Economic turmoil appears unrelenting still and every nation’s economy is severely bruised. Chinese yuan is no different and is tumbled further down while US dollar and Russian ruble exhibited resilience.
As I collect inputs writing this, yuan is up for trade at 6.86 to the dollar. No signs of laxity on part of People’s Bank of China (PBOC) as it tried to fuel their economy as well as yuan. Stay enlightened with Fintech news updates in India.
This is just some days ago that PBOC brought down the standard bank rate from 2.10% to 2% and then it also decreased the facility rate for one year from 2.85% to 2.75%. The central bank of China termed the development as moves to ““maintain reasonable and sufficient liquidity in the banking system.” Fintech news updates in India.
Then, China’s cabinet also endorsed a document stating spending policy packed aimed at enhancing infra spending by 100%.
The PBOC’s decision to reduce rate (2.1% to 2%) was called “bearish” as ING economists notified the investors about the central bank cut rates. Fintech news updates in India to keep you motivated.
Then, on August 22, PBOC again squeezed the specific lending rates and the 5 year loan prime rate was belittled from 4.45% to 4.3%. As for the one year prime rate, it was also trimmed from 3.70% to 3.65%.
That same day, Atilla Widnell, who is Managing Director for Navigate Commodities and is also an ardent analyst, wrote a note addressing investors,
“Fresh monetary easing/stimulus was seen as futile as ‘flogging a dead horse,’ given that China’s economy desperately needs consumers back on the streets spending money.” Fintech news updates in India that you can trust.
A flurry of reports from many experts from diverse backgrounds and schools of thought, blame the Chinese disordered real estate sector for the current economic cries that also accommodates yuan weakening.
Zhirong Ou, who is an eminent lecturer and manages the website theconversation.com, describes the Chinese real estate sector as “traditionally strong housing market,” but things are entirely different now as there exists a “funding crisis”.
Now as an after effect, in mortgage payments, real estate buyers’ interest evaporates but lending on construction rises to new levels and such uneven factors affect the economy and yuan evenly. Fintech news updates in India to push forth the limits.
Running his thoughts all across, Zhirong Ou observes, “The recent spate of mortgage strikes by home buyers across China has exposed the risk that has accumulated in the market as it has developed over the past two decades.”
He includes the mention of the Evergrande fiasco which he calls turning point and has spread everywhere like a viral. Fintech news updates in India to initiate quick decisions.
Whatever the case, yuan faces a tough time and some Chinese banks have come to its rescue from the decline, by enconsing an onshore spot rate. Weakening of yuan will make the market whimsical while the Chinese currency will lose its lustre too.
Prominent news agency Reuters alerted some banks just some of days ago. It notified on August 24, “China’s foreign exchange regulator phoned several banks on Wednesday to warn them against aggressively selling the Chinese currency, people with direct knowledge of the matter said.”
Well dear readers, in the light of the booming manufacturing sector and related exports in nearly every corner of the world, it is thus hard to believe that the Chinese economy would collapse easily. Hopefully it will turn around in near term.
Fintech news updates in India.
Aiming Stronger Regulatory Framework, Details From Crypto Companies Due To Singapore Regulator
A media house, popular widely in the wider Fintech panorama, reports that Monetary Authority of Singapore (MAS) has nudged the cryptocurrency agencies for detailed accounts. Last month, for the purpose, the Central Bank delivered a “granular questionnaire” expecting to be obliged with answers quickly. Fintech news updates in India to keep you informed.
The info sought from companies, would comprise of the total crypto resources, their major counterparties whom they lend to and borrow from, the amount loaned from them and which of the tokens are crowd-pullers or make people go crazy. Fintech news updates in India to take best decisions.
Further, the authority also want to be in know of the initial strategy that companies adhered to, after they got the necessary permissions to function as a cryto agency and how did they undermine or ignored the associated risks. Fintech news updates in India to get along comfortably.
In Singapore, the crypto industry is abuzz about the possible tweaks in the regulations which control these platforms. Fintech news updates in India. Fintech news updates in India to trust your financial landscape.
In the first week of July, there were speculations of the slew of possible restrictions to be unlocked on crypto currency trading from MAS, as its Managing Director Ravi Menon hinted more regulations on other areas too. Fintech news updates in India to rise above the rest. Fintech news updates in India.
Out of a wide pool of 200 crypto agencies, only about a dozen have received the license to offer digital payment token services in Singapore. Fintech news updates in India.
As of now, luckily, crypto companies or exchanges are not bothered about any liquidity or capital requirements and such are equally unfazed for any possible insolvency risks. Neither do they have any concerns for safeguarding customer funds.
