image
image
image

All Threads

Spread between BTC/USD and BTC/USDT Crosses $300

The imbalanced peg between the US Dollar and Tether LLC’s USDT has resulted in a $300-spread in Bitcoin price.

At the press time, the aggregated Bitcoin-to-dollar exchange rate on non-Tether exchanges is approximately 6430-fiat. Meanwhile, on Tether exchanges like BitFinex, the same forex rate is above 6700-fiat. The strange trading activity, which started surfacing on Monday, has seen traders getting their money out of USDT however possible.

The exchanges that offer USDT liquidity, including BitFinex and Binance, therefore experienced a massive drop in USDT value against its quote currencies, which is mainly Bitcoin, USD, and Ethereum.

BTC/USD value on Coinbase GDAX

Simultaneously, the exchanges that didn’t feature USDT experienced their Bitcoin rates driven by increased arbitrage activity. Traders purchased the digital currency at a lower price, transferred it to the wallets of Tether-enabled crypto exchanges, and later shorted their holdings either for other stablecoins, the USDT itself, or the dollar.

The USDT decline itself surfaced owing to growing community mistrust of Tether after its prime exchange BitFinex dropped Noble Coin as its banking partner, eventually becoming insolvent, according to reports. The exchange, however, refuted the rumors and said its withdrawals were working fine.

USDT FUD

Meanwhile, the community continues to believe that Tether does not have an adequate amount of dollars to back its USDT supply, about which BitFinex, Tether’s partner exchange, is already aware. And while USDT is one of the highest volumed cryptocurrencies, the exchange couldn’t handle the capital flight towards Bitcoin, resulting in its stark drop and Bitcoin’s steep rise.

BTC/USD up over $300 on BitFinex

BitFinex in its latest statement clarified that traders on its platform trade Bitcoins against the dollar, not USDT.

“USDT on Bitfinex is used as a transport layer, used if a trader wishes to deposit or withdraw in e.g. Omni USDT or Ethereum USDT. Until the trader specifically chooses to transport their fiat in Tether-denominated USD, all their fiat holdings on Bitfinex will be held in the form of fiat USD.”

Believing what BitFinex stated, traders were genuinely moving their fiat holdings into Bitcoin on its trading platform, buying the digital currency at a prime value. Hence, the Bitcoin-to-dollar exchange rate went up enormously.

Community Demanding Audit

The spread between Tether and non-Tether exchange is expected to stay as the confusion mounts. The community has asked Tether, LLC and BitFinex both to have their balance sheets audited and end the FUD once for all. The question is now whether traders are exchanging their digital assets for real fiat funds or for a currency that may or may not be artificially pegged to the dollar.

Tether and BitFinex haven’t confirmed whether they would go through an independent audit or not.

https://www.ccn.com/spread-between-btc-usd-and-btc-usdt-crosses-300/

  • 0 Paxex
  • 0
  • 218
  • 0

Newsflash: Bitfinex Unveils ‘Distributed Banking Solution,’ Resumes Fiat Deposits

Cryptocurrency exchange giant Bitfinex has unveiled a “distributed banking solution” that it says will be a “resilient” solution to its much-chronicled banking woes.

Announced on Tuesday, the new system will allow KYC-verified users to immediately begin initiating fiat deposits across USD, GBP, JPY, and EUR, which had been paused for almost a week.

Under the new system, eligible users must initiate a fiat deposit through their exchange accounts, which involves specifying the exact amount and currency they plan to deposit. Within 48 hours, the cryptocurrency exchange will send the user a deposit notification approving the transfer and providing the bank details specific to that individual transaction.

Alleging that this new system will allow the exchange’s operations to be more “durable,” the company said:

“We believe this system to be significantly more durable in the face of sustained attacks by our competition and their supporters. Ongoing campaigns against us will only result in our company becoming stronger and better.”

Bitfinex — which reportedly shares a management team with Tether, issuer of the controversial USDT stablecoin — did not reveal the bank(s) with whom it is working, nor did it explain the nature of those banking relationships.

 

However, screenshots purportedly from Bitfinex accounts show a message that sternly warns traders not to reveal banking information to anyone outside of their financial institutions, as doing so could “damage…the entire digital token ecosystem.”

The message says:

“This banking information is being provided to you for purposes of contributing good faith funding to your account on Bitfinex….This banking information is commercially sensitive and confidential. You should be very careful with this information. You are asked to keep this information to yourself and to not share it except with your financial institution. Divulging this information could damage not just yourself and Bitfinex, but the entire digital token ecosystem. Accordingly, you are cautioned that there may be serious negative effects associated with this information becoming public.”

As CCN reported, Bitfinex has long struggled to find a stable banking partner, ever since Wells Fargo cut off access to its services last March. The exchange is said to have bounced around to a variety of banks in the months that followed, before seemingly finding a willing partner in Puerto Rico’s Noble Bank. However, Noble Bank recently filed for bankruptcy, about the same time that Bitfinex and Tether withdrew their reserves from the institution.

Following its departure from Noble Bank, Bitfinex is said to have briefly held funds at banking giant HSBC, though that relationship was reportedly severed so quickly that it’s not clear whether HSBC was aware that it was holding Bitfinex funds when the account was opened.

According to CoinMarketCap, Bitfinex regularly ranks as one of the world’s largest cryptocurrency exchanges. Its market share has climbed in recent days amid market volatility connected with the loss of Tether’s USD peg. Over the past 24 hours, the platform has seen nearly $544 million in volume, which is second only to Binance. In the past month, the company has processed more than $13.5 billion worth of trades, making it the fourth most popular cryptocurrency exchange.

https://www.ccn.com/newsflash-bitfinex-unveils-distributed-banking-solution-resumes-fiat-deposits/

  • 0 Paxex
  • 0
  • 215
  • 0

Kenyan Government to Use Blockchain to Distribute Affordable Housing

The Kenyan government plans to leverage blockchain technology for the distribution of new government-funded housing units, according to reports from local news outlet the Star.

The Kenyan National Housing Fund will finance the initiative under the Finance Act 2018, and it plans to create an efficient allocation of the houses to those who need it using the distributed ledger technology.

The State Housing and Urban Development Permanent Secretary Charles Hinga said the Fund expects to raise about Sh55 billion a year (around $545 million) to build “cheaper 500,000 housing units.”

The Star quoted Cabinet Secretary for Transport and Housing James Macharia who spoke during a housing agenda meeting with the World Bank in Nairobi yesterday. He said the nascent technology would be used to distribute housing to deserving applicants in a bid to address past issues concerning “graft fears arising from beneficiaries and even legislators.”

“Kenya will use blockchain technology to ensure the rightful owners live in government-funded housing projects.”

According to Hinga, the ratio of mortgage to rent in the country is 6 to 1 and affordability of the properties remains a problem.

Out of over 2 million Kenyans employed in 2016, only three percent earned over 100,000 Kenyan Shillings (around $992).

Another challenge that could spring up as the government is set to build affordable homes is on the allocation of the properties as Kenyans have lost “trust in what the government does” regarding housing. Previous wasteful spending on expensive capital projects, doesn’t help matters as well, the government official added. Hinga was referring to the National Youth Service scandal I and II, where civil servants, including the Director General of National Youth Service, and other private sector officials were arrested for fraudulent activities that led to the looting of $78 million from government coffers.

