Blockchain Associations and Facebook’s Flirting with Washington

Willmen Blanco
-
0
Blockchain Associations and Facebook’s Flirting with Washington

Numerous associations have opened offices in the center of political power in the United States. The lobbying that they do seeks to protect the interests of the companies, rather than that of the users.

Lobbying is a set actions conducted to try to persuade someone in a collegiate body or corporation so that a situation is changed. It is commonly done in politics and finance, where participants seek to influence the hierarchy of public powers to achieve favorable decisions.

In recent years, lobbying has also scaled in the cryptocurrency ecosystem. For example, Ripple recently announced the operation of an office in Washington, which would accentuate its regulatory lobbying in the center of US political power.

Although Ripple is only one company, there are numerous blockchain-related associations or conglomerates that have settled in Washington, in an effort to ensure the interests of those that they represent, rather than that of the users or communities that support cryptocurrency projects.

The offices of Coin Center, the Blockchain Association, the DC Blockchain Center and the American Blockchain and Cryptocurrency Association operate in Washington. Additionally, in Virginia, next to Washington, there is also the Government Blockchain Association. All of them promote solutions using blockchains, encourage a better understanding of technology and encourage a regulatory climate while preserving freedom and innovation.

Many of these organizations use a terminology that “entitles” them to own the industry or places them on the front lines of development and innovation. Actually, the users, communities or startups that conduct collaborative work are the ones taking the reins of everything, rather than a handful of leaders that were already out when Bitcoin emerged.

False Postulate

The postulate of the associations also mistakenly includes that they are the ones detecting problems, reducing obstacles to technology advancement, and that blockchains will be the ones playing a fundamental role in the future, instead of Bitcoin.

These partnerships’ flirtation with Washington is on a course different from that of technological development. The first element focuses on the political-legislative aspect of public relations, while the second focuses on improving the Lightning Network through proposals such as Taproot or Schnorr signatures.

Conglomerates seek that the companies that they represent are not left out or are restricted regarding operations with legislative decision making, which would affect their finances.

They are so interested in this not happening that many associations or the companies themselves have decided to open offices in Washington or join any of these organizations so that their position is heard among legislators.

Zuckerberg in Washington

Facebook CEO Mark Zuckerberg has visited the US Capitol several times to talk about the subject. For instance, the executive visited the Congress on Wednesday to defend his Libra cryptocurrency project. The public appearance sparked a media interest as it is all about Facebook, the largest social network worldwide.

It should be noted that the hearings to talk about cryptocurrencies have increased in Washington over the years, but without much presence of the media.

Since Facebook is a world-known company dedicated to social networks, the legislators sought to clarify why it wants to get involved in finances. In other words, before flirting, Zuckerberg went to Washington to show his arguments and try to minimize the concerns of the representatives.

By Willmen Blanco

New terms to launch Gram tokens accepted by Telegram investors

Willmen Blanco
-
0
New terms to launch Gram tokens accepted by Telegram investors

The SEC has delayed Telegram’s hearing for February next year. Investors preferred to accept the new issuance date of Gram tokens.

Telegram blockchain investors have chosen to remain in the project despite the recent requirement presented by the United States Securities and Exchange Commission (SEC) against the offer of Gram tokens by the messaging platform.

Both groups of investors, who provided USD 1.7 billion in two funding rounds, agreed to accept delays to the launch of Telegram Open Network (TON), after the October 23rd deadline, according to a Russian news medium.

Through an e-mail message, Telegram told the investors that they were pleased to share with them the consent of a significant majority of investors, both at the pre-sale viewing and at the stage to delay launching the network on April 30th, 2020. They said that the extension would allow them to proceed with the necessary regulatory work.

Telegram’s offer to accept the delay was initially suggested to TON investors a week after the issuance of the SEC’s order on October 11th, where it was established that the Gram token is a security.

Under the terms of the agreement, most ICO investors would agree on the need to delay the token issuance date, or receive 77% of their investment back. Each cohort of investors would have to accept these terms, which means that one of the groups could get a refund while the other would keep the investment under the promise of receiving Gram tokens. The token issuance has now been scheduled for April 30th, 2020.

