by Chelsea Florence | Aug 17, 2023 | Finance
Key Points
- China’s Ministry of Commerce could respond to Biden’s executive order to restrict investments in advanced Chinese technology
- US Commerce Secretary Gina Raimondo is set to visit the country amid a souring business relationship.
US Commerce Secretary Gina Raimondo is set to visit China as reports spread that the Asian nation could announce countermeasures to Bidens Executive Order against its advanced technology.
US Commerce Secretary Gina Raimondo to tour China following Biden’s Executive Order
The US and China have been experiencing deteriorating business ties lately as the two major world economies remain opposites in political spectrums. China has been associated with Russia and other non-Nato nations that seek to dethrone the dollar and have thus been under multiple economic sanctions.
As such, the Asian nation seeks to completely break away from the dollar, a sentiment the US shares. In Q2, the US asked the EU to follow suit and reduce its dependence on Chinese global supply chains. The EU and the US have depended on China’s advanced technology supply chains for items like chips.
President Biden has released an executive order seeking to cut the dependency on such Chinese items. As a retaliation plan, China’s Ministry of Commerce said on Thursday that it would also respond to the executive order with its restrictions against the US Economy.
“On that basis, we are making a comprehensive assessment of the executive order’s impact and will take necessary countermeasures based on the assessment’s results,” The ministry’s spokesperson said.
Bidens executive order over security concerns restricts our investments in Chinese quantum computing, artificial intelligence, and semiconductors industries. The targeted industries have been the Asian nation’s strongest ones globally, prompting a response from the nation as its economy is stalling.
While the two nations remain at each other’s necks, it could be catastrophic for global supply chains if they alienate each other as such. The US Commerce Secretary Gina Raimondo is set to travel to China to hold bilateral talks and find a way forward for the two nations weeks after Treasury Secretary Janet Yellen traveled there for similar purposes.
Keep watching Fintech Express for updates on macro-finance and other fintech-related developments.
by Melissa Adams | Aug 17, 2023 | Blockchain
Key Points
- Shiba Inus marketing strategist Lucie has issued a stern warning and offered instructions to reduce the risk of phishing attacks when using Shibarium.
- Shibarium went live on August 16 as an Ethereum layer two scaling solution and can be accessed by anyone for development, just like other EVM blockchains.
Shiba Inu’s marketing strategist Lucie has cautioned the public against possible phishing attacks on the new Shibarium blockchain, giving instructions to keep safe.
Shibarium blockchain goes live
Shibarium blockchain has long been a long-awaited blockchain for the Shiba Inu ecosystem. As such, it is expected that attacks could be carried out on the blockchain against its users.
The meme coin’s marketing strategist Lucie has cautioned users against possible phishing attacks, asking them to remain vigilant and exercise caution when interacting with projects on the network. Like BNB Chain and Ethereum blockchains, Shibarium allows for the development and deployment of any project that could be used as an avenue for swindling money to un-detecting users.
In a Twitter post, Lucies stated that though the network’s openness is great, it also opens routes for bad actors, who could even use the Shiba and Shibarium names in their scammy projects.
“Similar to Polygon, Ethereum, and other blockchains, Shibarium is open for anyone to build on. Regrettably, this also allows bad actors to develop scam dApps and rug-pull tokens, among other things. The mere incorporation of the term “Shibarium” or “Shib” in their names holds no credibility.”
Lucie explained to users that they ought to prioritize development over all else.
“Prioritize research: delve into their Telegram and Discord channels, gauge the community’s atmosphere, scrutinize their social media posts, and check Etherscan. Prioritizing your safety is paramount.”
Keep watching Fintech Express for more crypto and fintech-related developments.
by Chelsea Florence | Aug 17, 2023 | Regulation
Key points
- Ripple vs. SEC case has been going on for years but has taken a dramatic turn as the US SEC recently lost partially.
- The Presiding Judge ruled that the sale of XRP in primary and programmatic markets does not constitute the factors that could deem it a security.
- Now, Ripple Labs Chief Legal Officer has hit back at the US SEC for filing a request for an appeal against the US SEC, saying there currently are no “extraordinary circumstances” in the case that warrants an interlocutory appeal at this stage.
Ripple Labs’ chief legal officer has hit back at the US SEC, expressing that no “extraordinary circumstance” warrants the US SEC’s ability to appeal the partial loss while the case is still pending.
Ripple Labs legal counsel not convinced by US SEC appeal.
