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Category: FinTechUpdate

FinTechUpdate

  • Coinbase Wants a Dedicated Federal Regulator for Crypto

    Coinbase Wants a Dedicated Federal Regulator for Crypto

    Coinbase is calling on the US government to establish a new regulator for the crypto and digital assets market.

    Coinbase is one of the leading cryptocurrency trading platforms, but it recently ran afoul of the Securities and Exchange Commission (SEC). Coinbase was planning a new service called Lend that would allow individuals to loan cryptocurrency to other users, and charge interest for the transactions.

    The SEC warned Coinbase it would sue the company if it proceeded with its plans, sparking a verbal war between the two entities. Coinbase ultimately ended up abandoning Lend under the pressure. In the meantime, SEC Chairman Gary Gensler has said he doesn’t believe crypto is viable long-term.

    In that environment, it’s not surprising Coinbase is lobbying for a new federal regulator to oversee the crypto market — one that is not Gary Gensler’s SEC. As part of it’s new regulatory framework, Digital Asset Policy Proposal: Safeguarding America’s Financial Leadership (dApp), Coinbase makes its case:

    To avoid fragmented and inconsistent regulatory oversight of these unique and concurrent innovations, responsibility over digital asset markets should be assigned to a single federal regulator.

    Like many countries, the US is grappling with the impact of cryptocurrency and is trying to determine how best to regulate it. Gensler has been making the case that the SEC should have sole authority to do so, a position that has many critics, in addition to Coinbase. It will be interesting to see what direction the US government goes.

  • Vladimir Putin Signals Support for Cryptocurrencies

    Vladimir Putin Signals Support for Cryptocurrencies

    Russian President Vladimir Putin has come out in support of cryptocurrencies, at a time when Russia is the third-biggest crypto mining country.

    Cryptocurrency is under increased scrutiny around the world, with many legislators looking to regulate the technology. China recentlyimplemented a major crackdown, and US officials are weighing what steps to take to regulate it.

    Putin, on the other hand, seems ready to embrace it. In an interview with CNBC, via Bloomberg, the Russian president said crypto “has the right to exist and can be used as a means of payment.”

    As Bloomberg highlights, Russia has been looking for alternatives to the US dollar for international trading for several years. The politics of the situation are no doubt playing a part in Putin’s embrace of crypto.

  • US Leads the World in Bitcoin Mining After China Crackdown

    US Leads the World in Bitcoin Mining After China Crackdown

    Following China’s crackdown on bitcoin mining, the US now leads the world in bitcoin mining.

    China was once the leading bitcoin mining country, accounting for roughly 75% of all mining. Recently, however, the Chinese government has cracked down on cryptocurrencies, making all transactions and mining illegal.

    According to BBC, the US has now taken China’s spot as the leading bitcoin mining country, at 35.4%. Kazakhstan and Russia round out the top three with 18.1% and 11% respectively.

  • JPMorgan CEO Jamie Dimon Thinks Bitcoin is ‘Worthless’

    JPMorgan CEO Jamie Dimon Thinks Bitcoin is ‘Worthless’

    Bitcoin may be one of the hottest things in the tech and finance industries, but JPMorgan CEO Jamie Dimon is not a fan, calling it “worthless.”

    Dimon is a well-known critic of cryptocurrency, previously telling people he thinks they should “stay away from it.” He’s now gone even further, saying he thinks Bitcoin is “worthless,” according to Reuters.

    “I personally think that bitcoin is worthless,” Dimon said. “I don’t think you should smoke cigarettes either.

    “Our clients are adults. They disagree. If they want to have access to buy or sell bitcoin – we can’t custody it – but we can give them legitimate, as clean as possible access.”

    Dimon also believes significant government regulation is on the way, for a number of reasons.

    “No matter what anyone thinks about it, government is going to regulate it. They are going to regulate it for (anti-money laundering) purposes, for (Bank Secrecy Act) purposes, for tax,” Dimon said.

  • AMC Theatres Will Accept Dogecoin

    AMC Theatres Will Accept Dogecoin

    AMC Theatres has announced it will start accepting Dogecoin, alongside Bitcoin, by the end of the year.

