Category Archives: Blockchain, Crypto, Digital Assets Regulations

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

share save 171 16 - Visa’s digital dollar concept opens a door to central bank currencies

American Banker | John Adams | May 18, 2020

CBDC in 2020 - Visa’s digital dollar concept opens a door to central bank currenciesThe coronavirus recovery is accelerating government involvement in payments, providing Visa a chance to turn a developing currency concept into a route for federal transactions.

The U.S. Patent office on Friday published a Visa patent application to create a technology gateway that could allow central bank currencies for any nation to be digitized. Visa filed the application in November, predating the coronavirus crisis that has generated more interest in digital money.

The application details a centralized computing system that receives information and denomination of a traditional currency, which is then converted to a digital form and recorded on a distributed ledger. This could work with any traditional currency, placing Visa in the middle of the process.

See:  Visa’s Fast Track Program Propels Growth of the Fintech Industry Worldwide

The coronavirus recovery is accelerating government involvement in payments, providing Visa a chance to turn a developing currency concept into a route for federal transactions.

The U.S. Patent office on Friday published a Visa patent application to create a technology gateway that could allow central bank currencies for any nation to be digitized. Visa filed the application in November, predating the coronavirus crisis that has generated more interest in digital money.

The application details a centralized computing system that receives information and denomination of a traditional currency, which is then converted to a digital form and recorded on a distributed ledger. This could work with any traditional currency, placing Visa in the middle of the process.

It’s also a way for Visa to respond to changes in money movement that could potentially compete with the card network. Visa was initially part of Facebook’s Libra project, but left the initiative along with several other high-profile payment companies when regulators and politicians pressured Libra — mostly over Facebook’s role and the potential to circumvent government monetary policy.

“Widespread adoption of digital currencies would be bad for Visa’s traditional retail payments franchise,” said Eric Grover, a principal at Intrepid Ventures, adding this may be a case of Visa hedging against central bank or Libra-style digital currencies. “A digital currency supported by Visa and issued by banks could fit nicely with Visa’s business model of delivering payment products through license banks, albeit with thinner transaction economics.”

The European Union has considered a “digital euro” to spur coronavirus recovery, and dozens of other countries are working on similar projects, giving Visa plenty of opportunities to partner with governments.

See:  Cryptocurrency Payments Processor CoinPayments Appoints Jason Butcher as New CEO

In this way Visa’s patent, which does not propose a cryptocurrency, is also a nod toward working with governments that may be anxious about how blockchain and cryptocurrency could impact traditional monetary policy, particularly in a time of quantitative easing and potential effects on currency values.

Continue to the full article --> here

 


Blockonomi | | May 18 ,2020

visa digital currency patent - Visa’s digital dollar concept opens a door to central bank currenciesExploring Visa’s Digital Currency Patent Application: Toward a New Era of Finance?

The U.S. Patent and Trademark Office (USPTO) published the patent application in question, which is simply titled "DIGITAL FIAT CURRENCY."

Visa is one of the most successful and consequential payments companies in the world. Where the powerhouse enterprise places its efforts is thus no small matter.

That’s why a newly published patent application for a blockchain-powered “digital fiat currency” system by the payments giant is not only legitimizing for blockchain tech in general but also indicates what may be coming to the mainstream payments arena amid increasing hyperdigitalization.

See:

Indeed, Visa’s patent mentioned the reigning smart contract platform Ethereum and the Hyperledger Fabric blockchain nearly a dozen times each. Will the future of finance be built on top public blockchains, then?

That’s the grand question for now, and Visa’s new patent application is an interesting new wrinkle accordingly. To be sure, Visa may have simply kept its options open with a defensive application. Yet if the firm ever does proceed with a system like the one planned in the filing, the implications will be manifold and major. Let’s dive deeper to better understand the stakes.

How the Digital Currency Would Work

Per the application, Visa’s envisioned digital currency entails a central operator, i.e. Visa or beyond, facilitating token issuances atop a blockchain. To this end, the document repeatedly identifies Ethereum as potential infrastructure of choice.

On the Decentralization Spectrum

Public blockchains like Ethereum can be used in many ways. They can give rise to totally decentralized projects like Augur and Uniswap, or they can help power centralized third-party enterprises like the Tether (USDT) stablecoin operation.

See:   Could Bitcoin on DeFi displace banks? Yes

Obviously then, Visa’s digital currency system — at least as initially outlined — would be near the “completely centralized” end of the decentralization spectrum. With that said, though, what would be interesting to see is if and how Visa’s digital currency would permeate into more decentralized areas of the cryptoeconomy, e.g. like USDT trading on Uniswap.

Visa could employ a smart contract whitelisting system to mitigate its tokens running amok in DeFi, though the company wouldn’t necessarily have to.

News Comes as Stablecoins Are Booming

There’s no indication just yet that Visa’s digital currency will actually come to fruition. But the mere prospect of its arrival comes at a time when both centralized and decentralized fiat-pegged stablecoins have been becoming increasingly popular.

For instance, this month the combined market capitalization of all active stablecoins reached $10 billion USD for the first time ever. The new milestone shows that demand for fiat-pegged or value-stable tokens is already strong and on the rise.

If a major firm like Visa jumped into the rising sector in a big way, then stablecoins in general will have officially hit the prime time. The possibility is closer than ever.

The CBDC Specter

As outlined, Visa’s envisioned digital currency system leaves the door open for central banking institutions to work with the payments company on actualizing central bank digital currency (CBDC) issuances.

See:  China’s digital currency app looks like Alipay and WeChat Pay

What’s interesting here is that in Visa central banks would certainly find a reliable and promising partner. In many cases, these banks would naturally be more comfortable using an Ethereum-powered Visa system rather than building their own Ethereum solutions themselves.

As such, Visa would be ideal for central banks wanting to issue CBDCs for retail rather than wholesale use, as the company’s consumer base is vast.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Visa’s digital dollar concept opens a door to central bank 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, 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 - Visa’s digital dollar concept opens a door to central bank currenciesFF Logo 400 v3 - Visa’s digital dollar concept opens a door to central bank currenciescommunity social impact - Visa’s digital dollar concept opens a door to central bank currencies
NCFA COVID 19 letter to government to support Fintechs and SMEs - Visa’s digital dollar concept opens a door to central bank currencies

Coronavirus resources 800 1 - Visa’s digital dollar concept opens a door to central bank currencies

NCFA Newsletter subscribe600 - Visa’s digital dollar concept opens a door to central bank currencies

FFCON20 Homepage Banner v3 updated - Visa’s digital dollar concept opens a door to central bank currencies

 

share save 171 16 - Visa’s digital dollar concept opens a door to central bank currencies

How To Navigate Regulation Crowdfunding With Crypto And Blockchain

share save 171 16 - Visa’s digital dollar concept opens a door to central bank currencies

Forbes | Jason Brett | May 10, 2020

Ms Dickinson - Visa’s digital dollar concept opens a door to central bank currenciesDawn Dickson is the founder and CEO of PopCom, a company she has been working on since 2012 that is an automated retail technology company with a hardware and software (SaaS) solution for self-service retail. Essentially, PopCom makes vending machines and kiosks smarter by allowing retailers to collect important analytics at the point of sale and deliver targeted content, similar to how Google analytics analyzes web traffic.

With her business involving automated retail technology and self-service machines, the COVID-19 pandemic has resulted in increased demand for her company’s products, making her investor pitch that much easier. Dickson is the first Black woman to raise over $1 Million under SEC Regulation Crowdfunding (Reg CF) using a security token offering (STO). Currently in the middle of her second Reg CF, PopCom has raised $800,000 in about a month and a half.

‘The Jobs Act by Obama leveled the playing field and access to capital for businesses and allows leverage community from accredited and non-accredited investors,’ Dickson explains.

For early stage deals where a company is not yet publicly traded, she notes, ‘...an accredited investor needs to make $200,000 as an individual or $300,000 if you are married, and have $1,000,000 in net worth’.

Dickson notes these investors are the ‘...same people over and over again who are benefitting from the success of these early-stage companies where the wealth is circulated around the same group of accredited investors.’

Dickson explains she educated herself about how to do a crowdfunding campaign, as has been made possible by President Obama with the Jobs Act. She realized she had families, friends, and a community of supporters that were not accredited investors, but were educated investors with disposable income and understood the risks and rewards of an early-stage investment in a company.

See: 

SEC Gives Break on Crowdfunding Rules for Some Small Firms

How Regulation Crowdfunding Stood up to the First Weeks of Coronavirus – Almost Opposite of the Public Markets

That campaign, Dickson states, was the, ‘…First time people had really seen on a mass level a black person [who] does something like this,...[as I was the] first black female founder, first female founder to raise million dollars in a crowdfunding campaign,’ Dickson proudly proclaims. Her first crowdfunding campaign was oversubscribed, with $1.3 million, and now, she is at $800,000, closing in on the $1,070,000 limit for this campaign.

