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Now there is an alleged link between a leading crypto firm and the Synapse disaster, which has deprived fintech customers of access to more than $100 million of funds they thought were being held for their benefit and protection at FDIC-insured "partner" banks. As stated in the following article, Juno allegedly (according to a former Synapse employee) provided "nightmare fuel" that exacerbated the breakdown of Synapse's compliance controls. The article also reports that Juno "offers an 'on-ramp' to more than 20 blockchains and associated cryptocurrencies alongside a traditional 'fiat' bank account that was provided by Evolve Bank & Trust via Juno’s relationship with Synapse." See https://lnkd.in/ew324_Mi. In addition, the website for juno.finance describes Juno's services as "building financial services around crypto and stablecoins to ensure you are always in control of your money." That representation apparently hasn't turned out to be accurate for at least some Juno customers whose fund transfers were overseen by Synapse. For a previous article describing the scope of the Synapse debacle, see https://lnkd.in/eEeH2e3G. The Synapse catastrophe raises very troubling questions about the risks to consumers created by the proliferation of bank-middleware-fintech "partnerships," as well as the evident failures by federal bank regulators to supervise those partnerships effectively. It also doesn't seem to be a coincidence that a crypto firm is once again, allegedly, connected to a major financial meltdown.

The closing panel of #RAID2024 Virtual explored how the financial services sector might provide a blueprint for global regulation and adoption of digital technologies.   Alain Otaegui, Policy Expert, European Banking Authority (EBA) said: “There is big hype around the use of AI in banking sector. It’s not new. The banking sector is benefitting from exponentially larger sets of data and analytics capabilities, and the efficiency of algorithms. It’s the application of those techniques in decision making processes that is new.” He highlighted the generation of code and content – creating advice, for example – as key areas of adoption that are being examined. “AI can be a useful tool for a central bank,” said michele lanotte, Retail Payment Instrument and Services Directorate, Banca d'Italia. “We are studying with banks to understand the opportunities and the risks, because the devil is in the detail.” “A lot of effort now is put into data governance,” said Karmela Sophia Holtgreve, Director General Strategy and Innovation, Deutsche Bundesbank. “We need to know whether data is good or not. It needs to be done to get results out of LLM or whatever AI you are using. How explainable and transparent is the use of data – how can we make sure the human is in the loop to adapt the model? This is not always there yet, and it can create risk such as bias. This needs to be looked at very carefully or we won’t get the results we want.” “Hallucination is acceptable when you’re deciding what to have for dinner but not when you’re deciding what to do with your life savings,” said Emőke Péter, Head of European Public and Regulatory Affairs, Worldline. The panel, moderated by Jannah Patchay of the Digital Pound Foundation, also focused on the challenges and opportunities of digital currencies, the interoperability of vertical and horizontal legislation, and the need for international coordination to ensure financial stability. “We need to keep collaborating cross-border and cross-sector,” said Otaegui.

In my mind for a while, shoutout to my colleague, Razvan Enache. Top 10 Future Banking trends: a technological transformation over the next decade. In the next decade, the banking industry is poised for a remarkable transformation driven by rapid technological advancements. This forward-looking analysis explores ten key trends that will redefine how financial services are delivered and consumed. From the rise of digital-only banks and the widespread adoption of blockchain to the integration of artificial intelligence for personalized customer experiences, these shifts promise to enhance efficiency, security, and customer satisfaction. Biometric security measures and open banking initiatives will offer greater convenience and choice, while the focus on sustainability will ensure that financial practices align with environmental and social goals. Embedded finance will blur industry lines, and the potential of quantum computing could unlock new possibilities in risk management and cryptography. As banks navigate this evolving landscape, regtech solutions will be essential in maintaining compliance amidst a backdrop of complex regulations. Together, these trends paint a picture of a dynamic future for banking, where technology plays a pivotal role in shaping the industry's direction. Be sure to check our Future Banking events to keep up the step.

