Category Archives: Research

February 3, 2021   Blockchain, Crypto, Digital Assets, Tokens, CBDCs, Stablecoins, Metaverse, NFTs, Cyber Security, Quantum, Hacks, Fraud Alerts, Risks, InsurTech, Digital Identity, Privacy, KYC, AML/ATF, Enterprise, Scaleup, Entrepreneurs, Start-ups, Small Businesses, FinTech and Alternative Finance, Innovation and Resources, Research, Voices   No comments

Survey Until Feb 26: Ontario Seeks Input from Individuals and Businesses to Help Shape Digital ID Program

Ontario Government | Treasury Board Secretariat | Feb 2, 2021

Digital identity survey on ontario

Initiative will offer more convenient access to government and private sector services

TORONTO — The Ontario government is launching an online consultation to seek input on the province's plan to introduce a digital ID by the end of 2021. Through the Digital ID program, people and businesses in Ontario will be able to securely and conveniently prove their identity online. This will save people time and money and offer more convenient access to government and private sector services.

"We want to assure people that a digital ID will not only offer simpler and easier access to services, but it will be safe and secure, encrypted and harnessing the latest technology to protect your information and credentials," said Peter Bethlenfalvy, President of the Treasury Board, Minister of Finance and Minister Responsible for Digital and Data Transformation.

See:  KABN North America Partners with Indicio to Build Liquid Avatar’s Verifiable Credential Ecosystem (LAVCE)

"As we develop this initiative, we want to hear directly from the people to ensure their priorities are reflected in this innovative, digital approach. No one has a monopoly on good ideas and we are prepared to listen."

Launching today, the consultation will be open from February 2 to February 26, 2021 via online surveys for the public and small-to-medium-size enterprises (SMEs) as well as virtual focus groups for SMEs.

Participants will have the opportunity to help shape the government's approach to introducing a digital ID while voicing their top priorities and concerns.

Strong encryption and privacy protecting technology will be at the core of a digital ID to ensure personal information such as name, birthdate or address remains secure. This initiative will make Ontario one of the leading digital jurisdictions in the world.

Potential uses of a digital ID include:

  • A parent could more easily access their children's immunization records and share them online with their school.
  • A small business owner could reduce red tape by registering for licences and permits or opening new accounts online.
  • A farmer could register a farm vehicle online without travelling to government offices to prove their personal identity.
  • A senior could check in to a doctor's appointment online and securely share health information with caregivers and health care providers.
  • A digital ID would also support COVID-19 safety protocols by limiting unnecessary in-person contact to help stop the spread of the virus.

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

Ontarians will be able to combat ID fraud and protect their data more effectively with a digital ID. By using this innovative technology, users will be in full control of what identity information is shared and with whom. For those persons who choose not to have a digital ID, they will still be able to prove their identity and access services with their physical documents.

Digital ID, a signature project of Ontario Onwards: Ontario's COVID-19 Action Plan for a People-Focused Government, is one of more than 30 projects that will improve the way people and businesses interact with government by offering access to more services online.

Did you know?

  • A recent study estimated the use of Digital Identity could increase efficiency and result in a potential $4.5 billion of added value to the small-and-medium-size enterprises sector nationally.
  • Based on estimates of the impact of Digital Identity on GDP in mature economies by McKinsey Global Institute, Ontario stands to gain $8 - $25 billion in economic value alone.
  • A recent analysis of 335 government services found that approximately 70% of government services required some level of identity verification, and most of the physical cards and documents used today to prove identity (e.g., driver’s licences or photo health cards) were not designed for online use, leading to the risk of identity fraud.

 

Contribute Your Inputs and Help Shape the Future of Digital ID in Ontario

The surveys are open until 11:59 p.m. February 26, 2021.

