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AtoZ Crypto Weekly Overview: Blockchain adoption expands

Redwan Eid | Mar. 9, 2019
AtoZ Crypto Weekly Overview: Blockchain adoption expands

March 10, 2019 | AtoZ Markets - Our AtoZ Crypto weekly overview, comes this week with positive news about the blockchain technology. Since the Blockchain adoption expands, with more jurisdictions and industries looking into the possibilities to implement this new technology.

Coinbase’s moral scandal still shakes the digital assets’s world. Blockchain technology blossoms more between Germany and the Caribbean, with news on the real estate industry making millions of dollars out of it today! These are only a few highlights of our AtoZ Crypto weekly overview this week, so continue reading below to get all the important insights.  

FCA crypto investors research reveals education is needed

On its turn, the Financial Conduct Authority (FCA) in the U.K published two research reports on March 7th 2019, which briefed the attitude of UK's crypto investors.

The British financial regulator spoke to 31 crypto investors and asked them to share their motivations and sources of information.

The FCA crypto investors research unveiled that nearly three in four of those surveyed hadn’t heard of cryptocurrencies or were unable to explain the basic concept behind it properly.

27% of the interviewees – mainly men who fall in the AB social grade are between 20 and 44 years old- gave a correct response.

Another 27% of UK consumers could identify what a “cryptocurrency” is.

How will USDT be regulated? SEC examines Stablecoins

Lost between two IDs, being looked at as “demand notes” by the U.S SEC, and as “swaps” by the CFTC, stablecoins still kept its prestigious position among the cryptocurrencies overall, as the recent market movement told that investors are moving toward the stablecoins.

As the CFTC and SEC examines stablecoins further, most of the investors use Tether (USDT), TrueUSD (TUSD) and Gemini Dollar (GUSD) to keep the assets during high volatility and bearish market times. Since these benefit by being cheaper when it comes to transactions and rapid settlement, but with low or “near to zero” price volatility which usually are found in the crypto markets. Through that, stablecoins satisfies the demand for major fiat currencies in parts of the world with limited access to the global financial system.

Blockchain adoption expands in real estate and Eastern Carribean

The Eastern Caribbean Central Bank (ECCB) was reported last week to have been putting the final touches to carry out a legal tender trial on its crypto, before introducing it as a legal tender in 2020 without specifying the exact time.

The ECCB had signed the last month an agreement with the Barbados-based fintech firm Bitt for a pilot on the crypto mentioned, which was said to be the digital version of the Eastern Caribbean dollar (XCD), which is the base the CBDC pilot will stand on, and was described to be “securely minted and issued”.

Timothy N. J. Antoine, the governor of the ECCB, said in a statement that the pilot is not an “academic exercise.”, explaining: “Not only will the digital EC Dollar be the world’s first digital legal tender currency to be issued by a central bank on blockchain but this pilot is also a live CBDC deployment with a view to an eventual phased public rollout.”, continuing that the project will be “game-changer for the way we do business,”

The Blockchain adoption expands also in the real estate sector. As Blockimmo Ltd, a Blockchain property transaction platform was reported the last week to have successfully completed the first real estate transaction on a blockchain in Switzerland, along with two other companies.

Elea Labs Ltd. and Swiss Crypto Tokens Ltd conducted a real estate blockchain transaction of $3 million that consists of 18 apartments and a restaurant.

US State Wyoming Classifies Cryptocurrencies as Fiat money

The blockchain adoption expands also in the US, since the US state Wyoming passed a crypto law to classify digital coins as Fiat money. The bill, which was put in effect on March, 1st, dictated that crypto assets are in three categories namely: digital consumer assets, digital securities and virtual currencies. 

Another test on incorporating the blockchain technology into the market was recently carried out, however, that was in Germany this time. The news read that both of Deutsche Boerse AG and Commerzbank put together considerable effort in measuring the outcome of recruiting the blockchain technology in automating the securities settlement process.

Being a basic element bitcoin stands on, executing legally-binding settlement of a repo trade benefiting from a distributed ledger was also included in the test.

France could ban anonymous cryptocurrencies

Eric Woerth, Head of Finance Committee at the "Assemblée Nationale", proposed that France could ban anonymous cryptocurrencies. Since these “cryptocurrencies allow users to hide their identity". He continued saying that cryptocurrencies like "Monero, PIVX, DeepOnion, Zcash, should be banned because of the risks they entail, since users can use them without undergoing any verification process.”

Woerth sees that anonymous cryptocurrencies poses major financial issues such as fraud, tax evasion, money laundering, and energy consumption.

Coinbase client database scandal takes the spotlight

One of the highlights that dominated our AtoZ Crypto Weekly Overview is the Coinbase client database scandal, since it still shakes the digital assets’s world. Coinbase found itself obliged to present a persuasive explanation to its customers at the first place, in addition to its fans and crypto enthusiasts in general. However, the contradictory statements by some of its management board members, between confirming, denying and escaping, complicated the situation even more, where a radical solution was needed.

To come to a solution and save its reputation, Coinbase fired Neutrino's hacking team. Especially of those who were involved before in helping violating the human rights in different countries over the world by putting their technical expertise at the disposal of the dictators of those countries.

The details read that Coinbase found itself in a predicament, after buying the cybersecurity Italian firm Neutrino. Until now, the news looks normal, however, Neutrino turned out later to have among its team senior management members who previously stained their hands with developing spyware systems for different brutal regimes, which used them for censoring the internet in their countries for a firmer grip over their nations. Those regimes were referred to by the U.N as having violated variant human rights.

Russia to become a hub for Offshore Crypto firms?

Further details about the Russian ongoing efforts for combating the U.S sanctions were revealed the last week, where a tax-free zone in the country, which will also come with mild regulations, reportedly entered its third stage of examination as per reports by the Russian Ministry of Economic Development.

The project called “Russian offshores” will benefit digital assets significantly, which will have special regulations for trading, with Russia preparing to invest in cryptos as a key strategy to combat the U.S sanctions. This could increase the number of offshore crypto firms in Russia, making it a blockchain hub for many firms. 

The project will also have a regulatory framework for digital financial assets as one of the key requirements the legislation to include, as well as attracting greater financial resources based on digital technologies.

Ongoing March will reportedly witness reviewing and adopting new cryptocurrency regulations, which is said to be coming with the state’s plans to adopt an investment scheme of oil-backed crypto, as the former Energy Minister Igor Yusufov suggested.

That was all we have for our market tour for this week. Keep tuned for another AtoZ Crypto Weekly Overview the next week.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.