Kenya is one of Africa’s leading countries regarding blockchain and cryptocurrency development. Some of the region’s largest blockchain remittances originated from Kenya. Last month, the chairman of the Distributed Ledgers and Artificial Intelligence task force Bitange Ndemo advised the government to tokenize the economy in a bid to tackle corruption and uncertainty in the country.

“We must begin to tokenize the economy by giving incentives to young people to do things which they are paid through tokens that can be converted to Fiat currency,” Ndemo had stated at the time.

Active legislative discussions over blockchain and cryptocurrency related programs show the interest that the Kenyan government has in blockchain technology. This is evident in the government’s effort towards finding proper regulatory frameworks for the technology over time. In August 2018, the country’s electoral commision even showed signs of adopting blockchain technology in voting processes.

Speaking to the BBC in May, Information Minister Joseph Mucheru confirmed that the country is looking into deploying blockchain technology in the country’s land registry.

Under the framework, Kenya’s notoriously porous land registry database will be recorded on a blockchain, effectively making it impervious to fraudulent changes that corrupt officials currently effect in exchange for a bribe.

https://www.ccn.com/kenyan-government-to-use-blockchain-to-distribute-affordable-housing/

  • 0 Paxex
  • 0
  • 191
  • 0

A brief history of cryptocurrency hardware wallets

Ledger Nano S hardware wallets are 20% off from now until 22 October.

This is a public service announcement:

The Ledger Nano S cryptocurrency hardware wallet is now 20% off, thanks to a special promotion running until 22 October.

This is a second public service announcement:

Hardware wallets are cool.

A brief history of the hardware wallet

Early bitcoin wallets weren't the most user friendly things around. Operating them required moderate technical chops, which was one of the most obvious obstacles to wider bitcoin adoption. At the same time, people's bitcoin stash was in many cases just a forgotten password or fried hard drive away from being lost forever at any given time.

A lot of bitcoin disappeared forever in those days. Fortunately, the stuff wasn't worth that much, so people could afford to be philosophical about the loss of what would now be hundreds of millions of dollars.

Nice. Source

Then 2014 happened, and bitcoin prices did this:

Bitcoin is valued at $1,000!?!? This is the worst bubble in history.

Suddenly, people were rightfully very worried about how to best store their newfound wealth and protect it from all the newfound people interested in stealing that newfound wealth. Fortunately, the surge also gave developers the means to start creating solutions.

It's no coincidence that 2014 was the year hardware wallets first hit the market.

2014

Xapo was conceived in 2013, then opened its doors in March 2014, primarily to serve exchanges, apocalypse-prepping libertarians and other security-conscious customers. It was one of the first high security hardware storage solutions, but it really wasn't a consumer-grade service.

The first consumer hardware wallet as we know them today was the TREZOR (Czech for "vault." Sorry, "VAULT"), arriving on the market in August 2014. It was soon joined by a bevy of other options, many of which no longer exist.

The Goochain Citadelle, for example, wound up after its suppliers dropped away, while the EliptiBox never really got traction. RIP.

In this respect, the current field of the most popular hardware wallets has already been through a strict Darwinian market testing process, so to speak. Basically, if it's been around since 2014 and is still popular, you know it's pretty good. Security-wise, all the most popular options are top of the line.

The Ledger Nano S might be a special case though, since it's the most popular multicurrency hardware wallet currently in existence.

The first Ledger Nano (an earlier model, not to be confused with today's Ledger Nano S) was released in late 2014, along with the rest of the pack, and quickly managed to stand out thanks to its attractive price and security features – specifically, its use of a second 2-factor authentication (2FA) card to be used in tandem with the original Nano. This wasn't ideal for user experience, but the hassle was still minimal and it was an effective way of bolstering security and cutting costs, which allowed the Ledger Nano to slide into a very competitive price point.

It was a very deliberate design choice, said Ledger CEO Eric Larchevêque at the time.

"Hardware wallets are essential to the development of bitcoin. We strongly believe in decentralized, open and affordable products. This is one of the main reasons to have chosen smartcards. On top of the added security layers given by decades of research and development, production costs are extremely low," he said.

2015-2016

But it was just the beginning, and some aggressive further developments would be needed to keep Ledger at the forefront.

The popular next step included larger and more defined screens for devices to further improve security while also giving something back to the whole user experience. KeepKey hit the market in 2015 to focus on those elements and did well for itself by virtue of its large, clear display screen.

Ledger was hot on its heels though, and the next-gen Ledger Nano S arrived in August 2016. It added the now-standard screen in lieu of the 2FA card, cementing its position as one of the most popular options around and sliding into the market as the cheapest hardware wallet with a screen.

2017-now

The Ledger Nano S was still standing there when 2017, and its accompanying crypto mania, rolled around. Suddenly everyone was doing bitcoin, and there wasn't a hardware wallet manufacturer on the planet able to keep up with the unprecedented surge in demand. As one of the most highly-regarded options at the time, the Ledger was in a position to catch as much of the new market as it could carry, and the Ledger Nano S was flying off the shelves.

Unfortunately, the hype also attracted its fair share of scammers selling fakes or hacked wallets on Amazon and elsewhere. These fake wallets might not work as promised and, in some cases would even steal a person's private keys.

Incidentally, that's also why a good rule of thumb is to only ever buy a hardware wallet from the official website and to make sure its tamper-proof packaging arrives intact. You never want to buy a second-hand hardware wallet.

Anyway, the Ledger Nano S is 20% off at the official site right now. Not bad. Not bad at all.

https://www.finder.com.au/a-brief-history-of-cryptocurrency-hardware-wallets

  • 0 Paxex
  • 0
  • 183
  • 0

Audited stablecoins are releasing millions of coins as Tether sags

Cryptocurrency traders are seeking Tether alternatives, and they're finding them.

Paxos launched on 10 September 2018 as a stablecoin tethered to the US dollar. Since then, it's lobbed a whopping US$50 million onto the Ethereum blockchain (PAX is an ERC20).

Paxos's main point of difference is that it's one of the first US stablecoins to be approved by regulators, specifically by the New York Department of Financial Services. And as is usual for just about every single backed stablecoin other than Tether, its holdings are regularly audited by registered accountants. It also received a heavy dose of private investment before its launch.

But a large part of its release might have come in the last couple of days. A similar picture is emerging among other stablecoins.

A good time to be stable

Paxos took off quickly after launch, with precisely $14,644,074.19 issued between the 10 September launch and the first audit report (PDF), from the Withum accounting firm on 28 September.

According to the blockchain, that number is now up to over 50 million, in the form of about 50 million PAX, currently "worth" $52,144,868.18 due to the strange situation currently infusing the cryptocurrency markets around a sudden loss of faith in Tether.

Seemingly all stablecoins except Tether are currently trading at a premium. PAX is no exception, having visited numbers as high as $1.16 within the last 24 hours according to LiveCoinWatch.

This means Paxos has issued a staggering $36 million in the last two and a half weeks, much of which is likely due specifically to Tether's slump. People are definitely keen on trading out their now-dubious Tether for the more confidence-inspiring PAX.

Paxos vice president of marketing and communications, Dorothy Chang, has also suggested that a large amount of Paxos's circulating $50 million came out in the last couple of days as a direct response to the Tether troubles.

"We *just* announced 2 hrs ago that Paxos had issued $36M a month after launch. And now… we are over $50M already. Demand for is accelerating faster than I can tweet up with," - Dorothy Chang.

