FinTech Weekly - Privacy in the Time of AI - Issue #453

LIFT explores the intersection of privacy, fairness, and AI in Finance - MIT's Catherine Tucker to Present at 'The Digital Future' Event on Dec 11-12, 2023. The focus will be on the impact of algorithms on privacy and inequality in the fintech sector.

In addressing the critical challenge of slow crypto-to-cash conversions that hampers broader cryptocurrency adoption, Renegade, a Web3 financial platform, is introducing IBAN accounts and a Visa card. This innovative approach aims to merge crypto assets with traditional banking, facilitating easier and faster access to funds and enhancing the liquidity of digital currencies.

The Bank of England and the UK Treasury have assured that user data associated with the proposed digital pound, a state-backed cryptoasset, will remain inaccessible to both the government and the central bank. This commitment to privacy and control comes amidst ongoing development, first announced by the Treasury in January 2023. The implementation of the digital pound, currently under consideration, will be accompanied by specific legislation to ensure user privacy, addressing one of the major concerns highlighted in recent consultations.

The Office of the Privacy Commissioner in Bermuda is launching the "Road to PIPA" (Personal Information Protection Act) implementation plan, coinciding with the start of Data Privacy Week on January 29, 2024. This initiative aims to guide organizations towards compliance with PIPA, set to be officially implemented on January 1, 2025, as announced by Minister Vance Campbell. The 2024 Data Privacy Week marks the beginning of a year-long effort by the Privacy Commissioner to prepare Bermuda for the PIPA legislation, with a focus on providing comprehensive guidance to local organizations and individuals. The launch was inaugurated with a press conference.

2024 heralds a pivotal year for digital marketing, marked by significant shifts such as Chrome phasing out third-party cookies and evolving regulatory landscapes. This change comes as consumers increasingly demand transparency in data collection and usage. Notably, a majority in Europe, reflecting IAB Europe's findings, prefer personalized advertising over paid content access, a sentiment echoed in Africa. Marketers are now urged to reassess their ad privacy strategies, moving away from traditional methods like third-party cookies towards AI and privacy-preserving technologies for predictive marketing.

Italy's privacy regulator has imposed a €50,000 fine on the city of Trento for violating data protection laws in its AI-based street surveillance initiatives. This marks the first instance of an Italian local administration being penalized by the GPDP watchdog for improper use of AI tool data. Trento is also required to delete all data collected in the implicated European Union-funded projects.

EquiLend, a fintech firm specializing in securities lending, reported a cybersecurity breach involving unauthorized system access, prompting a partial shutdown. The company is collaborating with external cybersecurity experts to investigate and restore services, warning clients of a multi-day resolution process. The incident, disclosed to have occurred on January 22, follows closely after private equity firm Welsh, Carson, Anderson & Stowe (WCAS) agreed to acquire a majority stake in EquiLend, which counts major financial corporations like Goldman Sachs and BlackRock Inc. among its part owners.