bears no
responsibility for any such transmission.
</https:>

Oct. 10, 2022, 9:03 p.m.

James Shepherd-Barron

Dear fellow CaLPers and MiCers.

Here are some recent highlights from academic and cash management industry
sources that you might find relevant for your cash and markets-based
policy-making and programming.

With thanks to Prof. Batiz-Lazo of Northumbria University and the NEP
Project, Currency News International, The Payments Journal, Cash & Payments
News, ATM Marketplace and Payments Afrika.

For a wider perspective on Cash and Crises, see:
https://cashessentials.org/cash-crises/

*Ozili and Kitakogelu: Financial inclusion in Nigeria - an overview; Munich
Personal RePEc Paper No. 113572, posted 30 Jun 2022*

Financial inclusion can accelerate economic diversification, yield economic
gains and promote shared prosperity. However, there are obstacles to
financial inclusion in Nigeria: On the demand side, the lack of awareness
about existing financial services, rising financial illiteracy,
superstitious and religious beliefs about banking services, high
transaction costs and the general lack of interest in banking products and
services by some segments of the rural population. On the supply side, lack
of bank branch penetration, unwillingness of banks to sustain financial
inclusion programs due to high costs, and the unwillingness of banks to
bear the social cost of a bank-led financial inclusion programmes.

Non-peer reviewed opinion piece

*https://mpra.ub.uni-muenchen.de/113572/1/MPRA_paper_113572.pdf*
<https: 1="" 113572="" mpra.ub.uni-muenchen.de="" mpra_paper_113572.pdf="">

*Karlan et al: Social Protection and Social Distancing During the Pandemic
- Mobile Money Transfers in Ghana; U.S National Bureau of Economic
Research, Working Paper No.30309, July 2022*

This study on the impact of mobile money transfers to low-income Ghanaians
during the COVID-19 pandemic found that 40% of the transfers were spent on
food and that cash transfers can promote adherence to public health
protocols during a pandemic.

*https://www.nber.org/papers/w30309* <https: papers="" w30309="" www.nber.org="">

*World Food Programme: G2P Digital Payments & Financial Inclusion for
Social Resilience; International Policy Centre for Inclusive Growth, August
2022*

The Government of Mozambique is committed to digital payments and expanding
economic inclusion to the country’s most vulnerable populations. The
Digital Payment Readiness Index (PPD) aims to assign scores at the
neighbourhood level to determine the most appropriate payment mechanism for
each location, according to pre-identified criteria, including access to
financial services, network coverage and population density.

Please note that both the lead-author and publisher of this one-page
briefing note are UN organisations whose views might therefore not reflect
the wider debate about G2P payments

*https://ipcig.org/sites/default/files/pub/en/OP515_G2P_digital_payments_and_financial_inclusion_for_social_resilience.pdf*
<https: default="" en="" files="" ipcig.org="" op515_g2p_digital_payments_and_financial_inclusion_for_social_resilience.pdf="" pub="" sites="">

*Chaudhury and Choe: Digital Privacy: GDPR and Its Lessons for Australia;
Monash Business School, Discussion Paper no. 2022-19, September 2022*

This article discusses how Europe’s GDPR can be refined and standardised to
be more effective in protecting privacy in the digital era while not
adversely affecting the digital economy (in Australia) that relies heavily
on data. We argue that an ideal data policy should be informative and
transparent about the potential privacy costs while giving consumers a menu
of opt-in choices into which they can self-select.

*http://monash-econ-wps.s3-ap-southeast-2.amazonaws.com/RePEc/mos/moswps/2022-19.pdf*
<http: 2022-19.pdf="" monash-econ-wps.s3-ap-southeast-2.amazonaws.com="" mos="" moswps="" repec="">

*Chiu et al: Grasping De(centralized) Fi(nance) through the Lens of
Economic Theory; Queen's University Working Paper No.1489, August 2022*

In this article, an analysis of the value proposition of De(centralized)
Fi(nance) and its limitations using a simple stylized model of
collateralized lending is explored. DeFi uses a decentralized ledger to run
smart contracts that automatically enforce the terms of a lending contract
and safeguard the collateral. DeFi can lower the costs associated with
intermediated lending and improve nancial inclusion. Limitations are the
volatility of crypto collateral and stablecoins used for settlement, the
possible incompleteness of smart contracts and the lack of a reliable
oracle. A proper infrastructure reducing such limitations could improve the
value of DeFi.

*https://www.econ.queensu.ca/sites/econ.queensu.ca/files/wpaper/qed_wp_1489.pdf*
<https: econ.queensu.ca="" files="" qed_wp_1489.pdf="" sites="" wpaper="" www.econ.queensu.ca="">

If you have any comments or suggestions, please feel free to let me know.

Enjoy.

*James Shepherd-Barron MIH, PhD(hc)*

- *Disaster Risk Management Consultant* (*in case you're wondering, this
means I advise Governments, UN Agencies, International NGOs and the private
sector on the modelling and management of international disaster risk*)
- *Adjunct Professor* at the Institute of International Humanitarian
Affairs, Fordham University
- *CEO* of The Aid Workers Union, the support service for independent
aid professionals (https://aidworkersunion.org
<https: www.aidworkersunion.org="">)
- *Founder* of The ATM Appreciation Society (https://atmas.org)
- *Author* of 'Absolute Disasters' (https://amazon.com)

Mobile: +44 7785 70 34 90
Skype: james.s-b
Twitter: @jshepherdbarron
Website: https://www.aidessentials.org

The information contained in this e-mail message may be privileged,
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this email promptly.

Please note: This email has been checked for computer viruses, but be
aware that this service is not 100% reliable. Do not open any attachment
unless you have specifically requested it. The sender bears no
responsibility for any such transmission.
</https:></https:></http:></https:></https:></https:>

Aug. 24, 2022, 6:59 a.m.

