by Samuel Mbaki | May 4, 2023 | Finance
European Markets are trading lower this Thursday as new bank rate decisions are being waited for from the European Central Bank. The market reacts this way as investors digest the latest rates hike by the U.S. Federal Reserve on May 3 2023, by 25 bps.
European Markets react to U.S. latest rates hike
The ECB is widely expected to raise its interest rates yet again as it attempts to tame the inflation rates that are running wild. Most market watchers expect a similar hike with the U.S. Federal Reserve of 25 basis points, though a bigger hike may also be ruled out.
The new rates decision is set to be published at 1.15 p.m. London time, with ECB President Christin Lagarde giving a statement shortly after. The markets seem wary of a major hike, as the U.S. got one yesterday. The federal funds rate ranges from 5% to 5.25%, the highest range since August 2007.
However, the Fed has hinted at a rate hike pause. In its post-meeting statement, the Fed said that its committee anticipates that some additional policy firming would be appropriate for it to hit its 2% inflation goal.
This means it may pause or pivot rate hikes fueled further by the U.S. bank’s collapse. Keep watching Fintech Express for more updates on Finance and banking stories.
by Samuel Mbaki | May 3, 2023 | Blockchain
Solana finally revealed the SAGA phone in Mid-April after being waited for by crypto enthusiasts for long. The device is designed to be seamless in making transactions and will allow customers from select regions to order it beginning May 8
First Web 3 smartphone?
Solana has introduced the SAGA smartphone to the world, with customers from the U.S., E.U., U.K., Canada, Switzerland, Australia, and New Zealand to be allowed to order it beginning May 8.
The device retails at $1000 and runs on Android software. Since Google and Apple stores enforce strict regulations around their payment systems, which affects many Web 3 applications, Solana decided to step in to prevent compromises being made by the applications, which may, in turn, inhibit the full potential of the Web 3 solutions.
One example of the inhibition affecting Web 3 applications is the Uniswap app. This application was stuck in the Apple Store publishing process for over a month to ‘comply’ with the set standards. Now, Solana’s SAGA steps in here. It will have a separate app store designed to allow for the publishing of Web 3 applications without much struggle.
Is Solana giving Web 3 enthusiasts crypto’s smart security tech?
Yes, they are going to get a taste of their tech. The phone is packed with multiple security protocols and solutions employed in the crypto industry. Once users acquire their Solana Saga Phone, they will be prompted to connect their Web3 wallets or create a new one integrated into the device.
The selected wallet will then be used to conduct the transactions securely. The inbuilt wallet is secured in a separate layer from the Android operating system. The phone also has an element processor, meaning that the wallet is encrypted, so the device administration systems cannot decrypt it without the owner’s engagement.
The mobile device will feature 16 Dapps ready for downloading from the Solana App Store during the first launch phase. These apps include Audius, Dialect, Jupiter Aggregator, Ledger, Magic Eden, Marinade, Squads, and others.
The phone will also allow its buyers to claim a SAGA NFT token once they are done setting it up. The first few users will also receive a welcome package featuring crypto assets and sticker packs. Keep watching Fintech Express for updates on the progress of the SAGA phone in the markets and other Web 3-related stories.
by Samuel Mbaki | May 3, 2023 | Banking
Bitcoin bull and former Coinbase CTO Balaji Srinivasan has released a statement on Twitter claiming that the US actively ignores looming financial meltdowns. He also said that he is still optimistic about Bitcoin hitting the $1M tag but in 90 months now rather than 90 days.
Balaji concedes that Bitcoin won’t hit $1M in 90 days and is not happy with US economic meltdown
Bitcoin enthusiast Balaji has confirmed that the famous bet that Bitcoin would hit a $1M price tag within 90 days is officially closed out by mutual agreement. He made this statement via Twitter, saying that he conceded the possibility of that happening and has fully paid the bet amount and exceeded it by 50%.
Balaji said that he paid the amount in provable on-chain donations as follows:
1) $500k to Bitcoin Core development via Chaincode: http://bit.ly/core500k
2) $500k to Give Directly: http://bit.ly/gived500k
3) $500k to Medlock: http://bit.ly/med500k
In his Twitter statement, he said that he honored the bet because he believes in the public good but is disappointed that it’s not feasible to rely on the public sector anymore for alarms when something needs to be fixed.