But, by the stoke of such fresh regulations, changes are on cards. MAS laid bare before the media, as:
“Licensees and applicants are expected to notify MAS of any events that materially impede or impair the operations of the entity, including any matter which may affect its solvency or ability to meet its financial, statutory, contractual or other obligations.” Fintech news updates in India to stay motivated.
Now, Mr Hagen Rook, in the capacity of senior partner at the Reed Smith law firm opined as Fintech news updates in India.,
“In light of the various insolvencies and counterparty defaults which have plagued the crypto industry recently, the MAS is likely to be assessing the need for additional regulatory measures to mitigate the risks that led to these distressed scenarios,”
In addition to this, the regulatory spotlight may also fall on a test which every investor would be put through, before he is allowed to dive into the crypto pool. This is what Chris Holland has hinted at who serves as a partner at Singapore advisory firm Holland Marie. Fintech news updates in India.
Prima facie, it appears that the wisdom behind such measures is to curtail the adverse effects caused by bankruptcies in the sector and to shield retail investors from the looming volatility the market faces.
But then the industry guris are skeptical of its virtues, as it may hurt unfettered market thinking and innovation. Daniel Liebau, who supervises investment at Modular Blockchain Fund, confirms, “While I appreciate the need for MAS to consider regulating the crypto space more thoroughly, I am concerned about an overreaction now, and taking decisions that potentially could stifle innovation and the country’s ability to be a leader in Web3,”
Across Latam, the confession is on the rise as it is in practice, that social distancing is no longer in sight between traditional banking and the crypto-market. Fintech news updates in India.
This is primarily because the banks switch to crypto services to keep their customers happy and satisfied. Fintech news updates in India.
In the race, Ripio and Bitso, two prominent exchanges in Latin America, birth exclusive cards enmeshed with crypto-currency codes and customers are obliged to use crypto-holdings, stashed in such platforms, to further purchases.
In case of Ripio, the company joined hands with Visa and they plan a prepaid card with reach to come over hardships which customers face for credit analysis. Fintech news updates in India.
The underlying objective of the exchange is to motivate people to use more crypto in their everyday purchases instead of fiat currency. Fintech news updates in India.
In case of Visa based crypto card, a cashback of 5% is cited until October 31, following purchases which accumulate into user accounts. Fintech news updates in India.
Henrique Teixeira, global head at Ripio, is hopeful that around 250,000 customers will use this card by the end of this year which would fetch an investment of $300,000 in the product. Fintech news updates in India.
This ranks among the biggest of platforms in Latin America in terms of volumes traded and has followed the footsteps of Ripio and plans to unveil a crypto-enabled card in months to come. Fintech news updates in India.
Bitso CEO Daniel Vogel is pretty excited about the strategy which partners with MasterCard to further the effort.
No specific date is there so far but clarified about the long wait for this product. The instrument is designed to help the customers.
He disclosed, “We have seen certain patterns of users, on payroll days money enters Bitso and is exchanged for digital dollars and then we see that they convert them back to pesos to make their payments, we are excited to see a latent demand.”
The maiden location for this product would be Mexico and a cashback will be offered too.
Earlier this year, Kaiko, which produces digital market data, also reiterated the fact that the Latam users are more oriented to apply crypto-currency in “real world” instead of trading activity alone and exchanges are mushrooming to narrow down the distance with the customers. Fintech news updates in India.
10% South Africans Are Proud Crypto Owners:
Finder’s latest report indicates that 10% of the population in South Africa own crypto-currency which simply translates into two aspects; one, the land ranks 18th out of 26 countries for crypto adoption” and secondly, around 4 million hearts throb for crypto currency.
Fintech news updates in India.
But then, amazingly, South Africa jumps to third position when we regard bitcoin ownership as among the overall crypto subscribers, 52% have remitted for seeking a network address as bitcoin and this feature makes it third highest in the world. Fintech news updates in India are right here. Fintech news updates in India.
The report points out, “As it stands, roughly 5% of those surveyed in South Africa say they own Bitcoin (BTC), with 2% saying they own Ethereum (ETH), 2% own Dogecoin (DOGE) and 1% own Cardano (ADA).”
Men Will Be Men: Fintech news updates in India.
Looking at the gender, men, out of 4 million crypto lovers, constitute 65% and on broadening our glimpse, we find Norway comes second, as 74% are male crypto owners but for third position contest, Vietnam and Colombia score equally. Fintech news updates in India.
Splitting the stats deeper further, we find that 52% of population rally for Bitcoin which puts it on third rank globally, while first and second spots are occupied by Australia and Ghana respectively. Fintech news updates in India.