Cambridge University launches crypto research project with IMF and BIS

March 1, 2022 Coin Telegraph

BIS

Some regulators were recently concerned about the alleged lack of consistent and transparent data on crypto markets.

The University of Cambridge is collaborating with some of the world’s top banking institutions and private companies to introduce a new project targeting cryptocurrency research.

The Cambridge Center for Alternative Finance, or CCAF, has launched a research initiative aiming to bring more insights on the rapidly growing digital asset industry, the CCAF announced to Cointelegraph on Monday.

Dubbed the Cambridge Digital Assets Programme, or CDAP, the project is a public-private collaboration with 16 companies including public institutions like the Bank for International Settlements Innovation Hub and the International Monetary Fund. The initiative also includes banks like Goldman Sachs, financial giants like Mastercard and Visa, as well as major exchange-traded fund providers like Invesco.

Other participants include British International Investment, Dubai International Financial Center, Ernst & Young, Fidelity, the United Kingdom's Foreign, Commonwealth and Development Office, Inter-American Development Bank, London Stock Exchange Group, MSCI, and the World Bank.

As its core mission, the CDAP intends to enable evidence-based public dialogue about the opportunities and risks associated with the growing cryptocurrency adoption. The program will be focused on three main areas including crypto’s environmental implications, infrastructure, and digital assets, including stablecoins, central bank digital currencies, as well as cryptocurrencies.

According to the announcement, the program builds on the CCAF’s existing work in the crypto industry including the development of the Cambridge Bitcoin Electricity Consumption Index, CBECI. The CBECI is a widely-referred index to provide the global Bitcoin (BTC) mining hash rate distribution percentage among countries.

*Bitcoin mining map as of July 2021. Source: CCAF’s CBECI*

Other CCAF’s crypto research developments include the Global Cryptoasset Benchmarking Study series, designed to address ecosystem trends, inform regulation and policy discussion and others.

“The Cambridge Digital Assets Programme that we are launching today aims to meet the resulting need for greater clarity by providing data-driven insights through collaborative research involving public and private sector stakeholders,” CCAF executive director Bryan Zhang said.

According to CCAF digital assets lead Michel Rauchs, the CDAP will provide decision-makers with the objective analysis and empirical evidence that they need to navigate the digital assets industry.

As previously reported by Cointelegraph, some global regulators have been increasingly concerned about risks associated with the lack of standardized and trusted data in the cryptocurrency industry. In mid-February, the Financial Stability Board warned that the crypto market lacks consistent and transparent data and its linkages with the core financial system, which poses a significant risk amid the rapid crypto adoption.

Tribal partners with Visa to expand credit options for businesses

February 28, 2022 Coin Telegraph

Coin Telegraph

The initiative is focused on expanding credit and financing options for small- and medium-sized businesses in Latin America.

Crypto-focused enterprise payment platform Tribal Credit has partnered with Visa to expand credit and financing options for small- and medium-sized enterprises across Latin America, highlighting the growing synergies between traditional payment providers and the blockchain industry.

The partnership with Visa allows Tribal to issue business credit cards in local denominations and currencies across Latin America, including Mexico, Brazil, Colombia, Argentina, Chile, Peru, Panama, Uruguay and the Dominican Republic. A Tribal spokesperson informed Cointelegraph that the company’s initial focus is on providing this credit facility to the countries of Colombia, Peru and Chile.

While the Visa partnership is centered around providing small businesses with traditional financing solutions, Tribal’s technology also allows enterprises to utilize cryptocurrencies and blockchain technology to accept payments and transfer funds. In December 2021, Tribal partnered with Latin American crypto exchange Bitso and the Stellar Development Foundation to create a new enterprise cross-border payment service that utilizes Stellar’s USD stablecoin.

Tribal highlighted El Salvador’s Bitcoin Law and the growing acceptance of cryptocurrencies in Latin America as reasons to continue developing blockchain-based payment solutions.

https://t.co/rzNJRigp5u https://t.co/rzNJRigp5u
— Indira Kempis de I. (@IndiraKempis) February 22, 2022

Visa, too, has broadened its outlook on cryptocurrencies and has even developed a blockchain interoperability project for digital payments. The project, dubbed “Universal Payment Channel,” is researching blockchain interoperability with the aim of streamlining digital asset transfers across chains. In December 2021, the credit card giant announced a new crypto consulting service aimed at helping merchants and banks integrate digital assets into their business models.