This time, her crowdfunding campaign provides equity in the company in the form of stock certificates and is not a token sale. While the last round was a token offering, Dickson comments the SEC does not fully support token offerings. ‘They act like they are okay with crypto and blockchain but their actions show the opposite,’ states Dickson. In that the benefit would be selling the tokenized shares for liquidity on a secondary trading platform, until the SEC decides to approve this, there is no real benefit to having a ‘crypto’ security token offering anyway. A token is a digital version of a share instead of a paper share; the primary benefit of using a token for funding is so you can sell the token for liquidity.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Visa’s digital dollar concept opens a door to central bank 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, 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 - Visa’s digital dollar concept opens a door to central bank currenciesFF Logo 400 v3 - Visa’s digital dollar concept opens a door to central bank currenciescommunity social impact - Visa’s digital dollar concept opens a door to central bank currencies
NCFA COVID 19 letter to government to support Fintechs and SMEs - Visa’s digital dollar concept opens a door to central bank currencies

Coronavirus resources 800 1 - Visa’s digital dollar concept opens a door to central bank currencies

NCFA Newsletter subscribe600 - Visa’s digital dollar concept opens a door to central bank currencies

FFCON20 Homepage Banner v3 updated - Visa’s digital dollar concept opens a door to central bank currencies

 

share save 171 16 - Visa’s digital dollar concept opens a door to central bank currencies

TC Webinar (May 21, 2020): FinTech, RegTech, and SupTech Community of Practice with Simone di Castri

share save 171 16 - Visa’s digital dollar concept opens a door to central bank currencies

Toronto Centre | May 8, 2020

TC Regtech and Suptech webinar - Visa’s digital dollar concept opens a door to central bank currencies

FinTech and SupTech: how to leap forward?

The digital transformation of the global economy and the financial sector is accelerating. Cash use is declining, and digital currencies and channels are increasingly used. For millions of people, this digitization is transformative, and the COVID-19 crisis has accelerated this trend by disrupting consumers' payment behaviour and lowering the demand for cash.

See: 

Fintech Innovation: Sandboxes as a Tool (Presentation by Randee Pavalow)

Podcast: A Regtech-based Blockchain KYC Solution for Document Custody with Brice Penaud, CEO Commercial Passport

However, two significant challenges emerge from this picture. First, financial authorities are in most cases ill-equipped to oversee the digital economy and its increasingly complex financial sectors. They need to access new datasets and deploy smart analytical tools to establish knowledge and evidence that drive targeted, risk-based decision-making to promote financial inclusion, maintain stability, pursue consumer protection, strengthen integrity, sustain competition, and drive innovation. Second, a new “Big Data divide” is forming between the digital financial services (DFS) providers who can leverage data for their respective ends and many public and private sector stakeholders who cannot. This imbalance of power has the potential to skew the development of digital financial ecosystems in favor of a few large players.

Webinar

Thu, 21 May 2020

10:00 AM – 11:00 AM EDT

 

During this webcast, we will discuss about FinTech, supervisory technologies (SupTech), and Open Data Commons with Simone di Castri, the Managing Director of the RegTech for Regulators Accelerator (R2A), who will provide his views on how financial authorities around the world can leap forward and catch up on this digital transformation.

Register for this free webinar --> here

 


NCFA Jan 2018 resize - Visa’s digital dollar concept opens a door to central bank 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, 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 - Visa’s digital dollar concept opens a door to central bank currenciesFF Logo 400 v3 - Visa’s digital dollar concept opens a door to central bank currenciescommunity social impact - Visa’s digital dollar concept opens a door to central bank currencies
NCFA COVID 19 letter to government to support Fintechs and SMEs - Visa’s digital dollar concept opens a door to central bank currencies

Coronavirus resources 800 1 - Visa’s digital dollar concept opens a door to central bank currencies

NCFA Newsletter subscribe600 - Visa’s digital dollar concept opens a door to central bank currencies

FFCON20 Homepage Banner v3 updated - Visa’s digital dollar concept opens a door to central bank currencies

 

share save 171 16 - Visa’s digital dollar concept opens a door to central bank currencies

Telegram Caves to US Regulators: Delays Blockchain Launch, Offers to Return $1.2B to Investors

share save 171 16 - Visa’s digital dollar concept opens a door to central bank currencies

Coindesk | Anna Baydakova | Apr 30, 2020

Telgram CEO pavel durov - Visa’s digital dollar concept opens a door to central bank currenciesMessaging app Telegram postponed the launch of its TON blockchain for a second time on Wednesday, pushing the new go-live date to April 2021 and triggering a costly clawback clause in its agreement with token-sale investors.

According to a letter to investors obtained by CoinDesk, Telegram is offering to return up to 72% of each investor's stake. The terms were agreed upon when Telegram first postponed TON's launch in October, following a lawsuit from the U.S. Securities and Exchange Commission (SEC) charging Telegram with running an unregistered securities sale that raked in $1.7 billion in 2018. At the time, Telegram set a revised launch deadline of April 30, 2020.

The company lost an initial court battle with the SEC, with a U.S. judge ruling Telegram can't launch its blockchain or issue its forthcoming "gram" tokens until the case was resolved. On March 24, the initial preliminary injunction was left in place.

See:  Telegram Enforcement Action: “A reminder that the SEC not only has considerable enforcement tools but is willing to use them”

On Wednesday, however, Telegram floated another option for those investors who choose to forego their 72%: They can lend their investment to Telegram until this time next year.

The letter states:

"As a token of gratitude for your trust in TON, we are also offering you an alternative option to receive 110% of your original investment by April 30, 2021, which is 53% higher than the Termination Amount."

Telegram is "continuing to engage in discussions with the relevant authorities," the letter continues. Depending on how the negotiations go, those investors could still receive "grams or potentially another cryptocurrency on the same terms as those in their original Purchase Agreements."

If regulators continue blocking the launch of TON, Telegram will repay the debt using equity. At present, the company is entirely owned by its founder and CEO, Pavel Durov. Citing Telegram's recent growth to 400 million monthly users, the company believes its "equity value will exceed the aggregate amount of its potential debt resulting from this offer by at least several times."

Investor upside?

Sergey Solonin, the founder of payment processing firm QIWI and a $17 million investor in TON, said it's good news for investors.

"The terms are really good, I think a lot of investors will choose to keep their money in Telegram," he said, citing the promise of additional returns.

See:  Exponential Launches $100MM Digital Asset Fund on DealSquare Leaning Into The Post-COVID-19 Future

"There is definitely capital value there, and even if Telegram will ultimately not be allowed to issue grams, I think, in the course of this year [it] can find an investor and pay the money back [to the token purchasers]," Solonin said.

Two fund managers told CoinDesk last week that many investors, especially the Silicon Valley venture funds, would prefer to have their token allocations converted into Telegram shares. For some VCs, the tokens have essentially been a proxy for Telegram’s equity, which the company was previously unwilling to sell. Selling equity had been not an option for Durov, they said.

After the March 24 ruling, Telegram went completely silent, making no communications with TON investors until the eleventh hour, according to several investors.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Visa’s digital dollar concept opens a door to central bank 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, 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 - Visa’s digital dollar concept opens a door to central bank currenciesFF Logo 400 v3 - Visa’s digital dollar concept opens a door to central bank currenciescommunity social impact - Visa’s digital dollar concept opens a door to central bank currencies
NCFA COVID 19 letter to government to support Fintechs and SMEs - Visa’s digital dollar concept opens a door to central bank currencies

Coronavirus resources 800 1 - Visa’s digital dollar concept opens a door to central bank currencies

NCFA Newsletter subscribe600 - Visa’s digital dollar concept opens a door to central bank currencies

FFCON20 Homepage Banner v3 updated - Visa’s digital dollar concept opens a door to central bank currencies

 

share save 171 16 - Visa’s digital dollar concept opens a door to central bank currencies

Podcast: When Currencies Fail: A Primer on the Dollar Crisis in Lebanon

share save 171 16 - Visa’s digital dollar concept opens a door to central bank currencies

Coindesk | Nathaniel Whittemore | Apr 29, 2020

Crisis in lebanon - Visa’s digital dollar concept opens a door to central bank currenciesA massive shortage of dollars is instigating economic chaos, including a more than 50% loss of value in the Lebanese pound and what looks like an enormous local premium for bitcoins. Presented in podcast and full-transcript formats.

The Lebanese pound has lost at least 50% of its value against the dollar since last year. About 220,000 people have lost their jobs. Food prices are up 58%. An estimated 75% of the population needs assistance of some kind. And over the last two nights, at least a dozen banks have been torched by protesters.

See:  Living on Defi: How I Survive Argentina’s 50% Inflation

The catalyst? Not coronavirus but a massive dollar shortage destroying an economy that relies on inflows of U.S. dollars to function.

In this episode, NLW breaks down how Lebanon models what it looks like for a currency to fail, and why this likely isn’t the last emerging market currency to experience a similar crisis in the months to come.

A few Snippets from the full transcript

It is Wednesday, April 29th and today we are going to be talking about Lebanon, specifically the currency crisis overlapping a political crisis overlapping a larger economic crisis that is engulfing Lebanon and I think has relevance for how we understand the dollar in the world, the dollar's role in the world and the fallout from COVID-19. I wanted to bring this episode to you because I noticed last week Lebanon start to emerge in the crypto sphere and there were two contexts:

The first was Dan Tapiero. He picked up on a piece by newsBTC noticing that Bitcoin seemed to be trading at fifteen thousand dollars in lebanon via localbitcoins.com which is a peer to peer platform for trading Bitcoin between people. He said the classic emerging market funding crisis was made worse by deflationary dollar peg that is breaking. Study this case as it will be modeled for other weak emerging markets. It will be a key part of the macro story behind the upcoming Bitcoin price rally.

Banks start to limit withdrawals, which is exactly what happened.

