by Samuel Mbaki | Jul 12, 2023 | Uncategorized
Key Points
- The Peoples Bank of China (PBOC) has started trials for their digital Yuan on offline payments.
- The offline payments program will involve the use of SIM Cards.
Peoples Bank of China has started trials for its plans to allow users to make phone payments using the new digital Yuan without internet connectivity. One of the key parts of the plan is integrating the e-CNY app with specialized SIM cards with near-field communication capabilities.
Peoples Bank of China heads trials on settling offline digital yuan payments via sim cards
The e-CNY was launched in 2022 and has struggled to gain usage. However, the Peoples Bank of China is still working on it as it has already gained widespread usage, though slowly. Instead, it is increasing its efforts to make it more user-friendly and accessible.
It announced on July 10 that it has partnered with China Telecom and China Unicom, a major telecommunications operator in the country, to commence trials on offline SIM card-powered e-CNY money transfers.
The People’s Bank of China plans to allow users to easily access the digital Yuan and use it anywhere without many obstacles. In the social post, the bank said
“On July 11, Peoples Bank of China, China Telecom, and China Unicom will jointly launch SIM card hard wallet products on the digital renminbi APP, realizing another innovative achievement in the cross border of finance and communication and providing more universal and convenient payment for digital renminbi applications way and experience.”
The post also added that the product would be launched soon in some pilot areas, and invited users could experience it. It added that at the pilot testing phase, only Andorid-powered phones with NFC function would support the new SIM card hard wallets.
Keep watching Fintech Express for more updates on this and other fintech-related developments.
by Samuel Mbaki | Jul 12, 2023 | Cryptocurrencies
Key Points
- Tether has minted another billion USDT coins on Tron Network to satisfy chain swap demands.
- USDT has increased its market value by $2.6 billion in 90 days, while USDC lost its market value by $4.6 billion
- USDT now has a stablecoin market dominance of 65%
As demand rises, Tether USDT has increased its market value by $2.6 billion. As a result, Tether has minted 1 billion more coins on Tron Network to satisfy the blockchain’s USDT chain swap demands.
Tether USDT market value rises by $2.6B in 90 days, achieving a 65% market dominance
Tether has minted a new 1 billion USDT coins on the Tron Network, a month after minting another equivalent amount on the Ethereum network. The stablecoin company claims that the new coins facilitate chain swaps and usually do not mix with the issued market capitalization.
The minted amount will be spent as inventory for the next period of issuance requests and chain swaps on the Tron Network. A chain swap is a process where traders transfer assets from one blockchain to another. For instance, you can swap USDT from Tron Network to BNB Chain network.
This development comes as Tether USDT gains more stablecoin market dominance to 65% while the second largest stablecoin by market cap is losing its demand. Tether’s USDT gained $2.6B in market cap over the past 90 days, while Circle’s USDC lost $4.6 B in the same period.
In the news, Tether is also increasing its footprint in crypto investments. As such, it’s setting up its USDT coin for adoption even more. However, it still hasn’t received total trust from the crypto industry following a series of crypto collapses less than a year ago.
Keep watching Fintech Express for more updates on this and either fintech-related developments.
by Samuel Mbaki | Jul 11, 2023 | Finance
Key Points
- The housing sector in the U.K. has been heavily impacted as interest rates hike pushes mortgages to multi-year record highs.
- More pain is expected as the inflation rates in the country are still high and need more action from the Bank of England.
- The average level of the two-year fixed deal stands at 6.66%
Mortgage rates are spiking in Britain following tough economic times and decisions from the European Central Bank and the Bank of England. The country has been experiencing record-high inflation rates that have necessitated the introduction of higher bank rates, which have raised living costs.
Mortgage rates are expected to rise further in the U.K.
More pain is expected in the British housing markets after mortgage rates have skyrocketed despite inflation remaining malignantly high. The Bank of England is expected to keep hiking interest rates to avoid embedding inflation.
