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Stablecoin News for the week ending Wednesday 9th June.

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Do we need or want a CBDC?  

Here is our pick of the 3 most important Stablecoin news stories during the week.

The risk is, or should be, obvious: As outlined in this Fed Research paper.  We do not want to create a system that would give government access, in real time, to detailed information about every single transaction its individual citizens might conduct.

For the Chinese government, that’s not an issue. Beijing seems to see CBDC as a major step toward its goal of complete, digitally enabled social surveillance and control.

Not all privacy is about criminal behaviour, think about political organisation! If you and some like minded companions want to put your money behind a peaceful political movement that is not to the States liking, you should be able to do it privately.

Opinion | Proceed with caution on central bank digital currency

But what is the risk to you and me if our Central Bank does not issue a CBDC?  

In a report published Wednesday the ECB highlighted several.  Domestic and cross-border payments could be dominated by non-domestic providers, for example “foreign tech giants potentially offering artificial currencies,” akin to Facebook’s Diem (formerly Libra) project that sent shockwaves through the financial world on its announcement in 2019.

Market dominance by such a privately issued currency would leave consumers and businesses vulnerable should it threaten the stability of the financial system.

“Issuing a CBDC would help to maintain the autonomy of domestic payment systems and the international use of a currency in a digital world,” the report concludes.  No mention of new use cases and features to benefit the average citizen.

ECB Report Highlights Risks of Not Launching CBDC

In the meantime in China they are continuing with more trials of their CBDC.  Also, this CBDC does not seem to do anything new for citizens than challenge the incumbent payment processors Alipay and WeChat.

China digital currency: when will the e-yuan be launched, and what will it be used for?

So in summary, the ECB and I suspect many Central Bankers in the West are more concerned about losing their monopoly than building us a value added currency whilst in China they also seem to be uninterested in new features and benefits.  Who is really thinking about the consumer and the benefits this technology could really deliver for them?   That’s where I will put my money!  

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Alan Scott is an expert in the FX market and has been working in the domain of stablecoins for many years.  

We have a self imposed constraint of 3 news stories per week because we serve busy senior Fintech leaders who just want succinct and important information.

For context on stablecoins please read this introductory interview with Alan “How stablecoins will change our world” and read articles tagged stablecoin in our archives. 

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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://dailyfintech.com/2021/06/09/stablecoin-news-for-the-week-ending-wednesday-9th-june/

Fintech

Weekly Wrap: China pushes U.S. to take central bank digital currency seriously

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This week, Bank Automation News delves into a House committee’s inquiry into a potential central bank digital currency (CBDC), and explored China’s role in prompting the U.S. to explore a CBDC, as well as the U.S. hesitancy to adopt digital currency. The BAN team also explored how neobanks are causing more banks to abandon a […]

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://bankautomationnews.com/allposts/payments/weekly-wrap-china-pushes-u-s-to-take-central-bank-digital-currency-seriously/

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London based Open Payments Fintech Volt Secures $23.5M via Series A led by EQT Ventures

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London-headquartered Volt, an open payments gateway provider, has secured $23.5 million in capital through a Series A round that was led by EQT Ventures.

Augmentum Fintech, Fuel Ventures, and angel investors including Adyen co-founder Robert Kraal and FIS non-executive director Gabriel de Montessus took part in Volt‘s latest investment round as well.

Launched in 2019, Volt aims to provide convenient access to Open Banking payments across Europe. It reportedly connects more than 5,000 banking platforms in the UK and EU. This helps bring together new generation account-to-account payments infrastructure to a single point of access.

Volt’s management noted that there are 58 countries that are introducing new instant payment schemes, with firms throughout the world now embracing a more digital way of conducting business. With this new funding, Volt aims to expand operations into new markets so that it can increase its global presence.

Tom Greenwood, CEO at Volt, stated:

“Instant payments are set to dominate the global payments landscape and will become the new normal. It’s an exciting time to be in payments, and we are delighted to have secured such a significant funding round, and the backing of an influential group of investors.”

