News from the intersection of finance and technology.
Every week, we’ll be offering a quick rundown of the most relevant news in finance and technology.
Paypal, on the eve of split from eBay, bought Xoom. Paypal gets that the future will be all about cross-border payments. “Xoom’s presence in 37 countries — in particular, Mexico, India, the Philippines, China and Brazil — will help us accelerate our expansion in these important markets,” PayPal President Dan Schulman says.
The World Economic Forum Report on the Future of Financial Services predicts major shifts in financial technologies. Within payments, they see the promise of distributed ledgers—echoing the sentiments of Santander and the European Banking Association.
Citigroup deploys blockchain ledger technology and creates Citicoin as unit of exchange for cross-border transfer. Banks clearly understand the benefits of emerging innovations and are now earnestly experimenting with these new technologies.
In the Journal of Payments Strategy & Systems 9.1, SWIFT published a paper on the challenges, risks, and regulations surrounding cryptocurrency innovation. Overall, SWIFT focuses on volatility and regulatory uncertainty. However, it admits that “the technology underlying these cryptocurrencies has a potential generic new way to transfer ownership of value in the longer term.”
In a keynote address at the Global Technology Law Conference, Ravi Menon, the Managing Director of the Monetary Authority of Singapore outlined a $225 million investment in financial technology. (He even pointed out Ripple as an excellent example of the potential of distributed ledgers.)