There’s good news, there’s bad news, and now there’s even fake news – and for most of us, there just aren’t enough hours in the day to sort through it all.
Luckily for you, the Airwallex blog is here to help. Each Friday, we’ll be scanning the week’s goings-on and condensing it into an easy, breezy blog post containing the world’s top five fintech scoops, so that you can keep up-to-date with what’s keeping fintechers agog (and, obviously, so that you can dazzle Karen from Accounts with your knowledge at Friday beers), without compromising on your busy schedule. How nice of us.
Who wants to be a bitcoin-illionaire?
Those who invested $100US-worth of bitcoin in 2011 will be popping a Veuve Cliquot or two, as their shares as of last Monday soared to $482,666.67 – that’s 483x its original value. The bitcoin, now known as the ‘digital gold’ currency, has seen a monumental 40 percent surge in the past week alone.
There have been plenty of theories floating around the fintech world as to why there’s been such a rise in the bitcoin valuation in recent months. Most experts agree that it’s due to a combination of decreased confidence in the Chinese Yuan, excitement from traders about new digital currencies, and the storm of social media attention (good and bad) surrounding blockchain, that bitcoin has seen its highest valuation in bit-history.
Read more bitcoin theories here:
Fintech VCs in need of a Panadol and a stiff drink…
It looks like the VCs may have been flashing their cash with a little too much reckless abandon in the heady years between 2012-2015. According to a report by Morgan Stanley, there has been a significant dip in VC spending in the past year ($22 Billion US less, to be precise), which Business Insider are calling the VC ‘hangover’ period.
Incumbent financial institutions, eager to get on the fintech bandwagon seem to be picking up the pieces. This could signify a huge change in the fintech landscape: will we be seeing well-established Wall Street firms embracing new fintech technologies in the near future?
Read more about it here:
China’s building a long and silky road
China’s president Xi Jinping made such claims last week at the forum of The Belt and Road Initiative, a US $1.3 trillion investment program, which aimed at establishing strong business and investment relationships between China and the world. Held in Beijing, the forum announced a focus on fintech developments, including going ahead with the building of the controversial digital silk road.
Why so controversial? Find out more here:
One bank’s loss is another fintech’s gain
McKinsey’s latest report predicted nothing short of a storm brewing for India’s banks, stating that stressed assets without any loan-loss cover have exceeded $96 billion, more than the net worth of the entire sector.
This comes in the same week that Paytm, a digital payments company, raised funds of $1.4billion US, and Mumbai-based digital financer Capital First Ltd. had a bump-up in holdings from a prominent Singaporean fund.
McKinsey says there are going to have to be a lot of structural changes for the banks to survive, and it’s looking like there will be a shift in power from India’s biggest banks towards smaller digital companies.
Fintech - 1, Banking - 0.
Find out more here:
It wasn’t all bad…
While Airwallex just narrowly missed out at the Finnies 2017 Awards, it did give team members Alice and Jasmine ample opportunity to take these ‘#SadSelfies’ with different wax-worked impressions of their favourite celebrities.
You can't hold a candle to that. Literally don't, it will ruin months of hard work.