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Speech by Jon Cunliffe: ‘Is crypto a financial stability risk’?

Bank of England | Jon Cunliffe, Deputy Governor, Financial Stability | Oct 13, 2021

Sir Jon Cunliffe - Speech by Jon Cunliffe: ‘Is crypto a financial stability risk'?

Sir Jon Cunliffe, Deputy Governor, Financial Stability, BoE

Jon Cunliffe's Speech Overview delivered at Sibos:  Jon Cunliffe looks at the impact of ‘crypto’ on the stability of the UK’s financial system.  He says unbacked crypto-assets (eg Bitcoin) and backed crypto-assets for payments (stablecoins) have begun to connect to the financial system. And he talks about how regulators are responding to their rapid growth.

I want to talk today about whether the world of ‘crypto finance’ poses risks to financial stability.

Cryptoassets have grown by roughly 200% in 2021, from just under $800 billion to $2.3 trillion today. They have grown from just $16 billion 5 years ago. $2.3 trillion of course needs to be seen in the context of the $250 trillion global financial system. But as the financial crisis showed us, you don’t have to account for a large proportion of the financial sector to trigger financial stability problems – sub-prime was valued at around $1.2 trillion in 2008.

See: 

When something in the financial system is growing very fast, and growing in largely unregulated space, financial stability authorities have to sit up and take notice. They have to think very carefully about what could happen and whether they, or other regulatory authorities, need to act.

At the same time, they need to be careful not to over-react – particularly when faced with the unfamiliar. We should not classify new approaches as ‘dangerous’ simply because they are different. Innovation, technology and new players can tackle longstanding frictions and inefficiencies and reduce barriers to entry. Throughout history, they have been key to driving improvement and to increasing resilience in financial services.

I will give you my conclusions at the outset. Crypto technologies offer a prospect of radical improvements in financial services. However, while the financial stability risks are still limited, their current applications are now a financial stability concern for a number of reasons.

Cryptoassets are growing fast and there is rapid development of new applications for the technology. The bulk of these assets have no intrinsic value and are vulnerable to major price corrections. The crypto world is beginning to connect to the traditional financial system and we are seeing the emergence of leveraged players. And, crucially, this is happening in largely unregulated space.

Unbacked cryptoassets

Unbacked cryptoassets make up nearly 95% of the $2.3 trillion.

They are essentially non-replicable strings of computer code that can be owned and transferred without intermediaries. Bitcoin, of course, is the most prominent example, but there are now nearly eight thousand unbacked cryptoassets in existence. These have no intrinsic value – that is to say there are no assets or commodities behind them: the value of the cryptoasset is determined solely by the price a buyer is prepared to pay at any given moment.  As a result, their value is highly volatile.

See:  World Economic Forum (WEF) Warns of Cyberattack that will Collapse Existing Financial System

And while retail investment predominates in this market, there are signs of growing institutional investor interest, with these investors now thinking about whether to have crypto in their portfolio. More complex investment strategies are beginning to emerge, including crypto futures and other derivatives.

At the same time, core wholesale finance and financial market infrastructure firms are putting their toes in the water. Several global banks are offering, or are planning to offer, digital asset custody services. Some international banks have started to, or are looking at, trading cryptoasset futures and non-deliverable forwards; and offering wealth management clients cryptoasset investments, following client demand. Others have developed exchange platforms facilitating matched trades, or offer customers access to other crypto exchanges through their apps. Leading payment firms are also exploring ways of allowing people and businesses to use certain stablecoins for payments and for the settlement of transactions within their networks.

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NCFA Jan 2018 resize - Speech by Jon Cunliffe: ‘Is crypto a financial stability risk'? 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

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Bracing For Change In The Era Of The Augmented Workforce

Cathy Hackl | The Augmented Workforce Launch | Oct 13, 2021

Cathy Hackl Embracing for Change the Augmented Workforce - Bracing For Change In The Era Of The Augmented WorkforceWe are living through a period of rapid change, possibly beyond society’s capacity to keep up. The metaverse has taken over tech headlines.  There’s an unprecedented acceleration and convergence of technology. It’s rampant and widespread. Various emerging technologies, such as artificial intelligence (AI), augmented reality (AR), virtual reality (VR), and 5G, along with dozens of devices that work together (Internet of Things), have helped to create an environment in which new inventions, possibilities, and learning curves change weekly.

