Technological Company Proposes to Give Tokens to People Who Report Damages to Physical Structures

Maria Rodríguez
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Technological Company Proposes to Give Tokens to People Who Report Damages to Physical Structures

The proposal indicates the use of a mobile application that would help the user to report the damage to public infrastructure.

The startup company, IECISA proposes a reward structure with tokens for citizens that help prepare reports of damage to physical structures such as buildings, bridges, roads, among others. This was announced during the Global Blockchain Challenge event held in Spain.

The general objective is to motivate the general public to collaborate with the authorities for the maintenance of infrastructure in cities. It is known that the system proposed by the company is to obtain tokens as rewards created through a blockchain platform.

To give more details about the proposal, IECISA presented the project during the main framework of the World Convergence Blockchain Congress to disseminate the initiative globally. This is about the use of an application for smartphones which seeks to classify the structures and indicate the damages that a building has, this in order to report the cracks and the serious problems that the goods of public use present.

In addition to this, in a press report published on November 13th, IECISA explained the possible creation of a web page where this information provided by users could be used. So that in this way the owners of the structures can verify which damages represent a danger and which do not, as well as to archive relevant data to be able to plan a repair and reconditioning project of the infrastructure.

For this project, the Alastria blockchain platform would be used, which is a network created on Quorum, based on the Ethereum protocol. All movements and interactions carried out in the application and on the website would be stored in a blockchain registry that would also help to issue the reward tokens and facilitate the exchange for the user.

One of the IECISA representatives, María Salgado, commented that the proposal seeks to increase people’s commitment to structures and reduce significant costs. “It solves the challenge of improving infrastructure, promoting citizen engagement, saving infrastructure providers costs, and reducing risks”.

The Citizen Reward for the Future

This is not the only project which seeks to reward citizens with tokens for actions that seek to improve the environment or public structures. An example of this is seen in Latin America, specifically in Argentina, wherein a municipality a reward system was designed for users who do recycling work among other actions beneficial to the community.

To achieve this goal, government authorities partnered with a startup company called Koibanx, which was responsible for developing the asset that would serve as a prize. The active token Marcos Paz (MMP) is a cryptocurrency that bears the name of the municipality of Argentina where the tool is enabled. It is based on an RSK blockchain, an alternate structure of Bitcoin.

Citizens will help take care of important buildings and will receive cryptocurrencies as a reward. This is another example of the alternatives that some governments are taking to boost the adoption of digital assets, which are a current form of payment.

By María Rodríguez

Blockchain Included in Digital Transformation Process of Colombian Oil Company

Willmen Blanco
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Blockchain Included in Digital Transformation Process of Colombian Oil Company

Ecopetrol uses blockchain technology to improve processes within the oil supply chain. The company’s technological development plan will require an investment of USD 120 million.

Colombian state-owned oil company Ecopetrol has a digital transformation plan underway, which contemplates the use of blockchain technology to improve processes in the oil and gas supply chain. It also aims to use this technology in the near future to provide communities and stakeholders with information about the development of unconventional pilot projects, such as fracking (a technique that allows increasing the levels of extraction of gas and oil from the subsoil).

The information was released by the president of Ecopetrol, Felipe Bayón, who had disclosed some information about the project during his presentation at the II Oil and Gas Summit that took place from November 13th to 15th in the city of Bogotá, Colombia.

Ecopetrol’s digital transformation plan is aligned with an efficiency program and a strategy that the company has been developing since 2018. Bayón explained that the project requires an initial investment of USD 120 million in 10 projects in strategic areas that rely on the technologies that integrate the Fourth Industrial Revolution, which includes blockchain-based platforms, artificial intelligence, the Internet of Things (IoT) and Big Data, among others.

Ecopetrol’s Digital Vice-President, Ernesto Gutiérrez de Piñeres, previously stated that the company is already using these technologies to improve many processes. He said that blockchain technology has been incorporated to optimize different stages in the oil and gas supply chain.

