Gatekeeping The Gatekeepers Big Tech And Banking Licenses
The growing interconnectedness between the traditional financial system and cryptos is demonstrated by the potential for, and the implications of, Big Tech firms and other digital asset firms taking stakes in or owning banks and financial services companies.
In January 2022, a paper by the Bank for International Settlements Financial Stability Institute assessed the benefits and risks of extending banking licenses to Big Techs and fintechs. The findings are based on publicly available licensing requirements in seven jurisdictions covering Asia, Europe and North America.
The paper compares the merits of bank ownership by tech firms in relation to ownership by commercial or industrial non-financial companies .
The perceived benefits of allowing tech firms to operate with a banking license are compelling but require scrutiny.
Bank for International Settlements Financial Stability Institute
The perceived benefits of allowing tech firms to operate with a banking license are compelling but require scrutiny, the paper says. Unburdened by legacy infrastructure, tech firms can offer superior technology and user-friendly apps that may allow them to reach more consumers and perform various aspects of the banking business more efficiently than incumbents, including commercial or industrial NFCs that may own banks.
Bank Of America Files Patent For Blockchain
Bank of America has filed another blockchain patent, documents with the USPTO reveal.
The American multinational investment bank stated that it would use blockchain, the underlying technology which powers the worlds leading cryptocurrency Bitcoin, to handle some portions of its cash handling devices. The patent, titled Banking Systems Controlled by Data Bearing Records, mentioned blockchain around 58 times, indicating how the digital ledger technology would improve their traditional cash deposit and withdrawal protocol.
A cash handling device, in general, assists banks in dispensing, counting, and tracking their cash flow to prevent thefts and minimizing management time for oversight of cash drawer. The Bank of Americas patent proposes to utilize a blockchain distributed database for the recordkeeping of cash transactions between two financial entities. As the document reads further, it describes the blockchain database as a go-to system for identifying deposit items received from the previous cash handling device.
It also credits its blockchain-integration for enabling other cash handling machines to approve withdrawals, and for understanding the cash transportation needs of other devices in the distributed network. The document added:
A Positive And Transformative Force
Cryptos have huge potential to be a positive and transformative force for the future of financial services. The point was made in a November 2021 speech by Carolyn A Wilkins, an external member of the Financial Policy Committee at the Bank of England.
Wilkins said she saw crypto-assets as the bedrock of the emerging financial ecosystem. The opportunities and risks extend well past the crypto-assets themselves to encompass a rapidly expanding range of financial services, from lending to insurance, she said. The future of this new frontier will depend critically on the regulatory response to these new activities and how fast the traditional financial system modernizes, and there will need to be major investment in domestic and cross-border payments, as well as digital governance, she said.
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Us Sanctions Crypto Mixing Service Tornado Cash
The U.S. Department of Treasury sanctioned a crypto mixing service known as Tornado Cash on Monday because of its ties to Lazarus Group, a well-known cohort of hackers run by the North Korean state. The group is known to use stolen funds to help North Korea fund its nuclear weapons program. Services like Tornado Cash obscure the source of crypto transactions by shuffling together batches of transactions. Anyone in the U.S. is now prohibited from interacting with the service or any of the ethereum wallet addresses tied to Tornado Cash.
Best Way To Structure Your Relationship With Your Ontario Real Estate Coach
The best way to structure your association with your real estate mentor is to create mutually aligned incentives by splitting in the profits fifty-fifty so that when you make money, the mentor earns money. That way, when you win, your mentor succeeds too. And perhaps just as important, if a deal is falling apart, your coach stands to miss out that money too so they are motivated to help put the deal back together. That’s how our company works. We coach creative real estate investing across this country by splitting the profits fifty fifty with the people we mentor to ensure success is achieved. To learn more, check out our Apprentice Program or call us at 909-366-4130. If you’re interested in mastering creative real estate investing, we could be your Ontario real estate coach. But we’re a small, close-knit group so we only have a limited number of openings, we choose not to oversaturate any one area and we choose to only mentor those who are 100% committed to becoming successful creative real estate investors. So, unfortunately, we don’t accept every person that applies. But, whether or not we are able to work together, hopefully now, after reading this article, you can make a much more informed decision when searching for a Ontario real estate coach and mentor.
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Bank Of America Offers Bullish Outlook For Defi And Nfts
is a trend that has barely started money is the easiest application and the Bitcoin use case started there, said Bank of America.
The Bank of America Corporation has published a research report offering a bullish outlook for the long-term prospects of cryptocurrency.
The report, published on Monday by BoA subsidiary, BofA Securities, offers a nuanced appraisal of the digital asset sector that highlights innovation taking place within the decentralized finance and nonfungible token sectors.
The report asserts that the cryptocurrency sectors $2.15-trillion market capitalization is too large to ignore, highlighting that the digital asset ecosystem has evolved to encompass so much more than just Bitcoin .