According to Peter Diamandis and Steven Kotler, authors of The Future Is Faster Than You Think, “Moore’s Law is the reason the smartphone in your pocket is a thousand times smaller, a thousand times cheaper, and a million times more powerful than a supercomputer from the 1970s. In 2023 the average thousand-dollar laptop will have the same computing power as a human brain (roughly 1016 cycles per second). Twenty-five years after that, that same average laptop will have the power of all the human brains currently on Earth.” That’s rampant, exponential acceleration.

Rampant Acceleration

In the past, there was a slow evolution of technology, which gave people time to adapt. In the decade to come, it will feel more like the Cambrian Explosion—an event over 500 million years ago when most living things burst into being. For instance, radio preceded the advent of the television by decades, which trained people to go to a device for news and entertainment. Mainstream cell phones predated the smartphone’s popularity by thirty years and slowly changed how we interact and work. The Internet was prevalent for ten years before mobile apps were popularized and changed how we consumed and processed information. These gradual changes, one on top of the other, made for a smooth transition from a typical household living in the 1950s to a family living in the 2000s. How many people today use a smartphone, laptop, ebook, and tablet multiple times a day? This would’ve been unthinkable in 1950. But the change was gradual and maneuverable.

Make no mistake—technology is evolving, as is our relationship with it. In the first phase of the Internet, we connected information. A person could search the web using a search engine, send a document via email, and use all this new information in novel ways. The second phase of the Internet-connected people. Facebook and Twitter created a social media revolution, conceivably connecting one person with millions of other people in ways that were unthinkable in the past (e.g., think of a president’s or movie star’s Twitter feed). And in the third phase (which we’re entering), the Internet is connecting people, places, and things in a more dynamic and amplified way.

See:  Three Big Things: The Most Important Forces Shaping the World

The Internet of Things is amplifying the concept of location and the concept of merging our digital and physical lives. It’s gradually impacting more of how we live, work, and play. A union of digital and physical realities, already seamlessly affecting many areas of our lives. From an acceleration technology standpoint, we’re seeing an even greater change than what we’ve seen in the past—and at a faster pace. The combined rate and scale of change is causing exponential acceleration.

Diamandis and Kotler, again in The Future Is Faster than You Think, wrote, “In the next decade, we’ll experience more progress than in the past 100 years.”

They explain: “We’ve been living through a time of constantly accelerating technological capabilities. We’re living in a world of increasing, exponentially growing computational power. Technology is always on, always available, and we’re now moving into the quantum computing era—these exponential technologies are enabling artificial intelligence, robotics, 3D printing, synthetic biology, augmented reality, blockchain and allowing these technologies to converge, creating new business models. It’s the convergence of these technologies that creates waves on top of waves of capability, which will change our world—every industry—our economy, our government, our health, our families. Everything is beginning to change.”

If you think that is a great deal to consider, Diamandis and Kotler also predict that meta-intelligence (i.e., when humans merge with technology), will take place in less than twenty years. We will be able to connect our brains with the Cloud. The accumulation of AI, AR, 5G, and IoT, plus related technologies such as crypto/blockchain and extended reality (XR) may have snuck up on us, but we can adapt and catch up.

Business Disruption

Businesses are constantly on the lookout for things that decrease time, cost, and increase value. That’s why businesses are one of the main drivers of technology. Manufacturers equip operators with augmented reality devices. Instead of reading a paper manual or asking another person for help, AR glasses teach operators where to go for parts or how to fix equipment. Connected sensors on hardhats monitor workers’ location and notify them of dangers or other equipment.

In the restaurant industry, line cooks work alongside robot arms equipped with different appendages like hamburger flippers or deep fry baskets. Even marketing teams have to evolve as they work with digital influencers (CGI people who pose with sponsored clothing or gear).

