Category Archives: Voices

How you can experiment, learn and improve with OSC TestLab

OSC Innovation Office | Oct 28, 2021

OSC testlab

Did you catch our big news? The Innovation Office is launching OSC TestLab, a new testing environment for Ontario’s capital markets.

We’re excited to open applications for our first test this fall. Here's how you can get involved.

In the next few weeks, we will roll out the TestLab framework and the problem statements that will form the basis for the test. The problem statements will provide a concise description of the issues to be addressed and opportunities to be realized through this test. We will also explain how technology providers and registered firms can participate, including who should apply, how to apply, and key deliverables required along the way.

We expect to open applications for the first test in late November. The application window will be open until January 31, and we’ll be standing by to answer questions from interested firms throughout the application period.

See: 

OSC unveils charter for office to promote innovation and reduce regulatory burden

OSC announces leadership of new Office of Economic Growth and Innovation

The OSC’s New Innovation Charter: Is this really a ‘new model’?

After reviewing eligible applications, we will select firms to move into the next stage and work with them to refine their testing plans. Testing will begin in the spring and run for up to six months.

Throughout this first test and beyond, your input is essential. After all, TestLab presents an innovation journey for technology providers and capital market participants as well as the OSC. We’ve reviewed leading practices to synthesize what we believe is the best initial design for an Ontario testing environment, yet it is only by working with capital market participants and Ontario’s innovation community that we can make OSC TestLab a success.

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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

 

Liquid Avatar Technologies and Dynamics Inc. Tap Payment Infrastructure for Verification of Digital Credentials

Liquid Avatar Technologies | Cara Buckspan | Nov 8, 2021

Liquid Avatar payment infrastructure partnershipPassmateTM enables digital credentials for identity, access, and qualifications to be verified at point-of-sale payment terminals using the same platform as financial, debit and credit card transactions.

Toronto, Canada - TheNewswire - November 8, 2021 -Liquid Avatar Technologies Inc. (CSE:LQID) / (OTC:LQAVF) / (FRA:4T51) / (CNSX:LQID.CN) (“Liquid Avatar Technologies” or the “Company”), a global blockchain, digital identity and fintech solutions company, through the Liquid Avatar Verifiable Credential Ecosystem (“LAVCE”), announces the introduction of its proprietary PassmateTM services program to expand identity verification and validation opportunities for business, industry, and government through the payment terminals and Point of Sale (POS) systems found in most commercial facilities around the globe.

PassmateTM is a Software as a Service (“SaaS”), subscription based transformative technology that makes secure data sharing and proof of identity easily available to consumers and businesses by using the payments infrastructure that merchants and businesses already use. Developed in conjunction with  U.S.-based payments technology company Dynamics Inc. (“Dynamics”) and with Indicio Inc. (“Indicio”), a global leader in designing decentralized trusted data ecosystems, PassmateTM enables any business or facility currently using mainstream POS systems to deploy verifiable credentials to ensure that identity data and other high-value information can be authenticated in a secure, privacy-preserving way.

See:  Liquid Avatar Technologies and Optimize Financial Technology Partner to Launch Fintech and Neobanking Solutions for US Markets

“Dynamics and Indicio both share in Liquid Avatar Technologies’ vision for quick and reliable digitally verifiable identity that can easily scale across businesses, trade shows, events, convenience stores, restaurants, or other retailers or venues using existing point of sale terminals.” said David Lucatch, CEO Liquid Avatar Technologies. “Passmate™ is a modern and cost-efficient tool that leverages current technologies, like point of sale or payment terminals to confirm that an individual is who they say they are and that they have the correct immunization, age, or other credential to receive a service, make a restricted purchase or gain access. Secure, private, digital verification reduces fraud and increases certainty between parties while no personally identifiable information is revealed without permission. This type of easy to use, trustworthy digital identity is more timely, relevant and is more powerful than ever before.”

PassmateTM  is expected to be piloted in early 2022 as part of the recently announced Smart Age program supported by the Ontario Convenience Stores Association (OCSA) as it looks to expand current age-restricted product sales. The Smart Age program for OCSA and potentially other hospitality businesses will consist of in-store and out-of-home awareness campaigns, digital verification review at the point of purchase and, where applicable, work with other transaction processing systems to support PassmateTM integration into existing point-of-sale and payment terminals that will be used to verify credentials in order to confirm that the customer is of legal age to purchase restricted products.

