Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6998399678799052800
Federal Reserve Bank of New York to advance #research on #asset #tokenization and the future of #financial #market #infrastructures in the U.S. as money and banking evolve.: https://lnkd.in/e6CFDiM2 :
The program would explore the feasibility of an “interoperable network of central bank wholesale digital money and commercial bank digital money operating on a shared multi-entity distributed ledger” on a regulated liability network.
#FutureOfFinance: FutureOfFinance.org :
#FTX #CryptoCurrency #Exchange: #Future Of #Crypto #Regulation
https://lnkd.in/eRf6iubE
Bankman-Fried, widely known as #SBF, was eager for #regulators in the United States and elsewhere to recognise #crypto #exchanges like FTX. His company lobbied lawmakers and watchdogs to rewrite #rules to include #digital #assets.
#FTX’s demise undermines his arguments. As reported, #SBF secretly transferred $10 billion in customer #funds to his #hedgefund, #Alameda Research, and that at least $1 billion has vanished. While that’s a tragedy for FTX’s customers, it’s something of a relief for #regulators, which have been struggling to work out where cryptocurrency firms fit. As the Financial Stability Board (FSB) pointed out last week, #cryptoexchanges have evolved to offer #trading in #digital #coins as well as #clearing, #settlement, #lending, #custody and #brokerage services. Few mainstream #financial #firms would be allowed to combine such a range of activities. Many #crypto #platforms also invest in their rivals, another #regulatory #taboo.
The FSB recommends that watchdogs treat #cryptofinance like other institutions under the mantra “same #activity, same #risk, same #regulation”. FTX’s collapse will help regulators hold firm. As the Bank of International Settlements argued earlier this year [ https://lnkd.in/eRU-hJhf ], #central-#bank #money can perform the #same #functions as #crypto “except, perhaps, for #moneylaundering and #ransomware #attacks.”
So far, the #fallout from the #FTX #debacle seems limited to the #crypto world. If that remains the case it will be because #regulators have worked hard to stop #digital #assets from seeping into #mainstream #finance. The #BIS reckons that, among banks that reported having #cryptoassets, they accounted for just 0.14% of total exposures at the end of last year. But this could have changed quickly if SBF’s had continued their campaign. A former deputy governor of the Bank of England noted that regulators have tended to ignore #unregulated corners of #finance until they become systemically dangerous. But “by the time something is obviously a tangible threat to stability it’s got massive lobbying power”. FTX’s example will embolden regulators to make harsher demands of crypto firms. In that sense, he’s done the financial system a favor.
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