Libra Vs The State: Will Regulations Ruin Facebook’s Stablecoin

Facebook’s Libra cryptocurrency has only been announced a day and regulators are eager to dip their claws in the upcoming stablecoin.
Digital currencies like Bitcoin transcend national borders and Facebook’s new Libra project is aiming to cash in on this aspect. Regulators are keeping a wide eye on Facebook as the network focuses on being the first global central bank.
Higher standards
Speaking at the ECB conference in Portugal, governor for the bank of England Mark Carney called on G7 nations to heavily scrutinise the launch of Libra.

“Anything that works in this world will become instantly systemic and will have to be subject to the highest standards of regulation. We will look at it very closely and in a coordinated fashion at the level of the G-7, the BIS, the FSB and the IMF. So open mind, but not open door.”


Former chair for the Federal Deposit Insurance Corporation Sheila Bair recently sat down in an interview with CNBC. Bair expressed her worries on the launch of Facebook’s upcoming stablecoin saying:

“What are they doing with the money, if I give them some dollars to buy the Libra, they’re kinda being fuzzy about that in their whitepaper…The strength of the collateral is a question I would have about it.”

As reported by CCN:

“Facebook has 2.6 billion users worldwide. Those users exchange value in over 100 different currencies. Despite Libra’s claim as a future stablecoin, it’s unclear yet how Facebook will manage investment with its foreign reserves.”

Blair has called for a cryptocurrency backed by Federal entities. There is one glaring issue with this though. She noted in her interview:

“[FedCoin] would give people a very safe way to make payments. I mean you don’t have to worry about the Fed defaulting right, they can print their own money.”

The feds can very well print their money, sure. But the feds jurisdiction has a cut-off point and that is at the border.
Facebook has no borders.
Source: Crypto Daily

Scam: 22,800 Bitcoins Allegedly Laundered by UK Business

According to a recent report, the US Commodity Futures Trading Commission has filed a complaint against the UK based company Control-Finance Ltd and its Director, Benjamin Reynolds.
According to the Finance Feeds report, 22,800 Bitcoins were stolen from customers by guaranteeing them healthy profits on their investments.
According to sources close to the matter, the US watchdog filed a complaint with the New York Southern District Court against Control-Finance Ltd. alleging that it defrauded around a thousand customers to launder just under $150 million worth of Bitcoin. In fact, the UK based firm has been accused of taking investments from consumers to fund a Ponzi/pyramid scheme.
As it reads in the report:

“From at least May 1, 2017, through October 31, 2017, the defendants solicited customers to purchase their own Bitcoin with cash and thereafter deposit their Bitcoin with the defendants. To lure customers to transfer Bitcoin to them, the defendants made a raft of misrepresentations – for instance, they claimed that they employed expert virtual currency traders who earned guaranteed daily trading profits on customers’ Bitcoin deposits.”

In trying to persuade customers of the legitimacy of the business, the director provided then with sham account documents. The firm used to transfer their deposits of Bitcoin to its cryptocurrency wallets in Canada, Switzerland, Seychelles and South Korea.

In an official complaint with the court, it states that both Control Finance and Reynolds took advantage of the public’s enthusiasm for Bitcoin from May 2017 until October that same year. The CFTC has requested the court to impose civil monetary penalties and put a permanent trading and registration ban on the company.
The CFTC’s enforcement director, James McDonald said:

“The CFTC will continue to vigorously police the bitcoin markets, including fraudulent trading activity as alleged in this complaint.”

He went on to say:

“Fraud in these markets not only harms customers but if left unchecked, it could also hinder innovation. We caution potential virtual currency customers, once again, that they should engage in appropriate diligence before purchasing or trading virtual currencies.

Source: Crypto Daily

Craig Wright’s Satoshi Claim Arrives at an Impasse

Craig Wright, or Satoshi Nakamoto as he claims to be, recently attended a mediation conference in Miami related to his $10 billion lawsuit against the estate of deceased computer genius Dave Kleiman.
At an Impasse
In a court filing dated June 18th, the mediator highlighted that both parties were unable to resolve their lawsuit at mediation.

“This case did not settle at the mediation. As a result, we are at an impasse.”

