It’s refreshing for all Americans as you celebrate your country’s independence. Fintech Express wishes you all a happy time. However, we also wish to make you reflect on what financial freedom and independence could mean to your lives.
What is Financial freedom?
By definition, financial freedom means having enough financial resources to pay for all living expenses and achieve your life goals. How about we bring in the word of the day, “Independence.”
Independence simply means to be self-sufficient. It’s where you do not have to rely on the mercy of others to achieve your desired outcomes. Independence should go hand in hand with freedom when it comes to finance.
Find a way to intertwine the two, and you will have saved yourself a great deal of pain. Financial pain can come in two ways:
Not having resources
Having resources but not being able to access them
Get the government away from your wallets
As mentioned above, financial freedom can come from being unable to access your hard-earned resources during a time of need. Try withdrawing a million dollars from your local bank in a day. You might get it in less than two.
What does this tell you? The banking system needs to be fixed in its way of functioning. It will deter you from accessing your funds. We have seen bank freezes happen, transactions decline, and governments introduce withdrawal limits. Is this freedom? Does it show any financial independence? I don’t think so!
Yes, you guessed it right. He introduced Bitcoin to the world in one of the darkest periods in the history of Central Banking, the 2008 financial collapse cycle. Bitcoin has inspired many other decentralized crypto projects that do away with the need for trusting governments and banks with your money.
This Ark is what will empower your independence as you seek financial freedom. However, you have to take your time and research how to protect yourself in the crypto industry. But no worries, that’s where we come in. Fintech Express is at your service to offer you educative content along your research voyage in the crypto ocean.
May you enjoy a lifetime of independence!
This article is not financial advice or a marketing tool for any asset or field. However, it is meant to invoke the feeling of freedom and spark the fire of thought and adventure. We wish you a lifetime of financial independence and freedom! Till we meet again!
Britain has been left behind as the only major economy in the world experiencing higher inflation rates over time.
Rates hikes are ongoing in the U.K. with no end in sight, but inflation remains relatively high.
OECD report for June 4, 2023, indicates that inflation fell to 4.6% among G7 members in May, with Britain being the outlier
Britain keeps experiencing increased economic pressure as inflation levels remain higher than its competing economies despite numerous rate hikes. The country is expected to endure a longer period of tough markets owing to interest rate hikes to tame inflation for the better part of the year.
Britain’s government and central bank set on a collision course in inflation rates blame game
The British government and the Bank of England are set on a collision course now regarding the taming of inflation rates as the country keeps experiencing higher rates than the surrounding regions.
A Tuesday report from the Organization for Economic Cooperation and Development (OECD) shows that the G7 nations had a combined inflation rate of 4.6% in May, down from 5.4% in April, which is also its lowest level since September 2021
Comparatively, Britain lags with a CPI of 8.7%, almost double what its compatriots post. The country is also under more pressure as the economic growth has stagnated, and the public debt surpassed 100% of the GDP for the first time since March 1961.
At the same time, markets are tense about further interest rate hikes that are necessary for the fight against the spiking inflation rates. However, it still seems more difficult for the Bank of England to pull off a 2% inflation rate target by the end of 2023 without plunging the economy into a recession.
In January, U.K. Prime Minister Rishi Sunak vowed to halve the inflation rates in the country by half by the end of the year. If he is to deliver this pledge, the markets would have to brace for more pain as the housing sector is already under mayhem. Over 2 million households can now barely pay their mortgages, with June’s 50 basis points hike in interest rates feared to have pushed the numbers higher.
However, the Bank of England has indicated that the labor market is still strong. At a monetary policy forum in Sintra Portugal, Bailey noted that the U.K. labor is unique in remaining below the pre-Covid levels.
“I see this when I go around the country talking to firms. They say to me frequently that their plan is to retain labor as much as they can, even in the event of a downturn, because they’ve been concerned, and it’s been difficult to recruit labor,” he said.
