International News 13 January 2025
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Bank of America Rumoured to Use XRP 100% for Internal Transactions
David Stryzewski, CEO of Sound Planning Group, has stated that Bank of America has adopted Ripple (XRP) for all of its internal transactions and has filed 83 patents related to blockchain technology. Stryzewski commended Ripple's infrastructure, asserting that it is a pathway that will become universally adopted in the future. He also mentioned that Ripple has created its own stablecoin and highlighted its resilience amidst regulatory scrutiny and a legal battle with the SEC. However, there is no official confirmation to verify Stryzewski's claims regarding Bank of America's use of Ripple for all internal transactions.
Global Banks Expected to Cut 200,000 Jobs Due to AI Use
According to a survey by Bloomberg Intelligence (BI), global banks are expected to cut up to 200,000 jobs in the next three to five years as artificial intelligence (AI) becomes more prevalent and takes over human labour. On average, chief information and technology officers predict that around 3 per cent of their total workforce will be affected by these job cuts. The roles most at risk are those within the back office, middle office, operations and customer service sectors. The survey predicts that bots will replace human workers in managing client functions, and that tasks related to know-your-customer (KYC) requirements will also be vulnerable. However, the report emphasises that AI will not eliminate these jobs entirely, but rather lead to a transformation of the workforce. Some respondents in the survey predict sharper job cuts, with up to 10 per cent of the workforce potentially affected. The survey included prominent companies such as Citigroup, JPMorgan Chase, and Goldman Sachs.
Fed Signalling Unhurried Interest Rate Cut
Federal Reserve Bank of Philadelphia President Patrick Harker has indicated that the likelihood of a Fed rate cut this year has decreased. Harker stated that progress towards the Fed's 2% inflation target has been slower than expected and uneven. Despite this, he emphasised that the overall economy is strong and the labour market has cooled to pre-pandemic levels.Harker expressed confidence that the Fed remains on a declining policy rate path and does not foresee a deviation or reversal. However, he acknowledged the need to pause and assess the situation, taking into account incoming data.Harker also mentioned external factors, such as the war in Ukraine, conflicts in the Middle East, and government instability in Europe, which contribute to positive risks to price stability and the economy.Ultimately, the pace of rate adjustments will depend on future data