Trump bars US transactions with eight Chinese apps including Ant’s Alipay

January 7, 2021 | 12:03 am

WASHINGTON — US President Donald Trump on Tuesday signed an executive order banning transactions with eight Chinese software applications, including Ant Group’s Alipay mobile payment app, the White House said, escalating tensions with Beijing two weeks before President-elect Joe Biden takes office.

The move, first reported by Reuters, is aimed at curbing the threat to Americans posed by Chinese software applications, which have large user bases and access to sensitive data, a senior administration official told Reuters.

The order argues that the United States must take “aggressive action” against developers of Chinese software applications to protect national security.

It tasks the Commerce Department with defining which transactions will be banned under the directive within 45 days and targets Tencent Holdings Ltd.’s QQ Wallet and WeChat Pay as well.

The order also names CamScanner, SHAREit, Tencent QQ, VMate which is published by Alibaba Group subsidiary UCWeb, and Beijing Kingsoft Office Software’s WPS Office.

Kingsoft said in a statement published by Chinese state media that it did not expect Trump’s order to substantially impact the company’s business in the short term. Ant and the Biden transition team declined to comment.

Alibaba, Tencent, CamScanner, SHAREit, and the Chinese Embassy in Washington did not immediately respond to requests for comment.

“By accessing personal electronic devices such as smartphones, tablets, and computers, Chinese connected software applications can access and capture vast swaths of information from users, including sensitive personally identifiable information and private information,” the executive order states.

Such data collection “would permit China to track the locations of federal employees and contractors, and build dossiers of personal information,” the document adds.

The order aims to cement Trump’s tough-on-China legacy before the Jan. 20 inauguration of Biden, a Democrat, who has said little about how he plans to address specific tech threats from China.

Biden could, however, revoke the order on the first day of his presidency, though his transition team did not immediately respond to a request for comment on the matter.

The order will likely ratchet up tensions further between Washington and Beijing, which have been locked in a bitter dispute over the origins of the coronavirus and a Chinese crackdown on Hong Kong.

Despite the 45-day time line laid out by the order, the Commerce Department plans to act before Jan. 20 to identify prohibited transactions, another US official told Reuters.

The directive mirrors Trump executive orders signed in August directing Commerce to block some US transactions with WeChat and the Chinese-owned video app TikTok.

Had those orders gone into effect, they would have effectively banned the Chinese apps’ use in the United States (US) and barred Apple, Inc. and Alphabet, Inc.’s app stores from offering them for download for new users.

The restrictions, however, were blocked by courts mainly on freedom of speech grounds. The White House is confident the new restrictions will stand up to judicial scrutiny, since applications like Alipay would struggle to bring a First Amendment case, the senior administration official told Reuters.

US Secretary of Commerce Wilbur Ross said in a statement that he supports Trump’s “commitment to protecting the privacy and security of Americans from threats posed by the Chinese Communist Party.”

Alipay has been in Washington’s cross hairs for months.

Reuters reported in November that the US State Department had submitted a proposal to add Ant Group to a trade blacklist in order to deter US investors from taking part in its lucrative initial public offering. But the Commerce Department, which oversees the blacklist, shelved the proposal after Alibaba Group Holding Inc. President Michael Evans urged Mr. Ross to reject the bid.

Ant is China’s dominant mobile payments company, offering loans, payments, insurance, and asset management services via mobile apps. It is 33% owned by Alibaba and controlled by Alibaba founder Jack Ma, but is currently unavailable for American users.

Alipay was downloaded from Apple’s US app store and Google Play 207,000 times in 2020, while image scanning app CamScanner and office suite app WPS Office were downloaded 4.4 million and 563,000 times respectively, according to research firm SensorTower.

Tuesday’s move is the latest in a raft of tough new curbs on Chinese companies.

The White House unveiled an executive order in November banning US investment in alleged Chinese military companies including China’s top chipmaker SMIC and oil giant CNOOC. Last month, the Commerce Department added dozens of Chinese companies, including Chinese drone manufacturer SZ DJI Technology Co. Ltd., to a trade blacklist. — Reuters

Holcim Philippines launches environment-friendly mortar

January 7, 2021 | 12:03 am

HOLCIM Philippines, Inc. unveiled a new mortar product that aims to improve the quality of walls, floors, and tile installation in building projects.