Take the Survey for all Ontarions --> Now

Take the Survey for Businesses --> Now

 

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

NCFA Financial Innovation MapNCFA Innovation Opportunity BriefsNCFA Fintech Insights
NCFA Fintech WhispererNCFA Fintech Fridays PodcastNCFA Weekly Newsletter

 

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February 2, 2021   Enterprise, Scaleup, Entrepreneurs, Start-ups, Small Businesses, Equity Crowdfunding, Alternative Funding, FinTech and Alternative Finance, Fintech International, Fundraising, Investing, Trading, Innovation and Resources, Online Funding / Investing Campaigns, Online Funding / Investing Portals, Research, Venture Funding and Building, Voices   No comments

CCA 2020 RegCF Year in Review Report (NCFA 20% Discount)

Crowdfund Capital Advisors | Sherwood Neiss | Feb 2, 2021

RegCF Crowdfunding 2020 year in review

2020 Year in Review

(Purchase with special NCFA link below and receive 20% DISCOUNT)

2020 was a year of crisis for the country and the financial markets, but it was also the year that fully demonstrated that online finance delivers capital to diverse SMEs, across the country, while providing robust investor protections. Regulation Crowdfunding:

  •  Democratizes access to capital for women and minority entrepreneurs:
    • According to a January 2021 survey of SMEs that successfully raised the maximum $1M from Regulation Crowdfunding:
      • 45.5% had female founders
      • 40.9% had minority founders
      • 100% said that they would have raised $5M if that amount would have been available to them.
    • As a point of comparison, according to an April, 2020 Securities and Exchange Commission Report (https://www.sec.gov/spotlight/sbcfac/sbcfac-learn-from-data.pdf)
        • Black, latinx and middle-eastern founders  received just  5% of all VC investment
        • Women founders received just 13% of VC investments
  • Distributes capital to local economies across the United States despite geographical biases from the Venture Capital industry.
  • Provides local investors a legal structure to support the local entrepreneurs they believe in, with a limited amount of risk capital.
  • And over the last 4 years, with appropriate investor protections, these investments have been made with no reported fraud.

See:  RegCF Online Investment: Highest Monthly Activity in July; Small Firms Most Affected by COVID-19 Find Ready Investors and Capital

No other part of this market has such complete, longitudinal data that can deliver easy to use and comprehensive transparency to the Securities and Exchange Commission and FINRA as they conduct their oversight of the private capital markets.

Regulation Crowdfunding was one of the most bi-partisan pieces of legislation in the year it passed. It allows any startup or small business to raise up to $1.07M online from their customers, friends, family and followers. Key points about the data and this report:

  • The data in this report consists of over 125 data points collected from disclosure documents from offerings that are filed with the SEC and listed on Online Investment Platforms.
  • Each day this data is aggregated from over 50 Online Investment Platforms that are registered with the SEC.
  • The data is cleaned, normalized and transmitted to Bloomberg daily for market analysis.
  • We look at data from exempt offerings that take place under Regulation Crowdfunding and parallel Regulation Crowdfunding/506c (Accredited Investor crowdfunding).

The data in this report demonstrates that the industry has matured to a point where the market is ready to utilize the regulatory modifications that are scheduled to go into effect in March 2021. Over the last 4 years, investors, platforms and issuers appear to have followed the law and have developed scalable operational systems as well as transparency and accountability within the model. We believe that 2021 will be a year of growth and opportunity for the Online Investment Industry for the following reasons:

  1. Local economies are struggling due to the global pandemic and access to traditional capital is still a top challenge, if not the top challenge, for small businesses.
  2. Stimulus capital, if it in fact reaches the smallest businesses and economies across the nation, represents a bandaid and entrepreneurs need access to more sustainable capital which online investment/community finance provides.
  3. Market awareness of the industry has reached a tipping point where over 90% of Congressional Districts across the United States have had at least one Regulation Crowdfunding offering.
  4. There has been no reported fraud or systemic failure in the model.
  5. As more fraud continues to pervade the public markets, and distrust in them increases, investors are looking to diversify modest amounts of capital into local businesses/entrepreneurs they believe in.
  6. The SEC voted on and approved changes that go into effect in March 2021 that would increase the maximum issuers can raise from $1.07M to $5M. This additional “head room” in funding availability will attract more issuers and more mature/larger issuers that are able to raise and utilize up to $5M in capital.