The Satoshi Debate
The conference happened just one day after a judge sealed evidence that Wright was instructed to show in regards to him being the creator of Bitcoin AKA Satoshi Nakamoto.
A good friend of Wright, Calvin Ayre had something to say on the situation and took to Twitter following the mediation. The crypto entrepreneur has said that Wright is dedicated to showing the world that he is in fact, the inventor of the original cryptocurrency.

“Craig just finished his settlement conference in Miami and reports are they can not comment on what happened. However Craig is in the US and is intent on regaining control over his legacy as Satoshi in that country now.”

Both Wright and Kleiman worked on Bitcoin from 2008 to 2013. The Kleiman estate has admitted in its lawsuit that either Kleiman or Wright could be Satoshi and probably invented BTC considering they were working on it during the 2008 financial crisis before it was released a year later.

“It is unclear whether Craig, Dave, and/or both created Bitcoin. It is undeniable, however, that Craig and Dave were involved in Bitcoin from its inception and that they both accumulated a vast wealth of bitcoins from 2009 through 2013.”

Even though he has claimed that he is the creator of Bitcoin, Wright has distanced himself from the original cryptocurrency. According to him, BTC is tainted and perverted after devolving into an asset for criminals, scammers and hackers.
As reported by CCN:

“In a withering May manifesto, Wright says he created bitcoin to operate within the law and not to facilitate crimes. Therefore, Wright says he washes his hands of BTC and now embraces Bitcoin SV (Satoshi Vision) as the one “true bitcoin.”

Source: Crypto Daily

Peter Schiff: "Libra Is Bad News For Bitcoin”

Everyone is allowed to have their own opinion – I mean, it’s a free country, right! A lot of people will talk about their opinions online to share with others and hope that someone agrees with you (its the 21st century and Twitter is free, what did you expect!?).
Spreading your own opinion, you should always be prepared for others to beat you to the mark and comment on your own opinion. A good example is what recently happened between the Bitcoin community and the CEO of Euro Pacific Capital, Peter Schiff.
Schiff started on Twitter talking about how Facebook’s new cryptocurrency isn’t good news for Bitcoin:

“Facebook’s new crypto currency “Libra” is bad news for Bitcoin.  Facebook will target the very market Bitcoin is counting on for growth, the unbanked in nations with high inflation.  Libra will be stable, and much easier and cheaper to use as a medium of exchange than Bitcoin.”

Schiff backs his statement saying that Libra, Globalcoin, or whatever Facebook’s stablecoin is called, will be targeting the same market that Bitcoin is hoping will be massive for adoption.
Libra would help unbanked countries with high inflation and according to him, the new coin is “much easier and cheaper to use as a medium of exchange than Bitcoin.”

Community reaction
The community reacted to Schiff’s comments with the co-founder of Morgan Creek Digital’s, Anthony Pompliano having the highlight response.

“False. In fact, the exact opposite is true.
Like restaurants on an intersection, the more available, the better for each of them.”

The two went on to debate for a while leaving for an entertaining evening for many watching to the two argue on Twitter.
A managing partner at BlocktownCap, James Todaro said:

“Bitcoin’s value proposition is a stateless, decentralized, censorship resistant and deflationary currency. Which of these properties does Facebook’s coin have?
Anyone who thinks Facebook’s coin is a direct competitor to bitcoin doesn’t understand bitcoin.”

Facebook’s stablecoin has created a lot of controversies as no one knows what it will hold for the future of Bitcoin. It will be interesting to see though, make sure you keep it with CryptoDaily for all Facebook-related news.
Source: Crypto Daily

As BTC Surges so will Volatility

For around a decade now, Bitcoin has been on a ride with a lot of downs and a lot of ups. Parabolic price surges are as common as 90 percent in value for basically every coin or token in the whole crypto arena.
The analyst Trend Trader perfectly summarised the world of Bitcoin up while they laid out the $10k BTC price mark theory at the same time.

$BTC-Theory to 10000. 1. Market Makers convinces CT to go USDT on atleast 50-70% portfolio. CT says ✅, as a result BTC dips below 8000.2. More FUD, more selling & MM keeps buying the dips till 6500-7000 while we proudly keep selling into stables even sub 7200 hoping for 5000.
— Trend Trader (@TrendTrader13) June 8, 2019
This theory comes with everything we expect in the crypto space such as unexpected volatility levels, rowdy bull runs and bear markets that can last as long as a winter in Game of Thrones.