In a disclosure to the stock exchange on Wednesday, the company said its new product, Holcim Multifix, is a combination of sand and cement modified with polymer for better performance, and can be used just by adding water.

Holcim said the new product is produced in its dry mix plant, which removes the need to combine materials on the construction site, and maintains the right proportion for the application of the mortar.

“Being factory-produced significantly reduces wastage of building materials such as sand, thus making the product friendlier to the environment,” the company said.

Ramakrishna Maganti, Holcim senior vice president for marketing and innovation, said Holcim Multifix will help solve the common problems of builders in producing mortars such as high-quality raw materials and varying skill levels of workers.

Mr. Maganti said the poor quality of mortars is one of the reasons that affect the quality of walls.

He added that aside from being a wall plaster, Holcim Multifix can also be used for screeding, a finishing layer of concrete slabs for levelling floors, and also for tile laying.

“Holcim Multifix helps make it easier for our partner builders to produce good quality walls. It is factory-mixed using Holcim cement and quality sand for superior performance,” Mr. Maganti said.

“Since we are not screening sand, there will be less material wastage. Holcim Multifix is the only all-in-one drymix product in the Philippines,” he added.

Holcim said its new product will be initially retailed as 25-kilogram bags in select areas in Luzon and will be introduced in Mindanao by the first quarter of 2021.

On Wednesday, Holcim shares at the stock exchange fell 2.03% or 15 centavos to close at P7.25 apiece. — Revin Mikhael D. Ochave

Exhausted by 2020? Here are 5 steps to recover and feel more rested throughout 2021

January 7, 2021 | 12:02 am

FOR most of us, 2020 was an exhausting year. The coronavirus disease 2019 (COVID-19) pandemic heralded draining physical health concerns, social isolation, job dislocation, uncertainty about the future and related mental health issues.

Although some of us have enjoyed changes such as less commuting, for many the pandemic added extra punch to the main source of stress — engaging in or searching for work.

Here’s what theory and research tells us about how to feel more rested and alive in 2021.

Recovery is the process of reversing the adverse impacts of stress. Leading recovery researchers Sabine Sonnentag and Charlotte Fritz have highlighted the important distinction between recovery activities (what you do during leisure time) and recovery experiences (what you need to experience during and after those activities to truly recover).

Recovery activities can be passive (such as watching TV, lying on a beach, reading, internet browsing or listening to music) or active (walking, running, playing sport, dancing, swimming, hobbies, spiritual practice, developing a skill, creating something, learning a language and so on).

How well these activities reduce your stress depends on the extent to which they provide you with five types of recovery experiences:

• psychological detachment: fully disconnecting during non-work time from work-related tasks or even thinking about work issues

• relaxation: being free of tension and anxiety

• mastery: challenging situations that provide a sense of progress and achievement (such as being in learning mode to develop a new skill)

• control: deciding yourself about what to do and when and how to do it

• enjoyment: the state or process of deriving pleasure from seeing, hearing, or doing something.

Of these, psychological detachment is the most potent, according to a 2017 meta-analysis of 54 psychological studies involving more than 26,000 participants.

Benefits of mentally disengaging from work include reduced fatigue and enhanced well-being. On the other hand, inadequate psychological detachment leads to negative thoughts about work, exhaustion, physical discomfort, and negative emotions both at bedtime and during the next morning.

Here are five tips, drawn from the research, to feel more rested and alive.

1. FOLLOW THE EVIDENCE

There are mixed findings regarding the recovery value of passive, low-effort activities such as watching TV or reading a novel.

More promising are social activities, avoiding work-related smartphone use after work, as well as engaging in “receptive” leisure activities (such as attending a concert, game or cultural event) and “creative” leisure activities (designing and making something or expressing yourself in a creative way).