See:  Biden Administration to Review and (possibly Delay) Investment Crowdfunding Improvements

A few of the key highlights include:

  • Offerings by all types of businesses in all 50 states and Puerto Rico  successfully raised more capital.
  • Offerings were up 61% year over year.
  • The number of new Issuers (SMEs) of all sizes increased 58% and raised more in 2020 than any prior year
  • Local investors are deploying rational amounts of money into local businesses in areas outside of Venture Capital
  • Regulation crowdfunding investments continues to grow at a compound annual growth rate of 88% with high unrealized returns 
  • Demographics: 1,085 Cities, 447 industries, and 750,000 investors have engaged in Regulation Crowdfunding

NCFA 20% Discount:  Sale price $200 USD (normally $250)

Purchase the 81 page PDF report on RegCF 2020 in Review with NCFA Discount --> Here

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, 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

NCFA Financial Innovation MapNCFA Innovation Opportunity BriefsNCFA Fintech Insights
NCFA Fintech WhispererNCFA Fintech Fridays PodcastNCFA Weekly Newsletter

 

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February 2, 2021   Blockchain, Crypto, Digital Assets Regulations, Blockchain, Crypto, Digital Assets, Tokens, CBDCs, Stablecoins, Metaverse, NFTs, FinTech and Alternative Finance, Fundraising, Investing, Trading, Innovation and Resources, Research   No comments

Kraken report: Crypto Yields – Deep Dive on DeFi

Kraken | Report | Feb 2021

Kraken report Crypto yields – deep dive on defi

The rise of Decentralized Finance (DeFi) has not only brought a newfound wave of innovation to the broader crypto ecosystem, but also the opportunity for savvy investors to generate staggering returns.

Like all markets, especially those in a state of adolescence, DeFi’s reward isn’t without its risks. After all, depositing assets in internet protocols is not the same as placing money on a trusted exchange or a bank.

See: 

With this in mind, Kraken Intelligence, our team of in-house research experts, has published their second report in a multi-part “Crypto Yields” series. This time around, the team analyzed the makeup of DeFi lending to help market participants navigate this exciting digital asset sector, offering a digestible and comprehensive assessment of the associated counterparty risk, the expected returns, the liquidity, and the variety of ways DeFi can help you earn on your assets.

One of the most vulnerable attack vectors is price manipulation - an area we explain in great detail in this report. To further transparency and security with these platforms, Kraken has also released the Oracle, a utility that verifies data used to price DeFi contracts.

By downloading this report, we anticipate you will have a greater understanding of how DeFi markets work, the unique market dynamics of DeFi lending, why DeFi is a promising and rapidly growing part of the industry, and the risks innate to DeFi.

We cover the following opportunities and risks:

  • Smart Contracts – As human written code is prone to errors, hackers and malicious actors can take advantage of poorly written code. To mitigate these single points of failure, participants and lending platforms can be proactive in analyzing and managing their level of exposure to such risks.
  • Collateralization – Lending in decentralized finance is only as strong as the source of the liquidity. In times of volatility, liquidity is often put to the test. When market activity picks up, price can fluctuate wildly or funds may not be accessible. To prevent such scenarios, many loan providers are taking proactive steps with overcollateralized loans and dynamic interest rates.
  • Counterparty – One way to determine the level of trust the market has placed on a counterparty is by comparing prices on different platforms. Once you identify the risk premium associated with a particular platform, you can decide if continuing to use it is in your best interest.
  • Governance – The entity who sets the rules of the platform has a great deal to do with the associated risks. The Maker and Synthetix Foundations are two examples of central structures who through their tokens have transferred power democratically to their respective communities. Changes to the system are now voted on by the community to decentralize the risks of their platforms.
  • Liquidity Pools - Price discrepancies in automated market maker exchanges are attractive to arbitrageurs seeking to buy up the difference. That difference eventually creates a permanent loss once the liquidity is withdrawn. Stablecoins have become an attractive solution for these pools as there is less volatility among prices.

Download the 21 page PDF Kraken report --> Now

 

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

NCFA Financial Innovation MapNCFA Innovation Opportunity BriefsNCFA Fintech Insights
NCFA Fintech WhispererNCFA Fintech Fridays PodcastNCFA Weekly Newsletter

 

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February 2, 2021   FinTech and Alternative Finance, Innovation and Resources, Legal Issues, Regulation, Consultation, Research, Stories   No comments

Fintech regulation: how to achieve a level playing field

BIS |  Fernando Restoy | Feb 2021

level playing field

The disruption created by technological progress in the market for financial services arises from (i) an expanded set of services offered to consumers; (ii) the processes and distributional channels followed by firms in offering those services; and (iii) the arrival of new (technological) suppliers of those services.

These developments are bound to generate profound changes in the market structure, as non-bank fintech2 players are now becoming very active in offering services that in the past were predominantly offered by banks.3 Their presence in the payment service area is already quite significant. However, they are also gaining weight in the provision of wealth management services, the sale of insurance products and loan underwriting. Those services are increasingly being provided within established technology platforms run by large companies (big techs) , where a variety of financial and non-financial products are offered by a plurality of suppliers that may or may not be linked to the platform owner (Frost et al (2019)).

