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Weekly Analysis and Opinion Highlights – 11 July 2022

And we’re kicking off the week with new details on crypto, money transfer, fintech funding, payment process, debt crisis and more. Dive into the latest fintech insights and have a great start of the week!

Governments May Restrict Foreign Access to Their CBDCs, Riksbank Official Says (Coindesk)
Not all countries “play nicely” with each other, complicating how central bank digital currencies will interact with other payment systems, said Cecilia Skingsley, first deputy governor at the Swedish central bank. For instance, countries won’t necessarily “play nicely” with each other, making interoperability – or the way CBDCs interact with other payment systems – complex and layered, Skingsley said at the European Central Bank’s (ECB) annual forum on central banking held in Sintra, Portugal. Read more.

RBI new restriction on fintechs offering credit in collaboration with non-banks will affect BNPL market in India, says GlobalData (Global Data)
The Reserve Bank of India’s (RBI) recent regulation barring fintech companies from loading prepaid payment instruments (PPIs) such as prepaid cards and mobile wallets using credit offered by non-bank institutions is expected to affect the existing business model of buy now pay later (BNPL)/ non-bank entities in the short-term, says GlobalData, a leading data and analytics company. Several fintech companies adopted a PPI-based BNPL model in India, wherein they provide short-term credit to customers which are funded by their partner non-bank entities. As per the new regulation, PPIs should only be loaded via banking instruments such account transfers, debit cards, and credit cards and not via credit lines offered by non-bank entities. Read more.

Crypto startup funding falls to a 1-year low (Businesstimes)
CRYPTO startups finally felt the effects of an economic storm that has been cooling digital currencies, public stocks and venture capital all year. Funding to private crypto companies in the second quarter fell to its lowest level in a year, according to data from the research firm PitchBook. The hype around crypto startups made the sector seem briefly immune to the economic turmoil. It set a record of US$9.85 billion in venture funds raised in the first quarter. That was, it turns out, only a factor of how long it takes for venture capital deals to finalise. “Even though the crypto market started slowing down in November, December, those deals were already in discussion, so they closed in the first quarter,” said Robert Le, fintech analyst at PitchBook. Read more.

The interest-rate vibe shift hits fintech (Protocol)
The interest-rate vibe shift is here. For fintech companies that spent the past several years boosted by cheap funds and strong consumer spending, that means suddenly waking up to a world where everything looks different. Online personal loan lender Upstart saw its share price plummet Friday after reporting preliminary earnings. Inflation, fears of a recession and rising interest rates have put “banks and capital markets on cautious footing,” said CEO Dave Girouard, a former Google executive who founded Upstart a decade ago. The company published a preview of earnings ahead of the full August release — something that often serves as a red flag for investors. Read more.

This Is When Bitcoin (BTC) Price Will Hit New ATH ! (CoinPedia)
Kaleo, an anonymous analyst, informs his 526,200 Twitter fans that the flagship currency is expected to enter into the crab market or also known as sideways trading. This movement is expected to happen before Bitcoin hits a new all-time high which he predicts will happen in early-2024. As per the strategist, the first born currency will hover between $16,000 and $30,000 until November or the next five months prior to moving upwards. Kaleo explains his point stating that the Bitcoin price should trade between the base level of $16,000 to $30,000 for the next five months, and from the month of December the price is expected to move up right breaking its high time-frame diagonal resistance. Read more.

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