The Fintech Files: An encryption of jobs – but will it last?

Welcome to The Fintech Files, your weekly summary of Fintech correspondent Yolanda Bobeldijk, who keeps you updated on the latest developments in technology and financial innovation.

In the City, bitcoin is a bit like Marmite: you love it or you hate it. But the bitcoin could be controversial, the truth is that there are already thousands of professionals of the institutional cryptocurrency in the city. It's hard to give an exact figure, but Tim Dobie, Harrington Starr's administrative advisor, said, "It's time in the thousands – easily."

The demand for encrypted personnel has exploded in the last year or so, he added, from about 5% of the workload in 2016 to 40-45% in 2017 and 2018. This is because many financial players want to enter in the game. Last week, ICE, the owner of the New York Stock Exchange, joined the long list of institutions that are now seriously exploring digital assets. Like Barclays.

Pay is going up

Banks and start-ups have to dig into their pockets to attract the right talent, recruits say. A senior software architect expects an increase of £ 130,000. The technical staff that fully understands the technology and underscore encryption is being paid "an absolute good fortune," added Dobie. Often these are not even guys who have a technological background, but bankers who were the first bitcoin investors who mastered the technology themselves, he said. You do not even have to be that old. In June, Morgan Stanley hired Andrew Peel, vice president of sales and commercial innovation at Credit Suisse, to become the head of the digital goods markets. A spokeswoman for Morgan Stanley confirmed her appointment.

Vision of Fintech Files

Now that thousands of people have officially "encrypted work" it is becoming increasingly difficult to liquidate Bitcoin as "fraud" or to compare it with "tulip mania". The discussion is moving from "we should or should not be involved" to "how we are getting involved", say crypto experts

But is that so?

UBS analysts said in a week report that the bitcoin is "too unstable and limited to becoming a lucrative payment medium for global transactions or a mainstream asset class." Moreover, of the banks that have hired cryptographic personnel, most have made it very clear that they do not intend to exchange bitcoins as long as they remain unregulated. These roles are often described as "exploration" of cryptocurrencies: banks do not want to be behind the curve if and when bitcoin trading gets a regulatory approval mark, but they are not even ready to commit without it. What happens after a lot depends on the involvement of the FCA. So far, the UK regulatory authority has not intervened.

What will happen to these new crypto-leaders in three years? Will the banks all have bitcoin trading counters or will we find out that most of these encrypted jobs will have disappeared? The jury is out, until the verdict of the regulators is in force.

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#ICO of the week

Yes. Journalism is also getting its own symbolic sale, to create a "decentralized platform for independent and sustainable journalism".

#Special media of the week on the occasion of the week

Mohamed El-Erian, principal economic adviser of the Allianz group:

From the Wall Street Journal and probably will be a catalyst for many discussions. Like "dozens of trading groups are manipulating the price of cryptocurrencies on some of the biggest online exchanges".

#Required Reading

Have you ever wondered what Bill Clinton is these days? Well, he will present a speech at Ripple's technical conference, Swell. I wonder how much they paid for that …

Intercontinental Exchange is the last traditional finance player to enter the crypt, writes my colleague Sam Agini.

Barclays has also created a team that will explore how they can start exchanging digital resources. Paul Clarke from FN has the story.

And with those moves only the last of a long line of financial players exploring the possibilities of the crypto, the other colleague, Rosalie Stafford-Langan, has collected a complete list of all the developments up to Now.

But Goldman Sachs states that bitcoin will continue to decline, writes Business Insider

Traders are talking about cryptocurrencies and then downloading them, costing millions more, according to The Wall Street Journal .

So: the intellectual property rights in fintech – you'd think the banks would spend a penny or two on that, right? No, they only allowed IBM to move on.

More than $ 16 billion were invested in British fintech in the first half of 2018, according to CityWire.

A managing director of BNY Mellon has joined the Crypto Exchange Coinbase, according to Forbes.

Elly Hardwick, the head of high-profile innovation at Deutsche Bank, if it's gone after less than two years.

UBS has hired a former Credit Suisse sales manager as the new global head of e-commerce and programs. Sam Agini from FN does not just close the scoops!

The Laborers ask for an inquiry into the president of the former Tory for the role of blockchain, according to the FT.

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