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  • @fintechna 12:19 am on April 30, 2017 Permalink | Reply
    Tags: , , AllTime, , Confidence, , cryptocurrency, , ,   

    Confidence in Crypto Surges As Bitcoin, Ether Hit New All-Time Highs 

    has, once again, smashed a record. The hit a new all-time high yesterday, rising to about $ 1,343, while its younger cousin &;the currency traded on Ethereum&8211;also logged a new record when prices rocketed over $ 60. The price hikes come amidst a rising period of and excitement for cryptocurrency enthusiasts, emboldened due to recent [&;]
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  • @fintechna 12:18 am on March 27, 2017 Permalink | Reply
    Tags: , , , cryptocurrency, , , ReHash   

    Bitcoin, Don’t ReHash Old History 

    Hard fork &; the two words you need to start an on-going, industry-wide debate in . Most of the time, the debate surrounds the of Ethereum, and its old, but still contested, decision to hard fork in order to prevent the succession of a hack. However, due to recent statements by currency exchanges, the possibility [&;]
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  • @fintechna 12:18 am on March 22, 2017 Permalink | Reply
    Tags: , , , cryptocurrency, , , , Souftjourn   

    Souftjourn Demoes Cryptocurrency for Employee Rewards 

    and offer many potential benefits to banking customers, such as faster and more secure cross-border payments. But how about bank employees? A software development company Softjourn demoed “SJ Coins” (or Softjourn Coins)&; a system for employees&8211; at the FinDEVr conference today. “Employees received an account and an equal number of coins; the first thing they could [&;]
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  • @fintechna 12:18 am on March 5, 2017 Permalink | Reply
    Tags: , , cryptocurrency, , , ,   

    Bitcoin Is Now Worth More than Gold 

    : $ 1,252.91. : $ 1,239.20. Guys. That’s right: currently, bitcoin is an ounce of gold (but you should probably keep buying gold). Gold, upon which we pretty much based our entire system of financial exchange. The only other time this has happened since bitcoin’s creation by anonymous legend Satoshi Nakamoto—who may or may [&;]
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  • @fintechna 12:18 pm on January 5, 2017 Permalink | Reply
    Tags: #Bitcoin1000, , , cryptocurrency, ,   

    How Long Will #Bitcoin1000 Last? 

    certainly celebrated the New Year right. Crossing over into 2017, the original topped $ 1,000 US in value, just in time for its birthday (yesterday marked the anniversary of the day the genesis block of the bitcoin was created by the still-elusive Satoshi Nakamoto.) This also marks theRead More
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  • @fintechna 12:18 am on December 30, 2016 Permalink | Reply
    Tags: , , , cryptocurrency, , Patenting,   

    Creating a ‘Blockchain Industry:’ Patenting the Blockchain 

    Patent filings for have more than tripled since 2014; this spike includes patents filed by exchanges such as Coinbase, payment processors like Mastercard, and like Goldman Sachs and the Bank of America. According to a report conducted by law firm Reed Smith, the most popular areasRead More
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  • @fintechna 3:35 pm on December 20, 2016 Permalink | Reply
    Tags: , , , , , , , Books, Christmas, cryptocurrency, , , , ,   

    12 New Fintech Books To Offer This Christmas 

    is coming and if you are a junky, you might want to ask your friends, boss and relatives for one (or more) of the following fintech .

    These books, which have all been released in the past six months, cover every aspect of fintech from digital payments, mobile to and Big Data.

    For books that were released earlier, you can check article or have a look on our Fintech Book Page.

    12 New Fintech Books To Offer This Christmas fintech

    Blockchain: Blockchain, Smart Contracts, Investing in Ethereum, FinTech

    by Jeff Reed

    12 New Fintech Books To Offer This Christmas fintechBlockchain: Blockchain, Smart Contracts, Investing in Ethereum, FinTech by Jeff Reed combines four of his best-selling books, all covering blockchain technology and fintech. These are:

    Blockchain: The Essential Guide to Understanding the Blockchain Revolution

    Blockchain is far more than technology, and even in its infancy, it is taking the world by storm, from major to the U.S. Department of Defense. This book is a comprehensive guide to blockchain, helping you understand what it is and why it matter.

