Russia Prepares Cryptocurrencies Legalization and Rejects Facebook’s Digital Asset, Libra

Maria Rodríguez
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Russia Prepares Cryptocurrencies Legalization and Rejects Facebook’s Digital Asset, Libra

The president of the Finance Committee considers Libra Coin is a threat to the country’s economy

In just two weeks, Russia will have a formal regulation, already revised and corrected, related to the use of cryptocurrencies and blockchain technology. Recently, the draft of a bill was modified for not having basic terms such as “cryptocurrency”.

The adoption of the cryptocurrency legislation was postponed in that country because the international Financial Action Task Force for Money Laundering (FATF) requested to check the terminology part, as reported by the Russian news agency TASS, which has the Government support.

For that reason, and with the aim to don’t generate doubts about any process, the Russian Parliament, known as the State Duma, will approve a bill called “Digital Financial Assets” (DFA), according to local finance officials. This news was also announced by TASS.

It is necessary to remember that the authority of that country approved a legislation that separates initial coin offering (which will be part of the Russian law for collective financing or “crowdfunding”) and the DFA law, according to the Deputy Minister of Finance from Russia, Alexei Moiseev.

The official also revealed that the State Duma is considering the DFA law and that this bill is expected to be adopted and made known in the next two weeks. In this way, Russia will have two bills related to the world of cryptocurrencies.

In past weeks, the Government of Russia decided to conduct some tests in four regions of the country (Moscow, Kaluga Oblast, Perm Krai and Kaliningrad) to know how blockchain technology could be adopted, another of the areas that, until now, lacks of regulation, but that would also be regulated in the coming weeks.

The expectation of cryptocurrencies users in this country grows these days, while waiting for the regulation that will clarify the use of cryptocurrencies and how this can be done.

So far, the Russian government shows more openness towards blockchain technology than towards the use of cryptocurrencies. In fact, this year the possibility of creating its own cryptocurrency was postponed until a clear regulation is established and before any type of operation is started.

Russia Will Not Legalize Facebook’s Cryptocurrency

As reported by local media, the Chairman of the Committee of the State Duma of the Federal Assembly, Anatoly Aksakov, declared that the country will not legalize Libra Coin, the cryptocurrency of the social network Facebook, which would be in the market by 2020.

The official believes that the use of this cryptoactive would represent a “threat” to the country’s financial system and said Russia still has no plans to adopt legislation “that offers space for the active use of crypto-monetary tools created in open platforms”.

This position contradicts a little with the opinion of Moiseev, but in the coming days it is possible to take new decisions in the same line. However, it seems that a door could be opened for those who wish to acquire these cryptocurrencies under foreign legislation, a fact that would be responsibility of the user who decides to do it.

By María Rodríguez

Craig Wright Officially Recognized as Satoshi Nakamoto

Willmen Blanco
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Craig Wright Officially Recognized as Satoshi Nakamoto

An alleged official document recognizes the businessman as “the true creator of Bitcoin”. Wright has initiated several legal battles to be recognized as Satoshi Nakamoto in the United States

The highest political authority of the city of Bogota apparently recognized on Thursday, June 20th, 2019 the Australian Craig Wright as Satoshi Nakamoto. The alleged official document, which describes the businessman as the “world-renowned creator of Bitcoin”, has the signatures of the President of the Council of Bogota, Nelly Mosquera, and Councilor Julio Acosta.

Jimmy Nguyen, Founding President of the Bitcoin SV Association, published some photos of the document, as well as of Craig Wright posing in the building of the Council of Bogota. The recognition links Wright directly to Satoshi Nakamoto, the pseudonym used by Bitcoin’s creator.

The certificate is a distinction to Wright for his “leadership in advising, researching and developing organizational security systems for more than 20 years.” It also notes that the businessman has contributed in the fields of information technology, computer security and digital forensic analysis with Bitcoin. In this sense, he was awarded for the creation of “an electronic currency that features new characteristics.”

Event in Bogota

Wright is currently in the capital of Colombia participating as a speaker at the Expo-Bitcoin event, which takes place at the premises of Corferias and is especially dedicated to promoting the adoption of Bitcoin SV, the cryptocurrency that the programmer supports jointly with the nChain team.

Nguyen said that Craig Wright had attended the Bogota Council to talk about Bitcoin and laws. There he described his vision for a globally connected economy in which the average person can own property, the poorest and most isolated people can market their assets anywhere in the world, whilst emphasizing the importance of regulation and joint work with governments to make it happens.