James Shepherd-Barron

Dear fellow CaLPers and MiCers.

Here are recent highlights from academic and cash management industry
sources that you might find relevant for your cash and markets-based
policy-making and programming.

With thanks to Prof. Batiz-Lazo of Northumbria University, the NEP Project
(General information on the NEP project can be found at http://nep.repec.org),
Currency News International, The Payments Journal, Cash & Payments News,
ATM Marketplace and Payments Afrika.

For a wider perspective on Cash and Crises, see:
https://cashessentials.org/cash-crises/

*Kouladoum et al: Digital Technologies and Financial Inclusion in
Sub-Saharan Africa; African Governance and Development Institute, Working
Paper 22/034, January 2022*

The findings indicate that the rate of financial inclusion in Sub Saharan
Africa rises with increasing digital technologies. There should be more
investments in terms of promoting financial and technological
infrastructures and also in the human capital sector since financial
literacy can play an important part in promoting financial stability and
inclusive finance in Africa.

*http://www.afridev.org/RePEc/agd/agd-wpaper/Digital-Technologies-and-Financial-Inclusion-in-Sub-Saharan-Africa.pdf*
<http: agd="" agd-wpaper="" digital-technologies-and-financial-inclusion-in-sub-saharan-africa.pdf="" repec="" www.afridev.org="">

*Birch: Cashlessness, Crime and Central Bank Digital Currency; Cash &
Payment News Weekly, 8 August 2022*

“When the revolution comes, it will be about parking” (J.G Ballard). An
interesting opinion piece on the intersection of anthropology and
technology and whether cash diminishes net welfare. The author argues that
the shift to a cashless society must be planned to help groups that might
be marginalised or excluded so that they share in the net welfare benefits
of cashlessness. But is this happening? Is it even possible? What role
should the non-governmental sector play?

*https://dgwbirch.substack.com/p/cashlessness-crime-and-central-bank*
<https: cashlessness-crime-and-central-bank="" dgwbirch.substack.com="" p="">

*Abounabhan et al: Should Governments Tax Digital Financial Services?
Institute of Development Studies, Brighton. Research Brief No.77, June 2022
*

Low-income countries are facing strong pressure to bring in more revenue.
With digital financial services (DFS) rapidly expanding across Africa and
other low-income countries a growing number are considering new taxes on
DFS. This paper explores the rationale for these taxes and their likely
impacts in order to help governments and other stakeholders arrive at
policies that best meet their competing needs.

https://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/17583

*Merchant Machine: Countries Most Reliant on Cash in 2021, 2 February 2021*

This UK company has designed a ‘cash resilience index’ which could provide
a useful model for aid organisations when assessing disaster resilience,
especially as humanitarian cash & voucher assistance continues to scale.
Among the indicators used are: Population Unbanked, Proportion of
Transactions made with Cash, Internet penetration, and numbers of ATMs per
100,000 population.

https://merchantmachine.co.uk/most-reliant-on-cash/

*Mobile Money Agents Lose Out; Cash & Payments News online, 1 August 2022*

Africa’s mobile money agents face an uncertain future: Their numbers are
growing faster than the transactions they handle. Mobile money is a system
that allows people without bank accounts to transfer money using their
phones. Agents are its stevedores, loading and unloading cash. There are
now 3m of them in Africa, roughly as many as the number of ATMs in the
world. Mobile operators pay them a commission on transactions, rather than
employ them directly, placing agents in a contradiction: the more that
money goes digital, the more uncertain their future. But the main winners
are the mobile network operators, who earn higher margins on digital
transactions than on “cash-in, cash-out” services.

https://cashpaymentnews.com/news/2022/aug/01/payment-news/

*James Shepherd-Barron MIH, PhD (hc)*
*Disaster Management Consultant* (*in case you're wondering, this means I
advise Governments, UN Agencies, International NGOs and the private sector
on the modelling and management of international disaster risk*)

I am also an Adjunct Professor at Fordham University and CEO of The* Aid
Workers Union*, the support service for independent aid professionals (
https://www.aidworkersunion.org)

Mobile: +44 7785 70 34 90
Skype: james.s-b
Twitter: @jshepherdbarron
https://www.aidworkersunion.org <https: www.aidessentials.org="">

- DREAM BIG - Demonstrate vision and insight
- BE BOLD - Have the courage to take risks and make tough decisions
- OWN IT - Take full accountability for your decisions and actions
- WORK AS A TEAM - Don't just coordinate, collaborate
- DO THE RIGHT THING - Conduct yourself with honesty and integrity at
all times
- SHOW RESPECT - Treat others as you would expect to be treated
- LOVE WHAT YOU DO - Bring passion and pride to what you do

The information contained in this e-mail message may be privileged,
confidential, and protected from disclosure. Any unauthorised use,
printing, copying, disclosure, dissemination of or reliance upon this
communication by persons other than the intended recipient may be subject
to legal restriction, sanction or redress. If you think you have received
this e-mail in error, please reply to the sender to that effect and delete
this email promptly.

Please note: This email has been checked for computer viruses, but be
aware that this service is not 100% reliable. Do not open any attachment
unless you have specifically requested it. The sender bears no
responsibility for any such transmission.
</https:></https:></http:>

Aug. 4, 2022, 7:37 p.m.

James Shepherd-Barron

Dear fellow CaLPers and MiCers.

Here are recent highlights from academic and cash management industry
sources that you might find relevant for your cash and markets-based
policy-making and programming.

With thanks to Prof. Batiz-Lazo of Northumbria University, the NEP Project
(General information on the NEP project can be found at http://nep.repec.org),
Currency News International, The Payments Journal, Cash & Payments News,
ATM Marketplace and Payments Afrika.