Banks started to limit how much could be withdrawn in USD and that creates more demand for dollars. All of a sudden that activity moves to the black markets because if banks won't allow people to withdraw money or get access to dollars, black markets will, but the black market price is not going to stay the same as that official peg.

See: 

This keeps going on. As people start to see the peg fall further, they want to minimize loss.

They go from, "I don't want to lose the value that I would have had at that official peg going on the black market" to "The black markets, the only place I can get those [US] dollars

if it's 2000 Lebanese pounds to the dollar, now, I want to lock in that loss rather than worry or take the risk of a loss of greater debasement of the value of the Lebanese pound in months to come.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Visa’s digital dollar concept opens a door to central bank 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, 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 - Visa’s digital dollar concept opens a door to central bank currenciesFF Logo 400 v3 - Visa’s digital dollar concept opens a door to central bank currenciescommunity social impact - Visa’s digital dollar concept opens a door to central bank currencies
NCFA COVID 19 letter to government to support Fintechs and SMEs - Visa’s digital dollar concept opens a door to central bank currencies

Coronavirus resources 800 1 - Visa’s digital dollar concept opens a door to central bank currencies

NCFA Newsletter subscribe600 - Visa’s digital dollar concept opens a door to central bank currencies

FFCON20 Homepage Banner v3 updated - Visa’s digital dollar concept opens a door to central bank currencies

 

share save 171 16 - Visa’s digital dollar concept opens a door to central bank currencies

How regulatory collaboration transformed markets

share save 171 16 - Visa’s digital dollar concept opens a door to central bank currencies

Innovate Finance | April, 2020

fintech and regulators collaborate - Visa’s digital dollar concept opens a door to central bank currenciesGlobal initiatives to bring fintechs into the regulatory ecosystem are having an enormous positive impact on innovation. Better still, the successes enjoyed to date are set to be just the beginning.

In the decade following the global financial crisis, domestic watchdogs around the world brought in dozens of new rules designed to refine risk-taking, improve compliance oversight and stimulate confidence in global markets.

See:  Hawaii launches state-initiated digital currency sandbox

But for many in the financial industry, regulators became an easy target, criticised for being heavy handed with new regulations.

At the same time, some have attracted praise for their work in developing markets, stimulating innovation and encouraging new market approaches – such is the case with the UK financial regulator’s sandbox initiative.

History of the sandbox

Regulatory sandboxes, or “innovation hubs” have emerged as testing grounds for fintechs globally. The sandbox provides a controlled environment for the live testing of new technologies and financial products by both authorised and unauthorised firms, under the supervision of the regulator.

In the UK, the FCA defines its regulatory sandbox as a platform that “allows businesses to test innovative propositions in the market with real consumers.”

The initiative was first introduced in the UK in a report back in November 2015, before initial applications were accepted in June 2016. The impact on the British fintech scene has been considerable.

See:  Fintech Innovation: Sandboxes as a Tool (Presentation by Randee Pavalow)

When it comes to the role that domestic regulators and global standards bodies play in setting minimum service obligations for fintechs, sandboxes have shown that regulation does not have to hinder innovation. In fact, the FCA sandbox approach has shown how a regulatory approach can foster both competition and trust.

Global appeal

The sandbox model has become so widely appreciated that it is offered in several jurisdictions across Europe and Asia.

“We’ve had quite a lot of conversations with the Dutch regulator, the AFM [Dutch Authority for the Financial Markets],” Mr Sluys explains. “They have a very similar model and have been very helpful so far, on our journey.”

Like the FCA, Singapore has also been widely praised for its regulatory approach in stimulating financial innovation. In November last year, the Monetary Authority of Singapore (MAS) announced a collaboration with consultancy group Deloitte and S&P Global Market Intelligence, to develop a prototype for an industry-wide fintech research platform.

The resulting platform will assist investors and financial institutions in connecting with fintech start-ups that they can partner with or invest in.

See:  FCA: Regulating innovation: a global enterprise

MAS also launched the ‘Sandbox Express’ in August 2019, which should provide firms with faster market testing of products and services.

Ms Ghosh explains: “I think the predominant purpose of the private sector when it comes to cohorts is not to give regulatory flexibility. It is to see whether an idea is worth investing in further, accelerate the growth of the company by providing it with additional resources… and then working out whether it’s worth acquiring.”

“One thing we see very clearly is that banks and asset managers who operate innovation programmes inside their organisations tend to do better,” Mr Toms says.

He cites the Barclays Rise initiative, which champions fintechs, as an example of “a really strong innovation team and approach”. Barclays Rise has been rolled out across Mumbai, London, New York and Tel Aviv.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Visa’s digital dollar concept opens a door to central bank 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, 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 - Visa’s digital dollar concept opens a door to central bank currenciesFF Logo 400 v3 - Visa’s digital dollar concept opens a door to central bank currenciescommunity social impact - Visa’s digital dollar concept opens a door to central bank currencies
NCFA COVID 19 letter to government to support Fintechs and SMEs - Visa’s digital dollar concept opens a door to central bank currencies

Coronavirus resources 800 1 - Visa’s digital dollar concept opens a door to central bank currencies

NCFA Newsletter subscribe600 - Visa’s digital dollar concept opens a door to central bank currencies

FFCON20 Homepage Banner v3 updated - Visa’s digital dollar concept opens a door to central bank currencies

 

share save 171 16 - Visa’s digital dollar concept opens a door to central bank currencies

Fintech Fridays EP39: The Power of Digitization and How to Get Exponential

share save 171 16 - Visa’s digital dollar concept opens a door to central bank currencies

NCFA Canada | April 23, 2020

JOIN US ON A STORYTELLING JOURNEY EVERY FRIDAY.

EP39 James Wallace banner1 - Visa’s digital dollar concept opens a door to central bank currencies


EP39: The Power of Digitization and How to Get Exponential

 

HOST: Tristram Waye, Fintech Friday's podcast episode

GUEST: JAMES WALLACE, Co-founder and CEO, Exponential (Linkedin)

In this episode of Fintech Fridays, Tristram Waye has an in-depth conversation with James Wallace, Co-founder and CEO of Exponential.io

The discussion looks at:

  • Exponential thinking and why it’s hard but necessary
  • How Exponential sees the digital world, and their unique full stack approach to it
  • Why the private markets are both archaic and a gigantic untapped opportunity for digitization
  • Why accreditation decides what gets built, and why that needs to change, and much more

Expo logo March2020 - Visa’s digital dollar concept opens a door to central bank currencies

BIO:  James Wallace is co-founder and CEO of Exponential, a global digital finance company aimed at creating access to a meaningful life for everyone, everywhere.  At its core, Exponential is a fully-integrated venture capital firm with access to investment banking and stock exchange capabilities.  James launched his first international business at age 11, first storefront opened at age 17, first software company developed at age 18 and has owned/operated more than 20 other businesses since, mostly in the digital technology space.

 

 

Subscribe and tune in each Friday to check out the latest movers and shakers in fintech.

Listen to more podcasts here: Season 1 | Season 2

 


Transcription of Interview

Intro: Welcome fintech Friday's a weekly podcast brought to you by the National Crowdfunding and Fintech Association of Canada and partners.Covering all things fintech block chain be AI and alternative finance.

Tristram Our special guest today is James Wallace, co-founder and CEO of Exponential. James, great to have you here today.

James  Great to be here. Thanks for having me.

Tristram Why don't we start by talking a little bit about your background? What was your journey to where you are today?

James Well, I was a serial entrepreneur even up until I was 17. And that would have been 1993. I opened a storefront in ‘93 and realized that I really didn't enjoy the retail environment. People turn into little mini monsters even the nice ones get a little weird. So I contemplated for quite a while: What do I do if I...and actually it came from from a family that had a manufacturing distribution, commercial, manufacturing, distribution background and I didn't enjoy that either. So I thought, you know, I don't enjoy working with people and not working with people. What do I do?

And in that contemplation, late nights at the store, I started thinking about the internet and thought, is that a way to distribute things and it just seemed a lot more fun than manufacturing and selling and distributing goods. So, in 1993, I started building what I thought was going to be this beautiful pre Amazon ecommerce distribution platform. And it turned out to be nothing more than a glorified digital brochure and catalog site. Took me months and months and months to build. But at that point, I realized that the internet was here to stay even though back then people were still saying it was just a fad. And I also realized that technology computer programming was a profound exponential lever, something that you, with relatively few dollars, you can build something put it into the world and have it, you know, go viral, and have it be shared with the world almost overnight. So I got really excited about that, and took... diverged away from computer programming, and more into product development, and began to hire computer programmers. Just became a serial tech entrepreneur and I've been playing in technology, building companies. More recently, have sort of put aside the the founder hat in favor of taking my capital, our capital, and my advice and our advice and deploying that into amazing founders that are building extraordinary products and services.

Tristram And that is the foundation for your current operation Exponential is that right?

James That's correct.

Tristram Now, tell me what is the vision behind Exponential?

James  Well, the the original vision is actually intact. And that is something I don't get a lot of opportunity to discuss in the financial services circle, because we talk a lot about what we're doing with our securities exchanges and investment banks and so on. But what's still at the core is -  and in fact, all those those products and services that we built, teams that we built, are built in order to service the the value creator, the true value creator. So we have some a very venture centric mind. We believe that innovators and tech startup founders are extraordinary value creators. And we have basically essentially grown all of these products and services to surround that. We stated very, very clearly that we invest in startups that alleviate suffering, or expand human potential in order to bring to market products and services that allow access to meaningful living for everyone, everywhere. So it's those people on a day to day basis are still regarded as our core focus. Yeah.

