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City of Perth to develop commercial real estate portfolio strategy

More land in the Perth CBD could be brought to market as part of a new direction for the City of Perth.

The board has adopted a real estate performance, investment and disposal policy that will identify properties that can be held for future development or to earn money, sold or bought.

The City will spend between $ 50,000 and $ 100,000 each year for an expert to assess its properties.

Staff review their properties with a view to developing a commercial property portfolio strategy.

The policy will also manage the rental of City properties.

Cr Brent Fleeton said this was the most productive policy the council would adopt.

“As one of the largest real estate owners in the city, we need a policy to guide and govern how the administration manages our portfolio,” he said.

“Previously, the City apparently acted without a comprehensive document approved by council.

“We will be able to see where the obvious opportunities lie. These ground floor parking lots will not always be there.

Cr Liam Gobbert said this would help the City determine if it was getting the best value for its land.

“Personally, I don’t think ground level parking is the best use of land in the center of town,” he said.

“Perhaps there are ideas that can revitalize and rejuvenate and breathe new life into parts of the city that have been lagging behind for so many decades. “

Cr Rebecca Gordon changed the policy so that unsolicited bids for City properties that represented 90 percent or more of market value are still presented to Council.

She said it would allow the board to consider more than dollar value.

“If the City owns land worth $ 1 million and we receive an unsolicited offer for a swimming pool that will be open to the public and they only want to offer us $ 900,000, to tell agents of the City to reject this does not allow consideration of the public interest, ”she said.

“I think it’s still a reasonable 90 percent value.”

She also changed the policy so that community groups had to pay rent in peppercorns instead of nothing.

“We charge people to use lockers, to use toilets, but we will give away millions of dollars in assets for free,” she said.

Cr Catherine Lezer voted against, saying the question of whether rent should be charged or not should be left to the City administration.

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Explain the core and satellite portfolio strategy

A conversation over coffee between two colleagues leads to an interesting explanation of a portfolio building strategy.

Vina: Have you heard of Meena making windfall gains from her small investments? It makes me want to try it too. I felt the exact same thing when cryptos rallied last year. I think it’s a kind of FOMO playing!

Tina: Relax Vina. It’s not like she has the Midas touch when it comes to investing. You can also improve your game by venturing into other asset classes. But be aware of the risk you are taking. I hope you know that every asset class that promises you superior returns also comes with equally superior risks.

Vina: OK! But is there not a way out. I mean, what if you want to generate higher returns than the market, and at the same time contain the risks.

Tina: Have you heard of the Core – Satellite portfolio strategy? It is a strategy that aims to optimize costs, taxes and risks across the portfolio while aiming to maximize returns. Perhaps this approach could help you approach your FOMO.

Vina: I guess the core is the main wallet. But what is the satellite portfolio? Does it keep revolving around the core? Like the Moon around planet Earth?

Tina: No Vina. This strategy works as follows. The core portfolio is made up of funds or other investments that aim to achieve its financial objectives — whether through debt instruments (sovereign or otherwise), funds (ETFs or index funds) and ‘other assets that essentially contribute to reducing costs and long-term volatility. For longer term portfolios, gold can also be part of the core portfolio. The smaller satellite wallet is where you can try your hand at riskier actively managed assets for alpha generation. One can also use his satellite portfolio to save tax by investing in share-linked savings plans or ELSSs. Depending on individual goals and the risk associated with stock selection, direct equity investments may be part of your main or satellite portfolio.

Vina: Why two portfolios? How does this help?

Tina: While the Core helps generate the minimum return required to meet its goals based on its risk appetite, the Satellite Portfolio adds extra spice to those returns. It’s much better than burning your fingers by investing your entire corpus in risky assets, all in the name of looking for alpha.

Vina: Fair point. What is the ratio in which I should divide my portfolio into core and satellite, then?

Tina: While there is no one-size-fits-all approach, most experts advise a 70-80% allocation to the core portfolio. The ideal ratio depends on the type of assets added to your satellite portfolio and the level of risk they would add to your overall portfolio. The idea is to earn the minimum return to achieve your financial goals through investments in your core portfolio. Its satellite investments can range from credit risk funds to thematic or international mutual funds, including direct equity investments. Some also prefer to add alternative investments such as REIT / InvITs, PMS, private equity (including pre-IPOs) and even cryptos to their satellite portfolio. Whichever asset class or classes you choose, losses, if any, should not weigh too much on the overall return of your portfolio.

