Brazil will Seek to Apply New Regulatory Measures to Face New Technologies

Maria Rodríguez
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Brazil will Seek to Apply New Regulatory Measures to Face New Technologies

Brazilian institutions will make efforts to promote a regulatory framework that benefits users and all the industry

Recently, in some press media from Brazil, it was known that some government authorities are working in order to create a new regulatory framework that seeks to control, and at the same time to promote, new technologies with the aim of getting prepared for future advances in blockchain technology, this is, Artificial Intelligence (AI), among others.

It is known that, mostly, financial and governmental authorities of the South American country have developed a regulatory model similar to a sandbox structure that will seek to satisfy, mainly, the needs of its citizens, and that can also include elements that motivate financial and industrial growth. Among them, is blockchain technology.

Some of the most important actors of this initiative are top representatives of the Central Bank of Brazil, the Superintendence of Private Insurance, the Ministry of Economy of Brazil and the Securities and Exchange Commission (CVM). These organizations have reiterated their interest to belong to any project related to the so-called “Digital Transformation”, with the central motivation of improving the country’s economic stability and minimizing financial risks in key areas such as insurers, banking, public capital, and others.

The Securities and Exchange Commission has expressed its deep interest in supporting the consecutive growth of new technologies, taking as an example the robotics and blockchain technology, which, according to spokesmen, have managed to make big changes in the business models of large corporations and industries, motivating the creation of innovative products, higher quality and safety services.

All agencies and institutions participating in this initiative have declared their total willingness to enforce the rules and regulations that are approved for each area of ​​the economy. The idea is to propose a consensus agreement to allow correct access to innovative technology.

In addition, to contribute actively to the establishment of the regulatory framework, these companies also seek to get directly involved with this technology, in order to guide the legislative processes. For this reason, the Financial Action Group will be responsible for proposing important plans that guide actions to sensitive areas such as “digital assets”.

Spokespersons of these organizations and institutions hope that this regulatory framework will help significantly to establish clear rules that help to preserve the safety of users and that allows to support the basic needs of the industry, so that it can be developed and settled.

Establishing an ideal regulatory framework has represented a challenge for all those countries that have made efforts to regulate these new technologies. This is due to the complexities that arise within a terrain that still needs to be explored and expanded.

A large number of institutions interested in making the so-called Proof of Work (PoW) with these technologies will be needed to help support all areas of the economy without affecting users and without stopping new developments, growth or research of the related industries and their products, taking into account the users’ needs and the innovations of the current time.

By María Rodríguez

Georgia and IOHK Announce Partnership to Develop Blockchain Solutions

Andres Chavez
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Georgia and IOHK Announce Partnership to Develop Blockchain Solutions

Private companies and businesses are not the only ones identifying blockchain as the present and future of how processes are approached. As it turns out, more countries and governments join the blockchain revolution every day; taking advantage of its benefits to improve efficiency in several fields and applications.

Georgia is the latest nation to announce a partnership with a blockchain technology company in order to take the European country to the next level when it comes to international business.

A Memorandum of Understanding (MoU)

This week, the government of Georgia made public an alliance with blockchain technology firm IOHK (Input Output Hong Kong.) Charles Hoskinson, who is the CEO of IOHK, signed a Memorandum of Understanding (MoU) with the nation’s authorities, with terms that state that the Georgian Ministry of Education and Science will work alongside IOHK to spot and implement several third generation blockchain-powered projects.

IOHK is known within the industry as the company behind the development of the Cardano (ADA) cryptocurrency. Hoskinson, a highly regarded crypto entrepreneur who was also involved in the creation of the Ethereum blockchain, founded it.

According to the reports coming from Tblisi, the country’s capital city, Georgia’s authorities have spotted the educational sector, most precisely the university field, as an area in which it needs IOHK’s expertise and resources in order to make considerable improvements. Georgia wants to make sure higher-education qualifications are compatible across the whole continent.

