Category: Economy

The collapse of Silicon Valley Bank in 2023 was among the most momentous to hit the shores of the United States since the financial crisis broke out in 2008. The bank became an instant subject of interest when it suddenly collapsed, particularly for being one of the main financing institutions for technology startups, venture capital firms, and high-growth companies in Silicon Valley. Banks can fail for a variety of different reasons, but most often it is due to a mix of bad choices and things beyond their control. Here are the 9 main reasons: Bad Decisions on Loans and Investments (Risk Management) Too Much of the Same Thing (Concentration Risk) Not Enough Money to Cover Losses (Weak Capital) Fraud or Bad Management Not Being Able to Pay Depositors (Liquidity Problems)…

Local Serbian media, such as Blic and Novosti, have reported that citizens find it increasingly hard to obtain physical euros either from banks or exchange offices, which chimes in with growing concerns about a foreign currency liquidity squeeze. The result is a very strange situation whereby local banks and exchange offices have stopped selling paper euros, while digital transactions in euros are still fluid and available. Such a paradox is deeply rooted in the interaction of these factors, liquidity management, foreign currency reserves, and regulatory control, linked to wider economic challenges that Serbia is going through. The problem related to Serbia's foreign currency liquidity lies at the very heart of this issue. Foreign currency reserves play a very important role in maintaining the stability of exchange rates, paying off foreign…

Visa’s latest wave of digital wallet launches across Europe signals a pivotal shift in the mobile payments sector, one driven by both technological advancements and regulatory changes. As Apple is now compelled to open up NFC (Near Field Communication) access to third-party apps under the European Union's Digital Markets Act (DMA), Visa is moving swiftly to help banks and fintechs build their own mobile wallets, positioning itself to compete directly with Apple Pay for the first time. This strategic development, which includes new partnerships with leading financial institutions such as BBVA, Klarna, Vipps MobilePay, and a pilot program with Italy’s BANCOMAT, lays the groundwork for a new generation of mobile wallets that leverage tokenization, flexible payment credentials, contactless technology, and deeper user control over their payment experiences. With these changes,…

The EU economy faces growing risks from geopolitics and changes in global trade. The risks have already caused a shock in investor confidence, disrupted industries, and created a volatile financial environment. The European Central Bank said risks for banks in the next year are "unprecedentedly high." Such signals warn that Europe's economic stability may be at serious risk. The Global Trade Web Is Fraying Geopolitical tensions will tear apart established trade relationships. The EU relies very heavily on global supply chains that might face serious disruptions. Tariffs, sanctions, and embargoes could become commonplace tools of economic warfare, serving to hurt exports and raise costs. A trade war between the United States and China, or even tighter sanctions on Russia, would hit hard at European exporters, especially in key sectors such…

Michael Burry closed his hedge fund, Scion Asset Management, for many reasons, primarily stemming from his deep skepticism about current market valuations and the challenges of managing a highly scrutinized, contrarian fund in the current environment. The Securities and Exchange Commission’s database shows Scion’s registration status as “terminated” as of November 10. In a post on the social media platform X, Burry stated, "On to much better things Nov 25th." In a letter to investors, Burry wrote that his "estimation of value in securities is not now, and has not been for some time, in sync with the markets." This suggests he believes many stocks are significantly overvalued, making it difficult to find attractive investment opportunities for his clients. If he can't find good stocks to buy at a reasonable…

At the heart of North Africa, Algeria, a country rich in natural resources, is standing on the brink of a complete economic collapse. The Algerian dinar has been in freefall, and a harsh reality has come to light: the roots of the country's economic problems go far beyond currency fluctuations. Overdependence on oil and gas exports, an inability or unwillingness to diversify, and years of mismanagement and bad governance all lie at the heart of the crisis. The consequences for the people of Algeria are nothing short of disastrous, with an uncertain future in store for them. The Terrifying Dinar Plunge It's hard to ignore the figures: 1 euro is now worth 282.50 dinars, a sharp fall that has continued to worsen over the last years. What started as a…

In the race to digitize fiat currency, central banks are creating a growing fault line beneath the global financial system. On one side, state-backed Central Bank Digital Currencies promise efficiency, financial inclusion, and policy control. On the other, decentralized cryptocurrencies offer individuals escape routes from inflation, capital controls, and institutional surveillance. The outcome could reshape not only how we pay but who ultimately controls money. Today, over 130 central banks in Asia, Africa, and Latin America are actively researching or piloting digital currencies. The Digital Yuan, or e‑CNY-the largest CBDC effort in China-has reportedly surpassed 120 million wallets. The Digital Rupee has spread rapidly across South Asia, with 15 cities included in the pilot by 2025, with over 150,000 merchants involved. In Africa, the eNaira in Nigeria, although bumpy in…

The Czech central bank (Nov 13) bought $1 million of bitcoins and other blockchain-based digital assets to gain experience with digital markets. In contrast, the Czech National Bank’s decision to invest in Bitcoin as a test case shows that some central banks are more open to experimenting with digital assets. However, this approach is more cautious, aimed at learning about the technology rather than rushing to add Bitcoin as a core part of their monetary system. This initiative comes at odds with the European Central Bank’s (ECB) stance. Christine Lagarde has been quite critical of Bitcoin as a reserve asset. So, although the Czech Republic is outside the eurozone, it’s still tied to European regulatory frameworks and pressures. The CNB is clearly going down a different path, at least for…

While the European Central Bank does not directly set the rules for the EUDI Wallet or the AML Regulation, it's involved in similar projects, especially with the Digital Euro, which is linked with these changes. Starting in 2027, significant new EU regulations will come into play, including a ban on anonymous accounts and privacy coins like Monero, under the Anti-Money Laundering Regulation (AMLR). That will mean a sea change for financial and crypto service providers (CASPs), which will have to implement much more stringent identity checks for everyone. Full implementation of the AMLR in the EU by July 2027 will ban crypto services from offering anonymous accounts or dealing with such digital assets as privacy coins. Any crypto service operating in the EU will be legally required to carry out…

Switzerland surprised the financial world with its decision to include digital assets such as stablecoins in its regulatory framework. Adding a Swiss franc–based stablecoin (or any central, regulated stablecoin) to a country’s financial ecosystem can have broad economic implications, both positive and potentially negative. Switzerland is indeed synonymous with financial stability, neutrality, and a strong regulatory framework. Historically, its banking system has been one of the most trusted in the world and has positioned itself as a safe haven for wealth. The country is respected for pragmatic regulation via its financial watchdog, FINMA, or the Swiss Financial Market Supervisory Authority. The government is the initiator of the consultation on stablecoin regulation, in line with Switzerland's ongoing push to become a leader in the global crypto space. Stablecoins, indeed, are digital…