Therefore, the use of blockchain facilitates the task of identifying in which position within the logistics chain the products transported from the oil wells move until reaching the final customers.

Even though no further details were provided about this process, the Colombian oil company will possibly follow the same line of action as other large oil companies, such as BP, Shell, Statoil, among others, that use blockchains to make transactions in the industry. This allows them to reduce costs, save time and keep a more transparent record of the movements made in the supply chain, thus avoiding the risk of making mistakes.

Gutiérrez also explained that they have 40 robots or virtual assistants that allow better management of key processes and are working on 18 additional solutions of this type, so they expect to close the year with about 100 workings.

The digital transformation project also includes the development of more than 40 initiatives for robotizing processes and technological productivity solutions for daily work. The oil company estimates that these investments will allow savings between USD 240 million and USD 360 million by 2023.

Fourth Industrial Revolution in Colombia

The incorporation of blockchain into the Colombian oil industry can be related to a strategy that that country’s government has been developing to position itself as a leader in the management of new technologies in the region.

Colombian President Iván Duque said that artificial intelligence, the Internet of things and blockchain are three new technologies that are changing the world. He highlighted their advantages by noting that Artificial Intelligence will help to understand global phenomena and apply them in the country and the region, the IoT will be decisive to bet on connectivity, and Blockchain can lead Colombia to become a leader in Latin America.

By Willmen Blanco

Stablecoins Considered a Risk to Financial Stability by BCRA

Willmen Blanco
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Stablecoins Considered a Risk to Financial Stability by BCRA

According to the Argentine entity, anchored currencies might open a new channel for capital outflow. The institution sees emerging economies at greater risk in the face of stablecoins.

The Central Bank of Argentina (BCRA) considers that it might be risky to use stablecoins for the national economy. It reluctantly sees the possible impact of these assets on capital outflow and the potential increase in vulnerabilities for the local currency.

This evaluation emerges from the Financial Stability Report issued by the Argentine organization, corresponding to the second half of the year 2019. In the document, the BCRA devotes an entire section to the analysis of stablecoins, especially focusing on their possible implications for financial stability.

The BCRA places special emphasis on the ability of anchored currencies to scale to cross-border operations, going beyond being a means of payment for local transactions. For that reason, the institution considers a capital flight to be a potential risk of using anchored currencies, the same as might occur with fiat currencies or non-anchored cryptocurrencies.

Although the report states that stablecoins may especially pose risks to emerging economies, it makes it clear that developed economies might also be affected.

The Argentine Central Bank concludes that it is necessary to further in the analysis of appropriate designs, as well as in the examination and eventual implementation of a clear regulation that is proportional to the said risks.

Stablecoins in Global Discussion

The analysis of stablecoins by the BCRA is based on a discussion that has recently been gaining ground, particularly among governmental financial institutions worldwide.

Argentina’s position is consistent with those of multilateral instances such as the G7, which brings together Germany, Canada, the United States, France, Italy, Japan, and the United Kingdom. In a report submitted last October, the G7 and the Bank for International Settlements (BIS) considered stablecoins (particularly Facebook’s Libra) to be a growing threat to monetary policies and financial stability.

For its part, the Financial Stability Board (FSB) of the G20 has also begun to pay attention to the matter. The chairman of the council, Randal K. Quarles, urges the finance ministers and central bank officials that comprise the working group to pay special attention to possible financial stability problems due to global anchored cryptocurrencies. Argentina is particularly one of the three Latin American countries that comprise the G20, a group of developed and emerging countries.

Perhaps the most surprising position until now was released in the middle of the month of November. The United States Federal Reserve (Fed), through its Financial Stability Report, took a positive stance on the possible impact of the global use of anchored currencies.

The document presented by the Fed considers that stablecoins could complement currently used payment systems and lead to a new type of exchange. Besides, they could resolve one of the main concerns about the use of cryptocurrencies, namely volatility.

Despite its positive position, the report also considers possible unplanned risks of the implementation of stablecoins globally. These aspects coincide with the considerations presented by the Central Bank of the Argentine Republic.

