Walmart China, VeChain, and other Firms Team up to Develop Food Traceability System

Andres Chavez
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Walmart China, VeChain, and other Firms Team up to Develop Food Traceability System

The blockchain technology is, without a doubt, one of the most versatile inventions of our time. The way it has optimized and streamlined processes around the world has revolutionized entire industries, and one of the sectors that has successfully adopted is food production.

This week’s latest development on that front has Walmart China announcing plans to track food treatment and manipulation along the whole supply chain through VeChain’s Thor blockchain. The information came to prominence thanks to a press release published by VeChain.

Meet the WCBTP

According to the release, the Walmart China Blockchain Traceability Platform (WCBTP) will be a joint venture formed by several entities, among which are Walmart China, VeChain, PricewaterhouseCoopers (PwC), Inner Mongolia Kerchin (a cattle business,) and the China Chain-Store & Franchise Association.

The WCBTP was recently unveiled, at the 2019 China Products Safety Publicity Week Traceability System Construction Seminar, which was organized by Walmart China and the CCFA. It took place in Beijing, the Asian country’s capital city.

The retail giant has already unveiled 23 product lines that the new tool will track, with another hundred ready to be included in the near future as well. There will be 10 product categories covered by the system; one that customers will be able to take advantage of to ensure all of the items’ background is trustworthy.

According to the publication, Walmart China is expecting that tracked sales will be substantial volume-wise. “It is expected that the Walmart China’s traceability system will see traceable fresh meat account for 50% of the total sales of packaged fresh meat, traceable vegetables will account for 40% of the total sales of packaged vegetables, traceable seafood will account for 12.5% of the total sales of seafood by the end of 2020.”

VeChain’s Expertise

Meanwhile, VeChain is lucky enough to be one of the few firms (197 in total) the Chinese government and, most specifically, the entity in charge of managing Internet and the cyberspace, has authorized to function as a registered blockchain service provider. The list was released a couple of months ago.

VeChain’s blockchain technology is “enabling Walmart China to implement a traceability strategy for products and pioneer the large-scale application of blockchain traceability. By scanning the desired products, customers can acquire detailed information, including the source of the scanned products and geographic location received by Walmart, logistics process, product inspection report, and many more data points. Data collection and data availability are to be continually added to the scale of the platform and its use of blockchain technology.”

It is not the first time that Walmart, one of the most famous and successful store chains in the world, has successfully experimented with distributed ledger technology (DLT.) In fact, it began collaborating with IBM in 2016, on the development of a system that could spot and flag recalled foods.

That was the start of a constant search of solutions through the DLT. Ever since that moment, Walmart has tried the technology to track meat in China, and pursue other projects.

Kevin Feng, Chief Operating Officer of VeChain stated that “as the world-leading enterprise-public blockchain platform, VeChain aims to empower enterprises in the large-scale digitization process by providing safe and mature blockchain deployment solutions and promote the wide application of blockchain technology. We achieve this while putting forward new insights for the development of the businesses’ ecosystems.”

He further added that “the launch of the Blockchain Traceability Platform by Walmart China, the world-class retail giant, is of great significance to the commercial application of blockchain technology. VeChain will work with Walmart China to actively take heed of the call of the government, by utilizing technology to promote the traceability of fresh food, and to provide innovative solutions for the traceability platform through digital technology, so as to generate more transparent and reassuring consumption experience.”

By Andres Chavez

Crypto-crimes Since 2017 Cost USD 2.28 Billion to South Korea

Maria Rodríguez
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Crypto-crimes Since 2017 Cost USD 2.28 Billion to South Korea

South Korean investors bought some 1.28 million euros in cryptocurrencies that were sent to digital portfolios of operators located in other countries. Now, the authorities have a new plan to protect users

According to what local news published recently, the Ministry of Justice of South Korea estimates that crimes related to cryptocurrencies caused KRW 2.69 trillion (approximately USD 2.28 billion) financial damages between July 2017 and June 2019.

In this regard, the ministry claimed that 132 criminals and fraudsters related to cryptocurrencies had been accused and detained, and another 288 were accused of physical detention during the aforementioned time.

The report notes that the lack of clear regulations to cryptocurrency exchanges has led to an increase in the use of almost anonymous or opaque accounts, even though Justice Minister Park Sang-ki has ordered harsh measures against crypto-criminals.