However, Bailey denied that Brexit was to blame for the economic constraints that Britain is enduring. The Bank of England had, however, indicated that England’s productivity would have a long-run drop of 3% due to Brexit. In connection to the story, Catherine Mann recently told a parliamentary committee that additional paperwork was to blame for smothering small firms and driving inflation up.
“It’s not just small firms in the U.K. who want to export, but it is also small firms in Europe who were suppliers and provided competition in the U.K. market, so there is an inflationary effect coming through the competition channel,” she added.
Keep watching fintech express for more updates on this and other fintech-related developments.
Cameron Winklevoss has addressed a second open letter to DCG’S Barry Silbert regarding the functioning of DCG and loan repayment
Gemini to take legal action on July 6, 2023, in case DCG’s Barry Silbert doesn’t accept their deal
Cameron Winklevoss has penned a new open letter and addressed it to DCG’s Barry Silbert on Twitter, claiming that Silbert has been evading fulfilling his dues to DCG’s earned customers for the past 8 months. Winklevoss has warned Silbert of a potential lawsuit in two days if he doesn’t fulfill the demands from Gemini bosses.
Gemini bosses call out DCG’s Barry Silbert for owing its 232K Earn customers $1.2B
In an open letter, Cameron Winklevoss has slammed Digital Currency Group’s Barry Silbert regarding delays settling with Gemini and paying back the $1.2 billion that DCG owes the exchange’s 232,000 Earn customers.
Cameron Winklevoss shot at Barry Silbert, claiming he has been heading the DCG enterprise in a fraudulent behavior intertwined with a culture of lies and deceit. He said that this trend has gone on long enough at the expense of Gemini customers, and after 8 months of interactions with Silbert’s lawyers and legal advisors, there has been no fruition.
Winklevoss hit out at SIlbert, saying:
“you have never had any intention of finding global, consensual resolution with creditors and Earn users and have never had any intention of doing the right thing and taking responsibility for the mess that you, your companies, and your employees created with your reckless and fraudulent behavior.”
He added that SIlbert knowingly slowed down the resolution process via “abuse” of the mediation process. Cameron Winklevoss also expressed his disappointment with Barry SIlbert’s climb of being a “victim” in the fallout.
“It takes a special kind of person to owe $3.3 billion to hundreds of thousands of people and believe, or at least pretend to believe, that they are some kind of victim…. even Sam Bankman Fried is incapable of such delusion,” said Winklevoss.
Cameron Winklevoss summed up by giving SIlbert his final and best offer, after which Gemini will press charges if Silbert does not reciprocate.
Winklevoss wants DCG to make a loan repayment of $275 million by July 1, a subsequent payment of $355 million before July 21, 2025, and a final payment of $835 million by July 21, 2028, topping off the whole payment to $1.47 billion.
He gave Silbert up to 4 pm ET on July 6, 2023, to accept the terms of the deal, or Gemini would move forward with the following steps:
A lawsuit against DCG and Barry Silbert
File a turnover motion
Advance a non-consensual plan
UCC litigation
Keep watching Fintech Express for updates on this and other Fintech-related developments.
Crypto is a hedge against inflation and economic downturns. As central banks around the world continue to print money, you should be concerned about the long-term value of fiat currencies. Additionally, blockchain technology has proven to be a boon in terms of security and efficiency, which is why many financial institutions are exploring ways to incorporate it into their operations.
Overall, as more institutions begin to invest in crypto assets and blockchain technology, this will likely lead to increased adoption and mainstream acceptance of cryptocurrencies.
Institutional interest in Bitcoin
Institutional interest in Bitcoin has grown significantly in recent years. Bitcoin, as the first and most well-known cryptocurrency, has attracted attention from various institutional players, including banks, hedge funds, asset management firms, and even some government entities.