Tristram Okay. And so I saw you mentioned in one of your podcasts and you talked about exponential thinking, could you go into that a little bit and explain why it's important.

James Yeah, The the human mind actually can't think exponentially, it can only imagine exponentially. And I can only do that if it struggles very, very hard to do that. As much as I love exponential from a business model standpoint to a sort of systems building standpoint, I still - as much as I played with exponentials, I still have to remind myself to get out of linear thinking. But the three dimensional human brain is stuck in linear thinking. So you know, one way to really convey this message is that, you know, 30 linear steps and you're 30 feet away 30 exponential steps, and you're from Planet Earth to the Moon, back to Earth, back to the moon, is an extraordinarily different way of mapping growth and things.

And so, what I what I said earlier, as well about just creating something, putting it out into the world, especially via the internet, especially on social platforms, we can see just we can see just extraordinary adoption, extraordinary proliferation and sharing. So these exponential principles are rooted in that sort of thinking. How do - how does one create bigger leavers? How does one get more done with less, which is still, you know, you can do that incrementally and linearly as well. But when you start thinking about algorithms, Salim Ismail, a friend of ours and author of the book literally called Exponential Organizations, puts it in 10 different categories and talks a lot, as I said, algorithms and dashboards and staff on demand. These sort of - the ability to gain access to something.

One of the principles is not ever owning, because there's overhead and cost associated with ownership. Leasing for a fraction of the cost and giving it back when you don't need it anymore. There's a lot of different exponential principles. can be employed and deployed by an enterprise to facilitate growth that is, you know, again exponential so many, many, many times, even month over month, and definitely year over year.

Tristram Okay, and one of the other elements that you talked about in that particular conversation was was about the concept of curation, and the importance of a an abundance mindset in the exponential economy, is this is kind of what you're talking about here?

James Yeah, yeah, I think so. I think that all those things are critical in the future. To me I - for me, I see them slightly separated, but coalescing in that setting in that new world, certainly.

Tristram Okay. Now, how about about giving us a sort of an overview of how Exponential works as an organization?

James  Well, it was It's actually really, really good that we had an opportunity to put the founder, as we say, we actually could call them the value creator, as I mentioned at the core. That's something that's not as obvious sometimes. And essentially, having gone from actually a super angel fund, so it was just my partner and I put on our own capital, deployed that over the last three years, and then just now recently actually became venture capital. For those that don't know that the only difference between an angel and a venture capitalist is, venture capital plays with other people's money. And so we started building things that would allow other people's money to come in. Because we realize obviously, the more capital we can deploy in this framework, the more we can shift.

In our - one of our mandates, perhaps our core mandate is to migrate society to an era of prosperity and meaning. And through essentially digitizing everything and creating this new digital economy, which is, you know, democratized open, and and freer. So getting back to where we were, we realized that the digital economy was forming around us. And we could either be an active participant or a passive participant. We were going to be a participant no matter what. We made a couple of investments in companies that were really excited about the ICO craze. We realized that we couldn't participate in that because there was a lot of issues, legal liability, lack of clients. We foresaw that this was going to turn into something that would be not worth engaging that and I think that we've seen recently that is the case. The venture capital fund, though our angel fund was very interested in the idea though, of democratizing access to early stage investments, which I think the ICO craze showed an insatiable appetite for the retail public to invest in things that mattered and specifically early stage. And a lot of those white papers that, unfortunately are no longer companies, some that were funded millions and 10s of millions of dollars, unfortunately, were very interesting. They had a lot of really interesting ideas. They got people very excited, and a lot of people put a lot of money into them. So we thought there was something there, not just on the the issuer side, the founder side, in terms of fundraising, but also on the investment side. That there's an untapped need. Not a market, not an opportunity not to want, it felt like a need for investors to put their money into meaningful things.

And so, about two and a half years ago now, I think, we approached Bermuda who was the only open regulator at the time that was willing to have this conversation about a digital security. And we spent several months and several hundred thousand dollars and finally, with one of our startups, we came out of there with a federally approved digital security offering. So we were ultimately the sole seed investor in the world's first federally approved digital security, offering. That allowed us to really understand the framework, compliance, legal, accounting framework and also the fundamentals inside for the issuer in the founder - what were they going to be required to do? What was the ongoing compliance requirements and so on?

And then also the investor side, we started talking to crowdfunding platforms and investment banks who were doing private placement deals or broker dealers in the US. And that led us to realize that we really needed to bring in house the expertise to bring private placement deals to the world, and to list on crowdfunding sites. So essentially, what we ended up compiling, or creating was - if you think about it, from left to right, on a capital markets lifecycle journey, you have early stage, which is typically represented by a venture capital. Growth stage, which is typically represented by investment banks. And you have markets, which is the IPO event at the end of, you know, series A through series E, the big liquidity event. And so we ended up with a group of venture capital funds, a network of investment banks in several countries, and a markets team that was connecting via API to federally registered and regulated digital securities exchanges.

And so in house, we were able to actually take an enterprise from the earliest stage all the way to a major liquidity event. And then we layered on just recently, the funds team which has onshore offshore capabilities. It has a digital asset fund which is listed on DealSquare, powered by Neo Connect and JV from FrontFundr. And we have an entire feeder fund into the offshore for digital ventures. So we've set up a way for almost everyone in the entire world, from retail public in Canada to offshore large, international, global institutional investors to invest in this digital asset ecosystem.

Tristram That's one of the things I wanted ask you about is this important idea about the challenges for regular people to invest in new projects with the accredited investor rules. Can you talk a little bit about that and, and how you're helping with this problem?

James I think for the average person that doesn't know to really give context - to it to be sort of fair, but also give context - I mean, we all know the saying the road to hell is paved with good intentions. And I don't want to believe that this was ever constructed in a way that was meant to keep people out of the most lucrative investments and allow for what really amounts to a boys club to emerge of people that that are not only getting access to these really interesting, exciting investments, but have cornered the market on determining what gets built. And so you know, in the US, for example, there's only 2% of the population is accredited in Canada it's 4. So that means in Canada 96% - in the US, 98% of people are prohibited from making early stage investments. Due to this accredited investors who have an exemption for whatever reason, typically just because they have a lot of money.

So we - there are people, and this is what's shocking - there are people that work in the foreign investment bank - analysts and so on, understand everything about, not only investing in general and early stage investments, but the actual investment itself, that are prohibited from investing. And that's just because they don't have - that that one investment that they're running - just because they don't have enough money in the bank, the government doesn't think that this person is sophisticated enough to make an investment decision. And because they just don't have, you know, $5 million or a million dollars depending on the jurisdiction. This changes, but almost all jurisdictions have this professional, sophisticated, accredited investor exemption. And so, just right there, we can tell this is nothing to do with the capability of an individual to make this investment decision or, and or it's just a lazy definition, it's easy to to apply regulation to. So back to the original point, which is really, really important, is that in the US, there's about 500,000 accredited investors, which amounts to just less than 2%. Only about 3000 to 5000 of those people actually use that exemption to invest in early stage startups, either directly or more likely through a venture capital fund. But what's really, really alarming, if we talk about absolute financial inclusion, which is not just access to a platform, but it's equity in the things on that platform, and therefore making - voting essentially with your dollar to determine what's gets built in the new world. That's the sort of financial inclusion we're talking about.

But the reality is that 30 people that manage the US's, you know, 30 biggest venture capital funds are essentially determining about 90% of what gets built. And those 30 people are exactly who you think they're like - you know, 85% of them are white, rich, older men. And so, this is not about a system, that creates the world. And at least as I, as far as I can tell, it creates the world - that the world, the world around us that the world actually wants - the people the world actually want. So our belief - and that's why the Digital Asset Fund that we released recently, launched in Canada, we launched retail public, as we call it here. It's OM form compliant and it's also TFSA and RSP eligible - we wanted anyone in Canada to be able to put, I think the the minimum investment amounts $500, we wanted anyone to have access to that fund. And again, we truly believe that every dollar is a vote for the world that they want to see in a few years.

Tristram I think  that's a really great way of explaining the the issue with the accreditation, which is - a big part of it as a knowledge problem, but, it's around the idea of determining the future by voting for what you think should get built. I think that's a fantastic way of looking at.

The one thing I wanted to ask you about, in addition to that is just for a clarification, I recall you discussing the difference between an electronic security and a digital security and, and sort of defining what those two things are. And more importantly, how does digitizing an asset increase its value?

James If that's a great question, and a very reasonable question. I think we can even add the paper component to it, and this is probably obvious to a lot of people but not so obvious to some. The paper security was the thing that was traded, the thing that was stored, the thing It was literally handed from person to person for hundreds and hundreds of years going back to, you know, who knows, actually. But some of the earlier sort of stock exchanges and stock trades were in Europe, and they were about sending vessels over to the new world. And obviously, more recently, but still a long time ago, the New York Stock Exchange was a group of men in the park in New York, trading paper securities. And that led to what we see today. Not just with the New York Stock Exchange, but with all securities trading on all major exchanges.