Anonymous Accounts are Prohibited

Despite the ban to anonymous accounts of cryptocurrency exchanges that took place in the region in January last year, small exchanges allegedly began using the so-called “hive accounts” to avoid the regulation.

For this reason, it is necessary to establish a clear regulatory framework that allows protecting all users; thus, avoiding hacking among other types of crypto-crimes.

The exchanges that use the “hive” type accounts keep the users’ funds in their corporate bank accounts; they privately keep the identity of their users. With the same idea, the government proposed ending that practice, but a court suspended the decision by considering, so far, that it would be inappropriate for the government to close the corporate bank accounts of the exchange.

Other Crypto Businesses

Earlier this month, different media reported that the South Korean credit card firm Shinhan Card received a patent for a blockchain payment system. This would open the doors to different forms of cryptoactive adoption in that country.

On the other hand, on July 1st it was informed that Busan, the second most populous city in South Korea after Seoul, is considering the launch of a local cryptocurrency in collaboration with BNK Busan Bank, a subsidiary of local holding BNK Financial Group.

In these ways, South Korea would develop its world of digital currencies, but, at the same time, government entities seek to regulate activities with these assets to avoid scams and, in this way, avoid more money losses that affect more South Korean users.

The Problem

A recent report published by the South Korean Customs Service indicates that the increase in speculative activity with cryptocurrencies in the Asian country “increases the possibility of illegal withdrawal of foreign currencies”, as well as other illegal transactions.

South Korean investors bought some 1.28 million euros in cryptocurrencies that were then sent to digital portfolios of operators located in other countries and converted into foreign currencies, which means illicit capital flows, according to South Korean authorities.

 Another irregular volume discovered were 3.5 million euros sent to deposits abroad without declaring, a local report said. The South Korean customs authority adds that “it will continue to monitor the use of cryptocurrencies in cases such as illegal trade or money laundering”.

By María Rodríguez

Philippines’ Union Bank Will Issue a Peso-Pegged Stablecoin to Promote Rural Banking

Andres Chavez
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Philippines’ Union Bank Will Issue a Peso-Pegged Stablecoin to Promote Rural Banking

Connecting people and making banking services easier to access for specific communities are now atop the list of priorities for banks and financial institutions around the world, much more so after the blockchain technology and cryptocurrencies became mainstream.

Now, one of the Philippines’ largest banks has adopted a similar stance: in order to promote rural banking, the Union Bank, a top 10 institution in the Asian country, recently announced the launch of a cryptocurrency, in the form of a stablecoin, which will connect the local communities through banking opportunities thanks to its blockchain ecosystem.

Meet the PHX

PHX is the name of the unveiled stablecoin, and its value will be pegged to the Philippine Peso (PHP,) the national currency. The asset is already present on the Union Bank’s i2i blockchain platform, according to local news outlet Philstar.

The magazine reports that the Union Bank; therefore, became the first financial institution in the Philippines to use the blockchain technology to perform transactions, a development that will surely pave the way for others to follow a similar path.

According to Union Bank’s Senior Vice President and Head of the Fintech Business Group Arvie de Vera, “PHX is a stable store of value, medium of exchange and is a programmable token with self-executing logic. It enables transparent and automatic execution of payments.”

Successful Live Transactions on the i2i Blockchain Platform

Union Bank’s ventures with the blockchain technology has been a resounding success so far; as three of the most widely known institutions in the country (the Summit Rural Bank in Luzon, the Progressive Bank in Visayas, and the Cantilan Bank in Mindanao) have completed live transactions on the Union Bank’s i2i blockchain ecosystem.

According to reports, the rural banks have been using the Union Bank’s cryptocurrency and related services to perform buy, transfer, and redemption transactions, not to mention domestic remittances.

“Governance is assured by design. Reconciliation challenges of the past are no longer an issue. Meanwhile, audit and compliance are made easier,” de Vera stated.

In the first stage, people using the i2i (a term that refers to a project embarked by rural banks in the Philippines, which can mean island to island, institution to institution, and individual to individual) blockchain platform will be able to acquire PHX via direct debits from their UnionBank accounts, per the Philstar report.

