Alt lending Week Ended 26th March 2021

https://dailyfintech.com/2021/03/26/alt-lending-week-ended-26th-march-2021/

Revolut starts process of obtaining US Banking license

UK digital bank Revolut has filed papers with the FDIC and Californian authorities starting the process for a full US banking licence. The company has shown strong revenue growth but like many of its competitors this has not translated into profitability yet. The company has already obtained authorisation in the EU.  The company has a clear strategic goal of becoming the worlds leading app. Bank. I wish them luck but cannot help but feel that in today’s environment ie  interest rates at near zero it will be tough going. Operating in multiple regulatory environments will not be easy and very expensive in the short term. At the same time JP Morgan’s digital offering has just started to play in the space. Two things strike me. Firstly that digital offerings in the US seem to struggle for some unknown reason maybe just old fashioned conservatism and secondly JP Morgan can play a long game and has deep pockets!

Big firms among those not repaying COVID loans

This story demonstrates how acting hastily can mean a lot of explaining to do down the road. The Bank of England’s COVID Corporate Financing Facility was intended to help larger companies support their businesses when the lending markets dried up. Under this scheme the bank bought short date commercial paper from companies directly. Whether or not the money was in fact used for that purpose  is not known. Nor indeed are the terms of the issuance. In any case the scheme has now closed and there are significant amounts still outstanding. Some of the borrowers are in the hardest hit industry sectors, Airlines, Brewers and even Premiership football clubs are prominent. A replacement scheme known as the Recovery loan scheme has not surfaced, yet so many companies are presumably working on plan B or hoping for a more bespoke offering to emerge. Once again however the lack of transparency in government actions, not just in the financial sector but also across the public health issues is just not there. Future political problems are stacking up by the day.

The Tangled tale of Greensill and Gupta may hide systemic dangers

The Times article focuses more on the immediate problem that we are seeing with Greensill and the British Steel industry. Martin Vander Weyer writing in the Spectator of 20th. March points to the collapse of Greensill as perhaps the tip of a very large iceberg. He draws comparisons between the collapse of AIG in 2008 being the catalyst for the wreckage caused by the sub prime catastrophe and the fact that the major cause of Greensill’s woes concerned the cancellation of trade credit insurance by Tokio Marine. The global  shadow banking sector of which Greensill is one small piece is largely unregulated and the overall size of the market is unknown. The impact on similar businesses and investor support is similarly opaque. This story is going to run but as to the outcome nobody knows.

Howard Tolman is a well-known banker, technologist and entrepreneur in London,

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 Alt Lending please read the Interview with Howard Tolman about the future of Alt Lending and read articles tagged Alt Lending in our archives.

Daily Fintech’s original insight is made available to you for US$143 a year (which equates to $2.75 per week). $2.75 buys you a coffee (maybe), or the cost of a week’s subscription to the global Fintech blog – caffeine for the mind that could be worth $ millions.

https://dailyfintech.com/2021/03/26/alt-lending-week-ended-26th-march-2021/

XBRL News about taxonomy updates and derivatives

https://dailyfintech.com/2021/03/25/xbrl-news-about-taxonomy-updates-derivatives/

Here is our pick of the 3 most important XBRL news stories from the last week. 

1 2021 IFRS XBRL taxonomy issued

The IFRS Foundation has issued its 2021 IFRS Taxonomy. The IFRS Taxonomy is a translation of IFRS Standards into XBRL (eXtensible Business Reporting Language). The IFRS Taxonomy 2021 is consistent with IFRSs as issued by the IASB at 1 January 2021, including those issued but not yet effective. The IFRS Taxonomy 2021 also incorporates the six updates made to the IFRS Taxonomy in 2020 reflecting amended IFRSs and providing new common practice elements.

This is the annual update of the IFRS taxonomy – not much more (or less) to be said, really.

2 SEC & FASB post 2021 financial reporting taxonomy

The Financial Accounting Standards Board said Tuesday the Securities and Exchange Commission has accepted the latest updates to the GAAP Taxonomy for filing financial statements with the SEC.

And just like that, the updated taxonomies for the world’s most consequential sets of accounting standards are available: IFRS and US GAAP.

3 G-SIBs back digital derivatives reporting programme to be online for EMIR refit

Many U.S. and European globally systemically important banks (G-SIBs) have seconded staff to a digital regulatory reporting project that mutualises derivatives reporting rules interpretation, expresses those rules as computer code in alignment with trade association- agreed best practices.

While this project is firmly situated inside the hopefully forever invisible plumbing of the global financial system, its impact especially in times of crisis is hard to overestimate.

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Christian Dreyer CFA is well known in Swiss Fintech circles as an expert in XBRL and financial reporting for investors.

 We have a self-imposed constraint of 3 news stories each week because we serve busy senior leaders in Fintech who need just enough information to get on with their job.

 For context on XBRL please read this introduction to our XBRL Week in 2016 and read articles tagged XBRL in our archives. 

 New readers can read 3 free articles.  To  become a member with full access to all that Daily Fintech offers,  the cost is just USD 143 a year (= USD 0.39 per day or USD 2.75 per week). For less than one cup of coffee you get a week full of caffeine for the mind.

https://dailyfintech.com/2021/03/25/xbrl-news-about-taxonomy-updates-derivatives/

SPACs, NFTs and Clubhouse: Blips on the Q1 radar

https://dailyfintech.com/2021/03/25/spac-nft-and-clubhouse-blips-on-the-q1-radar/

We are already racing to close the first 2021 quarter. Take a moment to pause and review trends making most news or surprising us with their novelty, you cannot miss the SPAC activity, NFT market upswing and growing interest in Clubhouse.

SPACs love disruption being themselves a disruption in current times. Like many industries being swept by digitalization forces, insurance is raring to be disrupted and is getting help from  a thriving private funding market. The SPAC route is an alternative to traditional IPOs that is becoming increasingly popular, partly from speed to market benefits. If Non-fungible tokens (NFTs) do not ring a bell, it’s just a matter of time before it will. From digital sports cards to artworks, NFTs have caused quite a stir, doubling total USD volume in February alone. Three years back, the NFT market was touching $42 million. By end 2020, it grew 705% to $338 million. A newbie in social media, Clubhouse is audio-chat based networking. Users join conversations between interesting people on myriad topics, not very dissimilar to tuning into podcasts but added you’ll find an air of exclusivity. Clubhouse was launched in March 2020. With 1500 users in May 2020, it was worth $100m. It burst into the mainstream after Elon Musk hosted Robinhood CEO Vlad Tenev on it.