A key mortgage rate went up on July 11, showing that the 2-year fixed deal now stands at 6.66% per figures provided by Moneyfacts. This increase marks a 15-year high record of the specific housing mortgage deal. It had hit a closer 6.65% increase in October 2022 following the defunding of tax cuts in the mortgage market.
In the same report, the 5-year mortgage rate rose to 6.17%, a marginal increase from the past days but still lower than the 6.51% level reached in October 2022. These mortgage rates are expected to rise even further following the need for more interest rate hikes from BoE.
Britain’s economic outlook becomes worse than previously expected
Britain had expected its inflation rates to fall below 2% by the end of the year, a target that keeps getting shadowed each day the deadline approaches. It seems increasingly unlikely that the Bank of England will hit this target without pushing the economy into a recession.
Figures from earlier today show that wage rates are spiking in the country, and a housing sector meltdown is imminent. These are signs of a deteriorating economy. And sadly, there are still no signs of the British economy hitting a turnaround soon. Therefore investors should brace for impact and choose less risky investment options in the country.
Keep watching Fintech Express for more updates on this and other fintech-related developments.
by Samuel Mbaki | Jul 11, 2023 | Finance
Key points
- 10-year treasury yields traded lower at 3.962% on Tuesday
- The 2-year treasury yield was down by more than two basis points to 4.837%
US treasury yields have fallen as investors await key economic data that could impact the Federal Reserve monetary policies.
US treasury yields fall as investors weigh Federal Reserve monetary policy
Investors on Tuesday pushed the US Treasury Yields down as they anticipate the release of June CPI data, which is set to be released on July 12 at 8:30 Eastern time.
At 3:51 a.m. ET, the yield on the 10-year Treasury traded over four basis points lower at 3.9621%. The 2-year Treasury yield fell by over two basis points to 4.8367%.
Investors are wary of further interest rates hike that Fed chair Jerome Powell has indicated could be necessary. The Federal Reserve is expected to post two more interest rates hikes. Investors are also on the lookout for other key economic data expected this week, like the wholesale inflation coming n July 13, 2023.
Keep watching Fintech Express for more finance and fintech-related developments.
by Samuel Mbaki | Jul 11, 2023 | Regulation
Key Points
- UK FCA and other enforcement agencies have investigated 26 crypto ATMs and shut them down.
- The shutdown was conducted as per the Money Laundering Regulations that were set in place in 2017
UK FCA has joined a growing group of hawkish regulators after spearheading multiple crypto crackdowns. Now, it has ordered the shutdown of 26 crypto ATMs that have worked against set rules.
UK FCA intensifies crypto crackdowns
The report on UK FCA cracking down on crypto ATMs comes at a time when global crypto regulation efforts are intensifying. The regulator worked hand in hand with others to visit and inspect 34 crypto ATMs in 2023, an exercise that concluded with the shutdown of 26 of the inspected ATMs.
The UK FCA had given an ultimatum to all crypto ATMs in February, requiring them to follow the set regulations or wind down their operations. Regarding the development, Steve Smart, the joint executive director of enforcement and market oversight at the UK FCA, said:
“If you use a crypto ATM in the U.K., you are using a machine operating illegally and may be handing your money over to criminals.”
He added that the U.K. government would not protect victims of the scams associated with such ATMs.
This development comes when other regulators like the US SEC intensify their efforts and oversight over the crypto space. The US SEC has a record-high budget to help it ‘streamline’ the industry. It is already in significant crypto court battles, with its targets Ripple, Binance, and Coinbase.
The US SEC claims that the crypto industry operates in incompliance and thus needs enforcement to be put in check. This sentiment appears to be shared by the UK FCA, which has been going hard after crypto operations land advertising in the U.K. However, the two regulators are different in that the U.K. expects its first comprehensive crypto regulatory framework, MiCA, to go live in December 2024, while the U.S. doesn’t.
Keep watching Fintech Express for more updates on this and other fintech-related developments.
