Latest news with #digitalpayments
Yahoo
an hour ago
- Business
- Yahoo
We're about to find out if the crypto market is big enough to raise the price of U.S. bonds and the dollar
President Trump's GENIUS Act legalizes stablecoins and requires them to be backed by U.S. dollars or Treasuries. That's going to increase demand for dollar-backed assets and, maybe, cement the dollar's reserve currency status. Bitcoin and Ether have both risen as a result, alongside a modest recovery in the U.S. dollar. Bitcoin is up. Ether is up. And the dollar is up—a little. These things might be related if you believe, as many in the cryptocurrency world do, that the Trump Administration's regulatory support for crypto will revolutionize digital payments. Bitcoin was up 1.27% this morning at just under $119K per coin. ETH rose sharply by nearly 12% over the last five days. These gains came as President Trump signed the GENIUS Act, which legalizes stablecoins. Stablecoins are cryptocurrencies that maintain their value at 1:1 with fiat currency, usually the U.S. dollar. The GENIUS Act specifically requires that stablecoins in the U.S. be backed by dollars or U.S. Treasuries. That will lock in demand for dollars and short-term U.S. bonds from stablecoin issuers, and that in turn will support both the dollar and the price of bonds. Lo and behold, the U.S. dollar, which had been down by 10.8% year-to-date at the beginning of the month, has picked itself up and is now down only 9.39%. The act 'formalizes stablecoin issuers' role as quasi money market funds, supporting US short-term debt markets and channeling non-USD liquidity into dollars,' Deutsche Bank analysts Marion Laboure and Camilla Siazon told clients in a note seen by Fortune. 'At a time when US dollar hegemony is under question, this has been seen as a win by the Trump administration. On Friday, Trump affirmed that the GENIUS Act would 'secure the dollar's status as the world reserve currency,' and followed that if the US were to lose its reserve status, it would be akin to the US 'losing a world war.'' It's not yet clear whether the crypto market is big enough to push up the price of the dollar. But it might be, Laboure and Siazon say. 'Tether alone holds over ~$120bn in treasury bills as of Q1 2025 and ranks amongst the top holders of US treasuries.' 'The US treasury predicts that T-bills held by stablecoin issuers (excluding interest-bearing stablecoins) will grow to ~$1trn by 2028,' they said. The act also bans stablecoin issuers from offering 'yield' to holders. (In cryptoworld, yield is a stream of payments that looks a lot like interest given to anyone who offers their crypto holdings as a loan to borrowers on a crypto exchange.) Because stablecoins will not be able to offer payments to holders, it looks as if crypto investors are piling into ETH, which has long offered yield payments to anyone willing to 'stake' their coins as a security on the Etherium blockchain. (Staking involves punishing anyone who approves a false transaction on the blockchain but rewarding anyone with new ETH if they approve a true transaction.) 'This perhaps explains why we are also seeing a rise in Ether (+25%) last week, as expectations for diminished stablecoin yields are driving interest towards Ethereum as the primary alternative for yield generation in decentralized finance,' the pair said. Here's a snapshot of the action prior to the opening bell in New York: S&P 500 futures were up 0.24% this morning. The index closed flat at 6,296.79 on Friday. China's Composite was up 0.72%. The STOXX Europe 600 was down 0.17% in early trading. The UK FTSE 100 was down 0.18% in early trading. The Nikkei 225 was down 0.21%. Bitcoin was up 1.27%, at just under $119K. This story was originally featured on Sign in to access your portfolio
Zawya
2 hours ago
- Business
- Zawya
Mubadala, e&, Shorooq back Dubai dining platform Qlub's $30mln funding
Dubai-based fintech Qlub has secured $30 million in a funding round jointly led by the UAE's Shorooq and Germany's Cherry Ventures. The round also saw backing from the UAE's Mubadala Investments, Abu Dhabi-listed e&, and Legend Capital of China. The new capital will fuel Qlub's international growth ambitions and enhance its digital product offerings. Founded in 2021 by Eyad Alkassar and Mahmoud Fouz, Qlub enables diners to scan QR codes to browse menus, order meals, and make payments directly from their smartphones. Qlub's platform is currently used in more than 3,000 restaurants across the UAE, Saudi Arabia, Singapore, Hong Kong, Australia, Brazil, Qatar, Kuwait, and South Korea. While no financial details were disclosed, the startup said it facilitates transactions 'worth several billion dollars annually and caters to millions of users each month'. (Editing by Seban Scaria
Reuters
2 hours ago
- Business
- Reuters
Block rises on S&P 500 inclusion, signaling fintech's growing clout
