The world’s largest card company just doubled down on its bid to capture the crypto market. Visa announced today that it has launched a crypto advisory practice for its clients and partners under its Visa Consulting and Analytics (VCA) arm. The news comes just a few months after Cuy Sheffield, Visa’s head of crypto, declared […]
Stacked raises $35M to bring passive investing tools to retail crypto traders
Stacked, a web-based platform that provides passive investment tools for retail investors interested in crypto, just announced it raised a $35 million Series A co-led by Alameda Research, a crypto trading firm owned by FTX founder Sam Bankman-Fried. Bybit and BitDAO partner Mirana Ventures co-led the round alongside Alameda. Fidelity International Strategic Ventures, DRW Venture […]
As crypto unicorns multiply, the US stands out as ground zero for blockchain winners
The market for crypto-focused investing is growing rapidly. News that Paradigm put together a $2.5 billion fund the other day is a reminder of the scale of funds now available to startups looking to build on the blockchain. Andreessen Horowitz has a mega-fund in the market as well, while Coinbase Ventures is setting a blistering […]
Wall Street still doesn’t get crypto
Hello and welcome back to Equity, a podcast about the business of startups where we unpack the numbers and nuance behind the headlines! Friday afternoon the Equity team took to a Twitter Space to hit on a topic that we had to cut from our regular end-of-week show, namely crypto earnings and how Wall Street […]
Amazon is adding a Venmo checkout option next year
PayPal today announced that Amazon.com will be adding a Venmo option to checkout for users in the U.S., starting next year. The news arrived as the online payment giant announced solid third quarter results, with a 13% year-over-year revenue increase. Beginning at some point in 2022, Amazon shoppers will be able to link their accounts […]
Coinbase goes fishing for OpensSea’s catch
Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines. This week was one of our strongest shows yet, with a wide diversity of news items that were genuinely fun (and complicated) to chew through. And even though we started off kind of grumpy, we laughed through […]
IMF Head Says Central Bank Digital Currencies Are Reliable, Hard to Think of Bitcoin as Money
Digital currencies backed by central banks are the most reliable form of digital money, according to IMF managing director Kristalina Georgieva. At the same time, to think of cryptocurrencies such as bitcoin as money is difficult, believes the chief executive of the international financial institution.
IMF Chief Georgieva Marks Top Issues for Policymakers Exploring CBDCs
Among the members of the International Monetary Fund (IMF), 110 countries are exploring central bank digital currencies (CBDCs), the fund’s chair and managing director Kristalina Georgieva revealed at an event hosted by Bocconi University in Italy. Speaking remotely to the audience, she noted that the key challenge for monetary authorities now is to guarantee the interoperability of these currencies.
According to Georgieva, a major consideration is whether state-backed digital currencies can serve as a means of exchange trusted by the public, Reuters reported on Tuesday. Other questions policymakers need to answer are if CBDCs can contribute to domestic economic stability and how they would fit within international regulatory frameworks introduced by organizations like the Bank for International Settlements (BIS).
The BIS Innovation Hub is leading several projects to test the use of state-issued digital currencies in international transactions such as a collaboration between the Reserve Bank of Australia, Bank Negara Malaysia, the Monetary Authority of Singapore, and the South African Reserve Bank. These also include joint trials conducted by China, Hong Kong, Thailand, and UAE as well as a wholesale CBDC test carried out by Banque de France and the Swiss National Bank.
In reference to cooperation between international financial organizations and national monetary authorities regarding CBDCs, Kristalina Georgieva further stated:
“It is very impressive how much the international community, the central banks, institutions like ours are now actively engaged to make sure that in this fast moving world of digitalization, money is a source of confidence and helps the economy function rather than [being] a risk”.
The head of the IMF emphasized that she views digital currencies issued by central banks as the most reliable form of digital money while remarking she finds it hard to think of cryptocurrencies as money. “De-facto assets” like bitcoin are not backed by assets that hold their value stable and can rise and fall sharply, Georgieva elaborated, insisting:
p style=”box-sizing: border-box; margin-bottom: 1rem; margin-top: 0px;”>”In the history of money, it is difficult to think of them as money”.
In her address at the Italian academic event, the IMF chief also spoke about Europe’s efforts to deal with challenges caused by the spread of Covid-19. Kristalina Georgieva noted that the Old Continent is now more prepared to avoid another debt crisis such as the one with Greece after the last global financial crisis. However, she stressed that governments need to plan their course carefully as they shift to medium-term fiscal consolidation so they can erase the debt burden related to the pandemic.
Bitcoin hits strongest level since May
Bitcoin, in terms of market value, rose 4.6% to $53,859.6.It passed $50,000 mark for first time in four weeks on Tuesday. Bitcoin fell below $50,000 in early September.Bitcoin hit its highest level since mid-May on Wednesday as bulls bid up …
Coinbase to let you deposit part of your paycheck into your Coinbase account
Cryptocurrency company Coinbase is announcing a handful of new features. While the company is better known for its exchange that lets you convert USD into various cryptocurrencies, Coinbase wants to expand its consumer services so that you use the platform for different use cases with more financial services. First, the company will soon launch direct […]
SEC Regional Director Erin Schneider talks SPACs, Coinbase and what startups could do better
Schneider shares insight into her personal thinking about a range of issues including crypto lending, SPACs, NFTs and what startups can do to stay out of regulators’ cross hairs.