by admin | Jul 3, 2023 | Technology
Key Points
- The European Union is going to strike a cooperation deal with Japan in a bid to further the plans on de-risking from China.
- E.U. Commissioner Thierry Breton is meeting with representatives of the Japanese government to discuss A.I. and computer microchips
The European Union (E.U.) is pushing its plans to de-risk China’s global supply chain by onboarding Japan as a partner in A.I. and microchip developments. E.U. Commissioner Thierry Breton confirmed these developments on Twitter, revealing his July 3rd meeting with the Japanese government
E.U. seeks out Japan as China’s replacement in A.I. and Chips markets
On Sunday, Breton posted a video on Twitter saying that today’s meeting with the Japanese government would weigh more on cooperation with the E.U. for Artificial Intelligence and micro-chips industries.
“I will engage with [the] Japanese government … on how we can organize our digital space, including A.I. based on our shared value,” Breton said
He also added that an EU-Japan Digital Partnership council would discuss areas like quantum computing. The European Union has been increasing efforts on this front as it even had a similar meeting with South Korea last week, which saw the two sides agreeing on cooperating on technologies like A.I. and cybersecurity.
In an interview with Reuters, he explained that the E.U. and Japan would cooperate in the semi-conductors field. He stated that Japan is a key country in the semiconductor supply chain and has been looking for new partnerships, which makes it a great fit with the bloc. The E.U. has also been looking to strengthen its semi-conductors industry as they are vital in all hardware-reliant technologies.
At the same time, the U.S. has been increasing efforts to cut off its reliance on China‘s global supply chains, like semiconductors. It is also convincing its allies to join its course of action. Keep watching Fintech Express for more updates on this and other FinTech-related developments.
by admin | Jun 28, 2023 | Cryptocurrencies
Key Points
- MicroStrategy boss Michael Saylor has announced a new acquisition of Bitcoins by the company.
- The company now holds the most coins for an institution, 152,333, after acquiring 12,333 new coins at an average price of $28,136.
MicroStrategy has pushed its limits in Bitcoin acquisition after buying $347M worth of Bitcoins at an average cost of $28,136 per coin. The institution now holds 152,333 coins worth around $4.52 billion, acquired at an average cost of $29,668 per Bitcoin.
MicroStrategy fills its Bitcoin bags yet again, is institutional demand spiking?
Michael Saylor is an outspoken Bitcoin Maximalist who has been pushing people to adopt the coin. He has been speaking on social media and live events about how the coin could support innovation quoting its ever-growing use cases and how it could help deal with most of the digital problems that have been an issue in the world.
He recently stepped down from being the CEO of MicroStrategy, a move that many said could result from his multi-billion Bitcoin acquisition project. However, he came out to debunk the theory saying that he stepped down to have time to focus more on the investment and monitor it more closely.
Now, the company has added $347 million worth of bitcoins taking the whole sum to over $4 billion. The investment is already in profits as it was acquired at an average price of $29,668 per coin, while the coin is trading at $30,275. Bitcoin is expected to keep rising as institutional demand is set to increase.
Blackrock, Fidelity, and other Traditional Finance institutions are swooping in to introduce Bitcoin ETFs, which will most likely kickstart a soft mainstream adoption of the coin. As a result, the price of the coins is set to spike over the long term. However, market conditions could change as nothing is promised.
Keep watching Fintech Express for more updates on crypto and other fintech-related developments.
by admin | Jun 22, 2023 | Finance
Key Points
- Gemini’s Cameron Winklevoss believes that the race by traditional finance institutions to file for BTC ETF marks a great turnaround for the industry.
- He tweeted on June 21 that the window to front-run institutional demand is closing quickly.
Cameron Winklevoss, a Gemini co-founder, believes that the great accumulation for BTC is here with different TradFi institutions racing to buy in. His comments come when BlackRock, the world’s largest investment manager, filed for an ETF, prompting its competitors to follow suit.
ETF filing race by TradFi institutions convinces Cameron Winklevoss that BTC will rally
Analysts now believe that more than ever, more institutional demand for prominent coins like Bitcoin is coming to the crypto space. It follows recent news that BlackRock had filed for a spot in Bitcoin ETF.
As a result, its competitors like Valkyrie, Wisdom Tree, and Fidelity have filed for similar assets with the US SEC. This has driven the demand behind Bitcoin momentarily, with it reclaiming the 50% market dominance. The coin has surged 19% to $30,240 since the BlackRock news came to light on June 15.
Cameron Winklevoss, a Gemini co-founder and a prominent loud voice in the crypto industry, has commented on this matter, saying that “The Great Accumulation” of Bitcoin has begun. He suggested that buying Bitcoin before the ETFs hit the markets would be a great idea akin to a pre-initial public offering purchase of Bitcoin.
He added that if Bitcoin was the best-performing asset of the past decade, it would most likely be the best-performing asset for the coming decade. Others have backed his claims, including MicroStrategy Executive Chairman Michael Saylor, who suggests that retail investors may soon be pushed aside by increasing institutional demand.
However, some analysts believe that more buying pressure will be there than selling pressure, as most investors wouldn’t want to sell their coins to Wall Street. Bitcoin investor Anthony Pompliano took to Twitter to address the matter, saying he expects a tug-of-war between retail investors and Wall Street:
“We have institutions and individuals scrambling to try to get their share of the 21 million Bitcoin that will ever be in existence. The retail investor for 15 years now has a head start and has accumulated all the Bitcoin that’s been mined and put into circulation, but 68% of that hasn’t moved in a year.”