Other stablecoins are similarly growing and trading at mild premiums, including the Gemini Dollar (now priced at $1.0282), and TrueUSD (now priced at $1.0301).

TrueUSD may also have had a wild ride in the last couple of days. Its last audit on 1 October verified a balance of about $103 million, but that's now up to almost $160 million – this means almost $60 million has been released in just two weeks.

The enormous high-speed growth of audited Tether alternatives is clearly showing that the markets are ready for an alternative. Markedly elevated Tether trade volumes and a price that's been consistently sagging under $1 for about a full day now, even as other stablecoins are riding above their own pegs, suggests that people are eagerly shedding their Tether.

You can't blame the markets. With nearly-identically functioning, yet much more transparent, reliable and trustworthy stablecoins flooding the market, most people probably have little reason to keep using Tether.

It's worth noting that everything going on around Tether and its bedfellows at Noble Bank and Bitfinex isn't necessarily just the cause of alternative stablecoins flooding the market. It might also be the result of the solvency issues that are circulating around Tether. A product such as Tether will inevitably have a tough time when it's no longer competitive, and the situation will inevitable come to a head at some point.

https://www.finder.com.au/audited-stablecoins-are-releasing-millions-of-coins-as-tether-sags

  • 0 Paxex
  • 0
  • 229
  • 0

LINE Corporation’s LINK token goes live on BITBOX, instantly drops

It might be a curious example of a more market-ready crypto ecosystem.

LINE Corporation and its friendly mascots are big names in certain parts of the world, but its recently launched BITBOX exchange isn't so well known yet, with modest trade volumes of only $8.5 million in the last 24 hours.

But as of today it offers something that no other exchange can: the LINE Corporation LINK token, which launched today.

Launch party

BITBOX is kicking off LINK trading with several celebratory airdrop events, starting with TRON, where LINK holders receive TRX based on the amount of their LINK holdings and TRX depositors getting LINK airdrops.

And LINK traders are kicking off the listing by selling en masse. In the couple of hours since launch, LINK token prices have dropped a solid 25%.

Source: BITBOX

As they say, dumping is generally more fiscally responsible than buying immediately after a coin lands on an exchange.

juicy crypto words

So far, the LINK token can be used to pay/play on LINE's Wizball knowledge sharing app and the 4Cast prediction market app. If those sound familiar, it might be because LINE is apparently aiming to create its own centralised crypto-powered (d)app network platform and turning some of the more interesting app ideas into games for it.

The LINK token doesn't have a lot of use yet, except on those apps, but in the future it will be usable as a native token for the BITBOX exchange, where it can be used to pay exchange fees at a discount.

When used to pay these exchange fees, LINE says the LINK token will be treated as though it has a value of at least US$5, regardless of current market prices. So that might be the price floor they're aiming at.

"We're very pleased that users are now able to trade LINK on BITBOX, which is a major step forward in our plans for creating a token economy that rewards user participation," said LINE CEO Takeshi Idezawa. "We think it is important to promote co-creation and mutual growth with LINK, while ensuring BITBOX continues to develop as a user-friendly platform that adds value to those who use it and contribute to our services."

In the future, LINE intends for its users to be able to use LINK to pay each other and LINE itself for music, videos, general in-app money transfers, games and just about anything else on the platform.

The LINE app ecosystem might be an interesting example of one of the more ready and developed semi-centralised cryptocurrency ecosystems out there, broadly similar to what TRON seems to be aiming at, so it might be worth keeping an eye on it to see how it develops.

https://www.finder.com.au/line-corporations-link-token-goes-live-on-bitbox-instantly-drops

  • 0 Paxex
  • 0
  • 176
  • 0

The Certara drug development firm will be using Hedera Hashgraph

Beyond the blockchain, DAG ledgers are gaining traction.

A huge amount of time, money and effort is committed to developing new pharmaceuticals. Developing a new molecular entity, as it's called, is now estimated to cost an average of $1.8 billion. The real costs are difficult to assess cleanly, but it's clear beyond any doubt that it's enormously expensive, and that the costs are increasing quickly.

Minimising those time, money and effort commitments is where firms like Certara come in.

Today, 90% of all novel FDA drugs approved by the FDA in the last 3 years were supported by Certara software or services, and its clients now include hundreds of global biopharmaceutical companies, academic institutions and regulatory agencies across 60 countries.

As new technology opens new doors, investments in improving research and development (R&D) efficiency become more worthwhile, and as costs increase, it becomes more worthwhile to put some of that R&D money towards finding new ways of making R&D more efficient.

Now Certara is eyeing Hedera Hashgraph – a directed acrylic graph-style (DAG) ledger rather than a blockchain – as one of those new technological doors it can open for itself, and its clients, through its regulatory-focused company, Synchrogenix.

A perfect regulatory fit

Blockchain was quickly put forward as a potential solution for managing confidential patient data in the medical industry, but its benefits are equally applicable in pharmaceutical development and the wider life sciences world.

"We are experiencing a period of unprecedented growth in science and technology," said Synchrogenix President Kelley Kendle. "The promise of distributed ledger technologies, such as those used by other highly regulated industries, including financial, legal and insurance, and now in life sciences, is to create an open, transparent and yet confidential infrastructure to reap the many benefits of that explosive growth.

"For example, by digitizing R&D, lifecycle management, and real-world evidence data in a secure and trusted manner, we can identify the right patients at the right time for a given treatment, while maintaining trust and privacy for all stakeholders. We can also enhance patients' ability to manage, engage and control how their data can be used to further innovation or advance the availability of treatments."

juicy crypto words

The reason Synchrogenix is looking at Hedera Hashgraph, rather than other distributed ledgers, is because it might present a highly-scalable system that's able to operate in near real-time and handle information from a diverse range of sources promptly and confidentially. In the case of pharmaceutical development, where a lot of data needs to be meticulously handled, tracked and appropriately recorded and communicated at various times, elements of automation could go a long way.

"Regulators around the world, including those I have worked with at the Food and Drug Administration and Centers for Disease Control and Prevention, are openly embracing the use of advanced technology to progress their mission," added Synchrogenix VP of Technology and Innovation Jim Nasr. "Public distributed ledger technology, particularly in the manner provided by Hedera, provides a good option for global regulators, allowing them to achieve the compliance and transparency they need in a secure, high-performance network designed for collaboration. I believe this is the future for accountable collaboration and compliance in the life sciences and healthcare."

Synchrogenix has already developed a proof of concept for industry supply chain management in collaboration with Hedera, focused on how to best distribute medications and make them readily available where needed.

Elsewhere, DHL and Accenture have teamed up to fight fake pharmaceuticals with what's probably a broadly similar supply-chain drug-tracking solution, and Intel sharpened its blockchain skills while also aiming to help curb the opiate epidemic in the US.

"Highly regulated industries such as healthcare and life sciences are ripe for the accountability that distributed ledgers like Hedera can bring to their supply chain,” said Jordan Fried, VP of Global Business Development for Hedera. "We are delighted to be working with Certara to usher in a new era of visibility and transparency into a market that touches so many people's lives every day."

There are a number of pharmaceutical supply chain blockchain solutions in the works, but Certara's regulatory-technology side might be looking beyond the blockchain.

https://www.finder.com.au/the-certara-drug-development-firm-will-be-using-hedera-hashgraph

  • 0 Paxex
  • 0
  • 195
  • 0

Fidelity blindsides cryptocurrency industry with heavy entry

This is some of that institutional investment everyone's been talking about.

