El Salvador takes a risky punt on crypto 7 Sep 2021 Bitcoin is now an official currency in the Central American republic, alongside the U.S. dollar. There are potential benefits for a country that is so dependent on remittances from abroad, but President Nayib Bukele’s pioneering move has way too many downsides.
Crypto poses systemic risks that need swift remedy 7 Sep 2021 Digital currency trading venues are a $2 trln industry while some coins, like Tether, are backed by fiat currencies. If money markets freeze up, their positions are so large that they could have ripple effects. Watchdogs are classically behind in reining in the market.
Cardano joins crypto’s creative destruction loop 2 Sep 2021 The third-biggest virtual currency has doubled in a month, gaining on larger rivals bitcoin and ether. It’s more environmentally friendly, though less useful for the time being. But upstarts like Cardano may help crypto deliver riches, even if today’s investors lose their shirts.
Capital Calls: Amazon, Robinhood, GlobalFoundries 19 Aug 2021 Concise views on global finance: The e-commerce giant may open its own version of department stores; contrary to the stereoptype, Robinhood IPO buyers may be holding rather than flipping; a successful IPO by chipmaker GlobalFoundries would bolster the case for an Arm listing.
Coinbase leans into uncertainty 11 Aug 2021 The $75 bln cryptocurrency exchange had a stellar second quarter as revenue rose more than 10-fold from a year ago. But the company isn’t joking when it says, “Our business is inherently unpredictable.” Retail trading growth is slowing, regulation looms and rivals are moving in.
Viewsroom: Olympic blunders and Robinhood’s IPO 22 Jul 2021 The Tokyo games are struggling with rising Covid-19 infections, corporations pulling out, an unenthused Japanese public and now a bad Holocaust joke. Pete Sweeney and Rob Cox discuss. Meantime, John Foley says Robinhood resembles E*Trade 20 years ago – in good and bad ways.
Robinhood takes E*Trade lessons almost to heart 22 Jul 2021 The online brokerage’s $33 bln IPO valuation looks modest by today’s, if not by tomorrow’s, standards. Like its dot-com-era predecessor, Robinhood is a double bet on jacked-up markets. It can avoid some of E*Trade’s early pitfalls, but risks stumbling into some bigger new ones.
Bob Diamond SPAC takes aim at his former employer 8 Jul 2021 The former Barclays CEO’s blank-check firm is merging with digital-currency operator Circle. Its cheap transactions may one day threaten traditional banks' core business. But a $4.5 bln valuation is premised on breakneck growth, and regulators could easily spoil the party.
Cryptocurrency’s Wild West is in Wyoming 7 Jul 2021 The cowboy state has revamped financial rules to attract bitcoin businesses like Kraken Bank. That puts it ahead of the Fed and other D.C. regulators. But the measures for firms dealing in volatile digital currencies are untested, making it the venue for crypto’s first rodeo.
Capital Calls: Genetic gold rush 28 Jun 2021 Concise views on global finance: A company has shown biotechnology called CRISPR can precisely edit defective genes in humans, fueling investment and squabbles.
Review: Reining in the crypto-fanatics 25 Jun 2021 Ex-Swift executives Gottfried Leibbrandt and Natasha de Terán traverse the payments world in “The Pay Off”. Anecdotes and explanations lend pace and purpose. But despite warnings about central bank digital currencies and other novelties, they ask more questions than they answer.
Bitcoin accounting is a niche problem – for now 14 Jun 2021 U.S. asset-reporting rules aren’t fit for crypto mania. At payments firm Square, bitcoin also distorts revenue. Standard-setters’ inaction rests partly on the dearth of big companies taking the plunge – and partly on the huge significance digital assets could one day accrue.
Capital Calls: U.S. malls are a tale of two REITs 14 Jun 2021 Concise views on global finance: Shopping center operator Washington Prime filed for bankruptcy protection, but the outlook is a bit rosier for premium mall owners.
Bank rules push bitcoin, not blockchain, to fringe 10 Jun 2021 The Basel Committee proposed punitive capital charges for some crypto assets. That will discourage JPMorgan and others from holding or trading in bitcoin. Yet standards-setters are more positive about the underlying technology. It’s a good balance between prudence and progress.
How to turn a software firm into a bitcoin wallet 9 Jun 2021 MicroStrategy’s holdings of the digital currency already make up over half of its $6 bln enterprise value. Now the business-analytics software group has sold $500 mln in junk bonds specifically to buy more. With crypto accounting wacky, it could make for a crazy ride.
Capital Calls: BlackRock/Exxon, Media deals, SPACs 25 May 2021 Concise views on global finance: The giant asset manager will vote for three dissident nominees for Exxon Mobil’s board; boutique adviser LionTree has benefited from a rash of media deals; Lordstown Motors show why blank-check merger projections can’t be relied upon.
Capital Calls: Bitcoin, Procore 20 May 2021 Concise views on global finance: Getting paid in cryptocurrencies loses allure in U.S. President Joe Biden's tax plan; the $11 bln building software firm is a bargain compared to peers.
Bitcoin is, for now, worst of all financial worlds 19 May 2021 The value of the crypto-asset has halved in two weeks, dented by Chinese curbs and Elon Musk’s whimsy. Part of its appeal was the lack of a meddling central bank. Yet others can step into the vacuum and make waves given thin liquidity. It’s also proving an awful inflation hedge.
Bitcoin passes the ransom test 14 May 2021 Sure, the crypto-asset isn’t widely accepted. But its appearance as a ransom in Colonial Pipeline's hack shows it shares useful features with the U.S. dollar – such as being easy to exchange. That unconventional sign of success means regulators are going to get even twitchier.
Capital Calls: Disney misses the mark 13 May 2021 Concise views on global finance: Walt Disney reported nearly 104 million subscribers for its streaming flagship service.