See:  Fintech Regulation: Achieving the right balance to foster innovation

A growing number of products and players increases supply, lowers the cost of financial services and encourages financial inclusion. However, it may also generate risks for the stability and adequate functioning of the financial system.4

So far, despite remarkable growth in the recent past, the scale of fintechs’ operations is generally limited relative to the overall size of the financial services market. Yet, in some jurisdictions, specific firms (Ant Group in China or Quicken Loans in the United States)5 have already gained leading market positions. Given significant economies of scale, data superiority and the large scope for network externalities, big techs could very well eventually achieve market dominance (De la Mano and Padilla (2018)). There is an ongoing worldwide discussion on what the policy approach should be with respect to those market dynamics. Within that discussion, a relevant question is whether the growth potential of fintech and big tech companies could be, in part, the consequence of lighter regulatory requirements compared with those for incumbent players such as commercial banks. This argument could be based on the observation that financial institutions have specific (entity-based) obligations, such as those related to prudential requirements, which do not apply to other competitors in specific markets such as payment services, wealth management or credit underwriting. Regulation specific to banks entail higher compliance costs and can therefore put them at a competitive disadvantage.

The existence of regulatory distortions could violate the principle of good regulation, which calls for any public intervention to limit market impact to the minimum required to achieve relevant objectives (OECD (2005)). Unwarranted discrepancies between regulatory requirements for different types of market player could also disrupt banks’ activities as intermediaries, thus posing risks to systemic stability (FSB (2019)). Moreover, distorted market developments leading to big tech dominance could threaten competition in the financial services market (BIS (2019)), possibly affecting consumer protection and market integrity.

See:  How Banks, Fintechs, and Customers Win Together

The banking industry has frequently stressed (eg IIF (2017)) that regulation could promote a level playing field through the adoption of an activity-based approach, as opposed to an entity-based one. That would mean imposing similar requirements upon all active players in a particular market segment, regardless of the legal nature or other characteristics of those entities and, in particular, whether or not they hold a banking licence.

However, entity-based prudential rules for banks are based on specific policy objectives – such as financial stability – that are not subordinated to the achievement of a perfectly competitive landscape. Therefore, level playing field considerations cannot be enough to support a radical overhaul of the current regulatory framework.

At the same time, it could be argued that fintechs – or, more likely, big techs – can also generate concrete threats to relevant policy objectives such as market integrity and stability or fair competition. If that were the case, the introduction of specific rules for those entities, as they exist for banks, would not only contribute to primary policy goals but would also help promote a level playing field.

This paper discusses how level playing field considerations should affect the definition of the regulatory framework following the emergence of fintechs and big techs. It also analyses the extent to which activity-based and entity-based regulations could help achieve socially desirable objectives.

See:  Davos 2020: Financial inclusion and fintech is key to meeting the UN SDGs

The structure of the rest of the paper is as follows. Section 2 outlines the current regulatory framework for banks and fintech players. Section 3 sets out some considerations that may help in assessing the current framework and the scope for a move towards more activity-based regulation. Section 4 assesses possible adjustments to specific regulations that could help achieve a better balance across different policy objectives. Section 5 concludes.

BIS on fintech regulation and achieving level playing field

Download 27 page PDF report on 'Fintech Regulation: How to Achieve a Level Playing Field'--> here

 

 

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, 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

NCFA Financial Innovation MapNCFA Innovation Opportunity BriefsNCFA Fintech Insights
NCFA Fintech WhispererNCFA Fintech Fridays PodcastNCFA Weekly Newsletter

 

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February 1, 2021   Enterprise, Scaleup, Fintech AI/ML, Data-driven, Automation, Generative AI, Fintech and Networking Events, Fintech International, Fintech Services, Innovation and Resources, Legal Issues, Regulation, Consultation, Research   No comments

Google-Fitbit aquisition closes after in-depth European Commission investigation gives clearance

Linklaters | Anna Fava | Jan 28, 2021

google acquires fitbit

Earlier this month Google closed its acquisition of Fitbit, following an in-depth investigation by the European Commission resulting in conditional clearance late in 2020.

The EC’s decision brings a new approach to merger review in data intensive industries. The EC accepted a “data silo” remedy and an access remedy of an unprecedented duration, both of which are innovative.