Interestingly, Visa has also dabbled in the nonfungible token market after purchasing a CryptoPunk for $150,000 in August 2021. The same month, Visa published a white paper touting NFTs as a "promising medium for fan engagement."

Can crypto be used to prove financial independence for travel visas?

February 21, 2022 Coin Telegraph

Business

"There could be individual situations where a consulate might also accept other proof of assets, such as crypto-assets," said Laura Bernard of the European Commission.

For international travelers still able to cross borders amid an ongoing pandemic, using cryptocurrency to prove they have the means to sustain themselves abroad is a relatively new concept.

Many countries around the world are closed to visitors in an effort to protect their residents from COVID-19, but some have continued to allow students, retirees, and others seeking medium- to long-term stays through immigration. Under normal circumstances, entrants are sometimes required to present evidence of funds, both to show they have the necessary savings to provide for themselves and are less likely to work illegally.

The definition of this “Evidence of Funds” or “Proof of Funds” can be fluid, but is usually considered a bank statement, a line of credit, or simply showing an immigration officer cash holdings. However, of the 195 recognized countries on the planet, some have hinted they are open to accepting cryptocurrency as proof of financial sufficiency — as long as liquidity was established.

“In my 15+ years, I've never seen a consulate accept non-liquid financial documents, such as a holding portfolio, even if there are seven figures in the account,” said Evan James, COO of visa and passport processing company Peninsula Visa. “I do understand that crypto is liquid but I think it would need to present almost as a bank account [...] in the event an applicant would want to use a crypto account, the onus would be on them to make sure the consulate is comfortable with its liquidity.”

The United Kingdom's government website said that "Bitcoin savings" was unacceptable financial evidence for student visa applicants. One of the consulates from a Schengen member — which includes 26 European countries — told Peninsula Visa that it would only be willing to accept fiat bank statements at this time for proof of funds. However, other immigration departments hinted that there was nothing explicitly prohibiting travelers from using crypto to meet this requirement.

"There is no ban on using cryptocurrency as evidence of funds but applicants would need to provide evidence of the amount and ownership,” said Immigration New Zealand manager Marc Piercey. “Visa applicants are likely to find it easier to show more traditional forms of funds such as bank statements or credit card balances.”

Laura Bernard, press officer for the European Commission, reiterated that bank statements or proof of income was needed “in almost all cases,” but added that there wasn’t a universal policy for all EU member nations:

“As each visa application is assessed on a case-by-case basis, there is no one-size-fits-all rule regarding the proof of sufficient financial means. As a result, there could be individual situations where a consulate might also accept other proof of assets, such as crypto-assets, whenever this is justified by the particular circumstances of the applicant and the intended journey.”

Cointelegraph reporter Brian Quarmby, a HODLer who plans to relocate abroad, said he presented his crypto portfolio, salary history, and “a tiny bit of cash” to a consular officer as part of his application for a spousal visa. At the time of publication, the country is closed to short-term visitors and only recently reopened for a limited number of foreign students and business travelers.

Warren Buffett invests $1B in Bitcoin-friendly neobank, dumps Visa and Mastercard stocks

February 15, 2022 Coin Telegraph

Warren Buffett invests B in Bitcoin-friendly neobank, dumps Visa and Mastercard stocks

Bank of America

The "Oracle of Omaha" now has more companies in his portfolio that have direct/indirect exposure to Bitcoin and similar cryptocurrencies.

Warren Buffett's Berkshire Hathaway dumped a portion of its Visa and Mastercard holdings and increased exposure in Nubank, the largest fintech bank in Brazil that's also popular among the country's Bitcoin investors.

In a securities filing late Monday, the industrials conglomerate disclosed that it had purchased $1 billion worth of Nubank Class A stock in Q4/2021. On the other hand, it sold $1.8 billion and $1.3 billion worth of Visa and Mastercard stock, respectively, signaling a shift away from credit companies to gain exposure in their fintech rivals.

Buffett, the so-called "Oracle of Omaha," is popular for his cautious approach to investing, particularly in the market's hottest sectors such as fintech. The veteran investor had also downplayed emerging decentralized finance solutions like Bitcoin (BTC), ridiculing it as an asset that "does not create anything."

