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Month: February 2021

Government: Monaco Grand Prix is a go

by: Cassandra Tanti
17/02/2021

The government says it is pushing ahead with hosting the Monaco Grand Prix this year, as well as the E-Prix and the Historic Grand Prix, with installation of the infrastructure set to begin in a matter of days, including spectator stands.
“After a 2020 year deprived of motor racing on the circuit – the events having been cancelled due to the Covid-19 pandemic – the Principality is resuming its routine and preparing to host three Grands Prix from 23rd April to 23rd May 2021,” said the government in a statement on Wednesday afternoon, adding, “The 2021 edition promises to be exceptional.”
It is a racing trifecta this season, with the world-famous Formula One Grand Prix, the Historic Monaco Grand Prix and the Monaco E-Prix all being held in the same year. Normally, the races are alternated for organisational purposes.
As a result of the full schedule, installation of the circuit, which normally begins seven weeks before the first event, has been brought forward by a fortnight as the Historic Grand Prix is set to take place on 23rd April.
In addition to the annual asphalt resurfacing, works will include the installation of the infrastructure necessary for safety, development, television broadcasts, public reception, and advertising as well as dedicated accesses and public pathways.
The assembly work and related restrictions will begin on 23rd February in the port area and on 31st March in the Monte-Carlo district. The necessary adjustments to traffic as well as parking bans will be implemented and gradually lifted depending on the area.
 
Archive photo by Michael Alesi / Communication Department
 
 

Understanding bitcoin and the great crypto boom

by: Cassandra Tanti
17/02/2021

In our Q&A with Daniel Coheur, co-founder of Tokeny in Monaco, we explore what is behind the monumental rise of bitcoin and the paradigm shift from centralised to decentralised finance.

What a difference a year makes. Less than 12 months ago, bitcoin was sitting at $3,000 and everyone was looking forward to a normal year ahead.

Enter Covid-19 and the digital currency breaks into a bull run, spawning a new community of retail investors who have a lot of free time on their hands.

All of a sudden Michael Saylor, MicroStrategy chief executive officer, is calling bitcoin “digital gold” and “the scarcest asset in the world”; the planet’s richest man, Elon Musk, makes waves with Tesla’s announcement that it bought $1.5 billion of bitcoin; and traders analysts say institution investment is happening “at a staggering pace”.

Bitcoin hit its all-time high of $50K on Tuesday and the digital asset continues to make inroads into traditional finance, including news that an investment unit of Morgan Stanley is considering whether to bet on bitcoin.

So, what is this great crypto boom?

Well, there is a saying in the digital community that “You don’t get crypto, until you do”. To help explain the phenomenon, Monaco Life spoke to Daniel Coheur, co-founder and Chief Commercial Officer of Tokeny, a digital solutions company that the Monaco government has entrusted with securing its blockchain finance platform.

Monaco Life: How would you describe what has happened over the past six to 12 months with regards to bitcoin?

Daniel Coheur: When you have something like bitcoin that is not is backed by government, then trust becomes essential.

There may have been a very active community of people who believed in the technology and its potential as a future store of value by excellence next to gold, but there was no signal from the main actor of this ecosystem that it was the case.

The regulator helped significantly by allowing hedge funds to start investing, but that went largely unnoticed.

Then came people who were “visible”. The first to really take a stand was Michael Saylor, founder of MicroStrategy, who said that his company was going to buy bitcoin. Today, they have more than $3 billion US in bitcoin, so that certainly pushed things ahead.

Then Laurence Fink from BlackRock said that bitcoin could become an equivalent store of value as gold. Blackrock has $8 billion under management, so if those guys say that, it really means something. Not only BlackRock, but hedge funds in general were saying: “Ok, now we should invest.” Then, Elon Musk brought $1.5 billion bitcoin with Tesla.

