Peter Krauth, a silver market analyst and author of “The Great Silver Bull,” has predicted an upcoming silver shortage produced by the increased demand for the precious metal for different applications. Krauth states that demand for silver has outpaced supply, and there are probably 12 to 24 months of silver available before inventories run out. […]
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Goldman Sachs Analyst Says Consumers Under Severe Pressure as Stagflation Intensifies
Goldman Sachs analyst Scott Feiler warns of a bleak outlook for consumers as stagflation looms, with a bearish stance on consumer cyclicals and defensive stocks. Amidst the administration’s troubled Bidenomics, heavily indebted consumers face mounting pressures as pandemic savings dry up and economic growth falters. “Our desk is getting bearish on consumer and our soft […]
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Mastercard and Feedzai Collaborate to Increase Crypto Fraud Protection for 900 Million Consumers Globally
Mastercard is collaborating with Feedzai to “increase crypto fraud protection for hundreds of millions of consumers.” In pairing the technologies offered by the two companies, “Feedzai’s customers, who collectively protect over 900 million consumers globally, will now be able to identify and prevent transactions involving fraudulent crypto exchanges before they occur,” Mastercard explained.
Mastercard Expanding Crypto Fraud Protection
Mastercard announced Monday that the company is collaborating with Feedzai, a leading provider of financial crime and risk management solutions, to “increase crypto fraud protection for hundreds of millions of consumers.”
The payment giant detailed that Feedzai will “leverage Mastercard’s Ciphertrace crypto intelligence solutions to reduce the risk of account-to-account fraud flowing into crypto exchanges.” This integration will involve integrating Mastercard’s Ciphertrace Armada into Feedzai’s Riskops platform, which analyzes transaction data totaling over .7 trillion annually. Riskops also offers a comprehensive suite of artificial intelligence (AI)-based solutions designed to stop fraud and financial crime at the source.
Noting that “Ciphertrace Armada allows banks, crypto exchanges, wallets, crypto ATMs, and other virtual asset service providers (VASPs) to better assess the fraud risk in digital asset transactions,” Mastercard described:
In pairing these technologies together, Feedzai’s customers, who collectively protect over 900 million consumers globally, will now be able to identify and prevent transactions involving fraudulent crypto exchanges before they occur.
“The combined intelligence means that financial institutions can stop transactions involving high risk and potentially fraudulent crypto exchanges in real time, alerting the customer to the risk before money leaves their account,” the payments giant noted.
The announcement further explains that currently, an estimated 40% of fraudulent transactions directly flow from a bank account to a cryptocurrency exchange. As per Feedzai’s latest report on global anti-money laundering compliance, effective monitoring of cryptocurrency remains one of the significant challenges for financial institutions.
Feedzai CEO Nuno Sebastião commented: “Criminals use crypto as part of their scam strategies, with the scam proceeds often ending up being funneled to an unauthorized or otherwise risky crypto exchange. It also continues to remain a challenge for AML professionals as criminals become ever more sophisticated and money laundering techniques advance.” The executive continued:
This global partnership will further empower banks to protect their customers’ against the risks associated with crypto and instill further trust in the ecosystem.
What do you think about Mastercard and Feedzai collaborating to expand crypto fraud protection for hundreds of millions of consumers worldwide? Let us know in the comments section below.
Blockchain Technology Can Guarantee to Consumers ‘That Their Diamonds Have Been Ethically Sourced’ — Botswana President
According to the president of Botswana, blockchain is one of the innovative solutions that the global diamond industry can use to ensure “blood diamonds” are excluded from formal markets. Using blockchain not only assures consumers but also enables them “to make informed choices and encourages responsible practices throughout the supply chain.”
Minimizing Impact on the Environment
Botswana president Mokgweetsi Masisi recently touted blockchain technology as an innovative solution which can help the global diamond industry eradicate so-called blood diamonds. Masisi argued that by using this technology, the global diamond industry is able to prove to stakeholders that diamonds in formal markets are sustainably sourced.
In his speech at a recently held meeting of diamond industry stakeholders, Masisi argued that the global diamond industry’s objective of achieving sustainable diamond mining requires investment in research and innovation. He suggested that when such investments are made, they not only “minimize the impact on the environment” but also help to remove blood diamonds from official markets.
Remarking on blockchain’s likely impact on the global diamond industry, Masisi said:
“Transparency and traceability are vital components in the assurances that we as diamond-producing countries must provide to our global customers. Blockchain technology, with its immutable ledger, can provide consumers with the guarantee that their diamonds have been ethically sourced. It empowers consumers to make informed choices and encourages responsible practices throughout the supply chain.”