And I think that there was the technology to take it from digital (paper) to electronic was a significant event. They used to require warehouses of like many, many, many warehouses all over the place to hold these securities. And for a lot of people that remember, and I even remember, the idea of bearer shares, where the bearer, the person that held the shares on that thing. It didn't have an electronic representation anywhere. It was literally that thing - and obviously one of the reasons why they're gone is because of compliance issues, you could track who the owner was. They're largely gone from the planet today. But this migration from paper to electronic allowed instead of you know, seven days for someone, a client, to find the time to climb three storeys and go over, you know, this this large floor to find this one little paper security and then put it - give it to a courier. And send it up the street or across the country to be able to put that on on a microchip and be able to retrieve that as quickly as they could, was obviously an innovation.

Now, many still have that paper certificate warehouse its just about the retrieval is much, much quicker. Now the difference between electronic and digital and I, definitely get the confusion there because digital is a technology and electronic is also, I guess, a technology. But the difference is - and so why often say a paper security is a security, and electronic security is not a security, and a digital security is a security. And the difference is, is that is a difference of ownership. It's the difference of control. The electronic version is a facsimile. And, I can't, and no one should, downplay the benefits of electronic versus paper. The public markets, and one of the arguments against digital and not against digital but put toward the idea of how important is this digital paradigm, is they work pretty well, right? And that's - that's very true compared to the paper model. But it's not at all true compared to the digital model.

And so, the - for example, I mean, even in the electronic world, we have theft, loss, so broker dealers or other investment dealers, stealing these things are going bankrupt and losing them. We also have I think it was Dole, the Fruit Company, and unbeknownst to itself, not its fault, but it's investment banks fault, sell shares, that didn't exist. And that is only possible because someone made a mistake somewhere, and electronic version of the security was created and was correlated to a system or a database that didn't know that that shouldn't occur. But digital security on the other hand - and the first point actually I want to make before I finish that thought there - is that you know, this comes in digital securities are typically one fifth to one 10th the cost of trading electronic securities, simply because a lot of the intelligence of the security is embedded in the digital version and not the electronic version. So you don't need all these other market participants, transfer agents, custodians, clearing selling services, etc. to get involved because it happens naturally. It's quite literally programmed into the thing.

But the digital security itself, is basically created from a quasi-public quasi private, meaning people that should have access have access, investors, issuers, other important service providers, also regulators, perhaps government officials can see this blockchain, this distributed ledger, essentially issuance. And so therefore, because it's public, because it's immutable, or quasi public, I should say, and because it's immutable, this thing of theft, and loss and, and selling things that don't exist, simply cannot happen. And so it's much, much more secure it is. And that's why we say it is security, because it is representing the paper security, which is the world we live in today. In three to five years, there'll be digital native security issuances that aren't correlated to paper. But for now, because that that blockchain is immutable and public, we can know for sure that it represents the actual security. So that's why we believe it is a security where the electronic version is not.

Tristram Okay, that's terrific. And I think the one thing a lot of people don't realize when they're, you know, when they're doing a trade on their phone or whatever, is all of the processes in the legacy market is just an incredible number of people, processes, checks and all this other stuff that they never see. And they probably have no idea even exist. It's enormous.

James It is absolutely enormous. The number of things that get moved and the cost that gets buried and so people - I'm glad you brought that up, because the - you know, the cost of large trades, for example, how brokers have to put aside 5% of the trade and take three days to settle it, the amount of capital that's locked up from that as well. And there's all of these things that are occurring, and fortunately or unfortunately, it's - I think it's cool, especially the retail public market has these now, these cool little RobinHood and Wealthsimple apps that made this look really easy. And you can say, well, it's, it works well, and it's cheap. Right? And but the reality is, is that the costs are buried inside the investment itself. So all they've done, it's kind of like when you buy a house, you don't pay for that, that broker, right? Of course you do. Right? The seller has built that into the cost of the house. So if there were no brokers, if there was a software to do that, that house would be 3% cheaper. So in this case, as well, what we'll see is, is that the retail public has been convinced, misled, indoctrinated, into thinking everything's free now. But the truth is, it's baked into the cost of the item. So the item, the cost of the item will go down or the value go up, by the way, the the investable benefit

Tristram Yeah. And so, taking that by extension - so, the concept of when an asset is digitized that it increases in value. Can you explain that a little bit based on way you're approaching this here?

James Sure. And I think one of the the best sort of frame of mind to have in thinking about this is compare say the US dollar to the Zimbabwe way dollar. Or more fair would be the Canadian dollar to the Zimbabwe dollar. The US dollar is its own currency. Bretton Woods, you know, was an attempt to make the US dollar the world's reserve currency by taking it off the gold standard, etc, and largely succeeded. The Petro dollar creates sort of this world reserve currency, reality or status, that makes it unfair to compare it to any other currency and that's why the fed by the way can print all these trillions. But anyway, for a normal state, Canada versus Zimbabwe - if we look at what it what makes the Canadian dollar worth more than this, and it uses Zimbabwe dollar, obviously, because recently it had massive hyperinflation. And there's a lot of reasons, and so obviously, we understand that's Canadian - Canada's proximity to the US, helps. Canada's good school system helps. Its fondness of equities, and innovation helps, etc. There's no doubt that there's things that the country is just more fortunate to have. But it has also done a really good job of enhancing the attributes of currency, of its currency - Canada, to become fundamentally more valuable. And so it you know, if we looked at two parallel paths, two parallel universes where Canada was actually Greenland, and had made very different decisions in terms of its priorities economically, we could see a Canadian dollar that would be worth vastly less than it is today.

And so some of the things, there's eight, I mean, there's probably more than that you could imagine more, but typically, there's eight characteristics of money that increase or decrease the value of that money. And they're things such as the divisibility, durability, portability, acceptability and so on. So again, the divisibility, you can take $100 bill and divide into 50s or 20s, or 10s, etc, that gives it more utility, more people will accept it. Acceptability also. Even the difference between American Express and a Visa card is significance, its value. Visa is a bit more valuable in some sense, because more people accept it. Durability, can it be destroyed? etc, etc.

And so the one thing that is also important to understand is that the people that are doing the digital asset thing right today are not saying, I'm creating something out of nothing, and it's only going to exist in the digital asset world. I think that that is either naive or willfully, you know, incompetence or an attempt to take advantage and not a smart approach to this. So, we have simply said we're going to acknowledge the world that exists today. So in our fund, we have some of the smartest people that represent real estate, smartest people that represent ventures, bonds, public equities, precious metals, etc. All of them are our experts in their own asset class, finding the best paper assets, the best conventional assets, the best real world typical assets they could find. And then we are adding a digital enhancement to it. And so this digital asset, this digital representation of it, which is actually not a facsimile, but an actual representation of that asset, now becomes more valuable because of all the things that I said. It becomes much more portable.

So let's say public equities, buy Apple shares. The markets in the in the US are nine to five and Monday through Friday, they close and that's it. And so if I take in, some people that know the markets a little bit, GDR, ADR like an American Depository Receipt, and I wrap a bunch of Apple shares inside and then I take that digital version of it and I port it over and trade it on a foreign exchange, a foreign federally registered and regulated digital securities exchange that is open 24/7  365, I've added value to that thing. It now has larger window, like in that case, the market never closes. So that portability of it becomes - lifts the value of that asset. The access - more people can access, you know, you list it on - multi list on several different digital securities exchanges, all of a sudden new markets have access to that thing that have never had access to it before.

The durability it's immutable, is an indestructible, distributed ledger technology. You can't have a database failure and it gets wiped out. It's distributed, it's backed up to a point where it can't be harmed, actually. So all of those characteristics if we compare a digital asset to a currency, if we look at the eight different characteristics, every single one of them is massive. enhanced by the digitization of any asset, really. So it really comes down to whether you take that digital representation and make use of it. Do you port it somewhere? Do you trade it in a market where it wouldn't be traded otherwise? Do you have more people attempt to access that? And if you do that, the value of that underlying asset would have just been stuck offline, unavailable, in North America outside of market hours, you will naturally increase the value of that thing.

Tristram That's a great way of looking at it. Now, from a point of view of looking at investments for your funds, how do you approach that process?

James From the venture side, we've not had any issues in terms of volume or quality. And it's simply because we've been doing this for so long. So in that one seems to be a bit different than any others. So to comment on that, I would want to comment on on that, generally. I'd want to comment specifically on ventures first. I think we're really fortunate that I and many of us in the organization have just been in ventures for a very, very, very long time. So I think I probably, on a day to day basis, take for granted all of the people, the wonderful people that I know and trust now, and actually like, as well, many of them are friends. And many of those people are our big names in the ventures world. That creates just an extraordinary amount of high quality, sort of deal flow for us to analyze, and we have to throw a lot of technology at it to process at all. So that just happens as a matter of - as a matter of being and very fortunate. I think I commented on the rest of them.

And we we love to actually acquiesce to expertise. We love to acknowledge what we don't know, and sometimes even try to figure out what we don't know what we don't know, and get people in place to either teach us or manage that thing for us. With our funds, we've compiled just an extraordinary Investment Committee, that are again also fairly well known people and are experts in their in a category. And what's amazing is, as I said, each one of these is not only an expert in precious metals or real estate, but they actually are operating on the edge and working meaningfully with the digitization of that asset. They have been working with in many cases for decades. And so in terms of finding the investment opportunities, we rely heavily on them to feed to us. And our intention is always - our investment strategy as a fund, compared to another fund, needs to be better on just with paper alone, that the digital enhancement of it should be just extra alpha, extra gains and extra returns. And we always want to hold ourselves to that very, very difficult and strict requirement that our paper conventional investment strategy alone needs to be better than than anything else that we see.