It is what people needed to see – that the world’s biggest institutions were getting involved.
Meanwhile, according to the Bank of America, Americans are sitting on $1.6 trillion of spare cash, having not been able to spend money due to Covid-19 and the lockdowns. In the UK, household savings of typically $5 billion are now over $20 billion. With time on their hands and cash to play with, more people have been investing in cryptos.

So, the number of transactions began increasing, as well as the number of accounts. The number of individual Ethereum wallets has grown from 34 million at the beginning of 2020 to over 51 million at the end of 2020.

Last but not least, Decentralised Finance (DeFi) really pushed this forward by providing a means to show how the technology could be used and how, based on those crypto assets, you could make even more money than on the speculative side of investing.

So, I think all of this has been pushing the market to realise that this is not something that will disappear, and everyone that was passive is now looking to invest. That is what has been driving the price of bitcoin.

Where do you see bitcoin going this year?

If it is indeed becoming a store of value that is comparable to gold (people have been claiming that it will reach $200,000 by the end of 2021), is that the limit?

There is a reality that the market can’t ignore: unlike the euro or dollar, you cannot mine bitcoin forever. There is a limited amount of bitcoin and that is a certainty – there is nothing you can do about it.

Canada has approved the first North American Bitcoin exchange-traded fund, Deutsche Bank is planning to offer crypto custody to hedge funds that invest in the asset class, BNY Mellon will roll out its own digital custody unit, and Morgan Stanley Investment Management is exploring whether bitcoin would be a suitable option for its investors. Is there still a place for retail traders in bitcoin and do you see it becoming mainstream?

What is important to remember is that all of these companies are involved in blockchain projects. Besides the value that they place on the currency itself, they have developed a good understanding of the technology. Until recently, institutional investors had no industry grade digital custody solutions. Now, your banker can buy bitcoins or digital securities and have solutions delivered by companies like BitGo, Metaco or Pyctor to safely custody them. The technology risk has been overcome and its simplicity is being made available to investors.

There is a lot of proof of concept that is being run not only to use bitcoins but to understand how, with this technology, banks can upgrade their current infrastructure. The perception of technology is not a barrier of entry for them anymore.

Michael Saylor famously said it first, and Jim Cramer, host of Mad Money on CNBC, repeated it recently, that it would be “irresponsible” for hedge fund managers and companies not to own bitcoin. Do you agree with that statement?

Every financial product has an associated risk, which is driven by the profile of investors – you sign-up, you identity your risk profile, and then you invest according to that.
What would be irresponsible is if you have customers that are willing to take that risk and you are not able to offer them the option.

What is the difference between bitcoin and other cryptocurrencies?
Bitcoin signaled the emergence of a radically new form of digital money that operates outside the control of any government or corporation. With time, people began to realise that one of the underlying innovations of bitcoin, the blockchain, could be utilised for other purposes. Ethereum proposed to utilise blockchain technology not only for maintaining a decentralised payment network but to power decentralised finance. Ethereum applications and contracts are powered by ether, the Ethereum network’s currency, which is now the second largest cryptocurrency by market capitalisation.

It is a different perspective with regards to investing in ether versus bitcoin, because they each serve a very different purpose. For a currency that is considered a store of value, it depends on how much trust people put into those currencies, while for other altcoins that are pouring into infrastructure, it depends on how much potential you see in that infrastructure and what the limitations are behind it.

It takes around 10 minutes of computer time to “mine” one bitcoin. That’s equivalent to 72,000GW of electricity. Energy usage is therefore one of cryptocurrencies’ biggest negatives. How do you see this problem being solved in the future?

It is not something that will change with bitcoin because that is simply the way it operates.
However, Ethereum – which is the dominant public blockchain to power financial transactions – is moving from proof of work to proof of stake, and this will address the issue. Ethereum is not the only one doing this, there are other blockchains gaining in popularity that are using the same kind of consensus mechanism. Polkadot is one that is progressing critically fast. Speed and energy consumption are driving the adoption of the technology as an infrastructure, and when you know that there are 300,000 developers working Ethereum, you understand that this is just a matter of time.

Do you see blockchain changing the future of finance?

