Will stablecoin providers be regulated like banks? | Author: Jonny Frye | The Capital | June 2021


We have written and published talks on multiple occasions about West Coast technology companies (such as Apple, Amazon, Google, Facebook, etc.) that seem to want to “get a piece of the big Apple”. All these technology companies are busy building their own payment platforms, which are comparable to those traditionally provided by many financial services companies in New York.

If countries such as the United Kingdom succeed and manage to exclude financial services companies from the global tax proposals of the world’s 100 largest companies (currently under discussion), how long will it take us to see these technology companies spin off their financial services? Service subsidiary? The Chancellor of the Exchequer, Rush Sunak, Is working to get G7 to agree to exclude financial services companies from the global tax proposal. If this happens, people are increasingly worried that it will undermine the City of London where banks such as HSBC and Standard Chartered have their headquarters, while most of their revenue comes from outside the UK. The Public Policy Institute estimates that global taxation proposals can bring up to 7 billion pounds in revenue to the UK Treasury every year, so the risk is high.

Some people believe that Apple Pay was born in the United States alone US$1 billion Income pa and above 500 million Considering the growth pattern of global customers, as the world increasingly rejects cash and accepts digital payments, the prospects seem very optimistic. Remember, PayPal is valued at US$108 billion, which is more than 2.5 times the value of Goldman Sachs’s US$130 billion valuation-then, how much would Apple Pay, which has more customers than Paypal, be valued? Will Apple Pay, Google Pay, Samsung Pay, Amazon Pay, etc. be split? Similarly, China’s Alibaba split Alipay to create Ant Financial in 2014? If large technology companies are scrambling to repair their balance of payments after COVID-19, and see their profitability being challenged by the G7 government, how long will it take for these savvy accountants and tax advisors of tech giants to find new ways to do so? Solve the problem, again, to minimize the taxation of tech giants?

Apple Pay user growth Paypal user growth

source: Statista.com source: Statista.com

As Hayden Jones of PricewaterhouseCoopers pointed out in Digital Bytes last week, digital currencies in the form of stablecoins provide considerable appeal to the financial departments of multinational companies. Digital currencies enable companies to transfer funds globally, bypass correspondent banks and provide real-time cash management. There is such a comment: “So-called stablecoins (cryptocurrencies linked to other assets) need to be closely monitored. The prospect of stablecoins as a means of payment… [has] It caused a lot of problems.Difficult and appropriate questions must be asked about the future of these new forms of digital currencies“From the governor Bank of England, Andrew Bailey, Does this mean that stablecoins will be regulated by the UK Prudential Regulation Authority (PRA)? Is not Financial Services Conduct Authority (FCA)? If Sunak succeeds and ensures that financial services companies are excluded from the current G7 global tax proposal, then this move may be even more helpful for the technology spin-off of payment platforms…

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