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“Despite high hopes, it is difficult to see how technology can hasten the creation of a “synthetic hegemonic currency”. Trade and financial contracts continue to be denominated overwhelmingly in a single currency, rather than a basket of currencies. For such a public synthetic alternative to work, central banks, whose currencies underlay it, would have to co-ordinate to ensure its stability and reduce perceived risks. But global needs can conflict with monetary policy objectives at home, significantly reducing the attraction for leading reserve currencies to participate.”
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The EU’s Fifth Anti-Money Laundering Directive (“5AMLD”) will subject certain participants in the crypto-asset sector to regulation for anti-money laundering (AML) and counter-terrorism financing (CTF) compliance purposes. While it most crypto-asset companies will not be ready to comply by 10 January 2020 (the date EU member states are required to bring it into effect), there are lots of tools available that they should consider utilising now so that when they do implement the directive, the process is far quicker and easier.
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According to the Venezuelan government, millions of families have used the petro, the country’s national digital currency, to pay for goods and services. As shoppers rush to spend their coins, merchants are reportedly struggling, effectively forced to sell goods at a deep discount. At least one merchant is said to have been arrested.
Kiffmeister’s Fintech Daily Digest 01/07/2020