The report characterizes the sector as comprising tokens that act like operating systems, decentralized applications without middlemen, stablecoins pegged to fiat currencies, central bank digital currencies to replace national currencies, and non-fungible tokens enabling connections between creators and fans, adding:
For us, digital assets are not about payments per se. Theyre about a new computing paradigm a programmable computer that is accessible everywhere and to anyone and owned by millions of people globally.
The report also highlighted the recent surging rates of crypto adoption, estimating that 221 million users globally had traded cryptocurrency or used a blockchain application as of June 2021 compared to 66 million in May 2020.
Latest Efforts From Bofa
BofA has already shown great interest in the blockchain space. With several dozen patents filed through June of this year, BofA is likely the largest holder of blockchain-related patents in the country. It even beats out tech giants like IBM . Still, while BofA is taking the lead on innovation in the blockchain space, the bank remains skeptical towards cryptocurrencies more broadly. BofA acquired a patent related to the development of a cryptocurrency exchange system in December of last year, but it has since clarified its opposition toward digital tokens, calling cryptocurrencies “troubling.” BofA also moved to ban clients from buying digital currencies with the bank’s credit cards. All of that opposition may be moot, though BofA has also admitted that it may be “unable” to compete with cryptocurrency, particularly if digital tokens go mainstream.
Investing in cryptocurrencies and Initial Coin Offerings is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns bitcoin and ripple.
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Ontario Real Estate Coach And Mentor
Looking for a great Ontario real estate coach and mentor? All great achievers have coaches. Nobody is “self made”. Behind every great real estate investor is a great real estate coach and mentor. But how do you find one that can help you to be successful in Ontario, CA? Ask yourself these 3 questions:
Boa And The Development Of The New Asset Class
Its recent research on digital assets was published after forming a specific working group on cryptocurrencies, and aims to highlight the most promising companies in the digital asset sector.
In the report, the crypto sector is described as too large to ignore, while digital assets are seen as a completely new asset class.
In addition to Bitcoin, the report mentions tokens that act as operating systems, decentralized applications without intermediaries, stablecoins pegged to legal tender, Central Bank Digital Currencies and non-fungible tokens .
The huge amounts of capital entering the sector in the first six months of 2021 are helping to create a new generation of crypto companies and new applications, across all sectors, including finance, supply chain, gaming and social media.
However, according to BoA analysts, we are still at the beginning of this innovative process.
The main uncertainty hindering the development of this sector is said to be related to regulation, but it is considered to be only a short-term risk.
Among the stocks mentioned in the report, Bank of America included PayPal and Coinbase, as well as Signature Bank, JPMorgan Chase, Morgan Stanley and SVB Financial.
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This Showed That Cryptocurrency Was Not A Safe Haven For Criminals Said Lisa Monaco Deputy Attorney General
In another high-profile example last year, former partners and associates of the ransomware group REvil caused a widespread gas shortage on the U.S. East Coast when it used encryption software called DarkSide to launch a cyber attack on the Colonial Pipeline. The DOJ recovered some $2.3 million in cryptocurrency ransom that Colonial paid to the hackers just days later.
Cases like these demonstrate that the DOJ can follow money across the blockchain, just as we have always followed it within the traditional financial system, said Kenneth Polite, assistant attorney general of the DOJs Criminal Division. This showed that cryptocurrency was not a safe haven for criminals, said Lisa Monaco, deputy attorney general.
Richmond Hill Ico Development Company
A modern analog of IPO , the Initial Coin Offering is probably the quickest way for a startup in Canada to boost its financials with the help of external investments. For the ICO to be performed securely and properly, an experienced and trusted ICO consulting company in Richmond Hill is very much recommended and this is even more important in scope of the numerous scam cases in the cryptocurrency and blockchain industry.
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Bank Of America Blockchain And Crypto Market Capitalization
Last year in the same period, it was only 5.5 billion, so it tripled in one year.
The overall capitalization of the crypto market last year had risen from 190 to 260 billion in the first six months, while this year it exceeded 2,500 billion, and then closed the second quarter at 1,400.
Yesterday, Bank of Americaannounced its own research into digital assets, with the publication of a report titled Digital Assets Primer: Only the first inning, which was written by the banks Head of Global Cryptocurrency and Digital Assets Strategy, Alkesh Shah.
BoA believes that digital assets have the potential to transform every sector of the economy, improving efficiency and reducing transaction bottlenecks. According to Shah, Bitcoin is important but the digital asset ecosystem is much more so.
It is worth mentioning that Bank of America is one of the worlds leading financial institutions, with approximately 66 million customers, 17,000 branches, capital support for 3 million households and small businesses, and a presence in 35 countries worldwide. The shares of Bank of America Corporation are listed on the New York Stock Exchange, and gained 42% during 2021.
Banks Tried To Kill Crypto And Failed Now Theyre Embracing It
Digital payments technology is forcing the financial system to evolve. Banks feel their power waning and want to regain control.
