Richard Turrin’s Post

🔥 MUST READ🔥 Digital Euro Update: Offline Functionality Explained, Yes to Multiple Accounts and Still Waiting for Holding Limits 🚀We are getting offline transfers with our digital euro! I told you so! 🚀 The European Central Bank just released four papers showing good progress on the digital euro, its new Central Bank Digital Currency.  These papers go a long way to enhancing our understanding of how the digital euro will work offline and how it will handle multiple accounts.  Both are important functionalities for the digital euro.  I have frequently written that offline use for the digital euro is non-negotiable. 👉TAKEAWAYS OFFLINE TRANSFERS PAPER: 🔹 Offline transfers will include direct offline NFC-enabled mobile-to-mobile transfers! This is great news and the biggest news. 🔹 Offline transfers can also be made with a battery-powered smart card, just like in China.  This is critical for inclusion of the elderly. Will the cards be “Made in China?” 🔹 The cards will be charged at ATMs, Banks, and POS terminals. Who can run the POS terminal, your local convenience store, or telecom? MULTIPLE ACCOUNTS PAPER (below) 🔹 So what happens to your digital euro holding limit if you have 2 or 3 accounts as many do? 🔹 Easy: you can split the limit between accounts and specify how much of the limit each device, whether online or offline. 🔹 This is great functionality and is the first feature that beats China’s digital yuan, which, at least so far, does not have this feature. HOLDING LIMITS PAPER (below) 🔹 This paper falls short as it only outlines the methodology for determining them. It does not give a hint of the range of possible numbers. TIMELINE PAPER (below) 🔹 There is no big reveal here; the architecture for the digital euro should be revealed by Q4 2024, when the digital euro rulebook and pilot rollout are ready. 👊STRAIGHT TALK👊 The ECB scores big points for solid progress, and Europeans, whether they like the digital euro or not, should be pleased that development is being handled professionally.  I give the ECB and its teams 4.5 stars or A- for these papers. They only lost points on the holding limits papers! This won’t make digital euro haters any happier, but it should comfort the rest of us that the ECB is delivering what it advertised.  The key privacy designs haven’t yet been revealed, but they will likely be handled as professionally as we see here for offline transfers. Thoughts?   ✍️Friends comment because 1 comment = 15x likes! ♻️Repost to make this available to your network!   ---------------------- 💥 My name is Rich, I’m not an AI and am here to chat. And you? 🔺 #Fintech, #AI and #Tech at the speed of #Asia and #China. 🔺Onalytica No.4 Global Fintech Influencer with two best-sellers.   Like this post? Want to see more? 🔝 Follow me. ✍️ Click on “view my blog” for more!

🔥 MUST READ🔥 Stablecoins are neither fish nor fowl! Tokenization in Asia, the human toll of GenAI, and why Africa needs the India Stack! VIDEO! 👉Friends today I’m trying out a new punchier easier to skim format. PLEASE let me know what you think.  There are advantages and disadvantages to this new change.  I write for you and need your feedback! 👈 So today’s artwork by Magritte seems like a striking example of the old saying, “Neither fish nor fowl.” Humans are neither. It’s a great theme for today’s writing! This week’s great reads include an impactful read on tokenization that shows our shared future. This is followed by another impactful read showing how some stablecoins are neither “fish nor fowl.” They are not all created equal. Humans matter, though you wouldn’t think it with all the talk about the GenAI revolution. Finally, someone asks the right question: “What happens to the humans?” Will we be slaughtered like fish and fowl with GenAI job losses? Financial inclusion is always a hot topic, and while I like Mastercard’s report, Africa and the Middle East deserve better than Visa and Mastercard can deliver! Finally, here's a great video with my friend Efi Pylarinou that tackles big topics like CBDC, the Petroyuan, and Digital Wallets. Enjoy Thoughts? ✍️Friends comment because 1 comment = 15x likes! ♻️Repost to make this available to your network! ---------------------- 💥 My name is Rich, I’m not an AI and am here to chat. And you?  🔺 #Fintech, #AI and #Tech at the speed of #Asia and #China. 🔺Onalytica No.4 Global Fintech Influencer with two best-sellers. Like this post? Want to see more?  🔝 Follow me. ✍️ Click on “view my blog” for more!  

