Bank-based blockchain projects are going to transform the financial services industry
Cryptocurrencies are constantly evolving, with popular currencies such as Bitcoin and Ethereum maintaining their popularity despite recent market corrections. At the core of both technologies is the cryptographically secure digital ledger known as the blockchain. It’s a digital ledger where cryptocurrency transactions are recorded chronologically and publicly. Indeed, as the popularity of cryptocurrencies has grown, so has the banking industry’s interest in blockchain for fintech, with an increased and focused push on bank-backed blockchain projects. Some of the largest projects underway include the IBM-backed Hyperledger Fabric project, the Utility Settlement Coin, and R3’s blockchain consortium, signifying a growing acceptance in institutional policy to support blockchain growth. How does it work? […]
Best interests duty extends to cryptocurrencies
Financial advisers’ will need to be well versed in cryptocurrencies such as bitcoin and ethereum despite them not being considered financial products, a compliance consultant has warned. Speaking to ifa, Assured Support principal Sean Graham said the increasing popularity of cryptocurrencies poses a number of challenges for financial advisers. “The problem is that it’s mums and dads jumping into it at the moment, and from conversations I’ve had with advisers, they feel under pressure from clients who want to chase that growth or are asking them to do it,” he said. According to Mr Graham, while cryptocurrencies are not classed as financial products under most circumstances, advisers still need to […]
Claim your share of $4 billion
It was recently reported that the major banks cut savings interest rates over the holiday period, leaving some savings account earning as little as 0.5 per cent.* This ‘cash drag’ is needlessly costly to the public and they are urged to review how much money they have sitting in everyday bank accounts, earning low interest, and to consider alternative ways to grow their cash such as in term deposits. A term deposit allows investors to park their funds for a set period of time with an agreed fixed rate of interest paid at maturity. Investors can also choose the length of their term deposit and the bank or […]
Here’s one reason why bitcoin is so volatile
Why is bitcoin so volatile? The cryptocurrency captured headlines in the run-up to Christmas due to its rapid rise, climbing from around $5,000 at the start of November to a high above $19,000 in December. It fell back from its highs and a cryptocurrency “bloodbath” in recent weeks has seen it fall back to around $10,000. Moves of 5% or even 10% on a day are not unusual. Critics claim that the currencies extreme volatility make it not fit for purpose as a method of exchange and some retailers have in fact stopped accepting it as a result. But Andy Bryant, the European COO of bitcoin exchange BitFlyer, says that […]
Bank disrupter Prospa readies first pitch to fund managers
Privately-owned small business lender Prospa will start its search for new investors in coming weeks, when it fronts local and offshore fund managers ahead of a planned initial public offering. It’s understood Macquarie Capital and UBS’s equities desks have been booking fundies to meet Prospa management in Sydney, Melbourne, Auckland and Hong Kong during the first week of February, for a non-deal roadshow. Prospa’s expected to be pitched as the first true major bank disrupter in small business lending. It’s expected to tell fund managers it is the biggest unsecured lender to small business and also the biggest online lender to small business, with loan originations of more than $500 million. The meetings come ahead of […]
Chris Brycki says a cryptocurrency bust could be just what’s needed
The current cryptocurrency market is starting to look a lot like the dot-com bubble of 1997-2000, according to Chris Brycki, the founder and CEO of robo advice fund Stockspot. “Bitcoin and the crypto currency market has already experienced several hype cycles where prices rocketed before falling 80% to 90% as the technology and adoption caught up with inflated expectations,” says Brycki. “One happened in 2011 and then another two in 2013. We would be close to the end of another crypto hype cycle in early 2018.” After peaking around US$830 billion in January 2018, the total cryptocurrency market has fallen 33% in three weeks and is worth $US560 billion. That’s […]
Spending on blockchain technology to double this year to $2.1B
Led by financial services, industries are ramping up spending on blockchain distributed ledger technology at unprecedented rates; 2018 will mark the move from pilot programs to real-world rollouts. Spending by enterprises and other entities on blockchain networks is expected to reach $2.1 billion this year, more than double what was spent on the distributed electronic ledger technology in 2017. The U.S. will lead the world in blockchain investments, accounting for 40% of spending, followed by Western Europe, China and the Asia Pacific region (not including Japan), according to a new report from IDC. By 2021, spending on blockchain is expected to reach $9.2 billion, the report said. Last year was […]
The everyday Aussie is increasingly choosing a peer to peer personal loan
Peer to peer lending cuts out the middleman (the banks) allowing everyday Aussies to both invest and borrow from each other through a regulated platform.