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We’re used to working side-by-side with devices that we believe are safe, and doing that saves us time. For instance, many families have a robotic vacuum cleaner, and they don’t think twice about it. Warehouses use robots to fetch and store packages. Tye Brady, Amazon Robotics’ chief technologist, said, “The efficiencies we gain from our associates and robotics working together harmoniously—what I like to call a symphony of humans and machines working together—allows us to pass along a lower cost to our customer.” As these “cobots” (robot co-workers or collaborative robots) become prevalent, it’s likely that our interaction in the home with Alexa, Siri, or Roomba, will have conditioned us to be accepting of our new digital co-workers.

Conferences are disrupted by virtual reality. In 2018, Cathy spoke at Lethbridge College’s Merging Realities, the first conference hosted in virtual reality. Over three hundred people registered for the event. People outfitted their avatars in business attire.

Virtual reality reduces costs to participants since hosts do not have to rent out large convention centers. It also opens the doors to even more participants since people aren’t held back by physical constraints. Vendors create 3D booths to upload into the lobby. “Instead of handing out pens and candy, they can give away free credits to their product or services, something that would actually be more beneficial since it brings potential customers right to their website instead of a pen they’ll forget in a desk drawer,” said Lily Snyder, digital technologist. “Vendors who pay a premium can have a whole virtual experience of their product or service in action for participants to take part in.”

Since then virtual reality conferences like Enablers of Tomorrow, Women in XR Venture Fund Pitch Showcase, and Educators in VR Summit are all examples of VR disrupting business. Public speakers better engage with audiences in “nonlinear conversations.” Talking points, instead of planned slides, allow the audience to more easily move from topic to topic based on their interest. VR provides subject material on an as-needed basis instead of going from slide to slide. Immersive environments like virtual and augmented reality and holographic telepresence make more sense than ever. Virtual reality is data-rich, providing a whole new level to the conference experience.

At the time of this writing, companies are getting rid of their corporate headquarters, opting to stay remote even after the pandemic subsides. Kara Swisher stated that Zoom’s shares rose 60 percent in the month of February 2020 as employees embarked on a litany of Zoom meetings from home. One managing director at Accenture asked her team to buy Oculus Quests headsets so they could meet virtually for daily tasks. In the past she had only used VR for specific training modules or client needs but after a few weeks using VR with her team she noticed “group energy and sense of camaraderie are better than with any other mode of communication.”

A training manager at Nestle Purina thinks using VR will “help the company recruit a more technically fluent workforce in the future.” Nestle Purina uses virtual reality to build out shelf ideas and category concepts. VR lowers the risk for employees who build live tests. It also accelerates time to market because of the shared vision customers and employees virtually walk through together. “Instead of showing them PowerPoint after PowerPoint or showing them a demo that might not be to scale, we’re able to use the virtual reality technology in ways that offer customized solutions and allow us to make changes over and over and over again,” said Kenny Endermuhle, Senior Manager of Retail Innovation Strategy at Nestlé Purina.

See:  AI Will Transform 500 Million White-Collar Jobs In 5 Years; Silicon Valley Must Help

Months into the 2020 coronavirus pandemic, a local chapter of the Construction Financial Management Association conducted their monthly meeting in virtual reality. The virtual reality boardroom was what the chapter needed after burnout from “zoom fatigue.” Experiencing the immersion of virtual reality once inspired construction firms in the meeting to investigate other opportunities for augmented and mixed reality.

The companies that can provide tools to work from home are the ones experiencing growth and profits. Yet, even with this data, some companies decided not to hold virtual conferences. In early and mid-2020, they canceled or postponed previously scheduled (physical) conferences, even across tech-forward industries like telecommunications, entertainment, and social networking. Their failure to adapt cost them business.

From a financial standpoint, younger generations prefer mobile banking, and 5G will provide financial services like machine learning-powered chatbots, direct-to-consumer banking, and no-fee trading more secure and robust. Through virtual and augmented reality, everyday people can understand their portfolios because data is represented in a way that naturally makes sense to them. They can make decisions based on 3D representations of numbers and accounts.