Spending time in “green” environments (parks, bushland, hills) is restorative, particularly when these are natural rather than urban settings. “Blue” environments (the coast, rivers, lakes) are also highly restorative.

Even short lunchtime walks and relaxation exercises lead to feeling more recovered during the afternoon.

Two of the surest ways to recover are to engage in physical exercise and get plenty of quality sleep.

2. ASSESS YOUR ‘BOUNDARY MANAGEMENT STYLE’

Your boundary management style is the extent to which you integrate or separate your work and life beyond work. Work-life researcher Ellen Kossek has created a survey (it takes about five minutes) to help assess your style and provide suggestions for improvement. (The survey can be found here: FlexStyles Assessment (qualtrics.com)

The table developed by Kossek shows physical, mental and social strategies to manage boundaries and separate your work and life beyond work.

3. CULTIVATE YOUR IDENTITY BEYOND WORK

Many of us define ourselves in terms of our profession (“I’m an engineer”), employer (“I work at …”) and perhaps our performance (“I’m a top performer”).

We may also have many other identities related to, for instance, (“I’m a parent”), religion (“I’m a Catholic”), interests (“I’m a guitarist”), activities (“I’m a jogger”) or learning aspirations (“I’m learning Portuguese”).

Dan Caprar and Ben Walker suggest two useful ways to prevent being overly invested in work identity.

First, reorganize your physical space to reduce visual reminders of your work-related identities (e.g. your laptop, professional books, performance awards) and replace them with reminders of your other identities.

Second, do some “identity work” and “identity play,” reflecting on the identities you cherish and experimenting with potential new identities.

4. MAKE TIME FOR BETTER RECOVERY EXPERIENCES

Document what you do when not working. Ask yourself how much these activities enable you to truly experience psychological detachment, relaxation, mastery, control, and enjoyment.

Then experiment with alternative activities that might provide richer recovery experiences. This will typically require less time on things such as news media (especially pandemic updates and doomscrolling), TV, social media, online shopping or video games, gambling, pornography, alcohol or illicit drugs to recover.

You will make it easier to give up activities with minimal recovery value if you supplant them with more rejuvenating alternatives you enjoy.

5. FORM NEW HABITS

Habits are behaviors we automatically repeat in certain situations. Often we fail to develop better habits by being too ambitious. The “tiny habits” approach suggests thinking smaller, with “ABC recipes” that identify:

• anchor moments, when you will enact your intended behavior

• behaviors you will undertake during those moments

• celebration to create a positive feeling that helps this behavior become a habit.

Examples of applying this approach are:

• After I eat lunch, I will walk for at least 10 minutes (ideally somewhere green). I will celebrate by enjoying what I see along the way.

• After I finish work, I will engage in 45 minutes of exercise before dinner. I will celebrate by raising my arms in a V shape and saying “Victory!”

• After 8:30 p.m. I will not look at e-mail or think about work. I will celebrate by reminding myself I deserve to switch off.

Perhaps the most essential ingredient for building better recovery habits is to steer away from feeling burdened by ideas about what you “should” do to recover. Enjoy the process of experimenting with different recovery activities that, given all your work and life commitments, seem most promising, viable and fun.

Peter A. Heslin is a Professor of Management and Scientia Education Fellow, UNSW.

iPhone supply chain sends bullish signal on 5G after tepid start

January 7, 2021 | 12:02 am

IPHONE SUPPLIERS are racing to meet surging demand for Apple, Inc.’s 5G handsets after tech-savvy consumers leaped on the first major wireless technology upgrade in a decade.

Robust demand for the devices helped iPhone assembler Hon Hai Precision Industry Co. beat quarterly revenue expectations. British-German chipmaker Dialog Semiconductor Plc increased its revenue forecasts due to stronger-than-expected demand for fifth-generation (5G) phones and tablets.

The numbers suggest the world may finally be warming to 5G with its much faster download speeds and more reliable connections. After spending billions of dollars on new infrastructure, carriers have struggled to sell the costly handsets to consumers during an economic crisis.

