What are some misunderstandings about cryptocurrencies
Cryptocurrencies are changing the financial world
The importance of cryptocurrencies as a payment and investment instrument is increasing, both on the consumer side and on the business side. Financial institutions should therefore deal with the topic sooner rather than later.
Top international news and trends around banking and financial services.
With the discussions surrounding the digital euro and the fact that companies as diverse as Microsoft and Tesla are announcing that they are accepting cryptocurrency and PayPal is adding crypto-based services for consumers, there are more and more good reasons to actively follow developments in the cryptocurrency space.
The latest hype has made this clear again. The discussions about Bitcoin, state digital currencies and investment opportunities in previously non-fungible asset classes show the breadth.
Cryptocurrencies on the rise
Most banks and savings banks, however, are not yet ready for the topic. It is all the more important to find out how to deal with it at an early stage. Smaller institutions in particular are faced with the challenge of gaining the necessary know-how to deal with the regulatory risks or the enormous potential volatility of cryptocurrencies. Partnerships with large banks or with FinTechs offer opportunities to gain a foothold in this area.
In today's review of interesting contributions from the international financial scene - which is a little shorter due to the upcoming Easter holidays - some selected aspects of crypto currencies are in the focus.
How cryptocurrencies are democratizing the financial system
Cryptocurrencies and other technological innovations are paving the way for a more open and inclusive global financial system. Cryptocurrencies are growing in popularity around the world, and while they may not have reached widespread adoption yet, many in the industry are working to make sure this technology becomes accessible to all.
More on this here: How cryptocurrency is democratising our financial system
Advantages and disadvantages of digital central bank money
Central bank digital currencies (CBDCs for short) are, in simple terms, the digital version of the same fiat currencies that people use in their daily lives. They are becoming an increasingly popular topic and many governments and central banks are currently looking into developing their own CBDCs.
More on this here: Advantages and Downsides of Central Bank Digital Currencies
European Central Bank fights against CBDC myths
The European Central Bank has pushed back public “misunderstandings” about the digital euro and its future role as a substitute for physical cash. In particular, the ECB denies that it intends to abolish cash and to impose even lower interest rates on the digital euro for monetary policy reasons.
More here: ECB bids to bust CBDC myths
Investors' demands are increasing
A new generation of technologically advanced digital platforms and mobile tools is creating a new generation of investors who expect the same availability of toolkits, regardless of whether they are buying cryptocurrencies, digital assets, stocks, bonds or foreign currencies.
More on this here: How crypto held up a mirror to traditional investing
Digital central bank money or modernization of payment transactions?
Everyone is talking about central bank digital money (CBCD). Ultimately, the benefit of a CBDC is that individuals have universal access to instant, cheap (even free), and secure payments. However, this can also be achieved without a CBDC.
More on this here: Payments modernization before CBDC
Other interesting topics of the financial week
But there were other interesting articles:
Who Owns the Future of Financial Services?
With emerging FinTech services taking the financial world by storm, it seems like banks are facing an already lost battle. If customers expect the same level of agility and innovation from them as they do from FinTech startups, then incumbent banks must either find ways to develop new solutions faster or partner with companies that do it for them.
More on this here: Why the future belongs to banks, and not FinTechs
Banks and FinTechs need a CPO
More and more banks and FinTechs are entering into partnerships with other financial players and players from other industries in order to provide value-added services wherever and however the customer wishes. A Chief Partnership Office (CPO) would be a useful institution to manage these partnerships.
Find out more here: The partnership manager - A new key role in every bank and Fintech
Open banking offers new possibilities
APIs play a central role in bringing information and data together between organizations without the need to merge the individual operating systems. Among other things, they enable access to isolated data so that financial institutions can offer their customers personalized services.
Find out more here: How APIs Are Driving Change and Creating Opportunities in Financial Services
What exactly is banking as a service?
With the growing number of new banking and FinTech business models, it is becoming increasingly difficult to separate them from one another. This also applies to the term “banking as a service”. An overview through the jargon jungle of the new banking business models will help.
Find out more here: What the hell is Banking as a Service? And what is it not?
Challenges in corporate banking
In the world of corporate banking, it can be difficult to find a path that everyone will enjoy. The challenges from a bank's perspective can sometimes be very different from those of its customers.
More on this here: Corporate banking’s biggest challenges in 2021, and how to solve them
News about banks, FinTechs and other financial companies
Last week there were also some reports about new activities by banks, FinTechs and other financial companies that I would not like to withhold from you.
PayPal enables payments with cryptos
PayPal customers in the US can now pay with Bitcoin, Litecoin, Ethereum or Bitcoin Cash at millions of online merchants around the world.
More on this here: PayPal lets users pay in crypto
Austrians can pay with cryptos when shopping
The Nordic payment processor Nets is working with the cryptocurrency specialist Salamantex to enable the acceptance of Bitcoin, Ether and XRP at checkouts in Austria.
More on this here: Nets and Salamantex bring cryptocurrencies to shop terminals in Austria
Energy saving tips from the bank
ABN Amro offers customers a digital energy saving check that can be used to create a personalized roadmap to improve the energy efficiency of their own property.
More here: ABN Amro offers home energy savings check for customers
Visa with first transaction in USD Coin
Visa is the first major payment network to process transactions in USD Coin (USDC), a stablecoin that is pegged to the US dollar. Visa conducted the transaction in partnership with Crypto.com and used the USDC to handle the transfer over the open source Ethereum blockchain.
More on this here: Visa conducts first settlement transaction in USD Coin
Meniga wants to expand with green finance
The PFM pioneer Meniga has received additional funding of EUR 10 million. The funds are to be used for further investments in research and development and in particular for the further development of environmentally friendly banking products - building on the existing CO2 analysis.
More here: Digital banking solutions provider Meniga closes additional € 10M investment
Neobanks defend themselves against IBAN discrimination
Some leading FinTechs and neobanks have launched an initiative to combat discrimination through the IBAN in Europe.
More on this here: EU fintechs form iban enforcement coalition
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