Currently, the 300 odd SPACs listed on US markets are scouting for acquisitions. Though a bit late, Europe is not far behind in SPAC activity. It seems opportune that insurtechs make use of latest avenues to publicly list. Later-stage companies Hippo and Oscar had the option of mega-round funding before they went public. However, there are umpteen benefits to going public, such as brand recognition, raising funds for early investors and access to bigger funding. Given the number of SPACs proliferating, there is significant competition among SPACs leading to rise in enthusiasm among potential sellers, so it’s an ideal time for insurtechs ready to latch on to this opportunity.

Simply put, NFT is a blockchain entry like bitcoin. While bitcoin is fungible (indistinguishable and value-equivalent), NFTs are non-fungible. NFT tokens represent one-of-its-kind entities and are unique, which aids in establishing the one-and-only “original” digital asset. Buyers acquire undisputable ownership record of an asset along with access to the asset. Currently, assets tend to be works of digital art or trading cards, with instances of physical object ownership based digital records. Till February, ~150,000 token sales for $310 million occurred this year — a massive jump from 2020 sales. NFTs haven’t yet demonstrated ability to retain value over time. Volume is comparatively low. Buying one seems easy. Selling though, is dependent upon finding willing buyers with similar aesthetic proclivities. Nexus Mutual (NM) is a member-owned insurance mutual which provides coverage in crypto land against smart contract vulnerabilities. Contracts are available on Rarible as NFTs, with an emerging secondary market for reselling coverages.

Social media apps routinely arrive on stores, disappearing in due course, with few managing to hold user attention sufficiently. Clubhouse has broken through, though its early days, thanks to burgeoning support from Silicon Valley’s biggest names and global communities. The Elon Musk event breached conversation-room limits and was streamed to YouTube, propelling Clubhouse to chart leadership and ignited a mad rush for invitations. As of early February, the platform had 2 million+ users, skyrocketing it to a billion dollar valuation. Rooms are dotted with experts, luminaries, VCs, journalists and the like.

You get to chat with insurtech founders with recent large fund raises, moderators with expert ensembles highlighting events in their world parts. Barring the weak moderation framework it needs to strengthen, it seems poised to emerge as a veritable live platform for social interaction and knowledge exchange, conceived perhaps appropriately in an age of lockdowns but with enough ammo to stay afloat.

You get 3 free articles on Daily Fintech. After that you will need to become a member for just US$143 a year (= $0.39 per day) and get all our fresh content and our archives and participate in our forum.

https://dailyfintech.com/2021/03/25/spac-nft-and-clubhouse-blips-on-the-q1-radar/

Stablecoin News for the week ending Wednesday 24th March.

https://dailyfintech.com/2021/03/24/stablecoin-news-for-the-week-ending-wednesday-24th-march/

What type of CBDC is best?

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

As noted here many times, Central Banks (with the exception of China) don’t know what type of coin to build, in terms of privacy, use case or how centralized v distributed it should be.  In the meantime private firms are getting on with building new coins and more market share.

A French Retail giant will launch a Tezos based stablecoin.  The new coin is named after a god in Irish mythology and will go by the ticker symbol EURL.  Groupe Casino, a 120-year-old retail company headquartered in France, will reportedly be launching a stablecoin pegged to the Euro.  According to journalist Grégory Raymond, the French retail giant will be launching the stablecoin to use in its stores’ loyalty programs as well as for trading. Groupe Casino oversees more than 11,000 stores in France and Latin America.

French retail giant will launch Tezos-based stablecoin

Convertible central bank digital currencies (CBDCs) offer countries a tantalizing chance to improve vital cross-border payment rails, researchers from the Bank for International Settlements (BIS) wrote in a March note.

Authors Raphael Auer, Philipp Haene and Henry Holden charted one road for cross-border CBDC finance in a detail-heavy research note. They offered a handful of potential mechanisms for multi-CBDC and took some pot shots at the public sector’s inevitable competitor.

BIS Researchers Grapple With Implications of Interoperable CBDCs

A financial expert has hit out at the Russian Central Bank’s digital ruble project, hinting that it amounts to a plan to control the entire financial system – and claiming that if this is the case, it will fail both on the domestic and the international stage.

If a CBDC Is an ‘Instrument of Control,’ It’ll Fail – Expert 101

So in summary, the very characteristics that have drawn so much interest in Central Bank Digital Currencies could be the very ones that cause them to fail.  Not a problem if you are a small group of entrepreneurs with big plans, if you fail, no biggie.  But if you are a Central bank, failure is not an option.

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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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New readers can read 3 free articles.  To  become a member with full access to all that Daily Fintech offers,  the cost is just US$143 a year (= $0.39 per day or $2.75 per week). For less than one cup of coffee you get a week full of caffeine for the mind.

https://dailyfintech.com/2021/03/24/stablecoin-news-for-the-week-ending-wednesday-24th-march/

Part 4 = What will be impact on broader crypto ecosystem of Coinbase IPO/DPO?

https://dailyfintech.com/2021/03/23/part-4-what-will-be-impact-on-broader-crypto-ecosystem/

The crypto bull market is in full swing, so it is no surprise that Coinbase is doing well and on track for a big public listing. In this post we look at the implications of this IPO (actually a DPO = Direct Public Offering) on the crypto ecosystem.

the Coinbase DPO will Accelerate the crypto bull market. Their people will be in interviewed in the media and headliners in events and will tell a bullish tale. An IPO/DPO today is more of a media and liquidity event than a funding event, particularly if it is a DPO (where the company raises no money)

the Coinbase IPO/DPO will make crypto respectable. This will be crypto in a suit. The cypherpunks who got into crypto early will not be made to feel welcome. This will lead to more focus on privacy specific coins and privacy features in big platforms like Bitcoin and Ethereum.

