Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
ICOs can work for companies, Bank of Canada paper finds
Investment Executive | James Langton | May 7, 2019
Initial coin offerings (ICOs) can be an effective approach to start-up financing, argues a paper from the Bank of Canada.
A new staff working paper from the central bank examined the ICO phenomenon that has emerged in recent years as a way for fledgling companies to secure early-stage financing.
While the approach has attracted a fair amount of negative attention amid reports of failed and fraudulent offerings, the paper found that it can actually be the ideal way to fund a company in certain circumstances.
Specifically, the paper looked at how the ICO structure impacts the incentives of entrepreneurs, compared with traditional debt and equity financing, and concluded that it can be the better way to finance a company.
“Our results show that ICOs can have beneficial economic properties when compared with conventional financing strategies,” it said. “For certain projects, ICO financing generates a higher net present value than conventional modes of financing and is sometimes the only profitable form of financing.”
According to the paper, the essential factor is that returns to ICO investors be based on a project’s sales revenue, rather than profits.
See:
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“This can make things better in situations where effort by the entrepreneur leads to cost savings rather than higher sales,” it noted, as the benefits of cost savings are entirely retained by the company.
At the same time, the paper also highlighted a couple of unique risks to ICOs, including the risk of market manipulation. “Token ownership needs to be sufficiently widely dispersed to avoid [that risk],” the paper said.
Continue to the full article --> here
Bank of Canada Staff Report: 'Entrepreneurial Incentives and the Role of ICOs
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Dec 5, 2023 In the business landscape, achieving operational efficiency while ensuring cost-effectiveness is a delicate balance to maintain. This is especially true in the realm of fleet management where an array of variables can significantly impact overall operational performance. One strategy that has risen to prominence is the art of vehicle upfitting, a practice entailing the modification of commercial vehicles to meet the specific needs of a business. By tailoring each vehicle to the precise requirements of the job, businesses are not merely ensuring a smooth operation but are embarking on a journey toward enhanced productivity, safety, and economic viability. This article delves into the myriad ways in which upfitting plays a pivotal role in refining fleet management strategies, thereby contributing to the broader business objectives. How Upfitting Enhances Modern Commercial Fleet Operations The realm of commercial fleet operations is continuously evolving, with upfitting standing at the forefront of this transformation. Through a meticulous process of customization, upfitting tailors vehicles to meet the precise needs of a business, paving the way for enhanced operational efficiency. This isn't merely about meeting the immediate functional requirements; it's about envisaging a fleet operation that is sustainable, safe, and economically sound over the ...
Dec 4, 2023 EY's 2024 Strategic Guidance for Financial Firms Focusing on Compliance, Digital Transformation, and Operational Resilience EY has published it's annual 2024 Global financial services regulatory outlook report highlighting the challenges and unprecedented opportunities for firms ready to adapt and excel in this dynamic environment. As we approach 2024, markets are increasingly shaped by complex regulations, digital innovation, and a heightened focus on sustainability and consumer protection. Report Overview Stay abreast of prudential developments, resolution, and recovery processes. Given the dynamic market conditions, it's crucial to be well-prepared for regulatory changes and heightened supervisory focus. Take a holistic approach to address a range of critical areas including consumer impact, environmental, social, and governance (ESG) factors, digital assets, the digitalization of finance, artificial intelligence (AI) integration, financial crime, and operational resilience. This comprehensive approach is key to staying competitive and compliant. See: OSC/EY Report: AI in Fintech Use Cases Proactively develop a strategy for ongoing engagement with regulatory bodies, especially regarding new prudential developments. Understanding and anticipating regulatory shifts can position your firm for more effective compliance and strategic planning. Strengthen your firm’s capabilities in crisis management, ensuring that capital and liquidity standards are met. This will not only ...
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