Tom Mendoza, Partner at EQT Ventures, remarked:

“The pandemic has created an inflection point in the payments sector; faced with unprecedented online demand, merchants and PSPs are re-assessing the technical infrastructure that underpins their business. Volt’s team of payments experts are creating meaningful change and building a new category in instant payments, forging the path by bringing new real-time networks to a single switch. We are delighted to be working with Tom and the team.”

As covered in April 2021, Volt revealed that it has developed new cash management functionality. It offers merchants and payment service providers with full visibility of Open Banking payments made via the UK’s Faster Payments Service and the European SEPA Credit Transfer and SEPA Instant Credit Transfer schemes.

Currently available in the United Kingdom, and also across Europe, Volt Connect has been designed to give merchants more control of their cash by allowing them to keep track of multi-currency PSD2 payments from the point of initiation to the moment of arrival in their accounts. Automatic reconciliation and reporting offer recipients with instant notification of transaction settlement, enabling them to credit the intended customer account a lot faster and in a reliable manner.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.crowdfundinsider.com/2021/06/176789-london-based-open-payments-fintech-volt-secures-23-5m-via-series-a-led-by-eqt-ventures/

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Crowdfunding

UK Payments Fintech Paysend, the Card-to-Card Pioneer, Introduces New Digital Money App

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UK’s Paysend, the card-to-card pioneer and global payments platform, has introduced Paysend 4.0, which is described as a new digital money app designed to manage all payments requirements from a single location.

As noted in the announcement, the latest version offers global transfers, a multicurrency wallet, and international spending as part of the updated Paysend app. The app offers an all-in-one payments experience that has been developed by the Paysend product team.

The Paysend 4.0 app includes the Fintech firm’s international transfers capabilities, multicurrency accounts, and cross-border payments that are offered via a user-friendly digital app. The launch started in the United Kingdom and is being rolled out across Europe.

Paysend recently finalized a $125 million Series B round and is now working on creating innovative products that can “save time, save money and service millions of people all over the world with the most advanced technology.”

The Paysend product team has been “growing with several top-class engineers and developers all committed to create and deliver the next generation of digital money products,” the announcement revealed.

The new Paysend 4.0 is a “fully upgraded version” of the Global Transfers app. It embeds key features such as Money Transfer, a multi-currency Global Account and a physical and virtual card. Its multi-currency account allows users “to open different currency wallets, hold up to several currencies at any one time (GBP, USD, EUR, CHF, CNY, PLN, CZK), and switch between them instantly so you can send money to over 128 countries in the world.”

These currencies may be linked to the Paysend Mastercard or in-app Virtual Card and be used for making purchases online, taking care of daily expenses, or used at ATMs globally with low fees. Clients may add their existing banks on this one app, and they may also view their balances and bank statements of the past 3 months on Paysend.

The multi-currency account and Paysend cards have been specifically developed for people who “live, travel and work abroad.”

As explained in the announcement:

“‘The easy-to-use mobile app also [provides] a simpler on-boarding process and is truly the perfect bank alternative. The … improved onboarding experience lets  Paysend customers start their first transaction in less than 5 mins, removing the hassle of setting up an international account through a traditional banking provider.”

The Paysend 4.0 app offers international payment processing, supported by Paysend Global Transfers, allowing customers to perform card-to-card transfers to any Visa, Masterсard or Union Pay cards, Alipay accounts, and to regular bank accounts in more than 120 countries.

Abhishek Tripathi, Head of Product at Paysend, stated:

“The new Paysend 4.0 is an app that will make the life of customers so much easier: with low, fixed fees, an intuitive and simple interface, amazing rates, and of course our powerful digital technology. … Security, convenience and flexibility are the foundations on which we’ve built the new app, and we’re delighted to help millions of people every day with it.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.crowdfundinsider.com/2021/06/176804-uk-payments-fintech-paysend-the-card-to-card-pioneer-introduces-new-digital-money-app/

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Payments

This Week in Fintech ending 18 June 2021

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This week our experts brought you the following insights based on their experience as investors, entrepreneurs & executives.

