Deposit Insurance and Digital Financial Inclusion

J.C. Izaguirre, T. Lyman, C. McGuire et al. | CGAP

The rapid scaling of digital stored-value products coincides with a sustained interest (initially triggered by the 2008 global financial crisis) in establishing or strengthening deposit insurance systems, and with emerging frameworks that extend deposit insurance coverage to financial products with characteristics similar to deposits in multiple countries. This Brief summarizes issues relevant to deposit insurance arising from emerging digital stored-value products and offers three distinct approaches for countries to consider—depending on their market structure, the nature of the products in question and their providers, and the approach being taken to deposit insurance generally—so as to address legal uncertainties and improve the protection of digital customer funds.

Categories:
Access to Finance, Mobile Banking, Microinsurance
Pages:
4
Year of publication:
06.10.2016
File size:
65513 bytes