At the recent of the ECON Committee, a report has been released on the present fintech market. It looks into competition concerns in the sector and cryptocurrencies was part of it.
The European Parliament Committee on Economic and Monetary Affairs commonly called ECON is a committee managing the decisions made by the European Central Bank (ECB). At its request, the Police Department for Economic, Scientific, and Quality of Life Policies released a document examining the leading completion concerns the financial technology (fintech) area is going through as well as challenges in banking, forex, insurance, wealth management, personal finance, and cryptocurrencies.
The document clarifies what it refers to as ‘the value chain of cryptocurrencies,’ which consists of different areas from the cryptocurrency industry.
It cautiously classifies each area before examining its individual challenges. For instance, it made a clear distinction between cryptocurrencies and e-money.
It also states there are several differences with regards to blockchain which should be taken into consideration.
The report also gave a clear definition of mining. Yet, the report also indicated some of the challenges faced in the industry including 79 percent of the market share being managed by only five mining pools. Yet, none of them is able to entirely take control of the market. However, it is claimed that AntPool is presently the top mining pool, making up for 23 percent of the overall market share.
On the other hand, the wallet market looks less active. As a result of its low requirements and vast platforms available, anyone can be part of the market. At the moment, there are many wallets available ranging from web-based to browser extensions and mobile wallets on both iOS AND Android.
Similar to miners, exchanges are to go through the same concerns. Yet, all exchanges usually operate as a wallet, which is why the report makes a clear distinction between is thinning out.
They are of the opinion that banks and card processors are important players in the industry, as they connect channel open between regulators and central banks. The link between the Santander Bank, American Express, and Ripple, is one of the instances reported.