What to expect from Bitcoin and Cryptocurrencies in 2019?

In a problematic forecasting exercise, we have set out solid prospects for the “crypto” sector in 2019.

Here are four perspectives that we felt were solid for the future of the sector.

1. Implementation of regulation

The G20 has decided not to hinder the development of the sector, and several strongholds are emerging. International specialists welcomed the possibility for a start-up wishing to raise funds via cryptocurrencies to apply for a visa from the Financial Market Authority to reassure its investors.

2. Institutional investors now have the right tools

Until now, traditional funds have been reluctant to invest in crypto-assets, for obvious security reasons. In 2018 alone, the equivalent of at least $870 million disappeared from trading platforms. This observation has prompted several specialized companies to develop secure custody solutions, such as Coinbase since July.

Fidelity Investments, one of the world’s largest asset managers (27 million clients and $7,200 billion under management), will launch its solution in 2019, as will the New York Stock Exchange via the future Bakkt platform on January 24. Of note is the presence in Bakkt’s capital of Microsoft Ventures, Naspers Capital (which owns 31% of Tencent) and a partnership with Starbucks. One of the keys to democratization lies in the presence of trusted actors.

3. Multinational companies are working on crypto solutions

Bitcoin and other cryptocurrencies continue to be considered criminal activities. These exaggerated allegations are exaggerated in view of the many official reports published on this subject (3 to 6% of all transactions according to Europol). But it will still take time to twist this preconceived idea.

The salvation may come from the initiatives of large companies that are currently developing cryptomarket-based solutions. Bloomberg reported in mid-December that Facebook was working on a homemade cryptocurrency that would be used to send money to each other via WhatsApp.

4. Bitcoin, a haven for the next financial crisis?

How will Bitcoin behave in the event of a major financial crisis? This question is on everyone’s lips, while many economists are talking about the imminent turbulence (US student loan bubble, rising interest rates, sovereign debt crisis, etc.). Bitcoin appeared in the wake of the market collapse in 2008, surfing in particular on the idea that banks would not be responsible enough to handle their customers’ savings properly.

In 2018, that Bitcoin became an attractive reserve of value in Venezuela, according to statistics from LocalBitcoins, a site that measures Bitcoin use. Local currency inflation is expected to exceed 1,000,000% according to the IMF. Mining initiatives have also taken place in Iran, which is now deprived of access to the international financial system with the restoration of US sanctions. In the event of a new global crisis, the decentralized nature of the Bitcoin protocol could appeal to some actors.

Brexit: European finance moving into a new era

Banks are anticipating the decline of the City and the rise of other financial centers.

Without really believing it, the primary European banks had been preparing for more than a year for the exit from the European Union voted by the British. But the Brexit victory took the City and the major international financial centers by surprise. The financial sector is one of the industries that will be most affected. Overview of the major upheavals to be expected in European finance.

What will happen to La City?

english banksLondon is widely expected to remain an important financial center, but its star is likely to fade. The United Kingdom is now the largest financial center in the European Union, accounting for almost 25% of its financial services and employing 2.2 million people in the financial industry. However, London’s disaffection will depend on the United Kingdom’s exit negotiations with the European Union.

The main risks for La City is to lose its European “passport” and its euro “clearing” activity – and therefore investors. London is indeed an important clearing center in euros, a system that provides financial security for transaction processing. The European Central Bank does not like this situation since it cannot exercise control over these activities, which potentially pose a systemic risk to monetary union. In 2011, the Frankfurt institution had tried to repatriate these clearing houses. But the City had won its case before the European courts. By leaving the European Union, London will no longer be able to invoke the benefit of belonging to the common market to counter a future takeover of the ECB. For the boss of a French CIB “, repatriation of the euro clearing could greatly weaken the City.”

Which financial centers to take over?

For financial analysts, “no financial center is likely to replace London.” For Société Générale boss Frédéric Oudéa, European finance will become more “multipolar.” Who, from Paris, Frankfurt, Luxembourg or Dublin will benefit most from the expected downgrading of London? Everything will depend on the decisions of investors and financial groups to relocate certain activities to the EU. Dublin and Luxembourg are more attractive from a tax point of view than Paris, which can, however, count on several assets: the presence of large groups active on the markets or a leading asset management center, and real estate or transport capacities. While taking note, with regret, of the decision of the British, the Place de Paris is swamping its weapons.

Are French banks ready?

“We are ready to manage the emergence of the coming days and also to adapt to this new institutional framework,” assured Frédéric Oudéa on Friday morning. After having suffered a violent stock market shock, French banks still have to build their post-Brexit future. Across the Channel, they have just under 3% of their total workforce, concentrated in corporate and investment banking (CIB) activities. Will they be partly transferred to the mainland? For the moment, no French bank has revealed its game.” This will depend on the negotiation of Brexit and the behavior of our customers,” explains one banker.

