by Samuel Mbaki | Jun 9, 2023 | Technology
Key Points
- Bipartisan bills targeting government AI usage have been tabled by U.S. senators.
- One of the bills seeks to form a new office of Global Competition Analysis aimed at helping the U.S. maintain its lead in innovation.
U.S. senators seek to bring transparency and innovation to America via AI
U.S. Senators have introduced a bipartisan bill to increase the transparency behind AI usage and foster innovation. The first bill was tabled on June 8 by Democratic Senator Gary Peters and Republican Senators Mike Braun and James Linkford.
Their bill requires the government to be transparent about how it uses Artificial Intelligence (AI). If passed, governmental organizations would be required to give an account of when and how it interacts with AI to the public, along with a system of appeal for citizens to engage in decisions made using Artificial Intelligence.
Regarding the bill, Senator Mike Braun stated:
“The federal government needs to be proactive and transparent with AI utilization and ensure that decisions aren’t being made without humans in the driver’s seat.”
The second bill was introduced by Democratic Senators Michael Bennet and Mike Warner alongside Republican Senator Young Todd. This bill seeks to establish an office of Global Competition analysis. This new office will be helpful for the U.S. to keep ahead of the curve with emerging technologies and innovation.
It comes at a time when the general public is concerned about the efforts to help the country maintain its lead in innovation basis. Regarding the bill, Senator Michael Bennet said:
“We cannot afford to lose our competitive edge in strategic technologies like semiconductors, quantum computing, and artificial intelligence to competitors like China.“
These bills come after Senate Majority Leader Chuck Schumer called for three briefings to educate lawmakers on Artificial Intelligence (AI) matters. These efforts by U.S. Senators come when the world is trying hard to advance in the industry, thus making them strategic.
Earlier this week, the U.K. stressed the need for stricter AI regulations, which would typically be at the same grade as nuclear weaponry and Medicine. Elsewhere, major governments like China and Russia have kept their cool on the matter, but that doesn’t mean they couldn’t be researching it.
by Samuel Mbaki | Jun 9, 2023 | Banking
Key Points
- The Swiss government has reached a pact with UBS over their protection amid the collapsed Credit Suisse bank takeover.
- The pact will come to effect as soon as the takeover is completed.
UBS and Swiss government reach an agreement over Credit Suisse take over
UBS and Swiss government have agreed to protect the investors amid the takeover of the collapsed banking giant Credit Suisse. The two announced on June 9, 2023, that they reached an agreement, which will take effect once the takeover of Credit Suisse is completed.
UBS and Swiss government deal will see the Swiss government cover up to 9 billion Swiss francs ($10B) following UBS’s acquisition of Credit Suisse.
“As part of the agreement, the Swiss government guarantees losses of up to CHF 9bn if realized on a designated portfolio of Credit Suisse non-core assets once UBS bears the first CHF 5bn of any realized losses,” UBS said in a statement.
They went ahead to say that they will manage the assets previously owned by Credit Suisse diligently to minimize losses which maximize value realization on them. Credit Suisse’s acquisition is expected to be completed as early as June 12 per UBS.
Developing story. Keep watching Fintech Express for updates as soon as they happen.
by Samuel Mbaki | Jun 9, 2023 | Regulation
Key Points
- Binance.US to suspend deposits and withdrawals in USD as banking partners sever ties with them.
- Binance CEO CZ has clarified that Binance.US deposits have never mixed with the funds in the international exchange.
- SEC seeks a restraining order to freeze Binance.US funds to prevent asset flight
Banks are severing ties with Binance.US after SEC charges
More pain for Binance.US customers as banks have decided to move away from the exchange in light of the SEC court battle. They have withdrawn their services of powering the Binance USD fiat ramp, making it impossible to withdraw or deposit USD to the exchange anymore.
Following the developments, Binance.US has announced that it will suspend the deposit and withdrawal of funds from the exchange via USD on June 13, 2023. The exchange is in a court battle with the Securities and Exchange Commission after the regulator filed 13 charges against it on June 5, alleging that it was operating as an unlicensed securities broker.
The SEC is particularly interested in the bank transactions of Binance and Binance.US, where it believes that the exchanges and their founder Changpeng Zhao were violating U.S. securities laws. SEC alleges that Zhao’s influence over the two exchanges has led to the movement of billions between them, attracting their interest. However, Binance CEO, CZ does not accept the allegation clarifying that funds from the two exchanges were never mixed.