Ripple Labs Chief Legal Officer Stuart Alderoty has hit back at the US SEC move towards filing for an interlocutory appeal relating to their July 13 XRP case partial loss laid down by U.S. District Court Judge Analisa Torres.
In an August 16 letter, Judge Torres explained that XRP failed to pass Howey’s tests in primary or programmatic markets, which makes it not a security. She explained that the court should reject the SEC’s motion for leave to file an interlocutory appeal. An interlocutory appeal occurs when a ruling by a court gets appealed as other aspects of the case are still underway.
Now, Ripple Labs’ legal system believes it is more appropriate for the US SEC to wait until the final ruling before filing for an appeal. The lawyers explained three main arguments starting with that the appeal needs the US SEC to raise new legal issues, which has yet to be the case.
Secondly, they claim that the US SEC that the court ruled incorrectly on the matter could be more efficient since it has to show that at least two courts are in apparent conflict with each other, which is not the case here. Thirdly, they explained that an immediate appeal would not advance the termination litigation proceedings.
Ripple Labs Chief Legal Officer Stuart Alderoty explained that the US SEC doe not have any extraordinary circumstance that would justify departing from the normal legal procedure.
“No extraordinary circumstance here would justify departing from the rule requiring all issues as to all parties to be resolved before an appeal.”
This case is expected to continue with the US SEC not giving up quickly, as it sets a significant precedent for all other cases connected to certain crypto assets being securities. By now, the US SEC has branded over 62 crypto assets as securities and charged multiple exchanges for trading them in the US.
As such, the case will be a landmarking event in the crypto industry as it will change the regulatory approach of the industry in the US forever. Keep watching Fintech Express for more updates on crypto regulation and other fintech-related developments.
by Samuel Mbaki | Aug 15, 2023 | Blockchain
Key Points
- Decentralized asset management platform Valio launches, promising users control of their assets and immersion into Web 3
- The platform targets “leveling the playing field” for investors.
Valio, a new decentralized asset management system, has launched publicly, aiming to allow users to have their funds managed by professional traders without trusting them as custodians.
Leveling the playing field?
As Web 3 keeps evolving, new solutions are coming up now and then. Some of these solutions aim to increase users’ productivity in the Web 3 sector. In that line, Valiio, a new decentralized asset management system, has come up to allow users to have their funds managed by traders trustlessly.
The application allows investors to browse a list of managers and view their trade stats via an explore page. If the investor back a particular money manager, they can deposit their assets to participate in that manager’s fund. These funds are then held in smart contracts, ensuring the manager cannot withdraw them.
In conversations with Fintech Express, the platform’s founder, Karlis, told us that the platform simply aims to increase smart access to crypto and ensure investors do not have to guess through what tokens to invest in.
“Valio provides simple access to smart crypto exposure. With Valio, you no longer have to guess what tokens to buy, but instead, you can back proven Web3 traders and asset managers trustless.”
During the launch, Valio is integrated with Optimism and Arbitrum. Still, Karlis told us that they expect to launch it on networks like Ethereum Mainnet and Base soon, as well as any other network their community wants.
Right now, Valio is live on Optimism and Arbitrum. We plan to launch on Ethereum mainnet and Base and any other LayerZero-supported networks the community wants.
According to Karlis, the platform also uses a “cumulative price impact tolerance architecture” that limits the amount of price impact money managers can cause to an individual investment. This functionality is added to prevent managers from drinking user money into illiquid assets.
He added that this ensures that even if a corrupt manager decides to make away with the money, he can only take 3 to 5%, which is much lower than what could have been earned honestly.
“The Cumulative Price Impact Tolerance (CPIT) is a custom-built security architecture that allows Valio to facilitate a trustless and non-custodial asset management relationship between traders and depositors. The CPIT solves the billion-dollar fraud problem in our industry by eliminating the need for trust between managers and depositors while protecting depositors from rugs. Existing asset management platforms also limit trader scope as they scale TVL, whereas our CPIT does not do that.” He said.
In summary, Karlis said they were glad about the success they saw at the project launch and believe they have unlocked a new asset class for the industry that will reshape the industry. He added that though it is in its initial phases, they aim to keep building Valio up into the future.
“We have been thrilled with the usage we have seen so far. We’ve seen over 100 new vaults created since launch, and users seem to enjoy the product. Although it’s still in the early stages with limited functionality, we’re excited about the future as we continue to grow Valio. We believe that we have unlocked a new asset class for the industry.”
