Coin News

By Laila Kearney

NEW YORK (Reuters) - Stock exchange operator Nasdaq has rejected a listing application by MassRoots Inc on the grounds that it may aid in the use and dealing of an illegal substance, the cannabis social networking company said on Tuesday.

The rejection, handed down on Monday, may insert roadblocks ahead of other cannabis-related companies seeking to list on a national stock exchange, MassRoots Chief Executive Isaac Dietrich said in a statement.

"This will have ripple effects across the entire industry, making it more difficult for cannabis entrepreneurs to raise capital and slow the progression of cannabis legalization in the United States,” Dietrich said.

The Denver-based company, which connects cannabis users, activists and business people through its mobile applications and web portal, said it planned to appeal the decision.

Nasdaq declined to confirm whether it denied the application or say if such a rejection would set a precedent for cannabis-related companies.

The majority of public cannabis companies, including Denver-based MassRoots, are traded over-the-counter, where regulations are less restrictive and trading typically is done between two individuals instead of a centralized exchange like Nasdaq.

At least one company focusing on a cannabis-related products, Insys Therapeutics , is listed on the Nasdaq. The pharmaceutical company is developing a cannabis-based drug.

Although cannabis remains classified as an illegal narcotic under U.S. law, it has been legalized for medical use in 23 states since California became the first to do so in 1996.

Colorado, Washington, Oregon, Alaska and the District of Columbia have gone a step further and legalized cannabis for recreational use by adults.

(Reporting by Laila Kearney; Editing by Alan Crosby)

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In a new blog today, Coinbase exec Fred Ehrsam sought to position Ethereum as a competitor to bitcoin in the digital currency industry.

William Cline, a senior fellow at the Peterson Institute for International Economics, dismissed using bitcoin to address the U.S. debt in response to a caller question on C-Span’s Washington Journal on Monday. Cline talked about information released by the Treasury Department about which foreign countries own the largest amounts of $6 trillion of U.S. Treasury […]

The post Economics Expert Dismisses Using Bitcoin to Hold National Debt on C-Span appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

The Bitcoin Foundation’s future plans face early skepticism after the public release of a private email from its executive director.

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Two of the biggest names in the blockchain space could become partners.

R3 CEV, a leading blockchain innovation and development consortium group that has partnered with more than 40 financial institutions, and Ripple, a blockchain-based cross-border transfer firm, could join forces sooner rather than later, according to a tweet from Ripple CEO Chris Larsen.

Blockchain technology, best known for powering Bitcoin and other cryptocurrencies, depends on a distributed ledger that allows stakeholders to verify transactions without an intermediary. Blockchain is becoming more popular among financial institutions because of its potential to boost payments efficiency and security.

Ripple’s protocol could act as a transfer option for banks using Corda, R3’s proprietary distributed ledger platform, according to Bank Innovation. And Corda, in turn, could solve what R3 views as a security loophole in Ripple's protocol.

R3 CEV said last July that Ripple's transfer platform depends too much on third parties to verify transactions, which could create a significant security risk. Corda, however, restricts verification access only to parties directly involved in a transaction, which makes said transaction far more secure than a typical blockchain.

The partnership would also benefit Ripple, as the Corda integration could expand Ripple's exposure to more banks while simultaneously increasing security. Blockchain tech benefits from a large network of banks, so this partnership could accelerate the real-time implementation of this tech throughout the financial world.

Security is paramount as blockchain moves toward mainstream adoption. Most financial services companies are working with blockchain in some form, either through partnerships or independent innovation. But many of these companies have shown concern about security. Partnerships that alleviate these security concerns could convince those on the fence to adopt blockchain tech.

Blockchain technology, which is best known for powering Bitcoin and other cryptocurrencies, is gaining steam among finance firms because of its potential to streamline processes and increase efficiency. The technology could cut costs by up to $20 billion annually by 2022, according to Santander.

That's because blockchain, which operates as a distributed ledger, has the ability to allow multiple parties to transfer and store sensitive information in a space that’s secure, permanent, anonymous, and easily accessible. That could simplify paper-heavy, expensive, or logistically complicated financial systems, like remittances and cross-border transfer, shareholder management and ownership exchange, and securities trading, to name a few. And outside of finance, governments and the music industry are investigating the technology’s potential to simplify record-keeping.