    AMC announced in August that it would begin accepting Bitcoin by the end of the year. A month later, the company announced it would expand its support to other cryptocurrencies.

    According to TheStreet, AMC will accept Dogecoin via BitPay. Customers will be able to purchase up to $200 worth of gift cards per day, gift cards that can be used online or in-person.

  • DOJ Creates National Cryptocurrency Enforcement Team

    DOJ Creates National Cryptocurrency Enforcement Team

    The Department of Justice has announced the formation of a team dedicated to cryptocurrency enforcement.

    Cryptocurrencies are taking the world by storm, offering a decentralized, mostly anonymous form of finance. With few exceptions, governments around the world are struggling to strike a balance between supporting a technical innovation and figuring out how to regulate it.

    The DOJ is preparing to take a more active role, forming a team that will “tackle complex investigations and prosecutions of criminal misuses of cryptocurrency, particularly crimes committed by virtual currency exchanges, mixing and tumbling services, and money laundering infrastructure actors.”

    Dubbed the National Cryptocurrency Enforcement Team (NCET), the team will bring in expertise from the DOJ Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), as well as Computer Crime and Intellectual Property Section (CCIPS) and other divisions.

    “Today we are launching the National Cryptocurrency Enforcement Team to draw on the Department’s cyber and money laundering expertise to strengthen our capacity to dismantle the financial entities that enable criminal actors to flourish — and quite frankly to profit — from abusing cryptocurrency platforms” said Deputy Attorney General Monaco. “As the technology advances, so too must the Department evolve with it so that we’re poised to root out abuse on these platforms and ensure user confidence in these systems.”

    “The Criminal Division is already an established leader in investigating and prosecuting the criminal misuse of cryptocurrency,” said Assistant Attorney General Polite. “The creation of this team will build on this leadership by combining and coordinating expertise across the Division in this continuously evolving field to investigate and prosecute the fraudulent misuse, illegal laundering, and other criminal activities involving cryptocurrencies.”

  • Brazil Poised to Adopt Bitcoin as Legal Currency

    Brazil Poised to Adopt Bitcoin as Legal Currency

    Brazil is poised to follow in El Salvador’s footsteps and adopt bitcoin as a legal currency.

    El Salvador became the first country to adopt bitcoin as legal tender in June. According to Coin Rivet, Brazil is preparing to vote on a crypto regulation bill that could pave the way for widespread use.

    “We want to separate the wheat from the chaff, create regulations so that you can trade, know where you’re buying and know who you’re dealing with,” Federal Deputy Aureo Ribeiro said.

    “With this asset you will be able to buy a house, a car, go to McDonald’s to buy a hamburger – it will be a currency in the country as it happened in other countries.”

    While the bill still must pass a vote, there appears to be widespread support and minimal remaining barriers to the bill’s passage.

  • Bank of America Coverage Pushes Bitcoin Past $50,000

    Bank of America Coverage Pushes Bitcoin Past $50,000

    In one of the biggest endorsements of cryptocurrency, Bank of America has initiated coverage of Bitcoin, driving its price past $50,000.

    Cryptocurrencies have been gaining traction and widespread acceptance, even as traditional finance and governments struggle to adapt. Bank of America is now acknowledging “digital assets are too large to ignore.”

    Bank of America says digital assets represent a $2 trillion+ market, compromised of more than 200 million users, and is poised to transform entire industries.

    “Bitcoin is important,” said Alkesh Shah, head of Global Cryptocurrency and Digital Asset Strategy, “but the digital asset ecosystem is so much more. Our research aims to explore the implications across industries including finance, technology, supply chains, social media and gaming.”

    “Digital assets are transforming the way in which markets, businesses and central banks operate,” said Candace Browning, head of BofA Global Research. “Bank of America offers a market-leading global payments platform and blockchain expertise, and the addition of digital asset research further strengthens the depth and breadth of our offerings for investors.”

    Bitcoin jumped past $50,000 on the news.

