This was on April 28, 2023, when crypto trading was going on with similar zest that one tweet from a prominent crypto stalwart drew a storm as he expressed doubt over the decentralized status of Bitcoin (BTC), XRP, Binance Coin (BNB) and Stellar (XLM).
The status of the aforementioned crypto-currencies ought to be DeFi (Decentralized Finance).
Mr Bons hailed the versatility of BTC and the fact that many people have been attracted to it for investing but then this is way behind in dealing with the complicated financial products.
Then, he made the assertion that BNB, XRP and XLM are designed to be centralized and such a state is rooted in its very blockchain architecture.
Fintech news updates in India to help you see what’s otherwise hidden.
Conversely, as for the DeFi (principles), Mr Bons played confidently on numerous projects like Ethereum (ETH), Cardano (ADH) and Polkadot (DOT).
Centralization Of Crypto-currencies: Fintech News updates in India:
Mr Bons maintains that the crypto-currencies are basically programmed to be centralized (and permissioned) which is the permissioned blockchain framework.
Under such a framework, users seek permission to get mingled into the network and this network is administered by some selected group of veterans.
What about Blockchains?
Such go without permission and welcome everyone onto the network who can contribute to its operations without the need for any authorization.
Mr Bons’ tweet, as was expected, turned on a spectrum of reactions from crypto devotees.
He posted another tweet which was about the Solana project and he maintained that albeit it is a decentralized system technically and one does not need specific permissions.
Clearly, the Solana project has covered a long distance marked with gives and takes in terms of security and scalability.
Fintech news updates in India to keep you ahead in the race.
Decentralized Crypto-currencies Getting Botched:
Finally dear reader, for the centralized crypto-currencies, chances are high for manipulation, censorship and such can also be controlled by higher authorities for strange reasons and this is what weakens the spirit of decentralization and makes others more suspicious and somewhat cranky.
Now here, the advocates of centralized crypto-currencies argue that enhanced efficiency, more compliance with regulations and better governance are some noticeable aspects here.
It’s up to you to decide while we continue to strive for authentic fintech news updates in India to broaden your scope.
Buy Now Pay Later? Now Way !!! Fintech Giants Frown At New Rules In UK:
Key snapshots:
- Executives at Klarna and Block turn away from but now and pay later rules as they see more damage than benefits.
- Such plans would amplify the time taken to buy an item through the BNPL way which would give way to confusion to others.
- Fintech also considers such regulations would pull up a meaningless scenario as big tech players and prominent businessmen are kept outside.
The UK government thinks about the plans for their buy now pay later industry but 2 officials of the industry term the step as “outdated” as this will result in a worse consumer experience.
They are therefore hell-bent on opposing the decision and want this to be rolled back.
Just month, in April, Innovate Finance, a fintech industry body in the UK, hosted an event in which the business heads of Klarna and Block tore into the rules as such would make things costlier and the people would opt for credit options (credit cards and car financing ones) which would put the burden on their finances.
Fintech news updates in India are covered by veterans of the field.
The UK government released a consultation paper to this effect in February this year in which it clarified its plans of bringing some clauses of the Consumer Credit Act (CCA) into the buy now pay later model.
This model is thought to be unstructured and some major changes are likely to appear here, such as:
- The Financial Conduct Authority would govern it.
- Going by CCA, the lending agreements will have more info,
- BNPL (buy now pay later) players see this clause as a source of disproportionate friction, for those in need of credits for the short term.
- With BNPL loans, shoppers are able to put off payments for a month or adjust it in the form of monthly installments.
- Another striking aspect is the ease of applying for a loan which is free from interest as long as a person pays on time.
Unequal Conduct For Small Businesses:
The government admits that the model provides a rough scenario where the interest of small businesses and individual traders is not safe while big fintech firms enjoy bigger leeway. Fintech news updates in India.
BNPL firms are concerned about such a rough playing field.
