Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Blockchain, Crypto, Digital Assets, Tokens, CBDCs, Stablecoins, Metaverse, NFTs
Blockchain Private Credit Grew 55% in 2023
Crypto Lending | Dec 20, 2023
Image: Unsplash/Traxer
In 2023, the crypto sector witnessed a remarkable rebound in private credit, with a 55% increase since the start of the year
This resurgence is particularly notable given the backdrop of last year's crypto crisis and the current environment of elevated interest rates. According to Bloomberg News, active private loans via digital ledgers have escalated to about $408 million as of November 28, 2023. This growth, tracked by RWA.xyz (See: Active loans value by procotcol), is significant though it still trails the near $1.5 billion peak of June last year and is a fraction of the traditional $1.6 trillion private credit market.
See: ‘Mugshot Edition’ Trump NFTs Blending Politics, Memorabilia and Digital Assets
Blockchain-based private credit offers lower borrowing costs compared to traditional credit, with some protocols charging less than 10%. This affordability, coupled with increased transparency and efficient liquidation mechanisms, makes blockchain-based credit increasingly attractive.
Industry Perspectives
Traditional private credit has been criticized for its opacity, as noted by Pimco and the European Central Bank. In contrast, blockchain protocols offer more transparency and faster liquidation processes, making them more appealing to borrowers and investors alike.
In the blockchain iteration of private credit, platforms including Centrifuge, Maple Finance, and Goldfinch facilitate the aggregation or provision of investor capital. Commonly, these protocols employ the Ethereum blockchain and stablecoins such as USDC, which are anchored to the US dollar's value. Borrowers then access these funds, adhering to conditions embedded within smart contracts.
See: TransUnion Offers Credit Scores for DeFi Borrowers Utilizing Crypto Assets
These protocols adopt measures like loan structuring or backing loans with tangible assets, enhancing the trust of investors. Data from RWA.xyz shows that consumer, auto, and fintech sectors are leading in blockchain-based private credit utilization, followed by real estate, carbon projects, and crypto trading.
Outlook
The crypto industry still faces challenges, including banking access and the absence of a credit rating system in crypto lending. However, the industry is adapting, with platforms like Maple Finance and Goldfinch providing innovative lending solutions. The 55% jump in private credit within the crypto sector in 2023 shows the sectors resilience and adaptability.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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OSC: 2023 Canadian Crypto Survey Insights
Crypto Survey | Dec 19, 2023
Image: OSC Crypto Asset Survey 2023
Canadian Crypto Ownership Drops 23% YoY According to the OSC's 2023 Crypto Asset Survey Results
This is the second year the OSC has commissioned its annual Crypto Asset Survey of Canadians. Here's the link to last year's survey results back in 2022. The survey aimed to understand engagement with crypto assets, knowledge variations across demographics, sources of information, and changes over the past year by digging into 5 primary research questions.
See: Canadian Regulators Set Expectations for Crypto Asset Investment Funds: A Comprehensive Overview
- How often do people engage with crypto assets, and what are the differences between those who do and those who don't?
- What is the level of knowledge about crypto assets among different age and income groups and how does it differ based on their investment experience?
- What are the common sources of information about crypto assets for different groups of people?
- What kinds of information sources influence people's actions and understanding related to crypto?
- How have people's engagement, knowledge, and sources of information about crypto assets changed compared to last year?
The 2023 crypto survey was administered by ipsos and involved an online survey of 2,360 Canadians, including over-sampling of crypto owners to ensure a minimum sample size of 500. The survey was fielded from May 16 to June 7, 2023, and weighted to reflect the Canadian population composition. Note, that this was before (or just as) crypto markets started their recent run-up.
Overview of 2023 Survey Results
There's a plethora of information in the 73 page PDF survey results presentation deck. Below are select findings to provide a flavour of what one will find by reviewing the full 2023 Canadian Crypto Survey Results.
Engagement and Owner Profile
- Decreased ownership: In 2023, only 10% of Canadians owned crypto assets, down from 13% in 2022.
- Crypto owners are predominantly men, aged 25-44, with high education and income levels.
- The decline in engagement with crypto assets is evident, with fewer Canadians owning them in 2023 compared to 2022. However, those who do own crypto tend to hold a higher market value on average.
Knowledge and Demographics
- Slight increase in knowledge. 54% of Canadians correctly identified the definition of crypto assets in 2023, up from 51% in 2022.
- Higher knowledge among younger Canadians (18-34), men, and those with higher incomes.
