Home Blog Page 54

Brazil Plans IPO For Newly Created State-Owned Digital Bank, Caixa Economica Federal

By
Adam Barry
-
0

The Brazilian government is planning an IPO for its newly created digital bank, Caixa Economica Federal, according to Economy Minister Paulo Guedes. Mr. Guedes made the remarks during a recent virtual event where he also revealed that the country will be joining OECD.

Caixa Economica Federal created to distribute benefits during the pandemic

Caixa Economica Federal is a virtual bank that was created recently during the pandemic. The bank aimed to help in the distribution of financial aid to around 64 million Brazilians. Guedes, who commented during the recent Milken Institute Global Conference, indicated that the country’s central bank was working to lure more new investors. One of the things Guedes is betting on it’s the newly created Caixa Economica Federal bank. It is part of his privatization plans for major business processes in the country.

Like most countries, the Brazilian government has spent significant resources in addressing the socio-economic issues resulting from the pandemic. Most of the country’s financial relief program went towards emergency payments to low-income individuals. This is where Caixa played a vital role in the identification of deserving and legitimate beneficiaries. It also paid benefits to vulnerable families across the country.

Huge customer base motivation behind IPO plans

Guedes said that the initiative created a digital bank with almost 64 million users, thus opening up opportunities. According to Reuters, Guedes believes the digital bank’s large customer base will support plans for an IPO. He said that they digitized 64 million low-income people who were bank-registered for the first time. This is a huge number of worth banks, and the customers are likely to be loyal for the rest of their lives.

Brazilian website InfoMoney indicated that Guedes said that the Brazilian Central Bank will guarantee lower risk to foreign investors. This is if the foreign investors want to pay extra cash for a guarantee, and the central bank will provide that but for a given fee. He added that if they want the extra money, they will get it.

The Bahamas Central Banks Launches its Central Bank Digital Currency, The Sand Dollar

By
Adam Barry
-
0

The Bahamas has become among the first countries globally to launch a central bank digital currency (CBDC) beyond the pilot phase. The Central Bank of Bahamas (CBOB) announced the availability of state-backed digital currency called “Sand Dollar” to users nationwide on October 20.

Sand Dollar available to 393,000 Bahamians

A Project Sand Dollar Facebook post indicated that the CBDC is now available to the 393,000 Bahamians, making the island the first nation to officially start using a CBDC. Sand Dollar transfers will be made through mobile phones, and the good news is that by 2017 almost 90% of the Bahamians were using mobile phones. Recently CBOB said that the CBDC will be interoperable with other virtual currencies across the globe, and around six financial institutions have been approved for distribution of the virtual currency.

The Sand Dollar website indicates that Bahamians can use the Sand Dollar at any merchant in the country. Users will have CBOB approved digital wallets on their mobile phones, and the transaction fees are very low. NZIA has been selected by the CBOB to be the transaction technology solutions provider for the roll-out of the Sand Dollar.

CBOB has been working on the CBDC in the past few years and started piloting the program in 2019 with only 48,000 Sand Dollars on the Abaco and Exuma Islands. The Islands have a population of fewer than 25,000 people. The Sand Dollar is pegged on the Bahamian dollar that is also pegged to the US dollar.

Sand Dollar to transform banking in the archipelago nation

This revolutionary CBDC will drive more financial inclusion in the Archipelago country of over 700 islands, of which 30 are inhabited. In September, CBOB’s assistant manager of eSolutions Chaozhen Chen said that the virtual currency will provide access to virtual payment or banking infrastructure for unbanked and underbanked residents.

Bahamas is not the only country that is progressing with its CBDC program. China is also piloting its digital Yuan with around $1.5 million giveaway with Cambodia’s Bakong virtual currency expected to be operational in the coming months.

Ebang Expresses Interest To Acquire New Zealand Firm For Setting Up Digital Asset Financial Service Platform

By
Adam Barry
-
0

Chinese Bitcoin mining equipment supplier, Ebang International Holdings Inc. (NASDAQ:EBON) has announced the signing of an Expression of Interest Tender Letter for the acquisition of a 100% stake in a New Zealand financial firm. The acquisition will be part of the company’s expansion plans that will fill a unique niche in the crypto sector by setting up a trading platform.

Ebang to establish a digital asset service platform in New Zealand

The firm offers generic and wholesale financial brokers and wealth management services and will be for establishing a local digital asset financial service platform. According to Ebang representatives, the potential deal will be subject to negotiation of a definitive agreement between the parties, and the acquisition is not yet completed. According to the company, there is no assurance that they will enter a definitive agreement, or they will consummate the proposed transaction in time.