🔥 YOUR WEEKEND MUST LISTEN🔥 CBDC, Petroyuan and Digital Wallets with the incomparable Efi Pylarinou   CBDC update! These are some of the most important breakthroughs in the CBDC world, so listen in and bring yourself up to speed with one entertaining podcast!   For those who may not know, Efi and I are good friends on LinkedIn, and in this podcast, we get to talk one-on-one! Our exchanges are full of life, friendship and great story telling! You will learn how much I hate Zelle!   Enjoy the podcast and let me know what you think!     👉Time Stamp with “Truth Bombs”  👉The Full video link is in the comments   "Noun. truth bomb (plural truth bombs) (informal) A blunt, undiplomatic statement of something that is true that others may not want or expect to hear."   00:00 The Evolution of Money: Exploring CBDCs 01:25 Richard Turin on CBDC Developments 03:50 The SWIFT System and CBDC Integration 04:33 The CBDC debate: Privacy, Surveillance, and Polarization 💣 Truth bomb 💣 “When I wrote about Swift recently I didn't analyze the tech as much as I pointed out it doesn't matter because many nations putting together CBDCs are never going to use Swift I don't care if it had the best technology in the world. “   15:39 The Petro Yuan: China's Digital Currency in International Trade 💣 Truth bomb 💣 “We're seeing the first use of the Chinese Yuan and it now can be premature but we can call it the Petro Yuan and it's no surprise the the that China is looking to use its yuan or RMB to purchase oil.” 25:43 Digital Public Infrastructure: India's Leap in Payment Systems 💣 Truth bomb 💣 “India and China have revisualized payments as a free or near free service as a social or public good. The term India uses is digital public infrastructure. It is infrastructure run by the state for the public good to be used and it's used by a mix of Banks and normal financial institutions and the general public and the key service is called UPI.” 31:17 The Future of Wallets and Digital Payments 💣 Truth bomb 💣 “Big card networks should be terrified! Brazil’s Pix caused a 15% drop in credit card use in Brazil which is the most like the West. China too showed a big drop in card use. Google and Apple Pay Wallets are pathetic examples of digital wallets!” 36:42 Closing Thoughts and Digital Identity   💣 Truth bomb 💣 “We are running a digital society with an ID system that is rooted on pictures on drivers licenses.” 👉 The Full video link is in the comments   Thoughts?   ✍️Friends comment because 1 comment = 15x likes! ♻️Repost to make this available to your network!   ---------------------- 💥 My name is Rich, I’m not an AI and am here to chat. And you? 🔺 #Fintech, #AI and #Tech at the speed of #Asia and #China. 🔺Onalytica No.4 Global Fintech Influencer with two best-sellers.   Like this post? Want to see more? 🔝 Follow me. ✍️ Click on “view my blog” for more!  

🔥 MUST READ🔥 Cutting Costs With AI: At What Cost to Humans? AI means job losses, pure and simple; let that settle in for a moment. To their credit, Deloitte Digital is one of the first consultants to consider the human toll of job losses created by AI.  This toll is being felt NOW! If we believe AI propaganda, AI will be a human assistant or companion at work. That may be true today, but AI will become so smart within a decade that humans will be optional. What then? What happens to the people when companies claim that the bottom line and shareholders matter more than jobs? We don't know, but who can blame employees when employees view their employers as 188% less empathetic and human when AI tools are offered at work? 👉TAKEAWAYS Four tensions from the use of AI in the workplace now! 1️⃣ Efficiency vs. Inclusivity 69% cited improved efficiency in routine tasks as the top hope for AI in the workplace. Yet nearly a third of conversations cited concern about AI's bias and inclusion challenges! 2️⃣ Creative Inspiration vs. Diligence Over 69% of leaders stated they believe that AI will improve employee creativity to some degree, with AI sparking new ideas and inspiration. However, there is also a fear that AI will sacrifice accuracy and thoroughness, with 42% of conversations citing concern for declining quality of work. 3️⃣ Personalization vs. Data Privacy In 58% of conversations, leaders expressed a desire to use AI to facilitate more effective feedback loops to learn from employees. The top concern for leaders was the ethical use of AI for data security & privacy, mentioned in 56% of conversations. 4️⃣ Time for Connections vs. Quality of Connections Over a third of conversations cited AI's ability to unlock time for meaningful human interactions. However, this optimism is tempered by the risks, with 🔥41% of leaders believing AI will decrease the quality of human connections! 🔥 👊STRAIGHT TALK👊 Do you remember the AI propaganda about new jobs for prompt engineers?  How many will we need, and will we even need them when GenAI can actually help write the prompt for you?  The problem with AI isn’t that it is smart and getting smarter, it is that society has not yet come to grips with the job losses that are coming.  Goldman Sachs economists predict that as many as 300 million full-time jobs could be lost or diminished globally. While the IMF says 4% of global employment is exposed to AI! It’s not a question of if these job losses materialize but when. Kudos to Deloitte for recognizing the human toll. Thoughts?   ✍️Friends comment because 1 comment = 15x likes! ♻️Repost to make this available to your network!   ---------------------- 💥 My name is Rich, I’m not an AI and am here to chat. And you? 🔺 #Fintech, #AI and #Tech at the speed of #Asia and #China. 🔺Onalytica No.4 Global Fintech Influencer with two best-sellers.   Like this post? Want to see more? 🔝 Follow me. ✍️ Click on “view my blog” for more!

