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Whether dissecting crypto or fiat currencies, the foundations remain the same: the currency must serve as a store of value and function as a medium of exchange for goods and services. While both these currency options tick those boxes, cryptocurrencies tend to also be followed by a dark cloud of volatility in the financial sector. 

Market volatility is a natural byproduct of a developing market, however, it can also cause many losses if not managed correctly. When the crypto markets go through high levels of market volatility they tend to get discredited with being a viable payment option. After paying withness to the Bitcoin market swings, several individuals recognised this flaw in the digital currency space and created a solution, "the stablecoin". 

In this article we establish what is a stablecoin is, how it fits into the financial landscape and explore the pros and cons of these digital currencies.

What Is A Stablecoin?

Stablecoins are digital currencies that harness the benefits of being a decentralized, blockchain-operated currency without volatility. Backed by any currency or commodity, stablecoins are pegged to the value of their underlying asset and managed and secured by their relevant platforms. For instance, Tether is pegged to the US dollar while Tether Gold is pegged to the price of gold and Tether EURt is backed by the Euro. 

These currencies operate like any other cryptocurrency, using blockchain technology to maintain and operate the network, but do not fluctuate in value based on supply and demand. Rather the price remains consistent with the asset it is pegged to, providing a better tool for digital payment transactions.

How Do Stablecoins Maintain Their Price?

While we've established that stablecoins are pegged to a commodity and reflect that price, let's cover how exactly that is achieved. Using fiat-backed stablecoins as examples, the companies behind these coins are required to hold a US dollar equivalent for each coin in circulation (or Euro if the stablecoin is pegged to it). 

These funds, also referred to as reserves, are either held in bank accounts or can be a combination of cash and short-term U.S. Treasury bonds. Most of the companies issuing stablecoins conduct third-party audits to prove that their reserves are at the correct levels and release this information to assure users that their coins are always worth $1 (or the currency-backed equivalent). 

Why Have Stablecoins Become so Popular?

The first stablecoin to enter the market was Tether in 2014, pegged to the US dollar. Tether is currently the third-largest cryptocurrency based on market capitalization, illustrating its vast popularity. The second biggest stablecoin currently on the market is USD Coin, also backed by the US dollar, which sits in the top 5 biggest cryptocurrencies with an equally impressive trade volume. Both these coins have provided valuable talking points within the industry as their market caps and adoption increase and they climb the ranks of the biggest cryptocurrencies.

Due to their resistance towards volatility, stablecoins have increased in popularity and are more widely used for conducting business around the world and executing cross border payments.

The Pros Of Stablecoins

Stablecoins are popular options for both businesses and individuals conducting business across borders. Below we outline the top benefits that stablecoins present to the market:

Digital Currency

The obvious first benefit of stablecoins is that they are maintained by blockchain technology and able to conduct international transactions in a much shorter time frame and for less cost than fiat currencies. The fast settlement times make these currencies an excellent, cross-border medium of exchange. They are also easy to use as they operate from wallets in similar ways to traditional cryptocurrencies.

Zero Volatility

Due to the nature of stablecoins being pegged to a fiat currency or commodity, they typically experience little to no high volatility trading periods resulting in a more reliable currency with the benefits of blockchain technology. Pertinent to increasing its adoption.

Hedge Against Failing Markets

Stablecoins have become increasingly popular for traders to hedge against other cryptocurrencies when markets experience a decline in price. Stablecoins allow traders to quickly liquidate their digital assets and easily reenter the market when the price stabilizes. 

The Cons Of Stablecoins

Centralisation

While blockchain technology and cryptocurrencies celebrate the notion of being decentralised, stablecoins do bring in a nature of centralisation, particularly when it comes to the backing of the assets. Ensuring that each coin in circulation is backed by an equal reserve value requires a team that leans the operation more toward a centralized structure.

Transparency

Several stablecoins have been called out publicly for not being transparent with their reserves. Tether, for example, has seen much public outcry concerning whether the company has the correct amount of reserves, leading to fines and regulations imposed by the US government. They have since released a report on the current reserve holdings of the company. 

