Facebook’s Diem/Libra testnet has been live for over a month as the Libra Association prepares for the next stage with broader participation among members. The latest update from the blockchain explorer finds the network performing at an average of six transactions per second (TPS), with the highest reported figure of 24 TPS. In comparison, Bitcoin and Ethereum blockchains execute close to four and 13 TPS, respectively. On the other hand, VISA support 1,700 transactions each second.
A Bank for International Settlements (BIS) working paper suggests that use of massive amounts of data by large technology firms (big techs) to assess firms’ creditworthiness could reduce the need for collateral in credit markets. Using a unique dataset of more than 2 million Chinese firms that received credit from both an important big tech firm (Ant Group) and traditional commercial banks, the paper finds that a greater use of big tech credit, granted on the basis of machine learning and big data, could reduce the importance of collateral and potentially weaken the financial accelerator mechanism.
The Central Bank of Oman (CBO) launched a Fintech Regulatory Sandbox (FRS) through which participants can apply to live test their innovative Fintech solutions in a safe environment under the supervision of the CBO. The first phase of the FRS will be open for receiving Fintech applications related to payments solutions.