Keep watching Fintech Express for more updates on Web 3 and other fintech-related developments.
by admin | Aug 15, 2023 | Learn
Introduction
Starting a Web 3.0 career should not be that difficult; however, there are some things that you should learn first. In this article, we’ll explore the intricate steps and strategies to secure a job in Web 3.0, offering a formal, neutral, and detailed guide for aspiring professionals.
Introduction to Web 3.0: Beyond the Basics
Web 3.0, often referred to as the decentralized web or the semantic web, represents a paradigm shift from the traditional internet. It is characterized by decentralization, blockchain technology, and enhanced user control over data. Web 3.0 encompasses various domains, including decentralized finance (DeFi), non-fungible tokens (NFTs), decentralized applications (dApps), and more.
Charting Your Course: Steps to Secure a Web 3.0 Career
- Understand the Landscape: Begin by acquiring a solid understanding of the Web 3.0 ecosystem. Dive deep into blockchain technology, smart contracts, decentralized networks, and the specific sectors within Web 3.0 that interest you most.
- Educational Pathways: Given your role as a fintech educator, you recognize the importance of continuous learning. Engage in online courses, workshops, and certifications offered by reputable platforms and institutions. Seek out programs that cover blockchain development, cryptography, decentralized systems, and related topics.
- Build Technical Skills: Depending on your career aspirations, acquire relevant technical skills. For blockchain development roles, master programming languages like Solidity and Rust. Explore front-end and back-end development for dApps and blockchain interfaces.
- Personal Projects and Contributions: Showcase your expertise by working on personal projects. Develop and deploy smart contracts, create dApps, or contribute to open-source projects. Demonstrating hands-on experience can set you apart in a competitive job market.
- Networking: Engage with the Web 3.0 community through online forums, social media, and industry events. Attend conferences, webinars, and meetups to connect with like-minded professionals, potential employers, and mentors.
- Online Presence: Establish a strong online presence through a well-crafted LinkedIn profile, personal website, or portfolio. Highlight your skills, projects, and contributions to demonstrate your commitment to the Web 3.0 field.
- Internships and Entry-Level Roles: Consider starting with internships or entry-level positions at startups, established companies, or blockchain projects. Gain practical experience, learn from industry veterans, and familiarize yourself with real-world challenges.
- Stay Abreast of Trends: Web 3.0 is rapidly evolving. Stay updated with the latest developments, emerging technologies, and trends shaping the industry. Subscribe to newsletters, follow thought leaders, and engage in relevant online communities.
- Soft Skills and Adaptability: Beyond technical prowess, cultivate soft skills such as problem-solving, communication, and adaptability. The dynamic nature of Web 3.0 requires professionals who can navigate change and collaborate effectively.
Sector-Specific Pathways in Web 3.0 Careers
- Blockchain Development: For those interested in creating blockchain protocols, smart contracts, and decentralized applications, mastering programming languages like Solidity, understanding consensus mechanisms, and exploring scalability solutions are essential.
- DeFi and Finance: Careers in decentralized finance involve understanding financial markets, algorithmic trading, liquidity provision, and blockchain-based lending platforms.
- NFTs and Digital Art: Professions related to NFTs span art curation, digital collectibles, and gaming. Familiarize yourself with NFT marketplaces, digital rights, and the intersection of technology and creativity.
- Decentralized Governance: Participate in projects that emphasize decentralized governance, DAOs (Decentralized Autonomous Organizations), and community-driven decision-making.
Conclusion: Shaping Your Web 3.0 Career Journey
Securing a job in Web 3.0 demands a combination of technical expertise, continuous learning, networking, and adaptability. By following the steps outlined in this guide and immersing yourself in the dynamic world of Web 3.0, you can position yourself for a fulfilling and impactful career in the decentralized future. Keep watching Fintech Express for more articles to guide you as you explore the Fintech world.
by admin | Aug 15, 2023 | Learn
Introduction
Tokenization has emerged as a revolutionary concept in the world of fintech, redefining the way transactions are conducted, data is secured, and assets are represented. In this article, we delve into the intricacies of tokenization, providing you with a formal, comprehensive, and neutral overview of this groundbreaking technology.
Understanding Tokenization: A Primer
Tokenization, in the context of fintech, refers to the process of converting tangible and intangible assets into digital tokens that can be securely and efficiently transacted on a blockchain or distributed ledger. These tokens represent ownership, value, or access rights to a specific asset, whether it’s a physical object, a financial instrument, or even data.