The PassmateTM SaaS subscription and micro-transaction program will first be introduced with the direct support of Dynamics and then be made available through Liquid Avatar Technologies and Dynamics to other transaction processors in Canada, the United States of America and globally. The Company is already in discussions with leading payment processing and solutions providers and is planning to launch PassmateTM with health credentials and age verification in early Q1 2022 as it looks to support industry and government issued credentials.

See:  Liquid Avatar Technologies Partners with the Ontario Convenience Stores Association (OCSA) to Provide Digital Age-Verification Solutions to Over 8,000 Stores

“Liquid Avatar Technologies’ product line to make easy-to-use, verifiable digital identity is the type of ambitious innovation goal that aligns with Dynamic’s mission to change the world without changing the way the world works.” said Jeffrey Mullen, CEO of Dynamics Inc. “With Passmate™ integrated into the point of sale, businesses of all sizes will be part of an advanced capability for reducing fraud and uncertainty in the industry.”

The Future of Private Digital Communications

Liquid Avatar Technologies continues to roll out further enhancements to the LAVCE that go beyond conventional payment and communications technology solutions. As part of ongoing development and its commitment to Decentralized Finance (DeFi) and blockchain-based initiatives, the Company uses the combination of decentralized identifier technology (DIDs) and decentralized identifier communication called ‘DIDcomm’ to enable highly secure, peer-to-peer data sharing, including payment and secure communication between parties in Passmate™.

The advantage of using DIDcomm in Passmate™  is that it provides communication across multiple channels—the web, email, mobile push notifications, QR codes, Bluetooth, message queues, and more. Each peer-to-peer communication is unique, secure, and provides the parties communicating with complete control over their private data.

“It is hard to overstate the potential impact of DIDComm on the future of digital communications,” said Heather Dahl, CEO of Indicio.tech. “It’s a foundational protocol that will change how people connect to each other on the Internet. It will allow the development of much richer interaction while enabling consent, transforming security, and ensuring privacy. It enables merchants and businesses to create a new world of direct, personalized concierge-quality interaction with their customers and to offer them new services—all without having to go through a third party, and without the headache of data privacy regulation.”

See:  Liquid Avatar Releases Major Update to their Digital Identity Mobile App

The Company believes that LAVCE’s implementation of DIDcomm to verifiable credentials and payment technologies will be one of the first commercial applications of its kind in in North America, and will create a plethora of use cases and opportunities for consumers, businesses, and the Company

“DIDComm has the same excitement and possibility around it as HTTP did when it was first launched.” Lucatch said “Liquid Avatar Technologies is fully committed to the advancements that Indicio is working on and is helping to facilitate in the Decentralized Identity Foundation and other standards bodies. This technology is crucial for the future transformation of online payments, making them more secure, more trustworthy, and closing the chapter on financial fraud and identity theft.”

For more information, or to book a demonstration of the technology and how the LAVCE can assist your organization to support your reopening and health care objectives, please contact Liquid Avatar Technologies.

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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

 

US consumers agree trust in protecting assets is essential before they’ll share their bank credentials

eMarketer | Matthew Gaughan  | Nov 4, 2021

Awareness of open banking by country

A June 2021 survey from Klarna and Nepa found that 52% of US adults trusted banks, while just 17% trusted neobanks. The fragmentation of open banking in the US has led to slow adoption of the technology by consumers—55% of US adults have never even heard of the service.

See:  Paying for coffee with crypto? Get ready, the future of payments is already here

According to a PYMNTS.com survey conducted in collaboration with MX, more than a quarter of US consumers surveyed said trust in their financial institution to protect their financial assets is the most important factor in sharing bank credentials with third parties.

  • 16.0% said that trust in the third party they were connecting to was the most important.
  • 14.4% picked the belief that the connections are secure as their top choice.
  • 11.6% noted that transactions becoming much easier because the accounts are connected as their top factor.

Having said this, among survey respondents that connected third-party apps to their bank accounts, 29.9% were very or extremely interested, and 25.7% were somewhat interested in using an open-banking portal offered by their personal bank. The level of interest grew within certain groups—particularly younger generations or those already comfortable with sharing credentials.

See:  Should the age of Nubank’s customer base worry incumbents?

  • 47.1% and 37.2% of Millennials and Gen Z, respectively, were very or extremely interested.
  • 59.8% of consumers that were very or extremely comfortable sharing credentials showed the same high level of interest for open banking as younger generations.

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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

 

3 Trends in 2022 Predicted to Shape Investment Crowdfunding

Crowdfund Insider | | Nov 1, 2021

crystal ballInvestment crowdfunding took off when the JOBS Act regulation went into effect back in 2016 and has become a booming industry in short order. We saw some significant regulatory changes in March of this year, with the Securities and Exchange Commission (SEC) confirming capital formation increases for Reg A+ and Reg CF. These increases solidified just how impactful this type of crowdfunding can be.