On the panel, Michael Saadat, who serves as the international head of public policy at Block, which is a prominent payments company, said,
“We know there are some very large retailers and very large tech businesses that have the capacity to offer buy now, pay later services to their customers directly. And we just don’t think it makes sense to exclude those from the scope of regulation.”
Some BNPL Firms May Abandon The Game: Fintech News Updates in India:
Under the IFGS purview last week, Adam Jackson, who heads public policy for Innovate Finance expressed concerns before the media that some of BNPL businesses may be compelled to withdraw from this industry due to such an unfavourable situation.
Mr Jackson spoke to the media, “Some firms might choose to withdraw from the U.K. market once they work through the costing. There is a risk of it being too expensive” to continue in the UK.”
He further added, “I think it is a risk. It’s not like red alert – probably amber.”
In the media, a representative from Block said, “The current proposals do not reflect the simple and transparent nature of BNPL products, and will create an unlevel playing field.” Fintech news updates in Inida.
He further highlighted, “The U.K. has an opportunity to take a leadership role in developing BNPL regulation that supports innovation, competition and good consumer outcomes.”
Now comes the person who represents the UK Treasury department before the media, “These products can help consumers manage their finances when used appropriately, but we want to strike a balance to protect borrowers from falling into problem debt.”
He also pointed out, “We’re proposing a tailored approach to the information lenders need to give consumers so that terms are clear and consistent, without causing delays.” Fintech news updates in India to make you confident about your decisions.
Well, dear reader, the BNPL model got momentum during the pandemic and many big companies tried hard to unroll their unique services to consumers. This included Apple and Barclays, which now provide products which are interest-free.
Also, the payment mode became a hit among the younger generation while the consumer rights stalwarts tried hard to convince them about the perils present in BNPL.
One is encouraged to spend more than the actual price over a period of time and now, this sector needs an uplift.
Unity In Intent Lands 5 Behind Bars:
Celebs are treated like a deity and have a vast fan-following and such are blessed people who make millions of bucks from dozens of sources.
In the previous month, in Delhi, India, police uncovered a gang who were active online and duped banks to the tune of 10 million INR by obtaining credit cards and loans against fake documents of celebrities.
They sought details about the personal identification of about 20 celebrities (Bollywood actors and sportsmen) and this was easy with their respective GST numbers which are always at one’s disposal online.
They used the GST number to get credit cards and applied for loans.
Cyber cell sleuths adjusted their optics on the cities of Delhi and Jaipur and nabbed 5 minds (not so bright as they have considered themselves).
Joint Commissioner of Police, Chhaya Sharma (eastern range) elaborated on the case before the media that the men deceived banks for an amount of 5 million INR.
Fintech news updates in India to make you informed with the latest.
She disclosed, “The gang applied for loans and credit cards using IDs of 95 people between November 2022 to February 2023, including 20 celebrities such as Sachin Tendulkar, MS Dhoni, Mahesh Bhupathi, Karan Johar, Deepika Padukone, Alia Bhatt, Anushka Sharma, Aishwarya Rai, Saif Ali Khan and others. A total of 34 forged PANs, 25 Aadhar Cards, 40 debit and credit cards, 10 phones and 5 voter IDs were among the items recovered.”
However, they could not unlock success with all the applications filed while some efforts bore them fruit funds.
The suspects were brought to light as Sunil Kumar, Puneet, Bhaskar Sharma, Asif and Pankaj Mishra.
Actually, police received a complaint from a Pune-based firm that alleged a gap of Rs. 21.32 lakhs in their accounts and gave some proof and documents to the police.
Now on doing some maths (not to be disclosed here), the police narrowed down on a location in Delhi and raided it.
Sunil Kumar was detained and had many bogus IDs and phones.
On interrogation, he pointed to a business spot, Indian Online Services which Asif and Puneet man.
Fintech news updates in India for smart security.
Joint CP Sharma added, “Their bank statements, phones and laptops are being analyzed. The companies are also under investigation regarding their KYC procedure. Further, investigation is underway regarding misuse of Aadhar updating process”.
