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⚡️Hey Zeus Fans! Every week we share the latest news in the crypto and tokenized assets industry, with our comments and thoughts on why it’s important to us, and its users! Here's what’s been going on in the past week:
Q: So, are we correct in thinking that Telegram is better positioned for a successful crypto launch, with strong development and cybersecurity expertise, independence from governments, great interface, a whole development ecosystem, and all the other stuff we love Telegram for? Or should we expect that someone is coming for Telegram too?
A: Telegram has 250 million users around the world, which may easily bring a PayPal size business from the early months after the launch (Paypal currently has 173 million users, processing 578 billion worth of transactions and earning $15 billion on it).
Telegram also faces much less regulation pressure, because it definitely is not too big to fail yet, and the company operates alone, while inviting multiple companies to build applications on TON blockchain independently. Most likely TON will require simple e-payment / crypto licenses in various countries of operation. Worst case – banking licenses, and with 1.7 billion in investments Telegram can afford it.
The interesting question would be, what kind of market should we expect, if Telegram launches first and gets a wide market adoption, and then Libra juggernaut launches after regulatory scrutiny. Should we expect Intel & AMD type of market competition? Or Visa / UnionPay type, considering recent Telegram’s South Eastern Asia and Hong Kong exposure?
2. Asia Leading the Fintech Revolution
There’s a reason as to why we have chosen Asia as our home market, and this article helps back it up. To find the area that leads in the fintech boom you would have to look for somewhere that has a growing consumer base, a growing financial infrastructure, large monetary transactions, and the existence of many large tech companies. This is where Asia thrives.
According to Bloomberg’s article, they explain why Asia is leading the way of the fintech revolution and what’s next for the industry there. According to a 2017 survey conducted by Ernst & Young, Asia is leading the way in consumer adoption of financial technology products. This is due to the fact that Asia and India, the most populous countries in the world, have more than half of adult consumers who say they regularly use fintech services.
"Fintech businesses are particularly adept at reaching “tech-literate yet financially underserved” markets, says Ernst & Young. China and India are both growing quickly, but they lack some of the financial services that appeal to a rising middle class. They also state that more than 4 out of 5 respondents in China said they have used at least one fintech service for mobile money transfer and payments, and more than half reported using one for savings and investments."
Funding for fintech companies also continues to rise, with both strategic investors and private equity firms in the mix. “In the first half of the year, almost $12 billion flowed into venture capital-backed fintechs, and more than a third of it went to companies based in Asia, according to CB Insights”. This shows just how much Asia is becoming the next fintech hub, with major investments and fundraising occurring in the area. We hope that with time, this fintech boom in Asia will continue to grow even more to help consumers and companies equally.
3. EU-Funded Projects in Blockchain Technology
In recent years, the EU has been funding many initiatives related to blockchain and Distributed Ledger Technologies (DLT) by exploring and testing proof of concepts, and pilot projects. Currently, there is a large cluster of different topics and technologies that the EU is funding. This ranges from e-identity and decentralised data management, healthcare and education, privacy and cybersecurity, IoT and smart homes, grids and cities, music and media, industrial technologies, environment and circular economy, and much more! If you follow this link, then you can see the entire list of projects that are currently being funded by the EU.
"In 2020, 100 M€ will be allocated to the European Investment Fund (EIF) for being invested in Venture Capital funds, who will then invest in Artifical Intelligence and/or blockchain start-ups. The 100 M€ invested by the EIF will trigger a total of 300 to 400 M€ of investment by the different Venture Capital funds."
This news can be exciting to many, as we can finally see more investments in blockchain come to fruition. This will also drive blockchain adoption in Europe as these projects span across a wide variety of sectors that can benefit many. Many people still argue the fact that the current state of blockchain can be compared to where the internet was in the 90s, where we see many slow and complicated processes that are making mass adoption difficult. However, with the EU openly funding blockchain technologies, it is only a matter of time until it is fully adopted all around the world.
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