Conveniently Convert PHX to PHP

Purportedly, the user community will earn several benefits with the use of the stablecoin, and will find it convenient to convert PHX to PHP and withdrawing the funds in fiat to their bank accounts.

For institutions such as the Union Bank, getting their services to a wider, more remote community of users is a key strategy for success. Roughly 70% of people in the Philippines do not have access to a checking or savings account, and this is especially true in rural sectors.

The Union Bank has long been involved in crypto affairs. For instance, it unveiled the first crypto ATM in the Philippines in February.

By Andres Chavez

Software Will Apply Blockchain Technology to the Spanish Forest Sector

Maria Rodríguez
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Software Will Apply Blockchain Technology to the Spanish Forest Sector

The main objective of the new project is to reduce costs and improve traceability and efficiency in the wood supply chain

Thanks to the initiative of the Ministry of Agriculture, Fisheries and Food of Spain, a supranational group called ChainWood was formed in that country. According to the official information, the group will apply the advantages of blockchain technology in the Spanish forestry sector.

The official website of the project explains that they will develop software in the cloud that will apply blockchain, in addition to sensory, big data and machine learning to the supply chain of wood in Spain, with the aim to reduce costs and improve its traceability and efficiency.

The Technological Corporation of Andalusia (CTA) participates in the ChainWood operating group. Its objective is to add capacities of the timber and forestry sector, with the help of companies and technology centers to develop the software that will apply blockchain technology to the wood supply chain in Spain.

According to a recent publication, the main objective of the development is to reduce costs by applying blockchain technology along the wood supply chain. In this way, blockchain would be used from the forest to the industry to improve the efficiency and traceability, in order to follow up all the stages of the process.

The aim of ChainWood is to solve some of the limitations presented by the different supply chains of wood in Spain. One of the stages that seeks to improve is the segment of the supply chain between the forest and the industry of first transformation.

Three Pilot Experiences

To fulfill this goal and observe the possible results, it is expected that once the software is developed, three pilot experiences will be conducted in Castilla León (poplar), Asturias (chestnut) and Galicia (oak).

The official article specifies: “ChainWood is a supranational operative group, created with funding from the call for operating groups of the Ministry of Agriculture, Fisheries and Food, with a subsidy of 93,530 euros co-financed by 80% with EAFRD Funds, applied through the General Directorate of Rural Development and Forest Policy, and 20 percent by the General State Administration”.

Currently, the group is working on the design and drafting of the innovation project, which will subsequently be eligible for funding for its execution through a second call for the program. This is possible because the Ministry of Agriculture managed to gather collaborations and take the first step after a first call.

The ChainWood group brings together eight partners from Andalusia, Galicia, the Community of Madrid, Castilla León and Asturias, among which are from forest associations to technological centers specialized in wood, as well as companies of Information and Communication Technology (ICT) and companies in the processing industry.

ChainWood has the subcontracting of Indra Sistemas, a Spanish multinational company that offers consulting services on transport, energy, telecommunications, services to the public sector and others. Also, it has the support of the Finnish company Risutec, specialized in machinery for forestry exploitation, in order to fulfill the objectives of managing forest work with care and efficiency.

By María Rodríguez

Iran Will Have its Own Cryptocurrency Backed by Gold

Maria Rodríguez
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Iran Will Have its Own Cryptocurrency Backed by Gold

Although the State of Iran will soon issue its own cryptocurrency, it has not yet developed a legal framework that regulates and controls that asset

Iran will be one of the few countries that will have its own cryptocurrency which would be approved and accepted by the legislation of their government. To achieve this goal, this asset will be approved by the Central Bank of Iran (CBI) and also will be backed with the gold of the country.

Through a recent report issued by the Chamber of Commerce, Industries, Mines and Agriculture of Iran, last July 13th in Tehran, an official form was released, informing citizens that the CBI approved the issuance of the official cryptocurrency.

With the aim to conduct this process in an appropriate manner, the developers specified that the cryptocurrency mining will be conducted through a previous agreement of private companies that are dedicated to the solution of technologies and innovations. These companies have focused on the development of different technologies in countries of the Middle East. Currently, the names of the companies that will provide this service in conjunction with the State of Iran are unknown.

