Stay up to date with the latest news from FinTech! This week we bring you news on regulations, legislation, partnerships and more. Happy reading!
The Fed raises rates by another three-quarters of a percentage point and promises higher rates to fight inflation (CNBC)
The Federal Reserve raised its benchmark interest rate by another three-quarters of a percentage point on Wednesday and signaled it would continue raising rates well above current levels. In an effort to reduce inflation, which is nearing its highest level since the early 1980s, the central bank raised the federal funds rate to a range of 3%-3.25%, the highest level since early 2008, after a third consecutive 0.75 percent move points. Stocks have fluctuated since the announcement, and the Dow Jones Industrial Average has fallen slightly recently. The market fluctuated as Fed Chairman Jerome Powell discussed the outlook for interest rates and the economy. Traders were concerned that the Fed was remaining more hawkish for longer than some expected. Forecasts at the meeting indicated that the Fed expects to raise rates by at least 1.25 percentage points at its remaining two meetings this year. Read more
US Congress’s stablecoin bill bans tera-like coins (Financial review)
The Stablecoin Regulation Act being drafted in the US House of Representatives would include a two-year ban on coins similar to terraUSD, the algorithmic stablecoin that collapsed earlier this year. Under the latest version of the bill, it would be illegal to issue or create new “endogenously backed stablecoins,” according to a copy seen by Bloomberg. This definition will apply to stablecoins that are sold as such, convertible, redeemable, or redeemable for a fixed amount of monetary value, and that rely solely on the value of another digital asset from the same creator to maintain their fixed price. Read more
13 major European fintech companies have launched the Open Finance Association (Payers)
A group of 13 fintech companies, including the likes of Token, TrueLayer, Plaid, Worldline or Yapily, launched the Open Finance Association (OFA) to further open up financial data and payments through API technology. As the association’s representatives explained in the launch press release, with the introduction of PSD2 in 2016, consumers and businesses for the first time gained the right to access their payment accounts through trusted third-party providers (Open Banking). Open Finance is presented as the next step in the development of Open Banking and promises to give consumers and businesses greater control and visibility into their economic lives. Read more
New EU cybersecurity rules ensure safer hardware and software products (European Commission)
Yesterday the Commission presented a proposal for a new Cyber Resilience Act to protect consumers and businesses from products with inadequate security features. The first EU-wide legislation of its kind, it introduces mandatory cybersecurity requirements for products with digital elements throughout their entire lifecycle. The law, announced by President Ursula von der Leyen in September 2021 during her State of the European Union address, and based on the EU Cybersecurity Strategy 2020 and the EU Security Union Strategy 2020, ensures that digital products such as wireless and wired products and software are safer for consumers across the EU: in addition to increasing the responsibility of manufacturers, requiring them to provide security support and update software to address identified vulnerabilities, this will allow consumers to have sufficient information about the cybersecurity of the products they produce. buy and use. Read more
American venture capital firm ffVC opens fund focused on Ukraine (Fintech Magazine)
Venture capital firm ffVC has launched a Ukraine-focused fund to support the country in its economic recovery, insisting it is not for charitable purposes. The American venture capital company ffVC announced the launch of a new specialized fund that will invest exclusively in Ukrainian founders and startups. Named the ff Blue & Yellow Heritage Fund, after the colors of the Ukrainian flag, the fund represents the next step in ffVC’s existing investments in Central and Eastern Europe (CEE). In 2019, he opened an office in Warsaw and led the seed round for Kyiv-based Respeecher, which creates voice cloning software used in Disney TV series. A year later, he created a fund focused on technology and games for the CCE region. Read more
White House Defines Digital Asset Structure (Finextra)
The White House has created a framework for “responsible development” of digital assets, which includes a more aggressive push by regulators to combat fraud in the sector. The framework comes six months after President Biden issued a sweeping executive order on cryptocurrency oversight and is based on reports with recommendations to protect consumers, investors, business financial stability, national security and the environment. The reports call on the SEC and CFTC to “aggressively pursue investigations and enforcement actions against illegal practices in the digital asset space,” and ask the CFPB and FTC to “redouble efforts to monitor consumer complaints.” Read more
EU finalizes legal text of landmark cryptography rules under MiCA (Coindesk)
The European Union has completed the full text of its landmark legislation on markets in crypto-assets (MiCA). Officially, the text is still open for comment, but sources briefed on the talks told CoinDesk that it has been finalized in practice. A leaked draft of the bill, dated September 20 and reviewed by CoinDesk, calls for EU regulators to adopt a “substance over form” approach to the law, meaning its provisions could even apply to certain assets categorized as non-fungible tokens (NFTs). Once enacted, MiCA will require crypto-asset issuers to publish technical roadmaps for platforms to register with authorities, require stablecoin issuers to hold and prudently manage capital. Read more
The European Central Bank selects five partners for the digital euro initiative (Futures on Fintech)
The European Central Bank (ECB) has selected five companies – out of 54 applicants – to collaborate on developing potential user interfaces for the digital euro. The selection was the result of an expression of interest in prototyping published by the ECB in April this year. While all contenders fulfill a set of “core capabilities” that were outlined in the call, the bank explained, the five selected vendors best fit the “specific capabilities” required for the designated use case. Read more
PCI Pal Launches Pay By Bank Open Banking Solution for Contact Centers (Payers)
UK-based PCI Pal has launched a new Open Banking solution for contact centers called Pay By Bank, which will enable merchants to minimize transaction costs. PCI Pal is a SaaS provider of secure payment solutions for business communications, and its Pay By Bank Open Banking system is the first in a series of new agent-assisted digital payment products. These products have been designed to help merchants minimize transaction costs and ensure instant refunds, while reducing chargeback costs and fraud risks. Read more
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