n A Dublin-headquartered startup has partnered with the Irish Red Cross to use blockchain technology in a new app that improves transparency for charitable donationsn
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Tether Didnt Do a Great Job on Transparency, Claims Investor Mike Novogratz
n Tethers transparency shortcomings highlighted by investor and crypto bull Michael Novogratzn
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Novogratz Criticises Tether’s Lack of Transparency, Responds to Roubini
The famous Bitcoin proponent and billionaire investor Mike Novogratz has criticised the stable-coin U.S. Dollar Tether (USDT) for failing to provide a trustworthy service for users.
The Galaxy Digital Holdings Ltd. founder also responded to Nouriel Roubini’s scathing attacks on cryptocurrency last week.
Novogratz Prefers Gemini Dollar to USDT
Novogratz stated in an interview that the stable-coin U.S. Dollar Tether has only itself to blame for users losing confidence in it.
The tool that is largely used by cryptocurrency traders looking to exit markets in anticipation of price declines recently lost its peg to the dollar value. It has traded for most of the week between 92c and 97c. However, on some exchanges, the supposedly stable coin reached as low as 85c.
U.S. Dollar Tether has spent much of its history shrouded in mystery. Although it has strong links to exchange platform Bitfinex, little is known about the company’s banking relationships. According to Bitfinex, Tether is backed with an equivalent amount of U.S. dollars in a bank somewhere in the world.
However, since the account provider is under question, there is great speculation in the cryptocurrency community that Tether is operating a fractional reserve system of sorts. Some believe that the tokens with no backing whatsoever are being used to prop up the price of Bitcoin and other digital assets.
Novogratz spoke to Bloomberg about the rapidly diminishing market capitalisation of Tether at a conference in Frankfurt on Wednesday. He stated that it was the fault of those behind Tether that traders had lost confidence:
“I think Tether didn’t do a great job in terms of creating transparency.”
The billionaire investor went on to state that he would prefer to see more people to switch to using the fully audited Gemini Dollar, launched by the Winklevoss-owned exchange platform of the same name. He cited the fact that Gemini make no secret of their banking relationships and that the funds backing their own stable-coin are stored with a suitable and trustworthy institution.
Also during the interview, Novogratz addressed the criticism levied at the digital asset space by economist Nouriel Roubini. Last week, Roubini called cryptocurrency “the mother of all scams” at the Senate Banking Committee hearing on cryptocurrency. He also took to Twitter to provide additional scathing remarks.
In response to Roubini, Novogratz highlighted how young the crypto industry is and that custodian solutions from big names such as ICE-backed Bakkt and Fidelity Investments would bring the legitimacy and security needed to see institutional money flood the market:
“You can agree with Roubini on several points, but he is judging cryptocurrencies as if it was a PhD student. Cryptocurrencies are third- or fourth-graders, so still in need to mature… It may take a few years but we should begin to see Bitcoin as an asset class like gold or equities.”
Featured image from Shutterstock.
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Spain to Develop Blockchain Tech Application for Transparency in Forestry Industry
n The Spanish Ministry of Agriculture, Fisheries and Food plans to use blockchain technology to develop the forestry industryn
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Coinbase Release Q2 Accomplishments to Help Provide Transparency into Operations
Brian Armstrong, CEO and co-founder of popular U.S.-based digital currency exchange Coinbase took to Twitter yesterday to announce the publication of what he calls a “quarterly perspective,” which had apparently previously only seen internal distribution.
Armstrong additionally claims that the sharing of this information is an act of community trust-building by way of “transparency.”
Only Accomplishments, Apparently
Entitled What we accomplished at Coinbase in Q2 2018, the self-hosted article lists a variety of positive news and numbers from their most recent period, which provides an informative – if one-sided – piece of reading.
Talent acquisition sits at the top of the list, with over 60 new hires having been made over the period by the California-based company: five of which being executive or senior level leadership positions.
Additionally, Coinbase boasts to have made a number of strategic corporate acquisitions also, naming the likes of Earn.com, Cipher Browser, Paradex, and Keystone. These sit alongside venture investments whose ranks include OpenSea, Elph, TruStory, Reserve, and Rare Bits.
Internal business transformation is another key development mentioned in the review. Beyond establishing and launching two new business units (the Coinbase Index Fund and Coinbase Custody), they also mention a so-called evolution of GDAX by splitting it into two subdivisions (“Coinbase Pro, for active traders, and Coinbase Prime, for institutional investors”).
Coinbase also make clear what they describe as significant contributions to the development of cryptocurrency regulation in the U.S. at both a federal and state level. A point further discussed here.
Other Side of the Coinbase
It could be argued however that these words should be taken with a pinch of salt.
