The Central Bank launches an electronic certificate with a fixed expiry: they can be used as a means of payment

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In the midst of a search for supporting ways to save pesos and discourage the dollarization of Argentines, The Central Bank launched a new savings tool this Thursday. It is a term electronic certificate that is digitally rendered, which, in addition to being fully traceable, will allow, among other things, transfer or approve such placements.

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Currently, 88% of peso placements in banks are done digitally, through apps or entities’ home banking channels.

As explained by the Central in a statement, through the Electronic Certificate for Term Deposits and Investments (CEDIP), these deposits “can be transferred electronically in an easy and simple way, be divided into smaller and offset placements, which will allow their use as a means of payment and financing.

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The monetary authority has clarified that this certificate will serve for both placements in pesos, dollars or grapes. “Any placement achieved will have its corresponding CEDIP, which must be generated by the financial institution upon capturing funds from the deposit or term investment,” the statement explains.

As with other market implementations, the BCRA gives banks time to develop this new tool and adapt their systems. The rule presented this Thursday establishes that July 1 of this year.

Among the new features, the organization explained that, for example, it will be possible transfer ownership of a fixed term, so that it can be used as much as payment method, to cancel obligations between people or companies, such as stock exchange trading, as is the case today with electronic invoices or checks.

In addition to being able to be transferred, the places can be divided so that only a part can be sent to a fixed-term contract or to another holder. For example, a person might pay an architect to do a renovation in his or her home with a portion of his fixed time. This may be possible because the instrument provides that upon expiry the funds are collected over the counter at the depository institution or, by crediting the account at a different financial institution.

“The CEDIP and the provisions that contribute to the resolution of the Central Bank will be in force from 1 July 2023 (with the exception of the functions of splitting, transmission for trading on the stock exchange and the collection desk, which must be operational from 1 November 2023)” , clarifies the official communication.

Source: Clarin

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