- There is a marginal increase in the overall knowledge about crypto assets. Younger Canadians and those with higher incomes show greater understanding. Men and investors, particularly self-directed ones, demonstrate higher knowledge levels.
See: Record 2023 US Crypto Lobbying Expenditure
Sources of Information
- Diverse information sources including family, friends, colleagues (34%), and social media influencers (23%).
- Use of the provincial securities regulator website as a source rose to 10% in 2023 from 7% in 2022.
- Interestingly, nearly 80% of investors (with financial advisors) have not been recommended to purchase crypto assets by their advisors.
- 45% of respondents reported seeing crypto asset advertising, a considerable decline from 65% in 2022.
Changes Over the Past Year
- 20% of Canadians planned to purchase crypto assets in the next 12 months in 2023, down from 31% in 2022.
- Over the past year, there's been a decline in the engagement with and interest in crypto assets. Knowledge about crypto assets has slightly increased, but the sources of information and reasons for purchasing crypto assets remain consistent with the previous year.
The detailed findings from the survey provide insights into the current state of crypto asset engagement, understanding, and the influence of information sources on investor behavior.
Cautionary note to readers: NCFA is constantly looking for more data and analysis, and as such, we support this and other surveys however note when reading the survey results, its important to understand the context in which the surveys was conducted. It's crucial to recognize that the way questions are framed and the data is presented can significantly influence the interpretation of the results. Be on the look out for any bias against crypto, which could have influenced the survey's design and its findings. The survey focuses on direct ownership of crypto assets, but what about indirect ownership (e.g., through ETFs or companies like LQwD) which is also significant? This raises questions about whether the survey fully captures the extent of crypto engagement. The survey doesn't compare crypto with other high-risk investments like gold. Such a comparison could provide a more comprehensive view of how crypto fits into the broader investment landscape. There's a need for a more extensive survey that includes all high-risk investments, which would help in understanding crypto's place in the wider economy. There's concern about the apparent lack of knowledge among investors and the advice being given to purchase crypto, especially to those with a low tolerance for risk. This points to a need for better education and guidance in the crypto investment space. What actions will does the OSC intend to take to address these issues, particularly in educating investors and ensuring they make informed decisions aligned with their risk tolerance. In summary, while the OSC 2023 Canadian Crypto Survey provides valuable insights, it's important for readers to consider the potential biases, the context of the data, and the broader economic and investment landscape when interpreting the results. There's a need for more comprehensive and balanced approaches in studying and reporting on crypto investments. Have a comment or concern? Contact us: info@ncfacanada.org
Download the 73 page PDF --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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OMFIF Podcast: Smart Contracts and Retail CBDCs
Podcast | Dec 18, 2023
Image: OMFIF Podcast
On demand OMFIF podcast available, titled "Unlocking the benefits of smart contracts for retail CBDCs"
Speakers
- Katie-Ann Wilson, Managing director of OMFIF’s Digital Monetary Institute
- Peter Faykiss, Director of digitalisation at Magyar Nemzeti Bank
- Imre Kocsis and László Gönczy, Associate professors at Budapest University of Technology
- Chris Ostrowski, CEO of SODA
See: BoC: Redefining Financial Inclusion for CBDCs
The discussion centers around the concept of programmable money and its potential impacts on the use of money in society. Key topics include:
- The Bank for International Settlements’ Project Rosalind and its significance in the development of central bank digital currencies (CBDCs).
- Real-life use cases for CBDCs utilizing smart contracts.
- The technical models employed in this context.
Transformative Potential for Retail Sector
CBDCs could transform the retail sector, emphasizing customer experience, loyalty programs, smarter service contracts, and micropayments. CBDCs, being digital, simplify international transfers and reduce transaction fees, potentially leading to significant financial savings for retailers and consumers. The use of smart contracts in CBDCs can automate processes, especially for big-ticket items.
See: Autonomous IoT Transactions and Micropayments
Additionally, CBDCs could enable micropayments by bypassing high transaction fees, impacting business models like publishers charging for individual articles.
- Enhanced customer experience and reduced transaction fees
- Transformative potential for loyalty schemes
- Efficient automated processes through smart contracts
- Micropayments becoming more feasible
Consideration for CBDCs on Businesses
The potential impacts of retail and wholesale CBDCs on businesses. Apart from the much discussed privacy related issues, considerations for using retail CBDCs in practice, including the handling of disputes in transactions without intermediaries. Central banks might require customers to pay for private sector insurance to cover disputes, which could make CBDCs more expensive than traditional payment methods.
