Thailand’s Oldest Bank Will Use Blockchain for Cross-Border Payments

Maria Rodríguez
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Thailand’s Oldest Bank Will Use Blockchain for Cross-Border Payments

During the pilot tests, payments between Thailand and Japan were processed in seconds, a process that previously took days. SCB is not going to implement XRP so far

Another important bank decided to venture to use Ripple’s blockchain technology, which seeks to facilitate cross-border payments and execute them in a few minutes. This time it is the oldest bank in Thailand, this is, the Siam Commercial Bank (SCB).

“Send money abroad today at the cheapest rates through Ripple”, that is the attractive announcement that the banking institution published at the beginning of June in its Twitter account. With this comment, the first rumors about this bank’s plans to use the Ripple blockchain platform started.

The financial institution was conducting proofs for the issuance of payments between Thailand and Japan. These payments made through blockchain technology were processed in just seconds and not in several days, as is the case when using traditional media. This blockchain advantage makes it possible to reduce costs.

The Thai bank will be based on the blockchain technology developed by the company located in Palo Alto. The systems were going to use its native XRP token, according to a SCB’s tweet. But the institution changed the information and deleted that tweet on June 7th.

“We are going to use Ripple’s blockchain technology. XRP system will be announced very soon. Please follow our official schedule on social media again”, SCB said on Twitter, last June 5th.

“We are so sorry for the previous information of the previous post. As of now we have no plans on using XRP”, the institution affirmed this Friday 7th. Instead of this, the blockchain development itself continues.

Banks of the World with Ripple

Ripple already has a presence in Thailand. Since 2014, Thai financial institutions have set their sights on the use of blockchain technology and cryptoactives under regulatory policies, which would be consistent with the expectations of banks and cryptoactive investors.

In fact, the nation promoted the creation of a 22-member coalition called “The Blockchain Community of Thailand” in order to explore the uses of blockchain technology. In addition, last February, Ripple partnered with UAE Exchange (a United Arab Emirates based company) and Unimoni; two remittance companies that also sought to take advantage of this technology. The Bank of Ayudhya, known as Krungsri, recently became the first bank in Thailand to use a blockchain to conduct international transfers in real time.

At least 200 financial institutions around the world have already incorporated Ripple’s blockchain technology to conduct transactions. Among these banks that offer cross-border payments based on Ripple’s blockchain are the Saudi British Bank and the private bank of India Federal Bank, which uses RippleNet technology, so that those who do not live in the Asian country can transfer money to their families in real time.

However, not all financial institutions have been successful when testing Ripple’s technology. In 2018, Western Union CEO, Hikmet Ersek, said that, after using XRP-based integrations for six months, the payment service had not yet seen a benefit. This could happen because of not doing the necessary promotion to the tool or because, perhaps, the users are preparing to adopt cryptoactives and handle them properly.

The truth is that Ripple maintains its objective of transforming the international payment industry. This is of paramount importance since a decision made, such in this case, by an institution like the Siam Commercial Bank could motivate more establishments to use distributed ledger technology in that country.

By María Rodríguez

SL Benfica, Portugal’s Top Soccer Team, Becomes the First Prominent Club to Accept Crypto Payments

Andres Chavez
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SL Benfica, Portugal’s Top Soccer Team, Becomes the First Prominent Club to Accept Crypto Payments

When an organization or enterprise accepts several payment methods for selling its goods or merchandise, it opens up new horizons in potential sales and profit. However, if it really wants to reach the next level of success in marketing, it needs to enable cryptocurrency payments, as it will allow it to be available for a whole new portion of the market.

And now, even the soccer world has been caught up in the crypto storm: a prominent Portuguese club, SL Benfica (one of the most popular not only in its country, but also in Europe) is the first of its kind to accept payments in digital assets, following a brand-new alliance with the UTRUST ecosystem.

At the Elite of Portuguese Football

Benfica, Portugal’s most successful club at the pitch, has been the home of some of the best players in the history of the sport. It had Eusebio, the “Black Panther,” at its peak in the sixties, and it has won the Primeira Liga (the nation’s top flight division) a record 37 times. It also lifted the European Cup in 1961 and 1962.

More specifically, SL Benfica will now accept cryptocurrencies as a means of payment for people to acquire merchandise, letting fans purchase goods with Bitcoin (BTC,) Ethereum (ETH,) and the UTRUST token (UTK.)