This is a piece of marketing / PR of course, although the same could be said of more qualitative reports such as that published by Ripple earlier this month. Furthermore, despite Brian Armstrong’s citation of transparency, the article is little more than a self-congratulatory list of achievements with no heed of public concerns or comprehensive numbers.
Recent concerns coming from the public include poor customer support quality (which has been addressed: “In Q2, we increased our support team by over 150%, decreased our average time to first response to <10 hours for 95% of incoming volume”), and requests for the addition of the Ethereum Classic (ETC) token to the site’s trading roster.
An even greater concern perhaps, and possibly a source of inspiration for the company’s distracting propaganda publications, are the recent allegations levied against them of insider trading activities surrounding Bitcoin Cash (BCH). It has concluded that it is free of guilt after conducting an internal inquiry.
Featured image from Shutterstock.
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Mastercard CEO Calls Crypto “Junk” for Lack of Transparency and Stability
The president and CEO of Mastercard has called cryptocurrencies “junk,” arguing that they don’t deserve to be considered as a medium of exchange.
Ajay Banga was making his comments at the New India Lecture organized by the Indian Consulate in New York in partnership with the U.S.-India Strategic Partnership Forum (USISPF). His remarks come after the news that Mastercard secured a potentially game-changing digital currency patent capable of allowing virtual and fiat currency transactions on the same network.
Mastercard CEO Ajay Banga Slams Cryptocurrencies for Popularity Among Criminals
Banga’s depreciative opinion in regard to cryptocurrencies is based on the sea of illegal transactions – 95 percent – made with this kind of asset on the dark web, where child prostitution and drugs are commercialized, as well as stolen identities and credit cards.
His speech also tackled the massive market volatility, which is not a recommended attribute as a means of payment, reports Money Control.
“I think cryptocurrency is junk. The idea of an anonymized currency produced by people who have to mine it, the value of which can fluctuate wildly – that to me is not the way that any medium of exchange deserves to be considered as a medium of exchange.”
Predictability and transparency are two key criteria for any currency to be accepted by the people and businesses as a currency, according to Banga, who seems baffled by the hype surrounding the digital currency market. “Why is that the medium of exchange that is being preferred”, he added.
He pointed to a recent indictment of 12 Russian intelligence operatives for interring in the U.S. elections, who are said to have used Bitcoin. “Why civil society would like to put a snake in its backyard and think that somehow the snake will only bite my neighbor, I don’t get it.”
Banga’s comments come days after news that Mastercard is looking to bridge the gap between fiat currencies and cryptocurrencies with a hybrid system. This would incorporate virtual currencies, but allow them to be transacted on traditional payment channels.
The leading global payments and technology company has filed for a patent arguing that its “payment networks may be able to evaluate the likelihood of fraud and assess risk for blockchain transactions using existing fraud and risk algorithms and information that is available to payment networks, such as historical fiat and blockchain transaction data, credit bureau data, demographic information, etc., that is unavailable for use in blockchain networks.”
As Mastercard’s recently filed patents are focused on fighting fake identities, it is not surprising that Banga blasted at cryptocurrencies precisely on the issue of fraud.
Featured image from Shutterstock.
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Tether (USDT) Hires Bank of Montreal Executive, Improvement in Transparency and Compliance
The primary provider of fiat backed digital tokens, Tether, has brought on a Leonardo Real, the former AML quality control manager at the Bank of Montreal, as Chief Compliance Officer (CCO). The hire was reportedly made “in order to create the gold standard for regulatory compliance” in the cryptocurrency sector. Real joins Tether as the company continues to face questions over its accounting practices.
Leonardo Real Joins Tether as CCO
Real is a seasoned professional in the traditional financial industry. His background includes not only his position at the Bank of Montreal but also Bridgeforce Financial, one of Canada’s leading Managing General Agents (MGA). He is an experienced stocks and futures trader and co-wrote the 2016 ACAMS Today Article of the Year, which focused on money laundering risks associated with cryptocurrencies.
In August of 2016 he organized a blockchain, cryptocurrency, and AML event held in Toronto, Canada. The event brought together regulators, bankers, law enforcement professionals, and companies in the space to discuss the future of responsible cryptocurrency management.
Jean-Louis van der Velde, Chief Executive Officer of Tether released a statement about the companies most recent high profile higher, saying, “We are all very excited to introduce Leonardo as Chief Compliance Officer at Tether, as he joins us on what has already been a remarkable journey to date disrupting the legacy financial system. His depth of experience managing AML risk in capital markets, as well as the wealth management and commercial banking sectors, combined with his proven expertise in quality control management and strategy formulation will make him an invaluable asset to our company. All of us at Tether have every confidence in his ability to oversee and manage all relevant compliance issues as we continue to move forward and grow,”
Tether launched in 2014 as the first blockchain enabled platform to pair digital tokens at a 1:1 ratio with fiat currencies. The company contends that it reserves currency to match every contract it generates. A total list of balances issued for all Tether contracts is meant to be available to any interested parties at any time.
