NCFA Innovation 2019

Category Archives: Blockchain, Crypto, Digital Assets Regulations

Canadian researchers develop CBDC digital currency proposal for Bank of Canada

York University | Feb 16, 2021

Poonam puri york university CBDC proposal - Canadian researchers develop CBDC digital currency proposal for Bank of CanadaA proposal submitted to the Bank of Canada by a team of academic researchers from Osgoode Hall Law School and the University of Toronto (U of T) on what a central bank digital currency framework could look like in Canada has been selected as one of three proposals to be developed by the bank into a full report.

The bank is undertaking research to potentially launch a digital currency alongside the country’s banknotes, and invited universities to play a role in this innovation by entering the Model X Design Challenge.

The challenge was meant to encourage the development of “foundational ideas” for a central bank digital currency business model and system architecture (known as “Model X”), according to the bank. While no decision has been taken to issue a central bank digital currency, the Bank of Canada notes “it is working to design and develop one, along with a business model, as a contingency.”

A central bank digital currency is a digital unit of payment, comparable to digital coins such as Bitcoin, but that is issued and backed by a central bank as opposed to a private network. It has similar characteristics to cash, but instead of keeping it in a physical wallet you keep it in an online wallet that you can access using your cell phone or another electronic device. Its digital features make it a good alternative to traditional payment methods, such as credit or debit card payments.

In addition to the U of T/YorkU submission from Osgoode Professor Poonam Puri and University of Toronto Professors Andreas Veneris and Fan Long (Department of Electrical and Computer Engineering, and Department of Computer Science) and Andreas Park (U of T Mississauga’s Department of Management and the Rotman School of Management); the Bank also selected submissions from teams at McGill University and the University of Calgary.

See:  The Good, the Bad and the Ugly of Central Bank Digital Coins (CBDCs)

Each team was awarded a project fee to put toward the research competition, and the work of the team had to be a business school and computer science department collaboration.

The U of T/YorkU contingent worked on their overall model and recommendations as a team, but the technical components of their analysis were led by Veneris, Long and Park, with Puri focusing primarily on the legal, governance and policy implications of their design recommendation.

“We are recommending the implementation of a brand new currency/payment system, which obviously raises a number of novel legal issues and policy choices," said Puri, who is an expert in corporate governance, corporate law and securities law.

Puri said their legal analysis focused on four main issues.

  1. First, whether the Bank of Canada has the authority to issue a new digital currency, or if any amendments are required to its governing legislation (the Bank of Canada Act) to permit it to do so.

2. Second, consideration of the ideal regulatory framework to regulate participants in the new digital payments network.

See:  Better to get it right than to be first with CBDC, says US Fed chair

3. Third, how payment intermediaries would fit within anti-money laundering and counter terrorist financing (AML/CFT) laws.

“Canada has made a conscious effort in recent years to update its AML/CFT regulations and we wanted to make sure that our recommendation fits within the AML/CFT regulatory landscape to ensure that any central bank digital currency can’t be used as a vehicle for illegal activities.”

4. The fourth consideration was privacy.

“We prioritized privacy in order to ensure that any central bank digital currency closely resembles the privacy benefits that currently accompany traditional cash payments,” Puri said.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Canadian researchers develop CBDC digital currency proposal for Bank of Canada 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, 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

Latest news - Canadian researchers develop CBDC digital currency proposal for Bank of CanadaFF Logo 400 v3 - Canadian researchers develop CBDC digital currency proposal for Bank of Canadacommunity social impact - Canadian researchers develop CBDC digital currency proposal for Bank of Canada

CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!