What makes blockchain unique is trust, so it will definitely change market infrastructures. Without trust, you need third parties to manage your counterparty risk, a custodian to preserve the integrity of your assets, etc. Very soon, we will no longer see blockchain only as a store of value for bitcoin. Blockchain will be behind every transfer of value. Right now, that is money, but it will soon be anything carrying value – like art, property, or a car, starting of course with securities.
Blockchain and smart contracts will be mainstream in the future and everybody will use it without even noticing. It will be like email is today – no one cares what protocol is behind it, they are only confronted with it when their laptop crashes and they have to reinstall their email.

Where does Monaco sit in this digital paradigm shift?
There has been a lot of work from the National Council and the Government to provide the regulatory framework for Monaco to position itself within this technology. There is the law that was published last year on STOs, and now there is a proposal from the National Council to allow the digital registration on a shared ledger of unlisted company securities. Tokeny has the technology to power that kind of solution; once the share registry is digitised then you can introduce many other services such as online voting. It will also facilitate the transfer of shares and make the process more transparent and more in line with international regulations.

But this is one element of a much bigger picture that Frédéric Genta is overseeing through Extended Monaco and the digitalisation of the economy.
Everything that can be digitalised, will be digitalised, because Monaco wants to be running at the front of the pack.

Related stories:
Monaco advances its digital finance strategy
Daniel Coheur: “Our ambition is to protect Monaco’s reputation”
Prince: Digital is the turning point in Monaco’s history

Photo source: Pixabay

Crime down, misdemeanours up in 2020

by: Stephanie Horsman
17/02/2021

Monaco saw a clear decline in criminal offences in 2020 compared to the previous year, though tickets and warnings for breaking Covid-related rules kept the force busy.  

The report on crime statistics for 2020 was presented on Tuesday by Minister of the Interior Patrice Cellario and Richard Marangoni, Monaco’s Director of Public Security, who referred to a year significantly marked by the Covid-19 pandemic. The health crisis mobilised police officers, he said, to enforce rules ordered by the Prince and his government.  

Therefore, from March 2020, police carried out 24,415 checks which resulted in 19,299 warnings and 5,116 fines.

The crisis, said the director of public security, was partly responsible for the decline in crime, not only because of the larger presence of police on the streets, but also because of lockdown and restrictions.

Crime other than Covid-related incidents dropped by 19%, with 712 delinquent crimes in 2020 compared to 889 in 2019.

An even larger drop in street crime was witnessed. In 2020, there were a mere 60 incidents, compared to 90 the year before, a dramatic 33% decline.

“It was a ‘particular’ year. It was exceptional. I am happy to say that crime in general is lower,” said Mr Marangoni. “There was a 33% drop in crimes that touch many people such as robberies, car theft, muggings, street violence, vandalism… I think there is also a better quality of life for the residents this year already.”

The only crime that was on the rise in 2020 was related to driving under the influence of alcohol or drugs, which the director of public security attributes to an increase in testing and therefore an increase in arrests.  

Other notable developments of 2020, said Richard Marangoni, were the introduction of the Living Environment Preservation Unit (UPCV), the renovations and updates at police headquarters, and the addition of a state-of-the-art new police boat, the Princess Gabriella, which will support sea rescue missions, stop ocean polluters, and conduct cross-border controls with the Principality’s neighbours.  

He closed by paying tribute to the 88 women of the force, making special note of the two who had been promoted to positions of responsibility, and expressed gratitude to all the force for the delicate handling of matters in difficult times over the past year.

