Winchester Uk
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Christopher Williams
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Christopher Williams

Chairman at RTpay
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Bio Chairman of RTpay - a not for profit company focused on improving remittances and aid payments. Consulting service on FX and transaction processing. Career History Banking, foreign exchange consulting, e.commerce, transaction processing

Christopher is Commenting on

Facebook seeks to placate lawmakers over Libra but Mnuchin raises "serious concerns"

  Having just listened to Joe Kernen on CNBC, and Mnuchin last night, I am confused as to what they may be seeing in the Libra project which is totally at odds to my view.  Kernen says Libra has no value, unlike Bitcoin which he sees as a product of assured value. I cannot understand how a 'currency', such as Libra, which is 100% backed by the leading fiat currencies of the world (and all funds held in their government paper or in accounts in their leading banks) is other than secure in a way that Bitcoin can never be.  He also confuses the distributed ledger methods used for Bitcoin, which are both slow and involve heavy usage of power, with the fast, low power requirement of Libra. I understand the US administration may have doubts about Facebook's role, as a US-based company; I am not sure if they are also concerned about the majority of the 27 other companies (with equal roles in the Libra association) which are American? Does it not occur to any of them that it might be better not to block from offering a very valuable payment methodology to the two billion Facebook users around the world (many unbanked), than leave this to the Chinese organizations?  I wonder what the Swiss government makes of a Swiss non-profit association, with multiple large company ownership, being subjected to control from DC?  Perhaps the answer is for Libra to block any business from USA - and service all other countries - until there is an administration there who understand the enormous value of enabling, at the very least, remittances to be transferred at 1% as against the current 7%?  It may mean that only ecommerce merchants from other than USA would be able to work over the network as well? A silly idea, of course, but perhaps not as silly as the objection being expressed in DC, including confusing LIBOR with Libra!       

Regulatory policy must evolve to deal with Big Techs in finance - BIS

  The concern of regulators is mainly regarding KYC and AML, leading to tax evasion and lack of control of money supply. There are issues to be faced, particularly in countries where the black economy is paramount and the fiat currency is frequently being devalued. But there ways to address each of these matters, too long to go into here. What I believe should be appreciated is the enormous good that can be done for often the poorest in the country, i.e. those relying on remittances from abroad or aid from charitable organizations. Being able to cut the costs of such transfers, primarily using Libra (or other new 'currencies') to virtually zero - from an average of 7% - i.e. $70 billion extra value on the $1 trillion pa market - is only part of the value for the recipient government.      The added value is the improvement in GDP and, from that, the better credit rating - leading to lower financing costs on international debt. Note that while the recorded amount of international remittances is currently closer to $600 billion, this excludes the hidden Hawala-style payments; these can be even higher than the official ones in some countries. A structure where the price is down to almost zero will, we believe, bring across much of this business. It will, therefore, in turn help goverments disrupt the remaining criminal activity, for a benefit and improvement in the very areas it is concerned about above, i.e. AML and tax fraud. So, while there is much to be done, hopefully regulators and governments will look at the overall potential for good, not just the risks involved.