They were hoping Apple’s late arrival to the 5G game would fire up demand, but it’s been an uncertain picture for the first few months. Apple shares fell in October after quarterly iPhone sales missed Wall Street estimates and revenue in China slumped, although Chief Executive Officer Tim Cook said the new 5G-ready iPhone 12 line was well received.

“This update confirms continuing strong performance of Apple’s hardware line-up, still supported by the need to work from home and to learn from home,” said Bryan, Garnier & Co. analyst Frédéric Yoboué. “On top of that it shows that demand for the new iPhones is very buoyant.”

Asian countries, including South Korea and China, have moved fastest in rolling out full 5G services. US phone companies are piling into the technology to sustain profits for the next decade and are racing to offer the broadest, most reliable network.

At an auction of the nation’s 5G airwaves on Monday, bids from carriers and pay-TV providers surged past $76.5 billion, crushing analyst estimates of $47 billion.

Demand for 5G gear was not a given after several years of sluggish handset sales that plateaued at around 1.5 billion units in 2019, according to data compiled by Gartner. That’s partly because high-end phones have become more expensive: Google, Samsung, and Apple have all rolled out several devices costing more than $1,000.

Europe’s less profitable phone industry has avoided a headlong plunge into 5G, wary of rolling out expensive services that consumers won’t be ready to pay for. That’s left a region that pioneered wireless mobile phones lagging the world in the latest technology, with many countries still lacking full 4G services. In much of the region, 5G signals disappear beyond the limits of big cities.

If European consumers joined the 5G phone rush, it would give a short-term boost to the profits of carriers that make a chunk of their earnings from handset sales, and encourage them to spend more to close gaps in 5G national coverage.

5G HEADWINDS
Apple’s 5G push has been complicated by a shortage of vital chips that manage power consumption in iPhones and other devices.

There’s also a turbulent political backdrop. Governments across the globe — led by the US — have banned China’s Huawei Technologies Co. and ZTE Corp. from supplying 5G networking equipment, forcing local telecom companies to more expensive alternatives.

Conspiracy theorists have also promoted groundless and widely condemned theories linking 5G to the spread of coronavirus.

That’s done little to dent long-term optimism over a technology that allows near-instantaneous video downloads and heralds a wealth of industrial applications from self-driving cars to remote surgery and connected factories. 5G is expected to generate $1.15 trillion in revenue by 2025, according to forecasts from the GSMA, an industry body.

“We expect strong consumer demand to continue to filter deeper into the supply chain,” said Andrew Gardiner, analyst at Barclays. — Bloomberg

MSME loans used as alternative reserve compliance hit P134.8B

January 7, 2021 | 12:02 am

BANKS CONTINUED to increase their lending to small businesses in November, taking advantage of the central bank’s relief measure to consider these loans part of their compliance with their reserve requirements (RR).

“MSME (micro-, small-, and medium-sized enterprises) loans used as alternative compliance with reserve requirements reached P134.8 billion as of Nov. 26. This represented a 9.8% share of total RR,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said in his speech at the virtual Kapihan sa Manila Bay on Wednesday.

Meanwhile, Mr. Diokno said loans to large enterprises used as reserve compliance reached P29.1 billion or 1% of total RR.

The BSP in April allowed MSMEs loans to be counted as part of banks’ reserve requirements in a bid to boost lending to the sector, which was hit severely by the pandemic crisis.

MSMEs accounted for 99% of the roughly one million business establishments in the country as of 2018, based on data from the Department of Trade and Industry. They also accounted for 5.7 million or 63.19% of new jobs in the same year.

In May, the central bank began to count lending to pandemic-hit large enterprises as alternative compliance with banks’ reserve requirements. The relief measure is only applicable to credit disbursed to businesses with asset sizes of more than P100 million but are not part of a conglomerate.

The BSP in December capped credit to MSME and large enterprises that banks could utilize as alternate reserve compliance at P300 billion and P425 billion, respectively.

Mr. Diokno has said the caps were meant to ensure that bank loans used for alternate reserve requirements were in line with liquidity conditions.

The central bank last year reduced the reserve requirement ratios of banks by a total of 300 basis points (bps) as a relief measure to boost liquidity during the crisis.