However, the CEO of FANAP, one of the most important business consortiums in Iran, Shahab Javanmardi, commented that this new Iranian cryptocurrency will represent a great advance for technology and that this digital asset supported by the gold of the country will have the same qualities and advantages than other digital currencies of the world.

With respect to the regulatory matter, and with the intention of using part of the reserves of money that the banking sector in Iran has, Javanmardi suggested to the Government of the country to create a regulatory framework that allows controlling the digital mining activity that is developed in the country.

At the end of June, in the country emerged some news about the seizure of more than 1000 mining machines that were used to generate cryptocurrencies. The information was confirmed by the president of the Central Bank of Iran. This is something illegal in the country, as well as it lacks of legal terms for legal processing.

In technical terms, Iran is one of the countries with the greatest facilities for the development and growth of cryptocurrency mining, since the Government guarantees its citizens a significant subsidy for electricity service.

It is for this reason that many companies dedicated to this sector are in uncertainty regarding the legal framework of these assets, since these seizures of equipment for mining arise, and at the same time, the Government launches a cryptocurrency with mining capabilities.

However, Mostafa Rajabi, who is Iran’s Energy Minister, commented that mining is still an illegal activity and that his administration continues taking measures to prevent the mining of cryptocurrencies, because in most cases these activities are conducted within of mosques and schools, where electricity tends to be free.

It is still unknown under what terms the Iranian Government will allow the mining activity in the country, since they have not yet defined a legal framework and insists on banning the mining itself.

A similar case takes place in Venezuela, where the State has a cryptocurrency called Petro and, at the same time, chases, imprisons and categorizes all citizens’ mining activity as illegal.

By María Rodríguez

World Economic Forum Presents the Benefits of Blockchain Technology

Maria Rodríguez
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World Economic Forum Presents the Benefits of Blockchain Technology

The idea is to break the barriers of knowledge around Distributed Ledger Technology

The World Economic Forum (WEF) published a guide which allows understanding and evaluating the benefits of blockchain applications. In the same vein, it includes how to take advantage of them. The agency made the announcement recently through a press release.

The intention of the initiative seeks to improve the knowledge of this tool, since Distributed Ledger Technology (DLT) is not understood by some people in different regions of the world until now.

Due to the boom that this technology and the cryptographic world have gained, the increase in the applications of these new technologies is a reality. Despite this, a large number of companies still does not know how this technology works.

The document has 17 illustrative pages, which explain in a basic way the true benefits of blockchain, the challenges still to be overcome and the false hopes that companies and users should avoid.

Basically, the document divides the chain of blocks into several components that would be more easily understood by the companies that want to use them.

How to Take Advantage of Blockchain?

The document explains how to apply blockchain, giving six recommendations for companies that want to implement this technology. Among the first steps is to take time to understand the technology, establish realistic expectations (identify incentives and risks), in order to identify the strategic priorities of the company or project.

The report also recommends evaluating whether blockchain or other technologies are the best solution or not, by clarifying that “blockchain is not a substitute for digitization and should not be treated as such”. Finally, the report reminds that organizations should maintain an agile approach, since this allows improving the evolution of the strategy and thinking beyond the individual organization.

The file states: “The decentralized nature of blockchain makes the transformation from an isolated approach to an ‘end-to-end’ value chain integration in fragmented and complex environments more achievable. In fact, the lack of collaboration can undermine, or even block, such a transformation. When assessing value, it is important to consider scale and network effects, especially when collaboration is allowed”.

Accenture Research, a company that offers services related to information technologies, collaborated with the creation of the document based on a global survey of 550 people in 13 industries, with interviews to public sector leaders and executive directors of the private sector, and an analysis of 79 blockchain projects.

Councils of the “Fourth Industrial Revolution”

The Blockchain Value Framework guide follows the “Blockchain Beyond the Hype” report, published by the WEF last year. Sheila Warren, Head of Blockchain and Distributed Ledger Technology at the World Economic Forum, explained that the purpose of this technical document is to provide guidance in the application of that technology.

“This new framework is for those business leaders who have discovered that blockchain is the right solution for a specific problem, but they do not know what to do next”, she said.

At the end of May, the WEF also announced the formation of six “councils of the fourth industrial revolution”. This is another advance that the organization prepares in blockchain matter for a correct use of new technologies.

By María Rodríguez

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