Month: August 2020

Kiffmeister’s #Fintech Daily Digest (08/22/2020)

~ kiffmeister
The case for banning gold mining
Banning gold production has merits and warts. In theory, the idea makes a lot of sense. If something is indestructible, and we only want dollar amounts of it rather than ounces, why the devil are we wasting time and resources producing it? Banning gold production won’t hurt society and we don’t need more of the stuff, and we’d be getting rid of an activity that hurts the environment. As long as we can successfully shift gold mining communities to other forms of employment, then ending global gold production makes a lot of sense.

Crypto forefather David Chaum issues new digital currency
At the August 19 Official Monetary and Financial Institutions Forum central bank digital currency webinar, Thomas Moser from the Swiss National Bank mention a forthcoming joint paper with David Chaum, the inventor of eCash and considered to be a crypto-asset forefather. I haven’t been able to find any public information on that linkage, but it looks like it might be via Chaum’s “xx coin” project, based on the Praxxis and Elixxir platforms, and slated to launch later this year. Here’s a link to the Praxxis white paper: https://xx.network/praxxis-technical-paper-v1.pdf

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Kiffmeister’s #Fintech Daily Digest (08/21/2020)

~ kiffmeister
Apple Buys Startup to Turn iPhones Into Payment Terminals
Apple has acquired Mobeewave, a startup with technology that could transform iPhones into mobile payment terminals. Mobeewave’s technology lets shoppers tap their credit card or smartphone on another phone to process a payment. The system works with an app and doesn’t require hardware beyond a Near Field Communications, or NFC, chip, which iPhones have included since 2014. Samsung Electronics Co. partnered with Mobeewave last year to allow its phones to use the technology.

Crypto Assets of $50 Billion Moved From China in the Past Year
About $50 billion in cryptocurrency assets have left China in the past year, a possible indication that investors are dodging rules that limit how much capital they’re allowed to transfer from the nation, according to Chainalysis. Tether accounted for more than $18 billion of the outflows from East Asia in the period. Tether has become a U.S. dollar replacement for many people in China, with lots of Chinese businesses and merchants, especially those working overseas, now accepting Tether.

East Asia: Pro Traders and Stablecoins Drive World’s Biggest Cryptocurrency Market
East Asia is the world’s largest cryptocurrency market, accounting for 31% transacted in the last 12 months. East Asia-based addresses received $107 billion worth in the last 12 months, which is 77% more than Western Europe, the second-highest receiving region. Much of this can be attributed to the region’s stranglehold on mining activity. China alone controls 65% of Bitcoin’s global hashrate, which means that the majority of all newly-mined Bitcoin starts out at Asia-based addresses, giving the market a massive liquidity boost.

What’s Behind the Meteoric Rise of Chainlink?
Chainlink’s LINK token has experienced a meteoric rise this year, becoming a top-five crypto asset by market capitalization. It acts as a bridge between cryptocurrency smart contracts and off-chain resources like data feeds, various web APIs, and traditional bank account payments. Chainlink has been making partnership and integration announcements nonstop throughout the year, although adversity is no stranger to its path.

Farmers Could Soon Be Hedging Their Risks With Decentralized Weather Data
Arbol, a platform that allows farmers to hedge weather risks, is integrating Chainlink data oracles. With blockchain, settlements and payouts can be instant, whereas in the centralized world, participants may have to wait weeks, if not months. Farmers can hedge against various adverse weather conditions having a negative impact on their crops. They can buy a hedge — for example, if a temperature in their region reaches a critical level, which will trigger an automatic payout. By adding Chainlink’s oracalized weather data feeds, the company’s platform has become more decentralized and resilient.

What Is Ethereum 2.0?
Ethereum 2.0 or ETH2 or Serenity  is the evolution of Ethereum network into the next phase for the performance improvement of Ethereum. The main aspect in this upgrade is the shift of Ethereum’s consensus algorithm from Proof of Work (PoW) to Proof of Stake ( PoS). This will result in the improvement of security, usability and scalability of the ethereum network as a whole. The upgrade will be live in multiple phases, starting with Phase 0 in this year of 2020.

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Kiffmeister’s #Fintech Daily Digest (08/20/2020)

~ kiffmeister
 A Global Look at Central Bank Digital Currencies
The Block Research published a white paper that explores the history, motivations, early technical designs and implementations of the world’s most advanced central bank digital currency (CBDC) proposals. It is based on a review of central bank and international organization literature, plus interviews with various stakeholders, including yours truly (see page 38).