Adoption by Financial institutions
Several traditional financial institutions have recognized the potential of Bitcoin and other cryptocurrencies. Some prominent examples include JPMorgan Chase, Goldman Sachs, and Fidelity Investments, which have started offering services or investing in the crypto space. These institutions’ involvement has helped legitimize Bitcoin and increase its mainstream acceptance.
Bitcoin investment funds
Institutional investors have launched dedicated funds specifically for investing in cryptocurrencies, including Bitcoin. These funds provide an opportunity for institutional investors to gain exposure to Bitcoin’s potential without directly holding the cryptocurrency themselves. This trend has opened up new avenues for institutional capital to flow into the Bitcoin market.
Bitcoin futures and derivatives
The introduction of Bitcoin futures contracts on regulated exchanges, such as the Chicago Mercantile Exchange (CME), has allowed institutional investors to gain exposure to Bitcoin without actually owning the underlying asset. Additionally, the development of Bitcoin options and other derivatives has provided institutions with more sophisticated investment instruments to manage risk and enhance trading strategies.
Institutional custody Solutions
Custody services tailored for institutional investors have emerged to address their specific needs in securely storing and managing Bitcoin holdings. These services offer robust security measures and institutional-grade infrastructure to mitigate the risks associated with holding cryptocurrencies. Established financial institutions and specialized crypto custodians now provide such services, attracting institutional investors looking for secure storage solutions.
Regulatory developments
Increased regulatory clarity and oversight in some jurisdictions have contributed to institutional interest in Bitcoin. Regulatory frameworks provide a level of certainty and investor protection that institutions often seek before committing significant capital. As regulators establish guidelines and regulations around cryptocurrencies, institutional investors can navigate the market with more confidence.
Inflation hedge and diversification
Bitcoin’s decentralized nature and limited supply make it an attractive asset for institutions seeking protection against inflation and diversification within their portfolios. As traditional financial markets face uncertainties, institutional investors view Bitcoin as a potential store of value and a hedge against economic instability.
It’s important to note that institutional interest in Bitcoin can be influenced by market conditions, regulatory changes, and investor sentiment. While institutional involvement has grown, it does not imply unanimous support or constant investment. The level of institutional interest in Bitcoin may vary over time as market dynamics evolve.
Blockchain technology paves the way for institutional transformation
Blockchain’s decentralized and secure nature eliminates the need for intermediaries and provides a transparent ledger for transactions. As a result, big corporations and governments have explored blockchain technology’s potential in transforming the way they operate. One of the main reasons for this is its potential to streamline financial processes and reduce costs.
Blockchain can be used for various applications such as cross-border payments, trade finance, and supply chain management, making it attractive to institutions looking to improve efficiency. Moreover, blockchain technology’s robust security features make it an appealing option for institutions seeking to protect their assets from cyber threats.
With high-profile hacks on traditional financial institutions becoming more frequent, blockchain’s immutability and encryption provide an added layer of protection. Blockchain technology paves the way for institutional interest in crypto by offering increased efficiency and security.
Digital assets gain credibility among traditional investors
An increasing number of well-established financial institutions–most recently, BlackRock and Fidelity–are dipping their toes into the crypto market. These institutions include major banks, asset managers, and hedge funds that have started offering cryptocurrency-related products and services to their clients. Additionally, regulatory frameworks that provide clarity on how digital assets should be treated by traditional financial systems–especially MiCA out of Europe–have helped boost investor confidence in cryptocurrencies.
COVID-19 lockdowns also played a role in accelerating institutional adoption as investors seek alternative investment opportunities amid economic uncertainties. As a result, more institutional players are exploring ways to invest in digital assets such as Bitcoin and Ethereum to diversify their portfolios and potentially benefit from the potential upside returns offered by these new asset classes.
Increasing institutional interest signals a promising future for crypto
The increasing institutional interest in cryptocurrencies is a clear indication that the crypto market is heading towards a promising future. Institutional investors, such as banks, hedge funds, and pension funds, have traditionally been skeptical of digital assets due to their volatility and lack of regulation.