Broken down, it lowered the reserve requirement of big banks by 200 bps to 12%, while the reserve ratios of thrift and rural lenders were trimmed by 100 bps to 3% and 2%, respectively. — L.W.T. Noble

SFEX, Candaba Viaduct rehab slated for completion this year

January 7, 2021 | 12:02 am

NLEX Corp. said it targets to complete the Subic Freeport Expressway (SFEX) Capacity Expansion and Candaba Viaduct Upgrade projects this year.

The tollway company also hopes to complete the first section of the NLEX Connector project this year.

“These infrastructure works are intended to further improve traffic flow and connectivity, as well as promote road safety for hundreds of thousands of motorists using these critical arteries in Central and Northern Luzon,” said NLEX Corp. President and General Manager J. Luigi L. Bautista in an e-mailed statement on Wednesday.

The P1.6-billion SFEX Capacity Expansion project is now 92% complete, the company said.

The project is slated for completion within the first quarter.

“Once finished, the new and expanded SFEX will complement Subic Bay Metropolitan Authority’s infrastructure program, accommodate the growing number of traffic while promoting road safety, and most especially, facilitate passage for truckers and merchants delivering essential goods in and out of the Subic Bay Freeport Zone,” NLEX Corp. said.

In a phone message to BusinessWorld, NLEX Corp. Senior Vice-President for Communication Romulo S. Quimbo, Jr. said the major works associated with the Candaba Viaduct Upgrade project in Pampanga featuring the link slabs replacement will also be completed this year.

The company said it had finished the replacement of 13 link slabs on the southbound portion of the five-kilometer Candaba Viaduct in December.

“Around 12 link slabs more on the southbound segment are up for replacement this year to further strengthen the bridge,” it added.

The company also targets to complete in the last quarter of the year the first section of the NLEX Connector project, which will connect NLEX to Metro Manila Skyway Stage 3 in Sta. Mesa, Manila.

“The project is on track, and is currently at 16% completion,” it said, adding that the project, once completed, is expected to reduce travel time from NLEX to South Luzon Expressway (and vice versa) from two hours to just 20 minutes.

NLEX Corp. is under Metro Pacific Tollways Corp., the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.— Arjay L. Balinbin

Fintech startup Affirm aims for over $9-billion valuation in US IPO

January 7, 2021 | 12:01 am

AFFIRM HOLDINGS INC., founded by PayPal Holdings, Inc. co-founder Max Levchin, is aiming for a valuation of over $9 billion in its initial public offering, the lending startup said in a filing on Tuesday.

Affirm said it plans to price its shares, to be listed on Nasdaq under the ticker ‘AFRM’, between $33 and $38 each and raise as much as $935 million from the sale.

The projected valuation of the company would represent a more than three-fold jump from its last private funding round, when it was valued at a shade less than $3 billion, according to PitchBook.

The financial technology (fintech) venture had planned to complete its IPO before the end of last year, but was forced to delay the share float by a few weeks.

Levchin started Affirm in 2012 to give people without credit history or savings accounts access to small loans. The startup offers financing for online purchases, such as a couch or guitar, that can be paid back in monthly installments.

Affirm’s major investors include Peter Thiel’s Founders Fund, Singaporean sovereign wealth fund GIC, Scottish asset manager Baillie Gifford, venture capital firm Spark Capital, and Fidelity Management and Research Company LLC.

Affirm’s offering kicks off what is expected to be yet another frenetic initial public offering (IPO) season for US capital markets.

A number of high-profile private firms and “unicorn” startups such as Robinhood, Instacart, and Coinbase are expected to debut on US stock exchanges later this year.

Companies raised a record $167.63 billion in the United States in 2020, according to Dealogic data. In comparison, $108 billion was raised in 1999, the previous record for capital raised through new issues.