For a wider perspective on Cash and Crises, see:
https://cashessentials.org/cash-crises/

*Cooper: How ATMs deliver remittances; ATM Marketplace (online), 2 August
2022*

The remittance market – in which migrant workers send funds back home to
family members – was valued at $17.88 billion in 2021 and is expected to
grow at a compound annual growth rate of 15% from 2022 to 2030. Although
migrants use a number of methods to send funds, one popular avenue is cash,
due in part to the lack of digital payments options in many countries. As a
result, migrant workers are using methods such as prepaid debit cards,
which their family members can then redeem for cash at ATMs. Meanwhile,
remittances have become the most important source of foreign exchange
inflows to emerging economies, a trend which continued even through the
Covid pandemic.

You can access the full article here. It is of relevance despite appearing
in an ATM industry publication

https://www.atmmarketplace.com/articles/how-atms-deliver-remittances/

*Ebner: Stablecoins - what they mean for the future of money; Schroders, 18
July 2022*

In this ‘must read’ article, the investment bank Schroders argues that
stablecoins offer a cheaper and faster alternative to payments processing
and international remittances, giving rise to a first real-world use case
for digital assets. The benefits start with the ability to hold stablecoins
in digital wallets on phones without going through the banking system. This
allows people to make payments, including sending currency globally
instantly and, essentially, free of charge. No more fees of 3% or more and
no more long delays in settlements. More competition in domestic payment
markets should also drive down card fees. Furthermore, programmable money
using smart contracts is possible with stablecoins. Schroders gives
examples of governments using this capability to target fiscal expenditure,
enable tiered interest rates for selected groups and to make direct
payments to households. Finally, digital wallets allow financial products
to become open-sourced and programmable. This offers opportunities to give
the unbanked access to financial products.

https://www.schroders.com/en/gr/professional-investor/insights/markets/stablecoins--what-they-mean-for-the-future-of-money/

*Seitz and Rösl: **On the Stabilizing Role of Cash for Societies; Institute
for Monetary and Financial Stability, Goethe University of Frankfurt;
Working Paper Series No.167, June 2022*

This paper focuses on the stabilising role of cash from a society-wide
perspective. Starting with conceptual remarks on the importance of money
for the economy in general, special attention is paid to the unique
characteristics of cash. Using two separate case studies, one on
demonetization in India in 2016 and the other on cash supply during various
crises in Greece since 2008, the paper concludes that an efficient payment
mix necessarily includes cash as it helps stabilise an economy in times of
crises.

You can access the full paper here:

https://www.imfs-frankfurt.de/fileadmin/user_upload/IMFS_WP/IMFS_WP_167.pdf

*Shy: Digital Currency, Digital Payments, and the ‘Last Mile’to the
Unbanked; Federal Reserve Bank of Atlanta Occasional Policy Paper No.9,
August 2021*

Digital forms of payment are either not accessible or highly costly for
unbanked consumers. This is because these forms of payment must be "funded"
by some source of money, such as cash or a bank account. That creates the
"last-mile" problem for the unbanked. This article examines the various
solutions, including those offered by pre-paid debit cards and M-Pesa.

You can access the full paper here:

https://www.atlantafed.org/-/media/documents/research/publications/policy-hub/2021/08/02/09-digital-payments-and-unbanked.pdf

*Zetzsche et al: DLT-Based Enhancement of Cross-Border Payment Efficiency –
a Legal and Regulatory Perspective; Bank of International Settlements
Working Paper No.1015, May 2022*

Financial laws and regulations assume that regulated activities and
functions are concentrated in a single legal entity responsible and
accountable for operations and compliance. Even with regard to financial
market infrastructure where the regulatory perspective acknowledges the
need for interoperability of many entities as a system, each entity is
subject to its own rules and regulations and can thus meet its own
compliance requirements independent of other system participants. The
entity-focused regulatory paradigm is under pressure in the world of
international payments where some ledgers, and thus the performance of the
services, are distributed. DLT arrangements could provide an alternative to
the traditional reliance on a mutually trusted central entity to transfer
funds and enable the creation of new foundational infrastructures by
distributing technical functions or linking existing systems. As such, we
identify and outline concepts for use cases where DLT has potential for
improving the efficiency of cross-border payments.

You can access the full paper here: https://www.bis.org/publ/work1015.pdf

*Kouladoum et al: Digital Technologies and Financial Inclusion in
Sub-Saharan Africa; European Xtramile Centre of African Studies Working
Paper 034, 2022*

This meta-analysis finds that the rate of financial inclusion in Sub
Saharan Africa rises with increasing digital technologies and suggests
there should be more investment in terms of promoting financial and
technological infrastructures and also in the human capital sector since
financial literacy can play an important part in promoting financial
stability and inclusive finance in Africa.

You can access the full paper here. It has not been peer-reviewed:
http://publications.excas.org/RePEc/exs/exs-wpaper/Digital-Technologies-and-Financial-Inclusion-in-Sub-Saharan-Africa.pdf

*James Shepherd-Barron MIH, PhD (hc)*
*Disaster Management Consultant* (*in case you're wondering, this means I
advise Governments, UN Agencies, International NGOs and the private sector
on the modelling and management of international disaster risk*)

I am also an Adjunct Professor at Fordham University and CEO of The* Aid
Workers Union*, the support service for independent aid professionals (
https://www.aidworkersunion.org)

Mobile: +44 7785 70 34 90
Skype: james.s-b
Twitter: @jshepherdbarron
https://www.aidworkersunion.org <https: www.aidessentials.org="">

- DREAM BIG - Demonstrate vision and insight
- BE BOLD - Have the courage to take risks and make tough decisions
- OWN IT - Take full accountability for your decisions and actions
- WORK AS A TEAM - Don't just coordinate, collaborate
- DO THE RIGHT THING - Conduct yourself with honesty and integrity at
all times
- SHOW RESPECT - Treat others as you would expect to be treated
- LOVE WHAT YOU DO - Bring passion and pride to what you do

The information contained in this e-mail message may be privileged,
confidential, and protected from disclosure. Any unauthorised use,
printing, copying, disclosure, dissemination of or reliance upon this
communication by persons other than the intended recipient may be subject
to legal restriction, sanction or redress. If you think you have received
this e-mail in error, please reply to the sender to that effect and delete
this email promptly.

