Kiffmeister’s Fintech Daily Digest 02/04/2020

  • This paper analyzes high-frequency data of the six largest stablecoins by market capitalization and finds strong evidence of excess price variations. It identifies Bitcoin as a source of this excess volatility as stablecoin returns, volatility and volumes are highly correlated with corresponding Bitcoin time-series. Importantly, it also finds evidence that stablecoins contribute to the excess volatility of Bitcoin.
  • Fintech is being adopted across markets worldwide – but not evenly. Why not? This paper reviews the evidence. In some economies, especially in the developing world, adoption is being driven by an unmet demand for financial services. Fintech promises to deliver greater financial inclusion. In other economies, adoption can be related to the high cost of traditional finance, a supportive regulatory environment, and other macroeconomic factors. Finally, demographics play an important role, as younger cohorts are more likely to trust and adopt fintech services. Where fintech helps to make the financial system more inclusive and efficient, this could benefit economic growth. Yet the market failures traditionally present in finance remain relevant, and may manifest themselves in new guises.
  • Ethereum is the world’s dominant network for stablecoins and it is still growing. However, with more transactional value taken up by them than ETH itself, is this such a good thing?
  • The MOU aims to provide a framework for closer cooperation between the Philippine and Indonesian central banks to achieve enhance their payment systems and promote digital financial innovation.
  • Visa Inc. is planning the biggest changes in a decade to the rates U.S. merchants pay to accept its cards, hoping to persuade more people to abandon checks and adjusting its fees for new businesses such as ride-hailing services.
    tags: Fintech
  • Worldline SA agreed to buy rival Ingenico Group SA in a 7.8 billion-euro ($8.6 billion) deal the French technology companies say will form one of the largest payment-services providers.
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