Equity crowdfunding has garnered trust and legitimacy from issuers, investors, broker-dealers, transfer agents, and lawyers—and raised $239 million via Reg CF and $1.6 billion via Reg A+ in the first half of 2021. Today, there’s nearly $800 million invested across 64 FINRA-licensed Reg CF funding portals.

Significant, positive economic ripple effects from equity crowdfunding

When it comes down to it, what 2020 and 2021 have clearly shown us is that investors want to participate in and support small businesses.

See:  Doug Ellenoff on US Reg CF Increasing Issuer Caps to $5 million: Investment Crowdfunding Will Challenge Traditional Venture Capital

At my firm, we’ve seen 4,000+ issuers to date, including startups, small businesses, and medium-sized businesses. These SMEs are choosing equity crowdfunding instead of traditional, bank-led financing because they can control their offering and financing needs. No longer beholden to the mercy of a single small business banker with specific credit appetites, or a venture capital firm with narrow funding parameters, these entrepreneurs are now in the driver’s seat and their customers and supporters are riding shotgun alongside them.

Currently, the top five industries for issuers are software, distilleries and breweries, restaurants, internet and e-commerce, and movies, according to research from Crowdfund Capital Advisors. Ironically, all industries are significantly impacted by COVID. But investors in these spaces are eager to participate in crowdfunding for their favorite businesses, and in 2020 venture capital was particularly difficult to come by. The world watched as so many of our favorite restaurants, venues, and small businesses closed because they didn’t have the financial ability to stay afloat. But equity crowdfunding presents a chance for those businesses to get back in the game.

As we forge ahead into 2022, the impact of equity crowdfunding for COVID-affected small businesses will play out with positive ramifications in local economies by creating not only capital for businesses, but creating jobs as well.  120,000 local jobs have been created so far in 2021 as a result of successful Reg CF offerings, reported Crowdfund Capital Advisors. These salaries support government taxes, consumer spending, savings, and more. They’re supporting our communities and keeping food on our neighbors’ tables.

See:  Reg CF: Investment Crowdfunding Tops $1 Billion on Heals of Funding Cap Increase

Accessible crowdfunding for all

As we move into 2022, the equity crowdfunding industry will continue to build a foundation for underserved people to gain access to the financial system in terms of meaningful investments. Anyone—regardless of social status or annual income—should be able to begin investing in companies that hold meaning for them. It’s about radical accessibility and execution. Looking to the future, we’re building a system that allows for more equal access for both the issuer and the investor.

Whereas only 1.2 percent of the venture capital invested in U.S. startups in H1 2021 went to Black founders, and just 2.3 percent to women in 2020, women and people of color make up 40 percent of issuers using Reg CF.

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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

 

Biden’s PWG report on stablecoins and the verdict is….

AMBCrypto | Shraddha Sharma | Nov 2, 2021

America flagThe much-awaited U.S. Treasury Department-led regulatory report has called for more regulations around stablecoins.

The President’s Working Group on Financial Markets (PWG) is of the view that “stablecoins could be more widely used in the future as a means of payment.”

It is in this context that Secretary of the Treasury Janet L. Yellen commented,

“Stablecoins that are well-designed and subject to appropriate oversight have the potential to support beneficial payments options. But the absence of appropriate oversight presents risks to users and the broader system.”

Yellen also called the current oversight “inconsistent and fragmented,” with the expectation to change that while working with members of the U. S Congress.

See:  More regulation coming: SEC Chairman signals stablecoins and other tokens could fall under its rules on security-based swaps

It’s worth noting, however, that the report in question soon attracted a lot of comments. Congressman Tom Emmer, for instance, was one to share some of his initial thoughts. He said,

“With its stablecoin report, the PWG seems to try to force Congress to choose between handing over regulatory power to bureaucrats or risking the unchecked FSOC [Financial Stability Oversight Council] stamp out crypto innovation.”

Meanwhile, another key suggestion made by the report pertained to requiring “stablecoin issuers to be insured depository institutions.” What this essentially means is that issuers should be regulated like banks.

In response to the report, the Acting Comptroller of the Currency Michael J. Hsu commented,

“I fully support the recommendations in today’s paper. Stablecoins need federal prudential supervision to grow and evolve safely. The interagency paper identifies the risk of stablecoin runs as the top concern.”