FFCON20 Pitching and Demo Winners - Canadian researchers develop CBDC digital currency proposal for Bank of Canada



NCFA COVID 19 letter to government to support Fintechs and SMEs - Canadian researchers develop CBDC digital currency proposal for Bank of Canada

NCFA Newsletter subscribe600 - Canadian researchers develop CBDC digital currency proposal for Bank of Canada

 

Versabank to Launch VCAD, World’s First Bank-issued, Deposit-based Digital Currency

Versabank  Release | Feb 24, 2021

Versbank launches stablecoin - Versabank to Launch VCAD, World's First Bank-issued, Deposit-based Digital Currency

VersaBank Partners with Stablecorp to Complete Development of Digital Currency Offering – Will Create Significant New Low Cost Deposit Source for VersaBank as it Experiences Record Loan Growth

LONDON, ON, Feb. 24, 2021 /PRNewswire/ - VersaBank (TSX: VB) ("VersaBank" or the "Bank"), a North American leader in business-to-business digital banking and technology solutions for cybersecurity, today announced it plans to launch a strong encryption based digital currency (cryptocurrency) represented one-to-one by a Canadian dollar bank deposit with the Bank, to be known as VCAD.  VCAD is expected to be the first digital currency to represent a fiat currency, as well as the first in the world digital currency issued by and backed by deposits with a North American bank.  As such, VCAD will offer the highest level of stability and security amongst all digital currencies in the market today.

See:  A Brilliant Fintech Future – Banking on Stablecoins

VersaBank has entered into a strategic partnership with Stablecorp, a joint venture between Canada's leading crypto asset manager, 3iQ, and Mavennet, a Canadian leader in blockchain development, to commercially launch VCAD. VCAD is based on VersaBank's proprietary banking software and the digital currency issuance processes for VCAD will be securely managed via VersaVault®, VersaBank subsidiary, DRT Cyber Inc.'s ("DRT Cyber"), world leading digital bank vault designed to secure digital assets.  The Bank is targeting public availability of VCAD in the coming months.

Consistent with VersaBank's highly efficient, business-to-business model, VCAD will be issued by VersaBank to financial intermediary partners in exchange for Canadian dollar deposits with the Bank utilizing "smart contracts", a more highly encrypted iteration of the Bank's existing digital deposit contracts.  VersaBank's partners will then offer VCAD directly to individuals and businesses, who can use them for commerce and redeem them for Canadian dollars at any time.  VCAD creates a significant new low-cost deposit source for VersaBank as it experiences record loan growth.

"As North America's first bank-issued "stablecoin", VCAD offers consumers and businesses the ability to adopt and leverage the benefits of digital currency and blockchain-based assets without the volatility of traditional currencies, alongside the security of a value-backed asset that the cryptocurrency world has long demanded," said David Taylor, President of both VersaBank.

Its cyber security subsidiary, DRT Cyber. "Consumers and businesses purchasing products and services with VCAD will finally know the precise value of their digital currency when executing these transactions."

See:  UK Consultation (Mar 21, 2021): Regulatory Approach to Cryptoassets and Stablecoins

Mr. Taylor added, "VersaBank was the very first digital bank nearly 30 years ago and has continuously been a pioneer in digital banking in the decades since.  Digital currencies are the natural evolution of the world's payment systems, and the launch of VCAD is a natural extension of our digital banking operations as we once again leverage our in-house technology to lead the banking industry.  We are proud to work with our partner, Stablecorp, on this industry first."

"We are thrilled to partner with VersaBank, a Schedule I Canadian bank, to offer a digital currency that addresses the two major shortcomings of the traditional cryptocurrency market – volatility and security," said Jean Desgagne, CEO, Stablecorp. "VCAD provides consumers with not only the security afforded by an underlying deposit with a Canadian chartered bank but also the comfort of knowing that each VCAD issued or redeemed will always have one-to-one value with the Canadian dollar.  With such clear benefits, we are highly confident in the demand for VCAD as digital currencies increasingly become part of mainstream financial transactions."

In addition to VCAD, under their partnership, VersaBank and Stablecorp plan to work together towards the development and launch of "VUS" and "VEuro", deposit-based, US dollar and Euro versions of the VersaBank digital currency.

View the original release --> here

 


NCFA Jan 2018 resize - Versabank to Launch VCAD, World's First Bank-issued, Deposit-based Digital Currency 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, 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

Latest news - Versabank to Launch VCAD, World's First Bank-issued, Deposit-based Digital CurrencyFF Logo 400 v3 - Versabank to Launch VCAD, World's First Bank-issued, Deposit-based Digital Currencycommunity social impact - Versabank to Launch VCAD, World's First Bank-issued, Deposit-based Digital Currency

CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!



