Your Cryptocurrency Newsletter for December 24, 2020

If you are interested in cryptocurrencies, this newsletter is for you. [img]  [Learn more about RevenueStripe...](   [Learn more about RevenueStripe...]( [img]( [FeedBinary Newsletter]( [Digital Banking: How DeFi Can Lower Costs For Everyone]( There’s often talk about how decentralized finance could eliminate the need for traditional bank but what if DeFi could enhance their digital services?Decentralized finance (DeFi) is often characterized as a movement that could unseat traditional banks once and for all — eliminating intermediaries and giving consumers levels of freedom and choice that they’re probably unaccustomed to.But there’s an alternative narrative, one that doesn’t pit DeFi against the banks. What if these innovative protocols could help provide desperately needed modernization to old-fashioned financial institutions enabling them to deliver better levels of service in a much more cost-efficient way? Even before digital assets burst onto the scene, many banks were struggling to adapt to the sudden, large-scale shift to online and mobile banking. Lenders that have existed for hundreds of years were suddenly having to invest countless millions of dollars in resilient websites and apps that would allow customers to access bank balances on the go. Yet at the same time, most brands felt obliged to maintain their expansive networks of branches to ensure that older or less technologically savvy clients weren’t left behind. Over the past decade, bank closures have accelerated. In the U.S., figures from the Federal Deposit Insurance Corporation suggest that 4,500 branches have shut their doors for good since 2010 — approximately 6% of the total. There have been even more closures in the U.K. From 2012 to 2019, there was a 22% fall in the number of banks on high streets. With vast numbers embracing digital banking (some out of necessity because their nearest branch is too far away), it has become financially unsustainable for all of these locations to remain open. Even if consumers accept that they’ll have to do without a friendly face behind a kiosk, the disappearance of physical banking has the potential to hurt them in the pocket, too. Branch closures have been compounded by a dramatic decline in the number of free-to-use cash machines in towns and cities worldwide. Especially in rural areas, this means many people have little choice but to use ATMs that fall outside of their bank’s network — and on average, this cost $4.64 per transaction in 2020. For those who only need to withdraw $100, this can be exceptionally prohibitive. The dearth of cash machines has become so extreme that, in one part of New Zealand, there’s only one ATM in the 418km that separate the rural communities of Wanaka and Hokitika. Good luck if you run out of gas and a petrol station doesn’t accept cards. The U.K. is also considering whether it should force retailers to offer cashback to all consumers — irrespective of whether they make a purchase or not. How can DeFi help? Given the staggering costs associated with using private cash machines, it’s little wonder that DeFi could offer an arresting alternative for consumers who want lower fees. Although Ethereum’s scalability issues did cause transaction fees to spike to almost $15 at the start of September, the vast array of blockchains and payment networks in the industry can help to drive these costs back down. With some platforms allowing transfers to be executed for fractions of a cent, banks are beginning to sit up and realize that they need to become more competitive… or risk becoming irrelevant in a rapidly evolving landscape. Taking a few leaves out of DeFi’s book could also help the sector overcome repeated technical hiccups that are unacceptable in a digital age. Seemingly every week, there are new headlines of banking apps that have suffered widespread outages — usually on payday — leaving consumers locked out of their accounts, and some finding their cards have been declined in supermarkets because they haven’t been paid. Blockchain outages are much rarer given their decentralized nature — and when a problem arises, it’s typically down to a centralized exchange rather than the technology itself. The advantages that DeFi can offer don’t end here. Figures from the World Bank show that banks were the most expensive route for remittances in low and middle-income countries — taking substantial chunks out of the earnings of people who need it most. To add insult to injury, ancient systems often mean there are long delays to payments, and it can be days before international transfers are finalized. DeFi can help reduce these costs and even eliminate them entirely, while moving funds from A to B in seconds. DeFi, at least for now, also has the upper hand when it comes to interest. The rates for saving offered by many financial institutions have taken a hit — and in some countries, 1% is a good deal right now. The peer-to-peer nature of these protocols also make it easier for borrowers to gain access to credit, whereas banks can be notoriously choosy about who they let onto their books. The Benefits For Banks Now you may be wondering given all of these high fees, wouldn’t banks prefer to trouser the profits? Not so, according to Cryptoenter. The blockchain infrastructure platform says it isn’t interested in competing with companies that already exist in the financial market. Instead, its top priority is helping banks to facilitate fiat and crypto transfers in real time and erase boundaries between the two worlds, through technology that can be integrated into existing systems. Well-designed, fiat-focused IT systems may only be 30% to 50% cheaper than brick-and-mortar