See:  SEC Chair Gary Gensler speaks to Yahoo Finance about Bitcoin ETF, DeFi and Stablecoins

The report also touched upon regulatory authorities and the question of jurisdiction. It stated,

“In addition to existing AML/CFT regulations, stablecoin arrangements and activities may implicate the jurisdiction of the SEC and/or CFTC.”

Meanwhile, the U.S Department of the Treasury said that in the context of maintaining market integrity and investor protection, activities related to digital assets fall under the jurisdiction of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).

Simply put, it recommended giving the SEC and CFTC broad enforcement and oversight authorities.

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MarketWatch | Chris Matthews | Nov 1, 2021

Stablecoins should be regulated like banks, Biden administration says

The Biden administration called on Congress to quickly pass new legislation that would require stablecoins to be issued by insured banks that are overseen by federal banking regulators, in a report issued by the President’s Working Group on Financial Markets on Monday.

Stablecoins like dai, tether and USD coin are a kind of digital asset that pegs its value to the U.S. dollar, and have become widely used to facilitate trading in popular cryptocurrencies, including bitcoin and ether. Their stable value makes them an attractive instrument for cryptocurrency investors to store uninvested funds.

See:  As regulators circle above, how should the DeFi industry respond?

The total market capitalization of the most popular stablecoins has grown more than 500% over the past year to $127 billion, according to the Treasury Department, and the vast majority of the investment is in a handful of dollar-denominated tokens.

The document outlines a variety of risks that stablecoins pose to crypto investors and the economy more broadly, including risks related to a so-called “run” on a stablecoin’s backing assets. Many popular stablecoins are backed by real assets, and maintain their value by promising to always exchange one token for one U.S. dollar . If investors lose confidence in the assets backing a stablecoin, it could trigger “a self-reinforcing cycle of redemptions and fire sales of reserve assets,” the report says.

“Runs could spread contagiously from one stablecoin to another, or to other types of financial institutions that are believed to have a similar risk profile,” the document continues. “Risks to the broader financial system could rapidly increase as well, especially in the absence of prudential standards.”

In addition to banning any entity that is not an insured and regulated deposit-taking institution from issuing stablecoins, the report suggests legislation should also require that providers of custodial cryptocurrency wallets to be subject to federal oversight.

See:  Kraken Crypto report and On-Chain Analysis: SHOKTOBER

The document also says that stablecoin issuers could be declared as engaged in systemically important activities to the financial system by the Financial Stability Oversight Council, which would then subject them to enhanced supervision, likely by regulators at the Federal Reserve.

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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

 

Cato Institute Event (Video): Digital Currency: Public or Private?

Cato Institute | Nov 2, 2021

Cato Institute webcast_

Who should supply the nation with digital currency? Should the Fed do it, should the private sector do it, or should it be provided by some combination of the two? Join us on November 2 for a conversation with J. Christopher Giancarlo, former chairman of the Commodity Futures Trading Commission, and Dante Disparte, Circle’s chief strategy officer and head of global policy.

See:  On the Brink Podcast: George Selgin of the Cato Institute on Stablecoins, Bitcoin and Free Banking

The event will be moderated by Cato’s Center for Monetary and Financial Alternatives director emeritus George Selgin, during which Giancarlo and Disparte will discuss the merits of digital currency, both public and private.

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

 

Paying for coffee with crypto? Get ready, the future of payments is already here

CoinPayments | Jason Butcher | Nov 2, 2021

Coinpayments article image

As the world emerges from a year or more of uncertainty to find it’s new normal, the aftershocks of the pandemic will leave some indelible marks particularly on the payments industry. Consumers that were forced to shop online triggered warp-speed developments in the eCommerce space, as merchants (big and small) jostled to convert shopping carts. Add to this a growing popular sentiment to protect personal wealth, the current evolution of the payments space seems almost obvious. As a long-time payments and blockchain entrepreneur, I believe that we have reached a watershed moment in the adoption of digital currencies, with new data proving that cryptocurrencies are increasingly part of our everyday transactions.

Crypto finally breaks into the mainstream

With large corporations, banks, governments, and retail investors alike holding crypto assets, digital money as an effective investment vehicle has been a reality on Wall Street – and in the public psyche – for a while. But, only recently are we seeing the real tipping point for mass adoption of crypto into the everyday lives of consumers, as it moves from purely an investment vehicle into the realm of value exchange. To everyday shoppers, crypto has now become a viable alternative to fiat currencies.