Please note: This email has been checked for computer viruses, but be
aware that this service is not 100% reliable. Do not open any attachment
unless you have specifically requested it. The sender bears no
responsibility for any such transmission.
</https:>

July 13, 2022, 8:51 a.m.

James Shepherd-Barron

Dear fellow CaLPers and MiCers.

Here are recent highlights from academic and cash management industry
sources that you might find relevant for your cash and markets-based
programming.

With thanks to Prof. Batiz-Lazo of Northumbria University, the NEP Project
(General information on the NEP project can be found at http://nep.repec.org),
Currency News International, The Payments Journal, Cash & Payments News,
ATM Marketplace and Payments Afrika.

For a wider perspective on *Cash and Crises*, see:
https://cashessentials.org/cash-crises

*Danish Payments Overview: Cash & Payments News, 24 June 2022*

The National Bank of Denmark has issued an analysis that summarises the
full range of digital money options available today. The analysis describes
with great clarity how payments are organised and their strengths and
weaknesses. Beyond looking at cash, bank deposits and e-money, the paper
explains stablecoins and reviews CBDCs in detail. A relatively short
document captures in one place a great overview of the contemporary payment
landscape.

https://www.nationalbanken.dk/en/publications/Documents/2022/06/ANALYSIS_no%208_New%20types%20of%20digital%20money.pdf

*Vinsel and Funk: Blinded by the Hype; Openmind.org online, 23 June 2022 *

This article is a bit outside the remit of this update as it doesn’t
mention cash or fintech once. Yet, it asks us to consider what happens when
we fail to distinguish between genuine technological innovation and the
weaponised form of collective over-optimism we call ‘hype’? It asks us to
apply four basic tests to technological innovation: 1) Does this technology
allow more things to be done with less effort? 2) Are the companies behind
the tech profitable? 3) Does the technology solve an existing problem? 4)
Does using the technology improve quality of life for everyone? Replace the
word ‘tech’ with the word ‘fintech’ when reading the article and ask
yourself these questions in the context of how a low-income society is
supposed to function when cash is gone. Who, exactly, are we enriching when
we advocate for digital cash transfers?

To read the full article, see
https://www.openmindmag.org/articles/blinded-by-the-hype

*Bilici & Cevik: Financial Literacy and Cash Holdings in Turkey; Central
Bank of Turkey, Working Paper No.22/02, April 2022*

This in-house paper examines the effect of financial literacy level on cash
holdings in Turkey. The results imply that promoting financial literacy may
result in less cash usage at points of sale accompanied by growth of
currency in circulation growth.

For the full paper, see
https://www.tcmb.gov.tr/wps/wcm/connect/a44693ab-6a07-4818-81aa-ed168a3044dc/2202wp.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-a44693ab-6a07-4818-81aa-ed168a3044dc-o1QhLXi

*Murakami: Understanding Financial Inclusion in Mongolia from a Micro
Perspective - Is There a Gender Gap? JICA Institute for Research and
Development, Working Paper No.232, March 2022*

This paper investigates the determinants of financial inclusion in Mongolia
and finds that women, and those who are more educated and older are more
likely to be financially included. This, the author suggests, reflects
behavioural or unobserved differences towards financial inclusion between
men and women.

For the full paper, see
https://jicari.repo.nii.ac.jp/?action=pages_view_main&active_action=repository_view_main_item_detail&item_id=1087&item_no=1&page_id=13&block_id=21

If you find any academic literature or serious articles on a similar theme
and would like to share them with the group and/or the cash management
industry, please make me aware and I will do my best to include them.

Regards to All,

*James Shepherd-Barron MIH, PhD (hc)*
*Disaster Management Consultant* (*in case you're wondering, this means I
advise Governments, UN Agencies, International NGOs and the private sector
on the modelling and management of international disaster risk*)

I am also an Adjunct Professor at Fordham University and CEO of The* Aid
Workers Union*, the support service for independent aid professionals (
https://www.aidworkersunion.org)

Mobile: +44 7785 70 34 90
Skype: james.s-b
Twitter: @jshepherdbarron
https://www.aidworkersunion.org <https: www.aidessentials.org="">

- DREAM BIG - Demonstrate vision and insight
- BE BOLD - Have the courage to take risks and make tough decisions
- OWN IT - Take full accountability for your decisions and actions
- WORK AS A TEAM - Don't just coordinate, collaborate
- DO THE RIGHT THING - Conduct yourself with honesty and integrity at
all times
- SHOW RESPECT - Treat others as you would expect to be treated
- LOVE WHAT YOU DO - Bring passion and pride to what you do

The information contained in this e-mail message may be privileged,
confidential, and protected from disclosure. Any unauthorised use,
printing, copying, disclosure, dissemination of or reliance upon this
communication by persons other than the intended recipient may be subject
to legal restriction, sanction or redress. If you think you have received
this e-mail in error, please reply to the sender to that effect and delete
this email promptly.

Please note: This email has been checked for computer viruses, but be
aware that this service is not 100% reliable. Do not open any attachment
unless you have specifically requested it. The sender bears no
responsibility for any such transmission.
</https:>

June 15, 2022, 9:46 a.m.

James Shepherd-Barron

Dear fellow CaLPers and MiCers.

Here are recent highlights from academic and cash management industry
sources that you might find relevant for your cash and markets-based
programming.

With thanks to Prof. Batiz-Lazo of Northumbria University, the NEP Project
(General information on the NEP project can be found at http://nep.repec.org),
Currency News International, The Payments Journal, Cash & Payments News,
ATM Marketplace and Payments Afrika.