In Conclusion

Many traders have incorporated stablecoins into their portfolios, to have as a hedge against falling crypto markets or falling fiat markets. These digital assets are also used by businesses around the world to conduct payments with the benefits of digital currencies and without the risk of volatility. Through the Tap app, users can now access and purchase USD Coin (USDC) as well as Tether (USDT). The sleek design of the app interface makes it easy for users who want to buy or sell cryptocurrencies with fiat currency through their phones in a click. 

When it comes to choosing a stablecoin, consider the projects behind it, the liquidity and the ease of use in terms of wallet compatibility.

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Tap is pleased to announce that it has agreed to a Convertible Loan Notes (“CLNs”) of £1 each in TAP Global Limited (“TAP Global”) from Quetzal Capital PLC, for an aggregate amount of £1,500,000.  Under the terms of the CLNs, Quetzal has the right to subscribe for addition CLNs up to a further 500,000 CLNs of £1 each at any point before 31 May 2022.  Should the CLNs convert they will do so at a 50% discount to the valuation of TAP at a conversion event which would involve the acquisition of the entire issued share capital of TAP Global by Quetzal.  The CLN is secured over assets in TAP Global and its wholly owned subsidiary.  The funding will assist TAP Global’s continued rapid expansion.

Tap is also pleased to announce is has signed a call option in favour of Quetzal (“Call Option”), that gives Quetzal the right to acquire 100% of the issued share capital of TAP Global, subject to certain terms being agreed on a Sale and Purchase Agreement (“SPA”).  One such term will be the achievement of a minimum valuation for TAP Global of £26.5m as a result of any conversion event.  Should the Call Option be exercised by Quetzal and the SPA is agreed, such a transaction would constitute a Reverse Takeover under the AQSE Access Growth Market Rules.  There is no guarantee that the Call Option will be exercised, nor that terms of a subsequent SPA will be agreed.

Background on TAP Global

TAP Global is a leading regulated fully integrated Crypto-Fiat exchange service provider with and associated neo banking platform. TAP Global’s mission is to create a seamless and fully regulated bridge that links fiat banking, traditional assets and crypto markets (including mainstream crypto currencies such as Bitcoin, ETH, NFTs and other upcoming Defi protocols). Built on its exchange foundation, TAP Global also offers consumer and corporate crypto-fiat banking services and Defi Yield products. Tap Global is one of only a handful of operators which are fully regulated.

Since launching to the public in February 2020, TAP Global has grown to now having over 58,000 registered users and is a revenue and cash flow generating business that currently operates in 28 countries across the globe. TAP Global accepts major cryptocurrencies including Bitcoin, Ethereum, Litecoin and others. TAP Global is actively working on integrating other cryptocurrencies including NFTs and Defi projects.

TAP Global is fully regulated under the DLT framework by the Gibraltar Financial Securities Commission crypto trading activities and as an agent for eMoney and operates on a B2B as well as a B2C offering.  EEA, UK and Gibraltar B2C and B2B users are assigned individual and named bank accounts and consumers have the option to be issued a physical or virtual TAP  Prepaid Mastercard on which purchases can be made.  All deposits in fiat or crypto can be made free of charge by the user.  A $100m cold storage insurance cover is in place for crypto held by Tap users in segregated and protected accounts. TAP has partnered with leading companies in the industry including Fireblocks, BitGo, Chainalysis, Kraken and Bittrex.

TAP Global is licensed and regulated by the Gibraltar Financial Services Commission under the Distributed Ledger Technology (DLT) with license No. 25532. It is an innovative and fully integrated provider of fiat banking and crypto settlement.  TAP has positioned itself differently to most other providers as it offers full fiat banking for both B2B and B2C and crypto services to its clients and offers the best execution on crypto side based on proprietary developed Artificial Intelligence middleware that allows users to obtain the best execution and pricing in real time.   This allows TAP Global to offer competitive pricing for trades and instant crypto or cash settlement, a distinct advantage to many peer competitors The B2B and B2C users can operate their TAP Global fiat bank account for any ordinary business activities – such as paying suppliers and receiving monies from customers in a number of fiat currencies (currently EUR, GBP with more fiat currencies in development).