FFCON20 Pitching and Demo Winners - Versabank to Launch VCAD, World's First Bank-issued, Deposit-based Digital Currency



NCFA COVID 19 letter to government to support Fintechs and SMEs - Versabank to Launch VCAD, World's First Bank-issued, Deposit-based Digital Currency

NCFA Newsletter subscribe600 - Versabank to Launch VCAD, World's First Bank-issued, Deposit-based Digital Currency

 

Mastercard and Island Pay launch first digital currency card

Fintech Magazine | William Girling | Feb 18, 2021

IslandPay sand dollar - Mastercard and Island Pay launch first digital currency card

Finance giant Mastercard has teamed up with Island Pay to deliver a world first: a digital currency-linked payment card backed by a central bank

Held together by Central Bank of The Bahamas, the collaboration will enable people to use an official digital currency called ‘The Bahamas Sand Dollar’ for purchases via a prepaid card.

Transactions carried out with the card are automatically converted from digital to fiat currency and will be legal tender for goods and services on the islands (of which there are 700), as well as around the world.

See:  It’s instant – I get a message, and it’s received: Central bankers comb for crypto clues as Bahamas launches ‘Sand Dollar’

It is hoped that the Sand Dollar will create a more financially inclusive economy, promote more diverse purchasing methods, and facilitate government disbursements. The same value and protections will apply as the Bahamas’ traditional currency.

Modernising payments in the Bahamas

The Sand Dollar was originally trialled in 2019 and went on to become the first digital incarnation of a national currency in circulation late last year.

Mastercard’s virtual testing environment allowed developers to chart the issuance, distribution and exchange of the Sand Dollar in a simulated environment prior to its real rollout.

Island Pay’s role was to combine Mastercard’s technology and operational breadth with its own platform, which has been revolutionising payment solutions in the Caribbean through lower costs and higher quality service since it was founded in 2018.

“By working closely with the Central Bank of The Bahamas and Mastercard, we are able to issue a prepaid card unlike any other in the world. We are now able to bring immediate, critical benefits to our customers at a time when they are looking to find new, innovative ways to pay,” said Richard Douglas, Co-Founder.

See:  Visa’s digital dollar concept opens a door to central bank currencies

“The Bahamas is leading innovation in CBDCs (central bank digital currencies), and we’re thrilled to be able to play an important role in helping to democratise access to currency, especially in areas that are currently underserved.”

Continue to the full article --> here

 


NCFA Jan 2018 resize - Mastercard and Island Pay launch first digital currency card 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, 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

Latest news - Mastercard and Island Pay launch first digital currency cardFF Logo 400 v3 - Mastercard and Island Pay launch first digital currency cardcommunity social impact - Mastercard and Island Pay launch first digital currency card

CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!



FFCON20 Pitching and Demo Winners - Mastercard and Island Pay launch first digital currency card



NCFA COVID 19 letter to government to support Fintechs and SMEs - Mastercard and Island Pay launch first digital currency card

NCFA Newsletter subscribe600 - Mastercard and Island Pay launch first digital currency card

 

Bitfinex and Tether Fined $18.5M and Banned from Operating in New York

Bitcoin.com | Jeffrey Gogo | Feb 23, 2021

tether - Bitfinex and Tether Fined $18.5M and Banned from Operating in New YorkBitfinex and Tether have been banned from operating in New York and must pay a fine of $18.5 million as part of a settlement with the New York Attorney General’s (NYAG’s) office over a case dating back to 2019.

In a statement on Tuesday, NY Attorney General Letitia James accused the two entities of hiding severe losses from investors. “Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines,” said James.

See:  Are Stablecoins Better Than Bitcoin?

She continued: “Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie. These companies obscured the true risk investors faced and were operated by unlicensed and unregulated individuals and entities dealing in the darkest corners of the financial system.”