🔥 MUST READ🔥 Diverse Regulations Mean All Stablecoins Are Not Created Equal   No one wants a stablecoin future more than I do; I see them as a key component of our “shared cashless future.”  The problem is that all stablecoins are not created equal under the laws in which they are issued, which means significant differences in reserving and custody.  This matters because stablecoins had a total market cap of around $140 billion last month, or 8% of the total crypto market. The problem is that “stable” is somewhat relative, as BIS research showed that no existing stablecoin has always maintained parity with its peg! The BIS says more international coordination is required to ensure stability, but we all know that won’t happen. Instead, expect a world where stablecoin values float and one is worth micro-cents more or less than another or where one is accepted, and another refused. 👉TAKEAWAYS 🔹While stablecoins might bring a range of benefits, they also introduce significant risks. 🔹Many regulatory approaches have similar key requirements for stablecoin issuers. Most follow two types of authorisation regimes that allow stablecoins to be issued by: (i) banks and certain nonbank financial institutions; and/or (ii) a new type of financial entity holding a crypto-specific license 🔹There are relevant differences in regulatory regimes that could lead to a need for more consistency and coordination in the oversight of stablecoins across jurisdictions. Crucially: The terminology used to define stablecoins varies, as does the treatment of reserving and custody. 🔹As the adoption of stablecoins increases, preventing regulatory fragmentation will become more important. 👊STRAIGHT TALK👊 Stablecoins are great tech, but as always, “the devil is in the details.” That the BIS is calling for greater regulatory cooperation on how they are issued is good! The reality is that stablecoins will be different, and we can expect their usage to be anything but universal. It will be very much like the old days when a shop took Visa but not Mastercard or American Express. Some will accept certain stablecoins for payment but not others. This will be a problem because it kills the “singleness” of money, meaning that a Euro in cash or digital CBDC is always a Euro. The promise of monetary singleness is CBDC’s greatest advantage over stablecoins. The BIS leaves out one critical point!  As most stablecoins are issued in US dollars, US regulators will set the standards, like it or not. That may be a long wait! The BIS must know this. Thoughts? ✍️Friends comment because 1 comment = 15x likes! ♻️Repost to make this available to your network!   ---------------------- 💥 My name is Rich, I’m not an AI and am here to chat. And you? 🔺 #Fintech, #AI and #Tech at the speed of #Asia and #China. 🔺Onalytica No.4 Global Fintech Influencer with two best-sellers.   Like this post? Want to see more? 🔝 Follow me. ✍️ Click on “view my blog” for more!