Finding Solutions in Education Services

On top of that, IOHK will also work with Georgia’s government in its quest to come up with blockchain-enabled solutions to foster business and education services in the country whilst using Atala and Cardano to support fintech businesses, contribute to data security in the Ministry, and assist it with smart contracts and their uses.

According to Mikheil Batiashvili, who is currently Georgia’s Minister of Education, Science, Culture and Sport, the country “has had an exciting journey from its previous ranking of 112th on the World Bank’s ‘Ease of Doing Business’ index, to our current position of 6th, ahead of many established hubs for international business, including the US and UK. However, we are still on that journey and are hopeful that leveraging IOHK’s world-leading expertise, particularly in 3rd generation blockchain technology, will help us to progress even further toward our goal of being the world’s leading country for secure, digitally-enabled international business.”

An “Attractive Hub for International Business”

Meanwhile, Hoskinson expressed his happiness after the agreement was announced. “We are incredibly excited to be working with the Georgian government on a range of projects across business, education and government services. A combination of a strong university sector in the country and a ‘can do’ attitude on the part of the government has seen the country rapidly establish itself as one of the world’s most attractive hubs for international business. We’re pleased to now be a part of that journey and look forward to developing the blockchain ecosystem in Georgia and helping its people to solve the challenges they face.”

By Andres Chavez

Iceland’s Financial Watchdog Approves Monerium, the First Blockchain EMI

Andres Chavez
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Iceland’s Financial Watchdog Approves Monerium, the First Blockchain EMI

Digital money is not only the future, but it also represents the present, as evidenced by the developments in Iceland, one of the most stable countries in the European area. The nation has also shown a marked pro-blockchain stance since the technology became mainstream.

Now, Iceland will have a blockchain-based e-money firm, thanks to the approval of the country’s Financial Supervisory Authority, or FME, according to an official announcement this week. The FME is the nation’s financial watchdog.

Monerium: Backed by Blockchain Software Firm ConsenSys

The name of the initiative is Monerium, which is a project based in the country’s capital city, Reykjavik. As a matter of fact, Monerium is fully backed by one of the most widely known blockchain software firms in the planet, ConsenSys. The project will provide fiat payment services to people in Iceland whilst using the Ethereum blockchain.

According to the report published by a major crypto news site, Monerium is now the first company to operate with an electronic money model and framework, which lets the entity provide blockchain-based e-money services in the EEA, also known as the European Economic Area.

Jón Helgi Egilsson is the Co-Founder of the initiative. He used to be a Chairman of the Supervisory Board of the Central Bank of Iceland. The plan, this time around, is to develop and launch a blockchain-based fiat currency pegged to Icelandic krona (ISK) that powers cross-border payments in the currency with no middleman.

Programmable Money on Blockchain

“Monerium e-money encompasses the benefits of programmable money on blockchain, in addition to being the closest form of central bank money there is – based on a proven EU regulatory framework,” according to Egilsson’s remarks.

Egilsson also explained how an electronic money institution (EMI) works. “Unlike bank deposits, an electronic institution (EMI) must safeguard clients’ funds separately from any other financial activities, such as lending. Instead, customer funds are invested in a segregated portfolio of high-quality liquid instruments along with regulatory minimum reserves. The structure is similar to a high-grade money market fund.”

Operable in the Whole European Union

Initially, the digital or e-money, in this case the ISK, will be operable in the whole European Union (EU) and, if regulatory frameworks cooperate in the future, there is also a plan to introduce the e-currency to other nations, as well.

Sveinn Valfells, CEO and Co-Founder of Monerium, stated that “for practical purposes, fiat will be the currency most people and institutions will want to use in the near- and medium-term. And if you are touching fiat in any way, you just have to comply with the relevant regulations.”

ConsenSys took part in a $2 million seed funding round for the project that now has life of its own, at the start of the year. According to Monerium’s Co-Founder Andrew Keys, investment in the company paired well with the incubator’s purpose, which was the creation of “the infrastructure needed for a more decentralized and self-sovereign future.”