3. Some Alts run & we keep going in&out of BTC to trade it fearing BTC dump too at the same time, end result = less BTC&USDT than u have today4. MM starts pushing BTC 🆙, CT advices to short the bounce hard & provide liquidity. MMs r 😃 & BTC crawls back up with its Iron-Claws
— Trend Trader (@TrendTrader13) June 8, 2019
A senior trader a Cipher Technologies, Jake Stolarski is predicting a ride that has few more bumps on the way. Recently speaking to Bloomberg, the trader said that the markets could be some short-term bubble to a sense.
During such a volatile time, the crypto markets could experience quite a bit of suffering:

“The market is in an identity crisis, trying to find a place to stabilize. The key technical levels have been creating market volatility, for sure, due to sudden shifts in sentiment.”

There is an overall bullish sentiment in the markets at the time of writing but there are always people who believe the leading digital currency will fall to zero with the rest of the markets.
As reported by ZyCrypto:

“And even if the market remains bullish, the dips and volatility will surely continue along the ride. Maybe this zany Twitter thread is as good a guess as anyone’s regarding what will happen on the way.”

Source: Crypto Daily

Cardano Gains New PR Director – Is Global Reach on the Table?

Reports surfaced this week that the Cardano Foundation has appointed Bakyt Azimkanov as the director of international PR, communications and marketing.
This appointment came during a time when the blockchain firm looks to stretch its reach on a more global scale.
In his new rule, Azimkanov will take control of looking over the organisation’s communication and marketing strategy. Azimkanov will also be working with the two strategic partners for the Cardano Foundation, IOHK and EMURGO. This will be to advise the Foundation Council on integrated communication initiatives to improve awareness of the brand.

“First and foremost, the global communications expansion strategy will be responsive to industry developments and the Cardano Foundation’s vision. Secondly, the communications expansion strategy will focus on our communities spread across the globe – subsequently, on trying to meet their needs,”

Azimkanov said whilst commenting on the companies plans for international expansion.
As reported by Finance Magnates:

“Azimkanov is a trained journalist and received his master of arts degree in business and finance journalism from the UK’s City University and a second master of arts degree in media studies and communication from the University of Aarhus in Denmark. He received his bachelor of arts degree in journalism and public relations from the American University of Central Asia (Kyrgyz Republic).”

Azimkanov has got a career spanning twenty years so it’s safe to say he will be a valued member of the Cardano team.
Before he joined the project, he worked at Ernst and Young was the leader for the firm’s global media relations and social media engagement.
The announcement claims, he played “a pivotal role in securing and maintaining a number one share of voice in the media for the transactions business unit.”
Chairman of the Cardano Foundation, Nathan Kaiser said:

“We are strengthening our communications function in response to our growth plans. The combination of Bakyt’s leadership, breadth of skills and experiences in implementing value-led communications programs will help the Foundation to strengthen its position in the blockchain industry around the world. I have every confidence that he will play an important role in driving our Foundation’s values and our continued transformation goals.”

Source: Crypto Daily

Max Keiser on BTC: “My Price Target is $100,000 and Beyond.”

One of the biggest figures in cryptocurrency is the host of the Keiser Report, Max Keiser.  Recently, Keiser took part in an interview for Kitco News where he highlights that Bitcoin can capture a part of the worldwide gold market.
The famous investor said that despite the strong bearish streak of last year, he still believes that it is possible for the flagship currency to see off a $100,000 price mark. He adds that he doesn’t expect to make any significant sales unless this value is surpassed.

“To capture a piece of the gold market, you’re talking $60-, $70-, $80-, $100,000 to Bitcoin. I have not sold any Bitcoin because my price target is $100,000 and beyond.”

Keiser explained that from his point of view, Bitcoin bottomed close to the $3,200 range. Technical reasons weren’t behind this conclusion though. Instead, his reasoning was on more of a political level.

“When the Federal Reserve bank signalled that they were going to permanent quantitative easing, I said look, that’s the bottom for bitcoin, that was about $3,200 on bitcoin because they’re making it clear now that there’s going to be no accountability by the Fed. They’re going to print ad infinitum, ad nauseam, there’s going to be no rollback, no kind of attempt to balance their books.”

