The world is spinning around Blockchain
MoneyPolo provides regular news bulletins from the world of new technologies, money transfers and payment processes. Particular attention is paid to the digital currencies, the Bitcoin, and the blockchain technologies. Let’s check the selection of the most interesting news the last month has brought.
Banks want the blockchain – the FinTech Group R3 already has 25 members
FinTech startup R3 is engaged in the development of networks operating on a principle of the bitcoin blockchain. It cooperates with the biggest banks looking for a way to find and exploit new technologies in the field of financial transactions. UniCredit, Mizuho Bank and Nordea have recently joined the Distributed Ledger Group; the whole consortium now has 25 members, including such giants such as Morgan Stanley, Goldman Sachs, and HSBC. Banks are beginning to realize that the use of the blockchain can save huge resources and streamline transactional processes, mostly, however, they have reservations about the bitcoin itself, a currency belonging to the blockchain inherently.
Visa Europe has launched a project on the “Proof of Concept” principle
The other company that has come to like the blockchain is Visa, which announced a launch of a project on the “Proof of Concept” principle via its subsidiary Visa Europe Collab. According to a press release, it will cooperate with the Epiphyte Startup coming from the Boost VC Startup Incubator from California and the project should be finished within two months. The exact details are not known yet, the companies allegedly work in a “controlled test environment” that tries to simulate real financial transfers. This report is an interesting contrast to statements of leaders of the traditional transfer services such as MoneyGram or the Western Union that the digital currency and the blockchain technology cannot contribute to this sector.
Recent growth of the bitcoin price may have criminal background
In the first days of November, the Bitcoin price suddenly rose sharply from average USD 250 up to twofold. Analysts and experts looked for the reasons for such rapid growth. The strict capital controls in China and the bitcoin as the possibility of taking the finances from the country or a recent decision of the European Court of Justice about the inclusion of the bitcoin among currencies and the liberation of its exchange from VAT were the most frequently mentioned reasons. However, the reality may be more prosaic. According to the Izabella Kaminska’s report from the Finance Today, the last bitcoin rally could be caused by a pyramidal game called MMM managed by Sergej Mavrodi, a convicted organizer of another Russian Ponzi scheme. Within the MMM project, the new members are required to buy the bitcoins first that are pumped then into the pyramidal program of “mutual assistance.” Newly coming players then pay investors who have come before them, with the promise of return in the amount of 30% of their deposit at the end of each month.
In the past, Mavrodi was sentenced for organizing the Ponzi schemes; today, he is suspected of several crimes, including money laundering and fraud on consumers. However, he is being investigated at large. During November, the Bitcoin price gradually fell to the current amount of USD 335. However, it is still much higher than the average rate for the full year 2015.