 
Photo of Minister of the Interior Patrice Cellario and Monaco’s Director of Public Security Richard Marangoni and by Stéphane Danna for the Government Communication Department
 
 

France allows day trips to the Var

by: Cassandra Tanti
17/02/2021

Monaco residents will now be able to travel as far as the Var without having to present a negative Covid test, under a new relaxation of the 30km rule. But the Prince’s government is still fighting to have the 24-hour deadline lifted altogether.
It is the second exemption that French authorities have made for Monaco since the 30-kilometre travel restriction was introduced at the beginning of February.
Now, residents of the Principality can journey to the Var department without having to present a negative PCR test, as long as the trip is less than 24 hours. This is currently the case for travel from Monaco to the Alpes Maritimes department.
“This is an additional relaxation which is in line with what the Prince’s Government is asking the French authorities to do,” the government said in a statement late Tuesday evening.
As a result, the Prince’s Government says that it will reciprocate the move. It means that anyone coming from the Var to Monaco must present a negative PCR test of less than 72 hours. Commuter workers, schoolchildren and students, as well as residents of the Alpes-Maritimes and the Var coming to the Principality for less than 24 hours are exempt from this provision.
While welcoming the move, the government says that it still does not go far enough, and that it will “continue constructive dialogue with the French authorities in order to lift the 24-hour deadline which limits travel in the Var department as well as in the Alpes-Maritimes which constitute Monaco’s catchment area.”
 
Photo: Port Grimaud in the Var department, by Monaco Life all rights reserved
 
Related stories:

30km rule remains for long trips

 
 

Monaco’s incidence rate halved within a week

by: Cassandra Tanti
16/02/2021

The Prince’s government has agreed to reveal key screening details in its regular communication about Monaco’s coronavirus situation, including the incidence rate – an important factor in determining government action and which has just halved within a week.  
At a recent meeting of the Joint Covid Monitoring Committee, Stéphane Valeri, president of the National Council, requested that the government share more details of its Covid strategy in its public communication to give the population a clearer understanding of the health situation in the Principality.
On Monday evening, the government said in its daily Covid count that it will make weekly updates every Monday on the screening strategy implemented in the Principality.
Therefore, it was revealed that, from the period between 8th and 14th February, there were 5,422 Covid-19 tests carried out in the Principality. Of those, 105 people returned a positive result, putting the positivity rate in Monaco at 5.68%.
The all-important incidence rate is also now being communicated weekly. This refers to the number of positive coronavirus cases per 100,000 inhabitants over a 7-day period and reflects how quickly incidence is increasing or decreasing. It is important because it provides a more complete picture of the Covid situation in the Principality and is fundamental in determining the government’s course of action.
The incidence rate of the previous week was therefore 276.32, compared to 436.84 the previous week – a significant drop and a move in the right direction for the Principality.
 
Photo by Michael Alesi, Government Communications Department
 
 