    Smart Contracts: The Essential Guide to Using Blockchain Smart Contracts for Exchange

    This book explains the fundamentals of Smart Contracts and how they work. The practical uses of Smart Contracts are enumerated in this book and you will also learn how you can make your own Smart Contracts in the Ethereum system. You will also get tips on how you can make your Smart Contacts easy to understand and user-friendly. This book also covers some of the myths surrounding smart contracts and the reasons why they exist.

    Investing in Ethereum: The Essential Guide to Profiting from Cryptocurrencies

    This book explains the reasons to invest in Ethereum and not just because of the potential ROI, but also the benefits of cryptocurrencies in themselves. The overall risks, obstacles, and major changes in Ethereum will also be addressed. There are over 1,000 cryptocurrencies that currently exist, it’s important to choose wisely and understand everything you can if you’re going to be putting real money into the blockchain.

    FinTech: Financial Technology and Modern Finance in the 21st Century

    This book will introduce you to the basics of FinTech and equip you with the knowledge to get on the cutting edge of age we live in today. It covers the impact of fintech on the global economy, the payment ecosystem, fintech solutions in the business-to-business sector, fintech and investing, and much more.

     

    FinTech: The Beginner&8217;s Guide To Financial Technology

    by Jacob William

    12 New Fintech Books To Offer This Christmas fintechThe term “FinTech” is shrouded a mystery, even to more tech-savvy individuals. Since it’s such a new innovation, much about it, as well as where it’s heading is still unknown.

    In FinTech: The Beginner&8217;s Guide To Financial Technology, Jacob William explains what FinTech is, why it matters to everyone, future predictions about it, possible dangers, and its origins and history.

    This book will give you the information you seek in a digestible and easy-to-follow format. No prior knowledge of technical subjects is necessary because understandable examples are given throughout.

    Learning more about something that is so prevalent in our society is undeniably beneficial whether you are a business owner, technology enthusiast, or just a curious layman.

     

    FinTech: The Impact and Influence of Financial Technology on Banking and the Finance Industry

    by Richard Hayen

    12 New Fintech Books To Offer This Christmas fintechWe’re in the middle of the FinTech revolution, and it’s a big one. Everything that we know about the world of finance is changing before us. Innovation is constantly happening. FinTech: The Impact and Influence of Financial Technology on Banking and the Finance Industry is going to help you get up to speed on all of the change that’s happened and the things that are important right now.

    This book is going to teach you about several things, including the fintech sector and its impact on traditional banking, on the global economy, and on the world at large.

    It will teach you about cryptocurrencies such as bitcoin, blockchain technology, -advisors, peer-to-peer lending, crowdfunding, but also about the state of FinTech and where it is heading.

     

    Blockchain: 4 Manuscripts—Blockchain, Fintech, Investing in Ethereum, and Smart Contracts

    by Oscar Flynt

    12 New Fintech Books To Offer This Christmas fintechBlockchain: 4 Manuscripts—Blockchain, Fintech, Investing in Ethereum, and Smart Contracts combines four of Oscar Flynt&;s books covering blockchain technology, fintech, Ethereum and smart contracts:

    Blockchain: The Ultimate Guide to Understanding the Hidden Economy

    Blockchains are changing everything from banking, shopping, peer-to-peer exchange, and our daily lives as a whole. Those who learn blockchain and how to utilize them will have a preemptive jump on their competition. You’ll discover how to use them, their shortcomings, all about smart contracts, and much more.

    FinTech: Understanding Financial Technology and its Radical Disruption of Modern Finance

    This book covers everything from future trading, online banking, conducting business, daily living, and much more. You’ll discover the exciting opportunities that await in the coming years and how you can capitalize on them.

    Investing in Ethereum: The Ultimate Guide to Learning—and Profiting from—Cryptocurrencies

    Ethereum is one of the most profitable and promising platforms to trade cryptocurrency on to date. In this book you’ll learn all about this amazing platform, how to trade on it, how set up smart contracts, and how to program the right software to use it.

    Smart Contracts: How to use Blockchain Smart Contracts for Cryptocurrency Exchange

    Smart contracts are speculated to lower legal disputes, re-structure banking and finance, and change the way people shop and make money forever. This book will teach you how to create them.

     

    Bankruption: How Community Banking Can Survive Fintech

    by John Waupsh

    12 New Fintech Books To Offer This Christmas fintechCommunity banking can flourish in the face of fintech and global competition with a fresh approach to strategy. Bankruption: How Community Banking Can Survive Fintech offers a survival guide for community banks and credit unions searching for relevance amidst immense global competition and fintech startups.

