And we’re kicking off the week with new details on cyber security, taxes, BNPL, cryptocurrency, banking and cloud technology. Dive into the latest fintech insights and have a great start of the week!
Carbon taxation and inflation: Evidence from Europe and Canada (VOXeu)
Maximilian Konradt and Beatrice Weder di Mauro from VOXeu, analyze model-based studies on the effect of carbon taxation point to sizeable inflationary effects. This work uses evidence from Canada and Europe over the past three decades to show that carbon taxes changed relative prices but did not increase the overall price level. Instead, they were slightly deflationary. In the case of British Columbia, the driver may have been a fall in household income depressing the prices of non-energy goods, which more than offset rising energy prices. Read more.
BNPL: The now and the later (Fintech Futures)
Dave Wallace, analyst at Fintech Futures, analyzes a report from the Citizens Advice (CA) bureau about BNPL in the UK. The report is based on research undertaken with 10,000 UK adults, of which 2,700 respondents had used BNPL. So, the sample size is significant. Read more.
Silicon Valley entrepreneur Sam Altman wants to scan your eyes in exchange for free cryptocurrency (CNBC)
Ryan Browne, analyst at CNBC, explores a new orb-shaped devices to scan people’s eyes in exchange for free cryptocurrency, from a new start-up Worldcoin. The company has so far amassed over 100,000 users globally already, and aims to hit the 1 billion user milestone by 2023. Read more.
Collaboration and the reinvention of banking and financial services (Fintech Futures)
Sanjay Deshpande, EVP and Head of Banking and Financial Services, Americas, Virtusa, highlights the fact that banking and financial services companies have seen the writing on the wall for some time now. Customers are changing. They’re moving from tellers and ATM machines to the digital realm where they seek additional, personalised, cashless services—services that have seen lower rates of adoption by many of the traditional financial institutions. Read more.
How ‘Stablecoins’ Could Unleash Chaos (Yale)
Gary B. Gorton, highlights on dollar-pegged cryptocurrencies like Tether, Paxos, and Facebook’s Diem. Tether, with a market cap approaching $70 billion, is now the third-largest cryptocurrency in the world. But without regulation, these so-called stablecoins pose serious risks to the U.S. financial system, argue Yale SOM’s Gary B. Gorton and his co-author. Read more.
Meeting Backup Requirements for Cyber Insurance Coverage (Security Week)
Gordon Lawson, writer at Security Week, explores the fact that many companies wrongly assume that having backups in the cloud can prevent or reduce the impacts of a ransomware attack. The prevalence of ransomware has had a devastating impact on businesses over the past few years, with insurance underwriters seeing increasingly large ransomware payouts. As a result, some core cyber security hygiene fundamentals are being required by insurers to qualify for coverage. Read more.
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