Vina: Law. Put simply, this strategy seems like a fair way of trying to get the best of both worlds, top returns with a cap on downside risk.

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How to stop crypto from crashing the financial system

Once upon a time, the cryptocurrency realm was a curious side show, a place where criminals did business and devotees had fun at their peril. Not anymore. It is rapidly evolving into a veritable Westworld of finance, where mock investment funds, banks and derivatives allow visitors to take immense risks – risks that could ultimately spill over into traditional markets and the world. economy in the broad sense.

Regulators are struggling to get it all under control. It is increasingly important that they succeed, and soon.

It’s still unclear whether crypto will turn out to be a good thing overall. As money, it has so far failed: Bitcoin’s volatility, transaction costs, and carbon footprint, for example, have made it largely useless for purposes other than speculation and ransomware (and even there it has flaws). That said, the underlying blockchain technology – which allows people from anywhere to transact and create indelible records without relying on a trusted intermediary – may still have uses beyond sale of “official” copies of video clips and commemoration of the fire of valuable works of art. In due course, this could help sovereign states improve their official currencies.

Lately, however, the crypto dwellers have replicated the work of traditional financial institutions, without any regulatory safeguards designed to control them. Left unattended, this is not likely to end well.

Coin 1 is stablecoins, representations of fiat currencies that work on the blockchain. They mimic bank deposits by claiming to be worth, say, exactly one US dollar per coin. But unlike banks, the organizations that run them have no deposit insurance, no recourse to emergency loans from the Federal Reserve, and no limits on where to invest the fiat currency reserves that back them up. Tether, the company behind one of the most popular stablecoins, has previously been caught lending its dollar reserves to its affiliate crypto exchange, and still claims to hold potentially volatile assets such as precious metals and others. digital tokens.

History has repeatedly shown how dangerous such a bare combination of deposit-like liabilities and risky investments can be. Even rumors of losses can trigger a buyout rush before the money is gone, with systemic consequences. Suppose, for example, that stablecoins become big buyers of commercial paper, a short-term debt that companies issue for such purposes as purchasing supplies and paying employees. (Tether says he already holds tens of billions of dollars of such paper.) A sudden wave of buyouts could starve the market for cash, rendering companies unable to make payroll – similar to what happened in 2008, when the Lehman Brothers bankruptcy triggered a run on money market funds that devastated the commercial paper market (a vulnerability that itself has yet to be fully addressed).

Exhibit 2 is the burgeoning world of decentralized finance, or DeFi. Working on the Ethereum blockchain, using “smart contracts” capable of automating transactions, often amorphous teams of developers have set in motion a host of applications. These include exchanges, banking-like platforms, and derivatives brokers where people can lend, borrow, and place high leverage bets. Many services have decentralized governance systems that leave decision making to an ever-changing community of users. Scams abound. Hackers frequently find ways to drain funds, as happened with the original stand-alone blockchain organization, the DAO. Think of it as a full-service parallel banking service with no one in charge.

So far, the sums at stake are relatively small – the equivalent of tens of billions of dollars, compared to the hundreds of trillions that roam global capital markets. But that could change quickly, with far-reaching repercussions, especially given the extent of leverage involved.

Imagine a group of hedge funds making a big bet on cryptocurrency. In DeFi, an algorithm would typically determine how much of their own money, or “margin,” they would have to commit to get a given amount of exposure. That could be 20 percent, enough to cover a $ 20 billion loss on a $ 100 billion investment. In the highly volatile field of cryptography, however, setting the margins is a tricky task. One mistake, hack, or abrupt market move could lead to a recalculation of the algorithm, suddenly forcing hedge funds to deliver billions more by selling assets in other markets – precisely the kind of contagion that tends to trigger larger collapses. And that’s just one of many possible scenarios.

What should a regulator do?

A promising solution for stablecoins: to force them to deposit their reserves only in traditional banks, which in turn would park the money at the Federal Reserve. This would make them equivalent to federally insured deposits, leaving them to compete on the quality of the payment services they provide, instead of profiting from unduly risky investments.

Properly regulated, stablecoins could have beneficial uses, such as making it easier and cheaper for migrant workers to send money to their families back home. The payment “rails” they help develop could even one day serve as an infrastructure for digital money issued directly by sovereign central banks.