    Author John Waupsh is the Chief Innovation Officer at Kasasa, where he helps spearhead financial product development and implementation across hundreds of institutions.

    In this guide, he draws on more than a decade in the industry to clear, practical advice for competing with the megabanks, direct banks, non-banks, and financial technology companies.

     

    Fintech: Financial Technology Beginner Guide CherryTree Style

    by Mark Jobs

    12 New Fintech Books To Offer This Christmas fintechFinTech, or financial technology, a financial technology service industry, is defined as &;innovation in financial services&; by National Digital Research Centre. With $ 138 billion market opportunity in the United States, FinTech has become a hot topic for entrepreneurs, visionaries and investors. However, with it&8217;s rapid growth, little in-depth information can be found regarding to FinTech, especially the relationship between FinTech and wealth management.

    Fintech: Financial Technology Beginner Guide CherryTree Style aims at demystifying fintech, providing a comprehensive overview of the industry, the impact of fintech in different sectors, the leading fintech players, among other things.

     

    Blockchain: Blueprint to Dissecting The Hidden Economy!- Smart Contracts, Bitcoin and Financial Technology

    by Tony Scott

    12 New Fintech Books To Offer This Christmas fintechBlockchain: Blueprint to Dissecting The Hidden Economy!- Smart Contracts, Bitcoin and Financial Technology provides informative and easy tips that will let you know everything you need to know about the hidden economy and how to capitalize on this amazing technology.

    The book covers blockchain technology, smart contracts, fintech, among many other topics.

    It breaks training down into easy-to-understand modules and starts from the very beginning of blockchain, so you can get great results &; even as a beginner.

     

    Digital Banking Tips: Practical Ideas for Disruptors! 2nd Edition

    by Tolga Tavlas

    12 New Fintech Books To Offer This Christmas fintechDeveloping a digital banking presence is a daunting task, especially when you consider the financial resources and education needed to achieve telephone, online, mobile, and other digital banking capabilities.

    Digital Banking Tips: Practical Ideas for Disruptors! 2nd Edition is a quick and easy read that provides you with tips that are simple to implement, and which will help you through the process.

    Even if your company has been offering digital banking services, this book can help you build out that part of your business further by assisting with areas such as identifying users&8217; needs, increase usage, improve systems, multi-channel business needs, among other topics.

     

    Blockchain: The Comprehensive Guide to Mastering the Hidden Economy

    by Timothy Short

    12 New Fintech Books To Offer This Christmas fintechBlockchain: The Comprehensive Guide to Mastering the Hidden Economy provides you everything you need to know about blockchain technology including how it was created and where it is likely to be headed in the near future.

    You will also learn how to tell if a blockchain distributed database can replace your current database as well as how to create one and common mistakes to avoid while doing so.

    In this book, you will find:

    • Arguments against blockchain and how and why they are misguided
    • The best ways to put blockchain to use for you
    • The many impressive uses for smart contracts and even how to make your own
    • And much more…

     

    Frontiers of Financial Technology: Expeditions in future commerce, from blockchain and digital banking to prediction markets and beyond

    by David Shrier (Author), Alex Pentland (Editor)

    12 New Fintech Books To Offer This Christmas fintechFinancial technology innovation has exploded in the popular consciousness, and promises a radical transformation of the global financial services industry. Over US$ 20 billion is expected to be invested in fintech projects in 2016.

    MIT Professor Alex Pentland is joined by fintech intrapreneur and educator David Shrier in curating an exploration of several major trends and technologies that are changing the face of financial services.

    Co-authors include Deven Sharma, the former President of S&P, and Alex Lipton, the former head of quantitative analytics for Bank of America Merrill Lynch.

    From blockchain to artificial intelligence, this series of articles helps the reader grapple with this exciting area of technology innovation.

     

    Blockchain: Quick Start Guide to Understanding Blockchain, the Biggest Revolution in Financial Technology and Beyond Since the Internet

    by Seth Ramsey

    12 New Fintech Books To Offer This Christmas fintechBlockchain is a revolutionary technology that was created for bitcoin, but has since found a wide variety of other applications from ecommerce and retail, to securing health care records, to maintaining all kinds of important databases.

    Chances are your life has already been impacted by a blockchain database. The influence of blockchain continue to grow exponentially in the coming years, leading some people to call it the greatest technological revolution since the internet.

