Blockchain: The Tech at the Heart of the Future of Finance
If you want to talk about a big trend that began taking shape in 2016, look no further than the state of cash — the pace at which currencies across the globe were challenged or devalued accelerated in the past year. The stage is now set for even greater momentum: In 2017, there’ll be a global sprint toward digital currencies. Sweden — where barely 2% of all payments are in cash — is leading the way. Government-orchestrated demonetisation efforts in India, Britain, France, Austria, Belgium and other countries are also fuelling the cashless movement. Ranging from eliminating some currencies, to negative interest rates on cash deposits, to assigning fees to […]
Barclay’s Antony Jenkins jumps aboard Blockchain bitcoin start-up
One of Europe’s top bankers is joining a bitcoin start-up. Antony Jenkins, the former chief executive of Barclays, has joined the board of Blockchain, a London-based start-up that provides services related to bitcoin and cryptocurrencies. The company, named after the basic technology that creates the shared network used to move and track bitcoin, raised $US30 million ($40m) in an initial fundraising in 2014. Blockchain software has been used by other bitcoin firms, such as Coinbase, as well as its own app and website service for consumers to buy and sell digital currency. It is also developing tools for using bitcoin’s underlying technology for things such as tracking identity information or […]
5 enterprise-related things you can do with blockchain technology today
Diamonds. Bitcoin. Pork. If you think you’ve spotted the odd one out, think again: All three are things you can track using blockchain technologies today. Blockchains are distributed, tamper-proof, public ledgers of transactions, brought to public attention by the cryptocurrency bitcoin, which is based on what is still the most widespread blockchain. But blockchains are being used for a whole lot more than making pseudonymous payments outside the traditional banking system. Because blockchains are distributed, an industry or a marketplace can use them without the risk of a single point of failure. And because they can’t be modified, there is no question of whether the record keeper can be trusted. […]
Privacy fix for blockchain from Blythe Masters
Blockchain could finally drag Wall Street recordkeeping into the 21st century, but before they’ll use it financial firms want to know their data will be kept secret. The startup run by former JPMorgan Chase & Co banker Blythe Masters says it’s found a solution. The version of blockchain that powers the bitcoin currency is wildly transparent, recording each transfer of bitcoin from one person to another in a public database anyone can tap into. But such openness is anathema in finance, posing a conundrum for Wall Street firms otherwise drawn to digital ledgers because they could simplify and speed up recordkeeping. Digital Asset Holdings, where Masters is chief executive officer, […]
IBM is continuing its blockchain push
Tech giant IBM has been working on making itself a global leader in developing blockchain use cases for financial services, and on Wednesday, it announced yet another project. IBM will develop a blockchain-based supply chain finance solution with Mahindra Group, one of India’s largest conglomerates, according to Bezinga. The new platform will use a permissioned blockchain and be designed to optimize processes involved in supply chain finance, with particular emphasis on invoice discounting. Supply chain financing is typically laborious. Many transactions between suppliers, buyers, and any financing parties involve paper invoices that have to be mailed and require the manual inputting of documents into each participant’s respective system. This greatly […]
Coinbase fights IRS efforts to obtain customer records
The largest Bitcoin exchange in the US is resisting the Internal Revenue Service’s efforts to obtain records on customers who traded in the virtual currency over a three-year period. The IRS on Friday filed a request in San Francisco federal court for a so-called “John Doe” summons to compel Bitcoin exchange Coinbase to identify all users in the US who conducted transactions between 2012 and 2015. The “John Doe” summons allows the IRS to obtain information about a group of taxpayers, even when the agency doesn’t know their identities. Bitcoin, which made a name for itself by allowing for anonymous transactions, has gone through its fair share of ups and […]
Singapore tests blockchain digital currency system for banks
Singapore will launch a new electronic payment system using blockchain, the technology behind the cryptocurrency Bitcoin, the city-state’s central bank chief said Wednesday. The Singapore stock exchange and eight banks will take part in the pilot project, which includes payment between banks, said Monetary Authority of Singapore (MAS) chief executive Ravi Menon at the Singapore Fintech Festival. Blockchain technology debuted in 2009 as a public ledger for the digital currency bitcoin, but its potential for securely tracking transactions has meant it is being eyed for other uses. The pilot project aims to integrate the service into the mainstream as the Southeast Asian country seeks to become a regional hub for […]
Here’s why Trump’s win boosted Bitcoin
As Trump’s electoral victory became clear, global markets plunged into volatility. Dow Jones stock futures dropped by 3.8% in premarket trading, S&P futures by 3% overnight, and Nasdaq futures by almost 5%. All major European indices dropped by 2%, on average. The price of bitcoin, however, surged around 4% to reach highs of $738.33 overnight. The cryptocurrency saw similar gains in June after the Brexit vote, suggesting that investors are increasingly turning to bitcoin in times of political and economic uncertainty. There are a number of reasons why bitcoin proves attractive in these circumstances: It’s an alternative asset. Alternative assets are non-traditional assets — other examples include precious metals and […]