  • Fiserve CEO: From Large To Small There’s a Comeback In Payments

    Fiserve CEO: From Large To Small There’s a Comeback In Payments

    “It’s a great space a great and a great opportunity,” says Fiserv CEO Frank Bisignano. “You have to love the clients and you have to love the payment space. The opportunity to build things and grow is always a lot of fun. From large to small there’s a comeback in payments and we see growth going forward.”

    Fiserv, a major fintech player worldwide, had a strong earnings report in the second quarter with 129 percent growth in revenue.

    Frank Bisignano, CEO of Fiserv, discusses how their Clover acquisition will help the company power their growth going forward. Fiserv announced that they completed their $22 billion purchase First Data which included Clover on July 29:

    From Large To Small There’s a Comeback In Payments

    Clover is an unbelievable platform. It continues to grow. It serves small businesses. We think it’s integral. Our bank partners love it since we announced the deal. We have 160 new banks that want to be Clover partners with us. It is growing. We talked about a 32 percent growth rate in July in the heat of a pandemic. It’s a tool that we help businesses manage their business through. It’s a great asset to help small businesses. We see it as an integrated solution for our company.

    We’ve seen growth with Clover. We talked about seeing what we call internal revenue growth which is driven by transaction volume. We see transaction volume up and there is obviously a large move to e-com. If you look at our Clover platform which has order ahead capabilities and virtual terminal that’s driving that growth. From large to small there’s a comeback in payments and we see growth going forward. There are still businesses coming back in the recovery. Lots of businesses are still working their way back. We’re here to help small businesses grow.

    Fiserve CEO Frank Bisignano: From Large To Small There’s a Comeback In Payments
  • New Zealand May Launch Its Own Digital Currency

    New Zealand May Launch Its Own Digital Currency

    New Zealand is exploring the possibility of launching its own digital currency, the latest indication of how much such currencies are transforming the market.

    The rise of cryptocurrencies has sparked a major shift in the finance market. Many governments are still struggling to come to terms with — and adapt to — a currency that is designed to be decentralized and anonymous.

    El Salvador has chosen to adopt Bitcoin as legal tender, while other countries are exploring stablecoins, digital currencies that are linked to a country’s legal tender.

    According to Bloomberg, New Zealand is investigating the possibility of releasing its own digital currency, in an effort to keep current with modern trends.

    “Trends in cash use and innovation in money present an opportunity for the Reserve Bank to consider broadening central bank money to include a widely available digital form,” the RBNZ said Thursday. “The declining use, acceptance and availability of cash in New Zealand, and emerging innovations in private money, namely stablecoins, make this an opportune time to consider a central bank digital currency (CBDC).”

    The RBNZ highlighted some of the challenges involved in creating a successful digital currency.

    “As with other forms of digital money, a CBDC must be operationally resilient to outages and cyber security risks, maintain data privacy, and it would need to comply with all relevant regulation. Similarly, while a CBDC has the potential to act as a catalyst for innovation and competition in the wider money and payment ecosystem, we will have to consider the potential for it to crowd out innovation.”

  • Coinbase Now Supports Paycheck Deposit to Coinbase Accounts

    Coinbase Now Supports Paycheck Deposit to Coinbase Accounts

    Coinbase is making it easier to fund accounts, allowing users to deposit part of their paycheck directly into their accounts.

    Coinbase is one of the leading cryptocurrency trading platforms, and the company is continually working to make it easier for mainstream users to get started. The latest feature should appeal to new users, as well as veteran traders.

    The company is making it possible for users to deposit all or part of their paycheck, instead of manually funding their accounts.

    “Now, you’ll save time on the extra steps it takes to move money so you can immediately earn interest on your income or earn crypto rewards with your Coinbase Card,” writes Prakash Hariramani, Sr Director, Product. “Plus, you’ll pay zero transaction fees on direct deposit funds⁴ so you have instant and free access to the cryptoeconomy.”

    Coinbase emphasizes that users will have total control over the process.

    “Stay in control of your money by depositing as little or as much of your paycheck as you want,” Hariramani continues. “Get paid in any of the 100+ crypto available on Coinbase or in US Dollars. Choose to get paid in crypto so you can make recurring buys or earn interest on your income (by getting paid in USDC, DAI, or other interest-yielding assets), or choose to get paid in US Dollars to be ready for any trade or to spend with your Coinbase Card.”