The decorated club began to accept crypto as a payment method with the intention to “buy match tickets and the entire range of Benfica products in a cheaper, safer and faster than any other online payment method,” according to an announcement from the team.

The Portuguese team, which is a proud member of what sports media call the “Big Three” from Portugal (along with the country’s other top clubs, Sporting Clube and Porto) explained that the decision of start accepting crypto payments was based on a need to improve and upgrade its e-commerce strategy, as well as expanding global exposure.

Engaging with New Audiences

The decision holds the potential of helping Benfica reach new levels when it comes to engaging with new audiences and helping them acquire merchandise and even tickets for games. The fan base of the squad is currently 14 million people.

Another goal of Benfica is to improve customer experience and turn into an appealing option for cryptocurrency holders around the world. “We recognize that many of our supporters are now digital users first so we want to be ahead of the curve when it comes to adopting novel technologies and giving our supporters the best online experience,” according to S.L. Benfica CEO, Domingos Soares de Oliveira.

Adding crypto forms of payment to the equation is also helpful in dealing with some of the common issues of credit cards, such as chargebacks and fraud. The funds will land in Benfica’s bank account in fiat the same day of the purchase: “We look forward to accepting our first cryptocurrency payment,” the club’s CEO observed.

De Oliveira said that the club intends to attract “tech-savvy supporters and cryptocurrency holders in Portugal and abroad closer to its home ground of the Estádio da Luz.”

On the other hand, Nuno Correia, which is the Co-Founder and CEO of UTRUST, made it clear that the alliance represents an evident step forward in the financial landscape and the blockchain ecosystem in general.

The executive stated that “this partnership with Portugal’s number one football club marks a major milestone for UTRUST and the blockchain ecosystem as a whole.”

By Andres Chavez

EU Suggests Malta Optimize its Tools against Crypto-Crimes

Maria Rodríguez
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EU Suggests Malta Optimize its Tools against Crypto-Crimes

The organization fears that cryptocurrencies can become a possible weak link in the fight against financial crime and money laundering. It recommends to reinforce the vigilance in these processes

In early April, Malta’s Financial Services Authority (MFSA) approved 14 licenses to promote the registration of blockchain companies, with the aim of becoming the first country with a government agency dedicated to the registration of companies through the use of blockchain technology.

Among other approaches to this technology, the Government of said country granted 19 scholarships valued at US $ 179,000 for blockchain training that the country will be able to take advantage of in the future, by offering PhD degrees to professionals who would specialize in blockchain.

In response to all the steps that this island has taken to adopt distributed ledger technology, the European Union (EU) affirmed that these measures, beyond attracting investors or not, can become a possible weak link in the fight against financial crime and money laundering.

In this regard, the European Union recently spoke about this matter and expressed the opinion that Malta needs to improve its current resources and be vigilant against possible financial crimes in the region as a result of the popularity that cryptocurrencies have obtained and the bad intentions of some users, according to what local media in Malta reviewed.

In a letter addressed to the member states of the international body that report how to spend or invest EU funds, the European Commission warned that the growing cryptocurrency sector in Malta is a possible “weak link” in the continent’s fight against financial crime.

“The Commission, in its recommendations to member states for the use of EU funds, said that the size of Malta’s financial and gaming sector, and the efforts to attract cryptocurrency operators require effective enforcement against money laundering”, says part of the statement.

According to the political entity, it is necessary to tackle the possible conflicts of interest that the government of Malta has with respect to the use of cryptocurrencies. The purpose of all the aforementioned is to avoid any possible attempt of corruption. Another point that the EU highlighted is that tax obligations should also be evaluated, given the openness to these new digital assets and their different characteristics from those of traditional or fiat money.

“In addition, the Economic Crimes Unit of the police does not have enough personnel. In this context, it is important to unite a strengthened legislative framework with a suitable and complete implementation”, added the Commission.

Meanwhile, Malta continues its path to support cryptocurrency and blockchain companies. Due to this disposition, important companies in this industry, such as the Binance exchange, have turned the country into an ideal place to develop their activities.

However, the country’s authorities have also assured that they are becoming familiar with the characteristics of the blockchain sector. To achieve this goal, they have created research teams to be informed about the uses of this technology and, as they say, the government has issued information for users, such as the risks associated with the investment on cryptoactives.