The Federal Reserve And Central Bank Digital Currencies
This Davis Polk & Wardwell LLP memo delivers key takeaways on the Federal Reserve’s recent announcement about its research into central bank digital currency, along with some useful resources. It also places the Federal Reserve’s recent announcement, in a speech by Governor Lael Brainard, in the overall international context.

Algorand upgrade targets legacy financial systems
Comprehensive upgrades to the Algorand blockchain will enable the creation of massively scalable dapps with the capacity to compete with established financial systems at a fraction of the cost. Algorand was built from the outset to drive complex applications requiring speed, scalability, finality, and security – while at the same time being cost-effective. Already nearly 400 companies are using the platform in sectors such as: investing (Republic), asset tokenization (Props), stablecoins (Tether, USDC, MELD Gold), CBDCs (Marshall Islands), gaming (World Chess), insurance (Attestiv) and accounting (Verady).

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Kiffmeister’s #Fintech Daily Digest (08/19/2020)

~ kiffmeister
DeFi’s explosive growth may be overstated, says report
The recent growth of Ethereum’s decentralized finance (DeFi) ecosystem may be significantly overstated, according to a DappRadar. 75% of DeFi’s growth has been fueled by surges in token prices, says DappRadar. When the total value locked in DeFi grew $800 million, the inflation-adjusted increase was just $200 million.
As Ethereum 2.0 gets bogged down in delays, Algorand pounces for DeFi market
DeFi-focused blockchain Algorand is launching smart contract capabilities that will allow DeFi solutions and dApps to be created that are more scaleable than on Ethereum. Specifically it is implementing stateful smart contracts within layer-1. These are more flexible than stateless smart contracts, which require all conditions to be met at once before the funds are unlocked. Stateful smart contracts, one of Ethereum’s strengths, can release funds when a sequence of interactive steps have been taken or conditions met, allowing for more sophisticated DApps and DeFi solutions. Algorand already supports stateless contracts, atomic swaps, and Algorand Standard Assets within layer-1. Algorand also says that its blockchain provides “negligible” transaction fees, a pointed reference to “first-generation” networks such as Ethereum.
Tether on OMG Network could slash Ethereum congestion 15%
Tether announced today the launch of USDT stablecoin transfers on the OMG Network, one of the first viable Ethereum Layer 2 scaling solutions. The launch will bring increased speeds and reduce transaction costs for Tether transfers, currently the number one source of transactions on the Ethereum network. If meaningful volume from Tether transfers shifts to the OMG network, it could generate a much needed reduction in the fees paid to interact with the Ethereum blockchain. The launch of OMG Network was a big step toward a more scalable Ethereum but its effects may not be felt just yet.
Congress, not the OCC, decides what is and isn’t a bank
The Office of the Comptroller of the Currency (OCC) recently announced its pivot to focus a fintech charter on nonbank payments companies. To accomplish this, Brooks claims the OCC has blanket authority under the National Bank Act to define what it means to be a bank. In some eyes this is an overstep of its reach to call anything that touches money a bank, which in the process, preempts state authority. Plus, the courts have previously determined the OCC lacks authority to issue charters to fintech companies that do not receive deposits because, under federal banking laws, the “business of banking” requires receiving deposits. And the court explicitly said that its decision applies nationwide.
YAM prepares for a second life
Yam Finance, the yield farming sensation which aggregated $600M in assets in less than 48 hours before being shut down, is set to see a second life. After $115,000 was donated for a security audit, Yam presented a two-phase rollout to transition the protocol transitions to a fully audited system. In the great DeFi migration, YAMv1 holders will migrate to YAM2 – a 1:1 match of YAMv1 with no rebases in place. YAM expands and contracts (or rebases) its supply twice a day to keep its $1 peg. Once the results of the audit have been implemented, YAM2 will undergo a migration to YAM3 – the final form of the protocol (for now) which incorporates all code updates and re-enables both rebases and community governance of Yam’s treasury in Curve Finance’s liquidity pool yCRV.
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Kiffmeister’s #Fintech Daily Digest (08/18/2020)

