Kiffmeister’s #Fintech Daily Digest (20220702)

Meta to Shut Down Novi Service in September in Crypto Winter

“The remainder of the Diem [which started out as Libra] Facebook [now Meta] backed cryptocurrency project is officially shutting down. Novi — a money-transfer service using the company’s own cryptocurrency digital wallet — will end on September 1.  Both the Novi app and Novi on WhatsApp will no longer be available. Starting July 21, users will no longer be able to add money to their accounts, and users are advised to withdraw their balance as soon as possible. Users won’t be able to access their transaction history or other data after the pilot ends.” [Read more]

Crypto collapse latest: the DeFi dead and dying list

David Gerard (“Attack of the 50 Foot Blockchain“) and Amy Castor are doing a great job of tracking the decentralized finance (DeFi) “Dead Pool”. I highly recommend following them if you want to keep track of DeFi shenanigans, and some of the nonsense that gives crypto-assets and distributed ledger technology (DLT) a bad name. Here’s the latest:

Is Crypto in Terminal Decline?

And for a bit of balance, Project Syndicate has put together a collection of opinions that makes for a good short read. [Read more] My favorite quote is from Anne Sibert, former member of the Central Bank of Iceland’s Monetary Policy Committee:

Both unbacked cryptocurrencies and national currencies are fiat money without intrinsic worth. They have value because of self-fulfilling expectations. But cryptocurrencies have benefits for users that national currencies do not. Rules, rather than political whim, determine their supply. For Bitcoin, the supply is capped. Payments can be made directly from one party to another instead of requiring a trusted intermediary, and can be anonymous. Their portability is helpful to those in precarious circumstances.

Upcoming events I’m affiliated with:

The CBDC Think Tank, in partnership with the International Monetary Fund and George Washington University, is hosting a full-day in-person CBDC Masterclass on October 12 in Washington DC. The sessions are designed as instructional deep dives with full presentations and Q&A components.  [Register here]