Week Ending November 18, 2016

Red Chalk Group banks, blockchain, Central Banks, China, David Uhryniak, distributed ledger technology, energy, entertainment, insurance, music, payments, Raymond Zenkich, Red Chalk Group, Singapore, supply chain, Ukraine, Umair Hussein

Three things to know

The Central banks of China, Singapore, and Ukraine have each announced a plan to develop a national digital currency. The reasons each has chosen to do so are similar; digital currencies transacted via a Blockchain network increase security, lowers costs, and increases transparency. Singapore called out the traditional model of correspondent banking as cumbersome and costly. It hopes to remove the frictions inherent in the traditional process by developing a netting process whereby cash is deposited and exchanged for digital currency. At the end of the day or other specified time, the digital currency is then exchanged back into cash.

While these actions are positive for Blockchain, they potentially raise other issues. The first question that comes up, is how soon until digital currencies are recognized as legal tender? If digital currencies are recognized as legal tender, will bitcoin then also become legal tender? Digital currencies being formally recognized as legal tender could potentially be a “big bang” type of event that spurs the rapid Blockchain adoption.

Central bank adoption of digital currencies raises societal issues as well. As countries become cashless, to what degree is privacy eliminated? How does that increase government involvement and knowledge of how individuals spend their own money? These types of situations could further increase the use of alt-currencies not recognized or tracked by governments.

These are valid considerations that are going to become increasingly relevant issues as Blockchain and cryptocurrencies mature. How they are resolved will be interesting. For now, the adoption of digital currencies by Central banks should be considered positively and testaments to the benefits and viability of Blockchain.

China’s Central Bank Hires Blockchain Experts to Launch Cryptocurrency

Singapore’s Central Bank to Test Blockchain-Backed Digital Currency

Ukraine to become the next country to go cashless, plans to launch national digital currency

https://cointelegraph.com/news/ukraine-to-become-next-country-to-go-cashless-plans-national-digital-currency?utm_content=buffer49713&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

Weekly Blockchain

Financial Services

R3 Banks Trial Blockchain Identity Registry

BBVA working with R3 in the development of a blockchain-based identity management system

IBM Blockchain Helps Fintech’s and Banks Address KYC Challenge

The Long Disrupt: How Blockchain Startups Are Reshaping the DTCC

IBM’s Next Step in Launching One of the World’s Largest Blockchain Implementations?

Blockchain adoption in banks coming, but slower than expected