DeFi will be more complicated. One of the challenges will be defining what a platform actually does: is it like a bank, an exchange, a stock broker, anything else? Another will be to determine who to hold accountable in a decentralized organization: developers, users? Multiple agencies will need to cooperate and new legislation will likely be needed to empower them.

The overarching goal should be to ensure that similar services compete on the merits, rather than on the degree of regulation they face or their tolerance for crime. In cases where this is not possible, some may need to be banned.

To their credit, global regulators are aware of the issues and are starting to engage. They have thought deeply about the options for dealing with stable coins. They met with DeFi participants to better understand the risks. They formulated concrete proposals to ensure the security of traditional banks. But they must act quickly. It could become very important and very dangerous, very quickly.

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Despite crash, wave of crypto threatens financial system – Nigeria – The Guardian Nigeria News – Nigeria and World News

Nigerians bet $ 398.5 million on two stock exchanges in one year
• Transactions increase by 50% since CBN restriction
• The plunge plunges more people into the financial crisis
• Deposit mobilization threatened as stablecoins gain popularity

A severe crisis could loom as a growing number of Nigerian youth turn to large-scale digital currency investing, despite a financial regulatory restriction imposed by the Central Bank of Nigeria (CBN) in February.

In February, the CBN banned financial institutions from processing transactions relating to decentralized digital currencies, otherwise known as cryptocurrencies, which number more than 4,000 in digital circulation.

The Guardian’s findings show that more young people, taking advantage of peer-to-peer opportunities, have embraced the relatively new investment window despite the ban. Even the recent crash that saw Bitcoin, the flagship asset, lose more than 50% of its price, has not deterred investors.

Bitcoin has traded between $ 28,000 and $ 38,000 in the past few weeks. At the height of the bull run, it fell to $ 68,800 before a sudden drop. But Bitcoin, which is considered gold in the crypto world, got lucky. Some pieces (as they are affectionately described by enthusiasts) have lost more than 70% of their price.

One coin, Shiba Inu, for example, hit $ 0.00005 after Binance listing saw it gain over 2000% in days, deflated to $ 0.0000087 at time of publication . Komodo also fell from an all-time high of $ 4.7 recorded in April to less than a dollar. At time of printing, it was trading at $ 0.6.

Nigerian new adopters, who threw away their savings in April when prices hit the ceiling, are now biting their fingers. The situation is worse for those who have played with borrowed funds even at one point, Elon Musk, founder of Telsa and biggest proponent of digital currencies, warned that it was “not wise to invest money savings. ‘a life’ in fashion.

The number and volume of Nigeria’s resources entering into trade has increased dramatically, the analysis suggested. Drug addicts, who disguise crypto-related transactions to evade bank sanctions, have continued to increase their holdings as new entrants, including housewives, are promised that the current crash is normal and momentary.

Data from Usefultulips.org, analyzes that track exchanges on LocalBitcoins and Paxful, found that the volume of transactions from Nigeria increased by about 50% between February, when the CBN waved its stick, and June.

The two major exchanges pooled a total of Nigerian $ 32.5 million compared to $ 21.9 million made in February and $ 18.4 million invested in January. In January 2016, the total investment channeled through the platforms was $ 6,035 million.

Nigeria is the largest market in sub-Saharan Africa in terms of growth and investment volume. His investment in LocalBitcoins and Paxful in the past year alone is $ 398.5 million. It is followed by Kenya with $ 144.5 million in investments.

Only Nigeria and South Africa have seen stable adoption growth since 2016, while the trend among other early African adopters such as Rwanda, Malawi, Angola and Tanzania is anemic.

Usefultulips.org’s estimate captures only Naira-denominated transactions, while Nigerians outside the country, who would be among the main drivers of investment, are obviously excluded. The Guardian has been told that more than 70 percent of young Nigerians in Malaysia, Ghana, South Africa and Europe are dependent investors.

In the past few days, a photo of a ‘wanted alive’ Nigerian who is believed to have disappeared with N28 million linked to crypto transactions from Malaysia has been trending on WhatsApp.

The numbers captured by the digital platform also exclude activity on Binance, the main exchange in terms of volume, and other Nigerians also frequented as they seek a quick fortune.

Binance was forced in March last year by Nigeria’s interest in launching P2P trading services for the naira, providing an open platform for users to trade cryptocurrencies using the currency without any fees from transaction on Binance.com and on the Binance mobile app. The naira became the first African fiat currency supported on the Binance P2P platform.