    Blockchain: Quick Start Guide to Understanding Blockchain, the Biggest Revolution in Financial Technology and Beyond Since the Internet provides a quick start to understanding how blockchain technology works. The book explores the opportunities and challenges related to distributed ledgers and what&8217;s to expect in the future for the technology.

     

    Fintech: Financial Technology &8211; 2 Manuscripts &8211; Bitcoin & Blockchain

    by Luke Sutto

    12 New Fintech Books To Offer This Christmas fintechFintech: Financial Technology &8211; 2 Manuscripts &8211; Bitcoin & Blockchain combines two books:

    Bitcoin Trading &8211; A Complete Beginner&8217;s Guide

    Bіtсоіn Trаdіng: A Beginner’s Guіdе to a Strategic Trading & Invеѕtіng offers іnѕіghtѕ into this vital subject mаttеr rеlаtіng to financial іndереndеnсе. Thіѕ book рrеѕеntѕ an exploration into thе іntrісаtе but profitable wоrld оf Bіtсоіn trаdіng thrоugh аn еxрlісіt аnаlуѕіѕ оf the nіttу-grіttу as wеll аѕ expounding on its mоduѕ operandi ѕо as tо bеttеr еduсаtе trаdеrѕ аnd investors аlіkе оn thе bеѕt роѕѕіblе wауѕ tо mіnіmіzе thеіr rіѕkѕ whіlе аt the same tіmе, rеwаrdѕ аrе bеіng mаxіmіzеd.

    Blockchain &8211; A Complete Beginner&8217;s Guide

    Bitcoins as a game changer have virtually set people&8217;s imagination into flight. Bitcoins are based on the blockchain technology. Increased exploration of the further uses of blockchain technologies have showed that there is immense promise in blockchain technologies.

    The post 12 New Fintech Books To Offer This Christmas appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

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  • @fintechna 3:35 am on December 13, 2016 Permalink | Reply
    Tags: Cinema, cryptocurrency, , Financed, , , Movie, Very   

    The Very First Ethereum Financed Movie For Cinema 

    The Very First Ethereum Financed Movie For Cinema fintechThis autumn the Pitts Circus announced to produce the movie for , TV and VOD in 2017. The film which is going to be presented on film festivals and cinemas in 2018 will bring a long term benefit to the Ethereum ecosystem and will bring in new people into the crypto currency space.

    The movie corporation who collected Ether from Ethereum investors trough a smart contract recently announced lots of B2B cooperations, sponsoring and product placement deals, which will support the production process of the first Ethereum based Independent movie.

    While the first scenes are going to be shoot from the end of January 2017 in West-Australia the Pitts Circus team used the last month to coordinate some important business deals to make the movie look and feel like a crypto-related film. While the Pitts Circus Family (a popular artist family from Australia) will head the cast the movie production the production team around Tony Caradonna signed with Matto Kämpf and Carlos Henriquez movie actors who already have years of TV & film experience. Mera film, a swiss based digital cinema production company supports the production progress and will help to bring a high-quality movie in 2018 to film festivals followed by international cinemas all around the world.

    The Very First Ethereum Financed Movie For Cinema fintech

    The Ethereum based project closed some important business deals in the last time. In the last month the team closed several sponsoring and product placement deals. Ledger Wallet, will come up with a new version of their cold wallet soon. The hardware wallet, which will also support smart contracts will be part of the movie. Also Trezor Wallet confirmed to support the first Ethereum founded movie in terms of sponsoring and product placement. The Pitts Circus movie recently also received financial support from bilinguisme.ch

    The Very First Ethereum Financed Movie For Cinema fintechThe movie production announced to feature Ether Card products in their film. Customized Pitts Circus Ethereum gift cards are available to give away shares of the movies venture as a present. While the team works on more B2B deals inside the crypto space they also brought other companies to the scene who are going to sponsor the crypto related film.

    The Giant Squid Audio Lab Company, who produces high fidelity microphones will spons o r the mov i e and many mo r e cooperations are on negotiations. Moreover the project signed the experienced sound engineer Rainer Jesky from Berlin.

     

    The Very First Ethereum Financed Movie For Cinema fintechFirst results of production will be shown on the COVAL/ VOCAL podcast early next year. The movie will also include a COVAL placement (Circuits of Value ). It will be the first movie which shows the innovative use case of storing and sending cryptocurrency inside a MP3 file or ordinary usbsticks. The movie soundtrack is in progress but independent musicians will be able to upload their music on the aurovine platform (Audiocoin cooperation) and the audience will decide which music will be part of the film.

