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Harambe:
CNBC: IMF warns banks to evolve or be 'left behind' amid competition from Big Tech (7/15/19)
Banks must evolve or risk being "left behind" as big tech companies shake up the financial system, according to new research from the International Monetary Fund (IMF).
In a paper published Monday titled "The Rise of Digital Money," IMF authors Tobias Adrian and Tommaso Mancini-Griffoli said the two most common forms of money today, cash and bank deposits, will "face tough competition and could even be surpassed."
But banks are "unlikely to disappear" as they face growing threats from big tech companies and fintech start-ups, the paper said.
"Some will be left behind no doubt," the authors wrote. "Others will evolve, but must do so quickly."
The research was published as central bankers and policymakers debate the role that tech companies and digital currencies will play in the banking and payments system.
Facebook's announcement that it will launch a cryptocurrency called Libra has been met with skepticism from many officials around the world. In congressional testimony last week, Federal Reserve Chairman Jerome Powell said Libra raises "serious concerns"around privacy, money laundering, consumer protection and financial stability.
"Policymakers should be prepared for some disruption in the banking landscape," the IMF paper said.
The IMF paper said traditional banks have certain advantages over tech competitors, such as the ability to raise interest rates on deposits. Libra, for example, has said it will not offer any interest to users. But the paper also said big tech firms and fintech start-ups are "experts at delivering convenient, attractive, low-cost and trusted services to a large network of customers."
The IMF has been examining the role that central banks might play in issuing digital currencies. In a CNBC interview in April, then-IMF Managing Director Christine Lagarde said disruptors in the financial sector, including crypto assets, are "clearly have an impact" on incumbents like traditional banks.
https://www.cnbc.com/2019/07/15/imf-says-banks-could-be-left-behind-amid-competition-from-big-tech.html?
Bloomberg: Zimbabwe: From Falling Prices to 3-Digit Inflation in 30 Months
(7/15/19)
Zimbabwe has gone from deflation to triple-digit inflation in less than three years.
The statistics office said in Monday that annual inflation surged to 175.7% in June from 97.9% in May. That’s only 29 months after Zimbabwe’s consumer prices started rising again following years of deflation.
Inflation in the southern African nation peaked at 500 billion percent in 2008, prompting the government to abandon the Zimbabwe dollar. The government last month announced the return of a national currency and said foreign ones -- such as the U.S. dollar and South African rand that was widely used over the past decade -- won’t be accepted as legal tender anymore.
Instead, a quasi-currency known as bond notes, which can’t be traded outside the country, and their electronic equivalent, the RTGS$, will be termed the Zimbabwe dollar.
Hyperinflation
“The annual inflation may end conservatively at between 200% and 300%,” said Prosper Chitambara, a senior economist at the Labor and Economic Research Institute in Harare. “With the reintroduction of the local currency, this will put pressure as there is no production. You don’t introduce more currency when there is no production because that on its own causes inflation. We are now in hyperinflation technically.”
The new exchange rate creates a risk that more people will be driven into the black market, further starving the economy of already insufficient state revenue at a time when the country is buckling under a shortage of wheat, fuel and electricity.
The prices of food, clothing, furniture and health care all surged by more than 200% in June from a year before and the monthly inflation rate was 39.3%, according to the statistics office.
Still, Zimbabwe’s Treasury expects changes to the nation’s currency system will help rein in inflation later in the year. Finance Minister Mthuli Ncube said in June he sees the gauge below 10% by the end of the year.
https://www.bloomberg.com/news/articles/2019-07-15/zimbabwe-s-annual-inflation-rate-doubles-in-june-to-176
Source: Dinar Recaps
______________________________________________________
If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we'll forward your request to the author.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
Harambe:
CNBC: IMF warns banks to evolve or be 'left behind' amid competition from Big Tech (7/15/19)
Banks must evolve or risk being "left behind" as big tech companies shake up the financial system, according to new research from the International Monetary Fund (IMF).
In a paper published Monday titled "The Rise of Digital Money," IMF authors Tobias Adrian and Tommaso Mancini-Griffoli said the two most common forms of money today, cash and bank deposits, will "face tough competition and could even be surpassed."
But banks are "unlikely to disappear" as they face growing threats from big tech companies and fintech start-ups, the paper said.
"Some will be left behind no doubt," the authors wrote. "Others will evolve, but must do so quickly."
The research was published as central bankers and policymakers debate the role that tech companies and digital currencies will play in the banking and payments system.
Facebook's announcement that it will launch a cryptocurrency called Libra has been met with skepticism from many officials around the world. In congressional testimony last week, Federal Reserve Chairman Jerome Powell said Libra raises "serious concerns"around privacy, money laundering, consumer protection and financial stability.
"Policymakers should be prepared for some disruption in the banking landscape," the IMF paper said.
The IMF paper said traditional banks have certain advantages over tech competitors, such as the ability to raise interest rates on deposits. Libra, for example, has said it will not offer any interest to users. But the paper also said big tech firms and fintech start-ups are "experts at delivering convenient, attractive, low-cost and trusted services to a large network of customers."
The IMF has been examining the role that central banks might play in issuing digital currencies. In a CNBC interview in April, then-IMF Managing Director Christine Lagarde said disruptors in the financial sector, including crypto assets, are "clearly have an impact" on incumbents like traditional banks.
https://www.cnbc.com/2019/07/15/imf-says-banks-could-be-left-behind-amid-competition-from-big-tech.html?
Bloomberg: Zimbabwe: From Falling Prices to 3-Digit Inflation in 30 Months
(7/15/19)
Zimbabwe has gone from deflation to triple-digit inflation in less than three years.
The statistics office said in Monday that annual inflation surged to 175.7% in June from 97.9% in May. That’s only 29 months after Zimbabwe’s consumer prices started rising again following years of deflation.
Inflation in the southern African nation peaked at 500 billion percent in 2008, prompting the government to abandon the Zimbabwe dollar. The government last month announced the return of a national currency and said foreign ones -- such as the U.S. dollar and South African rand that was widely used over the past decade -- won’t be accepted as legal tender anymore.
Instead, a quasi-currency known as bond notes, which can’t be traded outside the country, and their electronic equivalent, the RTGS$, will be termed the Zimbabwe dollar.
Hyperinflation
“The annual inflation may end conservatively at between 200% and 300%,” said Prosper Chitambara, a senior economist at the Labor and Economic Research Institute in Harare. “With the reintroduction of the local currency, this will put pressure as there is no production. You don’t introduce more currency when there is no production because that on its own causes inflation. We are now in hyperinflation technically.”
The new exchange rate creates a risk that more people will be driven into the black market, further starving the economy of already insufficient state revenue at a time when the country is buckling under a shortage of wheat, fuel and electricity.
The prices of food, clothing, furniture and health care all surged by more than 200% in June from a year before and the monthly inflation rate was 39.3%, according to the statistics office.
Still, Zimbabwe’s Treasury expects changes to the nation’s currency system will help rein in inflation later in the year. Finance Minister Mthuli Ncube said in June he sees the gauge below 10% by the end of the year.
https://www.bloomberg.com/news/articles/2019-07-15/zimbabwe-s-annual-inflation-rate-doubles-in-june-to-176
Source: Dinar Recaps
______________________________________________________
If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we'll forward your request to the author.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
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