€750mln. ‘Eco-Friendly’ Loan Issued Via Blockchain

€750mln. ‘Eco-Friendly’ Loan Issued Via Blockchain
August 13, 2019

 

The cryptocurrency market has once again turned red after Bitcoin (BTC) failed to cross above $12,000. At the time of writing this article, Bitcoin was trading at $11,363.47, down 0.4% in the past 24 hours. The US Internal Revenue Service (IRS) has sent warning letters to over 10,000 cryptocurrency traders. That may be one of the reasons for the weakness seen in the cryptocurrency markets. Ethereum (ETH) is another major altcoin, which has lost 1.8% in the past 24 hours to trade at $209.44. Ripple (XRP) has lost 1% to trade at $0.2987.

Other altcoins which have lost ground in the past 24 hours include Leo (LEO-$1.26, -2.9%), (LTC-$84.73, -4.0%), EOS (EOS-$4.04, -2.3%), Monero (XMR-$90.63, -0.7%), Bitcoin Cash (BCH-$328.79 -2.2%), Huobi (HT-$5.05, -1.9%), and OKB (OKB-$3.04, -5.0%), Cardano (ADA-$0.0516, -3.0%) and Stellar (XLM-$0.0759, -1.8%), Cosmos (ATOM-$3.29, -8.3%), Dash (DASH-$102.99, -1.9%). Notably, Tron (TRX), which is trading at $0.0206, has gained 0.9% in the past 24 hours.

 

Government level initiatives

NJ Blockchain Initiative Task Force bill has been approved

Phil Murphy, New Jersey Governor, has passed bill S2297, which allows the establishment of New Jersey Blockchain Initiative Task Force. The main intention of the task force is mainly to explore blockchain solutions for the betterment of the state.

The working group will look at the pros and cons of blockchain and distributed ledger technology, public and private blockchains, consensus algorithms,  current ventures, real-world use across the globe, technology’s impact within the state, and the regulations that need to be amended for safe and paper-free document maintenance. The working group is made up of 14 members who are nominated by government officials holding prominent positions.

With 180 days from the first convention, the task force will submit its report, including a detailed analysis of cost-benefits that can be achieved through the incorporation of blockchain technology in government organizations, and also the working group’s suggestions on implementing such blockchain solutions.

The working group will be led by Chris Rein, states Chief Technology Officer. Rein stated that he was “excited to evaluate and help shape how our state government can best use, and optimize, blockchain technology.”

Senator James Beach, who tabled the bill, expressed his confidence that blockchain will be adopted by the local government to improve security: “In an age where digital information needs protecting, blockchain is a technological innovation that will protect us from hackers and those seeking to steal our information […] I believe that whatever the taskforce decides, there is a place for blockchain to be used in local governments to protect them from the ever-increasing dangers of the Internet.”

 

Private sector initiatives

Dürr receives a €750 million loan through a blockchain-powered platform

Renowned mechanical and plant engineering company, Dürr, having head-quarters in Germany, has received a loan of €750 million through a blockchain-powered platform. The interest on the sustainability loan is directly correlated to its eco-friendly activities.

Dürr initiated the credit deal using a syndicated loan platform based on blockchain. Digitization of the consortium procedure was carried out with blockchain support.

Green finance or sustainability project funding is slowing gaining momentum and offers advantages to lenders and investors in the prevailing economic scenario. Dürr’s recent deal arrives only two weeks after it disbursed a 200 million euro sustainability “schuldschein,” a well-known German funding tool.

Both deals are dependent on the company’s sustainability rating, as provided by the Ecovadis agency. This takes into consideration ecological criteria such as water intake, working environment, among others, and impacts the loan’s rate of return.

The participants in the blockchain-based credit deal include 13 banks from Asia, Europe, and the US. The procedures of the consortium were digitized using software offered by Targens. Participants to the transaction established digital identities, which is later utilized to validate the electronic signing of documentation and other related agreements.

Carlo Crosetto, Dürr chief financial officer, said: “The digital identity check increases security, and the process is faster.”

 

Blockstream releases details surrounding its mining services

The Blockchain startup Blockstream has published the details regarding its mining services. The company has stated that it owns two large data centers for enterprise-level co-location services, together with Blockstream Pool, utilizing the BetterHash protocol. The intention is to ensure Bitcoin (BTC) network’s decentralization. The data centers, which are located in Georgia and Quebec, utilize 300 megawatts of energy. At its peak capacity, with the latest mining rigs in place, the data center would account for 7.5% of the entire network hash rate.

Blockstream also offers a readymade solution for establishing and maintaining mining hardware of clients in a location close to data centers. Clients can administer mining rigs remotely, and perform real-time analysis of each rig’s operation. The mining service presently targets enterprise and institutional clients. Fidelity Center for Applied Technology, which applied for a New York Trust License in July, is one of the early customers of Blockstream.

 

Miscellaneous

15 Global jurisdictions unite to launch a crypto transaction tracking system

Roughly 15 jurisdictions across the globe, including some of the G7 nations, have joined together to build a cryptocurrency transaction tracking system to avert illegal use of cryptocurrencies. Furthermore, the Financial Action Task Force (FATF) intends to establish comprehensive measures by 2020.

The planned system will fetch and share personal info on individuals who perform cryptocurrency trades in order to avoid illegal use of cryptocurrencies, including money laundering and terrorist funding.

Even though several countries have not introduced regulations for dealing in cryptocurrencies, the latest global initiative is anticipated to expedite the creation of global regulatory guidelines for cryptos.

Once the policy is introduced in 2020, a series of measures will be added to track cryptocurrency dealings.

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.

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Andrew Wright

Prior to founding tradersasset.com in 2014, Andrew worked as a proprietary trader, then as a market maker. As a market maker, he traded options in over 100 stocks, he then began trading currency pairs in 2013. Andrew still actively trades both, and prides himself on educating and informing traders on the benefits of both Binary Options and Forex.


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