Anti-establishment and counter-government sentiments fuelled the early days of crypto. More than a decade later, crypto is slowly moving away from its wild-west early days and into a more organized system that traditional financial institutions are reluctantly adopting. Crypto has also managed to attract the no less reluctant attention of various regulators. With reactions ranging from a complete ban on crypto transactions to making authorities question the overall role of regulation, cryptocurrencies have wreaked havoc on policymaking everywhere. So far, regulators have mostly focused their attention on positioning digital assets within existing financial regulations. However, experts in other areas of …

The pandemic has seen consumers adopt digital payments in increasing numbers and the trend was accelerating, said the President of the European Central Bank (ECB) Christine Lagarde. She also indicated a panel of euro-zone central bank officials is set to reveal a verdict on a European central bank digital currency (CBDC) imminently. Speaking at an online conference hosted by Deutsche Bundesbank on Sept. 10, Lagarde, stated that EU residents had embraced digitalization, with e-commerce sales increasing roughly 20% between February and June, even as total retail sales declined 1.2%. She said the volume of online payments had experienced “double-digit growth …

Ethereum recently turned five years old, and coincidentally, it also appears to have reached an inflection point for user adoption. In the second quarter of 2020, daily active Ethereum users nearly doubled to 1.26 million, up from 637,000 in the first quarter, according to a recent report from Dapp.com. The sudden spike is widely attributed to the release of Compound’s COMP governance token. In the same report, several other numbers stand out. Notably, after Ethereum, the two blockchains with the most daily active users are Klaytn and Terra, with Klaytn having been far ahead of Ethereum in daily active users …

While Facebook’s Libra project might have shaken the United States government the most, the aftershocks were felt all over the world. The European Union was no exception: The publication of the first Libra white paper in 2019 led to the acknowledgment that the EU was not prepared for what appeared to be the first global stablecoin that would have a direct effect on the European financial market, retail payments and its overall economy. In the words of both the European Council and the European Commission (the EU’s supreme political body and executive arm, respectively), “No global ’stablecoin’ arrangement should begin …

The COVID-19 pandemic has certainly accelerated the digitalization of economies across the globe, opening up discussions on the future of digital financial services and whether our economy should advocate for the financial inclusion of Bitcoin (BTC) and other digital assets. Yet, despite the horror we have been seeing as our industries continue to suffer, the digital payments industry is expected to thrive, based upon recently reported data from the Consumer Confidence Index. Reaching a three-month high last month, consumer confidence data revealed a 12.1 jump from 85.9 in May to 98.1 in June. Last month when the United States Senate …

The European Union and the European Central Bank wanted to create a unitary legal framework that would limit the anonymity of cryptocurrency transactions, especially in the spectrum of money laundering, terrorist financing and tax evasion. The simplest method of control and probably the only one possible in the case of digital currency transactions is by checking the route of fiat currencies. Any purchase of digital currency with fiat money and vice versa is monitored through exchange providers. As there is no legal framework in the EU to provide a definition and regulation on digital currencies, digital foreign exchange services and …

The Bank of England is considering the issuance of a central bank digital currency — or CBDC — according to its governor, Andrew Bailey. Bloomberg reports that during a student webinar, the head of the Bank of England acknowledged that they are looking into the possibility of issuing a digital currency: “We are looking at the question of, should we create a Bank of England digital currency. We’ll go on looking at it, as it does have huge implications on the nature of payments and society. I think in a few years time, we will be heading toward some sort …

The ICO boom of 2017 failed thousands of investors worldwide, but it has also demonstrated how technology can improve the way companies raise capital. The obvious problem with the crypto market was the lack of regulation that has resulted in leaving investors unprotected. Seeking for an instrument that will combine both, the concept of a security token offering was introduced to the market just around the time when initial coin offerings were waving goodbye to investors. The hybrid of the ICO paradigm mixed with traditional financial instruments and proper regulation still seems like a perfect blend. But STOs aren’t even …

International interoperability will become the cornerstone of the CBDC race as it goes forward, according to Douglas Arner, director at Asian Institute of International Financial Law at the University of Hong Kong. Speaking at the Unitize blockchain conference earlier today, Arner argued that the interconnections between different global economic systems will become “one of the biggest challenges — and one of the biggest opportunities” as more countries are becoming involved in CBDC projects across the globe. In Arner’s view, the Chinese financial system already has some predispositions for the cross-border adoption of the upcoming digital yuan project, like the renminbi …

Monaco is one of the most exceptional countries on the planet. Its unique mix of scenery and history creates a blend that attracts tourists from all over the world. Anyone who has ever visited falls swiftly in love with its charm. Alongside its reputation for class, architecture and an outstanding grand prix circuit, Monaco has always seen itself as a “niche” financial-sector pioneer. Many people don’t realize that Monaco prides itself on its willingness to think “outside of the box” with respect to financial laws. This thinking shows a commitment to keep the country competitive on the international financial stage, …

Back in 2017, the Estonian government rocked the legislative side of the crypto world when they introduced a raft of new laws designed to support crypto projects. These licenses split into two different categories: those looking to operate a crypto exchange and those looking to undertake an initial coin offering. Both company types stood to benefit from the first “real” cryptocurrency licenses anywhere on the planet. As a result of these licenses, entrepreneurs digitally flocked to the small but great Baltic nation. The Estonian government was ahead in a number of ways. Not only was the country a trailblazer with …

As central bank digital currencies continue to be researched and tested by countries across the globe, it becomes more apparent that the United States dollar’s reign might be challenged once the concept is implemented on a regional scale. While most retail CBDCs focus on internal economic matters, some projects aim to facilitate trade relations within a specific region, forming a digital alternative to the greenback. The most eloquent example would be the East Asia cryptocurrency that was proposed earlier in June — a virtual asset backed by a basket of currencies including the Chinese yuan, Japanese yen, South Korean won …