Coinbase will become a Public currency acquirer on the speed dial of every investment banker WHOI IS representing an exciting crypto venture. This will drive the innovation cycle, prompting more early stage deals.

We can see this impact coming. Here are two simple things we don’t know yet:

  • On what date will Coinbase be public? This is not only academic interest for us. Daily Fintech is building it’s own index of public traded Fintech stocks. At publish time time Coinbase is not yet public, so it is not in our index. As soon as it is we will rebalance, adding Coinbase and dropping another stock to keep to our 50 limit.
  • When will Coinbase grow into into it’s valuation? With all the stimulus money, I am assuming the valuation will be high. There is talk of $100 billion market cap valuation. If Coinbase revenues grow fast quarter to quarter, their operating leverage will turn that into rapid profit growth and so Coinbase could grow into into it’s valuation. Let’s wait and see how Coinbase’s quarter to quarter revenue growth pans out.

Click here for the first post in this 4-parter on Coinbase “IPO” – Part 1 = 5 Reasons Why It Matters

Daily Fintech’s original insight is made available to you for US$143 a year (which equates to $2.75 per week). $2.75 buys you a coffee (maybe), or the cost of a week’s subscription to the global Fintech blog – caffeine for the mind that could be worth $ millions.

https://dailyfintech.com/2021/03/23/part-4-what-will-be-impact-on-broader-crypto-ecosystem/

What went wrong at Greensill Capital?

https://dailyfintech.com/2021/03/22/what-went-wrong-at-greensill-capital/

Greensill Capital (a UK based supply chain finance company founded in 2011) filed for insolvency protection on March 8, 2021, having raised over $2 billion in capital.

Supply Chain Finance is a wonky subject. If you talk about it at a cocktail party people look over your shoulder to find somebody more interesting to talk to. Smooth talking hustlers find a way to sex up such wonky subjects. Think of Elizabeth Holmes (Theranos) in blood tests, Ken Lay (Enron) in utility deregulation and Adam Neumann (WeWork) in office rents. Now we can add Lex Greensill in Supply Chain Finance to that list.

Greensill Capital is a big story, already covered in a lot of pixels. At Daily Fintech we aim to dig below the headlines to find out what is really going on ie to add value not just “content” as we have done many times on the subject of Supply Chain Finance. See here for all posts tagged supply chain finance.

So I indulged my inner wonk to find out what went wrong at Greensill Capital, looking at 5 theories:

  • Fatally flawed idea? Was Greensill Capital just offering invoice discounting/factoring ie nothing new? This theory is easy to discard as Greensill was offering reverse factoring Supply Chain Finance, which is working so well for other firms in this market such as Citibank, JP Morgan, Santander, Orbian and Taulia,
  • Pandemic casualty? Small businesses have been hammered by the pandemic. Maybe this caused Greensill to fail as they served small business? This theory is also easy to discard, as Greensill borrowers had nothing do with your friendly local shop/bar etc. However the feel good association with our favourite small businesses was used to sex up a wonky subject.
  • Canary in the coal mine of corporate debt? This is plausible because of an obscure accounting rule that allows companies to book Supply Chain Finance in the “accounts payable” line on a balance sheet. This is real, but minor as the amount of debt through SCF is still quite small. 
  • Hunt for yield in a low interest rate world? This is plausible because Geensill did push into high yield/deeply distressed credit. However this is not the main story as there are so many bigger examples of investors hunting for yield by reducing credit quality 
  • Great idea, lousy execution? Greensill Capital was offering “reverse factoring”, which is a great idea. The credit is based on the Payable (not the Receivable) of the Corporate buyer (not the SME seller). Let’s say the Buyer is a AAA rated Corporate and an approved invoice from a Seller is being financed for 3 months. What is the risk that a AAA rated Corporate will not pay an invoice that they have approved? The risk is comparable to developed country sovereign debt, but with a much better risk-adjusted return on capital. However, execution, although not a sexy subject, does matter. This is the main story. Greensill Capital made three big execution errors:
  • expansion into lower credit quality assets. What is the risk that a CCC rated rated Corporate will not pay an invoice that they have approved? Let’s just say that it is much higher risk than for A or B rated Corporates.
  • Too many funding sources. Greensill Capital had their own bank as well as a relationship with Credit Suisse to tap the capital markets. Complexity such as that is hard to manage.
  • No good SCF technology. SCF is Fin + Tech. Greensill was Fin only. 

There are a couple juicy subplots:

  • SoftBank taken in by another smooth talking hustler? Adam Neumann maybe younger and sexier but the parallels are obvious. However Lex Greensill also fooled General Atlantic Partners who are known for the quality of their analysis before making an investment. 
  • Smooth talking hustler blowing investor cash on Private planes. That story gets clicks. It is part of a late stage bull market story of too much capital chasing too little growth, but is not the main story.

The  main story is simple – quality of execution matters.

Apart from the fact that  a high profile company went bankrupt, a lot of reputations have been damaged:

  • BAFIN. The German regulator was already damaged by Wirecard. Their Reputation has been further damaged by the Greensill Bank operating under its oversight. 
  • SoftBank. This is not so surprising as they appear to have a weakness for big visionary founders who do not deliver. 
  • General Atlantic Partners. This is a surprise as they are known for the quality of their analysis before making an investment. 
  • David Cameron and Prince Charles. These smart, wealthy well connected people damaged their brands by association with a smooth talking hustler. They can take comfort from how many other smart, wealthy well connected people have been taken in by people like Elizabeth Holmes, Ken Lay and Adam Neumann.
  • IAG. This Australian Insurer has major exposure to Greensill.

Here are the reputations that emerged relatively unscathed and are even possibly enhanced:

  • Rest of the SCF market. Greensill Capital was a minor player and the market will emerge stronger for them being removed.
  • Financial Times. Their coverage enhances their reputation for high quality journalism.
  • Lord Myners. Lord Myners, the former City minister, was early in his warnings about Greensill.

To help me understand the banker’s perspective I approached (American translation = “reached out to”) Howard Tolman, a Banker and technology entrepreneur, who now curates the Alt Lending news for Daily Fintech:

Howard focussed in our conversation on an old fashioned banking discipline – assessing credit quality. As Howard put it to me

“relying on auditors or the reputation of the bank packaging the asset for sale is horribly reminiscent of selling low credit quality mortgages as triple A. Different asset of course but the two dogs are related”. 