Fidelity is a Wall Street giant, even by the standards of Wall Street giants. It administers $7.2 trillion in assets for its 27 million customers and spends $2.5 billion per year on tech in an effort to compete with tech companies on their own turf in the fields of artificial intelligence, virtual reality and blockchain.

As is usual for its tech ventures, these experiments take place away from Fidelity's retirement and mutual fund bread and butter.

Such is the case with Fidelity's new crypto company, Fidelity Digital Assets.

Going loud

The idea of commercialising a standalone Fidelity crypto company only came along in the middle of last year said Tom Jessop, head of Fidelity Digital Assets. But Abigail Johnson, Chairman and CEO of Fidelity Investments, has been following and trading in the cryptocurrency space as early as 2014, with ventures including a New Hampshire bitcoin mining farm in 2015.

juicy crypto wordsJohnson "is very interested in this and stays up on developments in the space in quite a significant way," Jessop says.

News of Fidelity's entry just broke today, and no one knew about it in advance, Barron's says. Overall, the completeness, sophistication and market-readiness of Fidelity's solutions, coupled with its readiness to invest heavily in cryptocurrency's future, might come as a shock to many.

This isn't unusual for its tech ventures though. It's still mostly thought of as a financial services company, and as a non-public family-owned company, its spending doesn't attract the same scrutiny as other companies. If anyone could blindside the cryptocurrency industry with such a heavy landing, it would probably be Fidelity.

"You might look at the crypto world and say, 'Wow, is this a new thing?' but we've been managing key materials for a long time," Jessop said. "We took our learnings in how to run enterprise security, then through our exploration of bitcoin and some of the people we've hired, quickly developed some of the crypto native expertise and federated the two of those things."

In this way, Fidelity has been an under-the-radar crypto company for years, only stepping into the light today.

Fidelity Digital Assets

Its services will initially be available to institutions such as hedge funds, endowments and family offices, but not to retail traders. These services will initially include ways of trading bitcoin and Ether through an existing internal crossing engine and a smart order router.

However, the most significant piece of it might be that it's also offering vaulted cold storage crypto custody solutions.

This is so important for a number of reasons:

  • It's been an elusive element for a long time. Despite all the wider institutional interest from Wall Street, custody and its associated security issues have been the most common stumbling block. This is why firms like Goldman Sachs and Morgan Stanley copped out with bitcoin derivatives instead. Essentially, they just started selling financial products linked to bitcoin prices, rather than "physical" bitcoin itself.
  • Physical bitcoin solutions like Fidelity's offering mean cryptocurrency markets can actually start responding to demand from institutional traders who use them.
  • It might be the first or second major physical institutional bitcoin solution to hit the market, facilitating the process of real, formal bitcoin price discovery for the first time. The only other similar solution moving to market right now is Bakkt, a digital asset platform operated by Intercontinental Exchange. Bakkt will be launching its physical bitcoin futures derivatives in November, while Fidelity Digital Assets is onboarding its first clients now and expects to be available in early 2019. The arrival of both of these within a couple of months of each other, where previously there were zero, might be reasonably expected to have substantial market impacts.

It's not yet known which crypto exchanges Fidelity Digital Asset customers will be purchasing through, via Fidelity, but Jessop says all counterparties will be subject to Fidelity's usual standards.

"We have a pretty extensive onboarding procedure for these types of counterparties, which involves diligence on their financial strength as well as their regulatory procedures like 'know your customer' and anti-money laundering. We are certainly only going to connect to those counterparties that we feel good about," he said.

As for the bear market, Jessop isn't concerned.

"I think for some people, price is a significant indicator of market health, but that’s not how we think about it," he said to Barron's. "We think about institutional demand irrespective of price. We think about the application of technology to new assets. I don't think our success as a business is predicated upon bitcoin at a specific price. It isn't."

https://www.finder.com.au/fidelity-launches-cryptocurrency-custody-and-trading-service

  • 0 Paxex
  • 0
  • 185
  • 0

Sony Develops Blockchain-Based Rights Management System for Digital Content

Sony Corporation has announced the launch of a blockchain-based digital rights management system.

In a statement released on its website, the company revealed that the new framework is built on a prior system for authenticating, sharing, and managing rights to educational data previously developed by Sony and Sony Global Education.

In April, CCN reported that Sony filed an application for a patent to store users’ digital rights data on the blockchain. In its patent application, Sony warned that “conventional solutions may not be very reliable and rely on one unique point of failure which could lead to the loss of all the acquired content.”

Blockchain-Enhanced Rights Management

Having recognised the gap in the digital rights management process that blockchain technology can solve, Sony then put into action its plan to develop a suitable system for digital content using blockchain technology. To this end the company filed an application for a patent to store users’ digital rights data on the blockchain on April 26 this year.

An excerpt from the statement reads:

“Today, advances in technologies for digital content creation allow anyone to broadcast and share content, but the rights management of that content is still carried out conventionally by industry organizations or the creators themselves, necessitating a more efficient way of managing and demonstrating ownership of copyright-related information for written works.”

In addition to the functionality of the earlier management system it is based on, this system also provides digital rights management for several new types of content including electronic textbooks and other educational content, music, films, audio, games, scientific data, medical data, VR content, and e-books.

In the statement Sony said:

“[It is] specialized for managing rights-related information of written works, with features for demonstrating the date and time that electronic data was created, leveraging the properties of blockchains to record verifiable information in a difficult to falsify way, and identifying previously recorded works, allowing participants to share and verify when a piece of electronic data was created and by whom.”

In so doing, Sony hopes to become a thought leader in the use of blockchain technology in the educational field through Sony Global Education and in data dispersal and management through Sony Group. The company also intends to continue to explore possible commercial avenues by piggybacking on the blockchain’s technological and commercial advancements.

Ultimately Sony says, the goal is to open up a new world of opportunities for blockchain technology in education and data and information management.

https://www.ccn.com/sony-develops-blockchain-based-rights-management-system-for-digital-content/

  • 0 Paxex
  • 0
  • 180
  • 0

NSW Registry Manager to Test Land Conveyancing on a Blockchain in Australia

The land registry manager of New South Wales in Australia has partnered with a blockchain technology firm with a view of applying distributed ledger technology to property conveyancing.

According to the Financial Review, a proof of concept on a selected number of use cases will be conducted by the New South Wales Land Registry Services and blockchain tech firm Chromaway using the latter’s open source technology in recording data, facilitating transactions as well as offering smart contracts.

Chromaway, which is based in Stockholm, Sweden, has been offering its open source blockchain technology for over four years now and among its clients include the Swedish land registry for whom it has done similar work. The proof of concept is expected to be completed early in 2019.

“Blockchain and distributed ledger systems are being implemented in land jurisdictions overseas where they are already delivering significant benefits,” said the CEO of NSW Land Registry Services, Adam Bennett. “NSW LRS is therefore working with ChromaWay to investigate and test selected use cases that might be relevant to our market.”

Better Security than PEXA?

According to Chromaway, a blockchain-based registry system will be offer immutability while maintaining access and providing search features. Additionally, it will reduce data duplication, enhance information transparency and improve security.

The issue of security will be especially critical since the Property Exchange Australia (PEXA), a national eConveyancing platform, has disappointed on this front. In June, for instance, a Melbourne-based family lost AU$250,000 through PEXA in a hacking attack.