Wright also explained that Bitcoin did not consist of anonymous systems, anarchy or destroying governments. According to him, his vision is to work together with governments, comply with the law and contribute to the honesty of governments.

The Community Reacts

Among the members of the Bitcoin community in Bogota there are those who consider that Craig Wright does not deserve recognition as Satoshi Nakamoto. They regret that the Council of Bogota has ratified that claim, since it has not been duly confirmed before the law and the knowledgeable community. In addition to complaining about the event, they demanded that the authorities be better informed.

Other Bitcoin users said it was a shame that Colombia had officially recognized Wright as the creator of Bitcoin. Similarly, in other countries it was suggested that the businessman could use this certificate, as well as the copyright registration introduced in the United States, to support his claim that he is the real Satoshi Nakamoto

Wright has claimed on more than one occasion to be the real Satoshi Nakamoto. The Australian researcher has filed lawsuits against Bitcoin users, registered copyrights on the Bitcoin White Paper and has gone to trial with the aim of being recognized as the creator of Bitcoin. However, he has not yet been able to prove that he was involved in the creation of this cryptocurrency.

By Willmen Blanco

Polish Bank Will Use Ethereum Blockchain to Verify Documents of Its Customers

Maria Rodríguez
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Polish Bank Will Use Ethereum Blockchain to Verify Documents of Its Customers

The bank’s certification network will be available to its customers through a public blockchain network

According to a recent report published by the magazine specialized in business and finance, Forbes, the important Polish bank, Alior Bank, one of Poland’s 10 largest bank, has enabled a system based on the Ethereum blockchain network with the aim to authenticate and certify documents of its clients.

The report states that once the clients of the bank have deposited their documents in the institution, the client can access a public network of blockchain through a web link where they can verify the authenticity of the document. This will help the bank’s customers to check the document on the network, which will follow the specifications required by the bank.

In this sense, Piotr Adamczyk, Alior’s blockchain technology lead, comments: “We know exactly in which block of Ethereum the document with a given hash is published, if we know the block number, we also know the timestamp. We know that the document was published some time ago and it has not been changed (if the hash stored in the block chain is identical to the hash calculated from the document), so we can prove that it has not been replaced on our servers”. This system will help to specify the delivery times of different requirements and maintain an orderly and detailed record of the documents.

This new system made available by the bank, obeys a regulatory resolution issued in 2017 by the Office of Competition and Consumer Protection in the country. This resolution expresses that websites do not constitute a true support in time for documents, arguing that websites can be modified too easily and that for this reason they are not durable.

Due to this statement, the bank has made available to its customers a web system that will allow the use of a blockchain platform capable of providing, in a safe and lasting manner, the necessary documents for the requirements of the institution. In addition of this, spokesmen of the bank assured that they are the only bank that puts at the disposal of the clients a public network of blockchain specialized for the attention of its clients.

The blockchain strategy lead in Alior, Tomasz Sienicki, declared with enthusiasm that Alior Bank seeks its clients to have more control over the documents that are deposited in the bank. Strengthening this way trust in the institution.

“We want people to verify that we did everything right and that we did not hide anything. If we say the documents are actually verified and authentic, everybody can check them and confirm it. That is not possible using a private blockchain”, he said. For that reason, the institution would use a public blockchain.

Enabling a public blockchain network so that customers can verify the documentation provided to the bank represents a great novelty for financial institutions. Since, according to Sung-jung Kim, who is a financial analyst, more banks are interested in developing private blockchain networks in order to keep all their information safe. Now it is the opportunity for users with the public network.

By María Rodríguez

Litecoin Will Launch a Cryptocurrency Debit Card

Maria Rodríguez
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Litecoin Will Launch a Cryptocurrency Debit Card

The launch of the Litecoin debit card is expected to facilitate online purchases and in stores that accept LTC as a payment method

Recently, in a publication of the official blog of the Litecoin Foundation, it was known that the organization has made an important alliance with the companies Bibox Exchange and the blockchain company Ternio, in order to launch a physical debit card to the cryptocurrencies market.

These companies hope to take out, jointly to the market, the physical card that receives the name BlockCard. According to the specifications of the publication, the card will be used to make purchases online, as well as to make payments in points of sale in physical premises.

