Central Bank
Latvia central bank opens to fintech with ‘Innovation Hub’
Published
10 months agoon
By
admin![](https://blocknewsmedia.com/wp-content/uploads/2023/09/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDkvOGI2ZTM4NzEtMmZhZS00Yzg5LWFhN2EtMjFmMjA4NTViYTcyLmpwZw.jpg)
Fintech innovations and emerging technologies have swept the world, causing global lawmakers to rush to understand and regulate them.
While some countries like the United States and El Salvador have had a public relationship with adopting new technologies, others have quietly joined the game. Among these is Latvia, a small country located in the Baltics, neighboring Estonia and Lithuania.
Cointelegraph spoke with Marine Krasovska, the head of financial technology at Latvijas Banka (Bank of Latvia) — Latvia’s central bank — to better understand how regulators in the country are dealing with new technologies like cryptocurrencies and artificial intelligence (AI).
Unlike its neighbor Estonia, which was the first European country to provide clear regulations and guidelines for digital currencies, these assets remain unregulated in the Latvian landscape. The Latvian Personal Income Tax Act defines crypto as a capital asset subject to the general capital gains tax of 20%.
Back in 2020, one of the country’s financial regulators, the Financial and Capital Market Commission (FCMC), warned the public about crypto fraud — particularly given that in Latvia, crypto companies “operate in an infrastructure that is currently characterized by lower regulation than in the financial and capital markets.”
An upcoming hub of innovation
Since early warnings from the FCMC, Latvia has not developed new cryptocurrency regulations. However, Krasovska explained that in the last five years, the central bank, which is the primary regulator in Latvia, has been operating its Innovation Hub.
Krasovska said participation by fintech companies is not mandatory; however, the bank advises it as a “first entry point” to the Latvian market. The central bank offers this service free of charge for international companies and those originating from Latvia.
![](https://s3.cointelegraph.com/uploads/2023-09/da578479-362e-4856-b51d-ec16b931baba.jpeg)
“When businesses come to the Innovation Hub and begin to describe their business model, sometimes we start to understand what companies actually need and don’t need,” she said.
She added that it’s an opportunity for businesses to talk in person with regulators to understand the business licensing needed and get risks assessed.
“We always suggest for companies to bring a lawyer to disclose interpretation risks. Interpretation of legislation is a very high-level responsibility.”
Within the Innovation Hub, the bank has also created a pre-licensing process. According to Krasovska, this was created to help fintech companies — particularly those dealing with digital assets — create a “package of documents” that they can receive feedback on regarding the quality.
Related: Germany’s blockchain funding increases 3% amid market downturn: Report
“So when the official application goes in,” she said, “the license process will be focusing on the main ideas rather than the quality of the application. This new pre-licensing began last summer.”
“We want to see more innovation on the market. But we also want to see that the risks are managed in a proper way.”
Krasovska said that last year, the Innovation Hub had 72 consultations with around 40% of all participants from Latvia. She commented that the hub’s data reveals increased interest from companies in “crypto and electronic money institutions services.”
Adoption from the inside
Along with helping businesses thrive in the Latvian fintech landscape, Krasovska said that the Latvian central bank itself is adopting new technologies to streamline its processes from the inside.
This includes moving central bank data into the cloud and adopting AI technologies like OpenAI’s popular chatbot ChatGPT.
“We, as a central bank, will also start this year to integrate artificial intelligence and ChatGPT in our work. Not just not just trying to do some kind of studies as everyone is using it, but we’re starting to adapt it in terms of we have identified our needs.”
She said the central bank created an internal lab two years ago, which began experimenting with different kinds of technological solutions.
Related: European Banking Authority calls for early adoption of stablecoin standards
She highlighted ChatGPT feasibility studies the bank has conducted, which will help it summarize large quantities of documents, such as tax documents that she called “not structured information.”
Krasovska also said the bank employs AI to help with data direction projects and supervise code.
Synthetic data creation
When it comes to data, the fintech executive said the Bank of Latvia is spearheading a new project in relation to synthetic data.
She said that when newcomers or tech companies developing new solutions ask for a data set to train business models, it has nothing it can legally provide.