In the shorter term, the consequences of Brexit on the markets could also plummet the results of the French groups’ financing and investment banks in the second quarter. Volatility on the markets could continue, says Romain Burnand, manager at Moneta, everything will depend on political responses, the impact of Brexit on the economy…”.

What are the consequences for banks operating from London?

It is quite possible that, following its negotiations with Brussels, the United Kingdom will lose its European passport, which allows a credit or payment institution authorized in an EU country to operate in the various single market countries. From then on, the major American or Swiss banks, or even fintech, which used London as a bridgehead to radiate in Europe, will have to obtain approval in an EU country.

Potential Challenges of Financial Technology and How to Solve Them

Financial technology or Fintech and cryptocurrency are taking over the world. Everyone is trying to improve their financial systems and get them digital. Almost everything else in the world is digital, so why not financial systems as well? There are a few kinks that need to be sorted out and improved and we’re sure that they will be addressed in no time. If you are interested in taking on Fintech for your business, take note of the challenges and how you can solve them.

Security Concerns

The first challenge is security. Even though cryptocurrency platforms are secure and decentralized, hacking remains a problem. Digital financial systems will always carry the potential risk of hacking. This is obviously a problem as any business that holds financial information of clients, want to keep that information secure and private. Fintech companies, like Next Bank Asia, are putting systems and precautions in place to ensure the security of these types of information.

Liability Concerns

If any private information of any kind comes to light, Fintech companies can be held liable. This will poorly influence the company’s reputation and trustworthiness. This is also a concern for the companies making use of the technology. Most Fintech companies, like Next Bank Asia, take this concern very seriously and take extra safety precautions to ensure that there is no breach of confidentiality.

Denial of Service Attacks

This is a concern for most digital financial services and companies. People are taking chances and claiming that transactions never happened. This is becoming a huge problem across the world. Fintech companies can implement measures and protocols to address these potential issues and track the transactions to check whether such claims are true or not.

Any form of digital information runs the risk of becoming public or hacked. Every company and individual who use these systems must take their own precautions to ensure the safety of their information and their money.

4 Types of Cryptocurrencies in Use in 2017

Cryptocurrencies have become quite a big thing all across the world. A cryptocurrency is basically a digital form of money or unit of exchange. You can use these currencies to do online transactions without real money ever changing hands. It is fast, secure, and very convenient. Many businesses have also gotten on board and accept or trade in cryptocurrency. The four best-known cryptocurrencies are:

1. Bitcoin

Bitcoin is by far the most well-known type of cryptocurrency in the world. It has become a household name and people all over the world make use of this system. This was also the first cryptocurrency that came on the scene in 2009. It was developed by an anonymous individual or group only known as Satoshi Nakamoto.

2. Ripple

Ripple is a distributed ledger system that keeps track of transactions. It can successfully track different kinds of transactions and is very helpful to banks and other financial institutions. It can be used to track more than just the cryptocurrencies.

3. Litecoin

Litecoin is the smallest of the four cryptocurrencies on this list. It is the newest and also the fastest in terms of development and improvement. It moves quickly when it comes to improving speed and new features.

4. Ethereum

Ethereum is second to Bitcoin as the most used cryptocurrency. It was developed in 2015 and has a large market capitalization in the billions. It has had some issues with hacking and such things, but regardless of that, the currency is still popular among users.

Cryptocurrencies are being used for various transactions. People are using them to invest, play the markets, make an online purchase, etc. It is a fast and convenient way of exchanging money without a centralized system.

Benefits of Financial Technology and Cryptocurrency Transactions

There are many things being said about financial technology and cryptocurrencies – both good and bad. Many people have embraced it and others are still skeptical. People like to play it safe when it comes to their hard-earned money. So, if you are wondering whether these systems are for you, we have some benefits to share. It also helps to realize that banks have been making use of financial technology for years. Many of us use online and cell phone banking. These systems work on the same principle, just without a single entity running it.

Better financial situations in businesses – Fintech companies and the technology that they offer can revolutionize the way businesses run their finances. These Fintech companies come up with innovative solutions to help businesses have better cash flow and stabilize their funding systems. It can even help them manage their working capital better.

Better payment systems – Financial technology can improve a business’ payment systems as well as the efficiency and accuracy of invoicing and collections. It can help improve customer relations in all aspects. When the customer has a good experience with fast payments and quick resolution of problems, they tend to return.

Mobile devices increase convenience – Financial technology allows transactions to take place through mobile devices like tablets and smartphones. This increases the convenience and efficiency of transactions for the customer. With mobile connectivity, a business can streamline all its systems, integrate different accounts, and improve the overall customer experience.

Cheaper advice – These new financial technology systems enable robot-advice. This means that people can easily get advice and information on finances and investments without having to pay expensive fees to the highest qualified consultant.

It seems that Fintech is here to stay and will surely keep improving and bringing us new and improved systems to work with. Fintech could be the answer to your business’ cash flow or efficiency problems. So, approach your local Fintech company and see how they can help you move up in the world.