Per the statement, an NY Attorney General’s investigation found that the companies made false statements about the backing of tether, with Bitfinex using Tether’s funds to clandestinely cover an $850 million financial hole at its bank Crypto Capital in Panama.

Tether published a statement on Tuesday “admitting to no wrongdoing.” It argued:

The Attorney General’s Office concluded, in essence, that we could have done better in publicly disclosing these events. Contrary to online speculation, after two and half years there was no finding that Tether ever issued tethers without backing, or to manipulate crypto prices.

According to the investigation, from 2017, Tether had no access to the banking system and did not have reserves to back the tether (USDT) in circulation at the time. Bitfinex stresses that it did not lose any money, claiming Crypto Capital’s funds were confiscated by governments in Portugal, Poland and the U.S.

Read:  Price Discovery in Digital Currencies is Maturing

Bitfinex and Tether have now been barred from having any trading activity with the citizens of New York, as a result. The NYAG requested that the two companies submit regular reports on core business functions. Tether must also offer public disclosures, by category, of the assets backing tether, including disclosure of any loans or receivables to or from affiliated entities.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Bitfinex and Tether Fined $18.5M and Banned from Operating in New York 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, 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

Latest news - Bitfinex and Tether Fined $18.5M and Banned from Operating in New YorkFF Logo 400 v3 - Bitfinex and Tether Fined $18.5M and Banned from Operating in New Yorkcommunity social impact - Bitfinex and Tether Fined $18.5M and Banned from Operating in New York

CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!



FFCON20 Pitching and Demo Winners - Bitfinex and Tether Fined $18.5M and Banned from Operating in New York



NCFA COVID 19 letter to government to support Fintechs and SMEs - Bitfinex and Tether Fined $18.5M and Banned from Operating in New York

NCFA Newsletter subscribe600 - Bitfinex and Tether Fined $18.5M and Banned from Operating in New York

 

Want to launch an ecosystem? Consider Tokenization

2tokens Blog | Jan 14, 2020

Digital tokens - Want to launch an ecosystem?  Consider TokenizationTokens have been around for 1000s of years, but only recently have we seen the rise of digital tokens. Now, cryptographic tokens offer us an opportunity to redesign value streams and hence existing ecosystems. A well-designed token ecosystem unlocks value by bringing parties together in new ways and stimulates the target behaviour by having cryptographic tokens as built-in incentives. Tokens matter and offer a chance to redesign existing and new ecosystems.

On January 14, 2020, we had the second round table session organised by the 2Tokens initiative. The 2Tokens project aims to clarify the path to realising value from tokenisation. During the first round table session, we discussed why we need tokenisation, what is required to achieve value from tokenisation, and how we should move ahead with it.

Shared Understanding

Tokenisation, tokenomics and token engineering are new concepts and, for many, difficult to understand. Especially since often, these terms are used differently in different contexts. A shared understanding is not only relevant for building tokenised ecosystems, but it will also enable regulators and policymakers to address regulatory concerns in the right way. As such, it will foster a healthy public debate around tokenisation.

See:  Tokenizing Assets and Unlocking Value on the Blockchain

A shared understanding consists of precise terminology and taxonomy, international standards, useful metaphors to share with wider audiences and clear legal and regulatory frameworks. Since the field of tokenisation is very much alive, on-going coordination, education and engagement among all stakeholders is essential. A Token Coalition can manage this, or organisation such as the 2Tokens project, to ensure all stakeholders' requirements are met.  We define the terminology as follows:

  • Tokens: the digital representation of value (e.g. asset) on a blockchain.
  • Tokenisation: the process of changing value (e.g. asset) into its digital representative
  • Tokenomics: the study of the emerging field of the design of crypto tokens and related digital assets using economic incentives, game theory, cryptography and computer science.
  • Token engineering: the practice of using tokens as the foundation for designing value flows and ultimately economic systems
  • Purpose-driven tokenisation: leveraging the exchange of value to drive behaviours of an ecosystem towards a particular goal

Innovative Funding

For any ecosystem, funding is important. Tokenisation, however, changes how this funding can be achieved, going beyond traditional financing from venture capitalists or financial institutions. When an ecosystem plans to use tokens for funding, it can benefit from easy access to capital, anywhere in the world. Compared to traditional financing such as an IPO, the costs of financing are lower, and it is easier to scale as more people have access to the investment opportunity. After all, tokens do not know borders.