For a wider perspective on Cash and Crises, see:
https://cashessentials.org/cash-crises

*The Cashless Effect - Why Credit Cards Make It So Difficult to Budget; Sci
Tech Daily, 27 May 2022*

The cashless effect describes our increased willingness to buy products and
to pay more for them when no physical money changes hands. Bank cards
facilitate our buying behaviour by reducing the so-called “pain of
payment.” They do this by ‘decoupling’ (disassociating) payments from
consumption. It’s much easier to part with money when it isn’t tangible.

The cashless effect can theoretically occur anytime we use digital forms of
payment, which, as we move to cashless societies, has the potential to make
overspending a rampant problem. That said, a 2021 meta-analysis of studies
carried out after 2004 revealed that the cashless effect has become weaker
over the years, perhaps because technological advances have made it
possible for us to check our credit card balances before getting the bill

To read the full article in Sci Tech Daily, an online consumer affairs
magazine, see:
https://scitechdaily.com/the-cashless-effect-why-credit-cards-make-it-so-difficult-to-budget/

*Swartz: Digital payments increase convenience but exacerbate inequality;
MIT Technology Review, 15 April 2022*

For all the friction that cashless payments aim to eliminate, far weightier
social barriers and inequalities result. Cash is the best transactional
tool for increasing community and individual autonomy that we have invented
so far. It offers many affordances that prove hard to replicate. It is low
cost, difficult to censor, and difficult to surveil. It does not depend on
brittle technologies. But it does have major flaws. Cash can be lost,
destroyed or stolen. Most important, perhaps, it can’t be spent online, and
therefore it does not move at the speed of the rest of our digital lives.

To read the full article, see:
https://www.technologyreview.com/2022/04/15/1049604/cash-digital-payments-money/

*Newey et al: COVID-19 More Likely to Spread Through Plastic Credit Cards
than Bank Notes; Brigham Young University, 25 January 2022*

The highly contagious nature of SARS-CoV-2 has led to several studies on
the transmission of the virus. A little studied potential fomite of great
concern in the community is currency, which has been shown to harbor
microbial pathogens in several studies. Since the onset of the COVID-19
pandemic, many businesses in the United States have limited the use of
banknotes in favor of credit cards. However, SARS-CoV-2 has shown greater
stability on plastic in several studies. Herein, the stability of
SARS-CoV-2 at room temperature on banknotes, money cards and coins was
investigated. In vitro studies with live virus suggested SARS-CoV-2 was
highly unstable on banknotes, showing an initial rapid reduction in viable
virus and no viral detection by 24 hours. In contrast, SARS-CoV-2 displayed
increased stability on money cards with live virus detected after 48 hours.
Environmental swabbing of currency and money cards on and near the campus
of Brigham Young University supported these results, with no detection of
SARS-CoV-2 RNA on banknotes, and a low level on money cards. However, no
viable virus was detected on either. These preliminary results suggest that
the use of money cards over banknotes in order to slow the spread of this
virus may be ill-advised. These findings should be investigated further
through larger environmental studies involving more location.

https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0263025

*Kenya Bankers Association: Bankers, Payments Firms and Retailers in Drive
to Reduce Consumer Exposure to Fraudsters; Payments Afrika, 11 May 2022*

Consumer education will play a central role in addressing emerging security
challenges across Africa. In Kenya, players in the financial, payments and
retail sectors highlight the importance of continuing to empower the public
with information on fraud prevention. Emerging financial security threats
are increasingly targeting mobile and internet banking channels due to the
enhanced use of digital payments, with fraudsters exploiting low levels of
awareness on financial security to cause security breaches on contactless
payments platforms. Over the past few years, cases of social engineering
and identity theft have persisted. Similarly, cases of phishing emails,
malware attacks and baiting have scaled up in tandem with the enhanced
uptake of internet and mobile transaction platforms. A holistic approach to
cyber security by developing partnerships is needed to address the
challenge.

For the full article, see:
https://paymentsafrika.com/africa/bankers-payments-firms-and-retailers-in-drive-to-reduce-consumer-exposure-to-fraudsters/

*Winchcombe: Role of Cash in a Digital World; December 2021*

The journalist David Sax has written a book ‘Revenge of the Analog: Real
Things and Why They Matter’. He makes an interesting case for analogue
products such as banknotes. His argument is that the continued use of
analogue products is not a rejection of the digital world. It is because
they bring extra ‘human’ dimensions which the digital fails to deliver.
Analog complements the digital, enriching lives and adding value. In the
commercial world analogue products exist when they add value and deliver
something the digital world misses. Central banks need to consider
carefully the balance of physical and digital.

https://currency-news.com/news/2021/dec/01/role-cash-digital-world/

*Van Roosebeke et al: E-Money and Deposit Insurance in Kenya; International
Association of Deposit Insurers, Vol.6, December 2021*

E-money is widespread in Kenya, especially through MPESA, a form of e-money
stored on mobile phones and issued by Safaricom, a mobile network operator
(MNO). Integration between the MPESA platform and the traditional banking
system is increasing. Given the very high use-grade of MPESA throughout the
population, it has reached critical importance in Kenya. In Kenya, e-money
issuers must back their e-value with bank balances at commercial banks
(float), through trust accounts. Deposit insurance does not cover a default
of the e-money issuer. However, the Kenya Deposit Insurance Corporation
aims at offering pass-through coverage in case of a default of the
deposit-taking commercial bank holding the trust accounts. Pass-through
coverage is confronted with a number of challenges, including regarding
data on the identity of e-money users and their balances held. Also, the
critical importance of MPESA raises questions as to how to deal with a
potential default of the MNO and the role of deposit insurance in such a
scenario. Looking forward, there is merit in further coordination amongst
safety net participants as well as in the management of trust accounts and
the strengthening of data-availability requirements to e-money issuers.

