As digital currencies are being created all across the globe, emerging countries like Argentina are seeing in it huge opportunities to create better and more sustainable societies.
According to BitcoinFilm.org, the organization behind this documentary, apart that there is endless potential with bitcoin, the main problem is that too few people know about it.
The team is travelling the world to ask established institutions about Bitcoins and how they see the impact on on society.
Sicoob, Brazil’s largest financial cooperative and one of country’s largest banking service network, announced few weeks ago the official launch of its Open Banking program.
Sicoob is going one step further in its digital transformation plan by allowing any third-part providers (TPPs) access a range of financial products and services, and most importantly access data related to all its client’s operations.
Indeed, TPPs will now be able to connect to Sicoob’s infrastructure to get data on current account balance, transactions, savings, etc. that will aim to better serve customers’ needs.
According to Antônio Vilaça Júnior, Sicoob’s director of technology:
“Open Banking is another action in the Digital Transformation plan of the cooperative. The project aims to improve an experience of cooperation in the relationship with Sicoob through digital solutions.”
With 30% of its client base being referenced to as millennials, Sicoob is trying to adapt to a whole new generation of tech-savvy that are looking to manage their savings in a easier and more modern way.
To do so, the so-called Fintech start-ups will go through Sicoob’s portfolio of Application Programming Interfaces (APIs) to extract the adequate data to be used to deliver their financial products or services.
Argentina is actively seeking to show the world its entrepreneurial spirit, starting with Financial Technology start-ups that are growing faster than anytime before.
As a sign of the rapid growth of the Fintech sector in the country, Google is partnering with AreaTres, a co-working space in Buenos aires, to launch the first Launchpad Start Fintech.
The program is co-organized by Increase, a pioneer in the industry that helps businesses better control and manage their sales with cards. It will bring a global network of mentors and pioneering companies such as Bitex along with 16 other startups.
According to Matías Doublier, COO of Increase:
“Through this program, Increase contributes to the development and growth of the fintech ecosystem. In this way, we can also share our experience, mistakes and learning in Google Accelerator in San Francisco with other entrepreneurs.”
The event will take place from the 12th to 16th of March at the A3 space and will be held simultaneously in cities across the world like in Tel Aviv, Barcelona, Paris, Berlin, Singapore, London, New York, Bogota and Mexico City.
The program has been designed to provide selected start-ups with access to powerful tools and will allow them to penetrate the market with the best practices from first class companies.
Mexican regulators announced last week the adoption of a new law made of 145 articles to better regulate Financial Technology Institutions.
The project of regulating financial products and services provided by new entrants was first brought by the government last October 10th, 2017.
Among other sectors that will be impacted by the new law, you will find: electronic payments (mobile phone purchases and money transfers), collective financing (online investments), virtual assets (currencies and electronic currency) and digital financial advice.
The Mexican government is looking to embrace innovation in the financial industry while preventing and mitigating the risks of money laundering and financing of terrorism. It is also establishing a robust regulatory framework with minimum standards to better serve the interest of its population. As an example, as defined in the new law:
“The use of virtual assets, such as cryptocurrencies, will need to go through prior authorization from the Bank of Mexico (Banxico).”
Fintech institutions will have to provide their clients with a clear view on the risks associated by the use of their solutions.
The new law will also pay attention on Fintech’s governance and will for example require them to create a board of directors and committees depending on the number of operations, clients, business model, etc.
Mexico is also announcing the launch of the Interinstitutional Committee of the National Banking and Securities Commission (CNBV), that will be composed of officials from the Ministry of Finance and Public Credit (SHCP), Banxico and the CNBV. Among other responsibilities, the Committe will have the power to grant authorizations or give sanctions.
Every month, Techfoliance highlights three closing rounds made by Fintech start-ups across LATAM. In this monthly FinTech fundraising radar we will also highlight IPOs made in Brazil with Pagseguro, Inter and Cielo.
Pagseguro is a São Paulo-based payments company owned by Brazilian media group Universo Online SA, that is providing financial technology solutions focused primarily on Micro-Merchants, Small Companies and Medium-Sized Companies, or SMEs, in Brazil.
Fund raised: $2.3 Billion (through IPO)
Discover: https://pagseguro.uol.com.br/
Banco Inter is a São Paulo-based Fintech that has launched a full digital bank that attracted 300,000 customers in just over a year and a half. The company, which was born as a financial institution of MRV Engenharia, is no longer just a credit operator and has become a complete bank.
Fund raised: R$ 800 million (expected through IPO)
Discover: https://www.bancointer.com.br/
Cielo is a São Paulo-based company that is the leader in electronic payment solutions in Latin America. It provides merchant, payment processing, and credit and debit card services. The company operates through Credit Cards.
Acquisition: $670 million for the US payment company Merchant e-Solutions
Discover: https://www.cielo.com.br/
President Nicolas Maduro announced few days ago the launch of Venezuela’s own digital currency called ‘petro’ to facilitate financial transactions.
According to the government, Venezuela’s petro token will be backed by its oil, gas, gold and diamond reserves and investment will come from Qatar, Turkey and other Middle Eastern countries, as well as from European nations and the US.
However, many doubt that the digital currency will bring much benefit to either Venezuela’s economy or its people. As stated by Francisco Toro, a Venezuelan journalist:
“Venezuela has been trying to figure out ways to get around anti-money laundering sanctions provisions, and crypto is maybe one way they can do that. I do think that part of this is about getting investors from non-traditional lenders, from Russia and China, to put in some more money, to lend fresh cash.”
Toro said that Venezuela’s economic woes have given it a bad credit reputation and that the government was trying to convince itself of the validity of chavismo, the left-wing political ideology established under former President Hugo Chavez.
“This idea that sanctions are hemming demand, that they need to need to get around sanctions, this is chavismo drinking their own Kool Aid and believing their own propaganda.”
Some people are more optimistic toward the petro and belive that this is great idea and could serve as a precursor to similar projects from other world leaders.
According to Mati Greenspan, senior market analyst at social trading firm eToro:
“It’s an excellent idea to back the crypto with a hard commodity as the world is currently flooded with baseless money. Surprisingly, we’ve seen very little support for this initiative in the crypto community, most likely because it seems the Venezuelans themselves don’t seem to have made up their minds just yet.”
Countries hit with sanctions are not alone in considering the possibility of their own digital currency. Many around the world are mulling the idea of virtual currency. Sweden, for example, is looking into the possibility of a digital version of the Swedish crown, the “ekrona”.
This article was first published in CNBC