“We believe Africa is a blockchain continent. We no longer need to bank the unbanked. We can provide cryptocurrency financial services to them directly. Nigeria is a vibrant center of innovation with a great passion for cryptocurrencies, ”said Binance CEO Changpeng Zhao.

On CoinDesk TV’s First Mover show in June, Paxful CEO Ray Youssef said: Reflect the “big momentum” around cryptocurrency adoption. He concluded that Africa is leading the global adoption of cryptocurrency.

As the next testimonial session lingers for first-time adopters, thousands of Nigerians are now paying the price for the greed and emotion that rules crypto investing. The Guardian was put in confidence by a trader who had invested 1.5 million naira for a family project without her husband’s knowledge.

“I bought a few pieces, a neighbor told me they had enormous potential. I bought it in April when the prices were really high, but he assured me that they would appreciate it sooner than expected and that I would double the amount before July (this month) when I need it. . I will be extremely lucky if I make 30 percent of the investment if I liquidate it today. I don’t know what to do, ”she said.

This is because many new investors do not know what to do with the deflated investment. But experts warn – “Hold on, don’t sell and if you’ve got the money set aside, buy the dips.” Buying the dip means not panicking but expanding your portfolio while others empty their assets for fear of more losses. But no expert knows when the current crash will bottom out, so those buying the lows a month ago suddenly realized that they were buying at a higher price.

JP Morgan and other investment banks, who have tried to predict the next market move, do so with the greatest probability. A few days ago, JP Morgan predicted that the market came out of the bearish mood when Bitcoin regains its share of over 50% of the total market.

Investment experts have called the ongoing collapse in coin values ​​a “big deal.” Recently, Bitcoin assets have experienced a statistical pattern technically described as a death cross as opposed to a golden cross. Death cross, in the investment market, refers to a rare downtrend when an asset’s 50-day moving average (MA) crosses its 200-day MA. Significant cross-death events in other markets include the Wall Street Crash of 1929 and the Financial Crisis of 2008.

But experts have differed widely, holding binary positions on the meaning of the death cross at the present time. Some see it as a blip, a kind of price correction that will mark the start of a new rally to a new high while others think it is the start of a long downtrend.

This is not the first time that assets have suffered huge losses shaking the market. Amid the fear of COVID-19 last year, Bitcoin lost 61%. In 2018, it lost 84% and 30% in November 2017, while 40% had been wiped out two months earlier. As early as January 2012, when the asset was a few dollars, it lost 43%.

Between that date and 2017, it lost at least 80% on several occasions due to massive dumping which was only followed by a new high. The strength to stand up after his fall has been a source of consolation for those who have lost hard-earned resources due to the pumping and dumping of Musk’s entry into the market.

For Nigerian “gurus”, the USDT, a stable currency at par with the dollar, has become an ally. They buy crypto assets when they think the market is going down and convert to stablecoins when they feel it’s going to plunge again, which has become a common occurrence, said investor Chima Okereke.

The survey also suggested that many young people, who have lost confidence in the future of the naira, inflate their portfolios in USDT as an alternative window of savings to the naira. This culture that is developing very rapidly with the middle class also enrolling in crypto exchanges for purposes (savings) may threaten the country’s ability to mobilize savings for medium and long term investment. Stable currencies do not fall or appreciate on trade.

Professor Ken Ife, consultant to ECOWAS and other multinational organizations, said young Nigerians are exploring alternative investments due to the challenge of the economy.

He admitted that banks would suffer from the drain of resources, but observed that the entire economy would benefit as investors made more money and liquidated their assets to spend them.

“I’m not worried about the trend because they won’t continue if they don’t make money. At some point, the returns on the investment would be repatriated to the country to be spent, ”noted Ife.

Bitcoin is still banned in Nigeria. However, the CBN has since announced its intention to launch a digital currency soon.

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Financial Strategy Book Details How a Widowed Spouse Can Use a Reverse Mortgage

For those facing difficult and unexpected life events, one of the heaviest and most difficult things to deal with is household finances. A book written by a certified financial planner adapts the book’s topic specifically to this topic and, in one chapter, details how a reverse mortgage could be used strategically for someone who has suffered the loss of a spouse.

This is according to a chapter of “Inheriting Your Spouse’s IRA: The Widow’s Guide to Keeping More of Her Assets,” written by columnist, entrepreneur and Certified Financial Planner (CFP ™) Bill Harris, published late last year. . A chapter specifically detailing how a reverse mortgage can be incorporated into such a spouse’s financial plan was recently reprinted in The Street, and explains specifically why a reverse mortgage might make sense to some, and how conversations about the category of products have evolved in recent years. .