For the full paper, see:
https://www.iadi.org/en/assets/File/Papers/Fintech%20Briefs/IADI%20Fintech%20Brief%206%20E-money%20and%20Deposit%20Insurance%20in%20Kenya.pdf

*Patrick-Hervé Mbouombouo Mfossa. Mobile money-driven financial inclusion,
exposure to shocks and households’ financial resilience strategies adoption
process: Evidence from Cameroon, 2022*

This paper discusses how mobile money account ownership and usage affect
the choices and effectiveness of households’ multivariate and
interdependent financial resilience strategies.

The paper is work-in-progress and has not been peer-reviewed. You can find
it at: https://hal.archives-ouvertes.fr/hal-03614064/document

*Junius et al: Costs of retail payments – an overview of recent national
studies in Europe; Occasional Paper Series No.294, European Central Bank,
May 2022*

The paper provides an overview of studies on the social and private costs
of retail payments conducted since 2013 in nine EU countries and collates
the results obtained. Social costs of retail payments are the overall costs
resulting from providing payment services to society and deriving from the
resource costs incurred by all parties along the payment chain. Private
costs, in contrast, are the costs incurred by the individual stakeholder
only, such as banks and other payment intermediaries. Understanding the
social and private costs of retail payments is crucial for assessing the
impact of the rapidly changing retail payment landscape, such as the shift
to electronic payments, and for designing strategies for moving towards
cost efficient retail payments.

For more, see:
https://www.ecb.europa.eu//pub/pdf/scpops/ecb.op294~8ac480631a.en.pdf
<https: ecb.op294~8ac480631a.en.pdf="" pdf="" pub="" scpops="" www.ecb.europa.eu="">

*Ofori et al: Remittances and Income Inequality in Africa: Financial
Development Thresholds for Economic Policy; Leibniz Information Centre for
Economics, online May 2022*

Remittances contribute to the widening of the income disparity gap in
Africa. This paper outlines policy recommendations to narrow the gap.

This paper has not been peer-reviewed. To access it, go to:
https://www.econstor.eu/bitstream/10419/253654/1/Ofori-et-al-2022-Remittances-FD-Inequality.pdf

Please let me know if you have any comments on these or previous posts.

All the Best.

*James Shepherd-Barron MIH, PhD (hc)*
*Disaster Management Consultant* (*in case you're wondering, this means I
advise Governments, UN Agencies, International NGOs and the private sector
on the modelling and management of international disaster risk*)

I am also an Adjunct Professor at Fordham University and CEO of The* Aid
Workers Union*, the support service for independent aid professionals (
https://www.aidworkersunion.org)

Mobile: +44 7785 70 34 90
Skype: james.s-b
Twitter: @jshepherdbarron
https://www.aidworkersunion.org <https: www.aidessentials.org="">

- DREAM BIG - Demonstrate vision and insight
- BE BOLD - Have the courage to take risks and make tough decisions
- OWN IT - Take full accountability for your decisions and actions
- WORK AS A TEAM - Don't just coordinate, collaborate
- DO THE RIGHT THING - Conduct yourself with honesty and integrity at
all times
- SHOW RESPECT - Treat others as you would expect to be treated
- LOVE WHAT YOU DO - Bring passion and pride to what you do

The information contained in this e-mail message may be privileged,
confidential, and protected from disclosure. Any unauthorised use,
printing, copying, disclosure, dissemination of or reliance upon this
communication by persons other than the intended recipient may be subject
to legal restriction, sanction or redress. If you think you have received
this e-mail in error, please reply to the sender to that effect and delete
this email promptly.

Please note: This email has been checked for computer viruses, but be
aware that this service is not 100% reliable. Do not open any attachment
unless you have specifically requested it. The sender bears no
responsibility for any such transmission.
</https:></https:>

April 29, 2022, 12:58 p.m.

James Shepherd-Barron

Dear fellow CaLPers and MiCers.

Here are recent highlights from academic and cash management industry
sources that you might find relevant for your cash and markets-based
programming.

With thanks to Prof. Batiz-Lazo of Northumbria University, the NEP Project
(General information on the NEP project can be found at http://nep.repec.org),
Currency News International, The Payments Journal, Cash & Payments News,
ATM Marketplace and Payments Afrika.

For a wider perspective on Cash and Crises, see:
https://cashessentials.org/cash-crises/

*Council of the European Union Recommendation 2022/C 166/01: On the
conversion of Hryvnia banknotes into the currency of host Member States for
the benefit of displaced persons from Ukraine; 19 April 2022*

In this ground-breaking recommendation, the EU recognises that displaced
persons from Ukraine have urgent liquidity needs in neighbouring countries
and that many of them face extreme difficulty in converting their Hryvnia
banknotes into the currency of their host country, where banks fear
over-exposure to exchange rate risk. This European Council recommendation
calls on Member States to allow registered displaced persons to convert up
to a limit of 10,000 Hryvnias per person at the official exchange rate as
published by the National Bank of Ukraine without charge for three months.

For the full recommendation, see: https://eur-lex.europa.eu [document
32022H0420(01)]

* Di Maggio et al: Invisible Primes - Fintech Lending with Alternative
Data; U.S National Bureau of Economic Research, Working Paper 29840; March
2022*

We investigate whether using alternative data to assess borrowers'
creditworthiness results in broader credit access. Comparing actual
outcomes of a fintech platform’s model to counterfactual outcomes based on
a ‘traditional model’, we find that the latter would result in a 70% higher
probability of being rejected and higher interest rates for those approved.
The borrowers most positively affected are the ‘invisible primes’—borrowers
with low credit scores and short credit histories, but also a low
propensity to default. We show that funding loans to these borrowers leads
to better economic outcomes for the borrowers and higher returns for the
fintech platform.