Real’s Hire May Put to Bed Questions of Manipulation
Questions about Tether’s reported 2.54 billion worth of backing funds have plagued the company which engaged Freeh, Sporkin & Sullivan LLP (FSS) earlier this year to review bank account documentation and to perform randomized inspections on it’s USD currency reserves. A move which did not quash allegations, as a paper from the University of Texas titled “Is Bitcoin Really Un-Tethered?” in June, and more recently a report by Bloomberg have both accused the company of price manipulation and fraudulent transactions, as reported by Sludgefeed.
Tether has denied all such claims, and by adding an industry expert on regulatory compliance to its officer ranks sending a strong message to both regulators and investors that they are operating with full disclosure.
Featured Image From Shutterstock
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Omnitude: Bringing Transparency to Online Marketplaces
The new landscape of corporate IT involves ever faster adoption of newer technologies, and Blockchain is no different. Companies of all scales are clamoring to see how ledgers, dapps, and Blockchains can give them a competitive edge. But the amount of interest is outstripping the speed of progress in making business-ready crypto-technology solutions: the most exciting solutions are either in the pipeline or unscalable as of yet.
As of now, Blockchain solutions are out of reach for the vast majority of businesses. Development costs and complexity are big barriers to custom solutions development and will remain so for a few years. However, a new Blockchain platform wants to be the middleware layer between businesses (especially eCommerce and ERP systems used) and the wider cryptosphere. Omnitude is currently in development and ramping up for launch.
As the Omnitude team put it in their whitepaper: “Omnitude is a radical concept in blockchain ecosystems. A middleware plug and play blockchain built on Hyperledger Fabric, for use across the whole spectrum of enterprise eCommerce platforms. Utilising Omnitude as an integration layer between existing systems enables rapid deployment of blockchain technology without the need to replace current systems.”
A track record in tracking data
Reassuringly, the team has worked on a range of tech challenges for the past decade, which should mean they have the pieces in place to roll out their roadmap efficiently: “Omnitude is a blockchain project borne out of an existing enterprise eCommerce agency. We’ve spent the best part of the last 10 years putting up with one of the major problems Omnitude will fix, integrations. We’ve spent most of our time integrating and reintegrating systems.
We know this sector inside and out, we have a pool of staff who know this sector very well and more importantly, we have a lot of enterprise customers who cannot wait to get their hands on Omnitude.”
Ecosystem focused
Perhaps learning from the experiences of other Blockchain platforms, Omnitude is targeting partnership early, aiming to have as many partners on board as possible before the launch. Omnitude reached an agreement with one of the world’s leading eCommerce software providers, CS Cart.
CS Cart is one of the world’s leading multi-vendor eCommerce platforms currently being sold in more than 160 countries and powering more than 35 000 stores – this enables Omnitude access to a ready-made base of customers.
They also landed a partnership with one of the leaders of ledger technology in Switzerland to help build the platform with CS Cart. As they put it:
Our collaboration with Swisscom Blockchain AG ensures that the scale of our vision and project is matched by our ability to deliver it…
“If successful, the platform could change e-Commerce as we know it today. With Swisscom Blockchain committing our strength in technical expertise, DLT experience and providing infrastructure strength, Omnitude has chosen one of the strongest technical partners in Switzerland.”
— Waldemar Scherer, Head of Enterprise Blockchain at Swisscom Blockchain AG.
Ramping up for launch
They are currently in the phase of token sale for ECOM, which holds the platform together: “The ECOM token is a utility token launched alongside the Omnitude platform and ecosystem. Merchants, customers, and suppliers will earn and purchase ECOM within the Omnitude ecosystem. The token will serve several primary functions: A native method of settlement between parties to access the system and its resources, an incentive for ecosystem participants to operate and secure the ecosystem, [and] a means to raise funds for the long-term development of Omnitude.” The token sale runs until May 31.
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BoA Official: Lack of Cryptocurrency Transparency Makes it Tough to ‘Catch Bad Guys’
An official at the Bank of America (BoA) believes that cryptocurrencies impede the efforts of law enforcement to catch criminals.
Cathy Bessant, the chief technical officer (CTO) at the multinational financial institution, believes current transparency in banking allows authorities to police transactions in a way not possible with digital currency.
Is Cryptocurrency Actually Easier to Use Than Cash to Evade Authorities?