July 21 (Reuters) - Tech billionaire Jack Dorsey-led Block's (XYZ.N), opens new tab shares rose 7% in morning trading on Monday after the payments firm was added to the benchmark S&P 500 (.SPX), opens new tab, marking a milestone for the fintech sector. The inclusion cements Block's status as one of the most valuable and influential players in the fintech space, and shows how digital payments and financial apps have moved into the mainstream and disrupted traditional banking models in the U.S. Block -- with a market value of about $44.8 billion -- will replace Hess Corp, following its $55 billion merger with oil major Chevron (CVX.N), opens new tab. The change takes effect before trading begins on Wednesday, S&P Dow Jones Indices said. Shares of a company often rise after being added to the S&P 500 as index-tracking funds are required to add them to their portfolio, boosting demand for the stock. J.P. Morgan estimates that Block's inclusion should drive net indexer demand of 54.2 million shares of the company. "We believe XYZ (Block) deserves a higher multiple given recent momentum around product velocity and marketing efforts, and joining S&P 500 helps." Co-founded by Jack Dorsey in 2009 as Square, the company rebranded to Block in 2021 to reflect its broader focus on blockchain technology. Block sits at the intersection of traditional payments and digital assets, with products spanning from point-of-sale systems, peer-to-peer transfers and bitcoin services. "The nod to join the S&P 500 highlights Block's history of innovation, profitability, and ongoing margin improvement," Stephen Biggar, analyst at Argus Research told Reuters, adding that it also reflects the rapid growth of firms in the fintech and payment processing industries. Crypto payments have also gained momentum this year and are expected to grow further after U.S. President Donald Trump signed a law on Friday establishing a regulatory framework for dollar-pegged stablecoins, a milestone that could help make digital assets a routine way to pay and transfer money.
News24
2 hours ago
- Business
- News24
Digital payments are booming and regulation is struggling to keep up
As the adoption of digital payments grows, the need for regulatory frameworks that promote innovation, protect consumers, and enhance integrity and security of the financial system has become increasingly critical, says the FSCA's Keith Sabilika. Africa's financial landscape is experiencing significant transformation, as digital payments increasingly displace cash, and emerging crypto assets challenge traditional notions of money. Previously constrained by low banking penetration, the continent is now redefining financial inclusion, through the growth of mobile money and fintech innovation. This shift is further propelled by the increased internet and mobile phone penetration, the rise of e-commerce platforms and youthful tech-savvy population. However, as the adoption of digital payments grows, the need for regulatory frameworks that promote innovation, protect consumers, and enhance integrity and security of the financial system has become increasingly critical. The digital payments revolution Mobile money has changed the way people handle payments in Africa, with more than 1.1 billion registered mobile money accounts in 2024, reflecting a 19 percent increase from the previous year. Active accounts in 2024 rose by 13 percent to 286 million, demonstrating both broad adoption and growing usage. Transaction value climbed 12 percent to USD 1.1 trillion, while the number of transactions jumped 28 percent to 81 billion, indicating that users are making more, smaller payments, even as larger transfers persist. This shift reflects deeper financial engagement enabled by expanding smartphone and internet access, as well as innovative mobile money services. Africa has also emerged as one of the fastest-growing regions for crypto assets adoption, recording over $125 billion in on-chain crypto transactions in recent years, a trend that underscores the continent's shift toward cheaper, faster, and more accessible remittance alternatives. Crypto-based remittances, including those facilitated via stablecoins and blockchain networks, are being explored to bypass the high costs and delays associated with traditional banking infrastructure. Simultaneously, fintech APIs are revolutionising cross border transactions by enabling direct wallet-to-wallet interoperability across mobile money platforms, banks, and digital wallets. This significantly reduces friction and cost by eliminating the need for multiple intermediaries, particularly correspondent banks. The regulatory landscape Regulators in Africa are taking actions aimed at levelling the playing field and creating an enabling environment. For instance, the South African Reserve Bank's National Systems Payments Department (NPSD) is spearheading reforms aimed at broadening fintechs and non-bank participation in the national payment system (NPS). Meanwhile, South Africa's Financial Sector Conduct Authority (FSCA) has also emerged as a proactive regulatory force, prioritising consumer, and market development over bureaucratic compliance. A key regulatory milestone in this regard is the anticipated Conduct of Financial Institutions (COFI) Bill, which is expected to be tabled in parliament this year. This legislation is designed to level the playing field across financial institutions and fintech providers through a more adaptable, activity-based regulatory framework. These efforts reflect a shift toward a dynamic regulatory ecosystem, better suited to Africa's fast-moving digital payments sector. Recently in a landmark development, Ghana and Rwanda introduced a licensing passport system, allowing fintech's licensed in one country to expand into the other with minimal regulatory hurdles. By integrating this passport with the Pan-African Payment and Settlement System (PAPSS) and leveraging support from global partners such as the Monetary Authority of Singapore, the initiative is set to streamline cross border payments, lower transaction costs and processing times, and unlock new opportunities for intra-African