Fidelity Labs introduced a financial agent called Cora. She operates with voice commands to answer questions and presents relevant information to the client. Capital One created Eno, a natural-language SMS text-based assistant that generates awareness about customer needs and works as a browser extension by generating virtual card numbers. Customers can generate secure card numbers while keeping their actual card numbers safe from potential fraud.

Some opportunities can optimize the financial industry, which I can mention, for example, Artificial Intelligence chatbots that can answer investor questions. Also,  Artificial Intelligence simulations can help investors with decision support. Banks can build Virtual Reality branches. Cryptocurrency buyers feel empowered by having actual ownership of digital media, and Mixed Reality can help investors visualize complex data and concepts.

 

Social Disruption

The Internet and mobile technology changed how we communicate as human beings. Generation Z (a.k.a., the iGeneration) make and break friendships on social media, never confronting each other in real life. Families are divided online by algorithms that feed them one-sided articles, making Thanksgiving dinner a battle of “Fake News.” The Internet, with its promise of opening world views, now seems to close them. From a social standpoint, the convergence of technologies will continue to change how we interact with family members, friends, and co-workers. In under ten years, people will be able to experience a volumetric or holographic (3D visual) representation of a friend or family member in front of them. They’ll be able to have a conversation with someone as if they were sitting in the same room, though thousands of miles apart.

At Magic Leap, Cathy worked with an amazing  corporate team, including some of the most advanced software developers specialized on spatial computing, which Simon Greenwold defines as “human interaction with a machine in which the machine retains and manipulates referents to real objects and spaces.” The dev team created a mixed reality chessboard and the ability to play against a live 3D opponent. One chess player was on the first floor, and the other was on the second floor. They saw each other as holographic images and could see each other’s moves as they played on the virtual chessboard. Companies like Spatial, Rec Room, AlcoveVR, VR chat, and Galaxity are among the spatial computing companies altering the way we work and play from a social standpoint. These social VR apps change the way we share experiences, how we share photos of our vacations, and how we relate to people because we’re interacting in a 3D space and experiencing the same presence as in real life.

If given a choice, most students would likely rather have a volumetric display of Abraham Lincoln giving a speech than read about it or watch a video representation of it. Holograms have something 2D videos don’t: presence. When people interact with a volumetric video, they have the experience that they are there with that person, and they experience emotion and memory that comes from physical interaction.

Internet dating will change dramatically when people do not have to guess whether a flat picture represents the person accurately since they will have a holographic display of the person right in front of them that may be harder to manipulate. Instead of having quarantine-safe first dates on Skype, potential couples can date via volumetric video. Someone who may come across as boring or distant on video can be themselves by moving around as a hologram. And if the date isn’t working out? Simply shut off the stream.

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Maybe someone tested positive for an asymptomatic version of a virus. They want to go dancing but don’t want to get anyone sick. Dance clubs will enable people to join the dance floor where they’ll be a holographic presence for others to see and to experience the club themselves using VR. The possibilities are endless.

Golf and country clubs are already being reimagined with virtual reality. Ready Player Golf re-envisions a golf outing in virtual reality. Friends join in VR to play a few holes. Colleagues or business partners can join in for a virtual game and talk business. Charities like Doctors Without Borders have taken advantage of the social aspect of VR in Ready Player Golf. RPG generated $12,300 from 78 donors and sponsors.

We may be physical creatures, but we now have digital personas as well. These existences—online and offline, physical and digital—are slowly merging. That doesn’t mean that future generations will always represent themselves as their physical persona in the digital world. They can choose to be the color purple, a dinosaur, or a superhero—or all three! In the future, people will choose to be whatever they want to be because they’re a lot more fluid in their concept of identity. And that will transcend even further in the future.

For instance, Facebook has created a social VR world called Facebook Horizon, which it describes as a “social experience where you can explore, play, and create with others in VR.” Cathy was an early beta tester of Facebook Horizon. She was one of the first people to livestream from inside Horizon and show the world what it looks like. In Horizon people are represented by avatars that look like themselves as their Horizon avatar is linked to their Facebook profile. People can play games, but more interestingly create worlds that their friends can explore. Here lies the possibility for monetizing digital goods within Facebook, making virtual living a profitable one. Facebook Horizon is monitored by real Facebook employees (represented as avatars) to avoid some of the social pitfalls that can effect people in VR.