Key Components of Tokenization
- Digital Representation: Tokenization involves creating a digital representation of an asset. This can include traditional assets like real estate, stocks, bonds, and commodities, as well as newer forms of assets like intellectual property and loyalty points.
- Blockchain Technology: The underlying technology behind tokenization is blockchain, a decentralized and tamper-proof digital ledger. Blockchain ensures the authenticity and immutability of tokenized assets, reducing the risk of fraud and enhancing transparency.
- Smart Contracts: Smart contracts, self-executing agreements with predefined rules, play a crucial role in tokenization. They automate and enforce the terms of transactions, ensuring that parties involved adhere to the agreed-upon conditions.
Advantages of Tokenization
- Liquidity and Fractional Ownership: Tokenization enables fractional ownership, allowing investors to own a portion of high-value assets that were previously inaccessible. This fractional ownership increases liquidity in markets that were historically illiquid.
- Efficiency and Transparency: Traditional asset transfers can be time-consuming and involve intermediaries. Tokenization streamlines the process, reducing settlement times and costs. Additionally, transparency is enhanced since transactions are recorded on an immutable blockchain.
- Global Access: Tokenized assets can be accessed and traded globally, eliminating geographical barriers. This democratizes investment opportunities and opens up markets to a broader range of investors.
- Security: Blockchain’s inherent security features make tokenized assets resistant to fraud and tampering. Ownership is verified through cryptographic signatures, reducing the risk of identity theft.
Tokenization Use Cases
- Real Estate: Tokenizing real estate properties allows investors to own a fraction of a property and receive proportional rental income and capital gains. This opens up real estate investment to a wider audience.
- Financial Instruments: Traditional financial instruments like stocks, bonds, and commodities can be tokenized, enabling efficient trading and settlement while maintaining regulatory compliance.
- Supply Chain Management: Tokenization can enhance supply chain transparency by tracking the provenance of goods and ensuring their authenticity.
- Digital Art and Collectibles: Non-fungible tokens (NFTs) have gained prominence for tokenizing digital art and collectibles, providing artists and creators with new revenue streams and ownership rights.
Challenges and Considerations
- Regulatory Landscape: The regulatory environment for tokenized assets is still evolving. Fintech educators should emphasize the importance of understanding local regulations before engaging in tokenization activities.
- Interoperability: Ensuring compatibility between different blockchain platforms is crucial for the widespread adoption of tokenization.
- Cybersecurity: While blockchain enhances security, tokenization introduces new attack vectors, necessitating robust cybersecurity measures.
- Education and Awareness: Fintech educators play a pivotal role in educating individuals about tokenization, its benefits, risks, and potential applications.
Conclusion
Tokenization has emerged as a transformative force in the fintech landscape, offering a pathway to increased liquidity, efficiency, and accessibility. By understanding the principles of tokenization, its advantages, and its challenges, we can pave the way for a future where assets are digitized, transactions are seamless, and financial inclusion is expanded.
by Samuel Mbaki | Aug 15, 2023 | Finance
Key Points
- The Bank of Russia has introduced new interest rates as the Ruble falls to hit an almost 17-month low against the dollar.
- The interest rate hike was done during an emergency meeting after the Ruble was gripped by a drop in value past the 100 mark against a US dollar
Bank of Russia has hiked interest rates by 350 basis points to 12 % during an emergency meeting as Moscow looks into halting the rapid depreciation of the Ruble.
The Bank of Russia introduced higher interest rates to tame rising inflation
The Ruble slumped past the 100 mark to the dollar on Monday, with President Putin’s economic advisor, Maxim Oreshkin, blaming lax monetary policies due to the fall in the coin’s value.
Oreshkin wrote an article to the Russian State-owned Tass news agency saying the plunging currency and acceleration in inflation result from “loose monetary policy.” Consequently, the Bank of Russia announced an emergency meeting on Tuesday to reassess its key interest rates, which stood at 8.5%.
In the meeting, they announced a hike by 350 basis points taking the total interest rates to 12%. As a result, faith in the Rubble increased with it, dropping to 95 against the dollar during the time of writing.
Keep watching Fintech Express for more updates on this and other finance-related developments.
by Joseph Reagan | Aug 15, 2023 | Regulation
Key points
- The Monetary Authority of Singapore, in conjunction with the Central Bank of Singapore, has released a new regulatory framework for stablecoins.
- The new framework requires stablecoin issuers to be regulated by the Monetary Authority of Singapore for their assets to be used there.
