Every other week, we’ll be offering a quick rundown of the most relevant news in finance and technology.
The Federal Reserve has approved changes to its automated clearing house system to allow for same-day transaction processing by banks as part of its part of an ongoing initiative to create a better payment system. In March, the Fed announced the formation of the Faster Payments Task Force, of which Ripple Labs is a member of the steering committee.
Bank of America filed for a patent on a system of wire transfers using cryptocurrency last March, according to a report by Coindesk, although the entire text was not made public until this month. The stated goal of the patent to allow “components of the system” to “initiate fund transfers using cryptocurrency bypassing the use of traditional wire services, thereby reducing dependency on third party networks and increasing the reliability of fund transfers.”
The first New York BitLicense was granted to Circle, a wallet service that enables the use of both dollars and cryptocurrency. New rules were announced in June regarding the regulation of cryptocurrency-based business in the state.
Branchless German bank and Ripple Labs partner Fidor launched its UK operations, offering loans, brokerage services, and trading. McKinsey recently estimated that European retail banks that enact a full digital transformation as Fidor has done could increase their earnings more than 40 percent over the next five years.
The Commodity Futures Trading Commission (CFTC) announced that cryptocurrencies will be regulated and subject to enforcement as commodities. CFTC Commissioner Mark P. Wetjen told a Bloomberg panel, “It has not been tested, but I do believe we have the authority because if you think of any reasonable reading of our statute, bitcoin classifies as a commodity.”
Head of Sibos Sven Bossu announced that there are now more than 6,500 registrants for the annual banking conference this October, a record showing for the APAC region. Ripple Labs is excited to attend this year as presenters and exhibitors.