Are state-backed digital currencies a game-changer?

More: China’s anti-monopoly regulations, WhatsApp’s new shopping button, and a pushback from ByteDance in the US. [Read from your browser]( Daily Newsletter Hello {NAME} Everybody’s talking about fintech, and for good reason. Fintech firms have the potential to topple legacy institutions, leveraging on new technologies to completely change our relationships with financial products and services. But that doesn’t mean these large institutions are going to take things lying down. Central banks - which manage the currency and monetary policy of a country, as well as its banking system - are rolling out their own forms of digital currency which could have an effect on the fintech ecosystem as a whole. Today, we look at, - The potential impact of [central bank digital currencies]( also known as CBDCs - How this Vietnamese insurtech startup is making the filing of health insurance claims a little easier - Other newsy highlights such as WhatsApp’s new feature and China’s draft anti-monopoly rules for its tech giants  ---------------------------------------------------------------  PREMIUM SUMMARY  Holla holla, digital currency for your dollars Fintech is an exciting sector, and a new dimension has been added to the conversation with the arrival of central bank digital currencies. CBDCs are a digital representation of money issued by a central bank, either in place of or as a complement to physical cash. - Backed by the bank: CBDCs, much like cryptocurrency, can help make cross-border transactions more efficient through digital ledgers or smart contracts, removing the need for intermediaries. Unlike cryptocurrency, CBDCs are issued by the central bank of a country, which could help them quickly gain trust and adoption among consumers and the financial system. - Why digital currency? Central banks are turning to CBDCs for various reasons. They want to maintain control over money supply and transactions in a time where fintech innovations are rapidly evolving and expanding. Plus, CBDCs increase the efficiency of monetary policies and fiscal stimulus, opening up channels for money to be distributed outside of traditional banks. - It’s early days yet: CBDCs could potentially revolutionize cross-border transactions, in conjunction with smart contracts, and help reduce foreign settlement risk. Additionally, CBDCs have implications for the economy and for business, as the presence of an open platform based on a commercially neutral CBDC could help smaller fintech players. But only time will tell what the impact of this new form of digital currency will be. Read more: [Are state-backed digital currencies a game-changer?](  ---------------------------------------------------------------  STARTUP SPOTLIGHT Navigating Vietnam’s opaque insurance industry Vietnamese insurtech startup Papaya is [working to solve a key pain point]( the claims process in health insurance. It’s one of a handful of insurtech startups in Vietnam, navigating a traditional industry with large incumbent players. - Founded in 2018, Papaya currently operates in the business-to-business space. The startup has secured contracts with two major insurance companies in the country - FWD and Bao Minh - which delegate a number of their portfolio companies for Papaya to manage. - Using Papaya’s mobile app, employees can digitally check in at hospitals and clinics within the insurance companies’ network. They can submit their claims through Papaya’s platform and have claims under US$130 approved within 30 minutes. However, Papaya has only automated about 10% of the process, in part due to a lack of standardization for medical documents in Vietnam. - Papaya’s plans for the future include rolling out personalized health insurance products on the platform through partnerships with insurance companies. Its ultimate goal: building an ecosystem of healthcare and wellness options for company employees. Papaya is now looking to raise US$1 million to further invest in automation technology and hiring. ---------------------------------------------------------------  IN PARTNERSHIP WITH  Ka-ching for the Singapore startup scene “It’s not about the money, money, money.” At least that’s according to English singer-songwriter Jessie J in her 2011 song Price Tag. While that may very well be true, there’s no denying that following the money gives us a pretty good indicator of what sectors, industries, and companies are on the rise. Over [US$3 billion in funding]( - across 201 deals - have been poured into various industries in Singapore to date. It’s a good sign, given the dark cloud that hung over the startup ecosystem in the early days of the pandemic. Diving deeper, here are three of the top-funded verticals in Singapore: - Ecommerce: This is no surprise, as online shopping has risen tremendously as a result of the pandemic. Consumer spending will likely remain online even after Covid-19 restrictions are lifted - and investors have taken note. - Fintech: Going hand-in-hand with ecommerce, fintech is another rising vertical in Singapore. After all, contactless payments, e-wallets, and other fintech solutions are vital for keeping the economy going, as they give consumers and businesses risk-free ways to complete transactions. - Health: The Covid-19 pandemic has exposed gaps in existing healthcare systems. It’s also created an opportunity for the healthcare and biomedical sciences sector to find ways to alleviate these issues and prepare for future health crises. Curious about the who, what, and why behind the funding that’s gone into Singapore this year? Check out [this article]( to find out more.  ---------------------------------------------------------------  QUICK BYTES  1️⃣ ByteDance isn’t backing down ByteDance, the parent company behind short-video app TikTok, [has filed a petition]( challenging a Trump administration order requiring it to divest TikTok by November 12. Talks to finalize a preliminary deal with computer technology corporation Oracle and ecommerce giant Walmart to form a new entity in the US are still in progress.  2️⃣ Shopping on WhatsApp gets a level up Messaging app WhatsApp has [rolled out a new shopping button]( on its platform that will allow users to browse through a business’ catalog and lets them access companies’ storefronts from the app. For many consumers in Asia, chat is the primary way people shop, and this development could open up new opportunities for the many companies that [have built their businesses]( on the app.  3️⃣ Anti-monopoly rules for China’s tech giants China has [published draft regulations]( with the aim of preventing monopoly and unfair competition by internet platforms. This is likely to increase scrutiny on ecommerce marketplaces and payment services like Alibaba Group, Pinduoduo, and Meituan Dianping, among others.  4️⃣ Tighter controls for streaming services in India India’s Ministry of Information and Broadcasting will [begin regulating content]( that goes out on streaming platforms and digital news outlets. This move is expected to kickstart an era of more frequent and stricter censorship on what is available on online services.  5️⃣ Fresh funding for this star-studded Indian learning startup FrontRow, a learning platform centered on creative arts and sports, said it has [raised US$3.2 million]( in its seed round, led by Lightspeed and Elevation Capital. The company offers classes taught by Indian celebrities, and pairs this with a community platform that gives learners regular activities, competitions, and peer engagement activities.  6️⃣ Tencent’s investment into a British healthtech startup Congenica, a digital health company based in the UK, announced that it has [raised US$50 million]( in a series C round co-led by Tencent and London-based Legal and General Group. Congenica’s software enables genomic data analysis of rare diseases and inherited cancer that is 20x faster than industry averages.  ---------------------------------------------------------------  EVENTS HAPPENING - Trendspotting in Fashion Tech on November 16 Fashion and tech are becoming increasingly intertwined. [Find out]( how leading brands are using technology in their retail and experience strategy, from UI personalization to livestreaming to ecommerce to virtual runway shows. - APAC AI Conclave from November 25 to 26 It’s official, we’re holding a conference for the AI/ML leaders and practitioners around the region. So whether you’re in the early exploration phase or a super-user, [join us]( and upgrade your AI/ML game for free!  ---------------------------------------------------------------  WHO'S HIRING - [Manager of Growth Marketing]( at iPaymy (Singapore, Singapore) - [Software Engineer]( at Pand.ai (Kuala Lumpur, Malaysia) - [City Manager]( at PT. Eden Pangan Indonesia (Semarang, Indonesia)  ---------------------------------------------------------------  SHARE WITH YOUR FRIEND Thursday means we’re one day closer to the weekend! Share this with a friend to brighten up their day and keep them up-to-date with what’s going on in the region’s tech scene. Earn rewards like TIA stickers and access to our Southeast Asia's Golden Age premium report when you [refer]( your friends to join us! [ADVERTISE]( | [PREMIUM]( | [JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Was this forwarded to you? You can read this everyday when you sign up [here](. [Drop us a feedback]( if you enjoyed today's newsletter (or if you didn't). Don't want to receive these emails anymore? 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