As a result, venture capital firms and financial institutions alike are pouring investment into finding, developing, and testing blockchain use cases. Over 50 major financial institutions are involved with collaborative blockchain startups, have begun researching the technology in-house, or have helped fund startups with products rooted in blockchain. 

Jaime Toplin, research associate for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on blockchain technology that explains how blockchain works, why it has the potential to provide a watershed moment for the financial industry, and the different ways it could be put into practice in the coming years.

Here are some key takeaways from the report:

• Spending on capital markets applications of blockchain is expected to grow at a 52% compound annual growth rate (CAGR) through 2019, according to Aite Group, to reach $400 million that year.
• Banks and major financial institutions are working both collaboratively and independently to develop blockchain tech. Over 50 major financial institutions are involved with collaborative blockchain startups, like R3 CEV or Chain. And many are investing in the technology on their own as well.
• Putting blockchain to use for real-world transactions is likely not that far off. If working groups' tests are successful, firms could be using it to transact real value as early as the end of this year and we could see widespread industry application within the next few years. 

In full, the report:

• Examines the funding increases that are pouring into blockchain
• Assesses why blockchain is becoming so popular and what factors are driving up increased research and development
• Explains in full how blockchain technology work and what assets make it valuable and vulnerable
• Identifies pain points in the financial industry and profiles how various firms are using blockchain to solve them
• Demonstrates the challenges to mainstream adoption and their potential solutions

To get your copy of this invaluable guide, choose one of these options:

1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
2. Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of blockchain technology.

Join the conversation about this story »

This story was delivered to BI Intelligence "Payments Briefing" subscribers. To learn more and subscribe, please click here.

Two of the biggest names in the blockchain space could become partners.

R3 CEV, a leading blockchain innovation and development consortium group that has partnered with more than 40 financial institutions, and Ripple, a blockchain-based cross-border transfer firm, could join forces sooner rather than later, according to a tweet from Ripple CEO Chris Larsen.

Blockchain technology, best known for powering Bitcoin and other cryptocurrencies, depends on a distributed ledger that allows stakeholders to verify transactions without an intermediary. Blockchain is becoming more popular among financial institutions because of its potential to boost payments efficiency and security.

Ripple’s protocol could act as a transfer option for banks using Corda, R3’s proprietary distributed ledger platform, according to Bank Innovation. And Corda, in turn, could solve what R3 views as a security loophole in Ripple's protocol.

R3 CEV said last July that Ripple's transfer platform depends too much on third parties to verify transactions, which could create a significant security risk. Corda, however, restricts verification access only to parties directly involved in a transaction, which makes said transaction far more secure than a typical blockchain.

The partnership would also benefit Ripple, as the Corda integration could expand Ripple's exposure to more banks while simultaneously increasing security. Blockchain tech benefits from a large network of banks, so this partnership could accelerate the real-time implementation of this tech throughout the financial world.

Security is paramount as blockchain moves toward mainstream adoption. Most financial services companies are working with blockchain in some form, either through partnerships or independent innovation. But many of these companies have shown concern about security. Partnerships that alleviate these security concerns could convince those on the fence to adopt blockchain tech.

Blockchain technology, which is best known for powering Bitcoin and other cryptocurrencies, is gaining steam among finance firms because of its potential to streamline processes and increase efficiency. The technology could cut costs by up to $20 billion annually by 2022, according to Santander.

That's because blockchain, which operates as a distributed ledger, has the ability to allow multiple parties to transfer and store sensitive information in a space that’s secure, permanent, anonymous, and easily accessible. That could simplify paper-heavy, expensive, or logistically complicated financial systems, like remittances and cross-border transfer, shareholder management and ownership exchange, and securities trading, to name a few. And outside of finance, governments and the music industry are investigating the technology’s potential to simplify record-keeping.

As a result, venture capital firms and financial institutions alike are pouring investment into finding, developing, and testing blockchain use cases. Over 50 major financial institutions are involved with collaborative blockchain startups, have begun researching the technology in-house, or have helped fund startups with products rooted in blockchain. 

Jaime Toplin, research associate for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on blockchain technology that explains how blockchain works, why it has the potential to provide a watershed moment for the financial industry, and the different ways it could be put into practice in the coming years.