“Each month the loan balance increases as interest and fees are added,” Harris explains in the book. “As the loan balance increases, it reduces the equity in the home. The owner (s) or their heirs will eventually have to repay the loan, often by selling the home or buying it at its appraised value when the loan matures. As a “non-recourse” loan, the borrower (or the estate) is not responsible for any shortfalls. “

Some reverse mortgage professionals may dispute some of the specific terminology Harris uses to describe how the product works, but will likely be encouraged by the recognition of the improved reputation of reverse mortgages in recent years.

“Many financial experts have started to think about reverse mortgages strategically,” Harris writes. “A paid home is an asset, like a retirement portfolio. They consider that withdrawing money from the house is no different from spending a wallet. “

Harris offers a few scenarios in which a reverse mortgage can help a surviving spouse financially, including using the proceeds of a reverse mortgage to delay taking Social Security benefits until age 70; allow a portfolio to grow in a “rising market” instead of using it to pay for living expenses; reimburse costly services like long-term care or taxes triggered by Roth IRA conversions; or using the proceeds of a reverse mortgage to finance home renovations that can more easily age in place.

However, using such a product may not be universally optimal in all situations, Harris points out, echoing the sentiments of many other finance professionals who have put an asterisk on their descriptions of reverse mortgages.

“Most Americans have a significant portion of their wealth tied up in their homes,” Harris writes. “A reverse mortgage allows a widow to tap into that equity. However, a reverse mortgage is not a panacea. Careful consideration is essential before entering into a reverse mortgage deal.

Read the chapter extract homeless.

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Currency mortgages threaten Polish financial system, bank governor says

WARSAW, July 2 (Reuters) – Legal risk linked to foreign currency mortgages has become the main threat to the stability of Poland’s financial system, Central Bank Governor Adam Glapinski said on Friday.

Thousands of Poles took out loans in Swiss francs over a decade ago to take advantage of lower interest rates, but faced much higher costs when the value of the Swiss currency soared. . Many have sued the banks for terms they deem abusive.

Banks and mortgage lenders were left in limbo in May when the Supreme Court delayed guidelines on how lower courts should handle cases.

The court asked institutions such as the central bank, the financial regulator KNF and the human rights ombudsperson to submit opinions on the matter.

“The legal risk of the foreign currency loan portfolio has increased and has recently become the main threat to the stability of the national financial system,” Glapinski said in response to questions from the court.

“To date, the absence of uniform case law creates uncertainty that is detrimental to both banks and borrowers, as it makes financial planning for the future difficult for both parties. “

The next sitting has not yet been set, but the first president of the Supreme Court Malgorzata Manowska has said it should take place in September. (Reporting by Alicja Ptak; Editing by Philippa Fletcher)

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Equalizer: Changing the Financial System with Flash Loans

The DeFi (Decentralized Finance) marketplace is becoming more and more popular as it grows considerably. A flash loan is a relatively new type of loan that is popular on DeFi platforms and allows borrowers to take out a loan for a very short period without any collateral to perform specific tasks.

Pain points of the current loan system

A loan system has been around for a very long time but the basic concept remains the same, a creditor / lender lends a good or a good to a borrower in exchange for the repayment of the principal.

All institutional lending systems have three main characteristics, namely duration, risk of loan default and interest rate. Although the system has evolved over time, one of the main problems encountered in the system is that of structural weakness due to the centralized nature of the creditor. The need for collateral and high risks remain a problem that needs to be addressed for the traditional lending system.

Decentralized lending flourished with the advent of blockchain, especially with the introduction of smart contracts. DeFi took the idea forward and provides users with conventional banking services such as loans, asset swaps, savings accounts and checking accounts in a decentralized manner.

Flash loans offer a solution to the problems faced by the current loan system with its instant and unsecured process. They allow a user to borrow funds and repay them with interest without any collateral within the same blockchain transaction.

Flash loan characteristics

Flash loans allow a user to borrow an amount instantly without any collateral on the sole condition that liquidity is returned to the pool within a block of transactions. If the borrower does not repay the amount, the entire transaction is rolled back to undo the actions that have been performed up to that point, this is done using smart contracts.

