In a significant development for both loyalty programs and digital assets, Rakuten Wallet, the cryptocurrency exchange arm of the Japanese e-commerce giant Rakuten, has launched a new service. This innovative feature enables users in Japan to convert their Rakuten Super Points—earned through purchases on Rakuten Ichiba (the company's online marketplace) and via Rakuten Cards—into popular cryptocurrencies directly through the Rakuten Wallet mobile app.
Key Developments in Fintech
Rakuten Super Points Meet Cryptocurrency
This new service marks a pivotal integration between traditional loyalty rewards and the emerging digital currency ecosystem. Users can now convert their accumulated Rakuten Super Points into Bitcoin (BTC), Ethereum (ETH), or Bitcoin Cash (BCH). The exchange rate is set at 1 point being equivalent to 1 Japanese Yen, with a minimum conversion threshold of 100 points.
There are, however, limits in place. Standard Rakuten members can convert up to 30,000 points per transaction, with a monthly cap of 100,000 points. It is important to note that this is a one-way conversion; cryptocurrencies cannot be converted back into Super Points. This initiative is designed to provide an easy entry point for new users into the world of cryptocurrency and to expand the utility of Rakuten Super Points within its vast ecosystem, making its loyalty program more attractive and versatile.
Cross-Industry Credit Data Sharing in Taiwan
In other regulatory news, Taiwan’s Financial Supervisory Commission (FSC) is advancing a system for cross-industry credit data exchange. Spearheaded by FSC Chairman Wellington Koo, this initiative will allow banks and securities firms to share and access negative credit information from each other's sectors. This system, modeled after Japan's CRIN (Credit Information Network), aims to prevent individuals from accumulating excessive debt across different financial products.
The Joint Credit Information Center (JCIC) has already built the necessary system, which is slated to go live in the first quarter of 2020. Once operational, securities firms will be able to query a client's negative credit history from banks (such as bad loan or credit card records), and banks will be able to access negative information from securities investments and settlements. Furthermore, the JCIC is developing a platform to interface with government data, allowing member institutions—with client authorization—to access information from the Ministry of Finance, the Ministry of Labor, and the Directorate-General of Highways, streamlining the loan application process.
China Life Insurance Pioneers Facial Recognition for On-the-Spot Policies
In a industry-first move, China Life Insurance (中壽) has received approval from Taiwan’s FSC to pilot a "facial recognition for identity verification" program within its mobile insurance application (i-Easy). This initiative integrates facial recognition technology into the existing mobile underwriting process. After an initial facial registration, policyholders can be quickly identified for future transactions, significantly simplifying the administrative process.
The company stated that this technology addresses long-standing challenges in verifying customer identity during new policy signings, which traditionally involved complex procedures and left limited verifiable records. Developed in collaboration with the FinTech Research Center of National Chengchi University, this system enhances identity accuracy, reduces moral hazard, and minimizes potential future disputes. China Life envisions expanding this biometric technology to other areas, including customer service, member logins, and online insurance applications.
Deloitte Highlights Security Imperatives for Open Banking
As Taiwan’s open banking framework prepares to enter its next phase in 2020, the consulting firm Deloitte (勤業眾信) has released a report outlining critical security considerations. While open banking fosters innovation and new cross-industry partnerships, it also introduces significant cybersecurity and data privacy risks.
Deloitte recommends that financial institutions and Third-Party Service Providers (TSPs) focus on four strategic areas: risk governance, security implementation, risk early warning, and threat response. Specifically, they should examine eight key security aspects:
- Information access control and authentication.
- Data retention and protection mechanisms.
- Network stability and backup systems.
- API data transmission security.
- Backup and recovery capabilities for sensitive data.
- Defenses against DDoS attacks.
- Proactive monitoring of the latest security trends.
- Strong governance and management awareness of cybersecurity and privacy.
Taipei National Tax Agency Launches One-Stop Financial Inheritance Service
To simplify the process of locating a deceased relative's financial assets, Taiwan’s FSC, through the Financial Services Federation, has collaborated with six major financial institutions and the Taipei National Tax Agency. From December 2019 to June 2020, they are piloting a one-stop service for inheritance inquiries.