The blockchain-based property conveyancing initiative comes at a time when the state government of New South Wales has already mandated the registry manager, which is now privately owned after being offloaded last year, make a complete transition to eConveyancing by next year in July.

The directive by the state government of New South Wales on eConveyancing will mean that starting in the next financial year all mainstream property transactions in the state will be required to be lodged electronically. In the 2017 budget approximately AU$8 million to achieve this goal.

Additionally, the state will cancel all paper-based Certificates of Title. At the moment banks and other financial institutions are in the process of converting the paper-based documents to electronic versions.

National Disability Insurance Scheme

This is not Australia’s first initiative by either a state government or the federal government in the testing of blockchain technology. Earlier this month, for instance, CCN reported that the Australian government was testing the use of blockchain applications in the management of the country’s disability insurance plan.

 

Jointly developed by the Industrial Research Organization, the federal science agency of Australia, for the National Disability Insurance Scheme, the use of blockchain technology is expected to cut costs and eliminate paperwork.

https://www.ccn.com/nsw-registry-manager-to-test-land-conveyancing-on-a-blockchain-in-australia/

  • 0 Paxex
  • 0
  • 198
  • 0

Europe is killing it in crypto

In the race to be the world's crypto capital, European countries are crushing peers in the US and Asia. The value of "token sales" in Europe is about $4.1 billion, far above the $2.6 billion in the US and $2.3 billion in Asia.

null play

null

(Fabric Ventures)

  • The value of "token sales" in Europe this year is about $4.1 billion, far above the $2.6 billion in the US and $2.3 billion raised in Asia.
  • Until the crash of 2008 it was the banking industry that siphoned off Europe's top minds. Not anymore.

In the race to be the world's dominant crypto region, European countries are crushing their peers in the US and Asia.

The value of "token sales" in Europe this year is about $4.1 billion, far above the $2.6 billion in the US and $2.3 billion raised in Asia. In a token sale — also known as an "initial coin offering," or ICO — a quantity of cryptocurrency is sold in the form of "tokens." See Europe's ICO dominance in the chart below:

null play

null

(Fabric Ventures)

 

Fabric Ventures, a VC fund, released a report today outlining some of the reasoning behind Europe's token cash boom.

More developers

According to Stack Overflow, Europe houses 5.5 million developers compared to 4.4 million in the US. And European universities churn out twice as many STEM PhDs as the US. The technical talent has always been there, but until the crash of 2008 it was the banking industry that syphoned off the top minds. Not anymore. "With this wave that’s democratizing access to capital, the technical talent doesn’t need to migrate to the US to raise venture capital and build global companies," the report said.

Favourable regulation

France “won’t miss out on the blockchain revolution,” according to economy minister Bruno Le Maire, and wants to become a global hub for ICOs. Switzerland has set out similar goals, while the UK has created a crypto assets task force.

The report says it has become a fierce competition to offer "the most founder-friendly & forward thinking regulatory environment for decentralized networks and their native crypto-assets."

The nature of European "city-states"

Europe has 50 countries, and some of those economies are small. And, frankly, some aren't doing so great. Any budding company in Europe knows it needs to spread internationally from Day One to avoid the traps of small domestic economies. Diverse and multinational teams have become the standard.

https://www.pulse.com.gh/bi/finance/europe-is-killing-it-in-crypto-id8983397.html

  • 0 Paxex
  • 0
  • 202
  • 0

Planning for Brexit: Crypto Exchange Giant Coinbase Opens Office in Ireland

Cryptocurrency exchange Coinbase has opened a new office in Dublin to mark its latest expansion into Ireland as a marked effort to “plan for all eventualities for Brexit,” according to a top Coinbase executive.

In an announcement on Monday, San Francisco-based cryptocurrency exchange Coinbase – the industry’s first ‘unicorn’ – said Dublin “was the clear choice” in its ongoing expansion effort. The new office in Dublin will compliment Coinbase’s existing operations in London, the base for its EU operations.

Ireland’s minister for financial services and insurance Michael D’Arcy stated:

“I am delighted that Coinbase is opening an office in Dublin. This decision highlights the completive offering and attractiveness of Ireland for financial services.”

Pointedly, Coinbase adds it ‘explored a variety of cities across the EU’ to earmark potential outposts across European nations at a time when Britain’s exit from the European bloc looms large. The contingency plan is particularly relevant as European Union users of Coinbase “grew faster than any other market in 2017,” according to the company.

Coinbase UK chief executive Zeeshan Feroz underlined the importance of Dublin as a new base in Europe, telling Reuters:

“It ticks a lot of boxes – ranging from giving us a contingency, helping us plan for all eventualities for Brexit and engaging with Europe through another base.”

Coinbase insists that its headquarters outside the U.S. will remain in London, for a company that supports cryptocurrency trading in 32 countries presently.

Coinbase app cryptocurrency exchange

As reported previously, Coinbase received an e-money license from the UK’s financial regulator in March this year, granting the exchange to provide services to customers in the United Kingdom and all 23 countries within the European Union. The Dublin office is strategically positioned to continue operations and services in EU nations after Brexit, wherein the United Kingdom is set to leave the EU by March 2019.

With a pro-Fintech agenda, Ireland is quickly becoming a destination for blockchain development. In June, Irish prime minister Leo Varadkar earmarked budgetary spending for Ireland’s state-run Industrial Development Authority (IDA), days after the latter had launched ‘Blockchain Ireland’, a research and development initiative for the sector.

Earlier in January 2017, services giant Deloitte opened its blockchain lab in Dublin with a team of 50 employees exclusively offering consultancy and services with blockchain tech for clients in Europe and the Middle East.

https://www.ccn.com/planning-for-brexit-crypto-exchange-giant-coinbase-opens-office-in-ireland/

  • 0 Paxex
  • 0
  • 176
  • 0

Crypto Market Stabilizes as Tether Recovers, Real Bitcoin Price at $6,450

The crypto market has stabilized after a wild 24-hour period triggered by the sudden increase in the price of Bitcoin.

On cryptocurrency-only and Tether-integrated exchanges like OKEx, Huobi, and Bitfinex, the price of Bitcoin exceeded $7,700, as the value of Tether (USDT), which is supposed to be pegged to that of the US dollar on a 1:1 ratio, fell substantially by more than 7 percent.

The 7 percent drop in the price of USDT from $1 to $0.93 led Bitcoin premium on cryptocurrency-only exchanges to rise by an identical margin, inflating the value of BTC. The real price of Bitcoin on fiat-to-crypto exchanges like Kraken, Coinbase, and Bitstamp peaked at $6,700.

Market Stabilizes After Wild Fluctuation

Since then, the price of Bitcoin has fallen from $6,700 to $6,450, by around 4 percent. But, considering the abrupt surge in the value of BTC from $6,150 to $6,700 within several hours, a pullback was expected.

Within a two-day period, the Bitcoin price increased from $6,150 to $6,450, supported by a spike in daily trading volume. Overall, the state of BTC remains significantly more positive than the past week.

According to Coinmarketcap, the daily trading volume of Bitcoin has increased from $3 billion to $7 billion in the past 24 hours, by more than two times. ShapeShift’s CoinCap.io also demonstrated a two-fold rise in the volume of BTC, from $2 billion to $5.6 billion.