There are a few key differences between traditional loans and flash loans-

  • Lenders are not at risk in the case of flash loans. The two major risks encountered with traditional loans are the possibility of borrower default and liquidity risk, both of which are eliminated in the case of flash loans.
  • The loan amount is limited by the funds available rather than the creditworthiness of the user. Since lenders have zero risk and zero opportunity cost, flash loan can have many use cases.
  • As mentioned earlier, the lenders run no risk and hence the need for any collateral is eliminated.

How to use flash loans?

Flash loans can have several use cases that could prove to be beneficial for lenders, borrowers and the DeFi ecosystem.

  • Arbitration– Arbitrage is one of the most common use cases for flash loans. Even after taking into account market slippage, liquidity, transaction fees, and possible interest charges, the innate characteristics of flash loans prove to be beneficial in this case.

Source: Equalizer White Paper

    • Lightning strike– The idea behind flash keystroke is to allow instant keystroke of an arbitrary amount of any asset that would exist only during a trade and is burnt at the end of that trade cycle. The flash strike takes into account whether cryptocurrencies are inflationary or deflationary in nature. This use case is still under development and may be explored further in the future.
    • Reverse charge and liquidation– Liquidators do not need to hold volatile stocks. In fact, they can borrow flash from a large platform, pay off on behalf of the borrower, release the deposit, exchange it for the token in which the flash loan was taken out, pay off the loan, and earn bonuses. . The process seems very elaborate but all of these steps are done automatically with the flash loan agreement.
    • Refinancing of loans– Users could use flash loans to track better interest rate and unlock the safe without any external capital.

    Creating the future of flash loans

    Although there are platforms that offer flash loan as a service, it is generally considered an additional service. Since these platforms don’t particularly focus on the flash loans aspect, they have very little in terms of the scope of the flash loans they offer. Creating a platform that focuses on it as a central principle was the main idea behind Equalizer.

    Equalizer is a one-of-a-kind flash lending platform that has been designed specifically to overcome the hurdles faced by its predecessors and fulfill the key function of flash lending.

    The platform is built on a scalable infrastructure that helps it manage the growing trading volumes of the decentralized network.

Source: Equalizer White Paper

Equalizer brings together liquidity providers and borrowers in their flash loan market. Liquidity providers receive incentives in the form of passive income from the same token they provide as liquidity and also receive Equalizer governance tokens commensurate with their loan term and funds. While borrowers have access to a number of highly liquid tokens that can be used to trade, execute market making activities, and make profits on liquidation opportunities.

Equalizer sees flash loans not only as a tool, but also as a valuable element that could facilitate the growth and stability of the DeFi ecosystem. Their goal is to become pioneers in bringing reliable and inexpensive flash loan services to DeFi.

The platform was designed by incorporating a multi-chain and crossover infrastructure that helps it multiply the number of tokens listed as each chain has its own tokens. Thus, Equalizer has no limitation on the number of tokens listed there with respect to a particular string.

Equalizer’s business model

Equalizer is focused on providing its users with a basic flash loan service. For this reason, they have the opportunity to adapt to market conditions in the future and grow horizontally across multiple chains and larger volumes vertically.

Since Equalizer is fully dedicated to the cause of flash loans, their goal is also to create a community platform based on instant governance.

Source: Equalizer White PaperThe liquidity providers on the platform have access to a safe without the risk of losing their funds in addition to the profits depending on the use of the safe. They also have the option of being part of the platform governance protocol. On the borrower side, the Equalizer platform offers a reliable and easy-to-use platform specializing in flash loans.


As flash loans gain popularity as a relatively new and lucrative concept provided by DeFi platforms to their users, a platform entirely dedicated to the idea aims to make the process simpler and more profitable at the same time. for liquidity providers and borrowers.

Equalizer recognizes the potential of flash loans and its main goal is to grow and become a pioneer of the DeFi ecosystem towards it. Since it is built on a scalable infrastructure, Equalizer can handle growing loan and borrowing demands in a decentralized manner. With the growing use cases of flash loans, Equalizer will seek to harness the potential of flash loans and become a pioneer in DeFi.

For more information, see their website.

Disclaimer: This is a paid post and should not be construed as news / advice

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The major categories record “medium” risks for the financial system: RBI survey

The RBI’s systemic risk survey in April-May found that broad categories – global, macroeconomic, financial markets, institutional and general – had “medium” risks to the financial system. This is an improvement over the “high” institutional risk of the previous two survey cycles.

