Industry Insights

European Central Bank – Public Consultation on a Digital Euro

The ECB launched a public consultation to obtain input from citizens and professionals on the potential economic and societal implications of issuing a digital euro. This input will be considered when deciding in mid-2021 if a digital euro project will be launched.

Central Bank Digital Currencies Emerging in the Caribbean

Many countries in the Caribbean have central banks currently working on CBDCs, including the Bank of Jamaica, The Central Bank of the Bahamas and the Eastern Caribbean Currency Union. CBDCs act as an opportunity for central banks to provide a technologically advanced representation of central bank currency. 

First Bitcoin ETF Launched in North America

The first publicly traded bitcoin exchange fund has been launched in the world, giving investors a more direct way to invest in bitcoin. This fund is different from a derivative or futures contract, as every time someone puts money into the ETF, bitcoin is purchased.

Gemini Launches First Interest-Earning Crypto Program in the U.S.

Gemini Earn is a new program that allows customers to earn interest on the 30 different cryptocurrencies. This program will run as part of the Gemini platform and will enable customers to transfer or purchase crypto and send it to Gemini Earn. Interest is compounded daily for any period of time, and no minimum balance is required.

Japan Prepares for Central Bank Digital Currency Pilot Program

As the acceleration towards a cashless society becomes more prevalant, many central banks are exploring the option of central bank digital currencies. Japan has recently released a report on their three-phase approach.

How a Pandemic Changed the Way Consumers Think About FinTech

Mckinsey & Company recently conducted a series of surveys to measure the habits of financial decision makers within 30 different countries. These surveys were conducted to better understand how consumers identified with fintech during the COVID-19 pandemic. 

Are We Ready for Self-Driving Banks?

Similar to how automotive laws, such as speed limits and turn signals, have been designed to protect against dangerous drivers and not dangerous cars, legacy banking regulations seek to regulate bankers, not banks. Blockchain technology and decentralised finance are delivering banking services through "self-driving banks", and regulators should revisit what a regulatory framework would look like in this new world.

OCC Recognizes Decentralised Networks and Stablecoins as Payment Rails

The Office of the Comptroller of the Currency of the United States has announced that national banks and federal savings associations may participate in independent node verification networks and use stablecoins to perform bank-permissible functions. As a result, Cayman-based banks may be afforded the opportunity to access a new, open, global payment infrastructure system that is active and accessible today.

U.S. Lawmakers Propose Bill That May Require Stablecoin Issuers to Acquire Bank Charters

The STABLE act has been recently introduced with a focus to ban any stablecoin that is not issued by a chartered bank. This bill would target dollar-denominated liabilities rather than non-bank dollar-denominated liabilities, such as Apple Pay, Google Pay, Paypal, Moneygram or Western Union, and may have unintended far reaching consequences for participants on a network with dollar-denominated stablecoins. 

European Central Bank - The Future of a Digital Euro