operations, but by contrast, Cryptoenter says the cost of its infrastructure is “virtually negligible.” Given how more and more banks are beginning to explore blockchain for the first time, this can help eliminate the high costs of entering the market. The company’s goal is to provide DeFi services with banking-like levels of reliability — enabling banks to access new financial instruments without losing control over liquidity. According to Cryptoenter, its technology can deliver branchless banking through a network of connected retail outlets, delivering greater coverage in hard-to-reach regions. Remittances of any value can be transferred at a maximum cost of $1, and tests of its infrastructure suggest that it is capable of processing over 1,000 transactions per second — more if regions and countries are segmented into separate blockchain networks. The platform also offers market expansion offerings, which help encourage investments in cryptocurrency startups while giving backers the assurance that products will be released on time. Strict restrictions are also placed on how investor funds can be used, and recipients are obliged to offer regular updates on how projects are progressing to the community. At Cryptoenter’s core is Hyperledger Fabric, a blockchain that already counts IBM, Intel and major financial institutions such as JPMorgan, Visa, Swift and the Bank of England among its members. [Read Full News]( The post [Digital Banking: How DeFi Can Lower Costs For Everyone]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ [Tech Trends For 2021-Batteries And Bitcoin]( Almost everyone will be happy to see the curtain close on 2020 and hopefully enjoy a much better year in 2021. For investors, that means searching for new growth opportunities.Though technology will likely remain attractive going forward, it’s probably best to look beyond some of the usual suspects, like the FAANGs and Tesla TSLA, which already have steep valuations. Here are three tech trends to watch in the year ahead.  BATTERIES Now that Tesla has succeeded in advancing sustainable transportation, every other car company faces an existential threat if they don’t begin to play catch up. This is why some of the biggest names in the industry are investing so heavily in this area. But competitors have a lot of work to do, having already been lapped by Tesla. That gives Elon Musk the luxury to be aggressive in his other business lines. The one with the most upside is batteries. Tesla has already developed a battery cell that is not only several times more powerful than anything on the market but has the potential to be much more cost-efficient. If the company continues to make progress with its battery technology, it will be a game-changer, both for its current line of cars and a host of sustainable energy products. Even so, it wouldn’t be just unrealistic to expect Tesla’s stock to continue to grow at the same rate it has since late last year – it would be foolish. Therefore, consider companies that will ride its coattails, including other battery and EV makers, along with commodity and chemical companies involved with battery technology that will serve the company’s rivals. Many such firms are based in Asia. Domestic investors can access them through the Global X Lithium & Battery Tech ETF, which includes high-potential firms such as Korean-based LG Chem; Chinese battery-makers CATL and BYD (the latter of which also makes EVs); Panasonic in Japan and the U.S.-based chemical manufacturer Albemarle. CHALLENGERS TO BIG TECH It’s not so much that the FAANG stocks will collapse, but the continued attack on Big Tech, from both rivals and governments pursuing anti-trust suits, will open up investment opportunities with other firms. What’s more, individuals can only concentrate on one technology platform at a time, and there are now more new attractive platforms than ever.Many people, for instance, have begun to use Twitter to search for news instead of Google GOOG and Facebook is struggling to fend off the rise of TikTok as the go-to social media channel among young people. Meanwhile, Disney Plus and HBO Max are shaping up as worthy foes for Netflix NFLX in the streaming wars. Beyond that, video games are increasingly becoming social media platforms. If Epic Games can triumph in its ongoing battle with Apple AAPL over gatekeeper fees, it could have a profound impact on how we access mobile-based software-as-a-service businesses. Even Amazon AMZN is vulnerable. Walmart WMT, the biggest retailer in the world, has made real headway in its digital efforts with the successful launch this year of its Walmart+ offering.Also, Chewy.com has emerged as an e-commerce leader in pet-focused retail goods, while consumers shopping online for luxury furniture can find better items buying directly from RH (formerly Restoration Hardware). And Shopify allows more small shops to sell online without relying on Amazon, which competes with such brands. BITCOIN Bitcoin has spiked again this year, up over 200%. For the first time, major financial firms are validating it, while many large, institutional investors are beginning to take the cryptocurrency more seriously than ever before. The CEO of BlackRock BLK, the world’s largest asset manager, said recently that Bitcoin one day could evolve into a global market asset. Payment companies like Square SQ and PayPal PYPL have implemented protections to offset the inherent risks associated with accepting an asset that has historically endured volatile price fluctuations and traded on exchanges that have suffered embarrassing cybersecurity breaches. Square perhaps has the most potential, thanks to its relationships with thousands of merchants, as well