In the main categories, however, this time some components were rated as “high” risk.

For example, commodity price risk, domestic growth and inflation, budget deficit, corporate vulnerabilities, stock price volatility, bank asset quality and capital requirements, growth credit and cyber risk were high, while the risks to global growth and the pace of infrastructure development were high. considered to have decreased.

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Mexican Finance Minister Confirms Cryptos Banned From Financial System

A senior Mexican official on Monday reiterated the ban on the use of cryptocurrencies in the country’s financial system.

Arturo Herrera, Mexico’s finance minister, said cryptocurrencies are not legal tender and are not treated as currencies under the country’s current regulatory framework.

These bans should not be lifted in the short term, Herrera noted during a presentation to the Financial Action Task Force, a global anti-money laundering group.

Related: Bitcoin’s ‘Puell Multiple’ Sends Misleading Bullish Signal As China Bans Mining

Lee este artículo fr Spanish.

The announcement comes after billionaire Ricardo Salinas Pliego, a famous Bitcoin bull, said on Sunday that he was working to make Banco Azteca the number one bank in Mexico. accept cryptocurrency. Salinas is chairman of Grupo Salinas, the bank’s parent company.

Herrera’s comments were not explicitly linked to Salinas’ engagement, but came hours after the businessman’s announcement.

Herrera said his secretariat will issue a four-page statement detailing the government’s position.

Related: Bitcoin Gaining Momentum and Facing Resistance of Nearly $ 40,000

In a joint statement, the Central Bank of Mexico, the Secretary of Finance and the National Banking and Securities Commission clarified that cryptocurrencies are neither legal tender assets nor currencies under the current legal framework. Additionally, they cautioned against the risks involved in using cryptocurrencies.

The document consists of four pages and has been described by Herrera as “exceptionally extensive”.

The three entities reiterated the warnings they issued in 2014, 2017 and 2019 regarding the risks of crypto as a form of exchange, store of value or other form of investment.

Further, the document states that financial institutions in Mexico are not permitted to process virtual assets such as bitcoin, ether, XRP and others, “in order to maintain a healthy distance between them and the financial system. “.

Financial institutions that conduct or offer transactions with virtual assets without authorization will be in violation of the regulations and will be subject to applicable penalties, the report adds.

Mexico is the home of Bitso, Latin America’s largest cryptocurrency exchange. In May, the company raised $ 250 million in its Series C funding round and reached a valuation of $ 2.2 billion.

Monday’s statement claims the government has not allowed the collection of deposits from the general public “through blockchain-related technology schemes or distributed ledgers, called stablecoins.”

In May, Bitso CEO Sergio Vogel told CoinDesk TV’s “First Mover” program that the exchange, which has 2 million users, has seen a surge in demand for dollar-linked stablecoins. .

Bitso did not immediately respond to requests for comment from CoinDesk.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Warnings echoing the risk to the global financial system from cyber attacks

A recent report from the World Economic Forum (WEF) and Carnegie Endowment for International Peace warned of the vulnerability of the global financial system to cyberattacks. The report follows a simulation of the same scenario by the World Economic Forum.

A similar warning was issued by the Financial Services Information Sharing and Analysis Center (FS-ISAC) whose members include Bank of America, (BAC) – Get the Bank of America Corp report Wells Fargo, (WFC,) – Get the Wells Fargo & Company Report and CitiGroup, (VS) – Get the report from Citigroup Inc..

The main conclusion of the reports of these think tanks and others is to promote greater coordination between financial authorities, the financial sector, law enforcement and national security agencies.

Advisors to the joint WEF-Carnegie Endowment project include representatives from the US Federal Reserve, the European Central Bank and the International Monetary Fund (IMF), banks such as JP Morgan Chase, JP Morgan Chase Bank of America, agencies responsible for law enforcement like INTERPOL and the US secret services and giants like Amazon, (AMZN) – Get the Amazon.com, Inc. report and Accenture, (ACN) – Get Accenture Plc Class A Report.

As the WEF-Carnegie Initiative report states, “protecting the international financial system can be a model for other sectors,” adding that “focusing on the financial sector provides a starting point and could open up the process. the way to better protection of other sectors in the future. “

Consolidation of authorities at this level raises red flags for many privacy rights organizations who believe that the use of technologies such as facial recognition, biometric identifiers and vaccine passports can further erode the privacy and increase the collection of data on individuals.

The balance between privacy and security continues to be debated.

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