Moody’s: bank profits at risk from digital currencies
The adoption and active usage of digital currencies, particularly central bank digital currencies (CBDC), threatens the role of commercial banks in the global financial system, Moody’s reported.
According to the agency, cross-border digital transactions would demand new specialized infrastructure that would leave no place for intermediary banks. Furthermore, the shift to CBDCs would reduce their profits from payments, correspondent services, and foreign-exchange transactions.
However, central bank digital currencies have certain benefits for banks as well. CBDCs would allow users to carry out cross-border transactions instantly with very low commission fees, eliminating the need to register in multiple payment systems. Analysts at Moody’s noted that banks would have to redesign their current operations when adopting CBDCs and develop new systems that would support digital currencies.
US dollar’s time as preeminent currency nearing end
Ordinary Americans are beginning to realize that the dollar is no longer the same. As the grim reality unfolds, years-long faith in the omnipotence of the US dollar gives way to thoughts of its loss of status as the world's preeminent currency in global trade. They are starting to acknowledge that the greenback’s dominance is facing serious challenges.
13:11 2023-06-05 UTC+00
Italy’s public debt makes it one of most highly-indebted countries
The US has firmly settled at the top rank on the list of heavily indebted countries. The federal debt of the top global economy surpassed others by a wide margin. Less advanced and smaller economies have to deal with humongous public debts. Italy’s government debt hit another historic record of €2.79 trillion.
13:02 2023-06-05 UTC+00
EU economy avoids recession
The EU economy successfully avoided recession last winter, a report by the European Commission said. Despite earlier gloomy outlooks, which were prompted by concerns over the impact of the conflict in Ukraine, the diversification of energy supply, and plummeting Russian energy exports due to sanctions, the European Union has managed to weather the storm.
12:35 2023-06-05 UTC+00
EU adopts new crypto market regulations
Lawmakers in the European Parliament approved new regulations on markets in crypto-assets (MiCA). Digital assets have become ingrained in modern life and therefore need to become more managed. "The EU brings crypto-assets, crypto-assets issuers, and crypto-asset service providers under a regulatory framework.
07:27 2023-06-05 UTC+00
Congress approves debt ceiling bill
Fears about a default in the US have finally abated. After a prolonged standoff, the Senate passed bipartisan legislation that lifts the government's $31.4 trillion debt ceiling. However, the parties reached an agreement just a few days ahead of the X-date.It was extremely hard for congressmen to make concessions.
15:51 2023-06-02 UTC+00
Musk and Bezos have more money than US Treasury
According to The Hill, the fortune of the two wealthiest billionaires, Elon Musk and Jeff Bezos, has exceeded the amount of money that the Treasury currently has.To avoid a default, which an unsettled debt ceiling issue could have caused, the US Treasury Department has allocated $49.47 billion.
14:57 2023-06-02 UTC+00