Morgan Stanley, Goldman Sachs, and Allen & Co. are the lead underwriters for Affirm’s offering. — Reuters

Dining In/Out (01/07/21)

January 7, 2021 | 12:01 am

Yellow Cab offers new thin crust pizza

FOR the new year, Yellow Cab is introducing its newest NY-Style Thin Crust Pizzas. Light and chewy in the middle, and crispier on the edges, this latest product format offers a new way of enjoying Yellow Cab’s edge-to-edge toppings on a lighter crust. Starting at P249 for dine-in, the Thin Crust is available on all 9”, 12”, and 15” Classic and Signature Edge-to-Edge Pizza flavors: Pepperoni, Hawaiian, BBQ Chicken, Garden Special, Manhattan Meatlovers, Roasted Garlic and Shrimp, #4 Cheese, and Patty Melt. The new NY-Style Thin Crust Pizzas are now available in all Yellow Cab stores nationwide for dine-in, curbside pick-up, take-out, and delivery. This is also available via GrabFood, foodpanda, and LalaFood. For more information, visit https://www.facebook.com/YellowCabPizzaOfficial.

Jollibee introduces new ‘Order & Pick Up’ service

JOLLIBEE now has a new Order and Pick Up service. To launch this ordering channel, Jollibee highlights how this new service on the Jollibee App can help people manage their hectic schedule in a new video on its Facebook page. The Order and Pick Up feature on the Jollibee app allows customers to place their orders ahead and claim them at their most convenient time at either the curb side or take out counter, or drive-through window of their preferred store. For added convenience, Jollibee also offers cashless modes of payment via debit or credit card. Customers can also opt to avail of the Order & Pick Up service via Facebook Messenger, or by texting or calling their preferred branch by referring to store locator: https://www.jollibeedelivery.com/store-directory.

RWM opens revamped Bar 360

RESORTS World Manila (RWM) has reopened the revamped Bar 360 to the public. Situated at the center of the newly renovated Garden Wing’s ground floor, the entertainment stage and signature dining outlet Bar 360 has a regular DJ playing hits to entertain diners and guests situated all around the stage. Bar 360 is open daily from 4 p.m. to midnight. For more information on RWM’s Bar 360 and other signature dining outlets, visit www.rwmanila.com and follow @resortsworldmanila on Facebook, Twitter, and Instagram.

Limitless favorites at Q by Mimosa

ONE can now dine in a safe and healthy environment, with scenic views of the Mimosa Plus Golf Course. Until Jan.1 15, Q by Mimosa offers unlimited orders of breakfast favourites for P350+. Come lunch time, it offers limitless orders of Asian and Western cuisine for P750+. Breakfast is available from 6 to 10 a.m. and lunch is available from 11 a.m. to 2 p.m. on Tuesdays to Sundays. Q by Mimosa is located at the Mimosa Plus Golf Clubhouse, inside the Filinvest Mimosa+ Leisure City. To know more, follow Quest Plus Clark and Mimosa Plus Golf on Facebook and Instagram. For reservations, call (045) 599-8000 or e-mail clarkinfo@questhotelsandresorts.com.

Swedish bankers facing identity crisis over digital currency plans

January 7, 2021 | 12:01 am

STOCKHOLM — A new way to pay is causing existential angst among Swedish bankers who worry that the e-krona, an electronic equivalent of Sweden’s currency, could cost them their deposit base.

Sweden launched a review into the e-krona’s feasibility in December after a pilot program at the central bank, making the Nordic country a litmus test for digital currencies.

The Riksbank wants making payments in e-krona to be “as easy as sending a text,” but bankers in Stockholm say this would radically change the dynamic of the banking system.

Like a banknote or coin, the holder of an e-krona has a direct claim on the central bank, effectively bypassing commercial banks, where most state-backed money is held.

“A rational household would hold its money with the Riksbank,” Masih Yazdi, chief financial officer of Sweden’s largest corporate bank SEB, told Reuters, adding that a central bank offers better interest rates and protection.

As people use less physical cash and alternative currencies such as Bitcoin gain ground, many countries around the globe are looking at issuing their own central bank digital currencies (CBDC).

The Bahamas launched the world’s first CBDC in October and China is expected to have a digital yuan within two years.

