Updates From The FinTech Sector – March Edition

We’re here once again with episode 169, and we’ve got two intriguing guests: Emmanuel Daniel, founder of The Asian Banker, and Simon Spencer of Breaking Banks Asia. They’ll be informing us about banking and the latest economic news, as well as exploring the connection between conventional banking and the world of decentralized finance. Exploring the role of central banks in the context of inflation is imperative, particularly in light of new technological developments. This is because decentralized systems can be created that are highly trustworthy. Furthermore, recent events have posed the question of how money is kept within countries, particularly when different currencies are involved. As the money circulates across the boundaries of a single country, and interest rates are affected by the currency, it would be different in a decentralized system wherein cryptocurrencies are by nature, international. It is important to differentiate the array of issues in order to be able to address them adequately. Technology and decentralization are able to combat issues such as fraud, and more focus must be given to studying the benefits cryptocurrencies would bring to the traditional financial sector. Regulation is the first step to both address the problems and to gain control of the system. This is a far cry from regulation of traditional banks. And, it's worth noting that manipulating prices is much simpler to do in the crypto world compared to traditional systems. For this reason, several issues need to be addressed, including offering a formal definition of cryptos, determining who can regulate DeFi, and working out how DeFi can be self-regulated while also benefiting from external oversight. Regulation is undoubtedly an important factor when it comes to DeFi, yet the query to answer is: what needs to be regulated? Ensuring user security should be at the forefront, but decentralized finance is already able to do so. The challenge now is to grasp which aspects and how they should be regulated. All crypto-products, and indeed the entire crypto sphere, are endeavoring to form a bridge with the classic financial sector; and the asset that has been most successful in this endeavor is the stablecoin. It is uncertain how the stablecoin market will shape up, however, financial institutions are watching closely. Stablecoins bring more confidence in the framework overall, diminishing the potential for scamming and embezzlement. This could trigger a transformation in traditional money matters and inspire traditional banks to be more accepting of decentralized finance. At last, places like Singapore and Dubai endeavor to hurry up the implementation and regulation process. Through the collective efforts of their communities, the process is given a boost, yet that doesn't necessarily mean either of them are certain to succeed in this challenge. Successful enactment and regulation of this ability will be achieved by whoever is able to view the task holistically, integrating it with existing concerns, while at the same time being resposive to feedback and potential future modifications. 🔊 Tune in to the entire episode here: https://www.youtube.com/watch?v=EGxWmLQhuG8 Giovanni Scandroglio penned an article on the topic. An article by Giovanni Scandroglio was written on this subject.

Source: https://medium.com/@breakingbankseurope/news-from-the-fintech-front-the-march-edition-b7a86f3121b9?source=rss------fintech-5