~ kiffmeister
Bitcoin is an account, not a token
JP Koning weighs in on the account- versus token-based money taxonomy debate: “Garratt et al are right about bitcoin being an account-based system. But I don’t think that bitcoin also qualifies as a token-based system.”
The OCC’s Crypto Custody Letter Was Years in the Making
The U.S. Office of the Comptroller of the Currency (OCC) announced last month that federally regulated banks could provide services to crypto startups in addition to custody. It turns out the OCC was already leaning toward the move before Acting Comptroller Brian Brooks took the top job at the agency. Indeed, the OCC has been examining the cryptocurrency space since at least 2018 and likely longer, because the very act of writing an interpretive letter typically takes months. Banks that are now interested in branching out into crypto should reach out to their local OCC supervisors if they have additional questions.
The DeFi Fee Explosion: How YAM’s Collapse Drove Ethereum Fees to New Heights
The speculation surrounding YAM draws natural comparisons to 2017’s ICO mania. But this is a more complex version, where speculators need to interact with an increasingly complicated system of DeFi smart contracts. This can lead to unexpected risk and sudden surges in fees, which can make it prohibitively expensive to get in and out of speculative positions quickly. Ultimately, escalating fees can cause mass congestion and lead to cascading effects throughout the network. But speculation often helps drive innovation. DeFi will push Ethereum towards scalability solutions, and developers will likely continue to push the boundaries of what’s possible in decentralized finance. But there will likely also be a lot of damage along the way, especially if DeFi applications continue to launch without proper auditing and precautions.
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Kiffmeister’s #Fintech Daily Digest (08/17/2020)

~ kiffmeister
Money That Rots Like Potatoes, Money That Rusts Like Iron, Hot Money And CBDCs
If CBDCs existed, stimulus payments could have been made with the proviso that they would become worthless within a certain period unless spent on food, rent or other targeted needs. Since CBDCs are programmable, this can be done through a multi-token standard, where the stimulus payments would carry an expiry date and strict control on where the stimulus can be spent. Such forms of money exist today, like food stamps in the US or gift cards that expire. Distributing stimulus to the poor who do not have access to stored cash in a time of unemployment ensures that they spend it.
Central banks should not rush into digital currencies
According to the Financial Times editorial board, central bank time and effort would be better spent on upgrading existing payment networks rather than pursuing digital currencies that, for all their innovation, could create more problems than they solve. In some states, however, digital currencies now look unavoidable. With Libra no longer an imminent threat, central banks should not rush them out. [On the other hand, there are some problems that upgraded payment systems can’t solve, that CBDC may.]
Central bank digital currencies in the interconnected future
With many countries moving towards central bank digital currencies (CBDCs), we can begin to imagine a future where all countries utilise national currency networks, each interconnected to facilitate exchange and trade, as well as many new use cases yet to be developed. While the goals of introducing CBDC networks may vary from country to country, a number of common elements apply, including the synergistic effects of having multiple CBDC networks integrated with one another despite the geopolitical and economic specifics of the countries involved.
Digital Currencies: Public and Private, Present and Future
This paper from Singapore’s DBS Bank takes stock of the latest developments in the world of digital currencies, public and private. Integral developments in the system of payment and settlements are examined. A list of resources on the latest expert-level thinking is provided at the end of the report. We plan to publish quarterly updates on this game-changing field.
The National Bank of Cambodia boosts financial inclusion with Hyperledger Iroha
The National Bank of Cambodia (NBC) partnered with Soramitsu to modernize the country’s legacy retail payments using the Hyperledger Iroha blockchain framework. The project, called Bakong, allows users to transfer money and buy from merchants with a simple smartphone app. Merchants gain a fast, cashless, and secure payments system. And banks can do interbank transfers at much lower cost. A pilot project went live in July 2019 and ran successfully with more than 10,000 users. The next step is to let everyone in the country know that the system is available and working, and launch country-wide later in 2020.
American Express is buying Kabbage, the rising-star fintech startup for small businesses
American Express is acquiring the team and technology of online small business lender Kabbage. Financial terms were not disclosed. The firm’s pre-existing loan portfolio is not included. Its products include lines of credit, online bill payment, cash flow visualisation tools, e-gift certificates, and the ability to centralise funds through a recently launched business checking account. Kabbage has been battered by the Covid-19 crisis, laying off staff and suspending credit lines for some of its customers. However, Kabbage was the second-largest Paycheck Protection Program lender by application volume; it had close to 300,000 approved applications, worth more than $7 billion.
Exploring the potential of supervisory technology
European supervisors are exploring the potential of supervisory technology (suptech) and developing new tools aimed at enhancing everyday supervision. Supervisors are interested in suptech’s potential to make supervision more efficient and proactive, for example by speeding up data collection and analysis. Its emerging importance had become even more evident in the current crisis situation, which has substantially increased remote collaboration and off-site supervision.
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Kiffmeister’s #Fintech Daily Digest (08/16/2020)

~ kiffmeister

 R3 Webinar Recap: Building CBDC–The Race to Reality

Digital currencies issued by central banks (CBDCs) raise a number of questions, ranging from deciding the scenarios in which such changes are desirable, to how they can effectively be implemented. A recent R3 webinar featured 12 leading experts participating in the most advanced CBDC projects in the world, including the IMF’s Tobias Adrian and the BIS’s Raphael Auer. They provided extensive insights into the future of CBDCs and this post highlights the key takeaways. 