Tristram Okay. I recall that you had discussed in one of your podcasts or or presentations that the existing nature of private markets is largely archaic. Can you elaborate on that a little bit?

James  That Yeah, that's interesting. And actually, again, a lot of people probably don't know just how big the private markets are, and how disconnected and it is, and how, how poorly it runs. And what I find interesting is that we're really focusing on the private markets right now. A) because there's a lot more opportunity there. First of all, it's a vastly larger group of markets than the public markets. And again, that comes as a surprise to a lot of people - vastly, vastly larger.

And also, going back to the the other point that I made too is that, it is sort of true, the public markets work fairly well. The rest of the story is that they could work about 10 times better, 10 times faster, 10 times cheaper. And we want to do that too. And that is really for us, the most important thing, because our core determination is to democratize access to early stage investments and early stage fundraising. Absolute financial inclusion. So that will require the public markets. But what I find really interesting is that we are in the private markets very intentionally. And I think that this is just, you know, that idea of ventures, eat your own dog food, we decided that we were going to follow our own principles and do two things. One is go to the market that needs it the most, and then also learn before you go to the riskier market. And so, I think that there's a fairly big financial reward for us if we can solve that private marketplace issue. And that will help us to go to the public, which has a lot more liability and a lot more risk, with a lot more clarity, performance data as we've learned a lot of our lessons and now we can make a very, very confident bold public offering.

But in the private world, I mean DealSquare itself is quite an innovation. And that is a private marketplace, that was as I mentioned, JV'd, created by Neo Connect, Canada's second largest federally registered Stock Exchange, and FrontFundr, an exempt market dealer that focuses largely on early stage companies is in a FinTech sandbox, and focuses a lot actually on crowdfunding. And they created this thing called DealSquare that is the private marketplace and really the front end UI for a system that Neo created called Neo Connect, and a back end that allows dealers to connect to each other. So the DealSquare thing is essentially the ability to allow investment dealers to see private placement and offering memorandum fund opportunities. And so that, you know, the reason why I describe that is because that seems like - that should have existed long time ago, 20 years ago, 25 years ago...

Tristram Yeah

James ...when we were first building marketplaces, and yet it doesn't exist. And so you know, if I look at the complete far end of that, and we do see some actual angel lists doing syndicates, and some of these ATSs trying to get the permissions to do secondary trading. But if - I mean, our goal is to have the entire lifecycle of an early stage venture go from six to twelve years to six to twelve months.

And again, that's another reason why financial inclusion is sort of a matter of fact - exclusion pardon me, is because not a lot of people can park their money for ten years. And so if we can shorten the window on that, and then  we have more people willing to participate. And you have to create liquidity, especially for public markets.

So in the private side, I think as we, as we become - as we introduce more and more efficiency, and the reality was so back to that venture capital thing. You know, people had shares paper shares in these companies, and it could be things like Uber and Facebook or it could be a bunch of other tech companies that we never heard of because they didn't survive. Almost no liquidity. No marketplace. Nowhere to park those shares, you know, trade them, even at a discount because you want to get out early.

Most GPs, general partners of venture funds, have no desire to help LPs get out, and so, you know, they don't want to facilitate trades. And I really don't know why, to be honest, no one's - well, I have some suspicions. Securities laws and trading are very, very difficult to jurisdiction base. There's a lot of work that needs to be done. And incredibly I think, actually it comes down to the thing that needed to exist facilitate all this didn't exist, and that's distributed ledger technology. So now that we put that into sort of the toolbox, all of a sudden it's like, yeah, private marketplace is an absolute disaster, unnecessarily shocking that no one has taken that on, even for self interest. Like a lot of people that have those illiquid assets and have no way to sell, you think that a bunch of them would get together and create a solution, they haven't.

So I think that introducing the visibility first, so just marketplaces where you can see things for sale, and then introduced the sort of trade engine and the ability to create sort of a central source of truth for securities that enables trading, I think we're gonna see massive, massive, massive, not only efficiency in terms of the amount of trading that goes on in private, which is very little, but we're going to see, as I said, the cost drop and access increase. I think, when people think that they can get out in ten months, or even twenty or thirty months as opposed to ten years, people will put more money in. So I think we're going to see the private market increase in size, but a lot of that will conflate and hit and I think migrate into the public markets. So we're just going to see a portion this sort of merge.

Tristram  Yeah, it's like - it's like adding, you know, by having liquidity, you're adding velocity to the entire innovation and investment process.

James Yes.

Tristram Now, what regulations or what challenges does this particular approach face right now? Or are there many challenges in terms of setting up a good secondary market for private securities?

James None. There are none. Other than the participants, the sort of proliferation of information and the acceptance of that information as being real and meaning getting marked participants to actually participate. One of the things that was different, I think, than the people that were doing digital security things around us was that we actually approached regulators and we talked to multiple regulators around the world and we said: listen, we have no desire to innovate within your current regulations and legislation. We promise actually that will strengthen it, protect it, only innovate on top of it. Cool. And most people are like, well, that's great, because we're typically - what we're seeing around is people trying to attack that, pretend it doesn't exist, misuse legislation, misinterpret it, etc. And so fortunately, I guess for us, is that we had a real business case for making this work.

So we also spent a lot of money with accountants and lawyers to make sure that we're always always, always far on side. Now we did invest in startups, they were playing in FinTech sandboxes asking for exemptions. And I do think that more good, more inclusion can occur when regulators do allow for these temporary exemptions and see that they're not going to cause anyone to harm, other than maybe the people that are extracting significant amounts of value from the ecosystem. But our intention was to build a model that could exist today. And so the reason why I very, very bluntly confidently said, none, is because we actually believe that we have a system that is full circuit. It goes from one end to the other. That all necessary stops and checks for compliance are met. And all the issuer and the investor are getting maximum value with actually the least number of stops. And that if a regulator had to look at that they would say this is fantastic. In fact, it's much - aside from being cheaper and faster, it's much, much more secure. And if we believe that the regulator's mandate is to protect the investor, then they cannot object to it being more secure.

So I think, in what we what we see today, and a lot of people are not aware of this, that there's massive cross jurisdictional digital securities trading occurring today, and a lot of regulators that are just fine with that. So back to what I was saying earlier about this VC FinTech engine, this sort of global digital securities marketplace, trading ecosystem that we've created ourselves, is actually fully contained with our investments. And obviously, we're working with our investments to bring in more participants. We're seeing firsthand as well, that that is very true. So those people trading those cross jurisdictionally, these large amounts of digital securities, are people that we sit on the boards of, and so that, you know, this isn't just a press release or an article. And we're very, very excited actually about just bringing - I think the large institutional investors, the presentation is simply, are the offers simply one fifth to one tenth the cost? Yes or no? It's not this whole world is going to be different. You know, corporations are sociopaths by nature. We appeal to their self interest, which is profits in, and this system does that. They don't need to - hopefully the people inside the large financial institution are really excited about the implications of it as well, but the business makes it very clear business decision. On the other hand, if you know retail public people putting $500 on on early stage startups, they care about the implications more, you know. The costs are actually a kicker, and they're embedded and it's great. We feel great about it. We focus all of our energy talking about the emerging digital asset economy that is open, free and democratized. But we do not talk about that with the institutional investors and financial services companies. And they are more than happy, as we've come to find out, all of this passes, their Chief Compliance Officer and Chief Investment Officer. They read the long white papers that prove what we're saying is true, and then they're happy to just run some experiments, see that it is more secure, see that it is providing tremendous savings and then just increase their orders over time.

Tristram And what - and the one thing that you're talking about here that's incredibly valuable, much of it, but the idea that the compliance and the regulators are involved all the time in the process of developing out this ecosystem and this idea, because if you don't include those guys, you're gonna have a big problem eventually.

James Yeah, exactly. I mean, as a ventures guy, part of me really understands like, look at Uber. Uber didn't ask permission from the cities, they just did it. And I think that's a bad message. Because the two innovators and FinTech because the power of the SEC is very centralized, as opposed to, you know, attacking the taxi cartel in Austin, in Miami, in LA,which is in itself a really big thing to do but but trying to move the SEC away from its - what it believes its own, its current mandate is, is orders of magnitude larger than destroying a TAXI cartel.

And I think what I find fascinating and again, I don't know why we're able to see this and I'm just grateful that we were, but instead of feeling and we're in combat with - we sat down with ministers of finance, we sat down with, again the regulators and just said teach, like, teach us. What do you want? We don't you know, I'm not an economist and I'm not I don't come from compliance helped me understand. And they told us, we were, we thought, well, that's okay. Like that's not in opposition to what we want to do.

And I think there's this illusion or delusion that is very real in the FinTech world, especially in the crypto world, that the regulators and the money suppliers, and the central banks or maybe even in some cases, and some people interpret them as evil, but that they are also in opposition to what they're trying to create. That's largely not true. And back to your point, too, about these are people too, and you find out they're pretty cool. And when you can show them there's more security, they get excited. They're not as boring as many people might think. And what we found Stacs, which is out of Singapore, you and the Global Stock Exchange has a fairly large share in it. I actually flew out there, sat down with those guys they're extraordinary. And they built this marketplace where trading venues around the world can connect and trade cross jurisdictionally. Actually Stacs is an acronym for Securities Trading Asset Classification and Settlement System. And it's designed solely with distributed ledger technology to facilitate that. Not just blockchain based DLT based securities trading, but cross jurisdictional. And they're talking to major nation National Stock exchanges, and doing tests, beta tests, large beta tests. Anyway, they also were keenly interested in regulators perspective.