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In 2014, as regulators in New York were exploring ways to control Bitcoin, executives at Wall Streets biggest banks fretted that regulating cryptocurrencies would also legitimize them and that could threaten the finance industry. So they tried to sow doubt.
At the World Economic Forum in Davos that year, Jamie Dimon, the chief executive of JPMorgan Chase, the nations largest bank, called Bitcoin a terrible store of value that was also being used for illicit purposes. At a meeting to discuss violations of Iran sanctions, H. Rodgin Cohen, the finance industrys pre-eminent lawyer, warned the states regulators that the federal government was very worried about Bitcoin and its use.
Those efforts failed. New Yorks Department of Financial Services began issuing licenses for Bitcoin businesses in 2015. There are now more than 75 million users of Bitcoin, up from around three million seven years ago, and the number of digital currencies has exploded. Globally, 220 million people use cryptocurrencies, according to a July report by Crypto.com.
Lananh Nguyen and Kate Kelly contributed reporting.
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Blockchain & Cryptocurrency Events
Attending a blockchain and/or cryptocurrency conference can be a valuable educational opportunity and networking experience, while also potentially having a positive impact on your career, business, and life.
They can help you better understand what is currently taking place in the world of blockchain and crypto, whats to come and can also help you discover new opportunities as an entrepreneur or investor.
There are many types of conferences and events to choose from each year, some more valuable than others, and each typically having a specific theme and target audience.
Some conferences focus on crypto investors and enthusiasts, others on blockchain industry participants, blockchain developers, industry disruptors, and any combination of all of the above.
Conferences can be sponsored by private groups, academic institutions, consortiums, blockchain projects, platforms, developers, and other organizations, including the popular Ethereal Summit put on by Consensys, and cryptocurrency and dApp platform TRON, with there niTROn Summit.
When choosing a conference to attend, first review your specific goals for attending such as educational opportunities, networking, business potential etc. and compare it to the conference’s agenda, the level and complexity of the content offered, , meeting format, the quality and type of speakers, networking opportunities, and of course the cost and location.
Boa Says The Biggest Companies Could Benefit
Contents
The market for blockchain products is still young. Many people in the corporate world never even heard of blockchain until cryptocurrencies went on a moonshot last year. Now hundreds of millions of dollars are entering the space, but blockchain technology could get a lot bigger.
After the BoA research was made public, BoA analyst Kash Rangan commented to CNBC on how well blockchain could fit into the existing corporate world. To wit,
Amazon will benefit from incremental cloud services demand from Blockchain implementation, while improved supply chain tracking should make Amazons retail operations more efficient. He went on to state that, full products/services have not yet been built out and are not used in production.
For a technology that was only introduced a decade ago, blockchain has come a long way. The last two years have seen a big upswing in development money being plowed into blockchain projects. Singapore-based blockchain start-ups raised more than half a billion dollars in the second quarter, and the pace of investment doesnt seem to be slowing down.
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The Only Way Banks Can Fully Embrace The Blockchain Technology Now Transforming Finance Is By Dealing In Cryptos
Any leading bank publishing its first research piece on the cryptocurrency market needs to offer something meaty.
Alkesh Shah, a former tech sector strategist and analyst and now global crypto and digital asset strategist at Bank of America, proved himself up to the task on Monday, putting out a 141-page first note.
The opening sentence says everything. With a $2 trillion plus market value and 200 million plus users, the digital asset universe is too large to ignore. While Shahs opening observation is aimed at investors, the same message is now finally getting through at the top of the banks, hence his own new role.
Candace Browning, head of BofA global research, says: Digital assets are transforming the way in which markets, businesses and central banks operate. Bank of America offers a market-leading global payments platform and blockchain expertise, and the addition of digital asset research further strengthens the depth and breadth of our offerings for investors.
Digital assets are much more than a form of money
Compendium: Cryptocurrency Regulations By Country
In 2021 digital assets moved from the fringes of the economy and began to enter the mainstream, prompting more widespread public adoption. Commercials for crypto trading platforms blanket network television in the United States and the sector has become a focus of everyday conversation.
In November 2021, with bitcoin prices peaking around the $60,000 level, the total value of all cryptocurrencies surpassed $3 trillion, an increase from approximately $500 billion in December 2020. Today there are more than 16,000 individual cryptocurrencies in circulation, led by bitcoin. Total daily trading volumes are now estimated to be more than $275 billion on more than 400 platforms.
2021 was a transformative year for digital assets, and the stage is set for regulators to build a framework to govern this massive new market. Thus far, the regulatory response is best described as ad-hoc, rhetorical or driven by enforcement in some instances. The challenge in such a new and disruptive area will likely take years to finalize. Adding to the challenge is the ambiguous nature of digital assets themselves and the lack of standardized definitions, thus creating questions of overlap and jurisdiction.
The regulatory framework is evolving rapidly and changing quickly. Some jurisdictions have imposed outright bans while others are staunch advocates.
Complete restrictions are rare and difficult to enforce, but regulators are scrambling to clarify rules to keep pace with cryptos popularity.
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