    In sum the Swiss movie production was able to collect financial resources, equipment and human labour time of more than 80,000 USD. Parts of it come from donations during the summer, followed by their first sold smart contracts (Ether investment) as well from closed business deals with sponsors and partners. There will be some more deals signed in the next weeks. Currently the project also announced a partnerships with other companies e.g. Mycolab or Aardvark Film Emporium.

     

    The Very First Ethereum Financed Movie For Cinema fintechTony Caradonna producer of the Pitts Circus movie also announced, that there will be an Ethereum Movie Venture coin in future. This coin will be used to give out the yearly movies (ETH) dividends, while the investment can be traded on exchanges. One reason for this action was the wish of many investors to make the investment able to trade on a short-term basis. Moreover, the Ethereum Movie Venture coin will be used to produce more independent film project and eventually provide a ethereum based VOD solution.

    Right now the the team is exited to see so much progress and support all over the world and would like to thank all partners and the international community members who are supporting the production process. In that way the Pitts Circus movie also cherish the work of Jose Antonio Leon Rojas, Ludwig Amadeus Moncrieff and the team of Social Husky international who support the project from Venezuela, who will produce merchandise material for film festivals.

     

    The post The Very First Ethereum Financed Movie For Cinema appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

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  • @fintechna 12:19 am on December 4, 2016 Permalink | Reply
    Tags: , , Chris, Corda, cryptocurrency, Larsen, , , ,   

    In Blockchain News: R3 Releases Corda, Chris Larsen Talks Ripple 

    Welcome to another crazy week in ! There’s been a lot for enthusiasts to digest this week, but let’s start with consortium . The R3CEV blockchain consortium of opened its codebase up to the larger developer community this week, in the hopes that independent experiments based onRead More
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  • @fintechna 3:35 pm on December 2, 2016 Permalink | Reply
    Tags: , , , , , , , , cryptocurrency, , , , ,   

    Blockchain Technology – Opportunities and Challenges- Speech by Deutsche Bundesbank 

    Keynote Speech at the 6th Central Banking Workshop 2016 by Carl-Ludwig Thiele, Member of the Executive Board of the Deutsche Bundesbank.

    Introduction

    I would like to warmly welcome you to the 6th Central Banking Workshop. I am delighted that we have been able to attract such top-class speakers and participants to this event, who, given their experience and knowledge, are able to provide valuable contributions on what is a highly topical subject. This year, the workshop is about , which has generated a large swell of public interest, or even hype, one could say.

    With our workshop, entitled &;Blockchain technology – opportunities and challenges&8220;, we want to enable a lively exchange between researchers, practitioners and regulators. Each of these groups, in its own right, has a keen interest in this topic. But, as Ernst Ulrich von Weizsäcker once said: &8220;An exchange of views requires people to talk to each other, not about each other&;. In this spirit, I hope that we will have a stimulating exchange of views over the coming days.

     

    Blockchain Technology – Opportunities and Challenges- Speech by Deutsche Bundesbank fintech

    Blockchain technology is currently generating almost exuberant enthusiasm among , enterprises and public bodies. New initiatives and cooperation agreements on blockchain applications are being announced in the financial press on a near daily basis. This is not limited solely to banks and private enterprises, but also encompasses projects by governments and central banks.

    Examples of such cooperation agreements can be found on all of the world’s continents. Beside Fintechs and other startups, participants include the Bank of England, stock exchanges in the United States, Australia and Japan, as well as numerous commercial banks, to name only a few. Even an aircraft manufacturer, Airbus, is exploring blockchain for the purpose of process optimisation.

    Structure and Objectives of The Workshop

    How is it that a relatively complicated form of technical processing is generating such enthusiasm?

    In this workshop we want to address this question by talking about the possibilities that blockchain technology opens up and the this presents.

    This is anything but a trivial undertaking. Indeed, views on these possibilities and challenges vary greatly from person to person, but also among institutions. At present, there is no telling whether blockchain will supersede existing technology in a few years’ time. All the more reason, therefore, is to examine this technology and its implications in detail and gather key insights about it. This is true, not least, for central banks and regulators. So what lies behind this technology?

