India Central Bank Ready To Start Experimenting With Blockchain

Andres Chavez
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India Central Bank Ready To Start Experimenting With Blockchain

     Blockchain fever isn’t showing any signs of slowing down. 2018 has been the year of consolidation when it comes to blockchain-based projects and Initial Coin Offerings (ICOs,) which bodes well for the future, given the fact that 2017 was the year of the explosion of these ventures. Few elements of traditional banking offer the trust and reliability that blockchain can provide, so it is no surprise that businesses want to experiment with the technology.

Governmental authorities are also willing to adopt the blockchain approach to enhance transactions’ security. India has come to realize that blockchain technology offers safety in data storage and transmission, as well as open and transparent network infrastructure, decentralization and cost savings.

The Indian Central Bank is ready to take the next step

According to a report from the Economic Times and other Indian media sources, the nation’s Central Bank is toying with the idea of implementing cryptocurrencies and the blockchain technology, and that it has set up a dedicated unit for this, a few weeks ago. Indian authorities claim they want to improve their knowledge of the subject to see if they can take advantage of the myriad of benefits that it can provide. The report of the Economic Times states that the primary intention of Indian government is to “research” blockchain technology and “to check what can be adopted and what cannot.”

Indian banks and the society, in general, have shown in the past that they remain skeptical about the success and applications of the blockchain approach. The subjects are, still, seen as “taboo” by some communities, mainly because the Reserve Bank of India (RBI) banned cryptocurrencies from industry’s commercial establishments and businesses four months ago.

There have been advances in the field, though. Recently, the country started to allow cryptographic tokens, although cryptocurrencies and endorsement of Bitcoin are still absent from the financial landscape in the country.

The sources, which preferred to remain under anonymity, are optimistic about the country authorities and financial institutions opening their eyes to the benefits of cryptocurrencies and blockchain technology. RBI seems eager to explore greener pastures.

Adjusting to a new reality

The publication expresses its concern regarding the country’s ability to adjust to the current trends, saying that a central bank should be open to creating new laws and regulations that foster the application of cryptocurrencies and blockchain.

Another country that is lowering its guard regarding the subject is Iran. Iranian political authorities have banned cryptocurrencies, but they have expressed their desire to take it back given the model’s success.

Each day, more banks and financial institutions are implementing blockchain solutions to enhance productivity and trustworthiness in their operations. The primary idea is to streamline processes and cut costs, but it is also possible to create new and more modern business models. UBS, Credit Suisse, and Banco Santander are among the banks and financial organizations that have successfully experimented with Blockchain solutions. The potential is evident: according to a study conducted by Accenture, the banking sector is expected to save nearly $20 billion by 2022 through Blockchain implementation.

by Andres Chavez

State of Ohio Interestet in Blockchain Technology

Samuel Paz
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State of Ohio Interestet in Blockchain Technology

     In the state of Ohio, legislators stated that they are interested in blockchain technology, but that they are still studying the alternatives.

This Thursday, Ryan Smith, leader of the Ohio House of Representatives, organized a meeting between a group of legislators, business owners and academics from various branches to discuss the state’s interest in blockchain companies and developers. Although no law related to blockchain was proposed, Smith said they saw this technology as widely useful to the public, in matters like, birth certificate storage, marriage licenses and a myriad of areas where information needs to be more secure.

Smith said that by working closely with universities, students would have valuable experience with this technology before graduating and starting their careers.

“Since this is so new and is just the beginning, we can position Ohio at the forefront,”

said Smith, asserting that the intention behind this initiative was to turn the ‘Buckeye State’ into a niche to attract start-ups of this technology.

The state of Ohio would have already passed a law that sought to treat information stored in blockchain networks and smart contracts as electronic records in an effort to make the state a secure bridge for blockchain technology. That measure was subsequently approved by Governor John Kasich, with Ohio now one of the first states to recognize the legal status of information stored in blockchain technology.

by Samuel Paz

Canadian Government Launches Ethereum-based Explorer

Samuel Larreal
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Canadian Government Launches Ethereum-based Explorer

     According to a recent press release, The National Research Council of Canada (NRC) has launched a blockchain explorer built on the Ethereum network. The public organization has named the new blockchain explorer application, Catena.

The new blockchain-based application was developed by Bitaccess, a software services provider that powers Fintech businesses in over 15 countries, and will be hosted by its Industrial Research Assistance Program on the InterPlanetary File System (IPFS). This explorer makes the hosted data always accessible and immutable, as it is organized in decentralized locations, which might subject it to site failure or access issues in its initial phases. According to Bitaccess, the explorer application is similar to a search engine that allows users to instantly “search the Ethereum blockchain” for “published grants and contribution data” stored on the network through Catena.