For the full paper, see:
https://www.nber.org/system/files/working_papers/w29840/w29840.pdf

*Gomes & Mantovani: Regulating Platform Fees under Price Parity; Toulouse
School of Economics, Working Paper No.1325, March 2022*

Online intermediaries greatly expand consumer information, but also raise
sellers’ marginal costs by charging high commissions. To prevent
disintermediation, some platforms adopted price parity and anti-steering
provisions, which restrict sellers’ ability to use alternative sales
channels. Whether to uphold, reform, or ban these provisions has been at
the centre of the policy debate, but, so far, little consensus has emerged.
As an alternative, this paper studies how to cap platforms’ commissions.
The utilitarian cap reflects the Pigouvian precept according to which the
platform should charge net fees no greater than the informational
externality it exerts on other market participants.

For the full paper, see:

https://www.tse-fr.eu/sites/default/files/TSE/documents/doc/wp/2022/wp_tse_1325.pdf

*Payments Afrika: The Central Bank of Kenya Welcomes the Launch of Mobile
Money Merchant Interoperability; online 18 April 2022*

The Central Bank of Kenya (CBK) welcomes the launch, of mobile money
merchant interoperability by three mobile money providers (networks);
Airtel Networks Kenya Limited, Safaricom PLC, and Telkom Kenya Limited.
This is an important step in the evolution of Kenya’s payment services, as
it allows customers of these mobile money providers to make payments to any
merchant regardless of the network they subscribe to. The lack of full
interoperability has increased the complexity, time and costs associated
with making payments. As outlined in the National Payments Strategy
2022-2025 the overall aim is to provide customers with a seamless, secure
and affordable means to send and receive money in any network.

For the full paper, see:

https://paymentsafrika.com/africa/launch-of-mobile-money-merchant-interoperability/

*Card Scheme Costs; Cash & Payments News, 30 March 2022*

Mastercard has just said that over half of the world’s in person payments
are now made using contactless technology. In the UK, the Payment Systems
Regulator (PSR) carried out a market review of card acquiring and found
that the fees charged for card payments had increased significantly. It
also identified a lack of transparency in fees charged to retailers.
Cross-border interchange fees had also increased significantly. The PSR’s
concern is that fees are passed on to consumers and that there are
insufficient competitive constraints on card schemes.

For the full article, see:

https://cashpaymentnews.com/news/2022/mar/30/payment-news/

Regards

*James Shepherd-Barron MIH, PhD (hc)*
*Disaster Management Consultant* (*in case you're wondering, this means I
advise Governments, UN Agencies, International NGOs and the private sector
on the modelling and management of international disaster risk*)

I am also an Adjunct Professor at Fordham University and CEO of The* Aid
Workers Union*, the support service for independent aid professionals (
https://www.aidworkersunion.org)

Mobile: +44 7785 70 34 90
Skype: james.s-b
Twitter: @jshepherdbarron
https://www.aidworkersunion.org <https: www.aidessentials.org="">

- DREAM BIG - Demonstrate vision and insight
- BE BOLD - Have the courage to take risks and make tough decisions
- OWN IT - Take full accountability for your decisions and actions
- WORK AS A TEAM - Don't just coordinate, collaborate
- DO THE RIGHT THING - Conduct yourself with honesty and integrity at
all times
- SHOW RESPECT - Treat others as you would expect to be treated
- LOVE WHAT YOU DO - Bring passion and pride to what you do

The information contained in this e-mail message may be privileged,
confidential, and protected from disclosure. Any unauthorised use,
printing, copying, disclosure, dissemination of or reliance upon this
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to legal restriction, sanction or redress. If you think you have received
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</https:>

March 15, 2022, 7:15 a.m.

James Shepherd-Barron

Dear fellow CaLPers and MiCers.

Here are recent highlights from academic and cash industry sources that you
might find relevant for your cash and markets-based programming.

With thanks to Prof. Batiz-Lazo of Northumbria University, the NEP Project (
http://nep.repec.org), Currency News International, The Payments Journal,
Cash & Payments News, ATM Marketplace and Payments Afrika.

*Abay et al: Digital tools and agricultural market transformation in
Africa: Why are they not at scale yet, and what will it take to get there?;
International Food Policy Research Institute Discussion Paper 02092,
December 2021*
Despite enthusiasm on the potential of digital innovations to transform
agricultural markets in Africa, progress made thus far has been limited to
small-scale experiments that often fail to scale. This paper reviews the
theoretical and empirical evidence on the transformative potential of
digital innovations for African agricultural markets.
For more, see:
https://ebrary.ifpri.org/utils/getfile/collection/p15738coll2/id/134957/filename/135168.pdf

*Yue et al: The rise of digital finance: Financial inclusion or debt trap?
Finance Research Letters; https://doi.org/10.1016/j.frl.2021.102604
<https: 10.1016="" doi.org="" j.frl.2021.102604="">; 30 December 2021* Digital
finance has a huge potential to serve people excluded from the traditional
financial system by reducing the information asymmetry between lenders and
borrowers, decreasing transaction costs and achieving economies of scale.
However, as digital finance evolves, populations with lower financial
literacy gain access to complex financial products and services, some of
which carry risks that may not yet be known. Recently, the substantial
increase in household debt has become a threat to the world economy and it
has been asserted that this may be caused, at least in part, by digital
finance platforms such as mobile money apps which damage financial
well-being by triggering impulsive consumer behaviour. While digital
finance has brought financial inclusion, it has also increased the risk of
households falling into a debt trap. This paper provides evidence that
supports this notion and explains the channel through which digital finance
increases the likelihood of financial distress.
For more, see: https://arxiv.org/ftp/arxiv/papers/2201/2201.09221.pdf

For a wider perspective on Cash and Crises, see:
https://cashessentials.org/cash-crises/