“Closed at resistance. Might be getting a retrace today. I’m generally leaning bullish so I’m not shorting the way down, I’m waiting at support to re-long Would love to get a daily close at the top of the green box,” cryptocurrency technical analyst DonAlt stated.

To confirm a proper short-term rally, BTC will need to surpass the $6,550 mark and breakout of the $6,800 resistance level. Technical indicators of BTC are not all entirely positive at the time of reporting, but the strong volume of the dominant cryptocurrency is likely to increase the probability of a strong trend reversal.

Tether LLC, the company that oversees the development of Tether, issued a statement clarifying USDT is sufficiently backed by US dollars, reassuring the market that USDT is stable. The firm said:

“We would like to reiterate that although markets have shown temporary fluctuations in price, all USDT in circulation are sufficiently backed by U.S. dollars (USD) and that assets have always exceeded liabilities.”

However, the statement of Tether LLC will not be sufficient to alter the ongoing trend of traders switching from USDT to audited, regulated, and transparent alternatives like Gemini Dollar, PAX, and TrueUSD.

$6,450 to $6,800

As shown in the price chart of BTC on Bitstamp above, BTC is en route to testing major resistance levels in the $6,000 region. Fidelity, the world’s largest brokerage by assets under management, has announced its plans to facilitate crypto plans, which could serve as a catalyst to fuel the next rally of the crypto market by bringing in accredited investors in regulated US markets.

https://www.ccn.com/crypto-market-stabilizes-as-tether-recovers-real-bitcoin-price-at-6450/

  • 0 Paxex
  • 0
  • 149
  • 0

Binance Uganda to Begin Accepting Deposits in Ugandan Shilling, BTC & ETH

Months after announcing the launch of Uganda’s first-ever fiat-crypto exchange, Binance has made another step towards facilitating cryptocurrency trading in the East African country.

Beginning October 17, users will be able to make deposits to Binance Uganda in the leading cryptocurrencies bitcoin and ethereum as well as in Ugandan Shillings. This will allow trading in bitcoin to Ugandan shillings and vice versa as well as ethereum to Ugandan shillings and vice versa. However, trading in the BTC/UGX and ETH/UGX pairs will not commence immediately and will be announced at a later date.

“Trading on Binance Uganda will open soon with BTC/UGX and ETH/UGX trading pairs. The start time for trading will be released in a later announcement,” the cryptocurrency exchange wrote in a statement.

User Verification

Additionally, Binance has also announced that full account verification of users has now been enabled.

 

Binance’s foray in Uganda is part of the crypto exchange’s plans to expand on the African continent which possesses one of the youngest populations on the globe. As CCN reported last month, the cryptocurrency exchange which was founded in China but which is now headquartered in Malta, sees huge growth opportunities in Africa. One of the reasons for this optimism is the lowest penetration of banking and financial services on the continent.

“In Sub-Saharan Africa, only 43% of people aged 15+ own a bank account versus a global average of 69%,” wrote Binance Labs director, Benjamin Rameau, in a blog post last month. “In some areas such as South Sudan the ratio is as low as 9%.”

Additionally, with Africa being home to a relatively high number of countries which have experienced or are experiencing high inflation levels, deflationary cryptocurrencies are likely to be highly appealing thereby placing a like Binance in a strategic position to reap the benefits.

Expansion in Asia

Outside of Africa, Binance last month revealed that they had begun beta testing of a fiat-crypto exchange in Singapore. However, users would only be admitted by invitation and this started almost a month ago.

“I just slipped that we will begin #Binance Singapore fiat exchange live money closed beta testing on Sept 18th, in 3 days.  Invitation only first.  Exciting!” the founder and CEO of Binance, Changpeng Zhao, wrote on Twitter last month.

In July Binance also announced that it would be entering South Korea depending on the progress made with regards to policy. At the time there were reports coming out of the Asian country that the government had plans of regulating cryptocurrency exchanges in a similar fashion to traditional financial institutions.

https://www.ccn.com/binance-uganda-to-begin-accepting-deposits-in-ugandan-shilling-btc-eth/

  • 0 Paxex
  • 0
  • 204
  • 0

Bitcoin Payment Processor BitPay Launches Stablecoin Settlement [Tether’s Not Invited]

Bitcoin payment processor BitPay has announced that merchants may now accept settlement in USD-pegged cryptocurrency “stablecoins” Gemini Dollar (GUSD) and USD Coin (USDC), providing them with the ability to denominate their operations in cryptocurrency while remaining immune from market volatility.

The Atlanta-based BitPay made the announcement on Monday, explaining that it will allow merchants in 190 countries to accept international payments without relying on costly, time-consuming wire transfers.

“BitPay was founded to make payments faster, more secure, and less expensive using Bitcoin for organizations around the world,” said Stephen Pair, the company’s co-founder and CEO. “The introduction of the USDC and GUSD stable coin offers BitPay customers a new alternative to holding Bitcoin and Bitcoin Cash by offering a stable coin option.”

Previously, merchants could receive settlement in bitcoin, bitcoin cash, and — depending on jurisdictional restrictions — physical dollars and euros. All transactions settled in cryptocurrency will be completed the following day.

GUSD, as CCN reported, was recently launched by Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss. The token, whose balance sheet will be audited monthly, received the explicit approval of the New York Department of Financial Services (NYDFS), the architect of the stringent “BitLicense” framework.

USDC, meanwhile, is the product of a consortium initially spearheaded by Circle, the $3 billion cryptocurrency firm backed by Bitmain and Goldman Sachs.

Notably absent from the list of supported stablecoins is tether (USDT), the dominant token in this market niche and the eighth-largest cryptocurrency overall. Long a flashpoint within the crypto space, USDT lost its dollar peg leading into Monday morning, once again raising questions about whether the token is fully-backed by USD, as its eponymous issuer claims.

Also absent is Paxos Standard (PAX), another major NYDFS-regulated stablecoin launched by New York cryptocurrency firm Paxos. According to CoinMarketCap, PAX’s trading volumes have eclipsed those of GUSD and USDC during their early days on the market.

https://www.ccn.com/bitcoin-payment-processor-bitpay-launches-stablecoin-settlement-tethers-not-invited/

  • 0 Paxex
  • 0
  • 191
  • 0

Mainstream: $7.2 Trillion Asset Manager Fidelity Will Help Customers Invest in Bitcoin

One of the biggest names in financial services wants to help institutional investors add bitcoin and other cryptocurrency assets to their multi-billion dollar portfolios.

Citing proven institutional demand for cryptocurrency products, Fidelity Investments, the fifth-largest asset manager in the world with 27 million clients and $7.2 trillion in customer assets, has announced that it will launch a separate company to provide cryptocurrency custody and trade execution services for institutions.

Dubbed Fidelity Digital Asset Services, CNBC reports that the company will serve as a bridge between institutional investors and the heretofore retail-focused cryptocurrency industry, which has lately sought to roll out the red carpet for institutions.

“Our goal is to make digitally-native assets, such as bitcoin, more accessible to investors,” Fidelity Investments Chairman and CEO Abigail Johnson said in a press release. “We expect to continue investing and experimenting, over the long-term, with ways to make this emerging asset class easier for our clients to understand and use.”

The new venture will be led by Tom Jessop, who, according to his LinkedIn profile, spent 17 years at Goldman Sachs before joining blockchain startup Chain as president in 2017 and then Fidelity in 2018 as head of corporate business development.