While Facebook essentially requires you to be “you” in VR, other virtual realities allow more freedom where a boy might appear as the wizard Gandalf, or an older woman may appear as Iron Man. These virtual realities are interesting because they allow people to experience a completely different life. But, anonymity is not without consequences. Social VR is like the early days of the Internet. People met in chat rooms and talked to strangers; there were no online rules of etiquette. In some social VR platforms, people “sensory bomb” others who are new to VR, causing them confusion without a chance to escape or set boundaries. In the workforce, etiquette and social harassment guidelines will need to be put in place before deploying VR. People will find significance and purpose in the virtual world, which will change how they relate to each other in the physical world.

We anticipate seeing job ads in the future for people who can work seamlessly between digital and physical realities. We think this way because job titles like “hologram stylist” exist today. Hologram stylists work with people to prepare them for volumetric video capture. They pick clothes to wear and how a person’s hair should best be worn so that it is fully captured in 3D. Fashion brands like Gucci are already turning to digital only clothing and accessories. Virtual couture designers make digital fashion first, in the form of filters or 3D assets. As we depend on AI robots, like Amazon Alexa or Siri, they will become gatekeepers. Business-to-Robot-Consumer (B2R2C) marketing managers will reach customers through robots. No matter how we communicate, we expect AR, VR, AI, and 5G to have an impact.

Entertainment Disruption

Hollywood is shifting to more immersive content—not just for viewers but also during production. In 2016, director Jon Favreau started experimenting with VR through a film called Gnomes & Goblins. He took what he learned and applied them to his remakes of The Jungle Book and The Lion King.

Traditionally, for a blend of live-action and animated films, the actors speak into a microphone while standing up, remaining stationary when recording their lines. Instead of utilizing the traditional route, Favreau had the performers act together in a live space so that he could capture their movements and their facial expressions. He then incorporated that into the animation. Favreau also had people act using VR so that they could see themselves as a lion, hyena, or a warthog. The crew joined them in VR too. This changed how people performed because they were able to see themselves as the animated character and were able to interact in a digital space. If you had to play a lion, would you rather stand still at a microphone or see yourself as a lion in VR? Peter Rubin from Wired wrote:

See:  For workers, ‘digital upskilling’ puts tech trends on fast-forward

The Lion King was filmed entirely in virtual reality (well, save a single photographed shot). All the locations you know from the original—Pride Rock, the elephant graveyard, Rafiki’s Ancient Tree—exist, but not as practical sets or files confined to an animator’s computer. They live inside a kind of filmmaking video­game as 360-degree virtual environments, full of digitized animals, around which Favreau and his crew could roam. Headsets on, filmmakers had access to all the tools of the trade, just in virtual form.

We believe this will lead to a transition from storytelling, where we’re passive recipients of information to “story-living,” where we’re active participants in the story with agency—a capacity to act independently. The ultimate way to experience this will be in an artificial reality like VR. Of course, this isn’t completely new. There have been branching narrative concepts in the past, blending “choose your own adventure,” with certain digital technologies. In approximately five years from now, there will be another shift from “story living” to “story doing” (similar to AR) where the person is part of the story. Think of a supercharged version of Pokémon GO. The previously passive audience will now be active, leading to improvements in engagement and entertainment. The increased use of interactive storytelling techniques will blur the lines between mediums. Watching a pitched medieval battle on TV? Pick up the controller (or your VR headset!) and help turn the tide. This transformative experience is coming soon to a screen near you.