*James Shepherd-Barron MIH, PhD (hc)*
*Disaster Management Consultant* (*in case you're wondering, this means I
advise Governments, UN Agencies, International NGOs and the private sector
on the modelling and management of international disaster risk*)

I am also an Adjunct Professor at Fordham University and CEO of The* Aid
Workers Union*, the support service for independent aid professionals (
https://www.aidworkersunion.org)

Mobile: +44 7785 70 34 90
Skype: james.s-b
Twitter: @jshepherdbarron
https://www.aidworkersunion.org <https: www.aidessentials.org="">

- DREAM BIG - Demonstrate vision and insight
- BE BOLD - Have the courage to take risks and make tough decisions
- OWN IT - Take full accountability for your decisions and actions
- WORK AS A TEAM - Don't just coordinate, collaborate
- DO THE RIGHT THING - Conduct yourself with honesty and integrity at
all times
- SHOW RESPECT - Treat others as you would expect to be treated
- LOVE WHAT YOU DO - Bring passion and pride to what you do

The information contained in this e-mail message may be privileged,
confidential, and protected from disclosure. Any unauthorised use,
printing, copying, disclosure, dissemination of or reliance upon this
communication by persons other than the intended recipient may be subject
to legal restriction, sanction or redress. If you think you have received
this e-mail in error, please reply to the sender to that effect and delete
this email promptly.

Please note: This email has been checked for computer viruses, but be
aware that this service is not 100% reliable. Do not open any attachment
unless you have specifically requested it. The sender bears no
responsibility for any such transmission.</https:></https:>

Feb. 24, 2022, 10:07 a.m.

James Shepherd-Barron

Dear fellow CaLPers and MiCers.

Here are CashEssentials’ recent highlights from academic and cash industry
sources that you might find relevant for your cash and markets-based
programming.

With thanks to Prof. Batiz-Lazo of Northumbria University, the NEP Project
(General information on the NEP project can be found at http://nep.repec.org),
Currency News International, The Payments Journal, Cash & Payments News,
ATM Marketplace and Payments Afrika.

For a wider perspective on Cash and Crises, see:
https://cashessentials.org/cash-crises/

*Grotta: BofA and Regulatory Agencies Feud over Prepaid Cards for Benefits;
Payments Journal, 23 February 2022*

During the height of the pandemic, social protection payments made via
prepaid cards in the U.S ballooned. Nearly every state reported rampant
fraud as crime rings took advantage of weak systems to create fake claims
and to steal funds from those who legitimately should have received
benefits. Bank of America, which has run the prepaid card program for the
State of California for over a decade, is being scrutinized by The Office
of the Comptroller of the Currency and the Consumer Financial Protection
Bureau for they way they handled payments for false claims and inquiries of
fraudulent transactions. They are also being criticized for not using
prepaid cards with more secure EMV chip technology.

For more, see
https://www.paymentsjournal.com/bofa-and-regulatory-agencies-feud-over-prepaid-cards-for-benefits/

*RipplesNigeria: Currency in circulation in Nigeria hits all time high; 20
February 2022*

The total currency in circulation (the total amount of physical cash
represented in paper or coins) in Nigeria closed the year 2021 at an
all-time high of N3.33 trillion. This represents a 19.06 percent rise from
2.44 trillion in 2019. In its report on currency operations, the Central
Bank of Nigeria (CBN) said, “The growth in CIC reflected the continued
dominance of cash in the economy.” This despite a stated government policy
of supporting moves towards a fully digital – and therefore cashless -
society.

For more, see
https://www.ripplesnigeria.com/currency-in-circulation-hits-all-time-high-as-cbn-pushes-n418bn-into-economy/

*Payments Afrika: Mobile Money Interoperability in Africa – White Paper;
January 2022*

Mobile money has changed the face of Africa, creating new pathways to an
improved standard of living across the continent. With so many platforms in
single markets, however, it’s the path to interoperability that creates
challenges for all participants in the mobile money ecosystem. There are
four basic options to enable mobile money interoperability; inter-company,
central bank/bank coalition, standards based, and merchant based.

For more, see:
https://paymentsafrika.com/mobile-money-interoperability-in-africa-whitepaper/

*Roessler et al: The Economic Impact of Mobile Phone Ownership in Tanzania;
Working Paper 2021-05, Centre for the Study of African Economies,
University of Oxford, 2021 *

Leveraging one of the first large-scale case-control studies on women’s
mobile phone ownership, this research finds that smartphones controlled and
used by women increased households’ annual consumption per capita by 20% in
Tanzania. However, treatment effects were attenuated by handset turnover;
by the end of the study period only 34% in the smartphone condition still
possessed their handsets. This highlights the economic benefits of closing
the mobile gender gap but also the tenuous nature of productive asset
ownership for women in low-income households.

For more, see: https://econpapers.repec.org/paper/csawpaper/2021-05.htm

*James Shepherd-Barron MIH, PhD (hc)*
*Disaster Management Consultant* (*in case you're wondering, this means I
advise Governments, UN Agencies, International NGOs and the private sector
on the modelling and management of international disaster risk*)

I am also an Adjunct Professor at Fordham University and CEO of The* Aid
Workers Union*, the support service for independent aid professionals (
https://www.aidworkersunion.org)

Mobile: +44 7785 70 34 90
Skype: james.s-b
Twitter: @jshepherdbarron
https://www.aidworkersunion.or <https: www.aidessentials.org="">g

The information contained in this e-mail message may be privileged,
confidential, and protected from disclosure. Any unauthorised use,
printing, copying, disclosure, dissemination of or reliance upon this
communication by persons other than the intended recipient may be subject
to legal restriction, sanction or redress. If you think you have received
this e-mail in error, please reply to the sender to that effect and delete
this email promptly.

Please note: This email has been checked for computer viruses, but be
aware that this service is not 100% reliable. Do not open any attachment
unless you have specifically requested it. The sender bears no
responsibility for any such transmission.</https:>