Will 2018 be the year of national cryptocurrencies?
The concept of central bank issued cryptocurrencies is not new and we have never been closer to witnessing the actual creation of government-issued cryptocurrencies than in 2018. But while it may be easy enough for governments to create cryptocurrencies, how likely is it that they will succeed?
How cryptocurrencies can reduce global poverty
Cryptocurrency is all the rage among savvy investors. But the technology has the potential for social change far beyond this. Cryptocurrencies can open access to financial services for underserved populations in developing countries, and they even have the potential to reduce global poverty by facilitating better access to capital and financial resources, and by enabling small business transactions.
An oil-backed cryptocurrency? Introducing Venezuela’s ‘Petro’
On December 3, 2017, Venezuelan president Nicolas Maduro announced plans to create a national cryptocurrency called the ‘Petro’ that will be backed by the country's natural resources, most notably its substantial oil reserves. Currently, Venezuela is facing US government led sanctions that make moving money through international banks difficult — and Maduro believes a government-backed cryptocurrency will allow the Venezuelan government to regain control over its finances.
Cryptocurrencies and market abuse risks: It’s time for self-regulation
With quite a bit of emphasis put on the value of the crypto-currencies, or some would say the lack thereof, and the regulatory oversight on the offering of such crypto-currencies to the public, namely the process called Initial Coin Offering (ICO), the risks of market abuse have been far less discussed.
The Tokenization of Research: Innovation & Compliance
There is an opportunity to leverage innovative technology and new payment and consumption methods to satisfy the requirements and enable the desirable benefits of both MiFID II research unbundling and Section 28(e) of the US Securities Act of 1934. UAT’s Joel Steinmetz and Allan Chiulli examine the structure and operations of a token, smart contract and blockchain-based platform for U.S. equity research that incorporates Section 28(e) practices in a post-MiFID II environment.
Blockchain technology continues to evolve and adapt to industries across the globe
2017 has been a great year of progress for the space, we saw bitcoin rise to over $20,000 USD, while simultaneously attracting international coverage that captured people’s attention and curiosity. Meanwhile ICOs have raised billions of dollars, helping further promote innovation and growth in the sector. Many industry leaders believe 2018 will see the blockchain industry become increasingly mainstream, and looking at the year ahead, I believe there are eleven technologies in particular to look out for:
The Tokenization of Research
MiFID II requirements do not align with U.S. practices governing the exchange of commissions for execution and research, as permitted by Section 28(e) of the Securities Act of 1934. But there is an opportunity to optimize operations and the benefits from both MiFID II and Section 28(e) using a token, smart contract and blockchain-based research platform that, in turn, satisfies the requirements and enables the desirable benefits of both regulatory regimes.
The next wave of ICOs
About half a year ago, SEC released an investigative report concluding that DAO Tokens were securities. Since then there have been a number of high profile cases reinforcing this classification world-wide - UIP, LLToken, CCC, and HMS had to issue refunds to the ICO purchasers in China, Protostarr closed up shop, REcoin and DRC World were charged with fraud and so on.
Inheritance Planning for Cryptocurrencies: 3 Steps in 3 Minutes
I’ll be expanding these ideas in a forthcoming article and book but with prices skyrocketing, and so many new people owning tokens for the first time, I want to provide a quick reference guide that you can complete in less than 10 minutes to help protect your new assets.
In like a Lion… CAT claws its way to compliance
Late on Tuesday, November 14th, Wall Street history was made when the SEC declined requests from exchanges to delay the implementation of Rule 613 — or the CAT (Consolidated Audit Trail). Originally, the 20 Self-Regulatory Organizations (or SROs) were supposed to go live on November 15, 2017. These would then be followed by large Broker-Dealers in 2018, and smaller B/Ds the next year. Exchanges were required to begin feeding trading data into CAT by November 15th, but many are not completely ready to comply. Word on the Street is that many players are waiting and watching to see if the SEC will come through with a compromise to push back the date for compliance.
Crypto continent — an African snapshot
When the bitcoin ecosystem began to take shape, one of its first “killer apps” was supposed to be its ability to provide banking services and low-cost remittances to regions of Africa poorly served by the traditional banking sector. Due to bitcoin’s relatively high transaction fees, however, and the lack of exchange liquidity to convert bitcoin into local fiat currency, personal remittances using bitcoin have proven to be more expensive than existing services like WorldRemit — and using bitcoin for personal payments makes little sense for most Africans.
Will Sweden be the first cashless country?
As Sweden was the first European country to use cash for payments back in 1661 it’s unsurprising that it’s the first European country that wants to be cashless. This is why, for several years, I’ve been watching the regular speeches by Lars Nyberg, Deputy Governor of the Sweden’s central bank, the Riksbank, talking about eradicating the use of cash in Sweden. **February 2003** Cash is still the king. Given the rapid increase in the use of cards in Sweden, particularly in the late 1990’s, cash should have been expected to fall in importance. This, however, does not seem to have happened. The use of cash, measured as the ratio of the value of currency in circulation (M0) and GDP, fell during the first half of the decade, but have been fairly constant since then, lately even increasing somewhat.
Survival of the most adaptable
Wrapping up thoughts on #Money2020, the Vegas show is by far the biggest of this monster event organising company. I’m guessing there were around 15,000 folks there this year, and everything but everything was being covered: AI, machine learning, mobile wallets, core banking, distributed ledger, blockchain, cryptocurrencies and just about every other aspect of making and taking payments. Usually the keynotes on the plenary stage don’t impress me much, as they’re just product pitches, but a few did stand out this year. I was particularly impressed by the content of Oliver Jenkyn’s presentation. Oliver is EVP & Group Executive, North America for Visa and I usually hate Visa’s content. But Oliver began by talking about a messaging conversation he had with his ten-year-old daughter that finished with her asking:
The ICO Rollercoaster – The securities question as seen from Europe
It is difficult to know for sure where the ICO ride will stop, but Initial Coin Offerings are an important development on the global start-up and fundraising landscape. Ignore the ICO trend at your peril. But participate with caution. Not all of these rollercoasters have been built with the same standards or safety checks, or within the bounds of relevant regulations. But amid the wild ride, regulators have shown tolerance and an interest in encouraging innovation.
Coin Wars – The revolution of decentralization
While fierce debates rage over cryptocurrencies and ICOs, many within capital markets may be missing the ultimate point: The fabric of commerce is about to be fundamentally transformed. The revolution of decentralization is upon us. Cryptocurrencies and coin offerings, along with blockchain, are the enabling means for a new economy. Will the capital markets be involved?
Sun Exchange allows long-term direct investment in Solar Energy using Bitcoin
South African blockchain startup Sun Exchange has successfully raised US$1.6 million in seed capital for their new investment platform, which aims to provide solar power for the developing world by enabling global investments through bitcoin. Initially launched in 2015 through crowdfunding, Sun Exchange is using blockchain technology to circumvent the chief barrier to affordable solar power, which is the initial financial cost. The company is enabling investors to purchase solar panels using bitcoin, among other currencies, which can then be rented to projects. The investors earn income as the solar panels they purchase produce power, and the company pays investors using bitcoin. Sun Exchange markets the solar panels for as little as $8 per unit, making the purchase extremely affordable.