Sweden, the least cash dependent economy in the world, is leading the way among Western countries and the government is due to reach a decision by November 2022 on whether to pursue the e-krona.

BORN TO RUN?
If Swedes moved their money out of deposit accounts and into e-krona, this would potentially deprive banks of funding and leave them reliant on wholesale markets for liquidity.

Mr. Yazdi is concerned this could make the sector debt-laden and unprofitable, undermining financial stability.

“If you have a bank account but you can — at the click of a button — move your money to the central bank … that could risk instability in the system,” Mr. Yazdi said.

Riksbank Deputy Governor Cecilia Skingsley has dismissed such concerns, saying people can already exit the banking system by buying treasury bills.

“We already have to face the risks that there are cyber runs out of the banking system. I don’t think a CBDC will fundamentally change that to a worse situation,” Ms. Skingsley told Reuters in November.

Rickard Eriksson, an advisor for the Swedish Bankers Association is concerned that the Riksbank has not made it clear what it will do with the money it collects.

It could hold the capital or lend it to the banks to make up their funding shortfall. However, this would mean the availability of mortgages or corporate loans would depend on the Riksbank’s credit risk appetite.

“I don’t think the Riksbank has really thought about this or come up with good answers,” Mr. Eriksson said.

POLITICAL DECISION
Although the Riksbank has not yet specified a detailed plan for the e-krona, Mr. Yazdi said one option could be to cap e-krona at an amount which only replaces cash in the system.

Ms. Skingsley said issuing a CBDC which does not bear interest would limit a central bank’s ability to impose its policy rate.

Yet, this would cross a line for Swedish banks, which may end up having to compete with the Riksbank’s base rate.

And by digitalizing cash, the Riksbank risks straying into areas beyond monetary policy, such as privacy, as payments in e-krona — which is based on blockchain technology — can be traced, Mr. Yazdi said.

Riksbank Governor Stefan Ingves said in October the decision on whether to issue an e-krona needs to be made by politicians.

Mr. Eriksson said the Riksbank had little support when it began talking about the e-krona a few years ago, but he fears this may have increased as other central banks consider their own CBDCs. — Reuters

Phoenix Petroleum offers cashless reloading, digital sale to customers

January 7, 2021 | 12:01 am

PHOENIX PETROLEUM Philippines, Inc. has offered consumers a cashless reloading service through radio-frequency identification (RFID) technology, shortly after holding its first digital flash sale in December, the firm told the local bourse on Wednesday.

In a press release, the oil company said that motorists could now use their Easytrip and Autosweet RFID stickers to reload their accounts through its majority-owned digital microfinance service provider Posible.

The company said the RFID reloading service was initially rolled out on Dec. 29 at 23 participating outlets. The technology would be made available in more of its stations, the firm added.

“Through this, we hope to provide a safer and more convenient reloading options to our motorists who can now skip the long lines and delayed load crediting in other reloading stations,” Phoenix Petroleum’s President Henry Albert R. Fadullon said in a statement.

In another press release on Wednesday, the company said it held its first online flash sale on its app-based loyalty program Limitless on Dec. 28. Fuel vouchers in P1,000, P500 and P100 were available at 80% off.

Phoenix Petroleum said that it was able to sell around P1 million of fuel vouchers during the digital sale, and attracted an estimate of 2,200 new members in two days.

“Unlike other fuel discounts offered in the past, the Limitless flash sale eliminated the need to queue at stations, making the process easier… Made possible through a digital channel, it’s an ideal innovation that perfectly suits our current circumstances, and customers can expect more regular promos on the app,” Phoenix Petroleum’s Vice-President for Integrated Marketing and Strategies Ma. Celina I. Matias said in a statement.

The Dennis A. Uy-led oil company has been introducing a number of digital-based initiatives since the beginning of the government-imposed community quarantine measures. These include cashless payments at its fuel outlets, a fuel delivery service for small and medium enterprises, and the launch of online ordering and delivery services for its liquified petroleum gas business.

Shares in Phoenix Petroleum on Wednesday shed 2.77% to close at P11.92 apiece. — Angelica Y. Yang