The Central Bank of Venezuela (BCV, for its acronym in Spanish) and the Banking Sector Institutions Superintendency (Sudeban, for its acronym in Spanish) have requested public and private banks to create a special guarantee fund to back mobile payment operations. The move is designed to prevent banking institutions from experiencing liquidity problems. The BCV and Sudeban are expected to give further details of the initiative in the coming weeks.

According to the Sudeban, mobile payment transactions were worth USD 25 million in October. The hyperinflation affecting Venezuela since 2017 makes these payment methods more appealing, as they are more practical than cash. Therefore, the BCV and Sudeban consider it appropriate to create a guarantee fund to safeguard the banking institutions’ obligations to their clients or other institutions.

Mobile payment transactions are instantly effective between different banks. Transfers can be made over the Internet or by text message between users of the Interbanking Mobile Payment System.