as the over 20 million who use its Cash App, where consumers can now buy Bitcoin.This sets the stage for Amazon and Shopify to follow suit and allow Bitcoin transactions eventually. When that occurs, it will create a clearer path toward a real economic system revolving around Bitcoin.All of this will lead to steadily rising and more stable prices. The bottom line is that, as a long-term portfolio diversifier, Bitcoin finally makes sense for many investors. CAVEATS There is no denying that 2020 brought the unexpected, to say the least. So, although I believe very strongly in battery technology, Bitcoin and challengers to the FAANGs, I also recognize that literally anything could happen in 2021. [Read Full News](  The post [Tech Trends For 2021-Batteries And Bitcoin]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ [Cryptocurrency becomes Mainstream and New Digital Standards arrive Fintech Predictions for 2021]( In recent years we’ve seen some significant shifts in the financial sector, with newer businesses using technology to challenge more established players.Much of this has centered around the use of blockchain, although cryptocurrency still hasn’t entered the mainstream. What do experts think we’ll see in the fintech space next year? Benoit Grangé, OneSpan’s chief technology evangelist says, “A massive transformation is occurring across digital and mobile channels in how banks engage with their customers and use AI. Banks will combine machine learning with biometrics to provide new experiences, such as facial and fingerprint verification instead of passwords. One example we’re already seeing is banks leveraging machine learning to detect and read physical passports to allow for ID scanning. Customers use their smartphones to scan a government-issued ID and then take a selfie. The banks then leverage biometric facial comparison technologies with liveness detection to verify that ID is authentic and unaltered, confirming the individual’s identity.” Grangé also believes that banks will start to accept new currencies, “Because of COVID-19 and the move toward a cashless society, banks will begin to accept other forms of currency like Bitcoin and other cryptocurrencies. COVID-19 brought on a fear of handling cash and a rise in credit card fraud, which prompted banks to begin looking into accepting alternative, safe and secure means of currency.” But he sees this being subject to more regulation too, “As digital banking platforms have experienced massive growth, many governments and industry bodies worldwide have begun to look to Central Bank Digital Currencies (CBDCs) and cryptocurrencies in terms of what they might add to the financial sector. This has resulted in new and refreshed conversations around the possible uses of CBDCs and cryptocurrencies.” MovoCash CEO Eric Solis sees new digital banking standards coming into play too, “Technologies including artificial intelligence (AI), machine learning (ML) and Blockchain have been at the forefront of disrupting the banking industry for years. The pandemic has further exposed the holes in the banking industry as they rely heavily on dated legacy systems, leaving them vulnerable to fraud. This will be the year that banks will be forced to implement a standardized body of standardized regulations to regulate the emergence of technologies in digital payments.” He also predicts the rise of a new model of global banking, “The idea of a global banking system takeover has been underway for quite some time. COVID has further accelerated the creation of a new global banking system that will transform banks into a digital bank platform controlled by a new global currency. For a global currency to do this, it must be a trackable currency to eliminate fraud. This transformation will open new revenue streams, reduce friction and offer consumers new ways to bank.” Coin Cloud CEO Chris McAlary says, “Virtual currency wallets will be pre-installed on every mobile device by the end of 2021. Mobile wallets — Apple Pay, Google Pay and/or Samsung Pay — have been found natively on nearly every modern mobile device for years, so it’s safe to say that digital currency wallets are next. This will be made possible through the adoption of virtual currencies by big players like Facebook, PayPal, Venmo, Square’s Cash App and Visa partnerships to enable digital currency payments at retail. You might already have a bitcoin wallet on your device without even knowing it.” He foresees more widespread adoption of cryptocurrency too, “Widespread consumer adoption of digital currency will double, reaching at least 700,000 Bitcoin transactions per day. Consumers are adopting digital currency at record rates, both as a medium of exchange and a store of value. They are looking to integrate digital currency into their everyday lives, including being able to pay for goods and services, in stores as well as online. At the end of 2020, there were over 350,000 daily Bitcoin transactions recorded worldwide. I predict that will double in 2021.” [Read Full News]( The post [Cryptocurrency becomes Mainstream and New Digital Standards arrive Fintech Predictions for 2021]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ ------------------ Connect with TheFeedBinary on Facebook and Twitter [fb](  [tw]( ------------------ You received this email because you operate or create content for a website/service and based on your website it seemed like this could be important information to you and your users. FeedBinary daily newsletter is managed by [Postbox Consultancy Services Pvt. Ltd.]( C-4/5, IBD Emporia, Kolar Road, Bhopal, Madhya Pradesh, INDIA, 462042 Want to change how you receive these emails? [Update your preferences]( or [Unsubscribe](