Yesterday, Jerome Powell, Chairman of the United States Federal Reserve, noted that a central bank digital currency could benefit the financial sector by serving as a way to upend the fragmentation of the market for a digital alternative to traditional fiat currency. This, he predicted, may steal market share from cryptocurrencies and stablecoins, and he noted that it is an argument in favor of a CBDC. A paper which explores digital payments is slated to be released by the Fed as early as September.
“Not only did Powell discuss the potential benefit that a CBDC would provide, in his view, but he also discussed that, in order for digital assets of any type to take on a bigger role in the financial system, greater regulation would be required. This is something that we’ve been saying for quite some time. The fact that Powell, arguably one of the most powerful actors on the global financial stage, is talking about increased regulation can only be a good thing. It may be just the push that many regulators need to embrace spending resources to make a more coherent, standardized set of guidance for exchanges,” explained Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.
“For some time, it has been apparent that digital assets are here to stay. Ultimately, CBDCs are going to be a mainstay of the financial system of the future. But, there are so many different applications for blockchain technologies, and we’re going to see lots of innovative ways to embrace digital assets. The industry is waiting on pins and needles for a more standardized set of guidance, especially as related to AML issues,” noted Gardner.
“We have a pretty strong regulatory framework around bank deposits, for example, or money market funds… That doesn’t exist currently for stablecoins, and if they’re going to be a significant part of the payments universe – which we don’t think crypto assets will be but stablecoins might be – then we need an appropriate regulatory framework,” Powell said during the course of his remarks.
“There is no doubt that an appropriate regulatory framework is a necessity. Leaving a legal gray area in an area of the payments universe doesn’t make sense — not for the industry, and not for the public good,” opined Gardner.
Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Over the past twenty years, the company has built technology for the world’s most notable exchanges, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.
“In the interim, we’ve created a Trust Score system, which would allow exchanges to bring daylight to their operations and help users and regulatory bodies gauge compliance in key areas. We’ve worked with clients on being proactive and implementing AML protocols before regulators have mandated them. We’ve led the fight for security in an industry which is brimming with innovation, and I can’t wait to see what’s in store for it, once regulators fully embrace the technology,” said Gardner.
Patricia Relocates Headquarters to Europe
Patricia Technologies Limited is proud to announce that we have moved our operations to the Republic of Estonia, with our headquarters now domiciled in the Northern European country.
This global movement is set to strengthen our relationships with marketers and agencies in the global crypto markets, whilst also positioning us as the leading cryptocurrency trading company in Nigeria, Africa, and Europe.
This recent development is accompanied by the launch of our new and upgraded Patricia app version 2, which features lots of new updates and upgrades, including crypto swap; a betting feature that enables users to use crypto to place bets; the app also introduces new cryptocurrencies (coins) to add to the already existing Bitcoin. There’s also an automated buy limit for crypto traders, and the Refill service has also been upgraded to include international transactions.
Looking at how we have managed to dominate the Bitcoin market in our 3 years of existence, our CEO and Founder, Hanu Fejiro Agbodje quipped that “What originally came as disastrous news turned out to be the cornerstone we needed for this worldwide expansion” referring to crypto trading Ban by the Nigeria Government.
He also remarked that “the decision to expand and move our headquarters to Europe is part of our plans to improve our business strategy”. We want to play in the big league, there’s no passion to be found playing small, we want to be in the most sophisticated markets in the world, this is an opportunity for us to lead the fifth Revolution”.
As one of the industry’s fastest-growing financial solutions providers, our goal is to empower brands and individuals to take control of their digital finance through an advanced cross-border payment solution provided by Patricia Business.
We presently have an established presence in Ghana, Kenya, South Africa, and China.
For more information or to get in contact with us, please send a mail to: firstname.lastname@example.org.
Patricia is an Africa-centric integrated alternative payment and e-commerce company that facilitates the easy use of digital currencies like Bitcoin, and other digital assets for everyday transactions.
Binance US is Eyeing an IPO, Says Changpeng Zhao
“Our partner in the U.S. is looking at the potential IPO [initial public offering] route,” Zhao said on Friday at the “Redefine Tomorrow” event organized by SCB 10X — the venture arm of Thailand’s oldest Siam Commercial Bank. The IPO route, however, “is not 100% fixed yet,” he said.
After Coinbase’s listing earlier this year on Nasdaq, the U.S. now has an ecosystem where crypto companies can go public, according to Zhao. Indeed, several U.S.-based crypto firms, including Gemini, Kraken, and Circle, are looking to do just that.