  • China’s Cryptocurrency Crackdown Intensifies, All Transactions Banned

    China’s Cryptocurrency Crackdown Intensifies, All Transactions Banned

    China is intensifying its war on cryptocurrencies, banning all transactions, as well as all mining.

    China has traditionally accounted for the lion’s share of crypto mining, and especially bitcoin, but the government has been taking an increasingly dim view of the technology. Back in May, there was talk the government could eventually issue a total ban on crypto, 

    The Chinese government has followed through on those threats, banning all cryptocurrency transactions, as well as mining, on Friday.

    “This is really about establishing a state monopoly in payments,” George Selgin, an economist and senior fellow at the Cato Institute, told The Seattle Times. “The most obvious implication is that the state will have more opportunities to monitor citizens’ economic activity.”

    Bitcoin dropped as much as 7% on the news, before eventually recovering.

  • SEC’s Gensler Doesn’t Believe Cryptocurrencies Are Viable Long-Term

    SEC’s Gensler Doesn’t Believe Cryptocurrencies Are Viable Long-Term

    US Securities and Exchange Commission (SEC) Chairman Gary Gensler has cast further doubt on cryptocurrencies, saying he doesn’t believe they are viable long-term.

    Gensler has been working to establish the SEC as THE US regulatory authority for crypto. While some critics believe it’s an overreach, Gensler maintains that cryptocurrencies have much in common with securities.

    In a new interview with The Washington Post, Gensler throws more cold water on the cryptocurrency market, saying he doesn’t believe it has much of a long-term future.

    “History tells us that private forms of money don’t last long,” he said.

    Gensler has a more positive view of the blockchain technology behind cryptocurrencies, crediting Bitcoin creator Satoshi Nakamoto with innovating and creating a catalyst for change in the financial markets. When referring to Nakamoto, he even used the respectful term “Nakamoto-san,” and said the innovation he created is helping bolster payment systems with distributed ledgers and decentralized lending.

    Nonetheless, one thing is clear: If Gensler has his way, significant crypto regulation is on the horizon in the US. Gensler is a firm believer that the potential for things to go wrong warrants taking proactive measures to regulate the industry and head off potential issues.

    “I don’t think it’s a good idea to wait until there’s a spill in aisle three,” he said.

  • South Korea Poised to Ban App Store Payment Monopolies

    South Korea Poised to Ban App Store Payment Monopolies

    South Korea is poised to become the first country to ban Apple and Google from locking developers into the use of their payment systems.

    Apple and Google are both facing pressure over their respective app stores, and especially over the fact that they try to force developers to use their payment systems exclusively. Doing so ensures developers continue to pay the companies the 30% commission they charge for apps, in-app purchases and ongoing services. Both companies are facing lawsuits in the US, but South Korea is set to take even more drastic action.

    According to AFP, South Korea’s National Assembly is set to vote on a bill — the “Anti-Google Law” — that would force Apple and Google to allow users to choose which payment service to use when making purchases.

    “This law will certainly set a precedent for other countries, as well as app developers and content creators worldwide,” Kang Ki-hwan, Korea Mobile Internet Business Association, told AFP.

    If the bill passes, it will likely encourage countries around the world to take up similar measures.

  • Coinbase Abandons Lend Feature Amid SEC Pressure

    Coinbase Abandons Lend Feature Amid SEC Pressure

    Coinbase has abandoned its plans for its Lend service after a high-profile scuffle with the SEC.

    Coinbase announced its plans to roll out Lend, a program that would allow users to lend cryptocurrency to others and earn interest on the loan. The SEC took issue with the company’s plans and threatened legal action if it continued. This led Coinbase to engage in what was widely considered an “ill-advised” public war with the SEC, with CEO Brian Armstrong calling the agency’s behavior “sketchy.”

    The company has now notified customers via a blog post that it is canceling its Lend plans as a result of the SEC’s actions.