See: Bank of Canada Publishes Staff Paper on ‘Unmet Payment Needs and CBDCs
The uptake of CBDCs, as seen in China's pilot project with the e-Yuan (Also see: China’s CBDC: Offline Digital Yuan Payments via Super SIM Cards), has been underwhelming, prompting central banks to consider how to compete with commercial payment processors.
- Retail CBDCs may involve complex dispute resolution processes
- Potential for higher costs due to insurance for dispute coverage
- Competition with existing private-sector payment processors
Conclusion
This comprehensive discussion on the OMFIF podcast offers valuable insights into the future of money, highlighting the transformative role of CBDCs and smart contracts in both retail and business contexts.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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FASB Introduces New Crypto Accounting Rules
Crypto Accounting Rules | Dec 18, 2023
Image by Freepik
The Financial Accounting Standards Board (FASB) introduces the first-ever US crypto accounting rules
Previously, without specific US accounting rules for digital currencies, companies treated cryptocurrencies as intangible assets. This approach meant recording these assets at the purchase price and marking them down permanently if their value decreased, with gains only recognized upon sale. This method often negatively impacted the earnings of companies heavily invested in cryptocurrencies.
New Rules
- Under the new rules, companies must record their cryptocurrency holdings at fair value.
- This method aims to reflect the most current value of these assets, a departure from the outgoing practice that only allowed recording the lowest value.
- This change is significant for companies holding cryptocurrencies as it allows them to report both the increases and decreases in the value of their holdings, affecting net income.
- Companies will need to make a separate entry for crypto assets on their balance sheets and provide detailed disclosures in their financial statements.
- Determining the fair value of cryptocurrencies, given their inherent volatility, requires robust valuation methodologies.
- Companies will need to disclose their valuation methods according to ASC 820.
- Canadian firms will need to stay abreast of evolving best practices and perhaps develop new tools and frameworks to accurately reflect the value of their digital assets.
- The rules are set to take effect for fiscal years beginning after December 15, 2024, which means they will apply from 2025 for companies with a calendar year-end. However, companies have the option to adopt the rules earlier.
- The new rules have a narrow scope, intentionally excluding non-fungible tokens (NFTs), stablecoins, issuer-created tokens, and wrapped tokens. FASB may consider expanding the scope in the future if these assets become more prevalent in practice.
Reaction
The crypto industry, including companies like Marathon Digital and MicroStrategy, has welcomed these rules. Standardized accounting for cryptocurrencies is expected to boost investor confidence and potentially lead to broader adoption of digital currencies.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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‘Mugshot Edition’ Trump NFTs Blending Politics, Memorabilia and Digital Assets
NFTs | Dec 15, 2023
Image: Unsplash/Library of Congress
In a move that blurs the lines between politics, memorabilia, and the burgeoning world of digital assets, former U.S. President Donald Trump has launched a the 'Mugshot Edition' Suit NFT Collection
- On offer, 100,000 digital collectible cards, minted on polygon, called the "Mugshot Edition" are being sold by NFT INT, the official licensee of the Trump name and image for digital trading cards.
See: El Salvador Update: ‘Volcano Bonds’, Bitcoin City, Crypto Visa Program
- Each card is being sold for $99, however for customers who purchase the entire set of 47 cards for $4,653, they will also receive a physical collectible card in the mail including 1 piece (of 2024 pieces) of the infamous blue suit and red tie Trump wore when the now famous 'mugshot' photo was taken. This innovative approach to NFTs combines physical memorabilia with digital ownership, a concept that is relatively new in the world of digital assets.
Trump announcing that if you buy all 47 of his new ‘Mug Shot Edition’ digital cards for $4,653, you will get an autographed piece of the suit he wore when he was arrested. pic.twitter.com/zpuoYCF6dS
— Ron Filipkowski (@RonFilipkowski) December 12, 2023
Reaction
The launch of Trump's "Mugshot" NFTs has stirred up prices for his previous NFTs, indicating a significant market reaction. This move has been seen as an attempt by the former president to profit from his recent legal scandals, tapping into the burgeoning crypto market. The collection has sparked a range of reactions, from enthusiasm among collectors and Trump supporters to skepticism and criticism from others.