The recent ETF applications by BlackRock and Fidelity, as well as the ensuing surge in Bitcoin’s value, has caught Wall Street’s attention. With Bitcoin halving coming up in 2024, it appears to be a perfect storm for institutional investors FOMO into crypto, seeking high returns and diversification in their investment portfolios.
Kadan Stadelmann
Kadan Stadelmann is a blockchain developer, operations security expert and Komodo Platform’s chief technology officer. His experience ranges from working in operations security in the government sector and launching technology startups to application development and cryptography. Kadan started his journey into blockchain technology in 2011 and joined the Komodo team in 2016.
Kenya’s President Ruto has received rather dissatisfying news after the High Court of Kenya deemed the appointment of 50 CASes meant to deputize 22 Cabinet Secretaries unconstitutional.
The High Court decision is a hit to the President and comes days after it suspended the enforcement of the ‘controversial’ 2023 Finance Act.
Kenya’s High Court deemed President Rutos’ 50 assistant cabinet secretaries unconstitutional just days after suspending the highly controversial Finance Act. The decision follows an uproar of continued overspending from the Kenyan government while the country is in financial distress.
President Ruto won’t get his CASes as the country has a bad financial outlook
Kenya has witnessed a ruling that will bar the government from hiring 50 CASes to deputize only 22 Cabinet secretaries across its ministries. The High Court gave this ruling on July 3, 2023, claiming that the math isn’t right and doesn’t show any intentions of serving the country’s nationals.
President Ruto’s government has been in the spotlight for its increased overspending, borrowing, and over-taxation while a financial crisis continues. In June, the Central Bank of Kenya hiked interest rates by 100 basis points, taking the rates to 10.5%.
The CBK Governor Kamau Thugge pointed out that recent inflation data shows a need for more to be done. June had 7.9% inflation rates, while May and April had 8.0% and 7.9%, respectively. At the time, food prices were significantly high, with SUagr having an inflation rate of 58.1% YoY and Electricity at 53.4% YoY.
Thugge highlighted that the government had borrowed KES 436B in the 2022/2023 fiscal year, with the country’s stock of external debt crossing KES 5.1T accounting for the 52.9% of gross public debt that stands at a staggering KES 9.63T. He added that the non-performing loans ratio stood at 14.9% in May, up by 30 basis points from April.
He added that the Private sector grew by 13.2% in May, unchanged from April. He topped up, saying exports grew 5.5% in 12 months ending May while exports fell 2.3%.
Finance Act 2023 suspended pending hearing
In connection to the concerns surrounding the Kenyan government’s spending and borrowing, the country’s Auditor General told Members of Parliament on July 2, 2023, that there are no records of public debt which places the efforts of paying it off in doubt whether they are effective or there is corruption involved.
Due to these issues, lawyer Okiya Omtatah filed a lawsuit against the Kenyan Government in the High Court, deeming some parts of the highly contested Finance Act as unconstitutional. The High Court of Kenya ruled the suspension of the implementation of the already signed into law Finance Act on hold which slams President Ruto’s plans to raise more funds via higher taxes.
However, the nation’s Energy and Petroleum Regulatory Authority (EPRA) went against the High Court ruling. It introduced new Petroleum product prices following the taxes implemented by the Finance Act. As a result, lawyer Omtatah expressed that he would sue EPRA for defying court orders.
In other news, the World Bank had expressed concerns over the increased taxes that came with the Finance Act saying that it could dwarf the economic growth in the East African country, but President Ruto did not take the suggestion. The bill was passed quickly in the country’s two parliamentary houses and signed into law. Now, the case on President Finance Act is set to be heard on July 5, 2023, by the High Court.
