Max Savoie’s Post

✦ TETHER CEO raises concerns about the EU's Markets in Crypto-Assets regulation, highlighting potential SYSTEMIC BANKING RISKS due to new bank reserve requirements for stablecoin issuers ✦ The regulation framework, intended to enhance FINANCIAL STABILITY and CONSUMER PROTECTION, might inadvertently threaten banking infrastructure ✦ The CEO emphasizes a potential conflict between regulatory goals and the PRACTICAL IMPLICATIONS for the digital asset industry #CryptoRegulation #Tether #BankingRisk #EURegulations #Stablecoin

The European Banking Authority (EBA) has released a final draft of regulatory technical standards for stablecoin issuers to handle holder complaints. The standards, developed in partnership with the European Securities and Markets Authority (ESMA), require issuers to publish complaint handling procedures and have a standardized process for customers to submit complaints. The EBA received public comments on the draft guidance in July 2023 and made targeted amendments, including new provisions relating to data protection and updates to complaint forms. The final draft will be submitted to the European Commission for endorsement by the end of June 2024 before heading to the European Parliament and the Council for approval. This development is part of the recently-implemented Markets in Crypto-Assets Regulation (#MiCA) in the European Union and reflects a growing trend towards regulating #stablecoins and other cryptocurrencies globally. https://lnkd.in/eJEVqpsZ

Clearstream, DekaBank Deutsche Girozentrale and DZ BANK AG successfully issue #tokenisedbonds on #DLT at #ECB trials DLT Bond Issuance: Clearstream, DekaBank, and DZ Bank have successfully issued two tokenised €5-million bonds using #distributedledgertechnology (#DLT). ECB Trials: The #issuances were part of the European Central Bank (#ECB) trials to explore #DLT’s potential for #settling #transactions in #centralbankmoney. D7 Platform: The entire process was conducted on Deutsche Börse’s D7 #DLTPlatform, including #issuance, #distribution, #settlement, and #lifecyclemanagement. Innovative Milestone: This marks the first #institutionalgrade #issuances in #Germany using #DLT with #wholesale #digitalcentralbankmoney, aiming to enhance #safety, #liquidity, and #efficiency in the #securities #market.

"Tokenisation may enable the consolidation and settlement of various types of assets on a single platform in the future – including money as a settlement asset." Antoine Martin Swiss National Bank #FinanceAutomation #MoneyAutomation #SmartContracts #DigitalAssets #Tokenisation #TokenizationAdoption #Tokenization #PrivateSector #AssetTokenization #CentralBankMoney #LiquidityRisk #dvp #DLT #RiskFreeMoney #WholeSaleCBDC #CBDCs #DLTInfrastructure

Since the inception of cryptocurrencies, they have been a disruptive force in the financial industry, reshaping and challenging the banking systems and how individuals interact with money. Read the article https://lnkd.in/d_fHhV9u

On July 26, 2024, FINMA published Guidance 06/2024 «Stablecoins: risks and challenges for issuers of stablecoins and banks providing guarantees» (Guidance 06/2024). This guideline has created some confusion and reactions, going as far as saying that FINMA's attitude make it impossible to issue stablecoins from Switzerland, because there is always a need for a banking license. Switzerland has a rule: If there is a duty of redemption for a financial service provider, the banking act applies. What FINMA has done with the guidelines is just an illustration of the application of existing laws. This rule does not fit the new forms of payment services. In order to have a safe basis for stablecoins, Switzerland must amend the legislation, get rid of the ill designed fintech license (art. 1b Banking Act) which is still based on the duty-to-redeem-approach and define a new payment service provider license in the financial institution act (what the European Union has done a long time ago, see Payment Service Directive), e.g. enabling collateral in the form of book money as underlying of stablecoins, without triggering a duty of redemption. I have analysed the legal situation in my contribution on "Stablecoins" in AJP 8 /2023 (see below). The crypto community should exercise pressure on the Federal Administration to speed up the work for a replacement of the Fintech License (art. 1b Banking Act).

Members of the Euro Banking Association gathered last month in Lisbon for their annual conference. Alongside our presence at the event, our Founder and CEO, Gilbert Verdian, joined a panel of experts in a session on day one: ‘The challenges and benefits of CBDCs, tokenised deposits and stablecoin adoption’, to discuss the benefits and risks of programmability and how likely the risk of market fragmentation is if banks were to chase after the same use cases. Discover the highlights from the session in our latest article: https://lnkd.in/e_8zv7cG #EBAday #CBDCs #digitalmoney

This article, written by Quant, is a great reminder that now is the time to exploit innovation opportunities in payments. As the financial landscape continues to evolve, programmable payment capabilities are emerging as a game-changer. With the potential to revolutionize transaction processes, now is the perfect time for banks and financial services to seize innovation opportunities. Gilbert Verdian says, “By embedding logic into money, banks can automate processes, make money intelligent and create space for new types of use cases.” “Time is running out, there is a risk that banks may lose customers to new entrants if they don’t innovate now." We couldn't agree more 👍 #paymentsinnovation #programmability #opportunities #makeithappen

Today, the Swiss National Bank announced the continuation of the Helvetia project, focusing on tokenized securities settled in Swiss franc central bank digital currency (wCBDC). Following the successful Helvetia III pilot, which ends in June, the next phase aims to gradually include additional financial institutions and expand wCBDC availability. Due to the success of the first three phases, the SNB Governing Board has approved the continued use of wCBDC settlement on SIX Digital Exchange (SDX) for at least two more years. This will allow financial market participants to continue settling tokenized securities transaction on SDX in central bank money and to explore the added value of tokenization and integrated settlement. #TheFutureofFinanceIsNow #wCBDC

Proposed regulation aims to bring regulatory clarity to the #stablecoin sector. We can learn from similarities between modern stablecoins and the USA's “free banking” period of the 1800’s. https://lnkd.in/ertQaFRY