Gold V2?
Keiser says that one of BTC’s advantages over fiat is that there is a fixed number of coins in circulation which prevents a controlling entity from generating an excess of circulating Bitcoin that could cause a drop in prices as a result of inflation.
Keiser describes this as irresponsible and he stressed that bubbles and price changes are normal because BTC is going through a transition stage that gives is different characteristics.

“Gold’s got an $8 trillion market cap, or a $7.5 trillion market cap. And so, we’re 100x off on that. We’re not going to get there in Bitcoin in the next year or two. But over a 20-year period, could that happen? Easily. Easily.”

To finish off, Max said that investors don’t have to choose between one or the other. In his eyes, owning both is important to diversify risk:

“I own a lot of gold, I bought a ton of silver, but I also own a big position in Bitcoin”

Source: Crypto Daily

GlobalCoin Getting Backed by Visa, Mastercard & Uber

Globalcoin – Facebook’s new cryptocurrency – is highly anticipated in the crypto community to be the one thing that helps boost mass adoption. With the help of Visa, Mastercard, Uber and PayPal, this could eventually become a reality.
Reports surfaced earlier this week by the Wall Street Journal that the social network has signed on more than a dozen firms to back its cryptocurrency, a stablecoin that has been developed in secrecy for more than six months. Each of these new backers will invest roughly $10 million in the project as part of a governing consortium for the cryptocurrency.
On top of this, the report says that, Stripe and MercadoLibre are three other companies that are part of the project but nothing has been specified on what their roles are as of yet.
Facebook has revealed that it was GlobalCoin last December, although the firm has suggested that it was looking at cryptocurrency as far back as the end of 2017. The stablecoin is expected to be one that will operate within the businesses messaging infrastructures such as Messenger, Instagram and the extremely popular WhatsApp.

Facebook has been taking a low-key approach to the cryptocurrency as they haven’t really given anything away. It’s still a question as to what GlobalCoin will actually be used for but the BBC has suggested that Facebook might look to retailers to allow their users to buy discounted goods using the stablecoin. The cryptocurrency would be used to transfer value directly from Facebook to the retailer, cutting out credit card companies as the middle man.
Even though retailers’ profits will be helped in this manner, you can’t help but ask what this will mean for credit card firms? Will people lose their jobs? Will companies go under? It’s unlikely that PayPal or Mastercard will plunge from this but it isn’t completely off the table if this is true.
Either way, GlobalCoin is a very interesting venture from Facebook and we are very excited to see what will happen. The stablecoin is expected to be officially unveiled on 18th June.
Source: Crypto Daily

Bitcoin Futures Volume Breaks Records on CME

Chicago Mercantile Exchange smashed records recently with its Bitcoin futures in both volume and open interest. In a new report, CME group reveals that in May, the firm showed massive growth with 223 new trading accounts. This makes is the most successful month for Bitcoin futures product since launching in December 2017.
The average daily volume ended at 13,777 contracts for the month – or about $515 million in notional USD-traded value. This is up 36 percent since April and 250 percent annually.
Fundstrat’s head of research, Tom Lee has said:

“This is very bullish as the rise in Bitcoin futures volume reflects incremental institutional money.”

With CME posting new highs for Bitcoin futures, Chicago Board Options Exchange (Cboe). For those that don’t know, Cboe is the world’s largest options market, which is stepping away from the market.
Before we go any further though, it’s worth saying that we aren’t financial investors and this isn’t financial advice. Please do your own research before putting your money in a cryptocurrency and always remember to trade safe!

The rise in the price of cryptocurrencies has been often accompanied by an increase of general interest by big institutional investors. At the end of 2017, we saw a lot more people enter the market who probably never had even heard of cryptocurrency and get involved with the space.
During this time, Cboe became the first US exchange to launch Bitcoin futures but it is now expected to settle its last Bitcoin futures contract next week on June 19th following an announcement stating that it would not issue a new Bitcoin futures market in March and that it would reassess trading its derivatives product, Cboe Bitcoin (USD) Futures (XBT)

“CFE is not adding a Cboe Bitcoin (USD) (“XBT”) futures contract for trading in March 2019. CFE is assessing its approach with respect to how it plans to continue to offer digital asset derivatives for trading. While it considers its next steps, CFE does not currently intend to list additional XBT futures contracts for trading. Currently listed XBT futures contracts remain available for trading.”