“That I am satisfied that the Application meets the test for conservatory orders, and I do grant prayers 2 and 3 of the Application until 5.7.23 when the matter is scheduled for mention for directions,” ruled High Court’s Justice Thande
Keep watching Fintech Express for more updates on Finance and other Fintech-related developments.
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
Konnichiwa! 🎌
I am very glad to be back in Tokyo as part of my #G20DigitalTour
In 1984, I came here to test the very first #AI application in the world with Pr. Kazuhiro Fuchi
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.
Belarus has cited high crypto crimes as a motivation for a regulatory decision that might see peer-to-peer crypto transactions banned in the country.
Belarusian Ministry of Foreign Affairs is already working on legal recommendations to ban peer-to-peer crypto transactions
Belarus is seeking to ban peer-to-peer crypto transactions, putting it on an extended list of countries that are unsatisfied with an unregulated crypto industry. The country’s Ministry of foreign affairs is working on a recommendation to prohibit some crypto activities there.
Rising crypto crimes pushing Belarus to ban peer-to-peer transactions
A July 2 report from the Belarusian Ministry of Foreign Affairs indicates that the Ministry is working on recommendations that might see the government curtailing some crypto use cases like peer-to-peer crypto transactions. The legislation is motivated by increased crypto crimes in the country and globally.
The Ministry cited a spike in the cybercrime rate in Belarus, prompting it to take extra steps to protect its citizens. The report cited that local prosecutors have suppressed the activity of 27 citizens for providing “illegal crypto exchange services. It alleged that the group of citizens had amassed over $27 million in illegal revenues.
An excerpt from the report reads.
“Crypto P2P services are in demand among fraudsters who cash out, convert stolen funds, and transfer money to organizers or participants in criminal schemes.”
The regulator added:
“The MFA is working on legislative innovations prohibiting crypto exchange transactions between individuals. For transparency and control, citizens will be allowed to conduct such financial transactions only through the HTP exchanges.”
The regulator also added that it plans to introduce such measures for free exchanges. It stated that these efforts would make withdrawing money from illicit activities impossible, making it unprofitable for fraudsters to operate in Belarus.
The actions by Belarus to ban some crypto activities like peer-to-peer transactions come at a time when other nations are increasing their oversight of the industry for similar concerns. However, it doesn’t go without noticing that these countries lack designated regulatory frameworks for the crypto industry.
Countries like the US are cracking down on crypto, while others like Belgium and Canada are pushing away virtual assets providers for not registering with them.
However, it is notable that while these countries are increasing their oversight of crypto, they are working on crypto regulations. The US has been calling crypto industry stakeholders to talks directed to developing good regulations while the EU countries are waiting for the effection of the MiCA legislation.
Keep watching Fintech Express for more updates on crypto and other fintech-related developments.
Rumors have been spreading that Securities and Exchanges Commission Chair Gary Gensler was on the verge of resigning following internal investigations.
The SEC has come out to express that no investigation is happening, and its Chair, Gary Gensler, isn’t resigning.
An ecstatic crypto community had received the rumor.
SEC has communicated that Gary Gensler is not on the verge of resigning after rumors spread alleging that there had been an internal investigation. Gary Gensler has been receiving a lot of hate from the crypto space due to the extensive crypto crackdowns he has spearheaded with the SEC; as such, the rumor of his resigning does not come as a surprise.
The ‘source’ article is fake, AI-generated, and has no basis-SEC
An article with a 97% artificial intelligence generation score has hit the internet claiming that US SEC chair Gary Gensler was on the verge of resigning. The article published on a new website claimed that Gensler had been forced to resign following an internal investigation by the SEC.
The July 1 story appeared on the website dubbed “thecryptoalert.com,” claiming that an anonymous official had tipped the submission of a resignation letter by Gary Gensler. The story had gained traction on Twitter and other socials as breaking news despite the SEC not having released any confirmation on the story.
The SEC later talked to FOX’s Business News reporter Charles Gasparino confirming that Gary Gensler was not resigning/ Gasparino tweeted this, saying the SEC’s response was “as expected.”