    Even when it comes to a basic definition, we see that the word blockchain is not always used to mean the same thing. Often, the term &8220;distributed ledger technology&8221; is used as a synonym for blockchain. If we regard distributed ledger technology as the principle behind distributed databases, blockchain represents a sub-category thereof. However, there is, as yet, no uniform definition of the term.

    Blockchain Technology – Opportunities and Challenges- Speech by Deutsche Bundesbank fintech

    Image: Stock market chart by bluebay via Shutterstock.com.

    An elementary understanding of the technology is a prerequisite for discussing its potential, which is why module 1, entitled &8220;Blockchain – basics, technological achievements and general potential&8221;, is dedicated to this question.

    Blockchain became known, above all, as the technology behind the . The term is derived from the fact that transactions are grouped together in &8220;blocks&8221;. These blocks are chained together through a complex mathematical procedure that is unforgeable and tamper-proof.

    Essentially, blockchain allows a ledger of transactions to be run on a decentralised basis within a network. The technology therefore enables the safe transmission of all manner of assets (not just bitcoin), without the need for confirmation from a central institution. With blockchain, reconciliation between participants occurs automatically. But what are we to do with this technical innovation?

    Plato once said that: &8220;Necessity is the mother of invention&8220;. But in the case of blockchain, we are seeing the exact opposite. The invention, ie blockchain, has already been born. Now people in many places are searching for the necessity – for the specific cases where it can be applied in practice.

    Blockchain-based technologies offer up the chance of simplifying complex intermediation processes for payment and settlement activities. Virtually all payment service providers are therefore currently looking for ways to apply this technology. Its use in payment transactions is an obvious choice, as the cryptocurrency bitcoin has already been created for this purpose.

    But does it make sense to use blockchain in this of all areas? And in what form should it be used in the area of payment transactions? These questions will be addressed in module 2 of the workshop: &8220;Possible business cases for payments&8221;.

    Payment transactions based on blockchain inevitably also raise the question of virtual currencies. Bitcoin was created shortly after the outbreak of the financial crisis and was intended to serve as a countermodel to the prevailing financial system. At first, bitcoin fired many people’s imagination and led some to expect a revolution in the financial system. It seemed conceivable that banks or even central banks could be bypassed and that a genuine &8220;gold standard&8221; could be created, based on bitcoin and independent of politicians and central banks. In addition to bitcoin, over 700 other virtual currencies have been created. However, none of these virtual currencies have managed to move beyond a niche existence.

    The blockchain used to transmit bitcoins needs to be considerably altered to make it suitable for financial transactions. It is unclear whether the core problems of blockchain in terms of performance, scalability and security can be solved to allow a broad market rollout.

    The question of the future of bitcoin and digital currencies in general will be examined in more detail in module 3: &8220;Bitcoin – a promising alternative for payments?&8221;

    Blockchain Technology – Opportunities and Challenges- Speech by Deutsche Bundesbank fintech

    Image credit: Golden Bitcoins by Julia Tsokur via Shutterstock.com

    It is interesting to see how the public debate has developed since the early days of bitcoin. Efforts are now centred on evolving blockchain into a basic technology capable of facilitating allocation processes across companies. The potential users of this technology are often precisely those institutions which the creation of bitcoin was originally designed to make superfluous.

    In addition to its application in payment transactions, numerous blockchain-based applications are being developed for securities settlement. Possible advantages from the use of blockchain technology arise not only from the technology itself, but also through process optimisation and potential disintermediation in this area.

    Securities settlement has improved considerably in recent years, especially in Europe. However, this development is not yet complete, as the settlement landscape remains complex and is characterised, in part, by convoluted processes. Although we trade securities within nanoseconds, we need several days to settle these transactions.

    We will take a closer look at securities settlement in module 4, entitled &8220;Possible applications and its potential in the post-trade industry&8220;.

    Blockchain Technology – Opportunities and Challenges- Speech by Deutsche Bundesbank fintech

    Image credit: Bitcoin by 3Dsculptor, via Shutterstock.

    These numerous questions and potential radical changes on the financial markets present us, as a central bank, with particular challenges – in payment transactions, securities settlement and beyond. The workshop therefore focuses on the special role of central banks in module 5, entitled &8220;Blockchain – a central bank perspective&8220;.

    As a central bank, we are faced with the question of how to deal with blockchain technology. In settlement, we are affected in two ways. As an operator of central payment and securities settlement systems, we also need to think about the future development of these infrastructures, despite the high performance systems already in existence. Blockchain-based technologies must be integrated in such a way that they provide added value. Indeed, as entrepreneur and politician Philip Rosenthal once said: &8220;He who ceases to be better, ceases to be good&8220;.