Cathy Bessant spoke to CNBC’s ‘Squawk Box‘ earlier today. On the morning segment, the official cited a lack of transparency as one of cryptocurrency’s more troubling qualities. She went on to compare the traditional banking system with the financial innovation:
“As a payment system, I think it’s troubling, because the foundation of the banking system is on the transparency between the sender and the receiver, and cryptocurrency is designed to be nothing of the sort. In fact [it’s] designed to be not transparent.”
Based on her stance towards digital currency, Bessant must also has a massive problem with cold hard cash too. Physical notes have enabled thousands of crimes in the past. Of course, the difference between cash and cryptos, like Bitcoin, is that cash doesn’t have an open blockchain that has a record of every transaction that can be used to follow the movement of funds involved in criminal acts. For this reason, she must loathe cash, although I’m sure she uses it daily.
Hypocrisy aside, Bessant continued her attacks on cryptocurrency stating that it impeded law enforcement’s ability to catch ‘bad guys’:
“The way we sort of quote-unquote catch bad guys is by being transparent in the financial moment of money. Cryptos is the antithesis of that.”
Despite Bessant’s cautionary words, those using the services provided by the BoA are still free to invest in Bitcoin. They are, however, excluded from using a BoA credit card to make such purchases. Although some may perceive this as an attack on cryptocurrency, the policy seems a rational stance for a institution providing lending services given the risks involved with such speculative investments at present. Bessant explained how it was in-keeping with their policy on stocks and shares:
“Just like we don’t allow stocks to be purchased on our credit cards, we’re not going to allow cryptos or other currencies to be purchased on our credit cards.”
This latest outcry from a voice associated with the banking industry is hardly the first time that cryptocurrency has been attacked based on its supposed association with criminality.
The likes of Jamie Dimon and Vasant Prabhu previously said that it was only useful to avoid paying taxes or to facilitate drug deals. Despite this, evidence suggests that less than one percent of Bitcoin is currently being used for illegal purposes. Funnily enough, people said that the internet would only be useful to criminals back in the 1990s. Look how wrong they were.
Featured image from Shutterstock.
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BoA Official: Cryptocurrency Transparency Makes it Tough to ‘Catch Bad Guys’
An official at the Bank of America (BoA) believes that cryptocurrencies impede the efforts of law enforcement to catch criminals.
Cathy Bessant, the chief technical officer (CTO) at the multinational financial institution, believes current transparency in banking allows authorities to police transactions in a way not possible with digital currency.
Is Cryptocurrency Actually Easier to Use Than Cash to Evade Authorities?
Cathy Bessant spoke to CNBC’s ‘Squawk Box‘ earlier today. On the morning segment, the official cited a lack of transparency as one of cryptocurrency’s more troubling qualities. She went on to compare the traditional banking system with the financial innovation:
“As a payment system, I think it’s troubling, because the foundation of the banking system is on the transparency between the sender and the receiver, and cryptocurrency is designed to be nothing of the sort. In fact [it’s] designed to be not transparent.”
Based on her stance towards digital currency, Bessant must also has a massive problem with cold hard cash too. Physical notes have enabled thousands of crimes in the past. Of course, the difference between cash and cryptos, like Bitcoin, is that cash doesn’t have an open blockchain that has a record of every transaction that can be used to follow the movement of funds involved in criminal acts. For this reason, she must loathe cash, although I’m sure she uses it daily.
Hypocrisy aside, Bessant continued her attacks on cryptocurrency stating that it impeded law enforcement’s ability to catch ‘bad guys’:
“The way we sort of quote-unquote catch bad guys is by being transparent in the financial moment of money. Cryptos is the antithesis of that.”
Despite Bessant’s cautionary words, those using the services provided by the BoA are still free to invest in Bitcoin. They are, however, excluded from using a BoA credit card to make such purchases. Although some may perceive this as an attack on cryptocurrency, the policy seems a rational stance for a institution providing lending services given the risks involved with such speculative investments at present. Bessant explained how it was in-keeping with their policy on stocks and shares:
“Just like we don’t allow stocks to be purchased on our credit cards, we’re not going to allow cryptos or other currencies to be purchased on our credit cards.”
This latest outcry from a voice associated with the banking industry is hardly the first time that cryptocurrency has been attacked based on its supposed association with criminality.
The likes of Jamie Dimon and Vasant Prabhu previously said that it was only useful to avoid paying taxes or to facilitate drug deals. Despite this, evidence suggests that less than one percent of Bitcoin is currently being used for illegal purposes. Funnily enough, people said that the internet would only be useful to criminals back in the 1990s. Look how wrong they were.
Featured image from Shutterstock.
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