But Berkshire's new stake in Nubank shows that Buffett has been softening up to fintech lately. In detail, the firm had invested $500 million in the startup in July 2021. Its returns on the said investment amounted to $150 million in Dec. 2021 after Nubank debuted on the New York Stock Exchange (NYSE).

$NU Buffett-backed Nubank stock set for NYSE debut as IPO pricing valued company at about $41.5 Billion.

The company raised $2.60 Billion as it sold 289.15 Million shares in IPO. Berkshire bought 10% of the shares in the offering.#fintechnews pic.twitter.com/HTujZZvCtJ
— InvestingDesk (@InvestingDesk) December 9, 2021

So far, Buffett has not shown any intention to sell his position in Nubank.

The Buffett-Bitcoin connection

Buffett's additional investment into Nubank shows his acknowledgment of the fintech sector's underlying theme: the digitization of financial services, as well as his willingness to associate with companies that are involved in the cryptocurrency sector.

In detail, Easynvest, a trading platform that Nubank acquired in September 2020 has been actively offering a Bitcoin exchange-traded fund (ETF) since June 2021. Dubbed QBTC11, the ETF is backed by QR Asset Management and is listed on the B3 stock exchange, the second-oldest bourse in Brazil.

Thus, it appears that Nubank, which remains exposed to the emerging crypto sector via Easynvest, could use the additional revenue opportunities to benefit its top investor, Warren Buffett, despite his views that Bitcoin is a "rat poison squared."

That is primarily because of the growth of crypto-related investment products in 2021. Notably, their numbers doubled in the year, rising from 35 to 80, as per Bloomberg Intelligence data, while the total valuations of the assets they held reached $63 billion versus $24 billion at the start of 2021.

*Cash flowing into crypto funds doubled in 2021. Source: Bloomberg Intelligence*

Emily Portney, chief financial officer at Bank of New York Mellon Corp. — another firm in Buffett's investment portfolio, noted that digital assets could become a "meaningful source of revenue" for investment banking firms in the future as Bitcoin investment vehicles become more mainstream.

Meanwhile, Leah Wald, chief executive of crypto-asset manager Valkyrie Investments, predicted an increase in the capital flows into crypto-related investment vehicles, saying they have become a "phenomenon that's starting to take off." Wald:

"If you look at inflows from a volume perspective, not only has it been steady even with the price corrections that Bitcoin is notoriously famous for, but you're seeing a lot of institutions jump in."

Buffett's portfolio full of crypto-loving companies

While Buffett might not invest in Bitcoin directly, he is already gaining indirect exposure as companies in his portfolio foray into the crypto sector.

For instance, in October 2021, just a month before Bitcoin reached its all-time high of $69,000, fifth-largest U.S. bank, U.S. Bancorp, launched a cryptocurrency custody service for its institutional investment managers, noting that they witnessed an increase in demand from their "fund services clients" over the last few years.

Similarly, in another announcement made October 2021, Bank of America launched a cryptocurrency research initiative, citing "growing institutional interest."

Months before, BNY Mellon announced that it would hold, transfer, and issue Bitcoin and similar cryptocurrencies for its asset-management clients.

Announcing the creation of the BNY Mellon Digital Assets unit - A team dedicated to building the first multi-asset custody and administration platform for traditional and digital assets, including #cryptocurrencies. https://t.co/aZ7wMfAXqg pic.twitter.com/L54TFVpJNv
— BNY Mellon (@BNYMellon) February 11, 2021

"The Nubank investment can be tagged as Buffett's way of supporting the fintech/crypto world without taking back his criticisms of the past," asserted Greg Waisman, co-founder and COO of crypto wallet service Mercuryo, adding that the Berkshire boss is now backing the "digital currency ecosystem indirectly."

"Even an indirect exposure is bound to increase the positive sentiment that may push more investors into the space."

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Digital yuan transactions beat out Visa at Winter Olympics venue: report

February 10, 2022 Coin Telegraph

Business

Many of the National Stadium retailers allowing purchases with China’s CBDC were outside the Olympics' quarantine bubble for athletes, journalists, and staff.

On the day of the opening ceremony of the Beijing 2022 Winter Olympics, there were reportedly more transactions made in China’s central bank digital currency than those through Visa.