To get access to new content from my second book,  HYPERLINK "https://www.theaugmentedworkforce.com/launch"The Augmented Workforce: How AR, AI, and 5G Will Impact Every Dollar You Make with my co-author,  HYPERLINK "https://www.linkedin.com/in/jbuzzell/"John Buzzell, visit https://www.theaugmentedworkforce.com/launch

Cathy Hackl is a globally recognized tech futurist and top business executive with deep experience working in metaverse-related fields with companies like HTC VIVE, Magic Leap, and Amazon Web Services. She’s the founder of the Futures Intelligence Group where she advises Fortune 1000 and top luxury fashion brands on metaverse growth strategies, NFTs, and how to extend their brands into virtual worlds. She’s a sought-after consultant, speaker, and media personality. Hackl was recently featured in 60 Minutes+, Bloomberg and Cheddar’s coverage of the metaverse and is a contributor to Forbes. She has written two books and is writing an anticipated book on the business opportunities of the metaverse that will be published by Bloomsbury Publishing. Hackl has been dubbed the Godmother of the Metaverse and is one of the top tech voices on LinkedIn.


NCFA Fintech Confidential Issue 4 250 - Bracing For Change In The Era Of The Augmented Workforce

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

 


NCFA Jan 2018 resize - Bracing For Change In The Era Of The Augmented Workforce 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

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SEC commissioner: Investors have the right to make their own decisions without regulators standing in the way

CNN Business | | Oct 11, 2021

Hester Peirce pic - SEC commissioner: Investors have the right to make their own decisions without regulators standing in the wayAs a commissioner at the Securities and Exchange Commission, an important part of my job is protecting investors from the fraudsters who can cause them so much harm. Although swindlers often change their pitch to reflect the day's most popular trends — cannabis, crypto and clean energy are all the rage now — the cases the Commission brings typically have the same thing in common: they involve someone lying to get other people's money. Soon, other "hot investment opportunities that are too good to pass up" will be exploited by fraudsters, and when they do, the Commission will ensure that the securities laws are enforced.

Seeing these frauds day after day, week after week and year after year can make a securities regulator like me wonder whether anyone raising money from investors is honest. But that cynicism, understandable as it may be, can undermine our role in protecting investors.

Video Interview:  SEC Commissioner Hester Peirce interviewed by Alixe Cormick at FFCON21

Investor protection means enforcing antifraud and disclosure rules, but it also means protecting an investor's right to make investment decisions for herself, to take risks and to use the latest technology to trade and invest. As in other areas of life, people want to be able to make choices about their finances, even if others might question those choices or choose differently for themselves. Investors learn both from their mistakes and their successes.

Investment decisions are inherently personal 

An investor's age, career opportunities, asset mix, family situation, cash flow, expenses, anticipated length of retirement, interests, personal convictions and risk tolerance all play into whether a particular investment makes sense for a particular person at a particular time. Even two people who appear to be similarly situated may not be equally well-served by the same investment. Consequently, investment decisions are best made by an investor or an adviser with a deep understanding of the investor's circumstances and financial needs, not by a regulator seeking to act in what it perceives to be the "typical" investor's best interest.

Because a regulator cannot know each individual's complex mix of circumstances, she cannot decide which investments are good for which investors when. A regulator who attempts to do so is essentially saying that she can look from afar at an investor's life and decide what securities are best for that investor. A regulator, for example, may structure rules in a way that pushes retail investors into passive index funds and away from individual stocks or actively managed funds. That passive portfolio might be right for many investors, but other investors may prefer a different mix of investments.

See:  Speech by SEC Commissioner Peirce: Prosperity’s Door

Because of the inherent limitations on what it can know about particular investors, the SEC would do well to resist the urge to engage in financial planning by regulation, which is what it does when it limits an investor's ability to decide for herself what investments should be in her portfolio.

Regulators, risk-averse by nature, also should avoid imposing their own risk tolerance on investors, many of whom are comfortable with taking risks that regulators would not themselves take in choosing their own investments.

For instance, the SEC has been reluctant to greenlight traditional investment products holding crypto, potentially harming investors by restricting their ability to diversify their portfolios and to gain exposure to the growth potential of this new technology.

Regulators have a role to play, but that role should always be carried out with humility and a realization that investors have a right to make their own decisions, regardless of what regulators think of them.