By Willmen Blanco

Alibaba Ensures that it Does Not Accept Cryptocurrencies in its Payment Platform

Maria Rodríguez
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Alibaba Ensures that it Does Not Accept Cryptocurrencies in its Payment Platform

Alibaba, the online shopping platform, released a statement expressing the refusal in the alliance with Lolli to introduce the payment option with cryptocurrencies.

At present, digital assets are having an important space in the financial and commercial sphere of nations, even with the introduction of blockchain technology in the economic processes of countries; it has opened important advances that drive the development of society.

Despite this, short-term objectives are not always achieved, which indicates that confidence in the crypto industry must still be growing. This could be the reason why an alliance between Alibaba and Lolli could not yet exist.

The use of cryptocurrencies should not be confused with the use of blockchain technology since cryptocurrencies still have a group of sectors that are against these assets. Even entire nations prohibit the use of digital currencies but think differently from the use of blockchain technology.

The conflict or inconvenience between the shopping giant Alibaba and Lolli is due to the unauthorized use of brands or, in another sense, to the incorrect use of promotions without the express knowledge of the other company.

To give more details, Lolli offered on the “Singles Day” a BTC rewards promotion for all those users and customers who buy items on the Alibaba platform. Alibaba responded to this by commenting that Lolli did not have the right to use his name for that promotion so the conflict arose only from misuse of trademarks. This led some customers to consider that the purchasing platform was gradually opening up to the introduction of these assets.

In a recent interview with local media, a spokesperson for the Alibaba Company commented that everything was due to ties between contractors of both companies, which although they did not consider the impact that it could have between the industry, they conducted negotiations without Alibaba’s consent.

“One of the Alibaba.com contractors hired a subcontractor who brokered an affiliate marketing program with Lolli. This was done without Alibaba.com’s knowledge. The Alibaba.com contractor is ending the relationship with the subcontractor who was working with Lolli. As a result, Lolli should no longer promote or bring traffic to Alibaba.com”, he concluded.

Thanks to this error, many news portals reviewed Lolli’s activity as an unofficial opening by Alibaba to cryptocurrencies; even stating that the company would be accepting cryptocurrencies on its online shopping platform.

This bad information went viral for some time. Since many portals published the data without confirmation of the official source, or an informative note published by both parties.

Although Alibaba is not accepting cryptocurrencies on its platform, there are other alliances that seek the integration of digital currencies into the commercial or financial market in private companies. An example of this is the alliance between Ripple and the renowned Santander financial group to integrate projects that involve Ripple’s digital currency, the XRP.

Sometimes companies prefer to take advantage of blockchain technology to store information but it does not mean that the company has to use cryptocurrencies. A company can use blockchain and cryptocurrencies or only the benefits that blockchain offers.

By María Rodríguez

The Chinese President Maintains his “Blockchain, Not Crypto” Position

Willmen Blanco
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The Chinese President Maintains his “Blockchain, Not Crypto” Position

In a television speech, the president of China made good comments about Blockchain, but his comments about Bitcoin were not good.

Various Chinese authority figures recently stated that they still maintain their position on “Blockchain, not crypto.” Those affirmations may have a chaotic impact on the crypto community.

It should be noted that this statement was made on CCTV1, which is broadcast on cable or satellite television or without any of these services. The speech lasted about 60 minutes and there was a discussion on the subject of cryptocurrencies and Blockchain technology.

Program Shown on CCTV

During his 60-minute speech, Chinese President Xi Jingping talked negatively about cryptocurrencies and BTC. However, he highly praised Blockchain technology, in addition to mentioning its positive aspects and the great potential that it offers in the industries and the economy of the country.

In the program shown by the television channel CCTV1, cryptocurrencies were described as being illegal fraud and market manipulation. Undoubtedly, this comment may have a strong impact on the cryptocurrency trade in China.