Monday Ilias Hatzis our Greece-based crypto entrepreneur (Founder & CEO at  Kryptonio a “keyless” non-custodial bitcoin and cryptocurrency wallet, that lets users manage bitcoin and crypto, without private keys or passwords and Weekly Columnist at Daily Fintech) @iliashatzis wrote Bitcoin is now money in El Salvador. What’s next?

El Salvador made history last week. It became the first country in the world to adopt bitcoin as a legal tender. In ninety days from now, people in El Salvador will be able to pay for goods and services using the cryptocurrency and no one will be able to refuse bitcoin as payment. Businesses will have to accept bitcoin for any transaction, just like they do with the US dollar. To minimize risk from bitcoin’s volatility, a government trust fund will guarantee the automatic conversion to dollars. This is huge step for the crypto market and testament that bitcoin is not going away, any time soon, even though on countless occasions in the past, it’s been pronounced dead. This is a bold step by a small country, that could drive other nations to follow in its footsteps. This live experiment could serve as case study for bigger countries to see and learn from the mistakes in El Salvador, before they making their step into digital currencies. If this proves successful, then we will see a massive adoption, especially in countries with cash economies, where bitcoin is already the main tender.

Editor note: This first the Rest then the West narrative may drive the next Bitcoin bull market.

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Tuesday Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy wrote: Part 2 – Some pucks moving in the right direction to democratise Wall Street

I could be accused or being optimistic to the point of naivety but I draw hope from 5 things that are at least moving in the right direction of democratising Wall Street.

Editor note: Last week’s post was about what is pitched as democratising Wall Street, but which is really business as usual. This week’s post is about where real change is coming from.

Wednesday Alan Scott Managing Director EMEA at 24 Exchange @Alan_SmartMoney wrote his weekly roundup of Stablecoin news.

Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy wrote: Bitcoin fans had a dream about Institutional money that turned out to be a nightmare

Many Bitcoin fans dreamt that Legacy Finance Institutions would lead the way to mainstream adoption of Bitcoin.

This dream was the narrative that drove the last Bitcoin bull market. Now that we are in a Bitcoin bear market, that dream has turned out to be a nightmare.

Editor note: Nightmares (and bear markets) do end. This too shall pass.

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Thursday

Rintu Patnaik, an Insurtech expert based in India, wrote: The Underwriter’s Gambit Part 3: Third Party Data In Auto InsuranceThe Underwriter’s Gambit Part 3: Third Party Data In Auto Insurance

In previous parts of this series, increased usage of algorithmic underwriting in complex risks and prevalence of integrated workbenches in life insurance were discussed, as ways in which traditional underwriting was modernizing. In this final part, the use of third party, alternative data in auto insurance underwriting is the focus.

A recent Deloitte study found, 90% respondents in insurance struggle to find value in data they access. Though its foundation is tightly linked to data, the insurance industry still relies predominantly on the same data points they used decades ago – claims histories, credit ratings, customer demographics and general business information – to underwrite risk. Hundreds of data sets are available to insurers, but only some show strong promise, such as IoT data, new forms of open source and social media data.  Among the most common applications of IoT are telematics that provide insurers an opportunity to leverage data generated by vehicles on the roads.

Editor note: Auto insurance is huge but should/could be a lot easier for all. Rintu shows how data is the key to this.

Christian Dreyer @x3er, the Swiss based CFA who focusses on how XBRL changes our world wrote his weekly roundup of XBRL news.

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Friday Howard Tolman, a well-known banker, technologist and entrepreneur in London, wrote his weekly roundup of Alt Lending news.

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To continue receiving ‘This Week in Fintech’, the weekly recap of our articles, you will need to fill this form to give us consent to send this to you. Please note that Daily Fintech requires your organizational email address (e.g. corporate, educational or government) and your LinkedIn URL. This information is required for subscribers who want ‘This Week in Fintech’ for free. If you prefer to not provide this information, you can still receive all our content by becoming a paying member.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://dailyfintech.com/2021/06/18/this-week-in-fintech-ending-18-june-2021/

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