LEARN. THINK. EXPLORE.
  • Home
  • class sampler
  • Spring 2023
  • preview Fall 2023
  • FAQ
  • About
  • Blog
  • Contact

Learning Outside the Box

"GLOBAL ISSUES, LEADERSHIP CHOICES":

9/15/2021

0 Comments

 
As banks move into cryptocurrency, are consumers and global financial markets at risk? Regulators are scrambling to try to figure it out.

"BlockFi, a fast-growing financial start-up whose headquarters in Jersey City are across the Hudson River from Wall Street, aspires to be the JPMorgan Chase of cryptocurrency. It offers credit cards, loans and interest-generating accounts. But rather than dealing primarily in dollars, BlockFi operates in the rapidly expanding world of digital currencies, one of a new generation of institutions effectively creating an alternative banking system on the frontiers of technology. 'We are just at the beginning of this story,' said Flori Marquez, 30, a founder of BlockFi, which was created in 2017 and claims to have more than $10 billion in assets, 850 employees and more than 450,000 retail clients who can obtain loans in minutes, without credit checks. But to state and federal regulators and some members of Congress, the entry of crypto into banking is cause for alarm. The technology is disrupting the world of financial services so quickly and unpredictably that regulators are far behind, potentially leaving consumers and financial markets vulnerable. 

"
In recent months, top officials from the Federal Reserve and other banking regulators have urgently begun what they are calling a 'crypto sprint' to try to catch up with the rapid changes and figure out how to curb the potential dangers from an emerging industry whose short history has been marked as much by high-stakes speculation as by technological advances. In interviews and public statements, federal officials and state authorities are warning that the crypto financial services industry is in some cases vulnerable to hackers and fraud and reliant on risky innovations. Last month, the crypto platform PolyNetwork briefly lost $600 million of its customers’ assets to hackers, much of which was returned only after the site’s founders begged the thieves to relent. ... BlockFi has already been targeted by regulators in five states that have accused it of violating local securities laws. Regulators’ worries reach to even more experimental offerings by outfits like PancakeSwap, whose 'syrup pools' boast that users can earn up to 91 percent annual return on crypto deposits. ... The cryptocurrency banking frontier features a wide range of companies. At one end are those that operate on models similar to those of traditional consumer-oriented banks, like BlockFi or Kraken Bank, which has secured a special charter in Wyoming and hopes by the end of this year to take consumers’ deposits and custody of their cryptocurrency holdings — but without traditional Federal Deposit Insurance Corporation insurance. ... Lawmakers and regulators are worried that consumers are not always fully aware of the potential dangers of the new banklike crypto services and decentralized finance platforms. Crypto deposit accounts are not federally insured and holdings may not be guaranteed if markets go haywire. People who borrow against their crypto could face liquidation of their holdings, sometimes in entirely automated markets that are unregulated." 
www.nytimes.com/2021/09/05/us/politics/cryptocurrency-banking-regulation.html
0 Comments



Leave a Reply.

    Blog sharing news about geography, philosophy, world affairs, and outside-the-box learning

    This blog also appears on Facebook:
    www.facebook.com/LearningOutsideTheBox.LearnThinkExplore

    Archives

    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016

    Categories

    All
    Biogeography
    Book
    Cartograms
    Climate
    Contests
    Cultural Geography
    Demographics
    Economic Geography
    Extraplanetary Geography
    Geography Technology
    "Global Issues..."
    Historical Geography
    Human Geography
    Language Geography
    Miltary Geography
    Out Exploring
    Outside The Box
    Philosophically Speaking
    Physical Geography
    Political Geography
    Quiz
    Science Fiction
    Scifi
    U.S. Geography
    Video/interactive
    World Geo_Africa
    World Geo_Asia
    World Geo_Europe
    World Geography
    World Geo_Latin America
    World Geo_Mid.East
    World Geo_N America
    World Geo_Oceania
    World Geo_oceans
    World Geo_polar
    World Geo_S America

    RSS Feed

Proudly powered by Weebly
  • Home
  • class sampler
  • Spring 2023
  • preview Fall 2023
  • FAQ
  • About
  • Blog
  • Contact