The card, until the moment, will only be compatible with the cryptocurrencies of these companies, as well as may have all or any of those cryptocurrency within the account on which the card is supported. The referred cryptocurrencies are: Litecoin (LTC), as well as the tokens of native Bibox tokens (BIX) and (TERN) of Ternio.

Respectively, as part of the project, the exchange company Bibox will be in charge of being the custodian of the funds of the customers’ cryptocurrencies. It is known that their platform will allow users to carry out transactions in authorized cryptocurrencies, with a value equivalent to 200 million US dollars, so it will be able to support large volumes of transactions. In this sense, Ternio will be responsible for providing the platform that will be used for the project.

The Litecoin Foundation together with the company Bibox Exchange will integrate their platforms to the card, which will be supported directly with the official Litecoin and Bibox wallets.

The executives and spokespersons of the company have expressed their enthusiasm for the launch of this option for their clients and hope that this measure will be of primary interest for users who seek comfort when using crypto technology.

“This is an exciting partnership for us, as it promotes the mission of the Litecoin Foundation to create more use cases to apply Litecoin in everyday life. Taking advantage of Ternio’s BlockCard platform with the Bibox exchange motor gives Litecoin holders access to use their card in shops around the world”, they explained.

This announcement follows the measures of other companies that have decided to implement the use of cards for their clients of digital assets. A few weeks ago, Coinbase, one of the main exchange companies in the United States, launched in some European countries a cryptocurrency debit card that it created with the support of the multinational financial company Visa.

The proposal offered by Coinbase is that any merchant who receives cryptocurrencies and accepts Visa, may pay their purchases with said card.

In March, the interest of the financial firm Visa in exploring blockchain technology became even more known. For that reason, it published it was looking for experts in the area. Another similar development is Crypterium, which is a card that works with crypto funds convertible into fiat money. Its main advantage is that it can be used anywhere in the world. Cryptoactives now could be spent in almost anywhere. This is another step for these digital assets in constant change and development.

By María Rodríguez

The Reasons Why US Lawmakers Call for Halting Facebook’s Cryptocurrency

Maria Rodríguez
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The Reasons Why US Lawmakers Call for Halting Facebook’s Cryptocurrency

Russia will not legalize Libra so far. The French Finance minister and the CEO of Binance don’t accept the new cryptoactive

At least three American lawmakers have requested Facebook Inc. to stop the development of its cryptocurrency, Libra, until some company executives testify and clarify to the US Congress if the data of the social network’s users will remain safe, due to concerns about the use of the digital currency with respect to the privacy of the data and its security.

“Facebook has the information of billions of people and has shown a reiterative disinterest in the protection and care in the use of this information. With the announcement of its plans to create a cryptocurrency, Facebook is continuing its unbridled expansion and extending its reach in the lives of its users”, said Maxine Waters, who heads the Committee of House Financial Services of the United States Congress.

The congresswoman also said that Facebook should stop the development of its product, which will be called Libra, until Congress and regulators analyze it. He also called on company executives to testify in the Congress.

In addition to US lawmakers, multiple regulators around the world claim to be concerned because Facebook is “careless” with the privacy of its users. This is the main complaint against Libra and its platform, since transactions with cryptocurrencies must remain protected from third parties.

Senator Sherrod Brown, Democratic leader of the Senate Banking Committee, gave strong statements about his point of view. “Facebook is already very big and powerful, in addition to using that power to exploit the information of its users, without protecting their privacy, we cannot allow Facebook to develop a new cryptocurrency, like a Swiss bank account without surveillance”, he said through a statement.

US Senator Mark Warner, a Virginia Democrat who also belongs to the Senate Banking Committee, said Facebook would be using its domain in social networks to dominate other markets such as mobile payments.

Clash of opinions in other countries

The State Duma chairman of the Financial Market Committee of Russia, Anatoly Aksakov, said that his country will not legalize Libra in that country because it could represent a threat to its economy.

Also, the French minister of Economy and Finance, Bruno Le Maire, called for guarantees and a greater regulation of technology companies.

“This instrument for transactions will allow Facebook to collect millions and millions of data, which strengthens my conviction that there is a need to regulate the digital giant”, he said during a radio interview.

The Bitcoin developer Udi Wertheimer said: “Calibra is a digital wallet. Users will not manage keys, it will be used by Facebook, and will probably be the main way people use Libra, the token”.