Daily Fintech’s original insight is made available to you for US$143 a year (which equates to $2.75 per week). $2.75 buys you a coffee (maybe), or the cost of a week’s subscription to the global Fintech blog – caffeine for the mind that could be worth $ millions.

https://dailyfintech.com/2021/03/22/what-went-wrong-at-greensill-capital/

Coinbase’s IPO is a Bitcoin IPO

https://dailyfintech.com/2021/03/22/coinbases-ipo-is-a-bitcoin-ipo/

Coinbase began in 2012 when former Airbnb engineer, Brian Armstrong, and Goldman Sachs trader, Fred Ehrsam joined forces to establish an exchange that would make investing and trading in cryptocurrencies more straightforward and fair. A month ago, Coinbase publicly filed the paperwork to list its stock on the NASDAQ exchange. Now, Coinbase has postponed its anticipated Initial Public Offering from March to April 2021. Some claim that Coinbase IPO delay may be a result of its recent allegations of illegal wash trading practices. Coinbase paid $6.5 million to settle trading investigation with CFTC, for reckless false, misleading, or inaccurate reporting as well as wash trading. Early this month, Jared Dillion wrote on Bloomberg that the digital asset exchange is an “odd business with many unusual risks.”

Ilias Louis Hatzis is the founder and CEO at Kryptonio, a decentralized and keyless crypto wallet. Kryptonio eliminates all the shortcomings of centralized crypto exchanges and problems with managing private keys and seed phrases. Sign up and be the first to get the safest cryptocurrency wallet.

Coinbase is about to have a huge public listing. Its $100B+ direct listing will be tech’s biggest public debut since Facebook. The Coinbase IPO will bring in more investments to the market and impact both the size and value.

Coinbase provides a secure and easy way to buy Bitcoin, Ethereum, and other cryptocurrencies and makes its money from transaction fees. Every time a user buys or sells crypto, Coinbase charges a fee for the trade.

According to the company’s website, the company has more than 43 million users in 100 countries and 2.8 million users make monthly transactions. They collectively account $90 billion in assets.

In 2020, the company had net revenue of $1.2 billion, with 96% of the revenue coming from transaction fees. Bitcoin and Ethereum accounted for 56% of trading volume. Coinbase made around 0.57% on each transaction.

As crypto has been growing rapidly, Coinbase has also seen its revenue skyrocket, growing 139% year over year. But the company doesn’t only make money from transaction fees. It also has subscription and services revenue. Coibase has four main non-investing products: store, stake, distribute, and build. Each of these being a value-add to their base level of service.

The revenue from these non-investing products was $45.0 million in 2020, helping the company diversify its revenue stream.

Coinbase really is looking to disrupt traditional banking. When you look at where their revenue comes from, essentially Coinbase is taking a fee out of transfers and purchases or sales of crypto assets. Currently they trade more than 90 crypto assets.

Coinbase’s move to go public is timed perfectly with bitcoin’s growing acceptance. The overall market cap of cryptocurrencies stands over $1.8 trillion. This is big, but the potential to expand is even bigger. While the top cryptocurrency is volatile, investments by Tesla, MicroStrategy, Mastercard, New York Mellon and Square have added legitimacy to bitcoin.

Coinbase’s IPO is a huge validator for bitcoin and the entire market. This is crypto’s “Netscape moment” and will raise crypto’s visibility, just like the Netscape IPO raised the visibility of the internet. The company’s offering will definitely get a lot of attention, marking an important milestone for bitcoin on the road to a mainstream asset class.

Also, institutional investors that have been hesitant about getting into crypto may see the IPO as a safer way to get exposure to the market, instead of buying bitcoin and other crypto.

While Coinbase has taken center stage, there are some stories floating that eToro is also planning on going public in 2021. According to a report, the company added 5 million new customers this year and could be valued at $5 billion. Kraken is another potential candidate. Kraken launched a crypto bank in Wyoming in 2020 and was last valued at $4 billion.

A successful listing by Coinbase, would represent a landmark victory for cryptocurrency and an endorsement for a sector that has struggled to gain the trust of mainstream investors, regulators and the general public. Practically the company’s initial coin offering would be an IPO for bitcoin. If Coinbase’s stock price performs well after listing, you can expect bitcoin mirror Coinbase’s price action and the bull run to continue.

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https://dailyfintech.com/2021/03/22/coinbases-ipo-is-a-bitcoin-ipo/

This Week in Fintech ending 19th March 2021

https://dailyfintech.com/2021/03/19/this-week-in-fintech-ending-19th-march-2021/

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 Saving Mr. Gates

The story is set in 2021. Gates has steadfastly resisted bticoin, and recently said that he’s worried that bitcoin uses more electricity per transaction than any other method known to mankind. The truth is that Gates has been bearish on bitcoin for some time now. Three years ago, during an “ask me anything” session on Reddit, Gates said that cryptocurrency has been responsible for various evils, including buying Fentanyl and other drugs, money laundering, tax evasion and terrorist funding. In 2018, Gates said that he would short bitcoin if there were an easy way to do it. A 31-year-old Gates became the youngest billionaire in the world in 1987, shortly after Microsoft went public. In 1995, at age 39, he was the richest man in the world with a fortune of $12.9 billion and held the title on and off for decades. But there’s a simple reason Gates is no longer the richest person alive, and it’s not because of Tesla’s or Amazon’s tremendous growth. Bill and the Gates Foundation made a mistake when they chose not to embrace bitcoin. While Bill Gates is an extremely smart man, he does not understand bitcoin and decentralization. Microsoft’s ex-chief built a company that’s the epitome of a centralized organization. But there is so much that he could do for the world, if he embraced in bitcoin and the decentralized values it stands for. He could strengthen the global community’s philanthropic impact by facilitating a faster, affordable, and more secure process for moving funds all around the world. He could ensure financial inclusion for everyone.

Editor note: Gates does not like Bitcoin, So, sell Bitcoin? Or read this if you think Gates may have got this one wrong. 

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Tuesday Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy wrote:Part 3 = How will Coinbase manage strategic headwinds aka risks?

