There’s no real guarantee the Libra Reserve would be stable in practice, especially when broader conditions get rough. The problem, according to numerous experts, boils down to this: What looks safe on paper can hide unpredictable risks.
“If Facebook had built an app that just allowed in-app, user friendly payments in USD, I could have gotten behind that. What has been proposed instead is a combination of a licensed version of Liberty Reserve with an ETF, which furthermore proposes to share transactional data with a veritable rogues’ gallery of privacy-abusing tech companies and the VC firms that funded their rise. “
The use of cash as a means of payment in the Netherlands continued to decline in 2018, according to data released by the Netherlands Bank. Last year, Dutch consumers paid 37% of their purchases in cash, down from 41% in 2017. Cash also declined in transactions between consumers, falling to 59% of peer-to-peer transactions in 2018, down from 67% the previous year.
Bank of Ghana deputy governor Maxwell Opoku-Afari stressed the large gains that Ghana has made in financial inclusion, mostly due to the growth of its mobile money sector. He said the number of mobile money accounts has grown from 3.8m in 2012 to 32.6m in 2018, which is greater than the population of Ghana (30.1 million).
The European subsidiary of Binance has launched a British pound-pegged stablecoin. Starting today, Binance Jersey has started offering a British pound-backed Binance called GBP Stablecoin (BGBP), The Block confirmed with Binance.
The months-long CFTC probe is focused on whether BitMEX broke rules by allowing Americans to trade on the platform, which isn’t registered with the agency, said one of the people who asked not to be named discussing the investigation, which hasn’t been made public. The regulator considers virtual currencies like Bitcoin to be commodities, and it has jurisdiction over futures and other derivatives based on them.
In March, the NY Fed hosted a research conference on FinTech to understand the implications of FinTech developments on issues that are relevant to the Fed’s mandates such as lending, payments, and regulation. This post summarizes the principal themes and findings of the conference.
Posted from Diigo
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The Kiffmeister is a former Senior Financial Sector Expert at the International Monetary Fund.
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