Theoretically, the introduction of stablecoins should have no effect on the Treasury market given that consumers do not necessarily buy Treasuries to park their money for hours or days. Businesses who buy Treasuries, I presume, have a similar strategy as part of their cash-management practices.

The only use I see for such instruments is to further hook adult-adoloscents addicted to playing with new tech while parting them from their money. Credit card issuers took advantage of the movement to fast payments as tech exploded and benefited handsomely while playing down stories of debt-ridden shopaholics. Stodgy banks benefited despite not having to do most of the work involved in participating in that scheme. Now, they are being upended again by new tech that is hard for them to understand and even harder for them to implement.

Given that tech has become the new vehicle to create new pyramid schemes, it is not surprising that the current environment is fast-tracking such "innovation" - but, it is easy to predict where this is going to end up.

Strange part of the story is that the State AG says they caused more than $1 billion in fraud over the last 6 years. Early Warning Systems is dismissive about the lawsuit and says that Zelle's 150M users transferred $1 trillion last year with 99.95% accuracy.

But, when you do the math, the 0.05% they did NOT transfer accurately amounts to $5 billion!!

A legal framework without technical mandates and enforcement will be toothless.

I strongly recommend following the principles advanced in this Forbes article - it isn't just about preventing data breaches: https://www.forbes.com/councils/forbestechcouncil/2020/03/06/disruptive-defenses-are-the-key-to-preventing-data-breaches/

Nearly a decade ago, I wrote about the hack on the Democratic Natiomal Committee (DNC) - and how a 30-year old technology might have changed the course of history. What's ironical is that this ancient technology - without parallel - has become increasingly critical given the threat AI represents to everything we do on the internet.

https://lnkd.in/guUMMXtZ

When will business executives learn, understand and change the imperative?

Thank you.

Does this guidance cover Credit Unions in the US too? It would be helpful to clarify that as it would indicate how much risk US taxpayers are being forced to bear.

When government agencies are unwilling to let inefficient banks die, and instead use taxpayer funds to keep depositors whole (beyond the $250K FDIC guarantee) when failing banks' legitimate investments fail (Silicon Valley Bank, Signature Bank, etc.), it boggles the mind what these agencies will resort to when banks are allowed to speculate in crypto-tokens that have no legitimate purpose.

I couldn't agree more with Mayra Rodriguez Valladares' assessment of what the new administration is doing with respect to the CFPB and FDIC. As confidence in US markets collapses, it will lead to "capital flight" to safer havens and investments by rational people. Given the bubble created by the technology industry over the last decade, it has the potential to create a global recession as markets over-react during the correction.

For shame, for shame! I cannot believe how time-serving these banks are, and how they're playing dice with the future of our children and grand-children.

In contrast, I want to share this uplifting story of what one man is learning on his extraordinary journey about climate change.

https://www.economist.com/christmas-specials/2024/12/19/a-journalist-retraces-humanitys-journey-out-of-africa-on-foot

While passkeys (aka FIDO/WebAuthn) has its advantages, it is critical to understand that not all passkeys are created equally. To get another point-of-view that you are unlikely to hear from passkey promoters, it is worth 6 minutes of your time reading this article on LI:

“Would you trust your bank with both keys to your safe deposit box?”

Does the CMA not have the authority to fine such companies for violations? If it does not, then the situation will never improve. I suggest looking at the US' Consumer Finance Protection Bureau (CFPB)  - setup during the Obama administration - as an example of some good work they are performing. According to their websites, they were responsible for getting $20B returned to consumers of the life of the agency (probably around 10 years now).