See:  BIGG Digital Assets Inc. to Reinvest Free Cash Flows From Operations into Bitcoin

Tokens offer multiple, technical, advantages over traditional funding. First of all, they are programmable. This means that governance and rules can be embedded within the token. For example, the longer you hold a token, the more dividend you will receive. This allows you to drive the behaviour of your investors while raising funds. In addition, tokens are transparent, secure and traceable, giving regulators more control to ensure correct behaviour.

With tokenised funding becoming the norm in the coming years, we can expect a shift from ownership to temporary ownership, as exchanging assets will become easy. As a result, previously illiquid assets will become liquid, thereby drastically changing economies. Anything can be tokenised and made liquid, including real estate (fractional ownership), CO2 rights, mobility, futures, art or even entire clubs and sport contracts to increase fan engagement.

Key to tokenised funding is the right infrastructure. This includes secondary markets to easily exchange security tokens, clear regulations so companies know what they have to comply with, and an intuitive user interface to facilitate ease of investment. When the right tools are available, tokens will revolutionise funding opportunities.

Change Management

Developing an ecosystem is one thing; getting people to use it is a different challenge. Although tokens can drive behaviour, people will need to change their behaviour to participate in tokenised ecosystems. It can be expected that there is a resistance to change because people don’t understand the new ways of interacting.

See:  For Digital Assets, Private Markets Offer the Greatest Opportunities

To tackle this resistance, it is crucial for ecosystem owners to create awareness and understanding the change implied when using tokenisation; what is it, why is it important, how will it change the ecosystem and what are the benefits? In addition, it is important to take into account to define and communicate the scale of change and eliminate certain (wrong) assumptions. Starting with a minimum viable ecosystem to build engagement and showing why a tokenised approach is important can help in market adoption.

When talking about tokenisation of an ecosystem, or multiple ecosystems for that matter, we should also take into account the following subjects:

  • Responsibility: define responsibility, who is responsible, what creates what and who might be responsible for possible negative consequences of the tokenisation of the ecosystem?
  • Weaker parties: Weaker parties might need a helping hand to participate in the tokenisation of ecosystems.
  • Ethics: is the tokenised ecosystem designed with ethics in mind?
  • Skin in the game: who are the parties at risk when tokenising an ecosystem? Who can quickly adapt and who might need more help? It is important to try to keep everyone on board. Diversity within and between ecosystems could add a lot of value.

With the above components in place, it becomes easier to design and grow a tokenised ecosystem.

Tokenisation and the Law

When designing tokenised ecosystems, legal compliance is essential to stand apart from unethical and fraudulent counterparts. Therefore, legal design thinking is relevant at the core of every project.

See:  Privacy laws might prove to be a blessing in disguise for crypto

It is important to have a clear view of the legal aspects of new developments to obtain regulatory cooperation and closely collaborate (for example, using sandboxes) with regulators and policymakers when designing the tokenised ecosystem. While the community should welcome regulation, regulators and policymakers need to develop regulations that do not stifle innovation. This requires more cooperation and open dialogue between those innovators and the regulators.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Want to launch an ecosystem?  Consider Tokenization 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, 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

Latest news - Want to launch an ecosystem?  Consider TokenizationFF Logo 400 v3 - Want to launch an ecosystem?  Consider Tokenizationcommunity social impact - Want to launch an ecosystem?  Consider Tokenization

CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!



FFCON20 Pitching and Demo Winners - Want to launch an ecosystem?  Consider Tokenization



NCFA COVID 19 letter to government to support Fintechs and SMEs - Want to launch an ecosystem?  Consider Tokenization

NCFA Newsletter subscribe600 - Want to launch an ecosystem?  Consider Tokenization

 

Grant Vingoe’s 1 year term ends April 15, what’s next for the OSC?