TAP Global provides named bank accounts to all its users in the UK, EEA and EU through its banking partner, LHV.  Users can also initiate 3rd party transfers out due to its compliance with ‘Open Banking’ regulations. 

TAP Global has developed the capability to offer “interest bearing” Earn Wallets which will support both Fiat and crypto deposits.  This capability is in trial mode and once activated more widely will give TAP Global a significant further revenue stream from funds held in custody.  It will also offer users a way to earn revenue on their deposits. 

TAP Global is cash flow and revenue generative and has been fully funded by the founders and management team. The introduction of the capital from the CLNs is to be used by TAP Global to expand its operations and accelerate its existing growth strategy. At its last published accounts from 30th of June 2021 TAP Global had revenues of £761,222, assets of £2,114,901.

The TAP Team

TAP Global was founded by Arsen Torosian, a serial fintech entrepreneur and David Carr who has launched numerous fintech products over the last 17 years. 

Arsen founded a crypto OTC desk in London in 2014 in which he acquired over £70m in trading volume.  Prior to this he founded a game development company at the age of 17 in 2010 when the iPhone 3G and the Appstore was introduced to the market. Seeing the demand of the phones and the lack of game selection, he saw the opportunity to get into game development industry. Over the next 3 years, he managed to create multiple games that reached the top charts before eventually entering the crypto market in 2014.

David Carr co-founded TAP Global and initially took on the role of Chief Operating Officer.  He assumed the role of Chief Executive Officer from July 2021.  David has very deep experience in the fintech world including working on the first prepaid Mastercard in Europe in 2004 with Cashplus. He then launched the first ever Travel Money FX card in 2005, CaxtonFX.  He has consulted on the launch of over 65 e-money projects including Tesco Travel Money and designed and delivered the first Mobile Money associated Mastercard with LycaMoney.  David has been an Ambassador for the Payments Association for over 10 years and was a judge at the 2021 Emerging Payments Awards, at which TAP Global was nominated for several awards. 

Christopher Wawn is the Chief Compliance Officer of TAP Global.  He has established several Gibraltar based regulated businesses and has been instrumental in the incorporation of two DLT GFSC licenced companies.  

Daniel Rudich is a Non-Executive Director of TAP Global and a partner at Hassans Law Firm, the largest law partnership in Gibraltar.  He is a member of the firm’s FinTech and Private Clients team and also holds board positions in other fintech companies that he has helped grow from start-ups to unicorn status. 

John Taylor, Chairman of Quetzal Capital Plc said,

‘We are delighted to have concluded this investment in to TAP Global by way of a Convertible Loan Note, and to have agreed an option for Quetzal to consider the acquisition of TAP Global on what we believe would be very favourable terms for our shareholders.  We have followed the development of TAP Global over the last few months and have been impressed by the constant innovation being progressed, the growth in user numbers and the very positive relationships evident with the Gibraltar regulatory community.  Both David and Arsen have enormous ambition to grow TAP Global into a very large player in the crypto trading sector and have already identified a number of further enhancements that can be achieved both organically and through acquisition and merger opportunities.  We look forward to monitoring these developments further as the proceeds of our investment are put to use realising some of this ambition.  We also look forward to updating the market regularly on progress which we believe can be both transformational and material in the short term.  The Board believes that TAP is very well positioned compared to other opportunities arising in the De-Fi and crypto settlement space.’

David Carr, CEO of TAP Global Limited said,

‘We founded TAP Global on the simple principle of ‘one app, one tap’, with the intention to build a fully integrated application connecting B2B and B2C users with the wide array of crypto and fiat settlement tools at the best available price. The tools that TAP Global has produced are exceptionally powerful and we are delighted to offer them through our fully regulated practice. We look forward to working with Quetzal whilst using the funds to accelerate our growth plans and tap into the new global markets’.

