Argentinian Bank Drops Out of SWIFT, Favors Bitcoin and Cryptocurrency

According to Toshi Times, Jose Dakak, the principal shareholder of Argentinian bank Banco Masventas, has stated that the bank will drop out from the global financial network SWIFT and begin utilizing the Bitcoin blockchain network to settle international payments.

Can Bitcoin Replace SWIFT?

Through a strategic partnership with Bitex, a cryptocurrency payment service provider based in South America, Dakak explained that the bank will outsource the conversion process of bitcoin to fiat currencies to Bitex, which will then send bitcoin to the recipient. The end cost would be the bitcoin transaction fee that is sent to the miners that verify transactions on the blockchain and the fee charged by Bitex.

“The service allows you to reduce costs associated with international transfers as there are no international banks as intermediaries,” said Banco Masventas.

Dakak noted that one of the initial actions the bank took to streamline the implementation process of bitcoin was to cooperate with the Bitex development team to ensure recipients of bitcoin payments can seamlessly receive cryptocurrency transactions without boundaries. Dakak stated:

“One of the actions was to contract Bitex as a strategic partner in the implementation of the Bitex platform for payments and collections operations for our clients abroad.”

The SWIFT network, which is utilized by the world’s biggest banks and financial institutions, is essentially a messaging network that enables banks to share information. Sending a payment from one bank to another requires a message to be sent on the SWIFT network, which has to be verified manually.

Sending international payments and remittance transactions on the SWIFT network can take at least five business days to three weeks, depending on the size of the payment. Because most international payments processed by banks are large, it often takes more than a week for the payment to be cleared.

argentina bitcoin
Source: Shutterstock

Bitcoin is not the most flexible blockchain network and it does not have the biggest capacity. But, it is the most robust blockchain protocol with the longest track record, equipped with one of the most active open-source development groups in the industry. Its transparency and security allow the Bitcoin network to operate as a reliable financial network for international payments.

Moreover, most international payments sent by banks, as stated above, are often large transactions that cannot be processed by remittance outlets. Although bitcoin transaction fees could be an issue for $1 to $10 payments, for payments above $1,000, the bitcoin transaction fee is a non-issue.

Why is SWIFT Still Used?

The SWIFT network is not only operated by leading banks by owned by the world’s biggest financial institutions. As such, even though the SWIFT network is outdated and utilizes an inferior technology, banks have the obligation to use it. That is, until minor banks like Bank Masventas opt out of the SWIFT network and begin to leverage public financial networks like bitcoin, which are completely decentralized and peer-to-peer.

Other banks have started to pilot blockchain protocols like Ripple and Ethereum to process international payments, which could be crucial in demonstrating the potential of cryptocurrency as an alternative to the global finance sector in the long-term.

Sweden Officially Backs a Cryptocurrency, Establishing It As Their Official Coin

It’s finally happened: a major government has just bestowed a huge vote of confidence and legitimacy onto the world of cryptocurrencies. Sweden, in an unprecedented move, just announced that they are officially adopting a certain cryptocurrency as Sweden’s official coin!

The Swedish government just informed us that they have chosen a preferred firm for the purchase and marketing of their new coin – Kryptonex Research Group. The sales of Sweden’s coin officially started on Saturday, May 19th and currently these coins can be bought only from Kryptonex Research Group.

Industry experts weren’t surprised when Kryptonex was chosen by Sweden as their preferred firm for the release of their official coin. They had all seen for their own eyes the cutting edge insight that Kryptonex had brought to the cryptocurrency markets for their clients.

For CryptoCoinHubs, , Kryptonex Research Group is not an unknown company as we’ve received dozens of e-mails from our readers

This is a firm that is widely known as the best in the industry for getting the information that is only available to a select few that lead them to be able to give their clients calls such as the 1734% rise in VEN, or the 540% rise in ETH, or the crazy 3204% increase in EMC2, and the list goes on and on.

The most astonishing part of this news may just be that a Kryptonex representative also informed us that the starting price for the official coin will be only €0.30 CENTS! That’s right, their coin is incredibly inexpensive in comparison to most other coins out there. Bitcoin for example trades at €9,000 at the time of this writing, and Ethereum, trades at around €700.

