The proliferation of digital currencies over the last few years has led to a rapidly growing list of use cases for tokenised assets. Thanks in no small part to the development of blockchain technology, as well as the recognition and anticipation of what cryptocurrencies
Bitcoin, now a decade old, was the first cryptocurrency to gain serious investor interest and has held its position as market leader. Although the volatile digital currency has experienced roller-coaster rides since its inception, it is popular for its attributes, such as decentralized, secure, peer-to-peer trading. And its acceptance as legal tender continues to grow. What considerations should investors keep in mind when weighing bitcoin as a possible investment asset?
New players driving fresh business models, innovative products and increased adoption of the power of big data affect not only the provision of financial services but the fundamental structures of financial markets. As the tectonic plates shift, banks need to actively seek and embrace new opportunities. For the data economy to thrive, fintechs and bigtechs to provide client choice without affecting financial stability, and for crypto-assets to provide a viable option to traditional assets, regulators must master the art of balancing innovation with regulation.
“The times they are a-Changin’” sung Bob Dylan in the 1960’s as the civil rights movement swept through the US and changed the direction of a Nation forever.Fast forward to 2019 and this anthem of change rings true for the banking sector. Whether it be emerging FinTech start-ups, regulatory bodies or the changing demands of their customers, it’s an industry that is being disrupted from all sides.
The last 18 months or so have seen initial coin offerings (ICOs) play a hugely disruptive role in the world of start-up financing. Companies the world over have managed to raise hundreds of millions of dollars—if not billions—to fund their blockchain-based development plans
The good news is that economic growth globally is strong, with a few exceptions, as the world shakes off the effects of the Great Recession. But economists are uneasy about troubling undercurrents, such as protectionist trade policies, that could whip up into a global trade war. Most are hoping that trade relationships can be repaired, acknowledging that the time is now to rebuild rather than burn bridges.
Once Labelled “Termites”, Secondary Stock Markets Are Now Legit. Why Can’t Crypto Follow the Same Path?
Secondary stock markets and cryptocurrency markets share a few things in common. First off, they have both been panned by critics. But more importantly, they have slowly gained acceptance as vehicles to provide funds to pre-IPO growth firms, some of which are now worth millions, and create liquidity pools for investors. Will crypto markets follow the trail blazed by the once denounced secondary stock markets into widespread acceptance?
Many bankers love blockchain for its potential to maximize efficiency and productivity while slashing costs and security risks. But the crypto-currencies, such as the (in)famous bitcoin, tied to it? Not so much—at least not across the board. While giving the thumbs up to distributed ledger technology for its advantages in areas such as trade finance, industry leaders are maintaining a wary eye on cryptos, due to disadvantages such as volatility.
Blockchain, Regulation and Privacy: The ramifications of using blockchain and supporting crypto-currencies within financial organizations
Blockchain—a cryptographic, decentralized distributed ledger system—is gaining acceptance and prestige as its multiple advantages, such as immutability, become clear, even to normally cautious financial organisations. But it isn’t all smooth sailing. Especially in Europe, some of the new data and privacy regulations clash head-on with blockchain and its attendant crypto-currencies. Can the technology overcome these hurdles and continue on its path toward broad, industry-wide adoption?
During 2017, a few fortunate investors have made a lot of money very quickly on their investment in crypto-currencies, an asset class that did not exist just eight short years ago. But as with other rapidly evolving assets, that often seem too good to be true, the potential soaring profits of crypto-currencies are offset by the risks of crushing losses. “Investor beware” is the name of the crypto game!