Building a Prosperous Diamond Industry
According to a United Nations definition, blood diamonds aka conflict diamonds, refer to any diamond which is extracted in areas controlled by forces opposed to legitimate, internationally recognized government. Revenues from such diamonds have in the past been used by some African warlords to fund their activities.
To curb the role of these diamonds in fueling conflicts in Africa, major global diamond-producing countries including Botswana agreed to a system of certifying the gemstones. However, more than a decade after the so-called Kimberley Process Certification Scheme came into force, blood diamonds are still reportedly finding their way to global markets.
However, according to Masisi, it is only through innovations such as blockchain that diamond-producing countries “can address these challenges and build a more sustainable, responsible, and prosperous diamond industry.”
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FTC Warns Consumers Crypto Deposits Are Not FDIC Insured
The U.S. Federal Trade Commission (FTC) has warned consumers that crypto deposits are not insured by the Federal Deposit Insurance Corporation (FDIC). “That money isn’t FDIC insured or protected if the crypto company goes under,” the agency cautioned. “If something happens, the government may not have an obligation to step in and help get your money back.”
FTC’s Crypto Warning
The U.S. Federal Trade Commission (FTC) issued a Consumer Alert on Thursday warning that crypto assets are not FDIC-insured. The FDIC is an independent federal agency that provides insurance for bank deposits held by member institutions of up to 0,000 per depositor.
“If your bank is FDIC insured, you’re protected up to 0,000 if the bank fails,” FTC’s Consumer Education Specialist Cristina Miranda explained. In contrast, she stressed:
The funds you deposit with a crypto-based financial services provider … That money isn’t FDIC insured or protected if the crypto company goes under.
She then brought up Voyager Digital LLC, a crypto-based financial services provider, stating that the company “misled people with claims that money deposited through a ‘Voyager App’ was FDIC insured if anything went wrong.”
Miranda clarified: “Despite its claims, Voyager was never an FDIC insured bank. And FDIC insurance doesn’t cover crypto (also called crypto assets.) So, when Voyager eventually failed and filed for bankruptcy, people with accounts were locked out and lost money.”
Voyager and its affiliated companies have agreed to be permanently banned from offering, marketing, or promoting any products or services that could be used to deposit, exchange, invest, or withdraw any assets, the FTC explained. The government agency advised:
Know that crypto deposits are not FDIC insured, period. If something happens, the government may not have an obligation to step in and help get your money back.
What do you think about FTC’s warning that crypto deposits are not FDIC-insured? Let us know in the comments section below.
Australian Regulator Sues Etoro to ‘Protect Consumers From High-Risk CFD Products’
The Australian Securities and Investments Commission (ASIC) has filed a lawsuit against the crypto platform Etoro. The lawsuit relates to Etoro’s contract for difference (CFD) product which ASIC alleges to be in breach “of design and distribution obligations and of Etoro’s license obligations to act efficiently, honestly and fairly.” The regulator said it wants the Federal Court to issue declarations and pecuniary penalties against Etoro.
Etoro’s Broad Target Market
The Australian Securities and Investments Commission (ASIC) announced on Aug. 3 that it had filed a lawsuit against the crypto trading platform Etoro. The regulator alleges that the firm’s contract for difference (CFD) product is in breach “of design and distribution obligations and of Etoro’s license obligations to act efficiently, honestly and fairly.”
In a statement, the ASIC revealed that the lawsuit is focused on the appropriateness of the crypto platform’s target market as well as the methods used to assess if retail clients fall inside the target market for CFDs.
“ASIC alleges Etoro’s target market for the CFD product was far too broad for such a high-risk and volatile trading product where most clients lose money, and that the screening test was wholly inadequate to assess whether a retail client was likely to be within the target market,” the regulator said.
To support its assertion about Etoro’s CFD, the Australian regulator alleges that in the period between 5 October 2021 and 14 June 2023, nearly 20,000 of the crypto platform’s clients lost money trading CFDs. The ASIC also points Etoro’s own warning about retailer traders’ seemingly dim prospects when trading CFDs.
Warning to CFD Issuers
Meanwhile, in her remarks accompanying the regulator’s press release, Sarah Court, ASIC’s deputy chairperson, said the Etoro lawsuit should remind industry participants of their obligations towards retailer traders. She added:
CFD issuers must comply with the design and distribution regime and cannot simply reverse engineer their target markets to fit existing client bases.
According to the press release, ASIC wants the Federal Court to issue declarations and pecuniary penalties against Etoro.
