Community banks play an essential role in the American financial system – they provide the majority of small business and farm loans, as well as mortgage and general banking services. ...19 April 2017
European Parliament backs the creation of a new FinTech taskforce
The European Parliament has called for the establishment of a taskforce led by the Commission and consisting of technical and regulatory experts to foster understanding of emerging innovations in financial technology including virtual currencies and distributed ledger technology and to focus on developing a proportionate regulatory response.
The EP acknowledged that the nature of virtual currencies, or digital cash, is still evolving and that the European Banking Authority regards them as being a digital representation of value that is neither issued by a central bank nor a public authority nor necessarily attached to a fiat currency, but is accepted by natural or legal persons as a means of payment, and can be transferred, stored or traded electronically.
It also noted that, whilst distributed ledger technology (DLT) (also commonly referred to as blockchain) is most notably used for virtual currencies, the nature of the technology with databases with varying levels or trust and resilience, has transformational capacity in Fintech more broadly including in clearing and settlement as well as beyond finance, including in proof of identity and property and has attracted investment totalling more than EUR 1 billion to date, from both venture capital funding and corporate investment.
The EP supports well-informed, timely and proportionate response to the opportunities and risks associated with the evolving technological landscape and so has called for a taskforce to be established by the European Commission to help deliver that, clearing the way for the Commission to draw up a budget and process to implement that.
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Moving onto the second day of the Innovate Finance Global Summit 2017, Hogan Lovells hosted a roundtable focussed on Making Regulation Invisible: Using RegTech to Embed Rules into Workflow. ...13 April 2017
Sandboxes featured as a common refrain at the Innovate Finance Global Summit 2017, cropping up as routes to success in FinTech innovation in various guises. Innovate Finance and MIT...13 April 2017