And here's what's amazing, is the amount of work that goes in to sort of proactively creating all of the documents that the regulator needs for companies to submit, you know. Even just small IPO, small public companies excruciating. It's extremely costly to the business. You can't be building your sales team and operating - expanding business objectives when you're filling out compliance reports and details and submitting that to the SEC or equivalent in your jurisdiction. And so the question was obvious. The question was if this is immutable and quasi public, and if every single trade is memorialized to this ledger, if we could give you that sort of God view and your jurisdiction where you can see every single trade that was ever made, and also some of these public company reports that have to be sent in, but minimized so abridged versions of everything. Would you stop these companies from requiring - from you requiring them to submit all this stuff which, let's be honest, they almost never read and his only resource or sourced when a public problem occurs and they look six months ago, and then they start some sort of enforcement action. In this case, so that's very reactive, the crimes already occurred, or the infractions already occurred. In this case, they can spend time and we can actually embed machine learning AI and even just predictive analytics for them looking for certain sorts of behavior. And they can proactively look at market participants that may be offside. And instead of having the 99% that are innocent, providing all of this detail that disrupts their business, instead, they're searching for the 1% of people that are offside, which seems like a more fair system, and they're excited about that model.

Tristram  That's great. Now for a final question. What are your thoughts on, you know, coming out of the current shutdown that we have. There's some discussion around the challenges that entrepreneurs are having. And how venture firms can help get our entrepreneurs and startups back on the road to recovery and building things. Do you have any you have anything that you wanted talk about with regard to that?

James  Well, I think the one one thing that's great about ventures world and especially as we emerge from this, again rich white man, venture capital led model of ventures, which is just really refreshing. We see more female entrepreneurs, we see more angels emerging, we see more venture capital investment theses, focusing on founders first and community and so on. And that has really led I think, especially in the Toronto area, in New York area to communities, real actual communities, and not just a set of Starbucks that venture capitalists and founders meet at. And I think what  we're going to see right now, and I know every single country has its own approach and has its own programs.

Canada so far seems to be doing a fairly great job of wage subsidies that include tech companies, I've been actually quite surprised to see that, not so surprised because the federal Liberal government has been really involved in tech sort of investments and in supporting the tech community, especially here in Toronto. But I think that the thing that we need to do is to support each other. And and I think, where venture capital funds and angels can do follow on investments to provide bridge capital. And again, I was surprised the federal government has put forward a significant - in fact, our - one of our venture capital funds, is able to I think, investments that are made in January, that the federal government will match those. And if we choose to follow on up to a certain amount match that as well. And so this, that is pretty extraordinary. And we put  one of our investment bankers on that, compiled a bunch of information, created a slide deck and distributed that to our founders to help them determine - I mean, if you don't need the cash, the capital, that's fantastic.

Many early stage startups do need that. And so that support is important. I don't know how long that will continue. And so I don't expect to necessarily want government participation. We will take it while it's there. I think what this is going to come down to is that founders first mentality, whether it's real or not, first of all, is going to be seen. So the venture capital firms that have said it, and aren't there for them at this very, very difficult time, are going to be found out, and that's a good thing.

And regardless, I think that the innovators are - these are people that naturally take a lot of risk. It's hard, even in good conditions. And so I'm hopeful that the mentors and the advisors and sponsors and the LPSare able to just over deliver and the fact that we're at home and when I have to waste time on commuting, and in some cases, maybe for some people showering, they should use that time that they get back to do zoom with their founders and actually ask them, not only how's your how's your runway, how's your mental health? How are you feeling? And I'm hopeful  that we take that trend, going from strictly looking at investments sociopathically, to realizing that there's full spectrum here of people, and it should have a social impact, sort of, or social responsibility. And the founders do matter. And the founding team is amazing. And realizing that actually, when we take care of the people, the investment becomes more sound, and more interesting. And I hope that this, one of the benefits that we that we get from this extraordinary event that we're all living through right now, is that we just get more of that. We realize it's all about that.

And we should stop some of these little silly things that we do, as a matter of probably just legacy mechanics of venture capital and instead just collapse it on the people. And not just like I said, solving basic business issues, but ensuring that people are safe and secure and as happy as they can be and as healthy as they can be. And I think if we focus on that the business takes care of itself from there.

Tristram Have I lost you James?

James I am here.

Tristram Okay, there we go. I want to be mindful of your time. Is there anything that we didn't discuss so far that that you wanted to talk about today?

James  No, I say, wow, this was - I can't believe nearly an hour went past. Yeah, I could do this for another hour. But I think you asked the very, very awesome questions and I had an opportunity to get a little bit more detailed than I normally do, so hopefully, anyone listening to that, that that's useful. So I know I appreciate your time. This is great.

Tristram  Well, you know, we can always do this again sometime.

James  Anytime. I love talking about stuff, so anytime you want to talk, I'm here, you let me know.

Tristram  Okay, great now before we go where can people connect with you and learn more about Exponential so we can get that in the notes.

James Exponential.io is the best place to go. From there, you know, click around to see  what calls to you. There's gonna be a lot of options to join the community, make investments, submit applications for funding and so on. There's a lot going on in that site. And I think I think it's pretty concise though. So you'll be able to find your way pretty quick.

Tristram  Okay, that's terrific. Thank you so much for your time today.

James  Sounds great. Thank you.

Outro : you've been listening to fintech Fridays brought to you by NCFA and partners. Tune in weekly for the latest fintech Friday podcast by subscribing to this channel. The National crowdfunding and FinTech Association of Canada is a non-profit actively engaged with social and investment fintech sectors around the globe and provide education research industry stewardship services and networking opportunities to thousands of members and subscribers. For more information please visit and see if a Canada dot org. Oh yea.

 

End of Podcast

 

Subscribe and Listen to more Fintech Fridays podcasts here

Join NCFA's weekly Podcast series 'FINTECH FRIDAYS' where we sit down with the incredible people in the Fintech community and talk about leading fintech products innovations developments and challenges!

Interested in getting involved as a partner or participant? info@ncfacanada.org

 


NCFA Jan 2018 resize - Visa’s digital dollar concept opens a door to central bank 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, 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 - Visa’s digital dollar concept opens a door to central bank currenciesFF Logo 400 v3 - Visa’s digital dollar concept opens a door to central bank currenciescommunity social impact - Visa’s digital dollar concept opens a door to central bank currencies
NCFA COVID 19 letter to government to support Fintechs and SMEs - Visa’s digital dollar concept opens a door to central bank currencies

Coronavirus resources 800 1 - Visa’s digital dollar concept opens a door to central bank currencies

NCFA Newsletter subscribe600 - Visa’s digital dollar concept opens a door to central bank currencies

FFCON20 Homepage Banner v3 updated - Visa’s digital dollar concept opens a door to central bank currencies