According to Moe Adham, co-founder of Bitaccess, in a statement,

“We built the Catena Blockchain Suite as a simple, low risk, application for institutions to get introduced to blockchain technology. So far the reception has been terrific”.

Using the IPFS function, users will be afforded a “peer-to-peer method of storing and sharing data” in a distributed method that makes them “unalterable” and preserved “far into the future” long after the original web host has gone offline.

According to the NRC official statement,

“These are early days, but NRC IRAP’s experiments with blockchain are expected to provide constructive insight into the potential for this technology and how it may be used for more open and transparent operations for public programs.”

Earlier this year, the NRC launched the Canadian government’s first live trial of public blockchain technology with the goal of building a transparent administration of government grants and contributions.

According to a Catena official statement,

“Given the nature of public blockchain technology, data can never be removed or edited. For this reason, it is prudent to only publish plain-text data which is completely public, and of the public interest. This is very low risk for public institutions, which have to adhere to strict privacy, and right-to-be forgotten restrictions. While public disclosure data is already available through other means, this data is now embedded in a blockchain and signed using secure cryptography ensuring its authenticity. Not only that, it cannot be changed in the future and serves as an excellent record-keeping utility.” Since the launch, NRC IRAP has been exploring ways to expand its blockchain experiment and reliably public shared data. At the time of the launch, the government was able to use the blockchain to publish information on “new and amended Contribution Agreements with firms in real time.”

Adham says his company’s goal is to help institutions,

“become fully transparent”

and help constituents participate in the

“verification and validation of public information.”

 

by Samuel Larreal

South Korean Senate Disccusses ICOs & Cryptocurrency

Samuel Larreal
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South Korean Senate Disccusses ICOs & Cryptocurrency

     On Monday, an extraordinary session was held in the South Korean National Assembly where the different committees and political parties discussed measures in order to promote and regulate the blockchain technology industry and related industries, including cryptocurrencies and the creation of regulations for Initial Coin Offering (ICOs).
According to local news outlet, Business Korea, during Monday’s session the members of the Special Committee on Science, Information Technology and Telecommunications (IITT) of the National Assembly, asked the IITT Ministry to create specific guidelines that new ICOs must follow to protect investors. This measure will go hand in hand with the organization of a special group in charge of regulating and encouraging new decentralized projects.

In addition, a meeting will be held to discuss the implementation of blockchain technology within their organizations. The organizations, which have academic and industry experts, believe that this technology will help political organizations to work more efficiently by reducing structural costs. The discussion is expected to be attended by industrial and academic experts including Blocko director Kim Jong-hwan.

As Crypto World Journal previously reported, in the coming days, the assembly will also discuss a proposal to designate the island of Jeju as a special area for blockchain technology and cryptocurrencies and maintain South Korea’s place among the countries with the greatest cryptocurrency exchange rates. With more than 620,000 inhabitants, a tourist economy, and commerce on its naval bases, the island may become a good target for cryptocurrency investors.

It is unknown when the National Assembly will have specific laws for the regulation of ICOs. The Ministry of Science, Information Technology and Communications is preparing an investigation on the capacity of the exchanges currently running in the Asian country in order to deal with the current vulnerabilities.

South Korea is beginning to take steps to prepare for a future where cryptocurrencies and blockchain technology can co-exist with traditional systems. It has not had the best of luck since several exchanges in the country have suffered multiple cyber attacks and ICOs were banned last year. However, in May they lifted the ICO ban and less than a week ago they stopped rating the exchange as venture companies.

According to Bareunmirae Party lawmaker Jung Byung-kuk who is preparing a discussion on ICO guidelines, too –

“The South Korean government prohibited all types of ICO in September last year and has come up with no related policy since then,” said an industry insider, adding, “The entire industry is paying much attention to how its stance will change through various discussions in the National Assembly.”

 

by Samuel Larreal

World Bank & Australia Arrange World’s First Blockchain Bond

Samuel Larreal
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World Bank & Australia Arrange World’s First Blockchain Bond

The World Bank and The Commonwealth of Australia are in the process of arranging the world’s first blockchain bond, according to an official statement published by the World Bank last week.

