This week our experts brought you the following insights based on their experience as investors, entrepreneurs & executives.
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Your Editor is Bernard Lunn. He is also the CEO of Daily Fintech and author of The Blockchain Economy and occasional opinion columnist.
Monday Ilias Hatzis our Greece-based crypto entrepreneur (Founder & CEO at Mercato Blockchain Corporation AG and Weekly Columnist at Daily Fintech) @iliashatzis wrote Money going down the rabbit hole
MassMutual, a very traditional life insurance company that’s been in business for the last 169 years, bought $100 million worth of Bitcoin. MicroStrategy announced the issuance of $550 million in convertible notes to purchase more bitcoin. BitPay filed to become a national crypto-native bank. More crypto companies are applying for bank charters, and the first crypto index fund made its debut in OTC markets trading publicly in the U.S. Square announced an investment initiative to drive the adoption of greener bitcoin mining. The US dollar has been the world’s global reserve currency for the last 100 years. Spain and Portugal dominated the 15th and 16th centuries, the Netherlands the 17th century, France and Britain the 18th and 19th centuries, and the US dominated the 20th century. In a recent article in FT.com, Ruchir Sharma, Morgan Stanley’s Chief Global Strategist at Investment Management, thinks the dollar’s time is up. He explained how bitcoin is making progress towards replacing the U.S. dollar and becoming the world’s reserve currency. As the year comes to a close, bitcoin had a phenomenal year, its biggest in its short history and it’s very tempting to make predictions about bitcoin’s future based on its performance so far. If nothing else, 2020 has shown that bitcoin can challenge traditional currencies as a store of value and a medium of exchange. Money printers should beware, it might not be bitcoin, but something’s coming around the corner and it will eat their lunch.
Editor note: The combination of emergence of cryptocurrencies plus debate about the next global reserve currency plus massive asset inflation makes for unusual times.
Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy wrote: Equity Crowdfunding Part 4: The Rebundling phase driven by APIs and ecosystems.
Part 1 described the consolidation phase of this market.
Part 2 described the innovation at scale phase when traditional equity crowdfunding “goes crypto”.
Part 3 steps back into the past (which will always be with us) of artisanal equity funding.
In this final Part 4 we try to wipe the muck off our crystal ball and figure out what this market will look like when it replaces what we have now – the “rebundling phase of innovation”
Editor note: Never forget Amara’s law –“we tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run”.
Tuesday Efi Pylarinou @efipm our Swiss-based Fintech Adviser, founder of Efi Pylarinou Advisory and a Fintech/Blockchain influencer – No.3 influencer in the finance sector by Refinitiv Global Social Media 2019 wrote My Bank offers me KYC as a service for fintech apps & my business
As the year comes to an end, I am reviewing how many Fintech apps I personally use. I have been asking other `Fintech experts` this same question, to gauge adoption. I invite our Fintech readers to share what Fintech services you use personally or in your business (see my list in the comments below).
This activity made me realize that the interoperability gap in Financial services, remains huge. For every new digital consumer banking app that I choose to use (e.g. Revolut, Twint, eToro, Coinbase, etc) I need to go through the KYC process. And every time each of these fintechs need to update their KYC information, I need to separately provide them with the relevant documentation.
Editor note: This is like ye olde banker’s letter of introduction – a passport into the banking world.
Wednesday Alan Scott Managing Director EMEA at 24 Exchange @Alan_SmartMoney wrote Stablecoin News for the week ending Wednesday 16 December 2020.
This weekly snapshot is the news that matters in the Stablecoin market.
Rintu Patnaik, an Insurtech expert based in India, wrote: Fleets Go Full Throttle, Buoyed By Telematics & UBI
Commercial vehicles witnessed a 19.2% drop in medium duty and 31.1% in heavy duty trucks this year, compared to a year earlier. The silver lining was in LCV deployments in logistics, driven by ecommerce and last mile deliveries. As for connected truck telematics, the market is slated to grow 10% y-o-y, from 26.6 million installs a year ago to 29.3 million now. Telematics, based on market growth till date, is projected to be a $17.1 billion market by 2025, reinforcing an acknowledged role as productivity enablers.
Commercial auto insurance, on the other hand, has been expanding due to growing fleet of vehicles and price escalation, at a 5.9% annual growth in recent years, reaching a total revenue of $46 billion. The largest 10 insurance groups comprise 43% of the total US commercial auto market. Progressive Insurance, with direct written premiums of $4.4 billion and market share of 11% is the leader. Progressive Insurance, an early telematics adopter, developed its first usage-based product in the mid-1990s.
Editor note: Fascinating look at the positive future for commercial auto insurance for those who innovate.
Christian Dreyer @x3er, our Swiss based CFA who focusses on how XBRL changes our world wrote: XBRL News about ESEF and regtech / suptech
Editor note: This weekly snapshot is the news that matters in the XBRL market.
Friday Howard Tolman, a well-known banker, technologist and entrepreneur in London, wrote: Alt Lending for week ended 18 December 2020
Editor note: This weekly snapshot is the news that matters in the Alt Lending market.
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