After remaining range-bound for over one week, the cryptocurrency market has entered into a correction phase. The sell-off was triggered by the news that a Bitcoin wallet address, which was holding 111,114 Bitcoins (BTC), worth about a billion dollars, has moved more than $100 million worth BTC to exchanges such as Bitfinex, Binance, and Mitmex.
The wallet in question was loaded with Bitcoins (BTC) in July 2011. By the end of 2014, the coins were grouped into smaller packets and sent to various exchanges. The address is also believed to have some links with the Silk Road (former drug bazaar in the dark web which was shut down by the US authorities). The movement has created doubts about the possibility of a large-scale selloff. As Bitcoin became jittery, Altcoins started collapsing, however, governments and private enterprises continue to proceed with their plans as discussed below.
Government level initiatives
In its 2017-18 annual report, the Securities and Exchange Board of India (SEBI) has revealed that it has organized overseas tours for its officials to gain in-depth knowledge of cryptocurrencies and initial coin offerings (ICO). The Indian regulator has stated that the officials have taken similar “study tours” in the past to gain a better understanding of cryptocurrencies and ICOs.
The officials, according to SEBI, have visited Japan’s Financial Services Agency (FSA), the Swiss Financial Market Supervisory Authority (FINMA), and the UK Financial Conduct Authority (FCA). A document released by SEBI states that the overseas study took place to assist officials “engage with the international regulators and gain a deeper understanding of the systems and mechanisms.”
Teaching course to train Blockchain specialists
In partnership with the Hong Kong-based IoT and blockchain startup Waltonchain and Korean Standards Association (KSA), the Ministry of Technology and ICT of South Korea has started a six-month training course to turn forty-two applicants into “blockchain specialists.” The program is aimed to increase the availability of skilled professionals in South Korea’s fast-growing blockchain sector.
Iranian government legalizes cryptocurrency mining
Sanctions have pushed the exchange rate of Iranian rials to a historical low of 138,000 to the dollar. To escape from the onslaught, people are resorting to the purchase of cryptocurrencies and Bitcoin in particular. The price of Bitcoin hit $26,000 in Iran, representing a premium of $19,000 over the global market rate. Ethereum is likewise sold for $1050, compared with $220 in the global cryptocurrency market.
Iran has been treating investments in cryptocurrencies as illegal up until last week but it is however no longer the case, and the government has now legalized cryptocurrency mining. Furthermore, the government has expressed its intention to issue guidelines regarding cryptocurrency trading and investing by the end of this month. Iran believes that this will enable its citizens to mitigate the adverse effects of the US sanctions considerably.
Private sector initiatives
Cryptocurrency wallet provider, Abra, has facilitated direct buying and selling of cryptocurrencies through European bank accounts. Abra, which currently offers twenty-eight cryptocurrencies for consumers across the globe, has started supporting Single Euro Payments Area (SEPA) bank accounts. Through a tweet, the company has disclosed the launch of the app supporting the purchase of cryptocurrencies through European bank accounts. Customers of Abra will now be able to transfer euros or other major fiat currencies directly to the wallet, and then convert it into any of the twenty-eight cryptocurrencies supported by the firm.
Near real-time international transactions now a reality
IBM has introduced a Stellar blockchain-powered payment network named “Blockchain World Wire (BWW)” which facilitates “near real-time” international settlements between banks. According to IBM “the solution uses digital assets to settle transactions — serving as an agreed-upon store of value exchanged between parties — as well as integrating payment instruction messages.” IBM further stated that funds could be transferred at a relatively low cost and a quicker speed than conventional banking. The payment solution is now perceived as a threat to Ripple’s blockchain-based real-time gross settlement system.
PBoC tests their Blockchain trade finance platform
The People’s Bank of China (PBoC) has officially started testing its blockchain trade finance platform, dubbed “Bay Area Trade Finance Blockchain Platform.” The Shenzhen Central Sub-branch of the People’s Bank of China and the central bank of the People’s Republic of China have started piloting the blockchain platform, which has been built to facilitate trade and financing activities, for example, trade financing and accounts receivable. The platform also allows real-time monitoring of all the financial activities conducted through the platform.
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