Here are some key takeaways from the report:

• Spending on capital markets applications of blockchain is expected to grow at a 52% compound annual growth rate (CAGR) through 2019, according to Aite Group, to reach $400 million that year.
• Banks and major financial institutions are working both collaboratively and independently to develop blockchain tech. Over 50 major financial institutions are involved with collaborative blockchain startups, like R3 CEV or Chain. And many are investing in the technology on their own as well.
• Putting blockchain to use for real-world transactions is likely not that far off. If working groups' tests are successful, firms could be using it to transact real value as early as the end of this year and we could see widespread industry application within the next few years. 

In full, the report:

• Examines the funding increases that are pouring into blockchain
• Assesses why blockchain is becoming so popular and what factors are driving up increased research and development
• Explains in full how blockchain technology work and what assets make it valuable and vulnerable
• Identifies pain points in the financial industry and profiles how various firms are using blockchain to solve them
• Demonstrates the challenges to mainstream adoption and their potential solutions

To get your copy of this invaluable guide, choose one of these options:

1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
2. Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of blockchain technology.

Join the conversation about this story »

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The post Dubai Bitcoin Startup Snags Seed Funding appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

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The post Blockchain Consortium R3 Sees its First Chinese Member appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

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The post Chinese Government Cracks Down on Online P2P Lending appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

Financial technology is set to dominate one of the most important events in the British financial calendar. 

Bank of England Governor Mark Carney's biggest speech of the year will be about fintech and blockchain technology, he revealed on Tuesday.

Carney was questioned by MPs on the Treasury Select Committee over his upcoming Mansion House speech to top bankers and City of London officials in early June.

The Governor said: "My speech will be about aspects of fintech and distributed ledger technologies and it actually starts to shift into... broader applications for the structure of the financial system and what that Bank of England is going to enable that or should do to enable that, to start the broader conversation."

The fact that Carney is making it the topic of his Mansion House speech is a huge endorsement of fintech. The Mansion House dinner, organised by the Lord Mayor of London, is where the Bank of England and the Treasury sets out its agenda for the year ahead. 

The Chancellor also makes an annual speech at the event and has used it as an opportunity to announced the share sale of both Royal Bank of Scotland and Lloyds in past year. That gives you an idea of just how influential this slot is.

Carney also made some remarks about peer-to-peer lending when asked whether the industry needs tighter regulation to prevent losses to retail investors prompting a financial crisis similar that seen in 2008 and 2009.

"It's important that the balance on regulation in this emerging industry is correct. Some allowance for the appropriate degree of regulation at an early stage to encourage alternate lenders makes sense," Carney said.

Andrew Hauser, the Bank of England's executive director for banking, payments, and financial resilience, has hinted that fintech and modernisation are high up on the central bank's agenda.

He told an audience in London last month: "The change is going to happen whether we like it or not. We have to ensure we adapt as well. If we don’t do so, effectively we might not be able to do our jobs. Central banks, just like everyone else, can’t afford to be Uber’d."

Fintech, short for financial technology, broadly refers to the cluster of tech-focused financial companies that have sprung up since the financial crisis. A combination of increasing tech capabilities, out of work bankers looking for new gigs, distrust of traditional lenders among customers, and the pullback of big banks in many areas all combined to create innovative new online businesses that solved problems in finance. (You can read a more in-depth explanation o the phenomenon here.)

The term fintech is pretty broad and can apply to everything from peer-to-peer lending to improvements to back office risk scoring and identity checking. Distributed ledger technology, which Carney also singled out, is the area of fintech that traditional banks are most excited about.

Also known as blockchain, distributed ledger technology was first developed to underpin digital currency bitcoin. It basically uses a network effect to police transactions rather than a trusted middleman — a central bank or a clearing house.

Here's a helpful chart from Goldman Sachs explaining how it works in the blockchain example:Big banks are hoping that this technology can be adapted to traditional finance, ripping out huge amounts of cost. Instead of having to pay someone to process a transaction, you just go directly to the counterparty. And the network effect also reduces errors that arise with record discrepancies.

Over 40 of the world's top investment banks have signed up to R3, a startup developing industry-wide standards and applications for the use of distributed ledgers, and many banks are privately experimenting with the technology behind closed doors.

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Cybercriminals appear to have made off with the equivalent of $2 million in digital currencies from Gatecoin, according to a notice posted on the exchange?s website.

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The post Bitcoin Gains Favor With Modern Day ‘Gold Bugs’ Seeking Financial Security appeared first on CCN: Financial Bitcoin & Cryptocurrency News.