Kiffmeister’s FinTech Daily Digest (07/11/2020)

The Wirecard lessons: A reform proposal for the supervision of securities markets in Europe
The Wirecard scandal calls for a fundamental overhaul of the fragmented European securities markets supervisory regime, and offers the potential to lead to the establishment of an independent European Single Market Supervisor (ESMS). Endowed with strong enforcement powers, and supported by the existing national agencies, the ESMS would be entrusted with ensuring a uniform market standard as to transparency and other issues of market integrity across Europe. This would not rule out maintaining a variety of market organization structures at the national level. The ESMS would need executive powers in the world of markets (i.e. securities and trading), much like the ECB Single Supervisory Mechanism (SSM). To fill this new role, ESMS would have to be established as a new, independent institution, including an enormously scaled up staff compared to the European Securities and Markets Authority (ESMA).

The Road to Digital Money – Twenty Two Suggestions for Leveling the Roadbed Before We Pave It
This essay argues that, soon enough, we will start to talk about the real-world realization of the dream of a digitally native dollar.  It then goes on to recommend that the US government create a task force whose goal is to overhaul the financial system we have today to better serve the 9–10 billion people who are coming this century. It starts with an overview, then presents 22 goals for the task force to achieve before we begin coding up a digital dollar infrastructure.

Without privacy, do we really want a digital dollar?
Unlike a traditional bank ledger, in a zero-knowledge system each transaction would reveal no information about the sender, recipient, or amount sent, yet proofs would protect the soundness of the currency from theft and counterfeiting. Unlike physical cash or banking, a digital dollar ledger could offer a real time and publicly auditable report of the supply of money in circulation, and by using zero-knowledge proofs this public accountability can be offered without revealing individual transaction details that could jeopardize the privacy of digital dollar users. A major benefit of this approach is that, unlike traditional cryptocurrencies, the total number of transactions allowed by the system can be made to scale to tens or hundreds of thousands per second.

Posted from Diigo: https://www.diigo.com/user/kiffmeister/Fintech