Consummation of the transaction as per the Tender Letter will be subject to various matters, including negotiating a definitive agreement among the parties. It will also be subject to meeting closing conditions provided in the agreement and requisite corporate and related approvals.

The company’s CEO and Chairman Dong Hu said that they are leveraging their blockchain expertise and recent expansion in Canada, Singapore, and New Zealand. Hu said that they have taken a huge step towards the goal of building a licensed and internet-based trading platform that offers convenient, innovative, and professional trading services.

Ebang listed in June 2020

Ebang, which went public in June 2020 on the Nasdaq, became the second mining equipment manufacturer listed on the US exchange. Following the listing, the company plans to set up several crypto-related services that include crypto exchange and mining farms, pools, and digital asset financial service platforms.

The company launched in 2010 to offer communication network access devices and equipment, forayed into the cryptocurrency sector in 2014. By 2016 it had started selling its mining equipment. Currently, Ebang is ranked among the top four mining equipment manufacturers globally alongside MicroBT, Bitmain, and Canaan.

The Central Bank Of Bahamas Is Launching Its Digital “Sand Dollar” Internationally

By
Adam Barry
-
0

The Bahamas Central Bank is planning to take its central bank digital currency (CBDC) project called Sand Dollar international. The CBOB said that the rollout of the Sand Dollar will not be limited to only local transactions.

CBOB to launch its Central Bank Digital Currency on October 20

Bobby Chen, the assistant manager of electronic solutions of CBOB, said that the Sand Dollar is only used domestically. While speaking ahead of the launch of the Sand Dollar Chen added that they are currently working on a solution that will make the CBDC interoperable with other digital currencies globally. The launch for the Sand Dollar has been scheduled for October 20, 2020. It is expected that 6 local financial institutions will be authorized to distribute the CBDC, which can work offline.

Cleopatra Davis, the head of banking at CBOB, said that the interoperability of the Sand Dollar with other wallets is an important strategy alongside integrating it with real-time gross settlement as well as Automated Clearing House. Davis said that this will allow easy movement of the CBDC for and to user bank accounts, thus facilitating fiat currency conversions. He also added that the ability to function offline will be vital as it will enable the Sand Dollar to work even without electricity or cellular network, which is very important.

The Bahamas started piloting the Sand Dollar in December 2019

Also, Davis indicated that API card-less onboarding will be very important in the Sand Dollar national rollout from October 20. He also explained that the process became more important during the pandemic and the advent of contactless payments because it allows Bahamians to access the Sand Dollar without physical contact.

This latest report comes at the back of past reports that indicated that the CBOB was planning to launch its CBDC across the archipelago in October. The government of Bahamas launched the Sand Dollar initiative in 2019, and it piloted the central bank digital currency in the small islands of Abaco and Exuma in December last year.

Former Minnesota Vikings Owner Asked To Forfeit $371 Million As Part Of Plea Deal For Crypto Fraud

By
Adam Barry
-
0

Former Minnesota Vikings minority owner Reginald Fowler has been asked to pay around $371 million as part of the plea deal over illegal money transfers, bank fraud, and wire fraud related to Crypto Capital.

Fowler asked to forfeit $371 million

Fowler’s legal team has indicated that although they are open to a plea deal over his involvement in the alleged shoddy banking practices of Crypto Capital, he is not accepting the provided forfeiture. Crypto Capital is one of the major players in the ongoing court case regarding the failure of Bitfinex to disclose a loss of around $850 million of customer money. According to Bitfinex, the funds were deposited with the company before seizure by authorities in different countries.

Fowler had a deal for pleading guilty of charges against him in which the government insisted that he forfeit around $371 million held in over 50 accounts. According to Law360, his legal team had stated that the January plead deal blew up because it left the former NFL investor on the hook for around $371 million.

In 2019, Fowler was originally charged with illegal Money transfers, fraud, and conspiracy related to Crypto Capital’s shadow banking practices but was later charged for wire fraud. He is accused of operating an unlicensed banking operation related to cryptocurrency trading.

Crypto Capital engaged in shadow banking practices

Prosecutors indicate that Fowler and an Israeli woman called Ravid Yosef tricked banks into opening accounts and funneling millions of dollars via the US banking system on behalf of crypto exchanges. These arrangements allowed them to bypass anti-money laundering protocols applying to licensed institutions. Fowler acted through Crypto Capital based in Panama, and the company is said to have allegedly offered shadow banking services for several exchanges that include Binance, Bitifinex, and QuadrigaCX

The $371 million authorities are asking for is based on the proceeds that fowler generated from his alleged crimes. However, his legal team argues that their client didn’t generate any losses for the victims, and his holdings should not be forfeited.