Are you ready? Four major FinTech trends for 2025 - Thomson Reuters: The FinTech market is growing rapidly and needing to know 2025 trends will be important to stay on top of risks and fraud. %

Reimagining the future of money: freedom-bearing, human-centric Digital money preserves physical cash features and enables bilateral, non-intermediary payments, enhancing modern economy functions. McKinsey data shows US families lost 3.78% of monthly income in 2021 due to legacy financial service charges. Digital coins with unique verifiable identities and denominations, designed for easy transactions, overcome privacy and fee hurdles, allowing customers to transfer money or tokenized assets without charge. Quantum-safe CBDCs require quantum randomness, continuous rolling mutations of random algorithms, and Pattern-Devoid-Ciphers like Trans-Vernam, which rely on mathematical proof of efficacy. #DigitalTransformaton #CBDCs #DigitalCurrency #paymentinnovation https://okt.to/tG6SnO

Navigating the Digital Era: How Numbers Define Our Financial Survival: In an era where digital payment systems have seamlessly integrated into our daily lives, it's intriguing to consider how our existence is becoming intricately intertwined with numbers. From bank account balances to transaction IDs, every financial interaction now leaves a digital footprint, shaping our survival in ways beyond mere currency. The advent of digital payment systems has revolutionized the financial landscape, offering convenience, speed, and efficiency. However, this transformation goes beyond the tangible benefits, fundamentally altering our perception of wealth, security, and identity. One of the most noticeable shifts is the diminishing significance of physical currency. Cash, once synonymous with financial transactions, is now overshadowed by numbers on screens. Our wealth, once measured by the thickness of wallets, is now quantified by digits in bank accounts. This abstraction of wealth has reshaped how we perceive and interact with money, blurring the lines between the tangible and the virtual. Moreover, the integration of digital payment systems has elevated the importance of personal data security. With each transaction, we entrust our financial information to algorithms and encryption protocols. The safety of these digital vaults becomes paramount, as any breach could compromise not just our finances but also our identities. Yet, amidst this digital transition, numbers have become more than just markers of financial value. They are now symbols of trust and reliability. When we receive a transaction confirmation number or a unique identifier for a payment, we rely on these numerical codes to validate our transactions and ensure accountability. The trust we place in these numbers underscores the digital infrastructure's robustness, reinforcing our confidence in a system driven by algorithms and mathematical precision. However, alongside these advancements come challenges and ethical considerations. The rise of digital currencies, blockchain technologies, and automated transactions raise questions about privacy, inclusivity, and economic disparities. As we embrace a world governed by numbers, we must ensure that these systems prioritize transparency, accessibility, and fairness for all. In conclusion, the integration of digital payment systems has ushered in an era where our survival is intricately linked to numbers. From virtual bank balances to encrypted transaction codes, numbers define our financial interactions, perceptions, and security. Navigating this digital landscape requires not just technological proficiency but also ethical awareness and a commitment to fostering a financial ecosystem that empowers and protects every individual.

Read our latest EQT PerspeQtive on Stablecoins — the internet-native cash. Stablecoins are set to redefine financial services by bringing cash into the digital age. Rather than disrupting traditional finance, they will seamlessly integrate, creating a truly internet-native platform. Discover how this innovation will transform the industry in our latest article.

Reimagining the future of money: freedom-bearing, human-centric: In this article, I will discuss a few key misconceptions, concerns and risks related to current digital money designs. digital fintech news.

 💸Topic of the day: Digital cash I understand the pain point that has yet to be solved: there's still a lot of room to make money user friendly and accessible. Stablecoins are just that! They represent a shift in financial services. What was before not only hard to use and understand in crypto, but also expensive to move in traditional finance is now having a solution... stablecoins? Programmable, instant, transparent, close to zero cost and global, we believe that new and traditional finance companies will start integrating and building new applications on top of the new stablecoin ledger infrastructure. We are excited about the potential of stablecoins to drive this transformation, and for new generation of groundbreaking applications to be built. A few topics we explore: ✅Stablecoin is on par with Visa in volume. End 2020 there were c.5m transactions. We’re now at 1.3bn 🤪 ✅ Governments will allow for stablecoins to act in lieu of CBDCs. Could the future be: Stablecoins > CBDCs > Cash?  ✅Europe is leading with new regulation. Once again, this region drives innovation in payment methods cc Tom Mendoza Kaushik Subramanian EQT Ventures Marnix van der Ploeg Leila Pirbay Alexandre PONS

🔍 Stable-coins represent rare opportunity to reshape the financial industry, and it is closer than you think 🌐 With now clear use-cases it could change money flows from 'cumbersome and costly' to transparent and instantaneous, making moving money as easy as sending a text 📈 And the momentum is now undeniable; Stablecoins already amassing a market cap exceeding $135 billion. With regulatory frameworks solidifying, crypto is poised to transform our operational landscape Explore our latest article on the topic (Link in comments) 💬👇