    Our goal is to create great products for our customers and to advance our mission to increase economic freedom in the world. As we continue our work to seek regulatory clarity for the crypto industry as a whole, we’ve made the difficult decision not to launch the USDC APY program announced below. We have also discontinued the waitlist for this program as we turn our work to what comes next. We had hundreds of thousands of customers from across the country sign up and we want to thank you all for your interest. We will not stop looking for ways to bring innovative, trusted programs and products to our customers.

  • Venmo Redesigns App to Remove Global Payments Feed

    Venmo Redesigns App to Remove Global Payments Feed

    Venmo has redesigned its app to remove the global payments feed, after a high-profile incident in which President Biden’s account was discovered.

    Venmo is the digital payment app owned by PayPal. A key component of Venmo’s popularity is its social component. Users can see each other’s transactions in a social media-style feed. In previous versions of the app, it was even possible to see the transactions of strangers in the global feed.

    Unfortunately for the company, it was extremely easy to find President Biden’s account, leading it to make changes. The new app redesign completely ditches the global feed.

    Venmo has always been social at its core, designed to be a place where friends can split and share payments and experiences. As part of our ongoing efforts to continually evolve the Venmo platform, while staying true to the heart of the Venmo experience, we are removing the global feed, and the friends feed is now the only social feed that will appear in the app. The Venmo community has grown to more than 70 million customers, so this change allows customers to connect and share meaningful moments and experiences with the people who matter most. 

    The move is a welcome one, as far as privacy advocates are concerned, and brings the app a little more into the mainstream.

  • Verizon and Mastercard Team Up to Apply 5G to the Payments Industry

    Verizon and Mastercard Team Up to Apply 5G to the Payments Industry

    Verizon and Mastercard are partnering to bring the benefits of 5G to the payments industry.

    5G stands poised to revolutionize numerous industries, not the least of which is the financial sector. Like most carriers, Verizon has been moving ahead at full-speed in its efforts to deploy its 5G network.

    The two companies plan to use 5G to help “drive transformational solutions for the global payments and commerce ecosystem.” The next-gen wireless technology will help revolutionize new areas of the commerce industry, including contactless payments and autonomous checkout.

    In particular, the two companies’ efforts will help advance the use of smartphones for making and accepting payments, providing touchless retail experiences, VR/AR shopping and creating new ways to consume digital content.

    “Business needs and consumer demands constantly fluctuate. Critical components of long-term success are the ability to remain agile and align with strategic financial and payments partners that have the tools and capabilities to drive industries forward,” said Sampath Sowmyanarayan, CRO, Verizon Business. “Coupling Verizon’s leading global IP network and transformative 5G technology with Mastercard’s deep industry expertise, leading services and solutions, and a strong commitment to innovate, is a partnership that aligns perfectly with what we are striving to achieve at Verizon and one that can create game-changing solutions.”

  • Fact Check: Walmart Is NOT Partnering With Litecoin

    Fact Check: Walmart Is NOT Partnering With Litecoin

    Walmart and Litecoin are both debunking news of a partnership, saying nothing is in the works.

    Early Monday, September 13, a notice went out on Global NewsWire claiming that Walmart was partnering with cryptocurrency Litecoin. Not surprisingly, Litecoin’s price surged on the news. The only problem — the news was fake.

    Walmart, Litecoin and Global NewWire have all denounced the initial press release as fake news.

    Walmart’s said it had no knowledge of the press release in a statement:

    Walmart was the subject of a fake news release issued on Monday, Sept. 13, that falsely stated Walmart announced a partnership with Litecoin (LTC). Walmart had no knowledge of the press release issued by GlobeNewswire, and it is incorrect. Walmart has no relationship with Litecoin. 

    Litecoin said the statement, as well quotes attributed to creator Charlie Lee, were false:

    A fake press release, which looked to be official, was sent out this morning across Global NewsWire. It is not our policy to release a partnership in this way. Regarding the quotes within the article itself, these too are fabricated and did not come from Charlie Lee, the creator of Litecoin and Managing Director of the Litecoin Foundation.

