Chicago, IL – Today the CSBS Emerging Payments Task Force held an inaugural public hearing to gather information from industry participants and stakeholders on legacy payment systems, innovations in the retail payments arena, and virtual currencies.
The hearing was chaired by David J. Cotney, Commissioner of the Massachusetts Division of Banks and Chairman of the CSBS Emerging Payments Task Force.
During the hearing, state regulators from nine states heard from 11 speakers on three panels. The first panel focused on Legacy Payment Systems and featured comments by Chris Daniel, Partner with Paul Hastings LLP; Jane Larimer, Executive Vice President of NACHA; and Bob Steen, Chief Executive Officer with Bridge Community Bank. The panelists spoke about the work being done to enhance the legacy payment systems to make them faster and more efficient, while still preserving consumer confidence and system stability. The panelists also indicated a tension and a careful balance between meeting speed and efficiency demands of the industry and the public, while still maintaining vital security measures that protect the system and consumers.
The second panel focused Retail Payments Innovations and featured comments by Jason Oxman, Chief Executive Offers of the Electronic Transactions Association; Lewis Goodwin, Chief Executive Officer of Green Dot Bank; John Muller, Vice President of Global Payments Policy at PayPal; and Spencer White, General Manager at MNO Partnerships (AT&T), ISIS Mobile Commerce. The panelists were asked about the inhibitors that exist which prevent them each from reaching and serving customers. Generally, the panelists acknowledged that merchant acceptance and consumer awareness are primary barriers moreso than regulation.. The panelists did urge the Task Force to consider a risk-management supervisory approach, as opposed to a check-list model, to be more flexible and responsive to industry changes.
The third and final panel was on Virtual Currencies. Panelists were Bryan Krohn, Chief Financial Officer of BitPay; Karsten Behrend, Chief Compliance Officer of Xapo; Megan Burton; Chief Executive Officer of CoinX; and Annemarie Tierney, Executive Vice President and General Counsel of Second Market. The panelists urged state and federal regulators to provide clear and consistent regulatory expectations and guidance without restricting innovation. The panel commended the Task Force for issuing model consumer guidance to provide more information to consumers considering transacting in virtual currencies.
More information on the Task Force and the hearing is available here. CSBS expects a recording of the hearing to be made available in the coming days.