After months of speculation and conflicting messages, ministers have announced the Russian Federation is to issue its own official cryptocurrency – the CryptoRuble. The landmark development will make Russia the first government in the world to officially implement digital currency.
Vladimir Putin Endorses Russia's New CryptoRuble
JPMorgan today announced their new Interbank Information Network (IIN), developed in partnership with Royal Bank of Canada and New Zealand Banking Group, and designed to "minimize friction" in global payments by using blockchain technology to streamline common procedures. JPMorgan said it expects more banks to support the network in the coming months, allowing them to increase efficiency by cutting down on transaction delays. The network is powered by JPMorgan's Ethereum-based Quorum blockchain technology.
JPMorgan Announces New Payments Network Based on Blockchain Technology
The Royal Bank of Canada (RBC) is trialling blockchain technology for fund transfers to and from the U.S. Built using open-source tech from the Hyperledger consortium, the new system was deployed about a week ago as an underlying layer to RBC's existing payments system.
Canada's Largest Bank Tests Blockchain for Cross-Border Payments
Professor David Yermack from NYU Stern School of Business argues that it’s only a matter of time before Central Banks withdraw banknotes from circulation and put their national currency onto a blockchain, rending other banks “unnecessary”.
Central Bank Blockchain Could Make Other Banks Obsolete
Technological advancements require that regulators become more inventive in how they monitor financial transactions. Blockchain technology is increasingly being viewed as a key component to enhance regulators’ digital capabilities for the oversight of financial markets.
CFTC Chairman: Government Must Ditch 'Analog Regulation,' Embrace Blockchain
The Bank of International Settlements (BIS) has published a new report that recommends the use of distributed ledger (blockchain) technology to help central banks replace their aging payment systems. Various central banks are already experimenting with applications of blockchain tech, including the Bank of Canada, the Central Bank of Brazil, the Monetary Authority of Singapore, and the Bank of England.
'End of Life Cycle': BIS Report Positions DLT as Needed Banking Update
SETL and four French fund managers are aiming to go into production in 2018 with a pan-European fund record-keeping platform based on blockchain technology. Designed to provide investors, asset management firms, distributors and wealth management advisers with straightforward access to fund units, the system manages KYC processes, handles subscription / redemption instructions, and settles transactions and record positions.
SETL Targets 2018 Launch For Blockchain-Based Fund Platform
R3 CEV has partnered with Britain's financial watchdog and two large banks to develop a blockchain-based application to improve the regulatory reporting of mortgage transactions. The system, built using R3's Corda blockchain, enables banks to generate automated delivery receipts for the regulator each time a mortgage is booked. The organizations hope that it can reduce the cost of the process and the risk of error.
UK Financial Regulator Builds Blockchain App Using R3's Corda
The Utility Settlement Coin (USC) project was initially designed as a way to minimize the role of clearinghouses, by letting financial institutions pay each other directly using collateral-backed crypto tokens. However, since the collateral associated with those tokens is held by central banks, the project is increasingly being seen as a step toward reimagining how fiat currency could be issued.
Is Blockchain Ready for Fiat? Why Banks See Big Promise in Crypto Cash
In a wide-ranging statement on initial coin offerings (ICOs), Canada Securities Administrators (CSA) – an umbrella group composed of the country's regional and local securities watchdogs – has provided guidance on how regulatory bodies plan to oversee this emerging funding model. It encourages businesses with proposed ICOs to contact their local securities regulatory authority to discuss approaches for complying with securities laws, and notes that when assessing whether securities laws would apply the focus will be on “substance over form".
Canadian Regulators: Many ICO Tokens Meet the Definition of "Securities"
The 'Atomic Ledger' project, involving the Toronto Stock Exchange (TMX) and the UK's National Physical Laboratory, is experimenting with the use of atomic clocks to timestamp trades which are then recorded directly on a distributed ledger, which could aid in MiFID II compliance for EU financial markets.
Researchers Bring Atomic Clock Timestamp Precision to Stock Trading over Distributed Ledgers
New report out from the World Economic Forum identifies Big Tech, not FinTech, as the greatest disruption threat faced by the Financial Services sector. In "Beyond FinTech: A Pragmatic Assessment of Disruptive Potential in Financial Services" the authors note that the partnership between banks and large technology companies risks becoming one-sided rather than reciprocal, as financial institutions increasingly rely on Big Tech firms for their most strategically sensitive capabilities, but can only offer their ongoing business in return.
Tech Titans 'Bigger Threat to Banks than FinTech'
In this opinion piece, the authors explain the significance of a recent CFTC approval regarding the LedgerX cryptocurrency derivatives platform, and its potential impact on the market. As interest in cryptocurrencies continues to grow, ‘crypto-derivatives’ may begin to find a place alongside other more established elements of the crypto economy, such as payments and securities tokens.