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The country that is first to introduce a digital currency that is more easily stored and used abroad than its physical counterpart will have “a first-mover advantage to greater currency use, though not necessarily to reserve currency use,” says the IMF’s Tommaso Mancini Griffoli.
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The ongoing digital revolution may lead to a radical departure from the traditional model of monetary exchange. We may see an unbundling of the separate roles of money, creating fiercer competition among specialized currencies. On the other hand, digital currencies associated with large platform ecosystems may lead to a re-bundling of money in which payment services are packaged with an array of data services, encouraging differentiation but discouraging interoperability between platforms. Digital currencies may also cause an upheaval of the international monetary system: countries that are socially or digitally integrated with their neighbors may face digital dollarization, and the prevalence of systemically important platforms could lead to the emergence of digital currency areas that transcend national borders. Central bank digital currency ensures that public money remains a relevant unit of account.
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The physically delivered Bitcoin futures by ICE–backed Bakkt has been finally launched. However, in the first 30 minutes of listing only 3 BTC has been traded, although after about 12 hours 28 BTC had been traded.
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The Riksbank plans to start work on a pilot ‘proof-of-concept’ for a retail CBDC next year. To-date, no decision appears to have been reached for the technology likely to be used for the pilot or any subsequent launch.
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The International Financial Reporting Interpretations Committee has ruled that crypto-assets are “not cash nor an equity instrument of another entity,” but rather “intangible assets” — defined as “identifiable non-monetary assets without physical substance.”
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New FIS report finds 54 countries now have active real-time payment programs, up from 40 in 2018 and nearly four times as many as 2014. India remains the global leader in real-time payments usage with 10-fold increase in value and eight-fold increase in transaction volumes driven through its national system over the last year.
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Virtual asset service providers may have to make quick decisions about how they will comply with the FATF.
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P2P lending industry faces threat of economic slowdown just as underwriting skills show improvement
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The extensive uptake of mobile money in recent years and the subsequent creation of transactional data has spurred access to short-term loans for individuals who had been previously excluded from formal credit markets. By offering instant loans and advances, these products can help individuals and MSMEs (micro, small and medium-sized enterprises) to meet their household needs, handle financial shocks and capitalise on business opportunities.tags: Fintech
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According to the Blockchain Transparency Institute’s 5th market surveillance report the cleanest exchanges are Kraken, Coinbase, Poloniex, and Upbit. Since the start of 2019, global wash trading has reduced by 35.7% among the real Top-40 exchanges.
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Maker will also possibly add KYC to its onboarding process, once again defeating the purpose of decentralized finance to offer low barriers to entry. This extends the troubles with Maker, including the very high participation fee, which is, in essence, its interest rate for lending.
Kiffmeister’s Fintech Daily Digest 09/23/2019