The Coinbase S-1 has a lot of boilerplate plate language on risks. The text is designed to be so boring that you won’t bother reading it.

Here are the four strategic headwinds aka risks that Coinbase faces in non-legal language:

Editor note: Do you think Coinbase will manage these four strategic headwinds? 

Tuesday Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy wrote: Watch out Wall Street, Capital Markets disruption is coming

Wall Street is good at managing through disruption as it is a dynamic, competitive ecosystem not a group think hierarchy. There will be some Wall Street firms that seize the opportunities from disruption, while other firms suffer a Blockbuster/Kodak type fate. Some Wall Street firms are coopting Direct Listings and we can expect some Wall Street firms to coopt Security Tokens. Whatever happens we can be very confident that the future of Capital Markets will be totally different from the past. In this post we aim to work out where the puck is headed.

Editor note: Read this if you are entrepreneur or an investor or you serve entrepreneur or investors.

Wednesday Alan Scott Managing Director EMEA at 24 Exchange @Alan_SmartMoney wrote Stablecoin News for the week ending Wednesday 17 March 2021.

This weekly snapshot is the news that matters in the Stablecoin market.

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Thursday

Rintu Patnaik, an Insurtech expert based in India, wrote: The Changes Underway in the Flood Insurance Market

Flooding is the number-one natural peril in certain advanced markets, superseding wildfire and storm. Millions of properties are at substantial risk – and frequency and severity of floods on the rise. Still, gap in flood insurance is inordinately high, with <5% of single-family homeowners in US having one. Globally, since 1980 flooding accounted for ~40% of loss-related natural catastrophes, with losses totaling US$1 trillion. Per Munich Re, a mere 12% of losses were insured. The flood insurance market was valued at US$9.03 billion in 2019 and is projected to reach US$27.31 billion by 2027, at a CAGR of 14.84% during 2020-27. Historically, flood insurance had been unprofitable or unaffordable in high-risk areas which demanded government intervention.

Editor note: It is of course all about data. Read this post to find out why and how.

Christian Dreyer @x3er, the Swiss based CFA who focusses on how XBRL changes our world wrote: XBRL News regarding data amplification with a view to being digitally sustainable from the start, even for banks

Editor note: This weekly snapshot is the news that matters in the XBRL market.

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Friday Howard Tolman, a well-known banker, technologist and entrepreneur in London, wrote: Alt Lending for week ended 19 March 2021.

Editor note: This weekly snapshot is the news that matters in the Alt Lending market.

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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.

https://dailyfintech.com/2021/03/19/this-week-in-fintech-ending-19th-march-2021/

Alt Lending week ended 19th March 2021

https://dailyfintech.com/2021/03/19/alt-lending-week-ended-19th-march-2021/

What to make of the Recovery loan Scheme

On 6th April the UK government is consolidating its three principal Covid support loan schemes (CBLIS, CLBLIS and BBLS)  with the (RLS)Recovery Loan Scheme. At this time it is worth remembering that we are only now one year into the COVID crisis and so to an extent the government is working with only limited empirical data at its disposal. I am sceptical that anyone really knows enough about what is going on within the darker corners of the UK economy to make informed decisions. Firstly there is the inevitable raft of bad debt that is already baked in to the outstanding loans a consequence of trying to do things in too much of a hurry. Secondly when you offer a free lunch to someone who is hungry they are inevitable going to eat it. The due diligence on a lot of these loans as to the track record of these borrowers was just not done, or if it was, was not done well. Again this was an inevitability given how quickly things were moving. I know it is easy for me to criticise from the sidelines when I don’t have to deal with a terrible pitch and high winds blowing but I do think for the government to provide 100% guarantees was an accident waiting to happen. The RLS will reduce the guarantee to 80% which will clearly sort some wheat from chaff.  However even a 5% risk to be taken by punters in some of the original schemes would have put off some of the real chancers. Estimates of Bad debts under these schemes range from 20-50%. Some real money is going to go south here.

Bankers shun relocation from London to Frankfurt

The rush for Bankers exiting Britain post Brexit has not materialised and this has been felt by Frankfurt’s elite private schools after lots of enquiries but a dearth of bookings.  At the same time there has been a lot of press about Amsterdam becoming the principal beneficiary from business which has moved from London. Alex, the cartoon in the Telegraph got it right. Bankers didn’t want to go to Frankfurt because they didn’t like it. I didn’t like it either. But working for a German Bank was never a great experience and for one very good reason. They are not very good at it wwith the exception of dealing with the engine of German industry the Mittelstand. Even their flagship International leader, Deutsche,  has had to remodel itself and not necessarily for the better. Germany is really quite good at lots of things but they are mostly good at pure process and following instructions to the letter. Anything which requires seat of the pants actions and reactions is hard for them to cope with. As far as Amsterdam is concerned I worked there for a time. Much more laid back. Mathhew Lynn’s suggestion in today’s Telegraph Closer co-operation between Amsterdam and London is worth looking at.

UK insolvencies tumble as companies are thrown life lines.

On the face of it this is good news. Insolvencies in February  were 686 down from 1348 in the same period last year. However this number looks and is largely artificial thanks to government restrictions on what actions creditors can take, backlogs in the courts and the forbearance of creditors recognising that playing things tough is not an option. No wonder digital lenders credit algorithms are being blindsided. This has never been seen before on this scale. I am struck by how many of our new Fintech banks are led by technicians. I fear they will need a crash course on the real world before very long.

Howard Tolman is a well-known banker, technologist and entrepreneur in London,

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 Alt Lending please read the Interview with Howard Tolman about the future of Alt Lending and read articles tagged Alt Lending in our archives.

Daily Fintech’s original insight is made available to you for US$143 a year (which equates to $2.75 per week). $2.75 buys you a coffee (maybe), or the cost of a week’s subscription to the global Fintech blog – caffeine for the mind that could be worth $ millions.

https://dailyfintech.com/2021/03/19/alt-lending-week-ended-19th-march-2021/

XBRL News regarding data amplification with a view to being digitally sustainable from the start, even for banks

https://dailyfintech.com/2021/03/18/xbrl-news-13/

Here is our pick of the 3 most important XBRL news stories from the last week. 