He claimed that Treasury’s Janet Yellen knew the 2008 financial meltdown was coming but didn’t bother telling anyone. He said that Yellen claimed the economy would face a mild recession only for a global collapse to happen 158 days later.
An excerpt from his tweet read:
“So I spent my money to send a provably costly signal that there’s something wrong with the economy and that it’s not going to be a “soft landing” like Powell promises — but something much worse.”
He added links to articles covering the 2008 financial meltdown and a video asking people to gather information and figure out if we are indeed headed for soft economic turbulence.
[1]: https://archive.is/CMsIM
[2]: https://archive.is/N9ETF
[3]: https://archive.is/1yWtb
[4]: https://balajis.com/fiat
Watch Fintech Express for updates on the 2023 banking crisis and other fintech-related stories.
by Samuel Mbaki | May 2, 2023 | Technology
Samsung has issued a company-wide ban against generative AI tools like ChatGPT on all internally owned devices and networks. The company is now among the growing number that detests using AI tools.
Battle against AI tools continues
Samsung has joined a number of high-profile individuals and companies that are fighting against the use of AI. This mobile manufacturer has issued an ultimatum to its employees against using AI tools like ChatGPT on the devices it issues or its internal networks.
The company has said it’s taking this step to protect its trading secrets after one of its employees uploaded a sensitive code to ChatGPT. The company told its staff that although the interest surrounding AI platforms is growing, their security risks are also increasing.
In the internal memo, the company highlighted concerns over the data shared with AI platforms and its potential to be stored on external servers that it may have little control over retrieving or modifying. It added that its HQ is reviewing the safety measures for using AI tools to enhance the productivity of its employees.
However, it added that its worth noting that unless and until such measures are in place, the use of AI tools by its employees is temporarily restricted. It added that the company employees would go against the memo’s instructions and risk disciplinary action, including the termination of work contracts.
Samsung is now among other major companies like JPMorgan, Bank of America, Goldman Sachs and Citigroup that are restricting the usage of AI tools. Others like Elon Musk have warned that the risks of using AI tools may be far more significant than any weapon ever created.
However, most of these entities are already developing their AI-based tools. Keep watching Fintech Express for updates on technology and Fintech-related stories.
by Samuel Mbaki | May 2, 2023 | Regulation
A class action lawsuit has been proposed against Coinbase regarding the violation of customer privacy via biometrics collections. The lawsuit claims that the company went against the privacy laws set in Illinois when it collected and stored its users’ fingerprints and facial scans biometric data.
Illinois resident challenges Coinbase’s KYC process in court
The lawsuit was filed on May 1 in a California District Court by one of the exchange’s users claiming that the requirement for a customer to upload pictures of their valid government ID and Self-Potrait for Know Your Customer checks (KYC) may be violating certain provisions of Illinois’ Biometric Information Privacy Act (BIPA).
The court filing argues that the requirement for users to give Coinbase their biometric data shouldn’t be mandatory, according to BIPA. It explains that the company should rather ask for permission from Illinois residents to collect their data and include information on how long it intended to store it, how it would be using it and the steps involved in the permanent destruction of the sensitive data.
“Coinbase had no written policy, made available to the public, establishing a retention schedule and guidelines for permanently destroying biometric information,” the suit argued.
Coinbase lawsuit May 1 2023
The complainant argues that Thousands of Highly detailed geometric maps of the face have been wrongfully taken, processed and stored by the company against the will of Illinois residents. It explains that the actions by Coinbase in the collection, usage and storage of the data pose serious and irreversible privacy risks.
The lawsuit added that in the case of Coinbase’s database hacking, Illinois residents would have no means of preventing identity theft. It stressed that Coinbase is in the wrong for lacking transparency in destroying the data permanently once a user opts to close their trading accounts.
The lawsuit seeks the payments of damages of $5,000 per intentional BIPA violation or $1,000 per violation if the court finds out that the company did not go against the regulations willingly.
The KYC process used by Coinbase is similar to all other crypto exchanges. As such, the direction of this case rests with the court process. Keep watching Fintech Express for updates on this and other FinTech-related news.