“This year and also next year, we will be working with the database ideas from which we can create this synthetic data that is like a synthetic lottery or something along those lines,” she said.
“Then companies can come and use these different types of data to understand how their tools work or don’t work before they scale the business and offer their solution to real customers.”
For example, businesses may need access to a large transaction database to understand how related monitoring tools work, “so what we’re doing right now is working on this integrated database,” she said.
Latvia and the current state of crypto
Over the summer, a report from the Latvian central bank said that local investments in crypto assets had declined by 50% over the past year.
“The number of the people purchasing crypto-assets as well as making payments with payment cards to invest in crypto-assets in Latvia declines.
This can be explained by global developments such as the negative sentiment of investors, detected cases of fraud and cases of… pic.twitter.com/uOIbJvIlsi
— Joshua Rosenberg (@_jrosenberg) August 4, 2023
The report was based on findings from payment card usage, revealing that 4% of the population bought crypto assets in February 2023, compared to 8% in the same month of 2022.
When asked about the sentiment toward cryptocurrencies in Latvia, Krasovska pointed to the crypto market conditions in combination with slumping market trends globally: “Globally, the financial markets are the way they are right now, and of course, this is [excluding] the crypto [market].”
Magazine: Crypto lawyer Irina Heaver on death threats, lawsuit predictions: Hall of Flame
Aside from the rocky conditions for the crypto community brought on by the lingering bear market, regulatory difficulties in major markets have caused investor sentiment to become less optimistic.
However, Krasovska pointed toward the European Union’s adoption and implementation of the Markets in Crypto-Assets (MiCA) legislation as something the central bank can lean on.
“With the adoption of MiCA, we can ensure very high standards for financial services.”
Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.
Source link
You may like
The German Government Is Selling More Bitcoin – $28 Million Moves to Exchanges
BC.GAME Announces the Partnership with Leicester City and New $BC Token!
Justin Sun Says TRON Team Designing New Gas-Free Stablecoin Transfer Solution
Mt. Gox is a ‘thorn in Bitcoin’s side,’ analyst says
XRP Eyes Recovery Amid Massive Accumulation, What’s Next?
Germany Moves Another $28 Million in Bitcoin to Bitstamp, Coinbase
Central Bank
Ripple gets formal approval for Singapore payments license
Published
9 months agoon
October 4, 2023By
admin![](https://blocknewsmedia.com/wp-content/uploads/2023/10/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMTAvODZlOTQ2MGUtMGYzZi00OTZjLWEzMjUtMTUxN2UzY2Y1NTA4LmpwZw.jpg)
![](https://images.cointelegraph.com/cdn-cgi/image/format=auto,onerror=redirect,quality=90,width=840/https://s3.cointelegraph.com/uploads/2023-10/86e9460e-0f3f-496c-a325-1517e3cf5508.jpg)
Ripple says it received a license to operate as a major payments institution from Singapore’s central bank allowing it to continue operations in the country after receiving in-principle approval in June.
In an Oct. 4 blog post, the company said its local entity, Ripple Markets APAC Pte Ltd, was granted the full license by the Monetary Authority of Singapore (MAS).
It’s official: Ripple is now fully licensed to provide digital payment token services in Singapore by @MAS_sg! Ripple is committed to delivering real-world crypto solutions for businesses in APAC.
Learn more: https://t.co/jD8xSc2pdd
— Ripple (@Ripple) October 4, 2023
Ripple chief Brad Garlinghouse said in a statement that “Singapore has developed into one of the leading fintech and digital asset hubs striking the balance between innovation, consumer protection and responsible growth.”
Garlinghouse said Singapore was home to the firms Asia Pacific headquarters since 2017 and the country “has been pivotal to Ripple’s global business.”
The license allows Ripple to provide digital payment token services. It joins a list of 14 others given the same license by MAS including the local arms of crypto exchanges Coinbase, Independent Reserve and Blockchain.com.