TAP’s Website can be accessed at the following link:

https://www.tap.global/

The Directors of the Company accept responsibility for the contents of this announcement.

Enquiries:

Tap Global LTD

Marketing@tap.global

Saving and investing are two key elements to managing one's personal wealth. In this article, we explore the benefits and downfalls of both these tools and give you a broader understanding of the topics.

What Does saving entail?

Saving money is an imperative step in building one's wealth and involves putting money away on a consistent basis, consistency is key. These funds are usually kept in an interest-bearing account, allowing the value to increase passively over the years. 

In the United Kingdom, there are different types of ISA (individual savings accounts) that offer tax-free savings options.

In order to save, one must be spending less than they're earning. 

What does investing entail?

Investing involves buying an asset with the intention for it to accumulate in value. This typically comes after saving, although the earlier the better. People invest in the likes of stocks, cryptocurrencies, property and even themselves (education, capital for a business) in the hopes of generating returns. 

What's the difference between saving and investing?

The biggest difference between the two is the varying returns you can earn. Saving money in a bank account typically provides returns of 0.5 - 0.8%, while the return potential on cryptocurrencies and stock is much greater.

The other main difference between saving and investing is the risk. So, while earning higher returns on investments might sound much more appealing, the risk is usually greater. Savings accounts carry minimal risk and are usually insured while investment portfolios will rise and fall with the market and are only insured if the investment company fails. Investors should balance the options and establish which risk level they are comfortable with.

In light of these risks, savings are recommended for short term goals while investments cater better to long term financial objectives. This is because long term investments will ride out the ebb and flow of markets and recover even if there is a drop over a certain period. Savings on the other hand are more easily accessible and won't be "interrupted" if the funds are used for an emergency. 

However, savings are also susceptible to inflation as the interest rates are seldom higher than the inflation rates. For example, if your bank is offering a 0.6% interest on your savings account and inflation rose 2%, your savings would have actually decreased in value. Investing typically beats inflation.

The similarities between savings and investing

As both tools are excellent at building and creating more wealth, there are bound to be similarities between the two.

The main similarity between the two is that both options are best started now, whether you're in them for the long or short term benefits. This is due to compounding. Compounding is the process where the interest you earn on an investment or savings account is continuously reinvested, increasing the base sum each period. 

For example, if you put $1,000 into a compounding savings account and earned 2% interest each year. The next year you will be earning 2% interest on the lump sum plus the interest earned, $1,020. The next year you would earn $1,020.40 ($1,020 interest earned, $20.40). This doesn't sound like too much, but over a ten-year period, you would have amassed $219.20 without having done a thing. 

Before you get started

Before getting started on either of these options, ensure that you have a positive cash flow and are debt-free. You'll also need to establish what your risk tolerance is, your short term and long term financial requirements, and when you would like to access the money.

If you don't have one already, you'll want to establish an Emergency Fund that can cover your living expenses for 3 - 6 months. Should you lose your job you can then fall back on this loan and not have to rely on credit cards with high-interest rates. 

Experts also recommend setting up a retirement fund, with automated monthly contributions. Once your emergency and retirement funds are established, you can consider a short term savings account or long term investment, or both. 

Pros and cons of saving and investing

Below we highlight the pros and cons of both tools:

Saving

Pro: Money is accessible and can easily be withdrawn.

Pro: Exempt from market volatility.

Con: Cannot leverage on market gains (potentially missing out on large compound interest benefits).

Con: Susceptible to inflation.

Investing

Pro: Longer time frames allow for favourable compounding interest.

Pro: Could tap into large market gains. 

Con: Exposed to more risk as markets are susceptible to drops.

Con: May incur a penalty if the money is withdrawn too soon. 

The bottom line

Both savings and investment options carry their own set of risks and rewards and it's ultimately best for you to speak to a financial adviser who is able to provide you with calculated professional advice. 