This rumor is not the first of its kind. Another one was circulating in April, claiming that Genser was preparing to be “fired.” However, it also doesn’t come as a surprise following the extensive and ‘excessive’ crypto crackdowns that Gensler has been spearheading. His agency is suing Coinbase and Binance and has settled for over $100B with many other crypto entities.
While spreading rumors is not how to deal with Gensler, a legal process is underway to eject him from his seat and restructure the SEC. However, only time will tell if it will come to fruition. Keep watching Fintech Express for updates on crypto regulation and other Fintech-related developments.
South Korea has introduced a basis for imposing penalties and liability damages caused by unfair crypto trading.
The bill is motivated by actions from collapsed crypto empires like Terra Luna.
A crypto regulation bill has been introduced in South Korea to protect its citizens from the exploitation of unfair cryptocurrency trade practices. The bill, Virtual Asset User Protection Act, was passed by the country’s National Assembly and is designed to provide more protection to South Koreans from illicit trading activities like undisclosed information and advertising, market manipulation, and other notable unfair practices.
South Korea welcomes a crypto regulation bill imposing penalties and liability damages on unfair crypto trades
The Virtual Asset User Protection Legislation reportedly integrates about 19 crypto regulation bills providing a unified one that can serve South Korean investors better. This crypto regulation bill comes after the country was previously used by Do Kwon’s Terra Labs as a host market, only for his crypto empire to collapse due to poor management.
As such, it was expected that South Korea would act harshly on Do Kwon and impose strategies to prevent such an occurrence from ever happening again. According to local media, the main point of the Virtual Asset User Protection Act is to introduce the Capital Market Act fort to digital assets that have a securities nature. It also aims to establish a basis to impose liability and penalties for damages from unfair crypto trades.
Following the bill’s passing, Virtual Assets Providers (VASPs) in the country are now required to take responsibility for user deposits and provide insurance. This measure will make it safer for users against losses resulting from faulty management like hacks and other related risks. Violating the rules and requirements for crypto assets services providers in the region will attract imprisonment of at least a year or major fines.
In other news, the UK has recognized cryptocurrencies as regulatable assets. These developments come shortly after the passing of the MiCA legislation. The country is also preparing to introduce MiCA towards the end of 2024, as the EU parliament requires. Keep watching Fintech Express for stories on crypto regulation and other fintech-related developments.
Canadian lawmakers have tabled 16 separate proposals that push to support the crypto industry.
The details of these regulations have been exposed by a report released by the Parliamentary Standing Committee on Industry and Technology (INDU) of the Canadian House of Commons.
Canada has received a series of proposals that will directly impact the functioning of crypto organizations in the country. The proposals highlight the potential of blockchain technology in various sectors that also follow recommendations for the recommendation of the House of Commons or the government.
Canada pushes to foster crypto industry growth
The recommendations stated in the report calls on the Government of Canada to recognize the blockchain industry as an emerging innovation with long-term economic and job creation opportunities. It asks the government to prioritize protecting individuals’ right to self-custody and promote reliable access to digital assets.
INDU proposed that the government consider establishing a national blockchain strategy involving experts, entrepreneurs, academics, artificial intelligence, and investors industry cluster. The proposed strategy should set up a platform that fosters information exchange and monitor promising areas of disruption.
The Canadian government has also been called on to pursue international cooperation in developing regulatory frameworks for the crypto and blockchain industry. The report also added that campaigns must be established to educate Canadians on blockchain and crypto industries.
These developments come when multiple governments rally to increase their regulatory touch on digital Assets. The US has been cracking down on crypto organizations while the EU and UAE are setting up regulations to foster the adoption of digital assets. However, it has been commonly noted that there is a need for more oversight and efforts to regulate the industry more tentatively.
Keep watching fintech express for updates on this and other fintech-related stories.