Source link
Central Bank
Implications for the Economy and Crypto Market” – Blockchain News, Opinion, TV and Jobs
Published
10 months agoon
September 22, 2023By
admin![](https://blocknewsmedia.com/wp-content/uploads/2023/09/FEDERAL-RESERVE-facebook.jpg)
The recent Federal Reserve decision to maintain interest rates as they were, has sparked conversations about its potential repercussions for both the broader economy and the cryptocurrency market. While industry experts suggest that crypto may remain relatively insulated from this decision, the central bank’s insights into the overall economic landscape carry significant weight.
A Battle Against Inflation
For over a year, the Federal Reserve has been waging a relentless battle against inflation. Between March 2022 and July of the same year, the federal funds rate, a pivotal interest rate, surged from 0.5% to 5.5%. This hike in rates followed a brief pause in June.
Maintaining the Balance
As the Federal Reserve convened for its most recent decision, market expectations leaned heavily toward the status quo. The consensus among analysts was that the central bank would choose to keep interest rates unchanged, leaving the fed funds rate within the 5.25% to 5.5% range—a level not seen in nearly two decades. This rate profoundly affects banks’ overnight lending rates and ripples through various forms of consumer debt.
The decision reflects the Federal Reserve’s strategic approach to balance economic growth and the potential threat of a recession, as some industry watchers have noted.
The Crypto Market’s Resilience
Despite the uncertainty surrounding traditional monetary policy, the crypto market has demonstrated its resilience in the face of interest rate decisions. Many experts argue that cryptocurrencies exhibit a degree of insulation from conventional economic forces. However, they also acknowledge that macroeconomic factors and market sentiment can influence crypto market performance.
In this context, the direct impact of the Federal Reserve’s interest rate decisions on cryptocurrencies may be limited as crypto enthusiasts often view digital assets as alternative investments capable of behaving independently of traditional financial markets.
Fed’s Economic Insights
While the crypto market may remain relatively unaffected by the Federal Reserve’s rate decisions, the central bank’s perspectives on the broader economy carry substantial significance. The Federal Reserve’s decisions and statements provide essential insights into its assessment of economic conditions, which can sway investor sentiment across various asset classes, including cryptocurrencies.
Source link
BIS
Israel, Hong Kong complete retail CBDC test emphasizing privacy, inclusivity
Published
10 months agoon
September 13, 2023By
admin![](https://blocknewsmedia.com/wp-content/uploads/2023/09/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDkvYTI2Y2JjNTEtMDcyYS00MmMzLWI4NDgtYzA5YWJjZGYwNmQ2LmpwZw.jpg)
![](https://images.cointelegraph.com/cdn-cgi/image/format=auto,onerror=redirect,quality=90,width=840/https://s3.cointelegraph.com/uploads/2023-09/a26cbc51-072a-42c3-b848-c09abcdf06d6.jpg)
The Bank for International Settlements and the central banks of Hong Kong and Israel released the results of Project Sela on Sept. 12. The project was a public-private partnership that used private intermediaries to create a retail central bank digital currency (rCBDC) combining the desirable characteristics of cash and the advantages of digitalization.
The project leveraged the central banks’ diverse experience to incorporate a number of predefined policy, security, technology and legal features. The private participants were fintechs FIS and M10 Networks, which provided core products, Clifford Chance for legal analysis and Check Point Software Technologies for cyber security. The project was a proof-of-concept.
Project Sela proposes a new financial infrastructure, the Access Enabler, which facilitates customer-facing activities without ever holding users’ rCBDC. It removes complexity, costs + risks compared w current payment providers #BISInnovationHub @hkmagovhk https://t.co/znVp81gQol pic.twitter.com/hItQamQc0K
— Bank for International Settlements (@BIS_org) September 12, 2023
In the Sela ecosystem, the central bank that issues an rCBDC maintains the ledger for it with pseudo-anonymous end-user accounts and provides instantaneous settlement with a real-time gross settlement (RTGS) system. Funding institutions manage users’ accounts and convert the rCBDC into and out of bank deposits and cash. An intermediary called an access enabler handles all customer-facing services, including Know Your Customer compliance, endorsements and routing, while end users maintain control over their electronic wallets with cryptographic keys.