Disclaimer: This article is intended for communication purposes only, you should not consider any such information, opinions or other material as financial advice. The information herein does not constitute an offer to sell or the solicitation to purchase/invest in any assets and is not to be taken as a recommendation that any particular investment or trading approach is appropriate for any specific person. There is a possibility of risk in investing as investors are exposed to fluctuations in all markets. This communication should be read in conjunction with Tap's Terms and Conditions.

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Now in its 14th year, the Emerging Payments Awards celebrate innovation and collaboration by recognising companies that have made significant impact in supporting and providing payment solutions for consumers and businesses.

It is one of the most recognized awards within the UK payments industry with an independent panel of 58 judges including this year:

·        Anna Maj FinTech Leader, Senior Advisor, Truffle Capital, Senior Lecturer CFTE

·        Jill Docherty [ of Business Development, UK & Ireland, Visa

·        Martha Mghendi-Fishe Founder & Executive Board Chair, EWPN

·        Mark Walker Co-founder & COO Editorial Director, The Fintech Power 50 and The Fintech Times

·        Joanne Dewar CEO, Global Processing Services

·        Nikki Evans CEO EMEA, EML

Tap Global was shortlisted for The ‘Best B2C Payments Programme’ category based on criteri as such as the benefits it provides to its end-users, how TAP stands out from its competitors due to its features and innovation, and the proven evidence of its success in the market.

“‘Tap was one of the first companies to launch a crypto prepaid payment card with Mastercard in the EU’ in 2020 and our cryptocurrency-to-fiat prepaid Mastercard and smartphone app give users the power to instantly trade all major cryptocurrencies to fiat, and to make purchases withtheir cryptocurrency”, comments David Carr, CEO at TAP GLOBAL.

“Tap’s proprietary AI Middleware connects to multiple exchanges simultaneously, automatically validating available liquidity and selecting the most competitive prices while facilitating trades in a matter of seconds. Users can convert their cryptocurrency assets to fiat instantly,allowing them to pay for goods or use an ATM anywhere Mastercard is accepted.

Through the smartphone app, users can securely send and receive cryptocurrencies and fiat, view their transaction history, lock and unlock their card in case of loss and instantly view their PIN. Tap offers its users full EEA coverage for card, banking and cryptocurrencies and a named EUR IBAN and/or GBP Sort Code and Account Number, as well as secure, offline, cold storage behind a multi-signature wallet with the highest-grade security for all cryptocurrency assets”, he further adds.

“It’s an honour to be shortlisted for this award which further recognizes the added value TAP brings to market and the benefits for our end-users. None of this would have been achievable without the hard work of our teams and the support of our partners”, says David.

Commenting on the announcement, Kriya Patel, CEO at Transact Payments adds, “The EPA awards are some of the most prestigious awards in our industry recognising companies that are making a real difference in driving innovation in payments. We’re delighted to be working with TAP Global and being shortlisted for this award.”

Now in its 14th year, the Emerging Payments Awards celebrate innovation and collaboration by recognising companies that have made significant impact in supporting and providing payment solutions for consumers and businesses.

It is one of the most recognized awards within the UK payments industry with an independent panel of 58 judges including this year:

·        Anna Maj FinTech Leader, Senior Advisor, Truffle Capital, Senior Lecturer CFTE

·        Jill Docherty [ of Business Development, UK & Ireland, Visa

·        Martha Mghendi-Fishe Founder & Executive Board Chair, EWPN

·        Mark Walker Co-founder & COO Editorial Director, The Fintech Power 50 and The Fintech Times

·        Joanne Dewar CEO, Global Processing Services

·        Nikki Evans CEO EMEA, EML

Tap Global was shortlisted for The ‘Leading Financial Services or Payments Start-Up’ category based on criteria s such as the benefits it provides to its end-users, how TAP stands out from its competitors due to its features and innovation, and the proven evidence of its success in the market.

“‘Tap was one of the first companies to launch a crypto prepaid payment card with Mastercard in the EU’ in 2020 and our cryptocurrency-to-fiat prepaid Mastercard and smartphone app give users the power to instantly trade all major cryptocurrencies to fiat, and to make purchases with their cryptocurrency”, comments David Carr, CEO at TAP GLOBAL.