See:  House Lawmakers Condemn Big Tech’s ‘Monopoly Power’ and Urge Their Breakups

It also shows that the EC’s more interventionist approach to big tech is not limited to the DMA proposal and that there will remain a role for the more traditional competition law instruments to support the EC’s digital agenda.

We consider some interesting aspects of the case, while we await publication of the detailed decision.

Data, data, data… The EC’s concerns

The EC’s press release highlights the following concerns:

  • Google could use Fitbit’s health and fitness data and technology to further personalise Google Ads and foreclose competitors, in particular in online advertising.
  • Google could restrict access to Fitbit’s users’ health and fitness data to foreclose competing digital healthcare service providers.
  • Google could foreclose Fitbit’s competitors by degrading interoperability between Android smartphones and third-party wearables.

The EC also considered, but ultimately dismissed, concerns that the combination of the parties’ databases could give Google a competitive advantage enabling it to foreclose competing digital healthcare service providers.

Data protection, access, interoperability… The remedies

See: 

At their core, the commitments require the following:

  • Ads commitment. Google commits not to use certain health and fitness data that are generated from Fitbit devices in or for Google Ads. To comply, Google will maintain these data in a separate data silo. Google will also provide users with an “effective choice to grant or deny the use” of certain data by other Google services such as Google Search, Google Maps, Google Assistant, and YouTube. This commitment will last for 10 years, and the EC may extend it by up to an additional 10 years.
  • Web API access commitment. Google will provide third parties access to the data types made available in the Fitbit Web API, subject to certain privacy and security requirements. It will update the types of data available through the API during the lifetime of the commitment based on an update mechanism that reflects what data types other industry participants make available through their APIs. The commitment will last for 10 years.
  • Android interoperability commitment. Google will continue for 10 years to make available to wrist-worn wearable OEMs (i) a set of APIs that relate to “current core functionalities that wrist-worn devices need to interoperate with an Android smartphone” and (ii) all Android APIs that Google will make available to other Android smartphone app developers.

Continue to the full article --> here

 

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, 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

NCFA Financial Innovation MapNCFA Innovation Opportunity BriefsNCFA Fintech Insights
NCFA Fintech WhispererNCFA Fintech Fridays PodcastNCFA Weekly Newsletter

 

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January 26, 2021   Digital Identity, Privacy, KYC, AML/ATF, Enterprise, Scaleup, Entrepreneurs, Start-ups, Small Businesses, ESG, Financial Inclusion, Sustainable Finance, Fintech AI/ML, Data-driven, Automation, Generative AI, FinTech and Alternative Finance, Fintech International, Innovation and Resources, Payments, Transfers, Rewards, Personal Finance, Research, Stories   No comments

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

McKinsey & Co | Olivia White, Anu Madgavkar, Tawanda Sibanda, Zac Townsend, and María Jesús Ramírez | Jan 26, 2021

Digital infrastructureGovernments worldwide reacted to the COVID-19 crisis with an outpouring of financial aid to businesses and individuals that was exceptional for both its size and the speed with which the disbursements were made.

According to the IMF, fiscal measures announced globally amounted to $11.7 trillion, or close to 12 percent of global GDP, as of September 2020. As a result, the pandemic has served as a high-stakes, real-life stress test for the financial infrastructure in many countries, bringing into sharp relief critical gaps and opportunities as well as providing valuable lessons about how to improve efficiency and resilience for the future.

What determines how effectively the money is disbursed, for achieving the design ambitions of the program and delivering the funds rapidly to the intended recipients? This question has been drawing the attention of economic researchers, policy makers, fintech innovators and civil society watchdogs alike. Building on our pre-pandemic research on the economic impact of digital identification and digital financial inclusion, we studied a sample of 12 government economic disbursement programs for both individuals and small and medium-size enterprises (SMEs) in seven countries—Brazil, India, Nigeria, Singapore, Togo, the United Kingdom, and the United States.

See:  How will Canada reinvent its payments framework for a post-pandemic digital reality?

Several findings stand out. First, we find that effective programs have three critical structural features of financial infrastructure: digital payment channels, the presence of a basic digital identification system with broad population coverage, and simple data on individuals and businesses that are tethered to the ID.