    From the perspective of oversight, we need to keep a careful watch on current developments and intervene if necessary. A deep technical understanding is necessary in order to respond appropriately to new business models from a regulatory perspective.

    The two decisive criteria that we need to measure distributed ledger and other new technologies by are the following.

    &; First, does using the new technology improve the security of the systems or at least not make it worse?

    &8211; And second, does the use of new technologies increase the efficiency of financial market infrastructures?

    Current Developments and Outlook

    Many enterprises and institutions currently working on blockchain-based solutions expect to reap great benefits from them. Blockchain technology holds out the promise of cost savings, de-risking potential and efficiency gains. This includes, among other things, the automation of work-sharing processes as well as faster processing and the fulfilment of contractual obligations via smart contract solutions.

    One positive effect that can already be seen is industry-wide cooperation. Dialogue between various market participants on future market developments can foster mutual understanding and facilitate the harmonisation of processes. This makes it possible to adequately react to the challenges posed by new technologies. This is of importance in the financial industry, in particular, which is characterised by network effects.

    Blockchain Technology – Opportunities and Challenges- Speech by Deutsche Bundesbank fintech

    Via Pixabay

    That said, one should not simply gloss over the challenges and weaknesses posed by the technology.

    The requirements imposed on regulated providers cannot currently be met by blockchain technology, or can only be met with difficulty. This concerns, for example, the question of how to engineer absolute finality. Furthermore, the know-your-customer requirements need to be observed and the confidentiality of transaction data must be ensured. This is also a reason why the regulatory status of blockchain technology in many countries is still unclear.

    Furthermore, despite the supposedly greater resilience of its decentralised structure, blockchain still has high obstacles to surmount before it can be applied across the board, owing to its susceptibility to manipulation. Recent hacker attacks are a case in point.

    This is another reason why the debate has largely shifted from open blockchain applications, such as bitcoin, to closed networks with a limited circle of participants.

    Conclusion

    Inefficiencies are often perpetuated not by a lack of technology, but by (historical) structures. Blockchain technology is therefore not a patent solution for change, but it does provide an opportunity to make change.

    Disruptive technologies require time to develop, mature and unfurl their full potential. Not every innovation succeeds, though, and it remains to be seen how the application of blockchain technology will develop.

    Following the revolutionary beginnings with bitcoin, the prevailing view now seems to be that blockchain applications will spread rather more gradually. One might therefore speak of evolution rather than revolution. Before we can even ask questions about the broader use of this technology, we must first be sure that using this new technology is at least as secure, efficient and cost-effective in financial transactions as conventional technology.

    Blockchain Technology – Opportunities and Challenges- Speech by Deutsche Bundesbank fintech

    Image: Global Bitcoin Network by Oez, via Shutterstock.

    Blockchain technology could become a game changer, in the financial industry and, perhaps in particular, beyond. The potential of blockchain technology is often compared to that of the internet. It should be remembered that it took some time before the truly beneficial applications of the internet emerged. With blockchain, we are only at the very beginning of a potential development of this kind.

    Innovations are the lifeblood of a continually developing economy. Moreover, evolution processes are never linear. The first great wave of euphoria, which was also seen in the media, is being followed by a phase of checking, weighing-up and consolidation, before new offers and technologies are rolled out on a broad scale.

    Ladies and gentlemen, Goethe once said: &8220;We know accurately only when we know little; with knowledge doubt increases.&8221;

    My impression is that with the increasing efforts being devoted to blockchain technology, doubts will also increase as to whether this technology can meet the expectations being placed on it, which in some cases are extremely high. The question that we want to examine in more detail in this workshop is what specific doubts we have and whether the technology can overcome them.

    I would like to conclude by wishing you all an interesting and, above all, informative workshop.

    Thank you very much for your attention.

     

    About Carl-Ludwig Thiele

    Blockchain Technology – Opportunities and Challenges- Speech by Deutsche Bundesbank fintech

    Carl-Ludwig Thiele &8211; Executive Board of the Deutsche Bundesbank

     

     

     

     

     

     

     

     

     

    The post Blockchain Technology – Opportunities and Challenges- Speech by Deutsche Bundesbank appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.

    Fintech Schweiz Digital Finance News – FintechNewsCH

     
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