The electronic fixed term is born: what is the new instrument created by the BCRA about

This BCRA measure introduces a new instrument in the digital payment system and expands savings and investment options.

The new functionalities will allow:

• Transfer ownership for the cancellation of obligations –commercial or between individuals-; as well as for its negotiation in stock markets, and/or for the primary offer.

• Through its fractioning, transmit amounts less than the original amount, keeping the rest of the placement under the same conditions, thus allowing the holder to obtain liquidity for the amount he needs.

• That at maturity the funds are collected over the counter at the depositary entity or, through accreditation in an account at a different financial entity.

The CEDIP and the provisions that are part of the resolution of the Central Bank shall govern as of July 1, 2023 (with the exception of the functionalities of installment, transmission for trading in the stock market, and over-the-counter collection, which must be operational as of November 1, 2023).

It should be noted that the CEDIP will be a completely digital instrument that will have the record of all its transmissions with a certain date and will therefore be fully traceable.

With this measure, fixed terms and term investments set up through home banking or mobile banking are equal to those arranged in person and with more functionalities. As of September 2022, non-transferable fixed terms (constituted electronically) represented close to 88% of total placements, compared to transferable ones, with 12%.

The Central Bank has been promoting the development of digital means of payment and financing through regulations that facilitate their use and that create new instruments, such as the electronic check (ECHEQ), which is mature and has proven to be robust, reliable and widely adopted, and the MiPyME electronic credit invoice (FCEM), with the recent implementation of the open circulation system.