Digital Bytes by Team Blockchain Radio; Powered By Cyber.FM

Blockchain explorers: why do they matter?  - blockchain explorers are tools similar to search engines (e.g. Google) for blockchain data, offering insights into transactions and more. Whilst they provide transparency, privacy risks still exist but, alongside transparency, smart contract insights and real-time alerts are other benefits. Notable explorers include Etherscan and Blockchain.com, allowin...

PayPal’s new stablecoin means it can offer payment services and products  - PayPal’s USD (PYUSD) represents a significant shift beyond revenue generation, so positioning the company as a key player in the evolving digital economy. This move aims to go beyond conventional payment processing whereby facilitating transactions in emerging areas such as the metaverse and digital equities. PayPal’s new...

Dr Stephen Castell responds to the Law Commission's final report on digital assets, contending that the Commission has erred by proposing a new legal status for digital and crypto assets that is unnecessary and scientifically incorrect. He argues that the Commission's attempt to distinguish between different sets of algorithmic data as a new category of property is a technical fallacy and...

Hong Kong had a miserable isolating lockdown which exacerbated the perception of its decline as a financial centre, after Beijing had been asserting its political authority and boosting alternatives in mainland China. Beijing has changed its mind, now seeing Hong Kong as a useful asset at a difficult economic time especially in its one-country two-systems format - for finance at least. Hong Kong i...

Embedded banking/finance disrupts global brands  - embedded banking and finance is enabling global brands to offer financial services/products and highly profitable income streams to their customers via an App. Although this presents challenges to traditional banks, it offers the potential for those such as Elon Musk to realise his dream and create a super-App whilst making financial services more...

As the Law Commission moves from consultation to detailed proposals on the legal treatment of digital assets, the focus switches to the lawmakers and regulators. Let us hope that political expediency does not take over and we see laws that reflect a typically well-informed, insightful and forward thinking proposal… Full Article Here

DeFi and privacy - balancing transparency and data protection  - DeFi, which stands for decentralised finance, is growing fast and, according to  Defillama , as of June 2023 it has a total locked value of $41.4 billion. DeFi offers a range of traditional financial services, such as interest-bearing accounts, loans, borrowing and prediction markets, in an alternative, decentralised way. For DeFi to...

Using AI to help decide or even give comfort as to the appropriateness of any investment (including Bitcoin) has to be treated with care. There has been considerable interest in AI with some claiming the technology will lead to an improvement in productivity, but potentially numerous jobs are being impacted and people being made redundant.

Blockchain and intellectual property  - as blockchains are increasingly being used in commerce, no doubt they will be utilised for how IP is handled. The advent of AI generative assets such as music, art, prose and the growth of the metaverse will all create additional challenges where the use of blockchain may be a useful support. In the meantime, the use of blockchains can potentially facilitate...

The use of blockchain technology, coupled with other technologies such as AI, IoT, big data, machine learning, etc, offers the promise of improved efficiency, lower costs, automation and far greater levels of transparency. But whilst MiCA offers some clarity for crypto markets in the EU, clearly more regulatory guidance is required to further encourage the expansion of greater tokenisation. Full A...

SEC v Ripple: a watershed moment?  - the recent court ruling that XRP is deemed to be a security if sold to institutions but  not  a security if sold to staff, retails investors and programmatically to exchanges, raises more questions than answers. Whilst the price of XRP and digital exchanges such as Coinbase have risen, are we to see the crypto market’s hopes dashed as this court decision is ove...

Almost weekly, there are far too many crypto events happening, in all sorts of exotic places around the world. But there are a few 'go-to' events, of which Consensus is one. But how do you benefit the most from them, and is Consensus really one of the go-to events worth visiting? Full Article Here

With the rising price and public awareness of Bitcoin, investors have been drawn to crypto asset markets by the promise of significant returns compared to those paltry yields often on offer from cash, bonds and other traditional asset classes. The hyperbolic growth in cryptos’ value has led investors and academics to examine more carefully the interplay between risks and returns and how cryptocurr...

IOSCO: the first global crypto regulatory framework  - IOSCO's global crypto regulatory report aims to provide comprehensive guidelines for regulating crypto assets. The framework focuses on client protection, market standards, conflict management, and more. It has garnered unanimous support from the IOSCO board and aims to create uniform regulations among national regulators. Eyebrows are cur...

As a digital form of central bank-issued fiat currency, central bank digital currencies (CBDCs) have seen an explosive growth in interest over the past four years with each jurisdiction having its own unique blend of policy drivers and motivations. This article explores a few of the key policy drivers for the introduction of a retail CBDC (in the UK, specifically), which, when extrapolated more br...

The role of blockchain in modernising stock markets  - the way in which financial organisations and private clients buy and sell stocks and shares has evolved over the years, from open outcry to electronic dealing. Once again, the infrastructure for stock markets is set to potentially be transformed as a direct result of blockchain technology. The promise is to make stock markets transparent, fast...

Law Commission Final Report on digital assets  - the Law Commission’s Final Report on digital assets concludes that the common law of England and Wales is ideally suited to accommodate them. The report provides detailed analysis of why this is the case, as well as suggesting narrow and targeted statutory reform to confirm the existence of a new category of property and to clarify the status of suc...

How blockchain technology and DLTs are changing financial markets  - whilst looking to be efficient as possible and drive the best returns for shareholders, regulated companies need also be mindful to preserve high risk management and compliance controls. Blockchains and DLTs are increasingly being seen as tools to help meet those goals which are often seen as juxtaposed and, in doing so, help reg...

The importance of effective KYC and AML processes, procedures and staff to monitor such activity is of paramount importance for regulated firms. As more jurisdictions embrace cryptocurrencies   those firms looking to offer crypto products and services will need to follow existing best practices or risk fines and possible bans. Full Article Here

Borrowing and lending in DeFi  - without a doubt DeFi platforms present challenges to regulators, all the while empowering users and helping to make traditional financial services (such as borrowing and lending) more inclusive. The disintermediation that DeFi ensures can enable lower borrowing costs and higher rates for lending - but who is accountable in the event that something goes wrong? Whils...

CBDCs are here to stay and will likely form an important part of the future payments landscape. 2023 looks as if it could well be a pivotal year for CBDCs, with a number of central banks looking to progress work on a retail and/or wholesale CBDC. In the UK, the Bank of England is currently consulting on the introduction of a digital pound and judges it likely that a digital pound will be needed in...

Stablecoins are gaining traction as a new ‘digital asset’ in their own right. At the same time, the traditional bank-dominated payments model is being increasingly challenged by non-bank, fintech-native PSPs (payment service providers). What is the potential opportunity presented by - and role of - stablecoins in effecting positive change in cross-border payments models and workflows? Full Article...

The crypto ETPs market continues to grow globally. These financial products allow investors to gain exposure to the cryptoassets markets in a regulated manner and benefit from liquidity (and safeguards) offered by traditional trading venues. The advent of a comprehensive digital framework for digital and crypto instruments, such as those proposed in the EU and UK, will likely spur further interest...

The growing buy-in of tokenization in the financial industry has encouraged the formation of strategic partnerships. We examine some of the  highlights and dynamics amongst participants in three networks: Fnality, the newly formed Canton Network, and the DTCC`s Project Ion. Full Article Here

The lure of digital cash, but do you know what you are buying?  - there has been considerable interest in CBDCs and stablecoins but in reality do you really know, let alone understand, what the backing of USDT, the world’s biggest stablecoin, is? The company that issues USDT is Tether and it has just announced in the last quarter that it made $1.44 billion; but how, and why, does it only have 67%...