You can see the full report here.
Source: Crypto Daily

Binance Labs Invest In P2P Network Solutions Startup Marlin Protocol

Marlin is a peer-to-peer superhighway for public blockchains bringing high-performance network infrastructure to modern decentralized networks. Founded by researchers at Stanford and MIT, Marlin facilitates orders of magnitude improvement in throughput in planet-scale decentralized networks and is currently collaborating with platforms like Holochain, Blockcloud, and several others.
Binance Labs has announced its investment backing of Marlin, a layer-zero scaling protocol. Marlin is also pleased to announce former BitTorrent CEO Rogelio Choy is joining the advisory board.
Binance Labs is investing in Marlin through its entrepreneur-focused blockchain and distributed ledger technology portfolio fund. Marlin will be a part of the Binance Labs Incubation Program, San Francisco cohort.
With heavy support already secured from various blockchain visionaries, including former BitTorrent CEO Rogelio Choy, the Binance Labs partnership further strengthens Marlin’s position in blockchain and decentralized business platforms.
“Marlin is addressing a material issue that every blockchain project needs to address – the speed of decentralized transactions at scale. Adoption of the Marlin Protocol can meaningfully drive the long vision of blockchain, mass market adoption of decentralized apps and services,” says Choy.

Developed specifically for blockchains, Marlin Protocol combats issues created by the existing Gossip protocol. The Gossip structure is outdated and ineffective in Web 3.0 environment. The Marlin Protocol scales blockchains at layer zero. This effectively eliminates bottlenecks, security weaknesses, and slow, unreliable network functioning.
“While we’ve seen many innovative consensus algorithms and off-chain techniques in the industry to solve the scalability issue, Marlin is a group of talented entrepreneurs who tackle the underlying network layers scalability through their node network design and cryptoeconomics. Their fast and decentralized network solution can potentially benefit all blockchains” said Ella Zhang, Head of Binance Labs.
Siddhartha Dutta, CEO of Marlin, and former core developer at Zilliqa, states “Networks are the backbone of peer-to-peer applications. Several billion-dollar networking enterprises have enabled the largest Web 2.0 companies of today. The opportunity to be at the forefront of building the foundational technology necessary for the fast-growing P2P industry excites us the most.”
The Marlin Protocol is currently operating under the mentorship of a deeply knowledgeable advisory council. Its current advisory board includes former BitTorrent CEO Rogelio Choy, COO of Eaze. Choy joined Eaze after Tron’s acquisition of BitTorrent.
Choy is joined by UCLA Computer Science professor Ravi Netravali, PhD, Hari Balakrishnan, PhD from MIT, and Prabhakar Reddy, previously VC at Accel Partners.
Marlin was co-founded by MIT PhD candidate Prateesh Goyal and Pratyaksh Sharma, M.C.S. The founding team is joined by CEO Siddhartha Dutta, who brings experience from both Microsoft and Zilliqa. Dutta was one of two initial core developers at Zilliqa as it developed a sharding-based scalability solution.
Source: Crypto Daily

Telegram’s New Cryptocurrency To Be Open For Retail Investment

Telegram is a very quickly growing social platform. One that will now, for the first time, make its Gram token available to retail investors through the Liquid exchange. This is a limited listing that will only be available from July 10th according to the exchange and that a full public sale is planned for October.
Public Accessibility
Gram is the native currency for the Telegram social media app which will now be available o retail investors. While the token has previously been sold through Telegram’s two-part ICO in 2018, which brought in just under $2 billion, this is the first time the general public will be able to buy Gram.
As reported by CryptoSlate:

“Gram will go on sale through a listing on cryptocurrency exchange Liquid on July 10. The arrangement is a limited offering, the report said, which will precede a full public sale scheduled for October.”

Even though Liquid exchange has struck a specific deal with Telegram, the exchange will instead list an unspecified number of tokens currently held by a South Korean-based organisation, Gram Asia who hold a significant amount of the tokens.