    Global NewsWire asked all journalists and readers to disregard the initial press release:

    Please be advised that journalists and other readers should disregard the news release, “Walmart Announces Major Partnership With Litecoin (LTC)” issued September 13, 2021, over GlobeNewswire.

    It is true that Walmart is working on something related to cryptocurrency, as the company recently posted a job opening for a Cryptocurrency Lead. Whatever those plans are, however, they don’t appear to involve Litecoin.

  • Mastercard Buys CipherTrace to Boost Its Own Crypto Capabilities

    Mastercard Buys CipherTrace to Boost Its Own Crypto Capabilities

    Mastercard announced it has acquired CipherTrace, as the payments company continues to expand its crypto capabilities.

    Cryptocurrency is quickly going mainstream, with companies large and small supporting the technology. That adoption is extending to traditional finance and payments companies, such as Mastercard.

    CipherTrace is a crypto intelligence company with a focus on the intersection between consumer privacy and the blockchain economy. Mastercard sees the company as a valuable element in creating an atmosphere of trust and security in the realm of cryptocurrencies and digital assets.

    “Digital assets have the potential to reimagine commerce, from everyday acts like paying and getting paid to transforming economies, making them more inclusive and efficient,” said Ajay Bhalla, president, Cyber & Intelligence at Mastercard. “With the rapid growth of the digital asset ecosystem comes the need to ensure it is trusted and safe. Our aim is to build upon the complementary capabilities of Mastercard and CipherTrace to do just this.” 

    “We help companies – whether they are banks or cryptocurrency exchanges, government regulators or law enforcement to keep the crypto economy safe,” said Dave Jevans, CEO, CipherTrace. “Our two companies share this vision to provide security and trust throughout the ecosystem. We are thrilled to join the Mastercard family to scale CipherTrace’s reach across the globe.” 

    Terms of the deal were not disclosed, although it is expected to close by the end of the year.

  • Coinbase Getting Into ‘Ill-Advised’ War With SEC

    Coinbase is calling out the SEC for what it believes is “sketchy” behavior, but TheStreet’s Jim Cramer is not a fan of its strategy.

    The issue involves Coinbase’s crypto lending program, called Lend. The service would allow individuals to lend their crypto assets and earn interest on the loans. Unfortunately, for Coinbase, the SEC seems to have an issue with Lend and has sent the company a Wells Notice.

    “Last Wednesday, after months of effort by Coinbase to engage productively, the SEC gave us what’s called a Wells notice about our planned Coinbase Lend program,” writes Paul Grewal, Chief Legal Officer, on the company’s blog. “A Wells notice is the official way a regulator tells a company that it intends to sue the company in court. As surprised as we were at the SEC’s threat to sue without ever telling us why, we want to be transparent with you about the course of events leading up to it.”

    CEO Brian Armstrong has gone even further, calling the SEC’s behavior “sketchy.”

    TheStreet’s Jim Cramer believes Armstrong and Coinbase are playing a dangerous game, especially since SEC chair Gary Gensler “taught crypto at MIT,” and has the full weight of a government agency backing him up on his already knowledgable position.

    “[Coinbase] is declaring war against a man who has unlimited firepower,” Cramer said.

  • Reddit’s WallStreetBets Schools Wall Street

    Reddit’s WallStreetBets Schools Wall Street

    Wall Street may be the “experts” in the stock market, but analysts are increasingly looking to Reddit’s WallStreetBets for info.

    Reddit’s WallStreetBets upended the stock market when individual traders rallied around stocks that mainstream Wall Street institutions were shorting. GameStop, Blackberry, AMC and Bed and Bath and Beyond saw massive gains after they were shorted, ultimately costingWall Street tens of billions.

    It appears Wall Street has taken notice, and is now looking to WallStreetBets, and other social media platforms, for tips and info, according to The Wall Street Journal. Firms like Goldman Sachs and Morgan Stanley have employees on Reddit, Discord and Twitter, looking for the next big trading phenomenon.

    “It’s more art than science because it’s uncharted territory,” Simeon Siegel, a BMO Capital Markets analyst, told WSJ.

    It’s an amazing turn of events and proves just how much platforms like Robinhood, along with social media, have democratized investing.