German Parliament Permits Banks To Sell, Custody Bitcoin

German Parliament Permits Banks To Sell, Custody Bitcoin
December 3, 2019

 

The cryptocurrency market remains mixed with the majority of altcoins in the red. Bitcoin (BTC), which surged to $7,500 level last week, has dropped 0.2% in the past 24 hours to trade at $7,336.04. Ether (ETH), has also lost 0.5% to trade at $149.20. XRP has dropped 1.7% to trade at $0.2193. Other major altcoins, which have lost in the past 24 hours include TRON (TRX-$0.0153, -2.2%), Litecoin (LTC-$45.69, -3.0%), Ethereum Classic (ETC-$3.88, -0.8%), Stellar (XLM-$0.0559, -1.6%), Cardano (ADA-$0.0382, 1.4%), Bitcoin Cash ($214.22, -0.1%), EOS (EOS-$2.69, -2.5%), Binance Coin (BNB-$15.28, -1.1%), Tezos (XTZ-$1.22, -1.6%), LEO (LEO- $0.9109, -1.2%),  Dash (DASH-$51.62, -3.5%), Cosmos (ATOM-$3.80, -2.1%) and ChainLink (LINK-$2.09, -2.9%). The altcoins (top 20) that have gained ground in the past 24 hours are Monero (XMR-$54.67, 3.1%), Huobi (HT-$2.99, 6.8%), IOTA (IOTA-$0.2083, 2.0%) and OKB (OKB-$2.66, 6.3%).

 

Government level initiatives

Bundestag approves the bill legalizing the sale and custody of Bitcoin and crypto

A bill legalizing the sale and custody of Bitcoin (BTC) and cryptocurrencies by German banks has been successfully endorsed by Bundestag, the German parliament. The bill now requires approval from the 16 states in the country.

Currently, German banks and financial institutions are banned from offering cryptocurrencies for their customers. Approval of the bill by the state will mark a drastic shift in government stance. Notably, the latest version of the bill removes a clause that calls for banks to offer a remedy to external crypto custodians or committed subsidiaries. The process will simplify the crypto-related operations of the bank.

Starting in 2020, financial institutions will be able to offer their customers online banking, virtually at the touch of a button, along with classic securities such as stocks and bonds, as well as cryptocurrencies.”

The country’s blockchain and crypto-related businesses have welcomed the approval of the bill by Bundestag. In this regard, Sven Hildebrandt, Head of Distributed Ledger Consulting, stated as follows: “Germany is well on its way to becoming a crypto-heaven. The German legislator is playing a pioneering role in the regulation of cryptocurrency.”

The Association of German Banks Association, comprising more than 200 financial institutions, has supported the bill saying that regulated financial institutions have adequate experience and risk management systems to protect clients’ holdings. Last month, the Association published a study report asserting that the Euro economy requires a “programmable digital euro.”

 

Power Ledger trialing P2P solar power trading plan in Uttar Pradesh

The Australian blockchain energy firm Power Ledger is trialing a P2P (peer-to-peer) solar power trading endeavor in the Indian state of Uttar Pradesh (UP), the largest state in India with a population of over 200 million. In particular, UP New and Renewable Energy Development Agency, and UP Power Corporation Limited, the state power utility, have joined hands with Power Ledger to pilot a P2P solar energy trading system in order to study the feasibility. The initial phase of the venture is anticipated to be completed by March 2020.

During the test, Power Ledger will combine its blockchain-based system and smart meter systems to facilitate residents with an installed solar facility on the rooftop to fix prices, monitor energy trading, and carry out surplus solar energy trades through smart contracts.

Surplus energy storage is one of the main issues faced while dealing with renewable energy sources such as wind and sun. The venture intends to provide the opportunity for small producers to identify customers of surplus energy and turn renewable sources more feasible. Once the trial is completed, Power Ledger will verify the outcome and supposedly partner with the local government to customize rules such that it favors P2P energy trading.

Uttar Pradesh, which currently has installed photovoltaic energy generation capacity of 12,500 megawatts, is embracing the technology to meet the growing energy demands of the state.

 

Private sector initiatives

IBM applies for blockchain-based patent to protect against drone-based parcel theft

IBM’s latest patent application is for a system that utilizes blockchain technology to defend against drone-based parcel robbery. As per the document released by the US Patent and Trademark Office (USPTO), IBM will trace the height of a drone using an IoT (internet of things) altimeter, while systematically sharing the info to a platform secured by blockchain technology.

In the future, it is quite likely that drones may be used to steal packages. Therefore, a package fitted with an altitude sensor programmed to trigger an alarm on breaching a predetermined altitude limit would prevent the theft of the package using a drone. Once the alarm goes off, the GPS-activated IoT device will pass on the precise location parameters to a tracking gadget. IBM, in it is patent document, highlights unwatched packages that can be easily swindled or damaged completely. The patent document states: “The confluence of the increase in drone use and the increase in online shopping provides a situation in which a drone may be used with nefarious intent to anonymously take a package that is left on a doorstep after delivery.”

 

AdaPay, a payment gateway for vendors launched by Cardano Foundation

A payment gateway, primarily for the use of vendors, has been unveiled by the Cardano Foundation, the organization behind Cardano (ADA) crypto token. The gateway, dubbed as AdaPay, was built by the Cardano Foundation and Coti, an enterprise-level financial solution provider. The platform facilitates vendors to accept ADA as payment with almost instantaneous remittance in any of the chosen 35 fiat currencies to business accounts of merchants. ADA is currently the 12th largest crypto by market capitalization.

On the 23rd of November, the Cardano Foundation and Coti announced their collaboration for the ADA payment gateway. Merchants will be incorporating the payment platform on their website, using a QR-based PoS (Point of Sale) system or AdaPay button.

To facilitate real-time ADA transactions, the platform utilizes Coti’s Universal Payment Solution (UPS) to additionally expand the use cases for the token. The payment solution is anticipated to merge “all existing support systems of traditional payment processors with the added value of digital assets.”  

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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