1 Data Amplified virtual

Hear from leaders in digital reporting as digitisation accelerates around the world. Discover new standards, new techniques and best practices to take control of business reporting. Bridge lockdown and make new connections with peers that will drive your innovation. Connect with global experts to answer your questions, with open dialogue and discussion. Get ahead of the curve at this best in class virtual event

This year’s Data Amplified virtual conference 14-16 April is the reference digital reporting event hosted by XBRL International. If you read these lines, then there’s absolutely no reason whatsoever not to jump over and sign up right away – it’s free.

2 Digital from the outset – EU sustainability standards

The European Financial Reporting Advisory Group (EFRAG) has published two milestone reports. They set out recommendations to the European Commission (EC) on the development of EU sustainability reporting standards and on changes to EFRAG’s governance and funding if it were to expand its remit to non-financial standards.

The news domain of sustainability reporting is heating up every day. The two EFRAG reports this piece refers to are milestones on Europe’s way to lead the world towards a sustainable future by way of creating the information framework that enables the required investments. Do not read at your own peril.

3 EBA launches discussion paper on integrated reporting

The European Banking Authority (EBA) published today a discussion paper on the feasibility study of an integrated reporting system to collect feedback for the preparation of its final Report in this area. The discussion paper outlines possible options around the main building blocks of a possible integrated system including a single data dictionary and single reporting system across supervisory, resolution and central bank statistical data. The consultation runs until 11 June 2021.

This discussion paper provides valuable insights into the future direction of European supervisory reporting for the banking industry.

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Christian Dreyer CFA is well known in Swiss Fintech circles as an expert in XBRL and financial reporting for investors.

 We have a self-imposed constraint of 3 news stories each week because we serve busy senior leaders in Fintech who need just enough information to get on with their job.

 For context on XBRL please read this introduction to our XBRL Week in 2016 and read articles tagged XBRL in our archives. 

 New readers can read 3 free articles.  To  become a member with full access to all that Daily Fintech offers,  the cost is just USD 143 a year (= USD 0.39 per day or USD 2.75 per week). For less than one cup of coffee you get a week full of caffeine for the mind.

https://dailyfintech.com/2021/03/18/xbrl-news-13/

The Changes Underway in the Flood Insurance Market

https://dailyfintech.com/2021/03/18/the-changes-underway-in-the-flood-insurance-market/

Flooding is the number-one natural peril in certain advanced markets, superseding wildfire and storm. Millions of properties are at substantial risk – and frequency and severity of floods on the rise. Still, gap in flood insurance is inordinately high, with <5% of exposed single-family homeowners in US having coverage. Globally since 1980, flooding accounted for ~40% of loss-related natural catastrophes, with losses totaling US$1 trillion. Per Munich Re, a mere 12% of losses were insured. The flood insurance market was valued at US$9.03 billion in 2019 and is projected to reach US$27.31 billion by 2027, at a CAGR of 14.84% during 2020-27. Historically, flood insurance has been unprofitable or unaffordable in high-risk areas which demanded government intervention.

Flood damage is excluded under standard homeowners and renters policies. Coverage is available as separate policies from government programs and from private insurers. National Flood Insurance Program (NFIP) covers 22,000+ US communities, with nearly half a million policies and US$1.3 trillion coverage. The number of private carriers have more than doubled in last 3 years leading to improved competition and spreading of economic risk. They offer higher coverage than NFIP policies, currently capped at $250,000 for residential and $500,000 for non-residential buildings. Large writers of private flood include FM Global, Assurant and Zurich Insurance. In 2019, net premiums written for US private flood insurance totaled US$522.6 million, up 45 percent from US$360.1 million in 2018.

When Hurricane Harvey struck Houston in August 2017, nearly 83% flood victims were uninsured because they lived outside most vulnerable flood zones and weren’t required to buy flood insurance. With no insurance, they had to pay for damages out of pocket. In the “state-of-flood-risk” report from First Street Foundation, about 14.6 million properties at high risk were identified, of which 5.9 million property owners were unaware as they were outside danger zones.

Flood, a high-gradient peril, is probably among the least understood. Complication arises due to various forms of flooding, such as surges from hurricanes, tropical depressions etc. Interestingly, flood models have evolved over the past few years owing to increased computational power and take into account the changing climate, such as what a surge would look like with increased sea levels and impact of hurricanes in other regions.  Technology has come a long way in capturing important parameters for flood underwriting, such as topography, location accuracy and building characteristics. Geocoding and location accuracy have improved substantially with AI/ML techniques.

Partnerships in flood insurance have been growing. Recently, Swiss Re entered into a strategic partnership with  commercial satellite operator and flood monitoring provider ICEYE,  to advance flood risk management, assist disaster response and accelerate payments. Neptune Flood, an AI driven flood insurer, partnered with Plymouth Rock Assurance, an auto and home insurance provider. A Lloyds coverholder, Neptune has also increased capacity at Lloyds via new strategic underwriting partnerships. Previsico, a live flood forecasting insurtech is part of Lloyds Banking Group and develops solutions for flood resilience.

Some insurtechs such as FloodFlash offer parametric insurance, based on state-of-the-art sensors that are installed outside insured properties. When sensors detect a flood, they send notifications and payouts are automated. The policy doesn’t use loss adjustors to assess damage, so there are no delays. Other prominent insurtechs in flood insurance include: Cloud to Street, Leakboy, TypTap, FloodMapp, Flo, OKO, True Flood Risk.

Flood insurance has often been considered a nuisance product by homeowners and insurance agents tend to be reluctant to sell to clients. It can be a hard sell, but it doesn’t have to be. Private players are growing and innovations such as online marketplace Realtor.com that shows whether a home is in a FEMA flood zone and provides a First Street Foundation flood risk report, give prospective buyers a better view of a property’s overall flood risk to take informed decisions.

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https://dailyfintech.com/2021/03/18/the-changes-underway-in-the-flood-insurance-market/

Stablecoin News for the week ending Wednesday 17th March.

https://dailyfintech.com/2021/03/17/stablecoin-news-for-the-week-ending-wednesday-17th-march/

Stablecoin growth is the big story!

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

This week a research report by The Block gives a very good status update on how much has been achieved in the stablecoin space.