See:  Updated FATF Virtual Asset and VASP Guidance includes DeFi for crypto service providers

Triggered by changing buying behaviours and escalated by pandemic-fuelled digital innovation, I believe this evolutionary tipping point in crypto adoption has been realized because people have the choice to pay with a wide array of cryptocurrencies and have the desire to exercise this choice. That’s why we’re seeing more merchants partnering with payments experts to enable crypto payments for customers, and this is empowering them to spend gains on real-world goods. From vacations and cars to professional services and groceries, consumers are being given the choice to step outside the more traditional payment methods, and this trend doesn’t seem to be losing steam, especially as more merchants jump on board.

In May, I participated in the FFCON21 panel entitled “Mainstream Adoption of Digital Currencies and Investing in Alternative Assets,” where I said that clear regulatory controls are required to maximize crypto adoption.

Consumers also have much to benefit from the greater transparency and control afforded by blockchain-enabled payments. Merchants also benefit from embracing crypto, avoiding higher fees associated with credit card payments (especially for cross-border transactions), and by gaining access to an entirely new, tech-savvy customer base. The immutability of the blockchain also helps merchants circumnavigate the rising challenge of so-called friendly fraud claims, as it eliminates chargebacks. Put simply, accepting crypto payments can help businesses of all sizes break down barriers to entry when it comes to securing profitable sales.

Our crypto data tells a compelling story

At CoinPayments.net, we are seeing a rise of crypto payments across industries, even with our eCommerce merchants. According to our data for the first half of 2021, overall merchant transaction volumes exploded by more than 200% to almost $3 billion year-on-year.

See:  Payments without banks goes mainstream with Twitter on Bitcoin Lightning Network

Diving deeper into industry indicators, you can see rising consumer confidence in crypto payments as they are willing to spend more per purchase, with transaction sizes growing to $300 on average. In the last year, CoinPaymants has seen 10X transaction volume growth for Shopify merchants alone. These numbers would have been unheard of just three years ago as widespread adoption was in its infancy, and offer clear proof that people are using crypto for everyday transactions.

Regulation is the crypto final frontier

Despite the change being evident, it’s worth noting that this is not, by any means, universal yet. CoinPayments.net data also shows that some geographic regions are streaks ahead when it comes to mainstream adoption. Europe, for example, has a much more established crypto community, with higher levels of acceptance among businesses and readiness among consumers. Conversely, North America is only just getting off the blocks and has massive growth potential.

Why is Europe so ahead, you ask? To put it simply: regulation.

In May, I participated in the FFCON21 panel entitled “Mainstream Adoption of Digital Currencies and Investing in Alternative Assets,” where I said that clear regulatory controls are required to maximize crypto adoption.  Some might argue that the notion of governance for the blockchain goes against the defining core of decentralization, but I strongly believe that regulation is the key to truly unlocking digital money for the masses. And, further, it is exactly this divide in opinion among industry players that is preventing us from achieving greater adoption through collaboration.

See:  ‘Last year we saw about a 300% increase in transactions just using cryptocurrency’: Coinpayments CEO

By lacking transparency in our practices, it is us - industry leaders - who are going against the nature of the blockchain and holding it back. We are creating barriers to successful mainstream adoption of crypto.

Questions from regulators will undoubtedly make the industry ask questions of itself; which is only a positive thing as more conversation leads to greater education, awareness and, in turn, greater adoption. If industry leaders like CoinPayments can collaborate to help design the best path forward, the crypto industry can gain the credibility required to earn the trust of the consumers and businesses we are trying to reach; those that so evidently are ready to use digital money to exchange value.

 

Authored by:

Jason Butcher, CEO, CoinPayments (Linkedin)

Jason Butcher newJason is an entrepreneur with nearly 3 decades of experience building global businesses across diverse industries and ever-changing financial markets.  His daily role involves being an active player in a number of global Fintech, payment processing, crowdfunding and blockchain technology projects.  His in-depth knowledge and experience from within the Fintech and payment processing industry have allowed him to hone the ability to accurately identify the different challenges from country to country to ensure all projects are successfully completed in line with compliance regulations.  Jason is the CEO of the CoinPayments.net, the founder of HODLtech.eu, Parallel Payments, Clear Payments, and a board member and advisor for a number of payments, fintech businesses and associations such the Emerging Payments Association, the National Crowdfunding and Fintech Association (NCFA Canada) and many others.


NCFA Fintech Confidential Issue 4 250 - How to grow young fintech talent

This article is featured in NCFA's digital magazine, Fintech Confidential (Issue 4 Oct 2021). Click to read the latest thought leadership, insights and trends about Fintech in Canada:

Checkout NCFA's digital magazine, Fintech Confidential (Issue 4) --> 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