Mondex Australia has stepped up preparations for launch of its electronic cash system with the appointment of a former Reserve Bank (RBA) senior manager to manage establishment of the currency originator.
Michael Shreeve, a former senior manager - settlement systems and registry with the RBA, is currently involved in negotiations with his former employer over the structure of the originator, which is charged with delivering and managing the value invested in the electronic cash system.
Shreeve told Computerworld the formal structure of the originator had not yet been finalised, but he hoped the body would be established in the first quarter next year, well ahead of the anticipated rollout of Mondex Australia in the second half of 1998.
“I’m meeting with the Reserve Bank this week [to negotiate over] some sort of in-principle agreement [governing areas such as] risk management and prudent operation,” he said.
He said there were no “sticking points” between the RBA and Mondex over the structure of the originator at this stage.
He said participant banks in Mondex Australia would purchase the value generated by the originator for use in their individual Mondex smart-card schemes. Mondex Australia - a subsidiary of Mondex International, which is 51 per cent owned by MasterCard International - is owned jointly by Westpac, the ANZ, Commonwealth and National Australia Bank (NAB).
Shreeve said the originator would “purchase high-quality liquid assets to back the Mondex value on issue”.