FinTech Wire #7: From Russia with Law and New Successes of Our Old Friends

This week FinTech Wire continues one of the stories we mentioned previously, but we also have a lot of brand new information that we’ve carefully selected just for you. Get your reading glasses and enjoy the news about Stripe, Facebook’s Libra, Ford’s vans and a case of split personality in one of the most powerful governments in the world!

A week in FinTech: 24—30 November 2020

Another country announces a national digital currency and a hero of the last issue of FinTech Wire, Starling Bank is back with more great news. Meanwhile Russia is not sure what to think about cryptocurrencies and Ford integrates cashless payment terminals with their commercial vehicles. Read the post for all the exciting details!

Stripe on its way to become the most valuable startup

Stripe is definitely of the fastest growing startups on the planet, but it’s probably going to shock the FinTech world with yet another ground-breaking record. If everything goes according to the best case scenario, it’s going to raise $100 billion and become the most valuable venture-backed startup in the US. History tells us that it’s quite possible, as Stripe’s Irish founders are both talented and lucky. The Collison brothers managed to make their first millions when they were teenagers and now, they are worth $4 billion each, according to Bloomberg.

Read more about revolutionary payment platforms

Last week we informed about the Chinese plans for a national digital currency. This time, in reaction to what Xi Jinping has just announced, Russian PM stated that his country is going to adapt a series of laws to regulate the crypto market better and contribute to its growth.

Mikhail Mishustin, Russian PM, says: “Let’s make a number of changes to the Tax Code so digital financial assets can be recognized as property, and their owners will be able to count on legal protection in the event of any illegal actions, as well as to defend their property rights in court.”

However, the situation in Russia is still bizarre. Payments in crypto are going to be banned in January 2021 in this country, if the regulators don’t change their previous decision.

Read more about cybersecurity in FinTech

Facebook’s Libra currency finally ready to launch

It’s been years since the first information about Libra. At first nobody even knew if Facebook’s plans were real and how was Libra supposed to be of any use. Now, however, we know it’s going to be a stablecoin pegged to US dollar. Later on, more fiat currencies are said to be added to the basket of assets that backs Libra’s value.

Oh, by the way. Facebook-backed Libra Association that is behind the whole project has just been renamed. From now on, it’s name is Diem. According to Reuters, the name of the currency is going to be the changed to Diem, too.

According to Financial Times, the new crypto can be launched this January.

Read more about Libra/Diem

Payment terminals built in Ford commercial vehicles

Ford is partnering up with Mastercard and SumUp in order to offer cashless payment terminals with their commercial vehicles sold in Germany, France, Italy, Spain and the United Kingdom. The main advantage of the new solution is giving the entrepreneurs an option to simplify their work and eliminate the need of cooperating with too many partners. Now, since Ford will not only offer cars, but also a payment solution, it can help reduce operating costs of many businesses.

Mastercard’s Executive Vice President, Jason Lane says: “Now more than ever, small businesses are an indispensable part of our economy, and a crucial part of our recovery moving forward. Providing them more options on how they want to make and receive payments can help them manage their cash flows and ultimately improve their bottom lines. To that end, we are delighted to be the partner of choice of SumUp and Ford in delivering innovative payment solutions that support European small business owners.”

Read more about digital payment solutions

Iceland launches its own instant payment system

Though Iceland is a rather small country, with population of 365,000, everybody seems to be using the new real-time gross settlement system. Developed for the Central Bank of Iceland by an Italian company SIA, the new infrastructure can process up to 5 million payments a day and needs just 40 milliseconds for one transaction. Congratulations!

Read more about digital revolution in banking

Starling is back with more successes

Last week we talked about Starling Bank from the UK and its fast pace of growth. In fact, it is becoming so big, that large financial institutions are already considering purchasing it. The list of potential buyers includes JP Morgan and Lloyds and if the merger happens, it’s going to be an unprecedented situation. An established bank has never acquired such a startup in Britain

Read more about technology in banking

More news from FinTech Wire coming soon…

That would be all in this FinTech Wire. Last weeks of the 2020 are super-exciting and much more positive than anything that happened in the spring. Let’s hope this trend continues!

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