The SEC has now filed a motion to grant a restraining order against Binance.US, alleging that the exchange could be used to transfer U.S. customer deposits offshore. While this motion has yet to be granted, the withdrawal of banking institutions from the exchange has led to the immediate need for the closure of the USD fiat ramp as the exchange no longer has a way to serve the demands of its U.S. customers.
However, customer deposits won’t be lost even if they are late in transferring their money. They can still convert it to assets like tether stablecoin and transfer it to other exchanges or crypto wallets. Keep watching Fintech Express for updates on crypto regulation and other Fintech-related stories.
by Samuel Mbaki | Jun 8, 2023 | Banking
Key Points
- Eurozone records two consecutive quarters of negative GDP growth.
- More pain for Brits as Eurozone starts a recession while inflation rates are high; BoE may continue hiking rates.
- Higher costs of living are expected among Eurozone residents.
Financial crisis bites harder on Brits as Eurozone enters recession amid high inflation rates
Eurozone has plunged into a recession sending negative waves through the market. Brits will have to tighten their belts for tougher economic times ahead. The region has been experiencing one of the highest inflation rates this year among the strongest economies hitting over 10% and sustaining for a long time.
The Bank of England has been working hard to combat the rising inflation rates by raising interest rates. Though this has proved effective, they still need to reach the target 2% inflation rate target for ending 2023. This target seems out of reach as time passes, as the hike in interest rates in an already shaken economy has contributed to reversed economic growth.
Market data shows that Eurozone has had two consecutive quarters of reversed GDP growth. The region’s economy shrank by 0.1% in Q1 2023, a similar growth to the final quarter of 2022. That marks the start of a technical recession. The news comes to an already shaken European Stocks Market that is marked to cuts its profitability by almost 50% by the end of the year.
The one currency zone follows Germany into slipping into a recession though the country is fighting to get out of it. Brits will have to tighten themselves more as experts predict a further shrinking of the GDP. Also, the Bank of England needs to find a way to pause rate hikes to avoid embedding the inflation rates.
Keep watching Fintech Express for updates on Macro finance and other Fintech-related developments.
by Samuel Mbaki | Jun 8, 2023 | Blockchain
Key Points
- Polygon Labs President has testified to the United States House of Representatives Energy and Commerce Committee’s Subcommittee on Innovation, Data, and Commerce on blockchain technology and how its infrastructure could impact the U.S.
- The committee has been listening to regulators and crypto executives testify regarding the potential of the crypto and blockchain industry regarding a bill presented for crypto regulation.
U.S. House Committee records Polygon Labs President remarks on the crypto industry
Polygon Labs President Ryan Wyatt gave his testimony on the crypto industry to the committee on June 7. The meeting was held regarding a crypto regulation bill that has been presented and seeks to harmonize the efforts toward crypto regulation in the country. The Polygon Labs President is one of several crypto executives who are discussing the non-finance-related impacts of blockchain technology with the committee.
The testimonials session comes at a time when the U.S. SEC is going after crypto exchanges and entities hard without the existence of a binding crypto regulatory framework. The regulator has been in the spotlight after charging Binance.US on June 5 and Coinbase the next day.
Coinbase alleges that it had cleared with the SEC before it began operations and tried to register some of its products later on, only for the regulator to severely stonewall its efforts. The regulator is now suing them for not ‘registering’ their securities with them.
However, such happenings may end sooner than later with the new bill in Congress. In his testimony, Wyatt discussed the potential of blockchain technology and its value to users and revamping the internet infrastructure in the United States. He addressed the problem that blockchain technology solves: value extraction on the internet.
Wyatt said that the current Web 2 internet iteration, where companies extract value from the users, will be best left behind as Web 3 allows users to enjoy their value and own their data. He explained how using cryptography and decentralization could solve most internet users’ issues.
He touched on the current regulatory turmoils asking the U.S. lawmakers to do more as the innovation may slip out of their hands. In his words, Waytt said:
“When regulation does not meet novel technology where it is, the U.S. loses its competitive edge over other countries.”
He topped off his argument by explaining how building blockchain ecosystems in the United States of America would benefit economic growth and inclusion. He explained that the transparency that comes with blockchains would streamline productivity and supply chain management, making every dollar count for its value.
Keep watching Fintech Express for updates on crypto regulation and other FinTech-related developments.