trade and financial inclusion. Cross border collaboration is critical to overcome to address the enduring challenges involved in intra-Africa payments. In this regard, regional payment systems such as the Pan-African Payment and Settlement System (PAPSS) are addressing the high cost of cross border payments and promoting intra-Africa trade. Challenges and possible solutions The digital payment transition in Africa has made significant progress but faces challenges. While the regulatory landscape for digital payments is evolving, in line with the continent's rapidly expanding fintech sector and increasing focus on financial inclusion, regulatory fragmentation remains a major barrier to seamless cross border fintech innovation. With 54 countries each operating their own licensing requirements, prudential rules and compliance frameworks, fintechs face a patchwork of jurisdictional hurdles whenever they expand regionally. This lack of harmonisation drives up legal and operational costs, prolongs time-to-market and undermines economies of scale forcing many startups to limit their services to domestic markets. Addressing this challenge will require coordinated efforts to align licensing requirements, adopt common data-privacy and anti-money-laundering standards, and build interoperable platforms that enable fintechs to onboard customers, clear transactions and report to regulators under a unified set of rules. Cyber fraud and data breaches are escalating across Africa's digital payments landscape, highlighting the urgent need for comprehensive consumer protection and cybersecurity regimes. In South Africa alone, incidents of digital-banking fraud rose by 45 percent year-on-year, with related financial losses up 47 percent, according to South Africa Banking Risk Information Centre's (SABRIC) Annual Crime Statistics 2023. At the regional level, adopting Pan-African cybersecurity guidelines can ensure consistent incident-reporting, threat-sharing and resilience testing across borders. Trust, access, financial and digital literacy even though they are on the rise, remain uneven and insufficient. These factors act as significant barriers to the adoption of digital payments, especially in underserved and rural communities where low financial literacy and digital unfamiliarity persist. For instance, approximately 400 million in sub-Saharan Africa remain outside the formal financial system. In these areas, several users continue to rely on informal payment methods due to distrust of digital platforms, fear of fraud, and limited understanding of how digital financial services work. Building trust, therefore, requires more than just deploying secure platforms, it necessitates targeted consumer education initiatives that equip users with the knowledge and confidence to engage safely in digital transactions. These programmes should emphasise basic digital financial skills, data protection awareness, and fraud prevention strategies. Looking ahead Africa's digital payments revolution represents one of the most transformative developments in the continent's economic history, a narrative driven by mobile money, fintech innovation, and growing demand for low-cost, real-time financial services. With over 1 billion mobile money accounts and an expanding array of digital wallets, crypto-enabled remittance platforms, and API-powered fintech infrastructure, Africa is redefining how value moves across borders and communities.
CNA
2 hours ago
- Business
- CNA
Block rises on S&P 500 inclusion, signaling fintech's growing clout
Tech billionaire Jack Dorsey-led Block's shares rose 7 per cent in morning trading on Monday after the payments firm was added to the benchmark S&P 500, marking a milestone for the fintech sector. The inclusion cements Block's status as one of the most valuable and influential players in the fintech space, and shows how digital payments and financial apps have moved into the mainstream and disrupted traditional banking models in the U.S. Block - with a market value of about $44.8 billion - will replace Hess Corp, following its $55 billion merger with oil major Chevron. The change takes effect before trading begins on Wednesday, S&P Dow Jones Indices said. Shares of a company often rise after being added to the S&P 500 as index-tracking funds are required to add them to their portfolio, boosting demand for the stock. J.P. Morgan estimates that Block's inclusion should drive net indexer demand of 54.2 million shares of the company. "We believe XYZ (Block) deserves a higher multiple given recent momentum around product velocity and marketing efforts, and joining S&P 500 helps." Co-founded by Jack Dorsey in 2009 as Square, the company rebranded to Block in 2021 to reflect its broader focus on blockchain technology. Block sits at the intersection of traditional payments and digital assets, with products spanning from point-of-sale systems, peer-to-peer transfers and bitcoin services. "The nod to join the S&P 500 highlights Block's history of innovation, profitability, and ongoing margin improvement," Stephen Biggar, analyst at Argus Research told Reuters, adding that it also reflects the rapid growth of firms in the fintech and payment processing industries. Crypto payments have also gained momentum this year and are expected to grow further after U.S. President Donald Trump signed a law on Friday establishing a regulatory framework for dollar-pegged stablecoins, a milestone that could help make digital assets a routine way to pay and transfer money.
