Digital Finance, Regulatory Challenges As Geography Fades Away

Before we jump into the discussion on current developments in digital finance, let us walk back – around a decade ago. It was the time when Paypal the popular online payment provider, tied up with BillMeLater. The business we believe was subsequently taken over by Paypal but, let us talk about developments in the first phase. A customer would make a purchase in an online shopping store that accepted, Paypal as a mode of payment. The customer could choose to make a delayed payment by accessing the BillMeLater service. The BillMeLater algorithms would, automatically analyze the ‘credit score’, of the customer – largely his or her Paypal history. Within minutes the customer would have an answer whether, the request for delayed payment was accepted or rejected. If accepted, the seller would be paid right away by BillMeLater and the customer would repay BillMeLater in an agreed number of instalments. What Paypal was providing was a system of digital financing – definitely online. Now let’s rush closer to our time and take a look at digital finance, as we are beginning to know it. 

Digital finance today is a broad term and encompasses a number of services and financial innovations. It is this massive load of products and services that raise issues related to regulations and rules. This gets even more complicated when you realize that, many of these offerings cross geographical boundaries. We are far from any sort of global uniformity when it comes to regulating digital finance. 

In its best form digital finance would include regular paper money, digital currency, credit cards and debit cards. On the service side you would have digital banking, crypto trading, online payment systems which would include cryptocurrency payment, digital loan approvals and payments etc etc. And let’s not forget a host of other innovations and services that are in the pipeline. Though not fully mainstream, you already have services that deliver a percentage of interest (returns) for the cryptocurrencies stored in their custody. The concept of crypto loans has been catching up lately, this is where specific cryptocurrencies are provided as collateral. Both these developments could become mainstream services in the near future. 

Now recap everything that you read above, step back and visualize that everything that we discussed (or almost everything) will spill, beyond geographical boundaries. This is where the issue of international laws and regulations comes in. Something that is perfectly legal in one nation could be an absolute ‘NO’ in another. 

So what is the alternative – surely not about blockading financial innovations and developments. It is a great time for governments to come together and work towards a common set of laws and regulations. It would be best if this was done sooner rather than later, digital finance is making rapid strides and it does have some serious advantages. The idea of putting brains together would also enable a more, thorough analysis of the digital finance landscape. Let’s keep in mind that this is one very dynamic space that, will revolutionize the financial sector as we have known it to be. 

 

GLITZKOIN: A short note about the track record of the GTN token. Priced in the $0.13 to $0.20 range during the ICO that ended in June 2018, the GTN token starting trading first on Stellarport and then on CoinTiger and DobiTrade. The token price during much of 2018 was in the $0.20 to $0.22 range. The token currently (July 2020) trades in the $0.38 to $0.40 price range. While CoinMarketCap did list the GTN token fairly early, the number for ‘Circulating Volume’ was stringently checked by the portal. During the checking process, GTN was ranked at around 2,000 on  CoinMarketCap. In early 2020 the portal finally agreed on a Circulating Volume number that, was very close to what Glitzkoin had submitted months ago. Publishing the verified figure of 247 million GTN in circulation, CoinMarketCap did a re-rank for GTN and the token was moved up from roughly 2,000 to around 200 – a very impressive jump. We are happy with the thorough analysis done by the portal as it was, totally unbiased and very detailed The GTN can be tracked on CoinMarketCap at https://coinmarketcap.com/currencies/glitzkoin/

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