One of TON’s investors told the media, under terms of anonymity, that they had voted to wait, although they were sure that Telegram would not be able to resolve things with the SEC.

He predicted that TON will be launched, but that it will lose the fight against regulators and, as a result, it will lose large markets such as the United States, Russia, China, and possibly some European countries. However, being an investor who bought Gram tokens at a price of 37 cents per token, he still hopes to generate money from this investment.

He also said that there is a possibility that they will get more than they would receive if Telegram had returned the investments. He noted that they had not really invested too much money, after all.

The terms of the agreement also include that Telegram may spend another USD 80 million of the ICO funds. According to the company, the seventh monthly period will be used to further develop the TON ecosystem.

The Court hearing of October 24th to address the issue of whether or not the Telegram Gram token is a security was also delayed until February 18th or 19th 2020. In a letter sent to the investors, dated October 21st, Telegram described the hearing delay as a positive development that would give it time to prepare its case.

They explained that February hearings are different from those hearings initially scheduled for October 24th, since these should only consider the possible delay to the launch of the platform. Both the company and its advisors will use the time to ensure that, in the hearing of February, Telegram’s position is presented and supported as well as possible.

By Willmen Blanco

Blockchain Will Be Used by a Japanese Bank to Perform Financing Services

Willmen Blanco
-
0
Blockchain Will Be Used by a Japanese Bank to Perform Financing Services

One of Japan’s leading banks uses blockchain technology to improve the quality of commercial financing services. The best thing is that its project is in its final stages, so it is possible that it will be launched within a few months.

Sumitomo Mitsui Banking Corporation (SMBC) is the second largest bank in Japan in terms of assets. Therefore, its most recent statement in which it was reported that the representatives of the institution were concluding a testing process with blockchain technology is extremely relevant.

This process would positively benefit its proposal to create a system focused on commercial financing, which would be built on a blockchain.

Commercial Financing

Commercial financing is an activity that focuses on leveraging resources to perform active credit operations, which allow the commercialization of goods and services, both at a large and at a medium scale.

Without a doubt, the administration of this type of activity is complex, which is why the SMBC has considered that the blockchain could be a productive and useful system. This is all because it is effective, safe and transparent, qualities really necessary to manage and administer.

Tests with Blockchain in the SMBC

Many projects have already experimented with the use of blockchain technology, achieving good results. For that reason, the SMBC joined the pioneers who experiment with blockchain. Best of all, they are already in the final stage of their tests.

In fact, when conducting their experiments, they realized that the blockchain can provide: a solution to the complexity of these processes, the storage of digital data in a secure space, free access to the network, and simpler real-time connectivity.

It is important to note that there is still no exact date for the launch of the Marco Polo project. However, during the previous tests occurred during the month of February 2019, the institution said that Marco Polo was expected to be launched during this year.

Results Obtained during the PoC

The Marco Polo project is backed by TradeIX, an open platform for global trade finance powered by distributed ledger technology that has a headquarters in New York. In addition, it has the support of some other financial institutions of great global importance.

Regarding the results obtained during the Proof of Concept (PoC), it was determined that this project will not only offer various benefits to the participants, but will also manage the following activities: giving purchase orders, generating invoices, offering relevant information and allowing the user or the various participants to see the delivery time, among others.

Regarding Blockchain Technology

The SMBC is not the only financial institution that is now working on its own blockchain projects. In fact, it has already become a trend, since more than one banking institution is developing its own systems in many countries that include China and Canada, among many others.

For that reason, it is much more than likely that other institutions of this type, as well as institutions from other sectors, will soon start experimenting with their own projects.

By Willmen Blanco

Alipay Fights Against Transactions with Cryptocurrencies in Its Platform

Maria Rodríguez
-
0
Alipay Fights Against Transactions with Cryptocurrencies in Its Platform

Their fight is mainly due to avoiding legal sanctions imposed by the Chinese government.