In particular, Tobias and Raphael illuminated four different models for CBDC operation. While Tobias focused his discussion on his proposal for a synthetic CBDC, where the private sector assumes the responsibility of CBDC issuance, Raphael focused on three architectures he has identified where the central banks itself issues the CBDC:

  • Direct CBDC: Payments are operated by central banks.
  • Intermediated CBDC: Central banks only operate wholesale accounts, retail payments are operated by the private sector, and central banks have no say in technical innovation.
  • Hybrid CBDC: The private sector operates all payments by default and central banks only act as a backstop.
  • Synthetic CBDC: There are narrow payment banks, which issue highly stable assets backed by reserves they hold at the central bank, which is similar to other stablecoin proposals. In this scenario, the private sector also still operates loans and payments.

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Kiffmeister’s #Fintech Daily Digest (08/15/2020)

~ kiffmeister

Federal Reserve shares details on ‘FooWire’ distributed ledger experiment

The U.S. Federal Reserve published details about a 2019 payments trial involving distributed ledger technology, specifically the Hyperledger Fabric blockchain software. The so-called “FooWire” experiment was designed to test whether the technology is suited for payments application. FooWire was “small-scale” and specifically focused on permissioned capabilities. The network included three hypothetical organizations: a central bank, a government agency, and a commercial bank. Network administrators were responsible for approving and creating accounts and nodes to administer the ledger. The only asset that could be transferred between nodes was an artificial asset called Funds.  

Unpacking the Avit, Avanti Bank’s New Digital Asset Being Built With Blockstream

Avit will be commercial bank money or programmable electronic cash, redeemable at par with a U.S. dollar issued by Avanti Bank. It’s not a security token, or a digital representation of an investment that’s expected to generate returns. Unlike cash, stablecoins are generally issued as intangible assets, which means they aren’t physical or don’t derive their value from contractual claims like stocks and bonds do. Because of this, they have uncertain legal enforceability. Most U.S.-issued stablecoins exist under Article 8 of the Uniform Commercial Code, which requires they have intermediaries. 

Avit will be issued on Liquid – a network developed and overseen by Blockstream that is meant to move bitcoins around more quickly than the Bitcoin blockchain itself. Assets on Liquid can be traded in atomic swaps, or smart contracts that allow for exchanging assets without an intermediary. Avit would not be pegged one-to-one to the U.S. dollar, but it would be 100% backed by a reserve comprised of Federal Reserve deposits and U.S. Treasurys. But Avit could effectively become a dollar equivalent if Avanti provides an easy pathway for it to be exchanged for a dollar. In this way, Avit would represent a certificate of deposit or a unit that is redeemable at any time against the U.S. dollar. 

Nigerians Are Using Bitcoin to Bypass Trade Hurdles With China

Some Nigerians are becoming reliant on using bitcoin as a way to trade internationally, and are finding bitcoin has significant benefits over legacy financial systems. Nigeria’s economy is heavily import dependent and China is a major import partner to Nigeria. Nigerians have to struggle with this process, though. Access to FX for importation by Nigerian business owners is highly limited because the Central Bank of Nigeria has been rationing foreign exchange in efforts to protect the local currency amid the crash in oil prices and coronavirus outbreak. So importers typically rely on the black market for the additional FX needed and that comes at a very high price. But Chinese exporters have expressed willingness to accept bitcoin payments for their goods; hence, many business people in Nigeria find it more convenient to make such payments with bitcoin.  

cLabs Acquires Summa to Boost Crypto Interoperability on Celo

Celo’s cLabs acquired the decentralized finance (DeFi) startup Summa, best known for making wrapped Ethereum tokens that can represent locked amounts of bitcoin. Summa’s technical expertise in cross-chain architecture will enable seamless interoperability between Celo and various layer-one blockchains. 