“We saw that there were certain things institutions needed that only a firm like Fidelity could provide,” Jessop told CNBC. “We’ve got some technology that we’ve repurposed from other parts of Fidelity — we can leverage all of the resources of a big organization.”

Abigail Johnson Fidelity

Fidelity CEO Abigail Jonson | Source: Bloomberg/YouTube

CCN reported earlier this year that Fidelity appeared to be building a cryptocurrency exchange, as the firm had advertised internally for developers to help build a “Digital Asset exchange.” Departing from the public comments of many CEOs in the mainstream financial industry, Abigail Johnson not only attended a cryptocurrency conference last year but also told the audience that she was a “believer” in the technology.

That open stance has enabled Fidelity to position itself as a potential leader in the burgeoning cryptocurrency market, which has reportedly begun to attract major university endowments such as Harvard and Yale.

“You might look at the crypto world and say ‘wow is this a new thing’ but we’ve been managing key materials for a long time,” Jessop continued in the CNBC interview. “We took our learnings in how to run enterprise security, then through our exploration of bitcoin and some of the people we’ve hired, quickly developed some of the crypto native expertise and federated the two those things.”

Fidelity joins a growing list of legacy financial giants who have seen enough potential in the cryptocurrency space to justify investing in the resources to produce products tailored for this nascent marketplace. Intercontinental Exchange (ICE), Goldman Sachs, Citigroup, and Morgan Stanley are just a few of the names that plan to roll-out digital asset services within the near future.

Of course, the 2018 bear market may have dampened enthusiasm in some boardrooms. Barclays, as CCN reported this morning, is said to have quietly placed its cryptocurrency trading desk project “on ice,” while Goldman Sachs shelved its trading desk plans to prioritize a cryptoasset custody service.

Fidelity, though, has not been dissuaded by the massive drop in prices that has occurred over the past 10 months.

“No one said when some of these early stage Internet companies in 2000 were going out of business ‘gee the Internet is toast’,” Jessop concluded. “We don’t focus too much on the price. It’s a foundational technology — people are trying to get exposure to the trend, and expect volatility in the assets themselves.”

https://www.ccn.com/mainstream-7-2-trillion-asset-manager-fidelity-will-help-customers-invest-in-bitcoin/

  • 0 Paxex
  • 0
  • 161
  • 0

Op-Ed: Stablecoins and Bank Failure — The Unmitigated Risk of Fiat-Backed Tokens

About the author: Ranjeet Sodhi is the CEO and Co-Founder of Vault. He is also a fintech entrepreneur with over 19 years of experience leading and turning around key regulatory risk management initiatives for global top tier investment banks and financial services firms, including JPMorgan Chase, Citi, Deloitte, and E&Y. You can follow him on Twitter at @ranjeetsodhi.

Recently news broke that Noble Bank, one of the early banks associated with safeguarding Tether’s backing, is likely insolvent and will be available for sale for as little as $5 million dollars (any cryptowhales want a bank in Puerto Rico?).

While updated versions of the story clarify that this insolvency is the result of the loss of key clients – including Tether – from their network, it highlights a critical issue that affects nearly all fiat-backed stablecoin projects, one that very few people in the cryptocurrency community are taking note of:

Banks fail.

They fail at an alarming rate.

Small banks (i.e. the only ones willing to work with crypto projects) fail most often.

This should be of particular concern to the cryptocurrency community because of the number of emerging fiat-backed tokens that have launched, leveraging singular storage of fiat currency in these types of institutions.

Regional Bank Failures in the United States

Since 2008, there have been over 500 bank failures in the United States. Most of these of these were smaller, regional banks (the FDIC keeps a running list here), that were poorly capitalized and not subject to the same capital requirements as the tier one players, but there are some surprising names on that list as well.

These banks fail for a principal reason: Credit and Operational Risk.

Simply put, these banks had outstanding liabilities that they could not meet, were not capitalized well enough to meet their outstanding obligations, and therefore imploded when it came time to meet their obligations.

This was seen most clearly in the 2008 financial crisis, in which a number of banks took on exposure to risky assets, leveraged them to purchase liabilities, and then were forced into insolvency when the market conditions changed resulting in these purchases becoming unprofitable.

Dodd Frank is a Partial Remedy that Doesn’t Improve Small Banks

To remedy this issue, Basel III and Dodd Frank legislations were implemented to ensure stricter capital reserve requirements in the US. The idea was that banks that want to take on riskier positions must have commensurately sized capital reserves to act as a buffer in case these investments failed and to prevent the insolvency of the banks, thus avoiding the “too big to fail scenario.”

However, these stricter capital requirements that were enacted to prevent bank failure only affected banks that had assets under management above $50 Billion dollars – and virtually all of the bank failures reported by the FDIC were underneath this threshold and therefore not subject to these updated requirements.

In other words, there’s an inherent risk in cryptocurrency projects that leverage traditional banking infrastructure – the small banks that are willing to work with cryptocurrency projects are also the riskiest because they are not subject to the same capital reserve requirements.

The World is Obsessed with Fiat-Backed Tokens

Ever since the launch of Tether, the cryptocurrency world has been obsessed with the concept of fiat-backed stablecoins. While there are many decentralized projects that tout algorithmic stability, the appeal of a token with a centralized store of value is clear – if you issue a token that’s worth a dollar, and you have a dollar ‘backing’ it, conceptually the token will probably be worth a dollar.

While Tether specifically has come under criticism, numerous tokens have since emerged that leverage the same basic model with incremental improvements – improved audits, redeemability, fiduciaries, etc. But all these fiat-backed entrants into the space effectively have their own take on the same model – issue a token, put a dollar in a bank account.

And these fiat-backed projects have gone on to raise significant capital, and achieve a total market cap of over $2.9 billion claimed to be sitting in bank accounts backing tokens.

A 2.9 Billion Dollar Liability for Small Banks

bank failure stablecoin

Bank failures aren’t just a thing of the past.

Here’s where things get interesting – dust off your accounting 101 textbooks, we’re going back to the basics.

For a bank to be solvent, it must have enough assets to cover its liabilities.

To a customer, the balance of their bank account represents an asset – they have money in the account, that they assume they can withdraw whenever they want.

To a bank, the balance of a customer account is… a liability! When a customer gives the bank money, the bank then OWES the customer that amount of money.

In normal circumstances, banks will use these funds to generate revenue for the bank – usually by issuing loans and mortgages to other customers.

The problem here is – the more liquid the bank account, the greater the risk associated with loaning out the money. A responsible bank is not going to use money from a checking account to issue a 30-year mortgage because the checking account owner might come and ask for their money at any time. However, the capital reserve requirement for systemically important financial institutions (SIFI’s) in the United States is on the average less than 10%, and for small banks this ratio is much lower. This means that many of these banks have poor/almost no capital reserves to protect against defaults or bad investments, and can become insolvent with just a handful of bad investment choices – this seems to be what happened with Noble Bank.

So, here we can clearly see the fundamental issue with the established fiat-backed stablecoin model. Storing hundreds of millions of dollars in liquid bank accounts in a regional bank represents an unmitigated risk for all parties involved. (And, before we get too excited about “FDIC Insurance,” let’s note that it typically covers deposits of up to $250,000 per beneficiary).

In Summary – There’s Significant Unmitigated Risk in Fiat-Backed Tokens, and No One Seems to Care

There’s a latent risk in fiat backed stablecoin projects that extends beyond Tether to seemingly every token with this model – banks are not designed to hold hundreds of millions of dollars in liquid accounts.

