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Cryptocurrency Morning Brief

Jun 29, 2018

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  • The German Financial Stability Committee (AFS) has said that cryptocurrencies do not pose a threat to the country’s financial stability. The committee performed a study and reported that currently cryptocurrencies lack general acceptance and that transaction costs are too high. The AFS also stated that cryptocurrency tokens do not serve as a means of payment, a store of value or a unit of calculation. The committee said it will continue to monitor developments in the area.
  • Cryptocurrency wallet announced that it will be providing an institutional platform for trading and wallet storage called Blockchain Principal Strategies (BPS). The platform will cater to institutions, family offices, and individual investors. The new platform will provide over-the-counter (OTC) trading – facilitating larger trade orders. The platform has recruited managers from Goldman Sachs, Cooley, JP Morgan and UBS.
  • A cryptocurrency startup, Reserve, is attempting to establish itself as a “stable” cryptocurrency. The stable coin Reserve, is backed by Peter Thiel, Coinbase and 40 other investors. It will be pegged 1:1 to the USD. The key strategy of Reserve is to use cryptocurrency assets from outside its ecosystem to maintain a peg. Reserve has encountered significant criticism because crypto assets backing Reserve are inherently volatile
  • Over 500 Singaporean businesses have adopted technology from Electrify, which is a new blockchain-based energy platform. Electrify gives customers access to more than one energy provider on a single dashboard where prices can be compared. Electrify uses smart contracts which saves 30% in transaction costs. The annual energy use in Asia is expected to rise from USD$700bn currently to USD$1.6 trillion by 2035.
  • The securities regulator in Canada’s Ontario province is concerned about public knowledge on cryptocurrencies. The Ontario Securities Commission (OSC) surveyed 2,500 individuals which showed that 42% of individuals who had bought cryptocurrencies did so with the hope of making profits by selling at a higher price. The OSC is concerned that individuals have awareness on cryptocurrencies, but do not understand the basics of the technology. The securities regulator highlighted that 80% of individuals surveyed have heard of Bitcoin, but when asked six questions about the cryptocurrency, only 30% could answer four or more correctly