Economy Archives - Page 7 of 14

09Oct 2025 by Milan Ignjatovic

Nigeria’s Debt Crisis: Why $2.8 Billion in Borrowing is Necessary Pain (And Why Your Life Isn’t Getting Better Yet)

Nigeria's need to borrow $2.8 billion or other enormous amounts of money is driven by long-standing, deep-rooted economic problems, which do indicate the country is in severe fiscal pain, despite the government's contention that the overall situation is getting better. The fundamental reason for the continuous borrowing is to allow the government to finance its annual budget deficit. Nigeria has for a long time been unable to generate enough non-oil revenues (via taxes, etc.) to finance its spending. While tax-to-GDP ratios are slowly rising, they are low compared to peer countries. Being a big oil producer, government revenue is heavily vulnerable to global oil price fluctuations and domestic production issues (like oil theft). Each time prices fall or production reduces, there is a massive revenue gap. Yet, government expenditure, particularly…

08Oct 2025 by Milan Ignjatovic

The End of Interest rates in Malaysia? Fasset’s Stablecoin Bank Kills Riba & Disrupts Finance

Economy

Fasset company wants to use cryptocurrency technology (specifically stablecoins) to create a fully digital bank that operates according to Islamic law (Shariah). Their new provisional Malaysian license is a green light to start testing this new model, introducing modern, zero-interest, and ethical financial services to tens of millions of individuals in Asia and Africa. The act is seen as a major step toward bridging the old world of ethical Islamic finance and the new world of digital assets. About Fasset? Fasset is a global fintech company, also referred to as a "financial super-app." It started out as a digital asset exchange (i.e., an online platform where one can buy, sell, and trade cryptocurrencies and other digital tokens). With the aim to encourage financial inclusion and allow people to build their…

07Oct 2025 by Milan Ignjatovic

BRICS Pay Goes Global: Financial Invasion of South America?

Economy

Russian Deputy Foreign Minister Sergey Ryabkov has expressed interest in extending the BRICS cross-border payment initiative into South America. While an exact recent quote is unavailable, the overall context from various BRICS reports and interviews supports the validity of this strategic goal. Ryabkov is the key official focused on bilateral ties with the Americas and Russia's participation in BRICS. He has repeatedly asserted that interest in BRICS is gaining momentum among Global South nations, including those in Latin America, and that BRICS aims to be a network for regional processes in Asia, Africa, and Latin America. BRICS Cross-Border Payment Initiative on the Roll The BRICS Cross-Border Payments Initiative remains a high priority. This includes developing a payment system (frequently referred to as "BRICS Pay" in discussions) capable of offering an…

07Oct 2025 by Milan Ignjatovic

Zimbabwe’s ZiG: The Gold-Backed Bid to Kill the Dollar

Economy

The major economic event that has taken place in Zimbabwe is the introduction of a new national currency known as the Zimbabwe Gold (ZiG). The Reserve Bank of Zimbabwe (RBZ) introduced the ZiG on 5 April 2024, to take over from the rapidly depreciating Zimbabwean dollar (ZWL). This launch is Zimbabwe's sixth attempt to build a solid national currency since 2008. The key objective is to correct severe currency volatility, hyperinflation, and destruction of public trust in the old currency. The ZiG is currently in a multi-currency environment, with the US dollar and other foreign currencies remaining legal tender and widely accepted for most transactions. The long-term, official strategy is for the ZiG to be the only legal tender in the country by 2030, replacing the US dollar over time…

06Oct 2025 by Milan Ignjatovic

Make-or-Break Month for XRP? SEC ETF & Ripple Bank Charter Decisions Converge

Economy

The Ripple Labs application for a U.S. national trust bank charter by the Office of the Comptroller of the Currency (OCC) remains top of mind for the crypto space, especially as the deadline draws closer. Ripple Labs is seeking to charter Ripple National Trust Bank, a new (de novo) limited-purpose national trust bank. The charter is primarily for non-depository activities like custody, fiduciary, and reserve management. The main stated purpose of the bank is to offer supportive activities for Ripple's stablecoin (RLUSD) and other payment businesses, including stablecoin reserve management and related fiduciary services for institutional customers. The application was filed in July 2025 and made available in early August 2025, and the legislative 30-day public comment period has lapsed. However, much of the submission (about ≈90%) was marked confidential.…

