DZ Bank, G+D to demo offline M2M payments using tokenized deposits (Ledger Insights)

Four German firms, DG Nexolution, DZ Bank, Festo and Giesecke+Devrient (G+D) have developed a prototype solution to support machine to machine (M2M) payments in offline mode using tokenized deposits. “Offline” in this case means that the machines are not connected to the public Internet or a company network. The data exchange during payment is either wired via Ethernet or wirelessly via Bluetooth, near-field communication (NFC) or a wireless local area network (WLAN). Therefore, the technology can also be used in security areas or in difficult environments such as mining., and with older machines that are not connected to networks can be integrated. The prototype demonstration involves two wallets integrated with control units typically used on machines. A smart card is used to load money into the wallet, and the machines can transfer money between them. [Read more at DG Nexolution]

Beneath the crypto currents: the hidden effect of crypto “whales” (Philly Fed)

The U.S. Federal Reserve Bank of Philadelphia (Philly Fed) published a paper on difference in how large holders of Ethereum (ETH) behave compared with smaller holders of ETH relative to price movements and the volatility of the cryptocurrency. It finds that large ETH holders tend to increase their ETH holdings prior to a price increase, while small ETH holders tend to reduce their ETH holdings prior to a price increase. In other words, ETH returns tend to move in the direction that benefits crypto “whales” while reducing returns (or increasing loss) to “minnows.” Additionally, it finds that the volatility of ETH returns seems to be driven by small retail investors rather than by the crypto whales. While these price dynamics do not necessarily suggest that there is overt market manipulation occurring within the ETH market, understanding them is essential for regulators in designing policies and guidelines to discourage abusive behavior and for market participants to better manage risk in crypto markets. [Read more at the Philly Fed]

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