🔥 MUST READ🔥 Financial Inclusion in Africa and the Mid East Won't Come From Mastercard but India's UPI!   I have nothing personal against Mastercard, but what Africa and the Middle East need are payment systems modeled after India’s UPI, not Mastercard. Cards as digital payment are wholly unfit for bringing nationwide inclusion. They are private companies and can never fully serve public interests when the rural poor are nothing more than “unprofitable” to them. Africa and the Middle East need “The India Stack,” which has a proven track record of bringing UPI payments to over 1.4 billion people through digital public infrastructure shared by all. Fortunately, report author OMFIF points this out, even though Mastercard, probably wanted it deleted! 👉TAKEAWAYS Below are the roadblocks to inclusion, followed by my analysis on how UPI solved these problems! 1. Low levels of financial and digital literacy among citizens and enterprises are noted as the main barriers to financial inclusion. 🔹Same as in India! Cooperation with public-sector payment providers greatly helped India’s financial literacy problems. 2. Economic sustainability in financial inclusion is vital, but not a top priority for survey respondents as only one-third said their financial inclusion strategies are aligned with this principle. 🔹 This would not be a problem if the government supported key system elements as public infrastructure. 3. An integrated financial system with interoperability is critical for inclusion, yet challenges related to infrastructure, access and costs persist. 🔹 There can be no more interoperable system than UPI-style nationwide digital public infrastructure! 👊STRAIGHT TALK👊 The India stack was behind India’s UPI revolution and has a proven track record of success in a developing nation. UPI’s “secret sauce” is government-sponsored “Digital Public Infrastructure” (DPI) and the belief that banks and governments can collaborate on payments. With all due respect to Mastercard (MC), it’s hard to see how cards will ever bring the large-scale advances in financial inclusion the regions require.  The OMFIF must have fought with MC to put this sentence in: ”India's digital public infrastructure – the India Stack – had been recognised as a potential model for countries seeking to boost levels of financial inclusion. The India Stack is interoperable and allows private companies to build apps integrated with state services, allowing consumers to access a wide range of services.” I'm sorry, but Africa and the Mid-East don’t need Mastercard; they need India’s UPI and “The India Stack.” Thoughts?   ✍️Friends comment because 1 comment = 15x likes! ♻️Repost to make this available to your network!   ---------------------- 💥 My name is Rich, I’m not an AI and am here to chat. And you? 🔺 #Fintech, #AI and #Tech at the speed of #Asia and #China.   Like this post? Want to see more? 🔝 Follow me. ✍️ Click on “view my blog” for more!

🔥 MUST READ🔥 Asset Tokenization: Asia Will Crack this Trillion Dollar Market First Real-world assets, like stocks, bonds, and even real estate, will be tokenized. It’s not a question of if but when. Tokenization has gone far beyond crypto and is increasingly making its way into traditional financial services, where most agree that an overhaul of existing systems is necessary. Whether it's tokenizing physical gold, as we saw with HSBC in Hong Kong last week, or BlackRock’s tokenized US Treasuries, it’s clear that blockchain tokenization is the future and happening now. Why? Simple, the promise of instant atomic settlement is simply irresistible! The only question in a few years will be: “How did Asia run away with this market?” 👉TAKEAWAYS Advantages of Tokenization 1️⃣ The introduction of new financial products and services would be possible thanks to the digital representation of conventional assets (see, for example, tokenizing exchange-traded funds [ETFs] to create digital funds). 2️⃣ Tokenization is likely to help reach new customers thanks to its ability to allow for fractional trading in illiquid assets. These assets might include real estate, artwork, or other valued collectibles. 3️⃣ Tokenization offers the possibility of new operational efficiencies. That’s because the process would be anchored to a ledger that facilitates smart contracts. These, in turn, serve to automate and streamline the trading of the underlying assets and facilitate the flows of programmable funds.   👊STRAIGHT TALK👊 Tokenization isn’t just the future. It is the now, and it will go mainstream in Asia first!  Asia will be first because Singapore and Hong Kong are embracing tokenization and looking to get a jump on the rest of the market. The rest of the world will be stuck in tokenized limbo, waiting for laws to be implemented while these nimble cities will pass them this year.  Singapore is developing standards for tokenization funds, while Hong Kong is developing securities regulations and providing guidance to banks to ensure consumer protection. Asia will be the first to normalize tokenization and make it pay! But there is another factor! Asia is also leading in CBDC projects and CBDCs are perfectly adapted to be used with smart contracts. The ultimate manifestation of tokenized assets is paying for them with tokenized currency, and frankly, Asia will have its CBDC network up and running years before the West. Watch as Asia runs off with another fintech market, this one worth trillions. Thoughts?   ✍️Friends comment because 1 comment = 15x likes! ♻️Repost to make this available to your network!   ---------------------- 💥 My name is Rich, I’m not an AI and am here to chat. And you? 🔺 #Fintech, #AI and #Tech at the speed of #Asia and #China. 🔺Onalytica No.4 Global Fintech Influencer with two best-sellers.   Like this post? 🔝 Follow me. ✍️ Click on “view my blog” for more!  