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Kiffmeister’s #Fintech Daily Digest (08/14/2020)

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Brainard Says Fed Is Conducting E-Money Tests for Research

The Federal Reserve is conducting in-house experiments with a hypothetical digital dollar for research purposes, though it hasn’t yet committed to issuance that would require a formal policy process involving the government and other stakeholders. A multidisciplinary team, with application developers from the Federal Reserve Banks of Cleveland, Dallas, and New York, is working with a policy team at the Fed to study the implications of digital currencies on the payments ecosystem, monetary policy, financial stability, banking and finance, and consumer protection. 

Boston Fed announces collaboration with MIT to research digital currency

To enhance the Federal’s understanding of digital currencies, the Boston Fed is collaborating with researchers at the Massachusetts Institute of Technology in a multiyear effort to build and test a hypothetical central bank digital currency (CBDC). The first phase of the Boston Fed’s research will involve jointly building and testing a hypothetical CBDC for wide-scale, general purpose use. The objective in this phase will be to determine how to architect a scalable, accessible cryptographic platform to meet the needs of a theoretical U.S. dollar CBDC, including stringent design requirements for speed, security, privacy and resiliency. 

China expands digital yuan trial to several more cities

China’s central bank digital currency (CBDC) pilot will reportedly expand to include Beijing, as well as Hong Kong, Macau, Guangdong province, Tianjin, Hebei, and the Yangtse River Delta. Also the Ministry of Commerce reportedly said that the project design is hoped to be wrapped up by the end of 2020.  

Comparing Means of Payment: What Role for a Central Bank Digital Currency?

This Federal Reserve paper looks at the potential benefit that a central bank digital currency (CBDC) could provide in the context of existing payment mechanisms. A comparison of a general-purpose CBDC with existing means of payments across seven categories reveals how an appropriately designed CBDC could provide value in certain areas. These technological benefits could include a digital form of a bearer instrument, more cost-effective payment services, greater anonymity than current digital transactions, and a catalyst for greater innovation through programmable money. 

BitMEX to Mandate ID Verification for All Traders as Maverick Exchange Ends Wild Ways

BitMEX will impose mandatory identity verification for all users. Registering to trade on BitMEX currently takes “less than 30 seconds,” according to its homepage, where new users outside of restricted jurisdictions are required to enter only an email address, password and pick a country of residence. That will end on August 28 when verification will be mandatory for all users, a process that will include proofs of location, funds, and trading experience. The policy change comes with a six-month “grace period” ending in February 2021 to accommodate unverified users completing the process. 

Apollo Fintech Announces Completion of the First Blockchain National Currency Platform

Apollo Fintech launched its blockchain-based central bank digital currency (CBDC) National Payment Platform (NPP). It faciliatates the build out of a multi-tier digital currency ecosystem, from commercial banks and other agents, to merchants and users, enabling to peer to peer transactions using its app, SMS, QR codes, cards, offline codes. Authorized banks can onboard users and merchants for mainstream transactions including currency deposits and withdrawals, currency exchange, money transfers and payments for goods and services.  

Real Estate Tokenization- A Complete Guide

In recent years, blockchain-based tokenization has succeeded in making real estate much efficient, accessible, and affordable to the investors. And many experts believe that tokenization is the key to transform the industry into the next level. If you’re a property owner, or an investor looking for an opportunity to invest in real estate, this article jots down the 3 W’s of tokenization of real estate, i.e what is tokenization? Why should you tokenize? and where to tokenize your real estate? 

Writing Bitcoin Smart Contracts Is About to Get Easier With New Coding Language

Bitcoin smart contracts are a tricky beast to tame, but a new language is making them easier to write, democratizing them in a sense. Minsc, created by Bitcoin developer Nadav Ivgi, is a new programming language that makes it easier for developers to create these kinds of contracts so they can build them into bitcoin wallets and other apps more smoothly. 

UK fintech funding rallied in the first half of 2020 amid the coronavirus pandemic

Despite the global coronavirus pandemic, U.K. fintech funding saw a slight uptick in the first half of 2020 compared to the same period in 2019. Fintech investments were up 3.8% in the first half of 2020 to just over £2bn, up from £1.9bn in the first half of 2019. The slight increase can largely be attributed to a surge in investment across insurtech and payments startups. Investment in insurtech saw the largest increase, increasing by 66% from £97m in 2019 to £161m in 2020 and payments-focused fintechs followed, seeing a 5.3% increase on 2019 to £760m. 