The Central Bank of Singapore has introduced a new crypto regulatory framework targeting the stablecoin industry. The new framework requires stablecoin issuers to register with the MAS.
Central Bank of Singapore continues to increase oversight of crypto regulation
The Central Bank of Singapore released a revised regulatory framework that aims at ensuring stability for single-currency stablecoins (SCS) regulated in the state.
The MAS announced the new framework on August 15, which aims at streamlining the use of the Singaporean dollar or the G10 pegged currencies like Euro, USD and the British pound. The target assets should also have exceeded 5 million Singaporean dollars in circulation ($3.7 million).
Central Bank of Singapore supervision deputy managing director Ho Hern Shin, said the framework is set to facilitate stablecoin use as a “credible digital medium of exchange” and as a “bridge” between fiat and digital assets. Shin encouraged stablecoin issuers to be ready to comply with the new regulatory framework if they wanted to be branded as MAS-regulated entities.
The MAS has been proactive in regulating and adopting crypto assets for a long time. It recently pulled joint efforts with the UK FCA and has also committed $150 million in fintech markets, aiming to welcome more users in Web 3. While the new stablecoin framework has already been announced, the MAS needs to have the parliament pass it into law to enforce it.
Keep watching Fintech Express for updates on regulations and other fintech-related developments.
by Chelsea Florence | Aug 14, 2023 | Banking
Key Points
- FedNow has showcased a new DLT-powered payments platform built on Hedera to its list that showcases service providers.
- The Federal Reserve previously indicated that it would not support or endorse any showcase providers featured on its website.
The United States Federal Reserve has showcased a DLT-powered company as a service provider on its website. The administrator said showcasing a company on the website does not necessarily mean it supports the company.
FedNow exhibits a DLT-powered payments system as a service provider
Dropp, the company in question, is a DLT services provider powered by the Hedera Hashgraph and has now appeared on FedNow’s Service Provider Showcase section. This section aims to connect financial institutions and businesses with service providers that could “help them innovate and implement instant payment products using FedNow Service.”
Though this showcasing could signal that FedNow is warming up to DLT-powered services providers, the Federal Reserve has previously stated that it doesn’t support any of the companies posted there. Also, it has said that the materials exhibited on its website are only “presented as a convenience” to potential FedNow Service participants.
“Federal Reserve Financial Services (FRFS) is merely the host for the showcase and does not support or endorse any showcase providers, and the inclusion or exclusion of a provider should in no way imply any recommendation or endorsement by FRFS.”
This development catches the crypto community divided time following the launch of PayPal’s PYUSD stablecoin. The coin has smart contract functionalities that allow for the censorship of transactions which a faction of the crypto community sees as a start to undermining crypto culture like decentralization.
Now, even with FedNow allowing DLT-powered services providers on their website, some still feel that it’s not enough indicator that crypto will be allowed to fully shape up as an alternative to the ‘flawed’ monetary systems.
Keep watching Fintech Express for more updates on banking and other fintech-related developments.
by Samuel Mbaki | Aug 14, 2023 | Finance
Key points
- China’s economic turmoils keep increasing as credit data released Friday shows a slump in demand for households and businesses borrowing money.
- Developer Country Garden suspended trading at least 10 of its mainland-china traded Yuan bonds.
China’s economy is set to endure more pain as a slump in demand for borrowing money reflects in recent credit data. Real estate problems now persist as consumer sentiment grows weak.
More pain for Chinese markets going forward?
The Chinese economy has been heavily impacted by economic installment. What was considered a promising economy to turn around world economic issues via opening supply chains has now more than stalled.
Credit data released last Friday show the country is experiencing increasingly low demand for borrowing money. This, in turn, affects property markets as fewer people are expected to invest in real estate in the coming months there. Once a very stable real estate company, Country Garden is now on the brink of default, with many other competitors in turmoil.
New local currency bank loans plunged 89% in July from June to 345.9 billion Yuan, much lower than the forecasted 800 billion Yuan. This was the lowest loan number since late 2009. The real estate sector, where most of the country’s household wealth is, has been impacted, and concerns are rising around it.
Developer Country Garden announced this weekend that it suspended at least 10 mainland China-traded yuan bonds. Last week, it missed coupon payments on two U.S. dollar-denominated bonds, with its U.S. bonds accounting for just under half of outstanding high-yield U.S. dollar-denominated bonds.
Keep watching Fintech Express for more updates on finance and other fintech-related developments.
