September 29, 20188min611

Mongolia Issues First Digital Currency License under New Payment System Law

Mongolia has taken a significant step forward toward bolstering its fintech sector, with the East Asian country’s central bank authorizing a local telecom operator to issue a digital currency under the country’s recently-passed national payment system bill.

As first reported by state-owned news agency Montsame, the Bank of Mongolia on Friday issued its first-ever digital currency license to Mobifinance — the fintech arm of Mobicom, the largest mobile phone provider in Mongolia.

View image on TwitterView image on TwitterView image on Twitter

MobiCom

@MobicomOfficial

Зөвхөн Мобикомын хэрэглэгчид ашиглах боломжтой байсан Candy өдгөө Монгол орон даяар аль ч операторын хэрэглэгч ашиглах боломжтой болж Үндэсний төлбөрийн системд цоо шинэ төлбөрийн хэрэгсэл болон “мэндэлж” байна. https://www.mobicom.mn/mn/news/1751  @CandyMGL @Mongolbank_mn

Now licensed as a state-approved financial instrument, Mobicom’s virtual currency — dubbed “Candy” — is considered a “non-cash payment instrument” whose value is pegged to Mongolia’s fiat currency, the tugrik.

Previously, Mobicom had only been authorized to issue the token to its mobile customers through a wallet app called Candy Pay. Using the app, customers could send funds to or from their bank, pay bills, shop online at select retailers from within the app, and transfer funds to other users.

However, beginning on Oct. 1, businesses throughout Mongolia will be allowed to use Candy as an official payment system, and though it remains to be seen to what extent this specific currency will catch on, Mobicom CEO Tatsuya Hamada said that he expects digital currencies to reshape the financial services landscape.

“As digital currencies have begun to circulate, ATMs and cards will become a thing of the past as well,” Hamada said.

Bank of Mongolia executives issued the license to Mobicom at a ceremonial event held at the central bank’s headquarters earlier today, indicative of the fact that regulators believe the newly-passed legislation will encourage innovation in the country by allowing companies outside of traditional banking institutions to participate in the financial services business.

According to Montsame’s report, central bank officials said that at least one other company has submitted an application for a digital currency license under the new legislation.


About us

We are the new economy news hub. 2100NEWS is the professional index, data, and tools provider in the digital asset space, offering Crypto Market Intelligence, providing the perspective you can trust and equipping you with information edge you need to stay ahead. (Real-time data of token issuers and news, analysis and commentary from community.) We are very excited to contribute to the evolution of the industry and build an ecosystem around our offering (the institutional-grade data infrastructure required to enable institutional investments in digital assets). We want our contributions (Contents and Tools on 2100NEWS.com) to be useful for helping investors.


CONTACT US

CALL US ANYTIME



Latest posts



Newsletter


    • ethereumEthereum (ETH) $ 3,578.23 0.4%
    • litecoinLitecoin (LTC) $ 95.59 0.46%