A Month Ago

Western Union, with 500,000 branches globally and revenues of over $5.5 Billion, is a significant player in the international remittance market - charging 5% to 9.5% to process transactions.

The Global remittance market was valued by the World bank at over $613 Billion in 2018, an increase of  7% since 2017.

This means the very poorest workers i.e. cleaners, nurses, security guards, etc. in more developed countries who are sending money back to loved ones are paying up to $60 Billion in banking and foreign exchange costs p.a.
It is hoped that  Blockchain technology will enable the same money transfers at a much lower cost.

Western Union has just announced a venture with TransferTo, which itself saw tremendous growth of over 900% in 2018, processing over $2 Billion of transactions. TransferTo has been using the Stellar Blockchain (as used by IBM). This venture allows Western Union to start digitising its remittance business,  which ought to allow it to compete with many of the FinTech firms we are seeing being established, using Blockchain technology, offering similar services.

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Blockchain
Financial Services
https://bitnewstoday.com/news/western-union-par...lockchain/
Sometimes when you look beyond a headline you discover some interesting relationships that may not be obvious initially.

Jack Dorsey, CEO of Twitter, also co-founded Square who offer payment services for small businesses and mobile payments solutions. Square Payments in 2017 invested $25m into Eventbrite, which itself did an IPO last year. Square are now hiring crypto engineers. Jack Dorsey’s co-founder at Square is Jim McKelevy, who is, incidentally, an independent director of the St Louis Federal reserve.

Meanwhile,
Jack Dorsey is increasingly vocal about his support and interest in Digital Assets, admitting to buying $10,000 of Bitcoin a week, and believes that we are not far from seeing mass adoption of Cryptocurrencies by the public.
So it is not too big a leap to see Twitter and possibly Eventbrite in the not too distant future both licensing, using, being involved in Square’s Crypto payment offering - and follow Facebooks foray into Digital Assets?

More evidence of West Coast US firms looking to target the lucrative banking and financial services world that east coast American companies have dominated for decades?

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Bitcoin
Financial Services
Digital Assets
A judge in Israel has ruled that Union bank, the sixth largest in Israel, that closed the bank account of a crypto mining company was unreasonable.

“I believe that the sweeping policy, which does not distinguish between different types of activity, scope of activity and different types of customers — in the field of digital currencies — is unreasonable.” – Judge Bibi said.

This highlights the challenge for business that are involved with Cryptocurrencies obtaining a bank account, yet governments, including Israel’s, are talking and in some cases actually offering Digital Currencies, so will using these state-backed Digital currencies also trigger banks to close customers’ accounts?

There is still a perception that while dealing in Cryptos is not illegal as it is largely unregulated it attracts the criminal fraternity. However, is there a deeper reason for this reluctance to be involved with Cryptos in that Banks are genuinely worried about the potential threat posed by Cryptos. Does this explain why Bitpay which processed over $3Billion of transactions in 2018, and Kraken, one of the largest exchanges in the world, both had their bank accounts closed last year?
It is not all gloom and doom Signature Bank in the U.S., Bank Frick in Europe and Clearbank in the UK all offer Crypto banking facilities. There are also FCA regulated companies in the UK, like Baanx and Global Block who will accept Crypto exchange them into Fiat and then transfer the Fiat proceeds to firms.

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Financial Services
https://www.bloomberg.com/news/articles/2019-03...ccounts
The Basel Committee, who act as a global watchdog for banks, has issued a statement about the potential disruptive effect that Crypto currencies could have on banks.

Interestingly, JP Morgan said that "cryptos could be more of a partner than a threat to banks". It is difficult to see how Stablecoins, like the JPM Coin will make money for JP Morgan, although potentially the bank’s new Quorum platform could be licensed to third parties as an alternative to other blockchains. This is because Quorum does not have transaction fees, and third parties i.e. miners do not have access to trades prior to them being publicly available which is a major problem for public Blockchains like Ethereum, Wave, Stellar etc.

Meanwhile, we are seeing more retailers in different countries accepting Cryptos as a way to purchase goods and services. In Switzerland, the online retailers Digitec and Galaxu are now allowing customers to use Bitcoin for purchases and  Birks Group, Canada’s largest and oldest jewellery stores, announced that it had begun accepting Bitcoin at eight of its 30 stores. In Japan Rakuten, Japan’s largest e-commerce website has intimated it will begin accepting Cryptos soon.

Starbucks however could prove to be an inflection point once they start to accept Cryptos which is rumoured to be in Q3 in 2019. In Australia, Binanace has established a venture with 1,300 newsagents to enable one to buy Bitcoin and closer to home in France you have for a while been able buy Bitcoin via a chain of tobacco shops.

A recent report from Finer, see below, found that 8% of Americans own Cryptocurrencies but discovered there multiple reasons why the other 92% do not own a Crypto.

The whole user experience on engaging and using Digital Assets needs to be made much easier and simpler to ensure more people start using them on a day today basis.

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Financial Services
https://www.watson.ch/digital/schweiz/801431165...rev=search

2 Months Ago

Specialist financial instruments exchange, Drive, has announced they are now offering institutional clients access to spot prices, CFDs and Futures in a selection of Cryptocurrencies.

This ought to help provide greater liquidity and acceptance among institutional investors as it enables them to easily go long or short of a variety of Cryptocurrencies via a platform that they are already using, so gain exposure to Digital Assets by osmosis.

The pronouncement from SEC Chair Clayton has confirmed that certain cryptocurrencies, like Ethereum and Bitcoin, are not securities and has provided the clarity many have been seeking. Which ought to assist lawyers, insurance underwriters and compliance departments at asset management firms as to where and how these Digital Assets can be used.

Meanwhile, back in main street in the US, or as some would say in the UK for ‘Joe Public’, of those that own Digital Assets like Bitcoin less than 40% said they were happy to use Cryptos for payments. So while adoption of Digital Assets is increasing there is still a long way to go before we see cryptos replacing cash…

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Cryptocurrency
Financial Services
Digital Assets
https://www.leaprate.com/forex/institutional/dr...th-gold-i/
BlockFi, who raised over $54million last year has launched a high-interest account paying 6% p.a. if they hold your Bitcoin or Ethereum assets.

The reason they can pay such high-interest rates is because they lend out your Crypto to other institutions but more importantly, your Digital Assets are held by a custodian independent of BlockFi called Gemini Trust Company. Gemini was co-founded by Cameron and Tyler Winklevoss and is regulated by the New York Department of Financial Services.

This new way to hold Cryptocurrencies is another example of how the traditional and the Digital worlds are converging, as BlockFi are offering in effect an instant-access, high-interest account to depositors while providing institutional asset lending facilities. Because the transactions are stored on a Blockchain there are fewer intermediaries involved, it is secured using military-grade security and not reliant on one company’s server/computer as the records will be distributed thus reducing concerns over disaster recovery.

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Banking
Bitcoin
Blockchain
Cryptocurrency
Financial Services
https://www.newsbtc.com/2019/03/06/highest-yiel...-interest/