Alipay, one of the most used payment platforms in China, has declared itself against free sale transactions, specifying the cases of the transactions that have free-trade like digital currencies such as BTC and others.

As an effective method to be “correctly aligned” with the Chinese government regulations, Alipay explained why it decided to prohibit crypto-transactions in its platform. The company concluded that they declare against the OTC (Over – The – Counter or better known as free sale transactions).

OTCs are transactions which are made with securities that are not listed on the stock exchange. For this reason, Alipay considers them as few safe operations. Similarly, the statements of the company were also accompanied by legal arguments that justify the position against these assets.

In the public statement disclosed by the company, it is explained how the payment platform closely monitors these transactions in order to protect users and avoid legal penalties.

“Alipay closely monitors over-the-counter (OTC) transactions to identify irregular behaviors and ensure compliance with relevant regulations. If any transactions are identified as being related to Bitcoin or other virtual currencies, we will immediately stop the relevant payment services”, the statement says.

As a general measure, companies prefer to avoid transactions of this nature on their platforms, although legally, Bitcoin OTCs are not classified as illegal in the Asian country. This shows insecurity in some of the companies that decide not to operate with these assets.

The legal status of Bitcoin in that country is not clearly defined, despite the fact that last May, the Chinese government issued a statement where it clarifies that the law which prohibits the use of ICOs and their marketing does not affect the trade with BTC. In this way, bitcoins can be traded through other channels. The law approved in mid-2017 does not ban BTC.

The measure of monitoring transactions to the point of knowing what is being done using OTC turns out to be quite strict in the case of the platform. However, in this way, the company’s position regarding cryptocurrencies is constituted.

As a reason for this position that Alipay has taken, Filipe Castro, who is Co-founder and Director of information for Utrust, an instant digital payment platform, said that the Chinese government considers cryptocurrencies as chance tokens and that they do not have the intrinsic value of a real currency. He said the main problem is perception.

“Mainland China has very strict laws banning gambling, and many still see cryptocurrencies as such. Alipay and other providers still look at other cryptocurrency providers as investment outlets and not as payment vehicles. Thus, until this perception changes, it is likely that the current measures will stay in force”, Castro concluded.

However, the main reason why the platform banned the use of cryptocurrencies is due to the legal guidelines imposed by the Chinese government. Alipay fears that if for some reason these transactions are fallowed, heavy penalties can be imposed by China.

By María Rodríguez

Putin Is the Most Influential Person in the Cryptocurrency World, according to Binance

Willmen Blanco
-
0
Putin Is the Most Influential Person in the Cryptocurrency World, according to Binance

In Russia, three draft laws on the future of cryptocurrencies are in the approval stage. Putin believes that the use of cryptocurrencies in Russia should not be banned but regulated.

The CEO of the cryptocurrency exchange Binance, Changpeng Zhao (CZ), thinks that Russian President Vladimir Putin is the most influential person in the cryptocurrency and blockchain industry. This was stated before more than 500 people participating in a meetup held by the company, which focused on the opening to innovation, on October 21st, in Moscow.

Zhao believes that the draft law on the regulation of digital money, which is in the approval stage, can be adopted by the government of Russia in the near future.

The Binance CEO also noted that, in about fifteen days, the exchange would have support for Russian rubles. Zhao’s claim came a week after the euro-pound sterling pair was silently added to the Binance API.

All this has occurred without any progress on the official regulation in Russia, since the government seems to have delayed again the adoption of the country’s cryptocurrency law, as reported by local media.

However, it is not clear why Changpeng Zhao believes that Putin is the most influential character in the world of cryptocurrency and blockchains. What is true is that the Binance CEO did not delve into the details that would give an explanation to his reasoning. In order to clarify Zhao’s remark, it is a good idea to review some data on the plans that the Russian government has in regard to cryptocurrencies.