Forbes | Randall Lane | May 26, 2020 In a matter of weeks, Covid-19 spurred seismic shifts in how we work, learn and transact, and it helped usher in a new era that is smarter and fairer. The surreal year 2020 produces a personal Groundhog Day effect. The clock moves at one-quarter speed as the time-numbing diversions and necessities of a century ago, from jigsaw puzzles to yeast, fly off the virtual shelves. Simultaneously, though, the world is transforming at a pace unlike any experienced since World War II. In a matter of weeks, seismic, permanent shifts have occurred in how we work, learn and transact. The most significant shift is taking place in our economic system itself. See:  OpEd: IT’S TIME TO BUILD Capitalism, the greatest engine for prosperity and innovation ever created, was already under strain before the coronavirus pandemic. Despite a decade of impressive economic growth and job creation, a plurality of Americans still reported feeling as though the system was rigged, that hard work and playing by the rules no longer ensured success. “It is scary when you had the lowest unemployment, the lowest African-American unemployment, the lowest Hispanic unemployment, the lowest women’s unemployment,” says Michael Milken, ...
Read More
greater capitalism - Visa’s digital dollar concept opens a door to central bank currencies
The Globe and Mail | Patricia Chisholm | May 22, 2020 The emerging use of artificial intelligence (AI) to support or even replace human financial advisors is attracting the attention of regulators – mainly in Britain but also in Canada. While they’re broadly supportive of AI as a cost-efficient tool to broaden the reach of financial advice, they’re also monitoring the potential risks and challenges, trying to ensure that this advice remains both suitable and transparent for clients. The current crisis is certainly putting the usefulness of the new technology to the test. Tony Vail, chief advice officer at Wealth Wizards, a fwell-known provider of AI-assisted financial advice in Britain, says: “We’re finding increasing demand for our technology solutions [as a result of the crisis]. For example, our digital financial advisor, MyEva, had an unprecedented response to an [online] nudge offering help and guidance with finances related to the impacts of COVID-19.” See:  WealthBar rebrands as CI Direct Investing Given the increased attention on AI-assisted advice, Britain’s Financial Conduct Authority (FCA) is taking a proactive approach on the matter. Last autumn, the FCA and the Bank of England conducted a survey of more than 100 financial services firms on their ...
Read More
AI and fintech models - Visa’s digital dollar concept opens a door to central bank currencies
Wealth Professionals | David Kitai | May 21, 2020 CEO tells WP why the firm is rebranding and what new opportunities lie in the company's future Robo-advisor WealthBar is rebranding as CI Direct Investing with parent company CI financial increasing their ownership stake from 75 per cent to 100 per cent. Tea Nicola, founder and CEO of WealthBar, says that in terms of day to day operations nothing will change for their advisors and their clients. While she admits a bit of melancholy saying goodbye to the brand she built, she accepts that this is the logical next stage for her company and looks forward to the new challenges and opportunities she and her team will be taking on as CI Direct Investing. WealthBar will eventually be combined with Virtual Brokers, CI’s discount broker. See:  Why Partnerships Are the Future for Fintech “We're currently not making any major changes aside from the rebrand itself,” Nicola says. “We're simply fully focused on supporting our customers, growing with the current demand we're seeing and launching this rebrand.” Nicola explained that the rebrand fits in a wider strategy on the part of CI financial, unifying their group of companies under a shared banner ...
Read More
Wealthbar rebrand - Visa’s digital dollar concept opens a door to central bank currencies
Independent.ie | Adrian Weckler | May 21, 2020 A 20-year-old former BT Young Scientist winner has landed $16m (€14.6m) in new funding from some of Silicon Valley’s most prestigious US venture capital firms The famous former data security chief for Yahoo and Facebook, Alex Stamos, has come on as a new investor, as have Eventbrite CEO Kevin Hartz and (French firm) Datadog’s CEO Olivier Pomel.  The heavy-hitting Silicon Valley firms backing the venture are led by Index Ventures with participation from Sequoia Capital and Kleiner Perkins and assistance from Dublin-based venture firm Frontline. “We’re aiming to distill what GDPR did in 99 Articles down to a line of code,” said Mr Curran. Seven years ago, Sequioa invested in the payments firm created by another former Young Scientist winner, Patrick Collison and his brother John. Stripe has gone on to become one of the world’s most valuable private companies, valued at $35bn (€31.7bn). See:   Cyber security world first as unique guide is launched Evervault hosts a network of hardware-secured data processing ‘enclaves’ which allows developers to deploy their applications in privacy ’cages’.  These cages allow information to be processed securely with strictly controlled access but without changing the way that developers ...
Read More
Shane Curran Evervault - Visa’s digital dollar concept opens a door to central bank currencies
Forbes | Christopher Helman | May 21, 2020 It’s everyone’s dream to get paid to do nothing. Bitcoin miner Layer1 is turning that dream into reality — having figured out how to make money even when its machines are turned off.  Layer1 is a cryptocurrency startup backed by the likes of billionaire Peter Thiel. In recent months, out in the hardscrabble land of west Texas, the company has been busy erecting steel boxes (think shipping containers) stuffed chockablock with high-end processors submerged inside cooling baths of mineral oil. Why west Texas? Beause thanks to a glut of natural gas and a forest of wind turbines, power there is among the cheapest in the world — which is what you need for crypto. See:  Bitcoin’s “halvening” is upon us “Mining Bitcoin is about converting electricity into money,” says Alex Liegl, CEO and co-founder. By this fall Layer1 will have dozens of these boxes churning around the clock to transform 100 megawatts into a stream of Bitcoin. Liegl says their average cost of production is about $1,000 per coin — equating to a 90% profit margin at current BTC price of $9,100. So it’s odd how excited Liegl is about the prospect ...
Read More
texas turbines - Visa’s digital dollar concept opens a door to central bank currencies
Guest Post | May 23, 2020 Over the years, the many forms of data storage and transfer devices have failed due to one reason or another. Floppy disks used to get spoiled too quickly, and CDs were an inconvenience when having to burn data on to them just to make it portable. However, after the introduction of USB flash drives to the market, numerous problems faced by almost anyone who had a job working with computers were solved. They are known by many names; flash drives, thumb drives, USB drives, pen drives etc. and come in many shapes and sizes but their main function is storage and transfer of digital data from one location to another. The biggest benefit of these devices is that they are USB (meaning they connect via universal serial bus terminals) and the fact that they are plug-and-play (meaning that they do not require any external software to be installed before use). However, as with anything on the market, certain precautions need to be taken while making a purchase for a USB drive as well as during its use. Some Things to Know When Purchasing a Flash Drive: Avoid buying a USB drive that requires any ...
Read More
Flash drives and USB sticks - Visa’s digital dollar concept opens a door to central bank currencies
Plaid blog | Niko Karvounis & Jesse Dhillon  | May 20, 2020 The financial ecosystem is undergoing an unprecedented digital transformation due to new realities brought on by COVID-19. Consumers and businesses have turned to fintech to manage their finances in record numbers. Digital transformation that was expected to take years is now predicted to take place over a matter of months. Now, financial institutions everywhere must be prepared to meet their customers’ rising demand for digital connectivity. See:  With Plaid Acquisition, Visa Makes a Big Play for the ‘Plumbing’ That Connects the Fintech World Today, Plaid is launching Plaid Exchange to accelerate consumer-permissioned data access strategies for financial institutions. As fintech adoption has grown, so have the needs of financial institutions that must now manage unprecedented customer connections across thousands of fintech apps. Plaid Exchange gives financial institutions, from banks to wealth management firms, an open finance platform that includes critical tools required to manage the secure and reliable data connectivity their customers’ financial lives demand, today and for years to come. At the heart of this platform is the ability for consumers to maintain control and transparency into where and how their financial information is permissioned and shared, ...
Read More
Plaid exchange - Visa’s digital dollar concept opens a door to central bank currencies
Cyber Management Alliance | Aditi Uberoi | May 21, 2020 Established in 2015, Cyber Management Alliance is one of the world’s leading cyber incident & crisis management service providers offering advisory, executive training and bespoke workshops in all aspects of cyber crisis management, incident planning, incident response testing and tabletop exercises. Cyber Management Alliance (CM-Alliance) is the creator of the internationally-acclaimed NCSC-Certified, Cyber Incident Planning and Response (CIPR) course. Previous attendees of the NCSC-Certified CIPR course and tabletop exercises include organisations including the United Nations, UK Ministry of Defence, several UK Police Forces, NHS Trusts, European Central Bank, Swiss National Bank, Microsoft, Ernst and Young, BNP Paribas and many others. See: Accenture: Fintech, Cybersecurity and Methods to Handle Threat Cyber security world first as unique guide is launched Remote Working Cybersecurity Checklist Some areas of risk - note this is not a comprehensive list but a list to help you prepare for cybersecurity attacks: Cybersecurity Passwords Mobile Equipment Privileged Users Phishing Emails and Scams Policy and Illegal Activity Working remotely, Online Meetings & Calls Exceptions and Change Privacy Cyber Attack and Incident Response Backup Backup Backup HR and Mental and Occupational Health Video and Audio Conferences Helpdesk & Support Download ...
Read More
CMA Cybersecurity checklist - Visa’s digital dollar concept opens a door to central bank currencies
Digital | May 20, 2020 The huge e-commerce company also unveiled buy now, pay later and local delivery tools at its annual conference. Need to Know At Shopify’s annual conference, Unite, the e-commerce platform announced a number of new features. Shopify Balance Account is a “one-stop-shop” account for small business owners and a feature several employees are referring to as Shopify’s bank. The online platform also announced Shop Pay Installments, Fulfillment Network expansion, and Local Delivery products. The conference emphasized the importance of strong digital tools and local commerce in COVID-19 retail climate. See:  Shopify displaces RBC to become Canada’s most valuable company Analysis E-commerce giant Shopify announced a number of new tools and programs at its online Reunite event on Wednesday, the biggest of which is Balance, a banking account tailored to the particular needs of small business owners and entrepreneurs. Balance, which will be made available to Shopify merchants in the US later this year, is a one-stop-shop within Shopify’s platform admin allowing sellers to track cash flow, pay bills, and monitor expenses. According to a press release from Shopify, 40% of merchants are currently using personal accounts for some business needs; Balance aims to provide tools that ...
Read More
shopify balance - Visa’s digital dollar concept opens a door to central bank currencies
Forbes | Susan Galer | May 19, 2020 Timelines for the emergence of quantum computers may be fuzzy, but the threat they pose to the vaunted security of blockchain technology is profoundly real. Originally popular as fail-safe security for bitcoin enthusiasts, blockchain is making inroads across numerous industries, most notably as a track and trace tool proving the provenance of goods across vast supply chains. Blockchain-based security may be even more valuable in managing supply and demand shocks during the pandemic and after. However, as blockchain services grow and quantum computers begin to emerge, now is the time to start thinking about quantum-resistant blockchain. “Once quantum computers can break the cryptography being used today, blockchain loses its immutability,” said Cedric Hebert, senior researcher at SAP Security Research. “We wouldn’t be able to trust new transactions on a blockchain that wasn’t meant to resist quantum-fueled attacks. Companies will need to adopt new protocols to resist quantum attacks.” See:  The research frontier: where next for AI and collective intelligence? Right now, it’s difficult to go backwards on a blockchain’s immutable ledger and change original information in each block of the chain. This is especially the case as blocks are added with more ...
Read More
blockchain security - Visa’s digital dollar concept opens a door to central bank currencies

share save 171 16 - Visa’s digital dollar concept opens a door to central bank currencies