The international organization has chosen Commonwealth Bank of Australia (CBA), the multinational financial institution with businesses across New Zealand, Asia, the United States and the United Kingdom, to create a new bond initiative, called Bond-i, (which stands for Blockchain Offered New Debt Instrument). It is also a casual reference to the iconic Sidney touristic spot Bondi Beach. According to the World Bank, this important partnership will create the first bond in the world to be completely created, allocated, transferred and managed with blockchain technology. The bond is projected to raise between $50-$100 million, and profits obtained will go towards sustainable development initiatives tied to the World Bank’s Reconstruction and Development division.

Once launched, the Bond-i will be issued and distributed on a private Ethereum-based network, which according to CBA, “has the necessary capabilities to run the project”. This platform will be exclusively managed and operated by the Australian institution and the World Bank. Although the platform will be initially run in an Ethereum network CBA has previously stated that it was open to other options in the future as the project develops.

The World Bank, which operates as a global development cooperative owned by more than 180 nations, has previously set and eye on the progress of blockchain technology and cryptocurrency, globally, looking for ways to regulate and use its multiple applications to optimize processes and modernize current economic structures. According to a CBA and World Bank joint statement,

“Blockchain has the potential to streamline processes among numerous debt capital market intermediaries and agents. This can help simplify raising capital and trading securities; improve operational efficiencies; and enhance regulatory oversight”

CBA has often been at the forefront of financial innovation. The Bank issued the first globally traded and settled bond in 1989, as well the first electronic bond in 2000, now, 18 years later, the Australian institution will set the course for the years to come, utilizing blockchain technology to optimize bond processes. According to Arunma Oteh, World Bank Treasurer,

“Since our first bond transaction in 1947, innovation and investor satisfaction have been important hallmarks of our success with leveraging capital markets for development. Today, we believe that emerging technologies, equally offer transformative, yet prudent possibilities for us to continue to innovate, respond to investor needs and strengthen markets. We are therefore delighted that after working with our information technology colleagues and the Commonwealth Bank of Australia over several months, that we are now in a position to launch our first blockchain bond transaction. CBA’s commitment and Microsoft’s wealth of experience have been instrumental to achieving this historic milestone. Our sincere appreciation to our pioneer blockchain bond investors, who are partnering with us on this transaction because of our common desire to champion greater efficiency, and transparency as well as more robust issuance processes. Our goal is to continue to harness innovation for the benefit of markets and our mission of ending poverty and boosting shared prosperity.”

 

by Samuel Larreal

Jeju Island The New ICO-Friendly Blockchain Hub

Samuel Larreal
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Jeju Island The New ICO-Friendly Blockchain Hub

Jeju Island will become the new ICO-friendly blockchain hub, despite the South Korean ban.

Jeju, is the largest island off the Korean Peninsula. It is the country’s most popular holiday island. Over 400 kilometers south of Seoul, the self-governing province sees a large amount of domestic tourists each year.

The island is currently proposing a plan to become a new blockchain-haven in the region, where initial coin offerings (ICOs) would be allowed despite the ongoing ban in the mainland.

According to local news outlet, JoongAng Dailyon, Jeju’s governor has formally proposed that the central government of South Korea designate the autonomous province as “a special zone for blockchain and cryptocurrency” in its interests in becoming a hub for the blockchain industry. Governor Won Hee-ryong made the proposal during a meeting with high government officials including Kim Dong-yeon, Korea’s finance minister and deputy prime minister for the economy as well as other law-makers last week.

Startups in Jeju’s Island would have no extra charge to hold ICOs, as Governor Won indicated last Monday. This policy would make of the region an attractive destination for domestic projects seeking cryptocurrency fundraising after South Korea’s financial regulators issued a ban on the blockchain sector in September 2017.

Governor Won stated that,

“Entrepreneurs looking to innovate should be allowed to raise funds through cryptocurrency.”

According to Juju’s Governor’s statement,

“Is necessary the need to quickly allow blockchain and cryptocurrency firms to operate without crippling restrictions, for Korea to become a leader rather than a consumer in the new global industry (…) Blockchain can cut costs, provide stable transactions and essentially has the potential to become a game changer that could alter the ecosystem of the internet platform industry,”

Won has reportedly expressed his intentions for the island to become a blockchain hub much like Malta, it remains to be seen if the central government allows the economic policies despite its stance on cryptocurrencies. The provincial government is also in the process of establishing a department

“dedicated to developing the blockchain industry on the island,” an official reportedly stated, hinting it would “become more materialized by the end of this month.”

Meanwhile, some lawmakers in South Korea’s mainland are also hastening legislation to regulate the cryptocurrency sector and overturn the current ban to effectively legalize ICOs.

 

by Samuel Larreal

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