Telegram hasn’t said much on the issue but the CEO of Liquid, Mike Kayamori spoke to TechCrunch and said that this wasn’t unusual for Telegram to be going under the radar.
In addition, he added that the planned Gram listing is “very much part of the plan for TON,” the Telegram Open Network.
Telegram seems to have been working on this for a while now, Kayamori said that a public sale was always planned for the window between the testnet launch and full mainnet release.
In concerns about legal issues, the firm wanted to work with a regulated exchange to see what the waters were like, so to speak.
Kayamori said:

“Telegram already has an ecosystem, developers and early token buyers and TON ventures, there are already communities being built up. Based on discussions within these communities, Gram Asia has put its best step forward to do this public sale.”

Source: Crypto Daily

Expert: “Globalcoin’s Effort Is The Most Bullish External Tailwinds For Bitcoin In 2019/2020”

Facebook’s Globalcoin is all the news right now as many enthusiasts are very excited to see what it will hold. Experts of Bitcoin have begun to think about what kind of impact the social network will have on the crypto space (if any at all). Some are taking this discussion in a cynical manner saying that Zuckerburg’s pet project is a ‘trojan horse’ for governments to establish a 1984-like state in the space.
Blockchain Capital’s Spencer Bogart broke down his feelings on the matter in what was a pretty extensive Twitter thread. Starting off Bogart said:

For better or worse, Facebook’s crypto effort is among the most bullish external tailwinds for Bitcoin in 2019/2020 (topped only by reinvigorated push among central banks for easy-money globally)1/
— Spencer Bogart (@CremeDeLaCrypto) June 11, 2019
He then goes onto question if Facebook really needs this. His response?

“Of course not – but at the highest level there’s two primary reasons why it’s a bullish catalyst for bitcoin.”

Bogart says that the value can flow quite easily between Facebook’s ecosystem like Bitcoin or Ethereum. He states:

“Facebook making a concerted push for digital asset adoption and creating a circular economy is great because it solves that friction point. Once people are holding/earning a digital asset, it’s relatively trivial to go from, for example, USDC to BTC.”

What’s also important is that Globalcoin will trigger growth in a cryptocurrency infrastructure from everything from custody and wallet services to compliance and exchanges.

“… it catalyzes the buildout of infrastructure to support digital assets (custody, wallets, compliance, etc.) among large financial institutions and payments providers that, to-date, have taken a “wait and see” approach”.

To finish off, he says that the crypto would give a sense of legitmacy to public blockchains and digital assets for a mainstream audience:

“Lastly, it legitimizes the concept of public blockchains and digital assets to a broader audience (the broadest yet).”

More and more people are thinking that Globalcoin’s launch will see Bitcoin boom. Could it be that Facebook’s cryptocurrency will see BTC adoption rise and thus the price? Fingers crossed!
Source: Crypto Daily

Investment Firm Bets On ETH With $100m Stake

A new $100 million investment company, going under the name Darma Capital, is currently making strides with Ethereum. In fact, you could call it a gamble as the firm is betting big that the leading smart-contract platform will go on a ten-year bull run.
By the end of last year, Ethereum lost around 95 percent of its gains but despite this, a new fund is betting that that was just a one-off and in the long-term, things are going to pay off. Darma Capital clearly has a lot of faith in Ethereum and they’re buying as much as they can during this time in the market.
A managing member at the firm, Andrew Keys has said that the cryptocurrency space today is still like the early days of the internet. With this, Ether is the equivalent to the early web but unlike our current internet, investors are able to directly invest in the ‘web 2.0’.
It’s an intriguing idea, and more than likely the reason as to why Darma Capital has been so bullish on Ethereum. But they aren’t the only ones. Societe Generale SA (often nicknamed SocGen) recently issued a 100 million euros-worth of bonds on the public Ethereum blockchain.

As reported by Be in Crypto:

“Darma is currently registered with the Commodity Futures Trading Commission (CFTC). The fund is licensed as both a commodity pool operator and commodity trading advisor.
As of now, the purpose of the fund is, simply put, to buy as much ether as possible. In fact, Keys said that Darma sold the top in early 2018 to acquire more ether. The fund is actively trading to accumulate for the long game.”