The CEO of Binance, Changpeng Zhao, also referred to the data that the company owns: “Facebook’s Libra coin do not need Know Your Customer (KYC). They have so much more data on the two billion people. Not just name, id, address, phone. They know your family, friends, real-time / historic location, what do you like, they know you, and now your wallet too”, he said.

However, the Governor of the Central Bank of England, Mark Carney, said he remains “open-minded” with respect to the use of this product, although he warned that this cryptocurrency may face strict regulation.

Facebook has already presented Libra’s white paper and says they have met with regulators from the United States and other regions to talk about the cryptocurrency project, although they did not give more details.

Financial representatives of the Swiss Government said they were contacted by promoters of the Libra project, without giving more details.

Markus Ferber, a German executive legislator in the European Parliament, said Facebook’s new currency should put “regulators on high alert”. He called on the European Commission to start a regulatory framework for virtual currencies. The debate about cryptocurrencies in general and also about Libra’s case remains.

By María Rodríguez

Crypterium, the First Crypto-Card of the World

Maria Rodríguez
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Crypterium, the First Crypto-Card of the World

The instrument will work as a debit card, but with crypto funds convertible to fiat money. It could be used almost anywhere in the world and it will use almost 11 cryptocurrencies

The fintech company Crypterium, which is from London (United Kingdom), announced on its website the launch of a prepaid card that can be recharged with cryptocurrencies and that will allow to use cryptocurrencies such as Bitcoin, Ethereum and others from the wallet and directly with a UnionPay card.

This first crypto-card could be used in almost any establishment, because at the moment that the service will be paid, the system automatically converts the cryptocurrency chosen into dollars (initially, in this currency and, perhaps, later in other fiat currencies, depending on the country). Then, it proceeds to pay or transfer money to obtain cash, if this is the case.

UnionPay is a payment system accepted in 174 countries and has operated mainly in Europe and America, but also in Asia. Hence, it could be used for everyone. It is a relatively new circuit compared to Visa and MasterCard. It would be an alternative in countries that have problems processing electronic payments.

Crypterium, in this way, would overcome different geographical limitations to position itself as the only prepaid card of global reach to pay for different products and services using the funds that the user has available in cryptocurrencies.

“The wonderful thing about cryptocurrencies is that they were designed to have no borders. The Crypterium card has this ideal. Anyone can apply for a card and start using cryptocurrencies to pay for what they want in their daily lives. I think this service will thrive as fast as NFC technology”, Steven Parker, CEO of Crypterium, said.

Until now, although there are some 4,939 cryptocurrency ATMs installed in different regions of the world, and more and more people decide to obtain some cryptoactive, traditional forms of payment, such as fiat money, predominate in the market.

This is a fact that must be overcome to achieve the massive adoption of cryptocurrencies and just this new card could help convert cryptographic balances into fiat money in those establishments where they do not yet receive payments in cryptocurrency.

“Cryptographic cards are the fastest and most convenient option for converting cryptocurrencies into local currency. However, cards on the market currently are only available in some countries or regions. A clear example is the recent launch of the Coinbase card, only available to citizens of the United Kingdom”, a press release issued recently says.

Crypterium Will Cover another 11 Cryptocurrencies

According to the information handled until now, the card is linked to the Crypterium wallet. Its App has more than 500,000 users in the United States and allows to the account holders to buy, store and operate assets such as Bitcoin, Ethereum, Litecoin, USD Coin, and the Crypterium token, called CRPT. The card would not charge transaction fees.

The company plans to add another 11 cryptocurrencies during the last quarter of this year so that these assets can also be used through the card. As part of an integrated and practical work, the App allows operations related to the card such as blocking and unlocking, tracking expenses, contact with a support team and replacement of the PIN code.

Financial regulators from different countries work with Crypterium to verify that the card follows the standards that are necessary. Part of the achievements of this company is to have developed the first mobile payment solution in Eastern Europe by means of scanning QR codes in 2013. This is why its project with cryptocurrencies and fiat money is expected to be successful.

The intention of Crypterium is to make cryptocurrencies as liquid as cash. A purpose that it has been pursuing since 2017, when it started developing products based on blockchain technology.

In the near future, these cards could have equal or more presence than the number of crypto ATMs in the countries that have hosted crypts and would be a solution to make payments immediately using cryptocurrencies.

By María Rodríguez

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