Malta has been one of the states that has shown more interest in blockchain technology worldwide. Even more than a year ago, Joseph Muscat, Prime Minister, said that Europe should become the “Bitcoin continent”, something that Malta has assumed in every way.

The security measures to combat the cryptographic crimes in that country are in question whilst the questions of the EU could generate a regulatory framework that would try to protect the Maltese citizen, whilst the country still opening the doors to the new technologies that are being born.

By María Rodríguez

Exchange Company Kraken Pays Salaries to its Employees in Bitcoins

Andres Chavez
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Exchange Company Kraken Pays Salaries to its Employees in Bitcoins

Workers are interested in Bitcoin after the apparent end of the bearish market. The payment represents 30% of all the employees. Some people think the payment should not be calculated with dollars

In a publication shared on Kraken’s Twitter account, the crypto-exchange company informed that, last month, it paid its employees the last salary in cryptocurrencies. Specifically, in bitcoins.

The prestigious company, based in the United States, agreed with its employees to pay their salaries in bitcoins (BTC). In this sense, at the end of last month, it executed the payroll payment of 250 employees with cryptocurrencies.

“We respect the search for solid money, but @PeterSchiff is wrong when he says that there is no way for people to work for wages paid in Bitcoin. Kraken paid 250 salaries in Bitcoin in April and more employees opt for cryptography every month”, the message says.

These statements were issued on Twitter, after the CEO of Euro Pacific Capital, Peter Schiff, criticized, during an audiovisual interview, the possibility that companies pay their staff with cryptocurrencies, assuming that workers would not accept it. “There is no way for people to go to work for wages paid in bitcoin”, he said.

About the statements of Kraken, it was an example the increase in the price of Bitcoin, some years ago, as a form of investment. It was not thought that, some years later, a worker will receive one hundred percent of his salary in bitcoins.

As a direct response to the tweet, Schiff defended his position and argued his opinion with a question: “Are wages a fixed Bitcoin quantity, or do they have salaries in dollars and pay the equivalent in bitcoins in each pay period? If it’s the last option, then it does not count”, he said. In his opinion, to give value and recognition to Bitcoin, it should be considered to establish a price in bitcoins, without using dollars as a reference.

Currently, the Kraken Company, dedicated to the exchange of cryptocurrencies through the platform, employs more than 800 people. Therefore, when it pays 250 employees their salary in bitcoins, it represents, approximately, 30% of all their work machinery.

Although this represents an important advance or something that should be considered valuable, it is still too early to say that the alternative is being adopted on a large scale or well accepted by many workers. It is considered that the measure was accepted with pleasure by these workers due to the end of the bearish market of cryptocurrencies, which allows them to revalue their bitcoins as savings and investment.

It should be highlighted that there are many factors why many companies do not pay their workers with cryptocurrencies, and among these reasons is the constant volatility of the cryptocurrency market. Especially in cases of the cryptocurrencies that have had vertiginous and radical changes like Bitcoin.

In The United States, a portion of the salary must be received in cash or checks. In other countries, the situation must be evaluated, since the employer has to consider how taxes would be applied to wages, and how the employee would use his payment in real markets to attend his basic needs.

By María Rodríguez

Avenir Suisse Urges Switzerland’s SNB to Create National Cryptocurrency

Andres Chavez
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Avenir Suisse Urges Switzerland’s SNB to Create National Cryptocurrency

National cryptocurrencies are, without a doubt, gaining momentum. A handful of countries are either already introducing related projects or toying with the idea of doing it. They may be controversial for several reasons, but these assets are also seeing their popularity increase for a reason.

In this case, one of Switzerland’s top think tanks, Avenir Suisse, released a report this week prompting the Swiss National Bank (SNB) to start laying the groundwork for a national cryptocurrency. For reference, a think tank refers to a group of experts that provide advice and ideas on particular political or economic situations or problems.

“Blockchain after the Hype”

The report published by Avenir Suisse is called Blockchain After the Hype. It talks about an economic model based on the world-changing technology, proposing the idea of coming up with a coin named “franc token,” which would be controlled by the SNB.

The innovative model presented by Avenir Suisse plans to turn Switzerland into a “blockchain nation,” whilst developing a stablecoin. The reasoning behind the think tank’s project is trying to improve the country’s financial sector by activating and enabling the trade of cryptocurrencies and related assets.