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FTC Slaps Crypto Lender Celsius With $4.7B Fine for Deceiving Consumers and Mismanaging Deposits
On Thursday, following the U.S. Securities and Exchange Commission (SEC) suing the insolvent crypto lender Celsius, the Federal Trade Commission (FTC) divulged a settlement with the firm and imposed a .7 billion fine for “duping consumers.” Nevertheless, the penalty will be deferred to enable Celsius to return its remaining assets to consumers in bankruptcy proceedings.
FTC’s Settlement to Be ‘Suspended to Permit Celsius to Return Its Remaining Assets to Consumers in Bankruptcy Proceedings’
The now-defunct crypto lender Celsius has incurred a fine from the FTC for allegedly hoodwinking investors and “squandering billions in user deposits.” The company contended that it possessed “more than enough” assets to safeguard customer deposits, but according to the FTC, this was a spurious claim. The platform and its affiliated entities are indefinitely barred from managing customer assets, and three executives have been charged.
Per the FTC, the case against Alexander Mashinsky, former CEO and co-founder of Celsius, along with his fellow co-founders Shlomi Daniel Leon and Hanoch “Nuke” Goldstein, will advance in federal court since they haven’t reached a settlement. The FTC disclosed that these individuals, who held pivotal positions in the company, have opted not to settle the matter extrajudicially.
“Celsius touted a new business model but engaged in an old-fashioned swindle,” Samuel Levine, the director of the FTC’s Bureau of Consumer Protection stated. “Today’s action banning Celsius from handling people’s money and holding its executives accountable should make clear that emerging technologies are not above the law.”
The FTC’s complaint against Celsius succeeds the SEC lawsuit lodged against the bankrupt crypto lender. “Defendants made numerous false and misleading statements to induce investors to purchase CEL and invest in the Earn Interest Program,” the SEC lawsuit issued an hour before the FTC press release states. In this specific litigation with the U.S. securities watchdog, Celsius is named alongside former CEO Mashinsky.
What do you think about the FTC’s complaint against Celsius and three executives? Share your thoughts and opinions about this subject in the comments section below.
Record High Credit Card Debt: 55% of Americans Concerned About Repayment as Inflation Pushes Consumers to Credit Reliance
According to a Newsweek poll conducted by Redfield & Wilton Strategies, 55% of Americans are “very” or “fairly” concerned about paying off credit debt this year. The total credit card balance of Americans is at its highest point since the U.S. Federal Reserve began tracking the data, and current metrics indicate that Americans are using credit to mitigate inflationary pressures.
U.S. Consumers Rely on Credit Cards to ‘Navigate Costs Associated With Inflation’
While the most recent consumer price index (CPI) report from the U.S. Bureau of Labor Statistics indicates a cooling of inflation in the United States, Americans have turned to credit cards to offset the rising prices. According to a poll published by Newsweek and Redfield & Wilton Strategies, which surveyed 1,500 American citizens on May 31, approximately 30% of respondents have debt ranging from ,000 to ,000. Among Americans aged 22-34, around 22% have accumulated over ,000 in debt, while 21% of U.S. citizens aged 35-44 also carry the same level of debt.
Melissa Lambarena, a credit cards expert at Nerdwallet, stated to Newsweek that U.S. “consumers have been actively using their credit cards to navigate costs associated with inflation.” The Nerdwallet executive noted that increasing prices have caused some Americans to depend on their credit cards to meet their financial needs. According to statistics from Lendingtree, credit card debt has reached a record high for American consumers, citing consumer debt data from the Federal Reserve Bank of New York.
“Americans’ total credit card balance is 6 billion in the first quarter of 2023, according to the latest consumer debt data from the Federal Reserve Bank of New York,” a Lendingtree report details. “That’s unchanged from the fourth quarter of 2022’s record number, leaving the balance the highest since the New York Fed began tracking in 1999.”
American Credit Card Debt Has Risen Significantly Since Q3 2020, Credit Debt Has Surged on a Global Scale
The all-time high represents a 17% increase compared to the year prior, indicating that millions of Americans are relying on credit more than ever before to cover their expenses. Credit card debt had been steadily rising until the pandemic hit, and in 2020, it significantly declined as Americans reduced their usage of these financial tools. According to Newsweek’s survey, 55% of U.S. residents express significant or moderate concerns about their ability to repay credit card debt this year. The statistics also reveal that this trend is particularly pronounced among younger age groups, specifically those aged 18-24.
Moreover, Americans are not the only ones relying on credit card charges to make ends meet, as multiple sources indicate a global surge in credit card debt. Data reveals that the United States currently holds the highest amount of credit card debt, followed by Canada, the United Kingdom, and Japan. Conversely, Italy, Brazil, and India have comparatively lower average credit card debt. According to the Newsweek poll, certain experts suggest the necessity of “debt forgiveness” or propose that American consumers could potentially “benefit from payment holidays.’”