NCFA Jan 2018 resize - SEC commissioner: Investors have the right to make their own decisions without regulators standing in the way 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

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Podcast: Whistleblower testifies about Facebook’s amplification algorithm and misleading the public

USA Today | Claire Thornton | Oct 11, 2021

Mark Zuckerberg - Podcast:  Whistleblower testifies about Facebook's amplification algorithm and misleading the publicOn today's episode of 5 Things: Armed with tens of thousands of documents, Facebook whistleblower Frances Haugen testified before Congress this week, warning lawmakers that the company has repeatedly misled the public about how its platforms drive division and harm users, especially children.

Earlier in the week, Facebook saw one of its worst outages ever. Facebook's platforms were down for six hours and over three billion people were affected worldwide.

Facebook went down for a bit on Thursday, October 8, 2021 as well.

We've known for a long time that Facebook and Instagram have harmful effects and we've known we're probably a bit too dependent on the platforms.

See:  U.S. and States Say Facebook Illegally Crushed Competition

So why does this moment feel different?

Breaking news reporter Gabriela Miranda, tech reporter Mike Snider and politics reporter Matthew Brown sit down with host Claire Thornton to dissect Frances Haugen's Congressional testimony, explain what we know about Facebook's 'amplification' algorithm and discuss how everyday people had their lives upended by Facebook's massive outage last Monday.

Extract from the podcast discussion including Facebook's Amplification algorithm

Matt Brown:

This algorithm is causing extremism in communities, this algorithm is causing people to be angrier, but it's also causing them to be more engaged. And when researchers at Facebook brought this information to the top executives, they consistently said, these are the effects and if we want to make them better, we have solutions that would potentially make a lot of the issues that are going rampant on this platform better, but they would probably decrease engagement on some level.

Claire Thornton:

And they didn't do anything about it.

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Matt Brown:

And consistently Facebook's executives said, we are going to choose keeping people engaged, increasing the scale of our platforms, instead of saying, we're going to scale this down and maybe not grow as quickly and not increase profits as quickly. So the fact that we know from inside the company now, how definitively this went is what really makes this situation so much more of a game changer. Haugen actually compared Facebook's behavior on this issue to the tobacco companies before regulation came for them and to the automakers actually even before we were required to have seatbelts in our cars. So she's really taking this as a historic moment that needs regulation. She kept urging that this is something that Facebook is not going to correct on its own, that its executives have consistently shown that they are not interested in correcting this on their own, even though they know what they need to do. And that's why she's now turning to Congress and saying that someone from outside the company needs to act.

 

Continue to the full article --> here

 


NCFA Jan 2018 resize - Podcast:  Whistleblower testifies about Facebook's amplification algorithm and misleading the public 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

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NCFA’s Fintech Confidential Magazine (Issue 4 October 2021)

It's here!  Checkout the latest issue of Fintech Confidential, NCFA's digital magazine

Checkout FFCON21: BREAKING BARRIERS for more information about the annual conference, on-demand videos and ways to participate


NCFA Jan 2018 resize - NCFA's Fintech Confidential Magazine (Issue 4 October 2021) 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 - NCFA's Fintech Confidential Magazine (Issue 4 October 2021)FF Logo 400 v3 - NCFA's Fintech Confidential Magazine (Issue 4 October 2021)community social impact - NCFA's Fintech Confidential Magazine (Issue 4 October 2021)

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Hot off the press: NCFA’s Fintech Confidential Issue 4, October 2021

About NCFA Canada | Craig Asano | Oct 7, 2021

NCFA Fintech Confidential Issue 4 cover - Hot off the press:  NCFA's Fintech Confidential Issue 4, October 2021

Welcome Letter

Dear Global Fintech & Funding Communities,

The National Crowdfunding & Fintech Association of Canada (NCFA) and partners are excited to present Vol. 1 Issue 4, FINTECH CONFIDENTIAL, a digital pop-up of the 7th annual 2021 Fintech & Financing Conference and Expo (FFCON21) held virtually from May 11-13 and co-hosted by NCFA and Toronto Finance International (TFI).