“Tap’s proprietary AI Middleware connects to multiple exchanges simultaneously, automatically validating available liquidity and selecting the most competitive prices while facilitating trades in a matter of seconds. Users can convert their cryptocurrency assets to fiat instantly, allowing them to pay for goods or use an ATM anywhere Mastercard is accepted.

Through the smartphone app, users can securely send and receive cryptocurrencies and fiat, view their transaction history, lock and unlock their card in case of loss and instantly view their PIN. Tap offers its users full EEA coverage for card, banking and cryptocurrencies and a named EUR IBAN and/or GBP Sort Code and Account Number, as well as secure, offline, cold storage behind a multi-signature wallet with the highest grade security for all cryptocurrency assets”, he further adds.

“It’s an honour to be shortlisted for this award which further recognizes the added value TAP brings to market and the benefits for our end-users. None of this would have been achievable without the hard work of our teams and the support of our partners”, says David.

Commenting on the announcement, Kriya Patel, CEO at Transact Payments adds, “The EPA awards are some of the most prestigious awards in our industry recognising companies that are making a real difference in driving innovation in payments. We’re delighted to be working with TAP Global and being shortlisted for this award.”

Day, Month,2021, LONDON: TAP Global has been shortlistedin the ‘Best Use of Crypto in Financial Services’ in the Emerging Payments Awards(EPA) 2021.

Now in its 14th year, the Emerging Payments Awardscelebrate innovation and collaboration by recognising companies thathave made significant impact in supporting and providing payment solutions forconsumers and businesses.

It is one of the most recognized awards within the UK payments industry with an independentpanel of 58 judges including this year:

·        Anna Maj FinTech Leader, Senior Advisor, Truffle Capital, SeniorLecturer CFTE

·        Jill Docherty [ of Business Development, UK & Ireland, Visa

·        Martha Mghendi-Fishe Founder & Executive Board Chair, EWPN

·        Mark Walker Co-founder & COO Editorial Director, The FintechPower 50 and The Fintech Times

·        Joanne Dewar CEO, Global Processing Services

·        Nikki Evans CEO EMEA, EML

Tap Global wasshortlisted for The ‘Best Use of Cyrpto inFinancial Services’ category based on criterias such as the benefits it providesto its end-users, how TAP stands out from its competitors due to its featuresand innovation, and the proven evidence of its success in the market.

“‘Tap was one of the first companies to launch a crypto prepaidpayment card with Mastercard in the EU’ in 2020 and our cryptocurrency-to-fiat prepaidMastercard and smartphone app give users the

power to instantly trade all major cryptocurrencies to fiat, andto make purchases with their cryptocurrency”, comments David Carr, CEO atTAP GLOBAL.

“Tap’s proprietary AI Middlewareconnects to multiple exchanges simultaneously, automatically validatingavailable liquidity and selecting the most competitive prices whilefacilitating trades in a matter of seconds. Users can convert their cryptocurrency assets to fiat instantly,allowing them to pay for goods or use an ATM anywhere Mastercard is accepted.

Through the smartphone app, users can securely send and receivecryptocurrencies and fiat, view their transaction history, lock and unlocktheir card in case of loss and instantly view their PIN. Tap offers its usersfull EEA coverage for card, banking and cryptocurrencies and a named EUR IBANand/or GBP Sort Code and Account Number, as well as secure, offline, coldstorage behind a multi-signature wallet with the highest grade security for allcryptocurrency assets”, he further adds.

“It’s an honour to be shortlisted for this award which furtherrecognizes the added value TAP brings to market and the benefits for our end-users.None of this would have been achievable without the hard work of our teams andthe support of our partners”, says David.

Commenting on theannouncement, Kriya Patel, CEO at Transact Payments adds, “The EPAawards are some of the most prestigious awards in our industry recognisingcompanies that are making a real difference in driving innovation in payments.We’re delighted to be working with TAP Global and being shortlisted for thisaward.”