By Andres Chavez

Austrian Steel Company Will Use a Data System Based on Blockchain Technology

Maria Rodríguez
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Austrian Steel Company Will Use a Data System Based on Blockchain Technology

The blockchain system will seek to improve the storage of data related to steel trade within the company and the entire production chain

Recently, the Austrian media reported that the important local company specialized in the steel trade, Alukönigstahl, is developing a novel system based on blockchain technology that will permit the simplification of trade data within the industry.

Through this recent report, it was known that Stefan Grüll, Managing Director of Alukönigstahl, has been working on a business model that will be supported with the new trading system that is being built with blockchain technology.

This project is called “Steel but Intelligent” and will focus on strengthening cases of traditional commercial uses. With the aim to conduct this macro project of the company, Grüll said that they decided to establish a company called S1Seven GmbH, which will be dedicated to all matters related to blockchain technology. In this way, it will be possible to drive this project developed by their own means with local technology.

The data system will seek to verify information related to the origin and the standards within the steel industry, as well as data about the processing, refinement and properties of steel as a product of the company. This will simplify the information documents and the historical data of the company to unify all the files related to the production and sale of their products.

About this system for the active protection of data of the company documentation, Grüll said: “The legal testimonies that are subject to the legal requirements of retention, contain information about the tests and the results of the tests are binding”.

Despite the company’s interest in using all the processes of said system, Grüll also assured that it is necessary for a single group of interested parties in the industry related to plant constructors, raw material manufacturers, steel sheets and manufacturers of parts made with steel, in order to use a “data structure based on certain standards”. This will help place on the table certain parameters of action of the entire industrial line of steel.

According to some sources it is expected that, after reaching the agreements between all the steel production lines and the completion of pilot tests, the system will be active by the end of this year, thanks to all the participants that have reached an agreement to enjoy the service.

The steel industry could accelerate all its trade processes by installing this blockchain data storage system. This tool would gradually increase better management of the entire sector related to the supply chain, as well as other parts related to the processes of refinement, transferring and processing of raw material. It would significantly help to optimize all internal processes within the industry, decreasing expenses at key points, increasing production, and reducing the completion time in certain processes, according to what the representatives of the company hope. The truth is that blockchain is taking more spaces in different industries because of its capability to store and preserve information.

By María Rodríguez

South Korea’s FTC Forces Local Exchanges to Take Responsibility for Potential Users’ Losses

Andres Chavez
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South Korea’s FTC Forces Local Exchanges to Take Responsibility for Potential Users’ Losses

The crypto industry’s security has been compromised in more than one occasion, prompting users and investors to stay alert at all times and force crypto exchanges and financial regulators to come up with a solution in case of asset losses and other data breaches.

Regarding the case of South Korea, which is a country in which the cryptocurrency usage has gone significantly up in recent times, the financial watchdog is trying to make sure that crypto exchanges are accountable and can repay any damage that users suffer whilst using their platform.

“Corrective” Recommendations that Benefit Investors

That is why the Fair Trade Commission, or FTC, in South Korea has enforced what they call a “corrective recommendation” that will force five cryptocurrency exchanges in the country, including Bithumb, to update their terms and conditions in order to accept liability for any possible hacking attacks and related issues that may affect users.

The piece of news was reported by famous Korean news site Yonhap News Agency in recent hours. The FTC acts as South Korea’s antitrust watchdog. In the case of Bithumb, the recommendation came nearly a year ago.

Bithumb has become notoriously famous in the crypto community for being hacked twice in the last calendar year. Around this time of the year in 2018, it lost approximately $31 million worth of crypto assets, and if that was not enough, last month saw the exchange lose around $20 million worth of XRP and EOS of its holdings. Some have speculated that it may be an inside job.

Become Accountable and Improving Reputation

Before the FTC’s recommendation, the mentioned cryptocurrency exchanges had stated, in their respective Terms and Conditions’ sections, that they had no obligation of compensating users and investors unless they were found guilty of intentional or willful proceedings, or negligence.

