Snippings

xxx

In addition, certain features of DeFi blockchains favour the concentration of
decision power in the hands of large coin-holders. Transaction validators need to
receive compensation that is sufficient to incentivise them to participate without
committing fraud. Blockchains based on proof-of-stake, which are expected to
improve scalability, allow validators to stake more of their coins so that they have a
higher chance of “winning” the next block and receiving compensation. Since the
associated operational costs are mostly fixed, this setup naturally leads to
concentration (Auer et al (2021)).12 Many blockchains also allocate a substantial part
of their initial coins to insiders, exacerbating concentration issues

From :

xxx

BIS be like

Trading of cryptoassets can take place on both centralised exchanges (CEXs)
and decentralised exchanges (DEXs). The former are structured around the same
principles as their conventional counterparts. CEXs maintain off-chain records of
outstanding orders posted by traders – known as limit order books. By contrast, DEXs
work in substantially different ways, by matching the counterparties in a transaction
through so-called automated market-maker (AMM) protocols. AMMs follow
mathematical formulas to determine prices based on transaction volumes. Box A
discusses how AMMs incentivise liquidity provision; it also looks at their susceptibility
to market manipulation. Both CEXs and DEXs have seen substantial growth since
2020, although the share of DEXs in the overall transaction volume on crypto
exchanges has remained below 10% (Graph 2, left-hand panel).

PDF 

xxx

xxx

But only now, I realized that both Money and Identity can be account- or token-based, and that token-based is probably what’s going to help us make progress, because it makes identity and money programmable.

From Programmable Money and Identity – Petervan’s Blog:

xxx

xxx

Uber, Bolt, Grab and Gojek all claim to be super apps for transport, food delivery and logistics. PayPal, Klarna and Revolut hope to be financial super apps. Spotify is on its way to becoming a super app for audio, adding podcasts and chat rooms to its music library.

From The real reason most super apps are not super great | Financial Times:

xxx

xxx

The chat app is kicking things off with a test that lets a “limited number” of people in the US send and receive payments using Pax Dollars (USDP), a US dollar-backed stablecoin issued by Paxos.

From WhatsApp launches a cryptocurrency payments test with Novi:

xxx

xxx

The new European Digital Identity Wallet could actively support an innovative payment ecosystem for Europe, as some of its main objectives – interoperability and portability – are in line with the European Payments Initiative (EPI). Moreover, it could serve as a distribution mean for the digital euro. The wallet would act as the payment interface provider (as per Bank of England’s CBDC design), which would act as a user-friendly interface between Europeans and [the ECB].

From Towards a European digital identity wallet: competitive, business-enabling, and safe – ThePaypers:

xxx

xxx

Under the European Digital Identity Wallet initiative, Member States will offer citizens and businesses digital wallets that will be able to link their national digital identities with proof of other personal attributes (e.g., driving licence, diplomas, bank account, COVID-19 vaccination details). These wallets may be provided by public authorities or by private entities if they are recognised by a Member State. The promising part of this initiative is that the development of the necessary common standards for the wallet is a collective effort coming from EC, Member States, and the private sector. The aim is to test these standards in pilot projects from October 2022 onwards.

From Towards a European digital identity wallet: competitive, business-enabling, and safe – ThePaypers:

xxx

xxx

“The truth of it is that any kind of networked media technology is going to create tribes,” says Follows.

From ‘People are no longer constrained by pre-digital parameters’: Tracey Follows, CEO, Futuremade | E&T Magazine:

xxx

xxx

On the periphery of the payments ecosystem, a subset of Americans are paying millions of dollars each year just to transact. While payments professionals expect consumers to rely heavily on cards and ACH transactions, many financially marginalized consumers pay with cash, prepaid cards, and money orders. Many must take out payday loans for short term credit. The Financial Health Network estimates that in 2020 the financial services industry serving this market cost American consumers $255B.

From Payments ViewsThe True Cost of Being Underbanked – Payments Views:

xxx

xxx

In addition,  PISPs and AISPs must identify themselves to ASPSPs when seeking to connect to their systems. EU regulatory technical standards outline the specific requirements around identification, with PISPs and AISPs obliged to rely on so-called eIDAS certificates.
EIDAS certificates are issued by qualified trust service providers (QTSPs) under the EU’s eIDAS Regulation. However, in July the European Banking Authority (EBA) confirmed that eIDAS certificates issued for all UK-based PISPs or AISPs will be revoked at the end of the Brexit transition period – 11pm UK-time on 31 December this year.

From FCA to change rules on eIDAS certificates for payment services:

xxx