Russia in the Blockchains Ecosystem

Moscow has recently taken important steps toward the regulation of cryptocurrency space. The country, which is very dependent on energy exports and is affected by US sanctions, needs alternative sources of income. Therefore, it can afford to turn a blind eye to Bitcoin or other cryptocurrencies for too long.

In that context, draft laws have emerged in Russia on the future of cryptocurrencies and the regulation of related activities, which are currently in different stages of approval. On October 1st, the Law on Digital Rights, a new legal term whose scope can be interpreted to include cryptocurrencies, came into force.

Other norms of law could regulate the use of smart contracts, incorporating conditions for the automated execution of certain agreements. The Law on Digital Rights modifies the Civil Code of Russia to allow an information system to now execute contracts on its own, according to Russian media.

Another draft law that is related to cryptocurrencies has already passed the long legal process to become part of Russia’s current legislation. This is the Law on the attraction of investments through investment platforms, commonly known as the “Crowdfunding Law”. This law was signed by President Vladimir Putin in August, after the Russian State Duma approved it, and will enter into force on January 1st, 2020.

For these reasons, Russia can be considered to be a supporter of cryptocurrencies. Although its official adoption has not yet materialized, it is clear that it is preparing a new legal system that will allow the Russian government to better regulate the use of crypto assets.

Despite the popularity of cryptocurrencies in Russia, they have faced some conflicts. The country’s Central Bank, which was not previously open to accept cryptocurrencies, has recently changed its position. Russian politicians, including Vladimir Putin, believe that cryptocurrencies like Bitcoin should not be banned but should be adopted within a set of regulations.

By Willmen Blanco

R3 Sign Alliance with a British Company for the Use of Its Blockchain ​​Platform

Maria Rodríguez
-
0
R3 Sign Alliance with a British Company for the Use of Its Blockchain ​​Platform

R3 seeks to capture new markets by associating its technology with an English company.

According to data recently offered by the blockchain solutions company R3, a so-called “institutional agreement” with the British company Archax, dedicated to business with digital assets, would have been signed. In this way, both companies seek to strengthen their business and the processes necessary to achieve their objective.

The association will allow Archax to adapt its platform in order to improve the financial records of the different transactions or operations, this including the transfer data of property certificates, as well as the records of the assets that maintain and protect the identity of its owners.

R3 has become one of the main companies that have energized its alliances with other companies around the world, being one of the main competitors for Ripple, which is in an equally dynamic process, seeking to expand.

The alliance between these two companies demonstrates the reach that blockchain technology is having in global financial markets and in traditional companies that are looking for expansion opportunities, using innovative tools.

Archax is a company which still considering digital currencies as an asset that generates distrust and insecurity about its use and adoption. However, it is committed to the implementation of blockchain technology as an effective alternative to current financial problems and as a method of innovating and streamlining the new and different processes that arise within the dynamic commercial changes in the world.

Current Financial Processes and Blockchain Technology

Due to the problems in some current economy, many countries have resorted to the transformation of their income, reaching a financing of their economic processes. This means that the financial sector has taken greater power over the sustenance of its income and expenses in the economies. Now cryptocurrencies are one of the main tools for the growth of countries.

Since this sector has become more involved in global economic processes, financial companies have sought ways to innovate in their ways of doing business. Their idea is to constitute the best financial methods to accelerate negotiations and facilitate transactions, among other things.

It is known that in terms of technology, these traditional companies did not have the necessary tools to face the economic changes that today’s society entails. This can be an opportunity for blockchain technology to find its place in the financial sector, becoming not only an option for economic processes, but also having to be used as a foundation for the entire new global economic system.

Great financial processes between commercialization and bureaucratic affairs represent complex operations that end up costing a lot of time, work and money. It is for this reason that blockchain technology can be the solution for these issues can be resolved in a more practical and simple way.

That includes solutions such as the one of Ripple with its XRP cryptocurrency, which helps facilitate international commercial transactions between financial companies, including governments and traditional companies, so new financial executives have seen this technology as a solution to many problems. It also helps save information during the process.

By María Rodríguez

1...1,4571,4581,459...1,654Page 1,458 of 1,654