Stablecoins “threaten financial stability”; The repression of the commodity boom in China; Liberty Steel Plant For Sale – As It Happened | Business
It’s time for a quick recap.
A Federal Reserve governor has warned that stablecoins could be a risk to consumers and financial stability. Lael Brainard said the rise in “private money” was a concern as the Fed is also stepping up work on a possible digital dollar.
Brainard compared the rise of stablecoins, which tie cryptocurrencies to more stable assets, to the proliferation of rival private money in the United States during the 19th century.
Unlike central bank fiat currencies, stablecoins are not legal tender. Depending on the underlying arrangements, some may put consumers and businesses at risk. If widely adopted, stablecoins could serve as the basis for an alternative payment system oriented around new forms of private money.
Given the network externalities associated with achieving scale of payments, there is a risk that the widespread use of private funds for consumer payments will fragment parts of the US payments system in ways that impose burdens and increase costs for households and businesses.
The Governor of the Bank of England slammed Lex Greensill, telling MPs the Australian acted likHe had discovered the secrets of the universe through his now collapsed supply chain finance business.
Andrew Bailey told MPs that there is nothing new in the general practice of financing invoices, while financing of “ future receivables ” (activities not yet carried out) is a concern – it looks like unsecured loans, and could also be used to flatter a company’s financial position.
Bailey revealed that the Bank of England reported concerns about Wyelands Bank – owned by steel magnate Sanjeev Gupta – to the National Crime Agency and the Serious Fraud Office more than a year ago..
Bailey also reiterated his concerns about crypto assets, saying they are dangerous.
HSBC is also standing on the sidelines, telling Reuters it has no plans to offer bitcoin to its customers.
Gupta’s Liberty Steel has announced plans to sell its Yorkshire aerospace steel business as part of a restructuring deal to ensure its survival.
The steel company under pressure said Monday it was in talks with Credit Suisse, a major creditor, over deals that would give it time to repay its debts. Gupta met with representatives from Credit Suisse in Dubai, where he is currently based.
Beijing has stepped up pressure on rising commodity prices, warning that it will not tolerate “speculators and hoarders.” Iron ore fell rapidly, and steel prices fell in China as well.
Cinema owners enjoyed a strong opening weekend in the UK, with the biggest box office gains since cinemas were first forced to close 14 months ago.
Cinema owners took in around £ 7million in ticket sales over the weekend, the best take since March 6-8 last year, led by Peter Rabbit 2: The Runaway. The previous weekend’s high was the £ 6million taken by Tenet when it was released last August.
Stocks closed higher in London as oil rallied as well, on optimism about the economic recovery.
Britain’s energy regulator has approved a £ 300million investment spree to help triple the number of super-fast electric car charging stations across the country, as part of efforts to accelerate the UK’s switch to clean energy.
Workers at accounting firm EY are expected to work from home for at least two days a week, even after the coronavirus restrictions are lifted, in the latest sign of the life-changing pandemic in the office.
The company, formerly known as Ernst & Young, told UK employees via video call on Monday that 17,000 employees would switch to a ‘hybrid work model’ that mixes home and office work – as well as tours to customers – once social distancing. the notice is deleted.
Eight men were arrested early in the morning during raids across England as part of an investigation into fraudulent texts claiming to be from Royal Mail.
The men were arrested on suspicion of fraud involving smishing texts claiming to be from delivery companies.
Developers have taken over vacant retail and office sites in urban areas to create more apartment buildings for the over-65s
Britain’s biggest fund manager Legal & General Investment Management (LGIM) lobbied Shell after joining a shareholder rebellion against the oil company’s carbon reduction plans:
Good evening. GW