The story behind ‘Grace Forever’ at the CHPG

by: Cassandra Tanti
16/02/2021

Local artist Marcos Marin talks to Monaco Life about his latest instalment of Princess Grace in the maternity ward of the CHPG and what it was like to watch Prince Albert unveil the portrait.
It was a special day for everyone on 9th February when ‘Grace Forever’ was officially unveiled at the Princess Grace Hospital Centre, particularly for its creator Marcos Marin, Benoîte de Sevelinges who requested the work, and Prince Albert, her son.
Just as she cared for the citizens of Monaco for 26 years, Princess Grace now looks upon those who come to bring new life to the Principality or pray in the hospital chapel.
But it is not the first portrait of Princess Grace that Brazilian artist Marcos Marin has lovingly created and, as he revealed to Monaco Life, it certainly will not be the last.
Monaco Life: Where did the inspiration for this portrait of Princess Grace come from? 
Marcos Marin: Finding inspiration to make a portrait of Princess Grace is relatively easy in the face of so much beauty, serenity and history of an icon. I was motivated to create it after the director of the Princess Grace Hospital Centre (GHPC), Benoîte de Sevelinges, said that she wanted to have a new, large portrait of the princess. I am also in the middle of a project called ‘Grace Forever’, which is a series of portraits, sculptures and Grace paintings. So, finding a prestigious location among a magnificent art collection, that of the CHPG, was a union of desire, opportunity and fulfilment.
Can you tell us about the artistic process?
This portrait of Grace is a 230x200cm acrylic painting on canvas, which occupies a floor to ceiling space at the entrance of the maternity ward, embracing anyone who enters into a spiral of lines from the pupil of Grace’s eyes.
A study of the dimension of the hall and the movement of the spectator in the passage gave rise to the concept of the work. I chose a picture of Grace when she was a princess – serene, kind and engaging.
After deconstructing the picture into almost abstract lines, I did the physical hand execution of the work in my studio in Torri, Italy. The work was then assembled on stretcher wood and framed in Ventimiglia. There was already a robust wooden structure at a perfect angle at the hospital, and we used it to support the work, which finally became a mural.
Can you tell us more about your ‘Grace Forever’ project?
In 2019, it would have been Grace’s 90th birthday, and it was Prince Albert’s wish to celebrate in memory of his mother. Luciana de Montigny, a friend of the Prince, encouraged the organisation of a series of events, and a large gala was celebrated at the Hôtel de Paris in Monte-Carlo on 2nd November 2019. I was invited to present a sculpture also entitled ‘Grace Forever’ that would be co-signed by Prince Albert. The work was auctioned for charity.
Another similar sculpture, but three-metres long, was presented in Paris at the Mostra GV Monumental. Other editions of ‘Grace Forever’ sculptures were also presented at the New York Princess Grace Foundation Gala in 2019.
With the pandemic, other ‘Grace Forever’ projects were interrupted, until finally in December we installed Grace’s large portrait at the Monaco hospital. It was officially inaugurated on 9th February when Prince Albert also co-signed the work.
Another similar painting, part of the ‘Grace Forever’ project, will be presented in Singapore at the Prince Albert II of Monaco Foundation Gala in November 2021.
This huge and audacious project was carried out thanks to the great patron and art collector Riccardo de Caria, donor of the work to the hospital.

Prince Albert co-signed the ‘Grace Forever’ portrait by Marcos Marin

What was that moment like when Prince Albert officially unveiled the portrait of his mother in front of other key Monegasque personalities?
Despite the strict protocol surrounding Covid-19 and also out of respect, the atmosphere was smooth and serene, with a certain emotion that Grace’s face exudes. The strength of art spoke for itself.
For us, Grace is the princess, the Hollywood actress. But for Prince Albert, it is a portrait of his mother; he had another emotional perspective.
Also in attendance at the unveiling were Minister of Health and Social Affairs Didier Gamerdinger, Chairman of the Board of Directors at CHPG André Garino, Director of the Hospital Benoîte de Sevelinges, artist and President of the Brazil Monaco Project association Luciana de Montigny, and a representative of the patron, Riccardo de Caria.
How do you feel about the portrait’s positioning in the maternity ward of the CHPG?
I am very happy that once again my work of art is a vehicle with which people can honour the memory of Princess Grace and her legacy to the Principality of Monaco, a country that has welcomed myself and my art. I know how much Princess Grace is respected by her people and how her beautiful story still enchants the world.
My portrait is situated next to incredible works of art by great masters, such as the huge Vasarely installed nearby in this wing of the hospital. Art plays a very important role in Monaco and this is vividly present in its history. I hope my Grace can embrace the hearts of the people who go there at the entrance to both the maternity ward and the chapel of the hospital as well.
How many portraits of Grace Kelly have you painted so far?
I think I have already lost count, but at least 15 very important portraits have been made in these past 16 years of living in Monaco – works that found brilliant destinations, fulfilled charitable missions and are part of the history of Monaco.
A Princess Grace sculpture by Brazilian artist Marcos Marin

Can we expect more unveilings of your work soon?
I hope so. I am waiting for my schedule of events in Monaco, since we have reworked many plans due to the pandemic. At the beginning of March, I am due to inaugurate an imposing public monument in Ventimiglia at Cala del Forte, where an extension of the port of Monaco is located. And I am preparing some portraits of personalities for the Monte-Carlo Television Festival scheduled for June and the Cannes Film Festival in July.
 
Related stories:
Interview: Brazilian artist Marcos Marin