“Stablecoins: Bridging the Network Gap Between Traditional Money and Digital Value” aspires to serve as a foundational text, for not only digital asset practitioners and enthusiasts, but financial services professionals and global policymakers as well.

Some Highlights since January 2020 to now:

  • Supply = $5.9B → $54.2B
  • Monthly Tx volume = $23.5B → $384B
  • Addresses holdings >$100 = 284k → 1.85M
  • Daily active addresses = 53k → 307k
  • Daily transactions = 98k → 594k

Stablecoins: Bridging the Network Gap Between Traditional Money and Digital Value — Brought to you by GMO Trust

Meanwhile the BIS (Bank of International Settlements or the Central Bankers, Banker) release a report into key design considerations for CBDC (Central Bank Digital Currencies) and the trade offs that will have to be made.  Key takeaways;

  • A trusted and widely usable retail CBDC must be secure and accessible, offer cash-like convenience and safeguard privacy.
  • Various technical designs satisfy these criteria to different degrees, and the associated trade-offs need to be identified.
  • The design of a retail CBDC needs to balance the credibility of direct claims on the central bank with the benefits of using payment intermediaries.

The technology of retail central bank digital currency

Also this week a New Zealand-based firm says it has created the country’s first regulatory compliant stablecoin, one backed by the country’s dollar. New Zealand dollar reserves backing the stablecoin are to be confirmed by an accounting firm on a quarterly basis. 

Launching today, the cryptocurrency is backed one-to-one by the New Zealand dollar and deployed on the Ethereum blockchain by Blockchain Labs. $NZDs’ code utilizes a framework developed by Coinbase and Circle-founded Centre group.

Compliant Stablecoin Launches in New Zealand

So in summary, stablecoins are growing fast and have established themselves as a really important element of the Crypto ecosystem, while Central Banks are wrestling with many big issues still at the design stage.

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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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New readers can read 3 free articles.  To  become a member with full access to all that Daily Fintech offers,  the cost is just US$143 a year (= $0.39 per day or $2.75 per week). For less than one cup of coffee you get a week full of caffeine for the mind.

https://dailyfintech.com/2021/03/17/stablecoin-news-for-the-week-ending-wednesday-17th-march/

Watch out Wall Street, Capital Markets disruption is coming

https://dailyfintech.com/2021/03/16/watch-out-wall-street-capital-markets-disruption-is-coming/

Wall Street is good at managing through disruption as it is a dynamic, competitive ecosystem not a group think hierarchy. There will be some Wall Street firms that seize the opportunities from disruption, while other firms suffer a Blockbuster/Kodak type fate. Some Wall Street firms are coopting Direct Listings and we can expect some Wall Street firms to coopt Security Tokens. Whatever happens we can be very confident that the future of Capital Markets will be totally different from the past. In this post we aim to work out where the puck is headed.

The Capital Markets past met the needs of four key players:

  • The Silicon Valley VC Funds who invested early in disruptive ventures aka Wall Street West.
  • The entrepreneurs building those disruptive ventures.
  • The Investment Bankers who managed the IPO of those disruptive ventures aka  Wall Street East.
  • Investors buying at IPO.

Everybody on the inside connected to those four key players did very well.

In 2017 we had the ICO explosion, well documented on Daily Fintech, which was the revolt of everybody excluded from that lucrative game. Most ICOs did not end well, suffering from legal problems, scams and irrational exuberance. However ICOs got a lot of support at first because they were aiming to fix a deeply broken system.

Today – in the present – we see a lot of Capital Markets innovation that such as:

  • Crowdfunding = disruption to Wall Street West at the early stage.
  • Direct Listing = a bigger piece of the pie for Wall Street West and a smaller piece of the pie for Wall Street East.
  • SPACS = entrepreneurs bye-passing both Wall Street East & West.

Where the puck is headed – the future of Capital Markets- is Security Tokens. ICOs were like Napster (illegal and free and in the dustbin of history but aiming at a big broken market) and Security Tokens are like iTunes and Spotify (low price and legal going after that same big broken market). Yes, low price and legal is the model that created many huge businesses.  Security Tokens combine the technical advantaqes with regulated safety of IPOs and Direct Listings.

As always both the past and future are with us today – just unevenly distributed.

Daily Fintech’s original insight is made available to you for US$143 a year (which equates to $2.75 per week). $2.75 buys you a coffee (maybe), or the cost of a week’s subscription to the global Fintech blog – caffeine for the mind that could be worth $ millions.

https://dailyfintech.com/2021/03/16/watch-out-wall-street-capital-markets-disruption-is-coming/

Part 3 = How will Coinbase manage strategic headwinds aka risks?

https://dailyfintech.com/2021/03/16/part-3-how-will-coinbase-manage-strategic-headwinds-aka-risks/

The Coinbase S-1 has a lot of boilerplate plate language on risks. The text is designed to be so boring that you won’t bother reading it.

Here are the four strategic headwinds aka risks that Coinbase faces in non-legal language:

Regulations vs crypto logic. Coinbase is a regulated on ramp (and off ramp)  for an unregulated/permissionless network. There is conflict there. Regulators want data, customers want privacy.

Institutional clients and Consumers  in one company. They have different needs and combining both in one brand image will be tough.

Cybersecurity. This risk DID make it into the S-1. All. Centralized. Systems. Are. Hacked. There are two types of centralized systems – those that have been hacked and those that will be hacked. Although Coinbase  enables trading in fully decentralized coins such as BTC and ETH, Coinbase itself is a traditional centralized system.

Crypto newbies and enthusiasts in one company. People getting into Crypto for the first time (aka newbies) want the simplicity of a regulated bank like experience. Crypto enthusiasts like unregulated/permissionless/decentralized experience. The enthusiasts market maybe small but they carry a lot of branding weight.

These strategic headwinds are real but Coinbase also has a very strong management team, so I think they will manage them quite well.