06Oct 2025 by Milan Ignjatovic

Is AI the Next Dotcom Bubble? Goldman Sachs CEO warns of Market Crash

Economy

Goldman Sachs CEO David Solomon spoke at Italian Tech Week in Turin, Italy, on Friday, October 3, 2025. He predicted a market drawdown. His warning of a "drawdown with respect to equity markets" in the coming 12 to 24 months (i.e., between October 2026 and October 2027) is a professional prognosis based on previous market history after significant technological leaps fueled by the current frenzy and investment of capital in Artificial Intelligence (AI). He likened it specifically to previous cycles of technology, like the Dotcom Bubble, where the market is prone to "run ahead of the potential" and a lot of the invested money "will prove not to deliver returns." He was careful not to outright label it as a "bubble" but noted that investors are "out on the risk…

02Oct 2025 by Milan Ignjatovic

Korea’s FX War: Is the Won Doomed by Debt and the Dominant Dollar?

Economy

The central bank of South Korea intervened in the FX market by selling $800 million US dollars (or other currencies) and buying Korean won (KRW) to support the value of the won. This is typically done to suppress volatility or alleviate the depreciation of the local currency. We accept the facts that US Dollar is the most common currency for South Korea's trade and financial transactions. The depreciation problem is almost always the Won-Dollar exchange rate (USD/KRW). That is not the only matter The Bank of Korea (BOK) has significantly increased its foreign exchange intervention in recent years by selling US dollars and buying Korean won with the aim of stabilizing its economy. Intervention PeriodNet Sale AmountContextJuly 2023 to June 2024$9 Billion (Net Sale)Total amount net-sold by the Korean government…

27Sep 2025 by Milan Ignjatovic

Security or Surveillance? Inside Vietnam’s Mass Account Freezing and the War on Financial Privacy

Bank news, Economy

The news circulating that Vietnam's State Bank (SBV) froze or deactivated millions of bank accounts is related to a massive-scale "data-cleansing" and anti-fraud campaign. Over 86 million accounts were largely inactive, dormant, unverified, or were "ghost" accounts that did not comply with the new biometric authentication standards (facial recognition or fingerprint information linked to the national ID database). Reason behind this move is under a government initiative (Project 06) to combat fraud, money laundering, and cybercrime by making every bank account traceable to a confirmed, biometrically validated identity. The move is viewed as a wholesale regulatory transformation, aimed at placing Vietnam's electronic payment system on a secure foundation as it races ahead to becoming a cashless economy. This step triggers a hot debate between national security and financial inclusion objectives.…

25Sep 2025 by Milan Ignjatovic

Swiss franc the world’s “safe haven” currency who Rejects a Retail Digital Franc (CBDC) for public use

Economy

Over 90% of the world's central banks are now considering, developing, or piloting a CBDC. Very Small Nations/Territories may be without resources, financial infrastructure, or urgent need to assign a central bank team to a CBDC project. It is extremely difficult to detail a certain number of nations that possess national currencies with no study of a digital equivalent, since any list would be transient and would simply include the smallest, least developed economies whose central banks are not publicly reported to international bodies. In practical terms, almost every economy of scale is under CBDC exploration. Switzerland are particularly involved in the development and research of Central Bank Digital Currencies (CBDCs) but on very different approach than the rest of the world. The SNB is one of the earliest major…

24Sep 2025 by Milan Ignjatovic

The First Domino Falls? How Kazakhstan is Building a ‘CryptoCity’ and Unlocking the Digital Tenge

Economy

The National Bank of Kazakhstan has introduced a pilot project of a stablecoin named Evo (KZTE), whose price will be tied to the country's national currency, the tenge. The test is being conducted within the bank's Digital Assets Regulatory Sandbox. It is not an isolated endeavor but part and parcel of a very large, concerted effort for the transition of the country's economy. The economy of Kazakhstan has been historically dependent on mining and energy industries. The government, led by President Kassym-Jomart Tokayev, is actively pursuing a policy of digitalization to decrease the economy's reliance on these industries and make it more contemporary. Kazakhstan desires to transform into a regional leader and a "digital nexus" of Central Asia. Being a central bank, the role of the National Bank is to…