Investment Executive | Rudy Mezzetta | Feb 16, 2021

OSC chair - Grant Vingoe's 1 year term ends April 15, what’s next for the OSC?

Observers aren’t surprised that the Ministry of Finance has yet to name a permanent leader for the OSC

The Ontario government has yet to indicate who it will select to lead the Ontario Securities Commission on a permanent basis, even as the end of the acting chair and CEO’s term approaches. 

Grant Vingoe has led the provincial regulator since April, stepping in for Maureen Jensen, who announced her resignation as chair and CEO in January of last year. The government named Vingoe, a vice-chair at the OSC, as chair for a one-year term that expires April 15. 

In a statement, the Ontario Ministry of Finance referred Investment Executive to the selection process but didn’t comment on when the government would appoint a permanent chair.

Securities industry observers said they aren’t surprised that the Ministry of Finance has yet to name a permanent chair and CEO for the OSC, considering the many issues confronting the government — chief among them the ongoing Covid-19 pandemic.  

The appointment of a new minister of finance may have also contributed to the delay. Peter Bethlenfalvy, who is also president of the Treasury Board of Ontario, replaced Rod Phillips on Dec. 31.

See: 

Over the short term, operating without a permanent leader for the OSC is likely not an issue, Yalden said: “Grant Vingoe is a very credible and steady hand on the tiller.”

In the longer term, however, “I don’t think it’s great to have a situation where the person who is leading the charge and deciding what the regulatory priorities are [for the OSC] isn’t sure whether they’re going to be there in a year, or even in a few months,” Yalden said. 

It also remains unclear how Bethlenfalvy intends to proceed with the recommendations made in the recently submitted Capital Markets Modernization Taskforce report, a review of the provincial Securities Act launched by Phillips last year. 

The task force report included some 70 wide-ranging recommendations, including expanding the mandate of the OSC; separating the OSC into an adjudicative and regulatory body; and splitting the job of the chair and CEO into two roles.  

How the government proceeds on the task force report recommendations is “interrelated” with the question of OSC leadership, Yalden said. 

“If they select someone and appoint them as chair and CEO, the inevitable questions will be, ‘What are you doing with the task force report? Do you think that person’s role is going to get split? Do you see that person in the long-term staying on as CEO and then you appoint a chair? Who do you have in mind?’ You can see all those various questions being thrown at the government,” Yalden said. 

See: 

Vingoe himself has not commented publicly regarding his intentions, but the OSC provided a written statement from him in response to questions from Investment Executive. 

“My primary focus is responding to the pandemic and the challenges it has created,” Vingoe said. “Since April, the OSC has provided a source of stability for Ontario investors and businesses, and I am proud of our contributions to the province’s financial health. I look forward to continuing engagement with the Minister and Ministry staff as we work together on the province’s path to economic recovery.” 

Continue to the full article --> here


NCFA Jan 2018 resize - Grant Vingoe's 1 year term ends April 15, what’s next for the OSC? 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, 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

Latest news - Grant Vingoe's 1 year term ends April 15, what’s next for the OSC?FF Logo 400 v3 - Grant Vingoe's 1 year term ends April 15, what’s next for the OSC?community social impact - Grant Vingoe's 1 year term ends April 15, what’s next for the OSC?

CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!



FFCON20 Pitching and Demo Winners - Grant Vingoe's 1 year term ends April 15, what’s next for the OSC?



NCFA COVID 19 letter to government to support Fintechs and SMEs - Grant Vingoe's 1 year term ends April 15, what’s next for the OSC?

NCFA Newsletter subscribe600 - Grant Vingoe's 1 year term ends April 15, what’s next for the OSC?

 

Public and Private Money Can Coexist in the Digital Age

IMF Blog | Tobias Adrian and Tommaso Mancini-Griffoli | Feb 18, 2021

private and public money - Public and Private Money Can Coexist in the Digital Age

We value innovation and diversity—including in money. In the same day, we might pay by swiping a card, waving a phone, or clicking a mouse. Or we might hand over notes and coins, though in many countries increasingly less often.