In a Wednesday report from the Wall Street Journal, a person familiar with the matter said transactions in digital yuan significantly outnumbered those of Visa on Feb. 4 at the Beijing National Stadium, also known as the Bird’s Nest — the location of the opening ceremony of the 34th Olympic Winter Games. However, many of the retailers allowing purchases with China’s central bank digital currency, the digital yuan — or e-CNY — were outside the Olympics’ quarantine “bubble” for athletes, journalists, and staff.

Bird's Nest on the night of Feb. 4, when the opening ceremony of the Beijing 2022 Winter Olympics was held. pic.twitter.com/QjUTOPa6Hr
— XIE Yongjun 解勇军 (@XIEYongjun_CN) February 4, 2022

According to the report, those within the bubble have the option of paying for goods or services with cash, Visa, and digital yuan, and there are many automated machines allowing people to exchange fiat currency for e-CNY. Coupled with the likely intention of reducing contact between individuals in an effort to prevent the spread of COVID-19, it seems the country’s digital currency is pulling ahead of Visa — at least in an environment with limited use cases that includes participation from Chinese consumers.

“Replacing cash with digital yuan for payment can effectively reduce direct contact between people and the risk of the spread of Covid-19,” reportedly said the Beijing Organizing Committee for the 2022 Games.

Though payments using mobile apps like Alipay, WeChat Pay, and others are generally accepted at many retailers in China, these methods aren’t allowed at the Winter Games due to an exclusivity contract with Visa. The credit card company has reportedly not pushed back against the digital yuan payment options, possibly because it is awaiting approval of a domestic license application to operate in China.

CNN reported on Jan. 31 that the first international test run of China’s CBDC is facing hurdles due to the pandemic, with officials limiting the number of people allowed to enter the country. Though China hasn’t released data on the number of digital yuan transactions or athletes using the CBDC, U.S. lawmakers have warned Americans participating in the games of the potential dangers of testing the digital currency, including threatening U.S. interests in cross-border payments.

At the time of publication, Cointelegraph was unable to find any reports of athletes claiming to have used the digital yuan for food or other essentials. The Wall Street Journal reported both the president of the Dutch Olympic Committee and a former Beijing resident now involved in television coverage of the games implied there was little point in using the digital currency when Visa was available. The Winter Olympics are scheduled to conclude on Feb. 20.

Payments Giant Visa Says Crypto-Related Transactions Skyrocketing in Fiscal First Quarter of 2022: Report

January 31, 2022 The Daily Hodl

Visa Partners With Over 65 Crypto Platforms — Crypto-Linked Card Usage Soars Despite Price Volatility

January 30, 2022 Bitcoin.com

Visa: One in Four Businesses Surveyed Plan to Accept Cryptocurrency Payments This Year

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Binance to finalize acquisition of Swipe, paving for CEO exit

December 31, 2021 Coin Telegraph

Binance

The exchange acquired a majority stake in Swipe in July 2020 as part of a broader effort to advance mainstream adoption of crypto payments.

Binance, the world's largest cryptocurrency exchange, announced Thursday that it will acquire the remaining outstanding shares of Swipe, a prominent crypto Visa card provider. Users of Binance will be able to spend their coins at over 70 million locations worldwide as a result of the acquisition.

On July 6, 2020, Binance initially announced the purchase of a majority stake in Swipe, stating that the new collaboration would help to further advance cryptocurrency adoption by bridging fiat and digital assets. Binance's acquisition of Swipe will allow it to compete with other retail crypto providers like PayPal and Mastercard that provide similar cryptocurrency-related services.

According to the news, Swipe has been identified as Binance's card program manager and technological platform. Swipe also collaborates with important partners to issue cards in authorized zones and markets.

Swipe's current CEO, Joselito Lizarondo, will step down once the acquisition is finalized, Binance confirmed.

Although Binance has been embroiled in regulatory controversy this year, it hasn't stopped the company from growing its presence through new acquisitions and expanding its services to new markets. More recently, the crypto exchange was approved for an in-principle license by Bahrain's central bank to operate as a crypto asset service provider as well as a cryptocurrency financing license in Canada as Binance Canada Capital Market.

In November, Binance CEO Changpeng Zhao revealed in a conversation with French Minister Cédric O that the exchange is establishing a $115 million initiative to increase blockchain and cryptocurrency technology across France and Europe. The cryptocurrency exchange recently partnered with the World Trade Center in Dubai to help the region develop into a global crypto trading center.