When applying for a property inventory list of a deceased relative registered in Taipei City, citizens can simultaneously request a search for their financial遗产, including bank deposits, listed stocks, life insurance policies, fund investments, and credit reports. Applicants need only fill out a single form, and the Tax Agency will forward it to the selected institutions. The results are sent directly to the applicant within ten working days, drastically reducing the need to visit each institution individually.
China Expands Pilot of Cross-Border Finance Blockchain Platform
China is aggressively expanding the testing of its official Cross-Border Finance Blockchain Platform. Launched in March 2019 by the State Administration of Foreign Exchange (SAFE), the platform is the only blockchain system approved by the Cyberspace Administration of China. It leverages blockchain's immutability to address challenges in cross-border financing, such as high risk, costly due diligence, and slow processing times.
Reports indicate that while traditional financing reviews could take days per环节, the blockchain platform can complete them in approximately 30 seconds. The pilot has now expanded to 19 provinces, with over 170 banks voluntarily participating—representing more than a third of all banks handling foreign exchange business in China.
Taichung Veterans General Hospital Debuts Medical Logistics Blockchain
Taichung Veterans General Hospital has partnered with technology firms to launch Taiwan’s first pharmaceutical and medical device logistics platform built on blockchain technology. The pilot project focuses on the procurement process for medical器材 within the hospital's operating rooms.
The platform aims to establish a robust tracking and tracing mechanism. If a product recall is necessary, suppliers and manufacturers can use the smart contract-recorded history of production, transactions, and transportation to trace the origin and path of an item. Hospitals can also verify the authenticity and safety of medical devices, preventing counterfeits from entering the supply chain. Furthermore, the platform monitors and records environmental conditions like temperature and humidity during storage and transport, ensuring the quality of sensitive cold-chain products throughout the entire logistics process.
Setback for Facebook's Libra Project
The future of Facebook's ambitious Libra cryptocurrency project appears increasingly uncertain. The President of Switzerland, Ueli Maurer, stated in an interview that he does not believe the project can succeed in its current form. He argued that central banks would not accept its proposed design, which is pegged to a basket of fiat currencies. Maurer concluded that without significant modifications, the project should be considered a failure.
In response, David Marcus, the head of Facebook's blockchain efforts and its Calibra wallet subsidiary, reaffirmed the project's commitment to complying with all U.S. and Swiss regulations. He acknowledged that Libra would not launch until all regulatory concerns are addressed, effectively missing its initially targeted launch date of June 2020.
Frequently Asked Questions
What cryptocurrencies can I get with Rakuten Super Points?
You can convert your points into three major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), and Bitcoin Cash (BCH). The conversion provides a straightforward way to begin investing in digital assets.
How does cross-industry credit data sharing benefit consumers?
This system helps prevent over-indebtedness by giving lenders a more complete view of a borrower's financial obligations across banking and securities accounts. This can lead to more responsible lending practices and, for many consumers, a faster and more efficient loan approval process. 👉 Explore more strategies for managing your financial health
Is facial recognition for insurance sign-ups secure?
Companies like China Life Insurance implement robust security and encryption protocols to protect biometric data. The technology offers a more secure and reliable method of identity verification than traditional methods, reducing the potential for fraud and future disputes.
What is the main goal of Open Banking?
The primary goal is to foster innovation and competition in the financial sector by allowing consumers to securely share their financial data with authorized third-party providers. This enables the development of new, personalized financial products and services.
Why is blockchain useful for supply chains?
Blockchain creates an immutable and transparent record of every step in a supply chain. This allows for unparalleled traceability, verification of authenticity, and quality control, which is especially critical for sectors like pharmaceuticals and medical devices.
What are the biggest challenges for projects like Libra?
The main hurdles are regulatory approval and acceptance by global central banks and governments. Concerns over monetary sovereignty, financial stability, and consumer protection must be thoroughly addressed before any global cryptocurrency can be successfully launched.