Today’s world is characterized by a dual monetary system, involving privately-issued money—by banks of all types, telecom companies, or specialized payment providers—built upon a foundation of publicly-issued money—by central banks. While not perfect, this system offers significant advantages, including: innovation and product diversity, mostly provided by the private sector, and stability and efficiency, ensured by the public sector.

See:  Is Digital Money (Legally) Really Money?

These objectives—innovation and diversity on the one hand, and stability and efficiency on the other—are related. More of one usually means less of the other. A tradeoff exists, and countries—central banks especially—have to navigate it. How much of the private sector to rely upon, versus how much to innovate themselves? Much depends on preferences, available technology, and the efficiency of regulation.

So it is natural, when a new technology emerges, to ask how today’s dual monetary system will evolve. If digitalized cash—called central bank digital currency—does emerge, will it displace privately-issued money, or allow it to flourish? The first is always possible, by way of more stringent regulation. We argue that the second remains possible, by extending the logic of today’s dual monetary system. Importantly, central banks should not face a choice between either offering central bank digital currency, or encouraging the private sector to provide its own digital variant. The two can coincide and complement each other, for example, to the extent central banks make certain design choices and refresh their regulatory frameworks.

Public-private coexistence

It may be puzzling to consider that privately- and publicly-issued monies have coexisted throughout history. Why hasn’t the more innovative, convenient, user-friendly, and adaptable private money taken over entirely?

See:  Right to anonymous payments

The answer lies in a fundamental symbiotic relationship: the option to redeem private money into perfectly safe and liquid public money, be it notes and coins, or central bank reserves held by selected banks.

The private monies that can be redeemed at a fixed face value into central bank currency become a stable store of value. Ten dollars in a bank account can be exchanged into a ten-dollar bill accepted as legal tender to settle debts. The example may seem obvious, but it hides complex underpinnings: sound regulation and supervision, government backstops such as deposit insurance and lender last resort, as well as partial or full backing in central bank reserves.

Moreover, privately-issued money becomes an efficient means of payment to the extent it can be redeemed into central bank currency. Anne’s 10 dollars in Bank A can be transferred to Bob’s Bank B because they are redeemed into central bank currency in between—an asset both banks trust, hold, and can exchange. As a result, this privately-issued money becomes interoperable. And so it spurs competition—since Anne and Bob can hold money in different banks and still pay each other—and thus innovation and diversity of actual forms of money.

See:  COVID-19: Making the case for robust digital financial infrastructure

In short, the option of redemption into central bank currency is essential for stability, interoperability, innovation, and diversity of privately-issued money, be it a bank account or other. A system with just private money would be far too risky. And one with just central bank currency could miss out on important innovations. Each form of money builds on the other to deliver today’s dual money system—a balance that has served us well.

Central bank currency in the digital age will face pressures

And tomorrow, as we step squarely into the digital age, what will become of this system? Will the digital currencies issued by central banks be so enticing that they overshadow privately-issued money? Or will they still allow for private sector innovation? Much depends on each central bank’s ability and willingness to consistently and significantly innovate. Keeping pace with technological change, rapidly evolving user needs, and private sector innovation is no easy feat.

Continue to the full article --> here


NCFA Jan 2018 resize - Public and Private Money Can Coexist in the Digital Age 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, 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

Latest news - Public and Private Money Can Coexist in the Digital AgeFF Logo 400 v3 - Public and Private Money Can Coexist in the Digital Agecommunity social impact - Public and Private Money Can Coexist in the Digital Age

CONGRATULATIONS TO THE 2020 FINTECH DRAFT PITCHING AND DEMO COMPANY WINNERS!



FFCON20 Pitching and Demo Winners - Public and Private Money Can Coexist in the Digital Age



NCFA COVID 19 letter to government to support Fintechs and SMEs - Public and Private Money Can Coexist in the Digital Age

NCFA Newsletter subscribe600 - Public and Private Money Can Coexist in the Digital Age