He added that he expects Bitcoin to be highly illiquid once Wall Street hits the market as investors keep their coins away from institutional investors. Keep watching Fintech Express for updates on crypto adoption and other Fintech-related developments.
by admin | Jun 14, 2023 | Banking
Key Points
- ‘Official’ plans for a U.S. digital dollar still not introduced as research remains underway.
- Treasury’s Graham Steele expresses concerns about the validity of a CBDC in the U.S.
- Steele is concerned that a CBDC could trigger a bank run as people rush to withdraw their currencies from banks.
A digital dollar is still not sitting well with treasury Official Graham Steele on worries that it could very well trigger bank runs. Steele thinks that the in-research digital dollar could encourage further withdrawals from banks, weakening an already shaken system.
A digital dollar could be a thorn in the banking system.
While talking at a payments conference in Austin, Texas, on June 13, 2023, Graham Steele said that the U.S. has not yet decided on whether to pursue a central bank digital currency. However, an interagency working group is already in place that is researching the implications of such a currency.
He expressed his thoughts, saying that a retail CBDC will drive out further deposits from banks instead of a wholesale CBDC that is only available to institutional investors. The retail CBDC would allow individuals and businesses to conduct normal day-to-day activities, gradually replacing the common notes and coins.
In his words, Steele said
“A retail CBDC could contribute to a more competitive and innovative payment system; support financial inclusion; and help preserve the face value redemption of the currency. ” He added, “There were caveats: design decisions — such as the range of intermediaries acting as CBDC service providers — would impact those potential effects.”
Steele noted how we had seen banks such as Silicon Valley Bank and First Republic fall due to increased withdrawals than the available deposits. He said that other banks could follow if a retail CBDC gets offered and investors seize the opportunity to hold their money digitally.
“As we have seen in the recent episodes of banking turmoil, a combination of technology, highly concentrated depositor base, and access to non-deposit alternatives outside of the banking system may have changed the nature and speed of bank runs,”
“With the technology enabling the movement of deposits only getting faster, there could be additional risks associated with the introduction of CBDC.”
But a digital dollar is already in the works, Steele?
A digital dollar is not new in the U.S. as it has had a green light to be researched and explored. Last March, President Biden signed an executive order encouraging Federal Reserve to explore a digital dollar that abides by national interests.
In November 2022, information surfaced that nine major banks were working hand in hand with the Federal Reserve Bank of New York to test the feasibility of a digital dollar. The CBDC would be based on distributed ledger technology.
The banks involved in the pilot phase of the digital dollar include Citibank, Wells Fargo, Mastercard, PNC Bank, T.D. Bank, Truist, BNY Mellon, HSBC, Wells Fargo, and U.S. Bank.
The U.S. digital dollar will be in the form of tokens like what is happening in the crypto industry, only that it will be settled and simulated via Central Bank Reserves on a shared multi-entity distributed ledger. Keep watching Fintech Express for more updates on Finance, Banking, and other Fintech-related developments.
by admin | Jun 12, 2023 | Regulation
Key Points
- Democratic leaders in the United States seem to be forming a fight against crypto
- Winklevoss twins believe that the move by these lawmakers might see them losing critical votes in 2024
- The crypto community keeps feeling undermined in the U.S. and is weighing its options
Winklevoss twins believe that Democrats are on track to miss out on crypto votes
Winklevoss twins believe that Democrats are on the wrong side of crypto regulation, which may make them lose key votes in 2024. The two crypto investors believe that the ongoing ‘crypto crackdowns’ and open show of dissatisfaction with crypto innovations led by Democrats might make many voters favor their opponents.
One of the Winklevoss twins, Cameron, tweeted on June 11 calling out Senator Elizabeth Wallet for her continued pressure to call for an ‘army’ to rise against crypto. He quoted an article from CNN that states, “Democrats would have gotten crushed this election without young voters.”
In his claims, Cameron says that young voters are most likely involved or interested in the crypto innovation, which makes it a poor choice for Democrats to go to war with the industry. Cameron said that Warren and Gary Gensler going after crypto with prejudice would align an entire generation of would-be Democrats.
Soon after, his twin Tyler tweeted that Warren and Gary Gensler would cost Democrats their positions in 2024.
These tweets by the Winklevoss twins come at a time when SEC’s Gary Gensler says he does not think the U.S. needs any more crypto assets. He added that he believes crypto is built on non-compliance, saying it doesn’t want to comply with set rules like securities laws.
His comments come when he seeks to give the SEC control over 60+ crypto assets claiming they are securities. The regulators are already suing Binance and Coinbase regarding trading assets in its 60+ list in the U.S. without its clearance. It also has a court battle going on with Ripple over XRP.
These efforts by the SEC to make the market ‘safer’ for American investors have been received by a rather unhappy crypto industry. Some people call for the community to pull efforts and challenge the regulator in court, while others warn of companies leaving the U.S., which is already happening with Bittrex and Coinbase looking for offshore crypto-friendly destinations.
As such, crypto is expected to be a major weighing point in the upcoming 2024 elections, making it necessary for Democrats to switch sides per Winklevoss twins. Keep watching Fintech Express for updates on crypto regulation and other fintech-related news and developments.
