We’re back to provide you with another #longstoryshort Weekly News Roundup. Here is your weekly dose of banking and crypto news and some insight from Unlimit BaaS’ Managing Director, Jovi Overo!
- The crypto world’s most-ambitious software revision by Ethereum called the Merge, will cut network electricity use by 99%. This upgrade aims to make the network faster and cheaper and should further increase its usage and significance. [source: Bloomberg UK]
Though this is a major breakthrough, it won’t reduce “gas fees” as these are paid on the execution layer. For Ethereum to have a long-term future it needs to be affordable. The average person can’t afford high transaction fees, thus the future for Ethereum lies on ‘layer 2s’. Projects such as Polygon are built on top of Ethereum in order to improve efficiency and lower the costs to transact on the network. – Jovi
- The recent Gartner Hype Cycle for Digital Banking Transformation research found that Banking-as-a-Service is expected to be launched by 30% of banks by the end of 2024 – this will help nonbank participants to enter the banking market and benefit from the variety of BaaS solutions available. [source: The Paypers]
This is incredibly exciting and I expect Banking as a Service to really shake the banking market. The incredible transformations that will occur will result in nonbanks offering better, more innovative solutions, greater reductions in the cost of banking, and better customer experiences which means win-win for all involved. – Jovi
- The European Central Bank (ECB) has selected five companies to develop potential user interfaces for the digital euro as part of its ongoing two-year investigation phase of the digital euro. This project aims to provide an additional payment method & a more user-friendly payment experience, contributing to accessibility and inclusion. [source: Fintech Futures]
Central banks should be more involved in payments technology especially since the importance of cash has been diminishing for quite some time. I look forward to this with great expectations. – Jovi
See you next Friday, for our next weekly news roundup!