Kiffmeister’s FinTech Daily Digest (06/02/2020)

Sybil Welsh, Eastern Caribbean Central Bank (ECCB) Senior Project Specialist and member of the ECCB FinTech Working Group, confirms that the digital EC dollar is currently being piloted with financial institutions, merchants, and consumers in prep for a July 20 launch.

3 Main Reasons Bitcoin’s Price Plummeted 14% in 15 Minutes to $8,600
The price of Bitcoin (BTC) plummeted by 14% from $10,180 to $8,600 on BitMEX within less than 15 minutes. Three major factors that caused the price drop were: long contracts accounting for the overwhelming majority of the Bitcoin market, BTC reacting to a multiyear resistance at $10,500 and whales dumping.

Ethereum price reclaims $250 ahead of major upgrade
The Ethereum 2.0 upgrade is still on track to go live in July. The new upgrade will see Ethereum transition to a hybrid consensus system formed of a mix between its current proof-of-work (PoW) algorithm and a new proof-of-stake (PoS) algorithm. It will also introduce much-needed efficiency improvements, potentially helping Ethereum overcome its rampant bloat issues.

From Tether to Libra: Stablecoins, Digital Currency and the Future of Money
This paper provides an overview on stablecoins and introduces a terminology to help better identify stablecoins with disruptive potential. It provides a compact definition for stablecoins, identifying the unique features that make them distinct from previously known payment systems. Furthermore, it surveys the different use cases for stablecoins as well as the underlying economic incentives for creating them. Finally, it outlines critical regulatory considerations that constrain stablecoins and summarizes key factors that are driving their rapid development.

How a Fatal Weakness Forced Libra to Capitulate
The Tower of Babel project is over. Libra will comply with everything that governments demand, and in return, it will be absorbed into the existing international financial system. The lesson from Libra’s capitulation is that if you really want to challenge government authority, you don’t tie yourself into the existing system. You set up an alternative to it, and you defend it to the hilt.

MAS launches framework to promote responsible AI
The Monetary Authority of Singapore (MAS) launched two programmes to promote the responsible adoption of artificial intelligence and data analytics for financial institutions. The two projects are aimed at developing fairness metrics in credit risk scoring and customer marketing, and helping financial institutions validate their data-based systems.

FYI: The Stanford University Future of Digital Currency Initiative
The Initiative will focus on digital currencies of all forms across the entire ecosystem spectrum, from centralized to decentralized to hybrids including Central Bank Digital Currency (CBDC) and stablecoins amongst many others. Currently, more than 40 central banks are exploring some form of digital currency initiative. The Initiative will undertake research and evaluation of technical standards for interoperability in collaboration with key government, NGO and private industry stakeholders. The Initiative will also study and implement emerging cross-border business use cases related to supply chain, financial markets, charitable giving and macroeconomic impact of these instruments on promoting financial inclusion.

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One thought on “Kiffmeister’s FinTech Daily Digest (06/02/2020)

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