The cryptocurrency market continues to remain range-bound with a slight bearish bias. Bitcoin (BTC) continues to hover around $3,500 the level. The level of $3,520 is extremely crucial. A break below that level may lead the crypto to $3,290. That would also make several altcoins sink.
One of the reasons for the recent bearishness is the negative opinion shared by Jeff Schumacher, founder of BCG Digital Ventures, during a CNBC-hosted panel in Davos, Switzerland. Schumacher, a big investor in blockchain-focused companies, believes that Bitcoin could drop to zero.
Notably, a lesser-known altcoin named Holo has gained nearly 33% in the past week. The blockchain platform facilitates the creation of P2P applications. The developers are planning to introduce a feature named “signals,” which would allow apps to respond on a real-time basis. This makes the altcoin an excellent long-term bet. The altcoin is currently trading at the dirt-cheap price of $0.0009747. However, there are over 170 billion coins in circulation. So, a cautious approach is required before investing in such projects.
Government level initiatives
Crypto exchanges not categorized as money transmission facilities
The Pennsylvania Department of Banking and Securities (DoBS) has officially announced that Cryptocurrency exchanges and ATMs will not be categorized as money transmission facilities. DoBS issued the clarification after receiving numerous requests from enterprises to clarify the former’s position with regard to crypto-related businesses. The clarification was issued after carefully considering the applicability of the Money Transmission Business Licensing Law of Pennsylvania or the Money Transmission Act (MTA).
To operate as a fiat remittance service provider in Pennsylvania, an entity should compulsorily obtain an MTA license and charge a fee for the service offered. As none of the US districts have announced cryptos as legal tender, DoBS has concluded that only fiat currency can be categorized as money.
India looking at blockchain tech for the banking industry
The Institute for Development and Research in Banking Technology (IDRBT) of the Reserve Bank of India (RBI) has prepared a blueprint of a Blockchain Platform that could be primarily used by the banking industry.
The blueprint proposes a generalized roadmap for the adoption of blockchain technology in “several business and organizational functions,” along with a shared protocol to make sure that issues related to interoperability between different bodies don’t arise as regulatory guidelines do not exist for the adoption of blockchain technology by financial institutions and banks in India.
The Institute proposed a united effort between all members of the ecosystem, emphasizing the need to develop a formal set of regulations for smooth functioning and partnerships. In addition to several applications and services, the Institute proposed a management structure led by an advisory board to supervise the deployment of a platform using Blockchain technology.
Private sector initiatives
ING Bank signs a deal with R3, a blockchain tech provider
Dutch financial institution ING Bank (ING) has entered into a five-year agreement with blockchain technology provider R3. Per a statement issued by R3, the contract offers an unlimited number of licenses for Corda Enterprise, which is the commercial platform of the blockchain provider.
The agreement will also permit ING to begin using Corda Enterprise in all of its business operations worldwide. Additionally, ING will also gain access to R3’s CorDapps, a blockchain-powered tool for use in trade finance, insurance, identity, and capital markets.
This is not the first interaction between ING and R3. In November of 2015, two months after R3 went live, ING and several other financial institutions, joined the blockchain consortium. Notably, ING was the first to use R3 Corda platform to complete a trade finance deal earlier this year.
Smartac joins forces with SUKU Ecosystem
Investment banking giant JP Morgan backed digital services firm, Smartrac, has joined hands with SUKU Ecosystem, a blockchain startup, to integrate the latter’s supply chain platform.
Smartrac designs, manufactures, and sells NFC transponders and radio frequency identification (RFID) devices mainly in Asia, Europe, Latin America, and North America. The firm is a JP Morgan major portfolio company, and Alibaba recently took a minority stake to deploy enhanced brand protection solutions.
Ex-Deloitte executive Eric Piscini owns SUKU, which offers blockchain technology-based global supply chain solutions. The firm intends to turn supply chains more transparent, efficient, and collaborative by providing enterprises with a supply-chain-as-a-service platform. The platform enables its associates to build and incorporate features all over the SUKU environment.
According to the partnership, SUKU will link its Ethereum based supply chain platform with Smartrac to provide another layer of security and monitoring ability to the latter. SUKU, on the other hand, will receive the scientific know-how of Smartrac. SUKU’s blockchain, applications, and industry experience will be made available to Smartrac.
Blockchain technology added to Tsinghua University’s curriculum
Ripple has entered into an agreement with the Institute for Fintech Research (THUIFR) at Tsinghua University in Beijing to launch a blockchain research program. The scholarship program will concentrate on blockchain development and regulatory policies worldwide. Corporate visits and related events are part of the syllabus.
The director of international cooperation and development at the university, Ivy Gao, pointed out that the objective of the course is to provide a “comprehensive view” of blockchain regulatory policies to students. Gao further said that the course would assist students to pursue “future research or career in the field of blockchain technology.”
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.