As global economies strive to contain the latest Covid outbreak and recover fragile sectors, fintech innovators continue to ‘BREAK BARRIERS’, the main theme of this year’s conference, and the second year in partnership with TFI, reflecting the growth and emerging challenges that the Canadian Fintech industry must navigate to achieve mass adoption and scale.

Fintech is not a niche but a permanent technological evolution that is changing the world of finance by high growth fintech companies and incumbent financial institutions.  It’s setting new standards and demanding new regulations.  It’s about delivering better financial products, services, and outcomes for everyone especially consumers and small to midsize enterprises (SMEs).

It’s been another unprecedented year with covid accelerating trends such as bitcoin’s institutionalization, the growing power of retail investors, the 2nd round of Open Banking consultations and the advisory committee’s recommendations to the federal government, payment modernization efforts, adoption of harmonized Crowdfunding regulation, AI roadmap, emergence of digital identity as a ‘right’ and core data infrastructure (ie., vaccine passports), growing support for Purpose (not just shareholder profit), green finance solutions tackling shared global problems such as SDGs and climate change, EDI (equality, diversity and inclusion), and regulatory push back and a firm ‘line in the sand’ for Big Tech.

FFCON21 was a successful event attracting over 100+ thought leaders, 75 partners, 500+ attendees, an NFT charity fundraiser in partnership with CanadaHelps for front line workers, and our second annual 2021 Fintech Draft competition -- a pitching event inspired by sports league drafts and designed to identity emerging high growth fintech ventures.  A hearty congratulations to the winners:  Agryo (Overall) and Copia Wealth Studios (People’s Choice)!

NCFA Fintech Confidential Issue 4 featured article TOC - Hot off the press:  NCFA's Fintech Confidential Issue 4, October 2021

Thank you to all the partners, speakers, attendees, volunteers, and the entire organizing team for making ‘Breaking Barriers’ an impactful and amazing online experience and for being part of Canada’s fintech and funding community.  We hope you enjoy reading this special edition of Fintech Confidential.

Finally, we continue to encourage the community to be mindful of others, and to do the right thing.  Dream big, be open to partnerships, and execute like your life depends on it -- it’s not too late to participate.  The world is changing because of you but there is a long bridge to cross, and more glass ceilings to break.  Onwards and upwards…

All the best
Craig Asano
Founder and CEO
NCFA Canada

 

Read the 85 page Fintech Confidential Issue 4 Digital Magazine --> Now

Note to readers:   the publishing platform's 'hot spot editor' is currently down (but we wanted to publish before Canada's Thanksgiving Long Weekend.  We'll add in audio and links to the document shortly.  Thanks for your patience!

 


NCFA Jan 2018 resize - Hot off the press:  NCFA's Fintech Confidential Issue 4, October 2021 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 - Hot off the press:  NCFA's Fintech Confidential Issue 4, October 2021FF Logo 400 v3 - Hot off the press:  NCFA's Fintech Confidential Issue 4, October 2021community social impact - Hot off the press:  NCFA's Fintech Confidential Issue 4, October 2021

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Podcast: CBDC implementation models and the role of the private sector including Payments Canada architect

OMFIF | Sep 30, 2021

Digital money and CBDCs - Podcast:  CBDC implementation models and the role of the private sector including Payments Canada architect

See:  Latest from BIS and a group of 7 central banks including Canada on retail CBDCs

Katie-Ann Wilson, head of policy analysis, OMFIF Digital Monetary Institute, is joined by David Mackeith, principal technology adviser, Amazon Web Services, and Craig Borysowich, principal architect, Payments Canada, to discuss central bank digital currency implementation models, focusing on the division of labour between the central bank and intermediaries. They also explore challenges of a two-tier model, how the central bank can incentivise adoption and the future of cross-border CBDCs.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Podcast:  CBDC implementation models and the role of the private sector including Payments Canada architect 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 - Podcast:  CBDC implementation models and the role of the private sector including Payments Canada architectFF Logo 400 v3 - Podcast:  CBDC implementation models and the role of the private sector including Payments Canada architectcommunity social impact - Podcast:  CBDC implementation models and the role of the private sector including Payments Canada architect

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