Investor Group Launches Crowdfunding Efforts To Raise Funds For Lawsuit Against Yearn.finance Founder Andre Cronje

By
Adam Barry
-
0

A group of investors has announced the launch of a crowdfunding initiative through which they aim to raise capital that they will then use to pursue a lawsuit against Andre Cronje, the founder of Yearn.Finance (YFI).

The investor group plans to sue Cronje for the hack of its unfinished and unreleased  Eminence (EMN) protocol. The group which is called EMN Investigation released a statement revealing the launch of the crowdfunding. They also stated that all the proceeds of the crowdfunding will be used towards the lawsuit. They also revealed that the crowdfunding is slated to conclude on November 9.

“As a way to thank you for your donation, we will take a snapshot at the end of the crowdfunding campaign, and airdrop 50% of the supply of a fork of YFI to donators,” the investor group noted in the statement.

The statement also revealed that the investor group also plans to distribute the remaining 50 percent supply to the EMN scandal victims through an airdrop. The group also aims to pursue the creation of a new DeFi system, while making sure that there is no malicious intent.

What we know so far about the hack

The hackers attacked the EMN protocol on September 29, and they managed to get away with $15 million. However, $8 million of the stolen funds were transferred back to Cronje. At the hack time, he stated that he was not prepared to roll out the EMN token at least for another week. One of the arguments that EMN Investigation plans to present during the lawsuit is that Cronje and the other developers that promoted the token should not have promoted it as much as they did without any value generated yet.

Cronje and his team had been promoting the token heavily on social media platforms such as Twitter. However, he has been on a social media blackout ever since the hack, and he claims that it is because he has been receiving death threats. Cronje, however, maintains that development on the platform is still ongoing. His partner Blue Kirby has since deleted his Twitter account.

MicroStrategy To Leverage Ledger Vault To Boost Security Offering For Its Bitcoin Treasury

By
Adam Barry
-
0

MicroStrategy is making headlines after it was reported to be gearing up to start using Ledger’s Vault offering to tap into more security for its Bitcoin treasury worth roughly $400 million.

This is the second major news about MicroStrategy after the previous announcement in August about converting a huge part of its treasury into Bitcoin. This decision has a major impact on the latest announcement because the treasury conversion into the cryptocurrency means that the company needs to boost its security to avoid Bitcoin theft. This is where Ledger’s offering comes in.

Ledger has been making a name for itself in the crypto and blockchain landscape as a consumer-grade hardware wallet provider for digital currencies. However, it also has an enterprise-grade crypto custody offering called Ledger Vault, which has been marketed to MicroStrategy. The Ledger Vault offering is uniquely positioned to help MicroStrategy to achieve robust levels of security for its Bitcoin treasury.

Some of the Benefits that Ledger Vault will provide to MicroStrategy

Ledger’s vice president, Jean-Michel Pailhon, stated that his company’s offering features Hardware Security Modules aimed at efficient and reliable digital asset management. Pailhon also explained that although his company provides custody services, the client will have control. Ledger’s role in the whole process will be to provide back-end support and HSM infrastructure, while the client will control the digital asset custody.

MicroStrategy will dictate which of its company officers will be involved in approving transactions. Part of the high-security measures is the requirement for three signatures to facilitate the transactions. Pailhon also revealed that the private keys that will be used to facilitate the transactions will be stored on an HMS.

Pailhon believes that the custody approach, where the customer has control of the front-end activities, is the right approach. However, he noted that it might present a challenge to companies required by law to go through a regulated custodian. He believes that this should not be a problem for companies that use the Ledger Vault service because they can have a regulated custody service to act as a signee for transactions.

Blockchain Could Solve The Issue Of Moderation In Social Media, Says Aragon Co-founder

By
Adam Barry
-
0

Aragon co-founder Luis Cuende has said that the blockchain that his company is developing could be used in solving moderation issues on social media platforms such as Twitter and Facebook.

The problem of moderation of social media can be solved by blockchain tech

Recently, there has been criticism about the moderation practices that social media platforms are employing, especially from the political class. Liberals have criticized the platforms for not doing enough to censure offensive content while libertarian-inclined constituents criticize them for introducing politically correct censorship. So far, the FBI has charged six people for plotting to kidnap Michigan governor, Gretchen Whitmer. The individuals are said to have coordinated their plan through a Facebook Group.