Recent projects have taken meaningful steps towards regulation, but in the press release announced by the New York Department of Financial Services, regulation is not aimed at addressing the risks outlined here.

Decentralized tokens do not have these issues, but instead place the reliability of the peg on algorithms and central-bank-like structures that have yet to be proven, and without a central store of collateral, token holders don’t have a claim on any underlying assets in the event of token collapse.

As the market evolves, other solutions will continue to emerge – fiat-backed tokens may find more established and credit-worthy counterparties, more sophisticated insurance options could arise to protect token holders, and alternative stores of value can be used that don’t rely on the traditional banking system – such as gold bullion backing.

Clearly, each stablecoin has its fallbacks and benefits, and it’s likely that a number of projects will find their footing to appeal to different segments of the market. But as this space evolves, one thing is becoming clear – holding enormous sums of capital as collateral for a fiat-backed stablecoin project is risky business.

Disclaimer: The views expressed in the article are solely that of the author and do not represent those of, nor should they be attributed to CCN.

https://www.ccn.com/op-ed-stablecoins-and-bank-failure-the-unmitigated-risk-of-fiat-backed-tokens/

  • 0 Paxex
  • 0
  • 214
  • 0

DocuSign Will Add Ethereum Blockchain Integration to Verify Signatures

San Francisco based DocuSign has announced the integration of the Ethereum blockchain into its electronic signature and transaction management service.

The company, which currently has over 400,000 paying customers, will now have an option for customers to have evidence of a DocuSigned agreement automatically recorded on the Ethereum blockchain. This option will be an alternative to the company’s native system for verifying signatures and is poised to be a natural fit for customers who want to have evidence of their agreements in a neutral environment.

Ron Hirson, chief product officer at DocuSign, stated in the release:

“For customers that opt-in, DocuSign will compute a one-way cryptographic hash fingerprint for every completed transaction, and write the value to the Ethereum blockchain — the most popular blockchain for smart contracts in our view.”

He went further to explain the hash will act as “tamper-proof evidence for the transaction” that “enables any completed document to be validated independently. And by using the Ethereum blockchain, that third party evidence for a transaction is accessible to anyone.”

 

The company has been researching on smart contract since it first collaborated with Visa, creating one of the first public prototypes. The prototype, which was developed in 2015, was a proof-of-concept that brought together secure contracts and payments made online via a connected car prototype developed by Visa for car-based commerce.

At the time, Hirson said:

“This proof-of-concept makes it easier and faster for customers to get out the door in their new car by bringing together smart contracts and payments so that customers can electronically sign all pertinent documents and seamlessly pay in one fully digital experience.”

The company has also joined the Enterprise Ethereum Alliance, as it hopes to continue innovating in the space. DocuSign recently relaunched a new developer center.

In a tweet shared on Oct. 13, the company also unveiled other new product features including Intelligent Insights and mobile document scanning into its operations. According to the report, mobile document scanning, which was released to iOS devices last year, is now compatible with Android devices.

This allows you to scan any document and then edit, crop, and resize them before importing them into DocuSign for your signature. Intelligent Insights is another feature that uses AI-based search and agreement analytics to go beyond keywords in understanding agreement clauses in the way a human would, e.g., knowing that a clause about Internet cookies is a document centered on privacy, even when the keyword “privacy” is absent.

https://www.ccn.com/docusign-will-add-ethereum-blockchain-integration-to-verify-signatures/

  • 0 Paxex
  • 0
  • 185
  • 0

Soaring Inflation Sends Bitcoin Trading Volume to [Another] New High in Venezuela

The amount of Venezuelan bolivars being spent to purchase bitcoin has risen to record levels as the South American country experiences unprecedented hyperinflation and a worsening economic crisis.

Per Coin Dance, bitcoins worth nearly 900 million bolivars have been traded so far this week in Venezuela, and this is already higher than last’s week volume of slightly over 850 million bolivars.

bitcoin trading volume venezuela

Source: Coin Dance

However, this spike in volume cannot be wholly-attributed to the rapid devaluation of the bolivar. Last week also saw the highest number of bitcoins traded in the Latin American country, with residents trading 1,089 BTC worth a present value of $7.1 million on the platform. The record could be broken again as already 955 bitcoins have been traded this week so far. The second half of September also saw bitcoin trading volumes breach a high that had only been reached for the first time last April.

bitcoin trading volume venezuela

Source: Coin Dance

Seven-Digit Inflation Figures

Venezuela’s growing bitcoin trading market comes at a time when the International Monetary Fund is projecting that the rate of inflation will reach 1,370,000 percent in the Latin American country by the close of this year.

 

Only three months ago, the international financial institution had forecast an inflation rate of 1,000,000 percent,  but in the intervening period, the government raised the minimum wage 60-fold even as the economy contracted, forcing the revision. Next year, the IMF expects the inflation rate to hit 10 million percent.

Among other reasons, the stratospheric level of inflation could be one of the factors causing an increase in bitcoin trading volumes in the South American country since the maximum supply of the flagship cryptocurrency is capped, making it deflationary.

Petro’s Public Sale

Notably, the expansion in bitcoin trading volumes is coming less than three weeks before the launch of the public sale of Venezuela’s state-backed cryptocurrency, the Petro. As previously reported by CCN, the Petro will be purchased using both the leading cryptocurrencies as well as fiat currencies when the public sale kicks off next month.

“If you have bitcoins you can buy Petros, if you have Ethereum you can buy Petros, if you have dollars or euros you can buy Petros. And from November 5, the Petro … will go on sale to the Venezuelan public in sovereign bolivars,” said Maduro during a television interview last month.

To increase the adoption rate of the Petro, the Venezuelan government earlier this month mandated that all passport fees be paid using the state-backed cryptocurrency. Skeptics also saw the move as aimed at discouraging Venezuelans from leaving the country as emigration has rapidly increased in the face of worsening economic problems in the country.

https://www.ccn.com/as-inflation-soars-bitcoin-trading-volumes-rise-to-record-highs-in-venezuela/

  • 0 Paxex
  • 0
  • 184
  • 0

COFREDCAPITAL, WorldWide Investment With Powerful Monthly Returns Rate.

Cofredcapital has been a powerful investment industry giving high returns rate for years now


CofredCapital is the most secure and reliable online investment that gives you peace of mind! A revolutionary concept that provides a web based investment platform for individuals, institutions particularly in the crypto currency market. We are dedicated to providing exceptional investment management services which has been a bespoke operation over the years, with our flexible packages and a good interest returns to our customers. 

 

Invest in CoFred Investment and/or PAXEXcoin Investment now and change your life.

COFRED INVESTMENT....Return rates: 6% monthly, 7% monthly and 8%monthly

PAXEXcoin(Cryptocurrency)...This is the projects coin. It is the coin with many projects.

...PROJECTS OF PAXEXCOIN

1. www.telbot.me (very active)

2. www.paxexlive.com (very active)

3. Paxexbet (coming soon)

4. Paxexstream (coming soon)

5. Paxexforum (coming soon)

Paxexcoin is used for ecommerce in africa( paying of bills and buying of bundles and aitime)

....Let your money work for you all time....

www.cofredcapital.com

 

  • 0 Paxex
  • 0
  • 491
  • 1
image
image
image