When these features were present in country-level financial infrastructure, these programs could be optimally designed and delivered quickly. When one or more of these infrastructure features was not present, countries had to make trade-offs between the design ambition (the scope, scale, and specificity of beneficiaries targeted) of their programs and their delivery success (the speed, coverage, and fraud levels in rolling them out).

Second, we estimate that the potential economic gain from building robust digital financial infrastructure is about 20 percent greater now than it was before the pandemic. Before the COVID-19 crisis, we estimated the potential economic gain by 2030 from applying basic and advanced digital ID to a wide range of interactions between individuals and government and nongovernmental institutions to be in the range of 3 to 13 percent of GDP. Finally, the crisis has underscored the resilience and flexibility that a robust financial infrastructure for SMEs and individuals provides, and thus its importance as a critical tool for responding to unexpected and potentially catastrophic events.

Digital financial infrastructure can improve country-level resilience in crises and on an ongoing basis

Beyond the potential economic impact, investing in digital financial infrastructure can help governments protect their populations in other important ways with long-term benefits. Effective government support in times of need helps prevent extreme poverty, hunger, and inequality, among others.

See:  NCFA and KABN Systems North America enter multi-year exclusive partnership to promote Digital Identity in Canada

This cannot all be measured in GDP growth. Financial infrastructure is relevant for the effectiveness of broader national government programs in more normal times, as well as interactions between individuals and non-government institutions (Exhibit 4).

 

Continue to the full report --> here

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, 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

NCFA Financial Innovation MapNCFA Innovation Opportunity BriefsNCFA Fintech Insights
NCFA Fintech WhispererNCFA Fintech Fridays PodcastNCFA Weekly Newsletter

 

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January 26, 2021   Blockchain, Crypto, Digital Assets, Tokens, CBDCs, Stablecoins, Metaverse, NFTs, Enterprise, Scaleup, Entrepreneurs, Start-ups, Small Businesses, FinTech and Alternative Finance, Fintech International, Fintech Services, Fundraising, Investing, Trading, Innovation and Resources, Research, Stories   No comments

DeFi Market Cap Reaches $45 Billion as Token Prices Shoot Up

Decrypt | Liam Frost | Jan 25, 2021

DeFi trends

Decentralized finance tokens have been growing rapidly and now make up 4.6% of the $1 trillion crypto market.

In brief

  • The market cap of decentralized finance (DeFi) tokens has exceeded $45 billion.
  • Some DeFi tokens grew by 50–100% or more over the past week.
  • Even most cautious crypto enthusiasts say there is still a lot of room to grow left for DeFi.

The total market capitalization of all decentralized finance (DeFi) tokens has exceeded $45 billion today, according to crypto metrics platform CoinGecko.

Market capitalization is an asset’s current price multiplied by its total supply—a metric that lets you compare multiple coins that have wildly varying supplies. In other words, this means that all DeFi-specific tokens combined are worth over $45.5 billion at press time.

“DeFi total market cap. 2020 was at $2 billion. 2021 now at $43 billion,” CoinGecko tweeted yesterday.

Evidently, the DeFi ecosystem grew by another $2 billion in terms of its market cap since then—in just one day. During the same period, the total daily trading volume of DeFi tokens exceeded $12 billion.

Over the past week, for example, many DeFi tokens have seen significant price surges, thus contributing to the total market cap’s growth. Out of the top 10 assets, Uniswap (UNI) and AAVE showed the most notable results, both increasing in price by roughly 40% in the last seven days, according to CoinGecko. Other coins rose even faster, with DODO and Alpha Finance each doubling in the last seven days.

However, considering DeFi’s somewhat chaotic nature (and the tendency to get hacked regularly), some users are skeptical toward the ecosystem—but even they acknowledge that there is still a lot of room for this “bubble” to grow.

Continue to the full article --> here

See: 

All-In on DeFi: Why the Days of Centralized Exchanges Are Numbered

Intro to yield farming and the latest developments in DeFi

FFCON20 Week 6 Wrap-Up: Currency Wars, Digital Assets, & The Rise of DeFi

Interested in a High Interest Bitcoin Saving’s Account? Interview with Ledn CEO, Adam Reeds

Lock BTC, Get DAI: Lending Firm Bridges Bitcoin-DeFi Divide in Latin America

 

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

NCFA Financial Innovation MapNCFA Innovation Opportunity BriefsNCFA Fintech Insights
NCFA Fintech WhispererNCFA Fintech Fridays PodcastNCFA Weekly Newsletter

 

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