  🔥 MUST READ🔥 MESMERIZING: What if AI can't be fixed? Hong Kong vs. Singapore, EU Banks' superapp delusions and GOLD!   Today’s newsletter is as mesmerizing as the hyperrealistic portrait below! Covering everything from EU Neobanks to Gold and the Singapore-Hong Kong rivalry, it has something for everyone! 1️⃣ 100 Reasons to Love the Future! We all need a reason to believe in a better future, and here you have 100 of them. Pick one or two! 2️⃣ Gold: Central Banks go on a Buying Spree and HSBC Tokenizes it for Retail Investors Did you notice that gold is breaking new highs this week? A few thoughts about gold, but unlike most gold reports, I will not try to sell you any or a survival bunker. 3️⃣ DREAM ON: EU Banks Dream of Digital Ecosystems and Superapps I give tremendous credit to European banks for rising to the challenge posed by Neobanks, but they are still failing! Delusions of superapp grandeur won’t help. 4️⃣ The Hong Kong and Singapore Rivalry Heats Up! The latest ranking of Global Finance & Fintech Centers is in and Singapore once again beat Hong Kong by a single point! Where is your favorite financial center on the list? 5️⃣ Driving Innovation With GenAI: Why Think When the AI Can Do It For You? For those who think that GenAI can’t innovate, it’s time to rethink this position. Yet still AI’s innovation skills have limits. See the absurd GenAI prompt! 6️⃣ What is GenAI and What if it Can't be Fixed? I have two articles that will help you gain some much-needed perspective on GenAI. Both are MUST READS all are in one easy PDF! We’ve been sold a lot of AI hype but what if GenAI is really broken?     Thoughts?   ✍️Friends comment because 1 comment = 15x likes! ♻️Repost to make this available to your network!   ---------------------- 💥 My name is Rich, I’m not an AI and am here to chat. And you? 🔺 #Fintech, #AI and #Tech at the speed of #Asia and #China. 🔺Onalytica No.4 Global Fintech Influencer with two best-sellers.   Like this post? Want to see more? 🔝 Follow me. ✍️ Click on “view my blog” for more!

🔥 WEEKEND READ🔥 What is GenAI and What if it Can't be Fixed? Today, I have two articles that will help you gain some much-needed perspective on GenAI. Both are MUST READS! 1️⃣ The first from McKinsey, an AI cheerleader if there ever was one. Still, their article explaining AI is a great read! It is worthy of your time as it sticks to the science and eschews overhyped claims of an imminent AI takeover. 2️⃣ The second article is from the FT which asks the most important question that has been ignored amidst the hype: "What if AI can't be fixed?" This question is no joke. It shows how hype is overtaking reality, with noteworthy AI developers even suggesting that GenAIs will get worse! "Large language models produce untrustworthy output, which is then sucked back into other LLMs. The models become permanently contaminated." Sobering? It should be, and this read will give you some much-needed perspective. Note also that the parallels with crypto hype are fantastic! I will close with a wonderful quote that sums it up beautifully: “The burden of proof lies with the people making the extraordinary claims . . . No one is saying AI is hype, we’re saying that your claims of AI are hype.” Thoughts? ✍️Friends comment because 1 comment = 15x likes! ♻️Repost to make this available to your network! ---------------------- 💥 My name is Rich, I’m not an AI and am here to chat. And you?  🔺 #Fintech, #AI and #Tech at the speed of #Asia and #China. 🔺Onalytica No.4 Global Fintech Influencer with two best-sellers. Like this post? Want to see more?  🔝 Follow me. ✍️ Click on “view my blog” for more!