What are your thoughts on the rising credit card debt in the face of inflation? Share your thoughts and opinions about this subject in the comments section below.
Inflation Expectations of Eurozone Consumers ‘Increased Significantly,’ ECB Says
Consumers in the euro area have sharply raised their expectations about inflation in the coming months, the European Central Bank revealed. Survey data showing this comes after the monetary authority slowed the pace of its rate hikes last week while indicating that it’s still early for a pause.
ECB Registers Heightened Consumer Expectations About Inflation
Europeans believe inflation will be around 5% over the next 12 months with their median expectations rising “significantly” in March from 4.6% in February, the European Central Bank (ECB) announced on Thursday, quoting its latest Consumer Expectations Survey (CES).
The poll has been conducted before the ECB’s decision to raise interest rates by 25 basis points last week. Despite slowing the pace of rate hikes, the regulator argued that while inflation has declined, underlying price pressures remain strong, signaling further raises are likely.
“Uncertainty about inflation expectations 12 months ahead reached its highest level since the start of the survey in April 2020,” the central bank noted in a press release. Expectations for inflation in the next three years also increased, to 2.9% from 2.4%.
At the same time, consumers expected their nominal income to increase by 1.3% over the next 12 months, compared to 1.2% in the previous survey. Expectations for nominal spending growth over the next year increased to 4.1%, from 3.9% in February.
European expectations for economic growth over the next 12 months became slightly more negative, the ECB remarked, declining to -1.0%, from -0.9%. The expected unemployment rate for the same time period rose to 11.7% from February’s 11.5%.
The CES is a monthly online survey of 14,000 consumers, aged 18 or over, from six euro area countries: Belgium, Germany, Spain, France, Italy, and the Netherlands. The ECB uses its results for policy analysis. The latest data supports the views of some members of its Governing Council who have maintained that further rate hikes are warranted by persisting inflation in the eurozone.
Do you think consumer expectations about inflation in the eurozone will decrease in the next surveys? Tell us in the comments section below.
US Senator Calls for Comprehensive Crypto Regulation to Protect Consumers
The chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, Sherrod Brown, has called for a comprehensive regulatory framework for cryptocurrencies. “Recent crypto meltdowns have made clear that we need a comprehensive framework to regulate crypto products to protect consumers and our financial system,” said the senator.
US Lawmaker Wants Comprehensive Regulatory Framework for Crypto
U.S. Senator Sherrod Brown (D-OH), chairman of the Senate Committee on Banking, Housing, and Urban Affairs, talked about crypto regulation Tuesday in his opening statement at the congressional hearing titled “Crypto Crash: Why Financial Safeguards are Needed for Digital Assets.”
“The cryptocurrency industry has imploded,” the senator began, noting that the crypto market lost .46 trillion in value in 2022 and crypto firms have slashed over 1,600 jobs. The lawmaker detailed:
As crypto values crashed last year, platforms began collapsing, creating more losses across the rest of the crypto ecosystem. The crypto firms that are left have had to halt customer withdrawals, freezing people out of their own money.
While noting that crypto contagion did not infect the broader financial system, the senator from Ohio said: “We saw glimpses of the damage it could have done if crypto migrated into the banking system.” He warned: “This nightmare isn’t over yet … We are still learning the full extent of the fallout from the FTX collapse.”
Noting that “As these crypto firms filed for bankruptcy, regulators, and policymakers have also learned how out-of-control some of those businesses were,” the senator emphasized:
They were over-leveraged and undercapitalized. They had no internal risk controls. They were careless with customers’ money. In the case of FTX, they used it to line their own pockets. Now the money of millions of Americans is trapped and they might never get it back.
“These crypto catastrophes have exposed what many of us already knew: digital assets — cryptocurrencies, stablecoins, and investment tokens — are speculative products run by reckless companies that put Americans’ hard-earned money at risk. Not surprising from an industry that was created to skirt the rules,” Senator Brown further opined, adding:
Recent crypto meltdowns have made clear that we need a comprehensive framework to regulate crypto products to protect consumers and our financial system.
The lawmaker noted that existing rules can apply to crypto, stating: “Crypto isn’t special … We can start with these commonsense principles as we consider a regulatory framework for digital assets that puts consumers first and keeps our financial system safe.”
Senator Brown has long been skeptical about cryptocurrency. In December last year, he suggested that crypto should “maybe” be banned. However, he acknowledged that it is very difficult to ban crypto because it will go offshore.
What do you think about U.S. Senator Sherrod Brown calling for a comprehensive regulatory framework for cryptocurrencies? Let us know in the comments section below.