See: LA-Based Entertainment Company, Impact Theory, Faces SEC Charges Over Unregistered NFT Securities Offering
You can check out the trump collection market value and NFT price at nftpricefloor. As the world of NFTs continues to expand, it will be interesting to see how other public figures and historical events are immortalized in this digital format.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Ledger’s Hardware Wallet Exploited
Crypto | Dec 15, 2023
Image: Unsplah/Azamat E
A Wake-Up Call for Crypto Security. On December 14, Ledger's Connector Kit software was exploited.
Ledger, known for manufacturing physical cryptocurrency wallets resembling USB drives and other storage devices, was compromised affecting multiple Ethereum-based applications, including Zapper, SushiSwap, Phantom, Balancer, and Revoke.cash, due to a security breach in Ledger's system.
While the exact number of affected decentralized apps (dapps) and the total financial loss are still being assessed, anecdotal reports suggest widespread exploitation. Blockaid, a blockchain security firm, estimated losses of over $150,000 in crypto due to this unique “supply chain attack” on Ledger’s Connect Kit. Others reported the draining of over $600,000 from users' wallets.
See: Jamie Dimon Advises Government to ‘Close Down Crypto’
Ledger CEO Pascal Gauthier described the hack as an “isolated incident” and fixed the malicious code and promised stronger security controls. The exploit, which lasted less than two hours, was attributed to a phishing attack targeting a former employee. Ledger assured that their hardware and Ledger Live platform were not affected. They advised users to use the “Clear Sign” feature for transactions to ensure direct interaction with Ledger’s software.
FINAL TIMELINE AND UPDATE TO CUSTOMERS:
4:49pm CET:
Ledger Connect Kit genuine version 1.1.8 is being propagated now automatically. We recommend waiting 24 hours until using the Ledger Connect Kit again.
The investigation continues, here is the timeline of what we know about…
— Ledger (@Ledger) December 14, 2023
The crypto community's response, including assistance from entities like Tether and Chainalysis, highlights the collaborative effort in addressing such security breaches. These breaches not only affect individuals and projects but also tarnish the reputation of industry. Security expert Steve Gibson emphasized the need for skepticism in an industry with a history of significant hacks.
Moving On
The Ledger hack is a reminder of the ongoing challenges in ensuring the security of digital assets. Users are advised to exercise caution and stay informed about the security of their digital assets, especially when interacting with decentralized applications.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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SEC Progresses Talks With US Bitcoin ETF Issuers
Bitcoin Regulation | Dec 13, 2023
Image by pvproductions on Freepik
Bitcoin exchange-traded funds (ETFs) listing discussions between the SEC and asset managers have progressed suggesting that the SEC may soon approve these innovative financial products.
Here's what you need to know:
- As reported by Reuters, the talks have reached a stage where key technical aspects are being discussed. This includes custody arrangements, creation and redemption mechanisms, and investor risk disclosures indicating a readiness to consider Bitcoin ETFs seriously.
- The SEC began meaningfully engaging with issuers following a federal appeals court ruling that the agency failed to justify its rejection of Grayscale's ETF application. This has led to a more constructive dialogue between the SEC and ETF issuers.
- Thirteen firms, including Grayscale Investments, BlackRock, Invesco, and ARK Investments, have pending applications with the SEC for ETFs tracking the price of Bitcoin. The SEC has until January 10 to decide on ARK's filing, which is first in line.
- Industry leaders express optimism, with ARK CEO Cathie Wood stating, "The odds of several applications being approved had gone up," reflecting a positive sentiment among market participants.
See: El Salvador Update: ‘Volcano Bonds’, Bitcoin City, Crypto Visa Program
- A spot Bitcoin ETF would be a massive milestone, offering investors access to the world's largest cryptocurrency through the regulated stock market. The demand for such a product is expected to be high, with estimates of up to $3 billion in the initial days.
- Despite the progress, there are still unresolved issues, such as whether issuers will create a cash or an "in-kind" settlement mechanism. SEC Chair Gary Gensler, known for his negative stance on crypto, has not indicated a timeline for considering the ETF filings.
Nothing groundbreaking to report but 4 different issuers have met with the SEC regarding their #Bitcoin ETF filings in last few days. @BlackRock met with them yesterday for the third time in as many weeks. While @Grayscale, Franklin, and @Fidelity each had meetings last week pic.twitter.com/5gwBk83m0o
— James Seyffart (@JSeyff) December 12, 2023
Outlook
This development is crucial for investors and financial institutions alike, as it could lead to increased acceptance and integration of cryptocurrencies into diversified investment portfolios. It also sets a precedent for how regulatory bodies globally might approach emerging financial technologies, balancing innovation with investor protection.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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