As for Binance itself, Zhao said an IPO is not in immediate plans, but that might change in the future. This is a notable change from what Zhao told The Block earlier this year. At the time, he said Binance wants to take a more crypto-native “path” forward, i.e., expanding the utility of its “utility token” BNB, instead of doing a traditional IPO.
But now before Binance itself could go for an IPO, it will need to change its company structure, said Zhao, because most regulators want to see a headquarters, an office, or a legal entity.
“We are setting up those structures,” he said. “Once those structures are in place, you may make it easier for an IPO to happen. So that’s not out of the question. But right now, we are still in the early stages.”
The crypto space is now “relatively heavily regulated,” according to Zhao. To that end, Binance has to make a “big pivot from a technology startup into a financial services company,” said Zhao.
Crypto now is “very much understood as a financial asset type, we just got to treat it as such, and we have got to run the company as such,” he said.
And given increased regulatory attention, Binance is also stepping up its compliance efforts, said Zhao. “We are hiring many traditional compliance people, also ex regulators” to improve Binance’s communication with regulators, he said. He acknowledged that communicating with regulators is currently not one of Binance’s core strengths.
Now Zhao is, in fact, looking for a new Binance CEO, one he hopes will have a “very strong regulatory background.” He first disclosed his plans to step down to The Block earlier this year. At the time, he said he would like to resign from the CEO role in the next two to five years to focus entirely on growing the BNB and Binance Smart Chain ecosystems. Those plans now appear to be firmer.
Binance has long been subject to global regulatory scrutiny, with an increased focus in recent weeks. Government agencies in the U.S., the U.K., Japan, Italy, Thailand, Poland, and the Cayman Islands, have all either issued warnings or taken action against the exchange.
Bitcoin Will Hit All-time Highs Again This Year, Crypto is Inevitable Future: deVere CEO
Bitcoin will hit its previous all-time highs again by the end of the year with prices driven higher by the “carefully considered arguments” and “new measured tone” being put forward by the likes of Elon Musk, Jack Dorsey and Cathie Wood, affirms the CEO of deVere Group.
The bullish Bitcoin price prediction from Nigel Green, chief executive and founder of one of the world’s largest independent financial advisory and fintech organisations, follows Wednesday’s The B Word Conference.
At the live virtual event, Tesla and Space X founder Elon Musk, Twitter founder Jack Dorsey, and Ark Investment’s Cathie Wood all advocated for the cryptocurrency and talked about its massive future potential.
Bitcoin surged as much as 10% on the back of their comments.
Nigel Green says: “Musk, Dorsey and Wood are three of the most important and forward-thinking business leaders of our time. What they say matters.
“Crucially, the tone was less sensationalist than it has been in past, with all the panelists putting across carefully considered, fact-based arguments about why they are all bullish on the future of Bitcoin and crypto generally.
“This will not have gone unnoticed by investors.
“As such, I believe that with these hugely influential figures pursuing this stance and this new tone, we can expect the price of Bitcoin to hit, or even surpass, its mid-April all-time high of $65,000 by the end of 2021.”
Demand will boom because of what Musk, Dorsey and Wood said for two main reasons, says Mr Green.
“First, both institutional and retail investors were given a considerable crypto confidence boost by comments the panelists made about their own multinational businesses and their visions for the future.
“Musk, one of the world’s most successful and richest entrepreneurs, confirmed for the first time that both of his companies, Tesla and Space X, and that he personally, owned Bitcoin. And that neither he nor his companies, will sell the cryptocurrency. He also revealed Tesla is likely to restart taking payments in Bitcoin.
“Similarly, Dorsey hinted that Twitter will soon allow advertisers to pay for advertising on the giant social platform in crypto.
“He went on to say the cryptocurrency could function as the internet’s ‘native currency’ and this would help all businesses in a much faster way.
“Second, Dorsey and Wood – and Musk to a lesser degree – addressed the environmental impact of Bitcoin mining, an issue which has weighed heavy on the price in recent months.”
Wood, in particular, spoke about how Bitcoin aligns with the environmental, social, and governance (ESG) investing growth trend.
She highlighted how Bitcoin “will be much more environmentally friendly—certainly more than traditional gold mining or the traditional financial services sector. In many ways, it already is.”
She added that Bitcoin has much to offer in the ‘social’ bracket “by providing financially underserved people with “access to payment technology… everywhere around the world without friction”; and the ‘governance’ bracket by offering transparency “unlike the opaqueness of financial systems and the toll-takers in the traditional financial world.”
The deVere CEO affirms: “All of this will help drive Bitcoin prices higher and this will have a knock-on effect to the wider crypto market.”
He concludes: “The message from mega-influencers Elon Musk, Jack Dorsey and Cathie Wood was clear: crypto is the inevitable future.”
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