Spanish Central Bank Governor Believes Crypto Brings More Risk Than Benefit

The governor of the Bank of Spain has come out in favor of the possibilities of blockchain, but against the risks of cryptocurrencies, local news outlet Europe Press Financial reports Wednesday, May 23. Luis María Linde referred to blockchain as a technology that “offers interesting possibilities,” but is yet “not quite mature” in a speech at a meeting of leaders of the financial sector organized by Deloitte and two Spanish organizations. Linde notes that the current global move to a digital economy requires regulators to encourage innovation without bringing the…

Argentinian Bank Now Using Bitcoin For Cross-Border Transactions

Argentinian Banco Masventas (BMV), has announced a partnership Bitex to enable clients to use Bitcoin for international payments as an alternative to SWIFT, according to a Facebook post May 21. Bitex is a blockchain-based financial services provider based in Latin America. According to BMV, the new service allows customers to transfer money from account to account in less time than traditional bank transfers. BMV states that the new service will reduce transfer times by up to 24 hours. José Humberto Dakak, a principal shareholder of Masventas, said that the move…

Bank of England Issues Working Paper on Central Bank Digital Currencies

On May 18, the Bank of England released a staff working paper, laying out various scenarios of possible risks and financial stability issues of central bank digital currencies (CBDCs). The paper constructs three models of CBDC depending on the sectors that have access to CBDC, from a narrow CBDC where access is limited to banks and non-bank financial institutions (NBFIs), to direct and indirect access extended to households and non-financial firms. The Financial Institutions Access model is limited to banks and NBFIs, where financial institutions can interact directly with the…

Germany’s BaFin Visits National Bank of Georgia to Discuss Crypto Regulations

One of the largest financial supervisors in Europe met with the National Bank of Georgia (NBG) and other members of the finance sector to discuss cryptocurrency regulation, according to a post on the NBG’s site May 18. According to the post, a representative from Germany’s Federal Financial Supervisory Authority (BaFin) met with members of the NBG, the international financial institutions (IFI), private sector, commercial banks, brokers, audit, and legal companies to increase awareness of crypto in the country. At the meeting, the participants had a chance to receive detailed information…

Japan’s Largest Bank and Cloud Delivery Giant Akamai Announce Blockchain Payment Network

The Mitsubishi UFJ Financial Group (MUFG) has partnered with major U.S.-based cloud delivery platform Akamai Technologies to release a global payment network based on blockchain, Cointelegraph Japan reports today, May 21. Akamai, a Massachusetts-based firm, was able to test the blockchain platform “under realistic business conditions,” showing a capability for processing a million transactions per second and a capacity for finalizing transactions in under two seconds, according to MUFG’s official press release. Tokyo-based MUFG’s and Akamai’s payment network, which will go live starting in the 2018 fiscal year, will include…

Russia’s Largest Bank Buys Commercial Bonds on a Blockchain

Join our community of 10 000 traders on Hacked.com for just $39 per month. The investment and corporate banking arm of Sberbank and telecom giant MTS have laid claim to conducting Russia’s first commercial bond transaction using blockchain technology. In an announcement, MTS revealed it had placed commercial bonds worth RUB 750 million (approx. $12 million) on a proprietary blockchain platform provided by the country’s National Settlement Depository powered by smart contracts technology. Based on the Hyperledger Fabric, a production-ready blockchain software developed by the open-source Linux Foundation-led Hyperledger consortium,…

Norway Central Bank Considers Developing Digital Currency

Norway’s central bank, Norges Bank, is considering developing its own digital currency as a supplement to cash to “ensure confidence in money and the monetary system”, according to a working paper May 18. The report, prepared by a Norges Bank working group, investigates aspects they believe should be considered when assessing the issuance of a central bank digital currency (CBDC). The authors emphasize at least three possible CDBC applications: the introduction of a reliable alternative to deposits in private banks, a suitable legal tender as a supplement to cash, and…

President of Chile’s Central Bank Considers Cryptocurrency Regulation, Says It Is Useful for ‘Monitoring Risks’

Mario Marcel, the president of Chile’s Central Bank, is considering regulating cryptocurrencies in the country in order to monitor risks, local news outlet El Economista reported Tuesday, May 15. Cryptocurrencies in Chile are not currently considered as money or securities, but there are no laws in place that prevent citizens from exchanging crypto for goods and services. During a forum of the Finance Commission of Deputies, Marcel said that “incorporating regulation will allow having a registry of participants in these activities and thus have information to monitor the associated risks”:…

Nomura Bank Announces Crypto Custody Solution For Institutional Investors

Japan-based global investment bank Nomura has announced a venture to establish a custody offering for digital assets, Cointelegraph Japan reports today, May 16. The new project aims at removing barriers to institutional investment in the crypto space. Nomura’s joint venture will be conducted in partnership with digital asset security company Ledger and investment house Global Advisors, according to reports. The partners allege that a shortage of robust and legally regulated “safekeeping solutions” is currently preventing traditional asset managers from building investment vehicles in the crypto ecosystem, emphasizing that overcoming custody…

World’s Fifth Largest Bank To Trial Own Cryptocurrency In 2019, Report Says

The banking unit of Japan’s Mitsubishi UFJ Financial Group (MUFG) plans to trial its own cryptocurrency as early as 2019, Cointelegraph Japan reports today, May 15. Cointelegraph Japan quotes local news media outlet NHK saying that a test phase of the cryptocurrency, known as MUFG Coin, could involve around 100,000 account holders. Currently the fifth largest bank in the world by assets, MUFG originally signalled its intention to launch a token in January this year, in so doing becoming the first Japanese bank to issue one. Plans for the move…