Twitter CEO Jack Dorsey has previously indicated that blockchain tech will be a game-changer for the internet, and Twitter will not be an exception. Dorsey has been a vocal champion of blockchain tech, and his other company, Square, recently announced the purchase of Bitcoin (BTC) worthy around $50 million.

Aragon’s technology finding more use

Aragon is a company that offers a technology stack for decentralized autonomous organizations (DAOs). So far, the popular decentralized fiancé projects employing Aragon’s tech are Curve, mStable, and AAVE. The company also offers a virtual court framework where contestants stake some crypto before submitting to the decentralized juror’s decision.

It is just like the normal court system where the losing party can appeal to the higher court, and in the case of Aragon, it will be with more Jurors. The loser can eventually take the case into the “Supreme Court.” Most importantly, the Aragon Court is currently in Beta, and so far, only a few basic cases have been settled.

According to Cuende, the moderation challenges that social media sites are experiencing could present a good opportunity for using Aragon’s technology after the tech’s maturity. In Cuende’s view, polarization around the phenomenon comes from the fact that the sites control the outcome constituting censorship. If left to the community, the outcome will appear like moderation.

Japanese Senior Official Says China’s Aggressiveness In Developing A CBDC Is Worrying

By
Adam Barry
-
0

Senior Japanese Banking officials are voicing concerns regarding China’s progress in the development of its central bank digital currency (CBDC), Chinese digital yuan. 

CBDC race heating up

China is taking a first-mover advantage in developing a CBDC ahead of several other central banks globally that are seeking to create their virtual currencies. The race for CBDCs has been spurred by a surge in demand for electronic payment methods as well as growing competition from privately issued digital currencies. However, Japan’s International Affairs vice-finance minister Kenji Okamura is concerned about China’s moves, which will make it gain control over CBDC standards.

Kenji said that Beijing is moving at a relatively fast rate, which means they aim at taking first-mover advantage. Speaking during the Official Monetary and Financial institutions Forum seminar, Kenji said that this is something the world should be concerned about. Kenji said that the first-mover advantage is laying the scheme design standards and a tech platform that will facilitate the mainstream adoption of the digital currency.

China wants to take the first movers advantage

A CBDC that will have wide adoption internationally for payments and trade is likely to erode the dollar’s status as the de facto global trade currency.  According to analysts, this will undermine the US’s influence. The People’s Bank of China is one of the most advanced central banks working on a digital version of its currency. Already China’s state-owned commercial banks have started internal piloting of a digital currency wallet.

According to commentary from PBOC, the country needs to be the first to issue a digital currency as it moves to take the yuan international and minimize dependence on the global dollar payment system. In the commentary, authors indicated that issuance and control of a CBDC could be a new competition battlefield between sovereign nations.

Sweden and the Bahamas are some of the other countries already piloting their CBDCs. Although there is a race in the CBDC launch, Japan doesn’t plan to launch its CBDC soon.

Bank Of Japan Provides Insight On Its Central Bank Digital Currency Expected From 2021

By
Adam Barry
-
0

On October 9, a group of seven central banks in partnership with the Bank of International Settlements published a joint report on Central Bank Digital Currencies (CBDCs) focusing on core features and foundational principles of CBDCs.

CBDCs discussions gaining momentum

This year CBDCs have been a popular topic with several countries showing interest in virtual currencies. One of the countries that have pushed forward with plans for a CBDC is China with its digital Yuan despite not contributing to the report. The country is already piloting its digital currency with around $162 million digital Yuan transactions so far completed.

The Bank of Japan was among the seven group members, and it released a document alongside the report showing its approach to central bank digital currencies from its Japan-centric view. Other central banks involved in drafting the report include the US Federal Reserve and The Bank of England.

The BoJ’s report indicates that Japan will start its several piloting phases for its digital currency in 2021. The testing phases include the development of a test environment for a digital currency and test on the basement functions as a payment instrument. Further, the BoJ report points out that the digital currency’s core feature should be resilient in the face of infrastructure changed by forces Majeure.

Japan wants a CBDC that can be available even during system failure

The report added that considering the frequent natural disaster in Japan, it is important to have offline use during power outages and network or system failures. Japan is susceptible to different natural disasters that include typhoons, floods, tsunamis, volcanic eruptions, and cyclones because of its geographic positioning.

The BoJ report didn’t offer details on how they will provide during disasters. However, there are solutions for bitcoin and other cryptos that address problems of network failures or power outage. Some of the solutions include a Blockstream satellite network that broadcasts BTC transactions through space and Mesh networks based on the long-wave radio transmitter.

1...535455...66Page 54 of 66

EDITOR PICKS

POPULAR POSTS

POPULAR CATEGORY

©