Even though BTC was described as a fraud and an illegal trading method during the speech, the Chinese news agency Xinhua spoke neutrally about the cryptocurrency. It was mentioned that the cryptocurrency is one of the greatest successes of Blockchain technology and clarified President Xi Jingping’s ideas about the subject.

On the other hand, President Xi Jinping mentioned that mining and everything related to crypto projects might be considered illegal in the future. However, these activities are excluded from the list of illegal activities for the moment.

Impact of Chinese authorities’ comments on BTC

The comments and opinions of the Chinese government and authority figures about the Blockchain network and Bitcoin are of great value. This is because they can regulate as far as possible the negotiations and trade in the crypto market. This would be negative since China is one of the countries with the most members in the crypto community.

It is worth mentioning that Dovey Wan, the co-founder of Primitive Crypto, was monitoring the speech made on television. He mentions through his Twitter account that there is a great possibility that some CEOs or leading figures in the crypto community will be affected by the negative comments of the speech.

In one of his tweets, he says that he cares about the image of leading market figures since a friend of his is running a project related to DAI, which seems to be contrary to what the government is promoting.

Effect of China’s Statements on Cryptocurrencies

As mentioned above, the Chinese government has a fairly big impact on the Blockchain network and the crypto community. It should be noted that many miners, as well as people of great influence on the market, are there.

The criticism made may lead to stagnation in the price of the main cryptocurrency, since the Bitcoin network depends mostly on the crypto community in China.

It has been observed in recent days that the price of Bitcoin has not varied much since it is between 8,000 and 8,500 USD. This may be due to the reaffirmation of the Chinese government’s position.

By Willmen Blanco

Finland Financial Services Authority Approves License for Localbitcoins

Maria Rodríguez
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Finland Financial Services Authority Approves License for Localbitcoins

Since November, LocalBitcoins can now operate in Finland.

In a recent press report, it was informed that the Finnish Financial Services Authority (FIN-FSA) approved the necessary license for LocalBitcoins to operate in this territory. As it is known, in the country only financial companies are allowed to operate until they get a license issued by the regulatory entity.

Since the current month of November, LocalBitcoins can expand its business and operate freely in Finland, this after complying with all the requirements of the law that FIN-FSA asks national and international financial companies.

With the aim of LocalBitcoins to obtain the license, it had to adjust its processes to the laws of the country, as well as comply with certain mandatory parameters.

Among them, the adequacy of updated procedures that fight against money laundering and other crimes stands out, in addition to incorporating the “Know Your Client” (NYC) system, this should also include an option which allows the protection of the assets and services of its users, in order to improve the safety of their personal information.

One of the requirements that LocalBitcoins has to adapt to operate in Finland is the change in financial procedures, as well as adapting their key personnel and management to the financial criteria suggested by the authorities. These are the aspects that stand out. They must be fully complied to keep your license in order and avoid penalties.

It is well known that Finland maintains strong parameters for financial operability among other countries in the world. For this reason, it is considered a great advance for the crypto community that Finland approves an operating license for a cryptocurrency provider such as LocalBitcoins.

In this sense, the CEO of the company, Sebastian Sonntag, expressed feeling satisfied and explained his opinion on the controls that had to be overcome to obtain the license.

“Finland is a society that works well, that has confidence and security at high levels. At the same time, the controls in the financial sector are of particularly high quality and the position of the clients is well protected”, concluded Sonntag.

The company’s registration with FIN-FSA has been the last step that it had to complete in order to obtain the operating permits so at the moment its systems are in development for activation for customers in the country.

LocalBitcoins is a company that is considered an asset safeguard for people who do not have the necessary income. It is for this reason that the company usually seeks to operate in countries that experience strong economic repressions or political crises such as Venezuela.

Looking for their adaptation to these countries, and building trust among their customers, even with few controls. However, in making these important regulatory efforts before the Finnish economic authorities, it seems to have changed its position on the lack of controls and seeks to expand its business despite strong requirements.

A sample of this can be seen changing the provider of some users looking for less regulated platforms.

By María Rodríguez

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