Related: Hong Kong regulator eyes tokenization for bond market improvement: Report
One advantage of the ecosystem is its accessibility for the private financial institutions that carry out the unbundled financial services, which will purportedly increase competition and lead to increased user access. Access enablers do not create accounts, manage records or control money, reducing the regulatory requirements placed on them:
“Lower entry barriers can enable wider participation in the provision of rCBDC services, compared with the existing payments market, to include, for example, SMEs [small- and medium-sized enterprises], civil society and charitable organisations, e-commerce providers, community centres and technology companies, among others.”
Financial institutions are understood in the traditional sense of banks, credit unions and similar organizations. Thus, it does not lead to disintermediation. Project Sela rCBDC users would not have to be account holders to use the services of those institutions to convert an rCBDC to or from cash. Payments are settled by the central banks, and users control their money the whole time. The central bank participants are assumed to be the operators of the distributed ledger system.
A system weak point noted in the report is RTGS systems, since they are usually not available around the clock and are not designed for frequent small transactions. Potential technical solutions are discussed.
Magazine: Ripple, Visa join HK CBDC pilot, Huobi accusations, GameFi token up 300%: Asia Express
Source link
![](https://blocknewsmedia.com/wp-content/uploads/2024/06/germany-80x80.jpg)
The German Government Is Selling More Bitcoin – $28 Million Moves to Exchanges
![](https://blocknewsmedia.com/wp-content/uploads/2022/06/btcsmall-1-1-80x45.png)
BC.GAME Announces the Partnership with Leicester City and New $BC Token!
![](https://blocknewsmedia.com/wp-content/uploads/2024/07/From-Stablecoin-Issuer-Giant-80x80.jpg)
Justin Sun Says TRON Team Designing New Gas-Free Stablecoin Transfer Solution
![](https://blocknewsmedia.com/wp-content/uploads/2024/07/crypto-news-Mt-Gox-announced-the-start-of-payments-option03.webp-80x80.webp)
Mt. Gox is a ‘thorn in Bitcoin’s side,’ analyst says
![](https://blocknewsmedia.com/wp-content/uploads/2024/07/XRP-Will-Hit-1-80x80.jpg)
XRP Eyes Recovery Amid Massive Accumulation, What’s Next?
![](https://blocknewsmedia.com/wp-content/uploads/2024/07/germany-bitcoin-gID_7-80x80.jpg)
Germany Moves Another $28 Million in Bitcoin to Bitstamp, Coinbase
![](https://blocknewsmedia.com/wp-content/uploads/2024/06/japan-80x80.jpg)
'Asia's MicroStrategy' Metaplanet Buys Another ¥400 Million Worth of Bitcoin
![](https://blocknewsmedia.com/wp-content/uploads/2024/07/crypto-news-trading-chart-front-side-view-Exchange-building-background-bright-neon-colors-option09.webp-80x80.webp)
BlackRock’s BUIDL adds over $5m in a week despite market turbulence
![](https://blocknewsmedia.com/wp-content/uploads/2024/06/binance3-80x80.jpg)
Binance To Delist All Spot Pairs Of These Major Crypto
![](https://blocknewsmedia.com/wp-content/uploads/2024/07/TUYCJ3CEPJGIJNZROV22QP4URQ-80x80.jpg)
German Government Sill Holds 39,826 BTC, Blockchain Data Show
![](https://blocknewsmedia.com/wp-content/uploads/2024/07/crypto-news-mining-equipment-option02.webp-80x80.webp)
HIVE Digital stock rallies over 9% as Bitcoin miner bolsters crypto reserves to 2.5k BTC
![](https://blocknewsmedia.com/wp-content/uploads/2024/07/pepe_price2_720-80x80.jpg)
Pepe Price Analysis Reveals Bullish Strength As Bitcoin Plummets
![](https://blocknewsmedia.com/wp-content/uploads/2024/07/crypto-news-Taiwan03.webp-80x80.webp)
Taiwan is not in a CBDC rush as central bank lacks timetable
![](https://blocknewsmedia.com/wp-content/uploads/2024/07/SHIBA-Inu-Price-80x80.jpg)
Will SHIB Price Reclaim $0.00003 Mark By July End?