The report states that the project “would facilitate tokenized securities trading if the National Bank and major players in the industry were to drive the development of a Swiss franc token.” Purportedly, the centralized coin will be the avenue for other areas of the financial landscape implementing blockchain technology, including trade finance and new business models.

Expanding Global Market Possibilities

The plan would put Switzerland in the leading positions when it comes to blockchain use in the European continent. It also has enormous potential as a way to expand global market possibilities. The think tank explained that “if it manages to position itself internationally as a pioneer in trading tokenized securities, Switzerland will be able to expand its relatively small capital market.”

Basically, Avenir Suisse wants the nation’s central bank to stop talking and start acting, demonstrating with facts that it is, indeed, willing to use and apply the blockchain technology at a national scale.

For more than a year, Swiss authorities, and more specifically, the SNB, has gone back and forth about the impact of cryptocurrencies and the projects to implement the distributed ledger technology in an effort to develop trading platforms for these assets.

Adapting the Law where Necessary

Avenir Suisse, additionally, pushes for the organization to come up with a set of rules for blockchain and crypto assets, urging the lawmakers to adapt the regulations to said technologies.

“Essentially the law should be changed only in areas where it’s not yet DLT-compatible. But these changes have to be made as soon as possible.” Avenir Suisse says regarding blockchain and cryptocurrencies in Switzerland.

Despite Switzerland serving as the host of the Conference on Cryptoassets and Financial Innovation in recent days, the SNB’s stance regarding the adoption of cryptocurrencies remains neutral.

Avenir Suisse thinks that there is not more time for experiments (Switzerland has been open to testing the blockchain model,) and the moment to start acting is now. The country “now has to take the next step in the development of DLT, morphing from the much-vaunted “Crypto Valley” into a fully-fledged DLT nation,” the group of experts observed.

By Andres Chavez

Blockport, a Netherlands-based Exchange, Goes Bankrupt

Andres Chavez
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Blockport, a Netherlands-based Exchange, Goes Bankrupt

Not everybody in the crypto industry can achieve success, sadly. There are, as it happens in other fields, winners and losers in the everyday interactions that give life to this fascinating world. And, unfortunately, a Dutch crypto exchange was on the losing end this week.

It was reported that Blockport, a Netherlands-based cryptocurrency exchange, has to say goodbye to the industry because of a lack of operating capital. The platform was forced to close its doors, but they claim that they will eventually return.

The Next Web, a specialized news site, was the one that reported that the Blockport cryptocurrency exchange went bankrupt after a failed STO (Security Token Offering.) Blockport BV, which is the official operating entity, was declared as such in an Amsterdam court in recent days.

A Failed STO

The company itself wrote a blog post explaining the situation. In the piece, Sebastiaan Lichter (Blockport’s co-founder and chief product officer) observed that after the failed STO (one that failed to reach its $1.12 million soft cap,) they have decided to drastically scale down their operations and development.

“Though very unfortunate, after one month of running our STO we did not reach the threshold amount of 1M Euro that we set as a softcap. All investors that participated in the STO will therefore receive their investment amount worth of Euro back, and the issuance of BPS tokens will not take place,” the company announced.

“Since our first equity fundraising (STO) round was unsuccessful, we can’t uphold our planned growth trajectory and therefore have to significantly scale down our operations and team,” Lichter said.

In the same line of thought, the executive wrote that “running our operations and platform as-is without a substantial investment is currently not an economically viable and responsible option.”

As per the terms of the STO, investors were offered “more than just tokens,” including a share in the company’s profits, in exchange for a minimum of €500 investment.

The crypto exchange is now unable to create enough revenues to keep performing its operations, and as a result, Lichter states that the team will shift its focus to “expanding the platform with unique and value-adding technological features, that strengthen our business case for a potential future restart.”

Plans to Come Back Stronger

Yes, the company expressed its plans to, eventually; resume providing its services after efforts to prepare a restart were announced. “We still see a lot of opportunities in this industry and have built a top performing trading platform that many people love to use and which has had almost zero downtime or issues since we launched it in the summer of 2018.”

“We are already in touch with several parties that have shown interest in supporting a restart of Blockport in the future. However, the form or business structure is still unknown and subject to ongoing negotiations,” according to the blog post.

Users of the platform were notified in advance to remove any remaining funds they had before the shutdown. Additionally, the post stated that they still could withdraw by emailing the support department.

By Andres Chavez

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