However, and despite what it was published in its own terms and conditions’ page, Bithumb had claimed after last June’s hacking attack that it would refund all users that lost cryptocurrency assets on that dreadful sequence of events.

South Korean exchanges have been among the most cruelly hit by hackers and cybercriminals, but it all should start by tightening security measures to keep these professionals at bay. In January, just 33% of inspected crypto exchanges in the Asian nation comfortably passed government security audits.

Passing the Test

The proceedings back then consisted on government-approved agencies inspecting more than 20 crypto exchanges from September to December 2018, and there were 85 security aspects to evaluate. Seven of the 21 platforms that underwent the testing passed: Upbit, Bithumb, Gopax, Korbit, Coinone, Hanbitco, and Huobi Korea.

When it comes to the usage rate of cryptocurrencies, to truly reach its vast potential, countries need to make opportunistic regulations and enforce the fulfillment of every security aspect on the exchanges’ part. That way, users and investors will feel more secure whilst trusting their valuable assets to these pages, wallets, and services.

Bithumb has not been the only Korean crypto exchange that has suffered hacking attacks or security breaches over the last calendar year; thus, it is time to offer investors some peace of mind while using local platforms.

By Andres Chavez

Mitsubishi and 100 Manufacturers in Japan Will Use Blockchain to Improve their Productivity

Maria Rodríguez
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Mitsubishi and 100 Manufacturers in Japan Will Use Blockchain to Improve their Productivity

The exchange of manufacturing data would be about product design and quality inspection information to share technological knowledge

Japan is characterized as a country that works together to grow and some of its companies want to follow this example by sharing production data related to how to improve their efficiency, information they hope to share through a blockchain network.

The development of this platform in which some 100 Japanese companies would participate, seeks to exchange and store information in a secure manner, with the opportunity to decide how much to share and even at what price. Additionally, it seeks to prevent companies that are the competition from accessing the aforementioned data if it is not desired.

Mitsubishi Electric, a leading worldwide manufacturer of electrical and electronic products, and Yaskawa Electric (one of the leading suppliers of AC servos, CNC controller systems, and robotics) are among the 100 Japanese manufacturers that will share production data using a blockchain platform, according to what Asian newspapers reported recently.

This objective would be possible since blockchain allows identifying the parties involved in different types of operations and giving access only to those who are allowed.

Until now, manufacturers have protected the data in their factories, since it contains technical knowledge directly related to competitiveness. However, some companies have changed their opinion and now consider that sharing that data in a secure manner will reinforce their performance. Previously, these companies have worked by their own to experiment with new technologies in their factories. Now, they would work together.

Growth of the Manufacturing Sector

The project would start in the spring of 2020 and will be overseen by the Industrial Value Chain Initiative (IVI), a group of manufacturers that started promoting the Internet of Things (IoT) in Japan in 2015.

“Blockchain is expected to reduce the risk of data leakage compared to the management of information on servers, as well as it would reduce operating costs”, part of the statement says.

Among the possible participants are DMG Mori, Mitsubishi Electric and Yaskawa Electric. DMG Mori and other machine tool manufacturers would join those and other companies to share some production data to improve overall efficiency.

For this reason, this project could attract not only large corporations with advanced production technologies from Japan, but also smaller players from other regions.

Only useful information would be shared to accelerate their productions. For example, parts suppliers could start mass production faster if an electronic products manufacturer shares the data of computerized numerical control machines.

If machine tool manufacturers and their customers share equipment usage data, they could better understand how parts wear out and maintain equipment more efficiently. In this way, they can also predict when machines will break down, so parts can be changed in advance and downtime reduced.

The movement follows others in an enthusiastic market for blockchain technology. Blockchain is more than the cryptocurrency transaction support platform. It is expected that this technology help reduces the risk of data leakage, compared to the management of information on the servers and to reduce operating costs not only in the technology industry, but also in the area of ​​providing public services in different regions of the world.

By María Rodríguez

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