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Kiffmeister’s #Fintech Daily Digest (08/13/2020)

~ kiffmeister

Coinbase to Offer Bitcoin-Backed Loans to US Customers

Coinbase will allow U.S. retail customers to borrow fiat loans against as much as 30% of their bitcoin holdings in the fall. Credit lines will be capped at $20,000 per customer and an interest rate of 8% will be pffered for bitcoin-backed loans with terms that are a year or less. The exchange says it won’t reinvest the collateral elsewhere and will keep the bitcoin at the exchange, unlike some crypto lenders who rehypothecate collateral or invests deposits into perpetual swaps. The new Coinbase product is only available in the following states: Alaska, Arkansas, Connecticut, Florida, Georgia, Illinois, Massachusetts, New Hampshire, New Jersey, North Carolina, Oregon, Texas, Virginia, Nebraska, Utah, Wisconsin and Wyoming. 

Chinese state-run banks start testing PBoC’s ‘e-wallet’

China’s largest state-owned banks have reportedly started testing the “electronic wallet” component of the People’s Bank of China’s (PBOC’s) “digital yuan” project. The tests are being conducted in cities including Shenzhen, which borders Hong Kong. The municipal government of Shenzhen said it would cooperate in efforts to test the system for different applications. Banks are testing the e-wallet application to transfer money and make payments using the PBoC’s digital yuan. The e-wallet, which can be downloaded as a mobile application, will be linked to a user’s national ID number or telephone number to enable fund transfers. 

DeFi Meme Coin YAM Succumbs to Fatal ‘Rebase’ Bug, Makes Plans for ‘YAM 2.0’

DeFi meme coin YAM has succumbed to a bug within its rebase function, meaning the coin has lost control of its on-chain governance feature. Yam was an elastic supply crypto-asset, where the supply expands and contracts in response to market conditions with the aim of pegging the value of a Yam to the U.S. dollar. 10% of each supply expansion (“rebase”) is used to buy yCRV, a high-yielding basket of USD stablecoins, which is allocated to the Yam treasury which is controlled via community governance. Holders of any of eight eligible tokens, which included Compound and Maker, could stake them into Yam’s front-end and start earning YAM. 

From Decrypt: In the 24 hours following the August 11 launch, the total-value-locked (TVL) into the Yam Finance system peaked at around $600 million. However, soon after that, the developers found a bug in the smart contract code that would have minted too much reserve instead of rebalancing supply. A Yam proposal called for locking up 160,000 YAM in a smart contract to save the network, one that would have rewarded farmers and benefactors with more YAM if the target was met; which it was. But the network then discovered a further flaw: the smart contract would still not work as intended, regardless of the 160,000 YAM locked up earlier.

While no assets staked in Yam were lost, Yam’s market capitalization dropped to zero as the price crashed and holders withdrew. See also: YAMpocalypse Now: How hubris and speculation smashed the latest DeFi Token.

Brazil unveils nitty-gritty of instant payment tool

Banco Central do Brasil unveiled the general framework and updated rules for the country’s instant payment system PIX, which will be launched gradually from November 16. From October 5, those interested in joining the system will be able to register the so-called PIX Keys, which will identify the payer and payee. To use the central bank’s platform, users will need an email address, phone number or taxpayer ID. There will be three ways to complete the transfer: by entering the recipient’s data, by using a QR code or by using a payment link. The central bank will both regulate and provide the payment settlement infrastructure, including the database with data on the accounts of recipients. Participating financial institutions will pay 0.01 reais per transaction to use PIX, versus an average of 0.07 in the current TED system. The minimum capital required is 1 million reais.  

New Bill in Germany Proposes to Digitize Securities With Blockchain

Germany’s Federal Ministry of Finance (BMF) and the Federal Ministry of Justice and Consumer Protection (BMJV) introduced a draft bill on blockchain-based digital securities. It would allow securities to be secured using blockchain technology, as opposed to paper certificates, as current legislation requires, thereby enhancing liquidity and compliance. The proposed draft bill make the Federal Financial Supervisory Authority (BaFin) responsible for monitoring the issuance of digitized securities and the maintenance of decentralized ledgers in accordance with the German Banking Act.  

With $16bn in cryptocurrency, Ripple attempts a reset

Ripple can lay claim to having created one of the most valuable crypto-assets. Its XRP digital tokens have a total value of almost $30bn, behind only bitcoin and Ether. But, eight years after launch, Ripple is still trying to find compelling uses for the blockchain technology underpinning its currency that would justify such a high figure. Now, in an effort to draw more users, it has struck out in a new direction: to try to become the Amazon of the crypto-asset world, using its platform to support activities far beyond the original cross-border payments system it hoped to build. 

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