Even so, there are still some big questions that look over the Ethereum network. Worries concerning privacy and scalability immediately are good examples. Whereas others will take an issue with the currently-uncapped supply of coins.
Despite all this, Darma’s big bet of Ethereum could give investors the confidence they need. If corporate get involved for such a long time, there’s a reason for it.
Before we finish though, it’s worth saying that we aren’t financial investors and this wasn’t financial advice. Please do your own research before putting your money in a cryptocurrency like Ethereum, and always remember to trade safe!
Source: Crypto Daily

MoneyGram Head Thinks Its “Highly Probable” Crypto Is The Future Of Finance

The global head of product and innovation at MoneyGram is a big believer in cryptocurrencies and has even said that they represent the future of how the general public will move money across borders.
For those that don’t know, MoneyGram International Inc. is a money transfer firm that is based in the US with headquarters in Texas. The head of product and innovation, Youri Bebic says it’s “highly probable” that crypto is the future of finance.
Last year, MoneyGram announced a partnership with Ripple in order to test the digital asset’s ability to lower the cost and increase the speed of payments. Bebic spoke to the Institutional for Robotic Process Automation and AI that the results of the test showed the massive potential of crypto in the world of finance.
Bebic says that value isn’t really shifting across borders when someone sends money across the world. Instead, firms pre-fund banks accounts in nations internationally to be able to power the global remittance industry.

“We did a proof of concept with one cryptocurrency. We made a press release so I can answer that. That was with Ripple, where we are trying to see if we can use cryptocurrency for liquidity in the markets.
Because the big secret with money transfers is the money doesn’t move. The money’s already there. We pre-fund pretty much in bank accounts all over the world and then we do value transfer. But if I were to send money from here to Mexico and literally, physically move the money at that time, it would take a lot of time.”

The way things stand could change with cryptocurrencies. Bebic says that by making it really possible to send value across borders in an instant without needing to utilise pre-funded bank accounts. Even so, the liquidity of crypto assets is a big issue that still needs to be overcome.   

“So cryptocurrency, if they all add scale, and if the markets are there with liquidity, could actually allow us to eliminate pre-funding of fiat, what we call regular currency in a particular country, and then use the exchanges to sell cryptocurrency against local currency and deposit that into the bank account or give it in cash for our user. So, we are obviously looking into that. We are running some pilots and trials.
And I do believe it is highly probable that this is the way money will move in the future. There is still a lack, again, of liquidity, and some markets are more advanced than others. We deal with a lot of exotic currencies… in Africa, for example, where I don’t see cryptocurrency really being traded in the near future. But in many places, like in Europe, like in Asia, it could actually be possible, and if it takes off we want to be a part of it.”

Source: Crypto Daily

Blockchain OS To Launch through China’s Biggest Search Engine

One of the biggest purveyors of blockchain-based technology in the world is China and now, the country’s biggest player in the search engine space, Baidu is getting in the game in an effort to support the creation and development of decentralised applications (dApps).
With it being of its top ten holdings, the latest foray by Baidu could help boost the Emerging Markets Internet & e-commerce ETF, which brings both technology and EM into just one ETF.

“The Baidu Blockchain Engine (BBE) is essentially an operating system for dApp development and is part of the company’s cloud computing unit, Baidu Cloud,” the fund wrote in an email. “BBE is an open source platform to simplify dApp development. It provides developers with services such as multi-chain and multi-tier frameworks, smart contract, and dApp templates. It also comes with enhanced data security and privacy protection and will be compatible with Baidu’s existing cloud services.”

Purchasing EMQQ provides exposure to companies that are positioned to benefit as emerging economies mature the consumer class expands and their populations increase their utilisation of the Internet and e-commerce.

The fund provides broad-based exposure to some of the big names in technology overseas like Baidu. In a late market cycle, these equity investors could instead take a look on an international level once the United States leaves this continuous bull run.
As reported by ETF Trends:

“The U.S.-China trade impasse heavily discounted a lot of U.S. equities the past few weeks, but it also put the red tag sale on emerging markets (EM). Combine the tariff battles with a cautious U.S. Federal Reserve, and it puts the EM space at an attractive valuation relative to its peers.”

A lot of investors might have been driven away by the losses in EM throughout last year but more experienced traders saw EM as a substantial markdown if they were quick enough to seize the opportunity.
Christopher Franz, a senior analyst for Morningstar’s for equity strategies noted that:

“Emerging markets have been so unloved lately. This would be a great time for investors to rebalance EM stocks back into their portfolio.”

Source: Crypto Daily