![](https://blocknewsmedia.com/wp-content/uploads/2024/07/crypto-news-The-power-of-play-option03.webp-80x80.webp)
The power of play: Web2 games need web3 stickiness
![](https://blocknewsmedia.com/wp-content/uploads/2022/06/1656437120_shutterstock_1736086877-80x80.jpg)
Bitcoin Dropped Below 2017 All-Time-High but Could Sellers be Getting Exhausted? – Blockchain News, Opinion, TV and Jobs
![](https://blocknewsmedia.com/wp-content/uploads/2022/07/coinbase-shutterstock_1866715066-80x80.jpg)
What does the Coinbase Premium Gap Tell us about Investor Activity? – Blockchain News, Opinion, TV and Jobs
BNM DAO Token Airdrop
![](https://blocknewsmedia.com/wp-content/uploads/2022/06/btcsmall-1-1-80x45.png)
A String of 200 ‘Sleeping Bitcoins’ From 2010 Worth $4.27 Million Moved on Friday
![](https://blocknewsmedia.com/wp-content/uploads/2023/03/ETH-NFT-shutterstock_1944183022-80x80.jpg)
NFT Sector Keeps Developing – Number of Unique Ethereum NFT Traders Surged 276% in 2022 – Blockchain News, Opinion, TV and Jobs
New Minting Services
![](https://blocknewsmedia.com/wp-content/uploads/2022/10/maxresdefault_live-80x80.jpg)
Block News Media Live Stream
![](https://blocknewsmedia.com/wp-content/uploads/2023/02/SEC-shutterstock_1625495629-80x80.jpg)
SEC’s Chairman Gensler Takes Aggressive Stance on Tokens – Blockchain News, Opinion, TV and Jobs
![](https://blocknewsmedia.com/wp-content/uploads/2022/08/Green-mining-Shutterstock_1981391501-80x80.jpg)
Friends or Enemies? – Blockchain News, Opinion, TV and Jobs
![](https://blocknewsmedia.com/wp-content/uploads/2022/06/0BK4KOQfADYNvpEKU-80x80.png)
Enjoy frictionless crypto purchases with Apple Pay and Google Pay | by Jim | @blockchain | Jun, 2022
![](https://blocknewsmedia.com/wp-content/uploads/2023/09/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy8zZmE3ZTQzYzVmNTkwYTA0ZDA1MWZlY2EwZGY4YjA2OS5qcGc-80x80.jpg)
How Web3 can prevent Hollywood strikes
![](https://blocknewsmedia.com/wp-content/uploads/2023/02/maxresdefault_live-80x80.jpg)
Block News Media Live Stream
![](https://blocknewsmedia.com/wp-content/uploads/2022/07/1657766796_maxresdefault_live-80x80.jpg)
Block News Media Live Stream
![](https://blocknewsmedia.com/wp-content/uploads/2023/02/maxresdefault_live-80x80.jpg)
Block News Media Live Stream
![](https://blocknewsmedia.com/wp-content/uploads/2023/07/iStock-1349331161-80x80.jpg)
XRP Explodes With 1,300% Surge In Trading Volume As crypto Exchanges Jump On Board
Trending
- Altcoins2 years ago
Bitcoin Dropped Below 2017 All-Time-High but Could Sellers be Getting Exhausted? – Blockchain News, Opinion, TV and Jobs
- Binance2 years ago
What does the Coinbase Premium Gap Tell us about Investor Activity? – Blockchain News, Opinion, TV and Jobs
- Uncategorized3 years ago
BNM DAO Token Airdrop
- Bitcoin miners2 years ago
A String of 200 ‘Sleeping Bitcoins’ From 2010 Worth $4.27 Million Moved on Friday
- BTC1 year ago
NFT Sector Keeps Developing – Number of Unique Ethereum NFT Traders Surged 276% in 2022 – Blockchain News, Opinion, TV and Jobs
- Uncategorized3 years ago
New Minting Services
- Video2 years ago
Block News Media Live Stream
- Bitcoin1 year ago
SEC’s Chairman Gensler Takes Aggressive Stance on Tokens – Blockchain News, Opinion, TV and Jobs