Blackbox Weekly
Your regular dose of fintech news, views and insights
Can Robinhood Give Coinbase a Run for Its Money?
With the announcement and roll out of its commission-free cryptocurrency product Robinhood Crypto, Robinhood Markets Inc. is gaining ground on Coinbase.
Fintech Around The Web
1. Coinbase Has Made It Easy for Online Businesses to Accept Cryptocurrencies
Last week, popular cryptocurrency exchange Coinbase launched “Coinbase Commerce”, a service allowing businesses to directly accept bitcoin, bitcoin cash, ethereum and litecoin payments right in their online checkout flow.
2. Venezuela Has Launched The Presale of Its Digital Token, Making It the First Country to Do So
Called the petro, critics have said the petroleum-backed digital currency is an attempt by the cash-strapped country to borrow credit against its untapped oil. The move is also said to be an attempt to circumvent Western sanctions imposed against Venezuela for its autocratic leadership last August. While President Nicolas Maduro claims the petro cryptocurrency raised $735 million in the first day of a pre-sale, a currency is only as legitimate as the people who hold it believe it to be. Venezuela has had serious problems both being transparent and in managing inflation. And the currency is already at risk of losing legitimacy if Maduro isn’t reelected come April.
3. Amazon found a partner in Bank of America for its lending to small businesses
With the launch of Amazon Lending in 2011, Amazon has been originating loans, ranging from $1,000 to $750,000, to small business owners that are top sellers on Amazon.com. Last week, CNBC reported Amazon has been in partnership with Bank of America Merrill Lynch since October 2016 where the bank serves as a “$500 million revolving credit facility”, helping the tech giant reduce its risk while still providing credit to merchants for the acquisition of inventory.
4. House Backs Bill That Would Benefit Bank/Fintech Partnerships
The House recently approved a bill that would make it so high-interest rate loans could be sold to non-bank entities, such as fintechs like LendingClub, at interest rates higher than state caps. That means a debt collector or fintech in a state where interest is capped at 16% could both buy debt and issue new credit to borrowers at higher interest rates than that 16% cap. For fintech firms, this legislation could provide an easier way for them to get one of the perks — and added revenue stream — of being a bank without actually being a bank, which could be an appealing opportunity for the myriad of fintechs looking to monetize their products.
