Despite the change in the Fed policy making committee, which should involve a less severe approach towards interest rates, regulators in general become increasingly more aggressive when it comes to cryptocurrencies and fintech. At the same time, institutions recognize the importance of fintech – especially for what concerns inclusivity and sustainable finance – even if banks might no longer shoulder the risks involved in fintech firms’ business models. So, fintech doesn’t give up. Discover financial technology with FinTech Weekly, the free weekly newsletter that helps you to stay on top of fintech news and events.
The last months were really tough for crypto traders and enthusiasts, but maybe there’s worse to come. Regulators became more severe, and started filing lawsuits against crypto businesses and personalities. Moreover, they started designing regulatory frameworks for digital assets. What does the future hold?
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This is the downside of cryptocurrencies – they can be easily used online by scammers. According to The Guardian, global crime gangs are using some UK companies for scams – and there are over 150 fake companies, mostly tied to China.
The fall of FTX and the crypto winter, as we said, made regulators more severe. And this is evident also when it comes to the relationship between traditional banks and fintech firms. Recently, Binance announced that Signature Bank won’t process transactions under $100,000. It looks like banks are no more willing to absorb the risks related to the fintech-based financial system.
But despite all this, fintech doesn’t give up. The advantages it brings are so evident that even top institutions are considering including financial technology. The University of Utah, in partnership with the Stena Foundation, will create the Stena Center for Financial Technology with $65 million funds that in the next ten years will allow the creation of fintech degrees and certifications, start-up incubator and venture funds.
Power Finance, the 2-year old New York-based fintech firm, has been acquired by Marqeta – and this represents the first acquisition for the company. The payment for the acquisition will continue in the next few years, and will amount to $275.
As we often say, fintech is focused on inclusivity. India is a great example of this. According to The Times of India, India was one of the largest fintech adopters in the last few years. Going cashless makes it easier to manage transactions and finances, as well as more inclusive thanks to easier borrowing and remittances. Moreover, fintech manages to revolutionize the customer experience.
Elon Musk’s Twitter is going to allow payments directly on the social media platform. In fact, the company began to apply for the required licenses in the US and design the needed software. According to insiders, this won’t only allow users to make purchases directly on the platform, but also to better reward creators.
ChatGPT has been making headlines since it was created in November 2022. The artificial intelligence model is able to write creatively, answer questions, translate texts – but as naturally as a human being would do. This AI model is revolutionizing many markets, and real estate is one of these markets. According to CNN, many real estate agents are using ChatGPT for many tasks – from writing posts to creating legal documents.
Ginman, the German robo-advisor, added Markus Pertlwieser to its Advisory Board. This move comes after the decision to introduce digital assets as an investment option.