Stay tuned for the final instalment in this 4-part post on what will be the impact on the broader crypto ecosystem/

Click here for the first post in this 4-parter on Coinbase “IPO” – Part 1 = 5 Reasons Why It Matters

Daily Fintech’s original insight is made available to you for US$143 a year (which equates to $2.75 per week). $2.75 buys you a coffee (maybe), or the cost of a week’s subscription to the global Fintech blog – caffeine for the mind that could be worth $ millions.

https://dailyfintech.com/2021/03/16/part-3-how-will-coinbase-manage-strategic-headwinds-aka-risks/

Fleet Footed Giants Trailblaze Ecosystem Paths

https://dailyfintech.com/2021/03/11/fleet-footed-giants-trail-blaze-ecosystem-paths/

From $250 billion in 2020, a study found total value of premiums produced by insurtech will cross $556 billion in 2025. The Juniper Research study forecasts that shifting customer loyalty, premium reductions from increased competition and sweeping digitalization will cause carriers in motor, life, home and health insurance to lose sheen with potential customers.  Juniper ranked 20 largest carriers on innovation, investment success and placed AXA, Ping An and Munich Re as pack leaders. This article covers AXA’s modernization endeavors and the role of AXA Next, its ecosystem play.

France-headquartered AXA has more than 107 million customers in P&C insurance, life and savings, asset management and other services.  A top three insurance provider globally, it has made substantial strides in last few years. AXA’s strategy has been two pronged – drive efficiency in core business and transform for the digital age through new capabilities and value propositions.

Prior to 2016, AXA had identified few strategic themes:

  • Shift business profile towards technical risks
  • Simplify the group
  • Scale innovation in health.

One of its boldest moves since was to pivot from life and savings to commercial P&C, by acquiring US-based XL Group, making it the largest P&C player globally. It increased focus on health insurance, accelerated growth in Asia and launched a new business unit – AXA Next – to build an innovation ecosystem to develop services and business models beyond insurance.

This ecosystem serves to collaborate on new products and services. At the org level, AXA Labs identifies innovation in emerging areas. Externally, it collaborates with partners of varying maturity to explore new business opportunities with startups (Kamet) and corporates (AXA Partners).

With an ecosystem of 8 units geared to accelerate innovation, AXA Next and its 10,000 Nexters serve millions in over 40 countries, generating €3 billion of revenues with rapid growth in key segments. The objectives of the ecosystem are to:

  • Tackle emerging and global risks
  • Replicate and scale innovative solutions
  • Radically improve and simplify customer experiences

AXA Next has delivered services such as to improve health outcomes for patients while reducing health costs with new protection offers for ecosystem partners. It is the first contributor to health services revenues within the Group, supporting its Payer to Partner ambition. It offers 24×7 telemedicine services to over 5 million in France, with deployments in Italy and Belgium and plans to scale to low-income consumers outside Europe. It provides medical assistance to customers of 5,000 hotels worldwide through a partnership between Accor and AXA.

At the group level, the AXA strategy is bearing fruit and has resulted in improved customer satisfaction (21% more businesses met or exceeded local market average NPS) and strong operational performance. The Group has progressively diversified to offer complementary services with insurance coverage.

With technology at the forefront of its strategy, AXA via its ‘Move to the Cloud’ transformation program, migrated a couple of thousand applications. The cloud has enabled AXA to exploit innovations, such as in AI, ML, chatbots, image, and facial recognition. Multiple AXA entities now leverage the cloud, including the first on-demand cover to protect drivers’ earnings, a data-lake platform to enable automatic upload of customer feedback and response, a smart platform for data scientists to independently conduct big-data projects. Another cloud application connects AXA with a price comparison portal, driving shorter development time, quicker reaction to business demands and happier customers.

Last December, AXA unveiled its strategic plan for 2021-23. The roadmap outlines development of health and pension as a key imperative, targeting an average growth of 5% in revenues. Simplification of customer experience and improved productivity is expected to reduce costs by nearly $600 million. AXA continues to deliver on its turnaround game-plan and is poised to stand its ground against nimble competitors – a veritable playbook for incumbents struggling to get their act together.

Cover Image

You get 3 free articles on Daily Fintech. After that you will need to become a member for just US$143 a year (= $0.39 per day) and get all our fresh content and our archives and participate in our forum.

https://dailyfintech.com/2021/03/11/fleet-footed-giants-trail-blaze-ecosystem-paths/

Stablecoin News for the week ending Wednesday 10th March.

https://dailyfintech.com/2021/03/10/stablecoin-news-for-the-week-ending-wednesday-10th-march/

Forget CBDC’s, Stablecoins are a Private Sector Innovation.

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

Over $1.5 trillion in Stablecoins has been transacted in the last 12 months from five different Private Sector issuers: Tether (USDT), Circle (USDC), Binance (BUSD), Maker (DAI) and Huobi (HUSD).  At the same time, we have seen a raft of big players begin to embrace stablecoins for payments.

* Visa joined forces with Circle to make $USDC transactions compatible with credit cards.

* Mastercard said it’s keen to embrace compliant stablecoins and central bank digital currencies.

* PayPal invested in Stablecoin as a Service provider Paxos and Custody provider Curv. Paypal to buy custodian Curv for 500m after 29m Invested.

* BNY Mellon said it believes the future of virtual money lies in stablecoins.

So what about Bitcoin?  This article postulates that it’s real competitors are CBDC’s.

Bitcoin’s Future May Be Dwarfed by Interoperable Central Bank Digital Currencies

Meanwhile the most advanced CBDC is in China and is expanding it’s trails both domestically and now in cross border.  Last week, the People’s Bank of China (PBOC) announced that it has joined forces with the central banks of United Arab Emirates, Hong Kong and Thailand to explore the use of digital currencies in cross-border payments. Analysts believe that China’s e-CNY CBDC, once it is accepted for use outside of China’s borders, could one day challenge the supremacy of the U.S. dollar in international trade and finance.

China’s DCEP project launches biggest digital yuan test yet

So in summary, stablecoins are becoming a three cornered battle ground for consumer wallets between Private Sector Issuers, Central Banks of which China is the clear leader and Crypto led by Bitcoin and Etheruem. 

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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. 

______________________________________________________________________________________________________

New readers can read 3 free articles.  To  become a member with full access to all that Daily Fintech offers,  the cost is just US$143 a year (= $0.39 per day or $2.75 per week). For less than one cup of coffee you get a week full of caffeine for the mind.

https://dailyfintech.com/2021/03/10/stablecoin-news-for-the-week-ending-wednesday-10th-march/