In fact we were able to get the famed billionaire investor Michael Soros’s thoughts on Sweden’s new coin and this is what he had to say:

Michael Soros states: “Anytime a major corporation announces even a small partnership with an individual cryptocurrency that coin’s value skyrockets. I can’t wait to see what happens when a government officially adopts a crypto. When the name of Sweden’s coin is released many people will become millionaires practically overnight.”

A few of us at CryptoCoinHubs were curious enough to buy a couple coins just to see how everything looks and what the trading fees are like.

It was fairly easy to get the coins, but I will show you the whole process below for those that are interested.

First step was to fill out all the details. As you can see, nothing complicated so far.

Second step, I was taken to a deposit page to fill out my details.

For €250, I received 757 coins at 0.33 cents each. You can see current value of my coins on the same page.

The whole process was simple and I even received a phone call from one of Kryptonex Research Group’s friendly agents, but I didn’t really need any help as the whole process was easy enough.

To my shock literally after about 4 hours of finishing this article I checked my wallet again to see this:

In only 4 hours, the price increased from €0.33 to €0.68. At this point, I was positively surprised. I may either hold onto the coins or flip them for another coin that the people at Kryptonex told me about which they predict will also increase in price by 4 times in less than 48 hours. Their track record speaks for itself, no wonder Sweden chose them.

Kryptonex Research Group was kind enough to give us a 100% accurate coin movement price counter, so everyone can see the increase directly on this page.

OFFICIAL PRICE CURRENTLY
1 COIN = €0.66 CENTS
(Note – price is being updated every 30 minutes)

With a story of this nature news seems to be breaking every so often, we’ll be sure to update the story as needed.

You can find their promo video as well as direct coin sales by clicking on the picture below.

China Ranks Ethereum as the World’s Best Blockchain Network, Bitcoin at #13

On May 17, China’s Ministry of Industry and Information Technology released its public blockchain ratings, ranking various blockchain projects like Ethereum in the global cryptocurrency sector based on three criteria: technology, application, and innovation.

Bitcoin at #13

As shown in the chart below, the Chinese government ranked Ethereum as the world’s best blockchain network at number 1. The top five included Ethereum, Steem, Lisk, NEO, and Komodo, all of which utilize smart contracts to efficiently and securely process information in a decentralized manner.

cnLedger@cnLedger
Replying to @cnLedger

3/ Full list:
1-5: #ETH, #STEEM, #LSK, #NEO, #KMD
6-10: #XLM, #ADA, #IOTA, #XMR, #STRAT
11-15: #QTUM, #BTS, #BTC, #XVG, #WAVES
16-20: #ETC, #XRP, #DASH, #SC, #BCN
21-25:#LTC, #ARK, #ZEC, #NANO, #BCH
26-28: #DCR, #HSR, #XEM

cnLedger@cnLedger

4/ Detailed scores of the first crypto ratings by CCID Research, China’s Ministry of Industry & Information Technology pic.twitter.com/7LiJIWokge

View image on Twitter

The addition of Steem in the top five rankings of the Chinese government’s blockchain network was unexpected by the community because unlike Lisk and NEO, Steem is not a base layer blockchain technology that can be used to create decentralized applications. Steem is a content distribution platform based on the blockchain with a primary purpose of distributing content. Essentially, Steem is like Reddit based on the decentralized blockchain.

Another surprising addition to its top 10 rankings was Monero at number 9, given that several governments including the Japanese government and its financial services agency (FSA) have expressed their concerns towards cryptocurrencies like Monero and Zcash that are capable of processing anonymous payments that could be associated with money laundering and criminal activities.

The cryptocurrency community was taken aback by the ranking of bitcoin at 13, which was co-ranked with privacy-focused cryptocurrency Verge. The bitcoin community was understandably outraged by the ranking of bitcoin at 13, considering that bitcoin has the longest track record as the most secure and dominant cryptocurrency in the global market.

The argument that bitcoin’s application is limited to a form of money and payment is illogical, as the Chinese government ranked Steem, which has a single application on its blockchain network that is a content distribution platform, as the 2nd best blockchain network behind Steem.

More importantly, bitcoin has one of the most active open source development communities in the global cryptocurrency sector and it has developed innovative technologies like Confidential Transactions (CT), Bulletproofs, and Lightning Network, which allows developers to enable private transactions, process micro-payments, and with solutions like RootStock, potentially allow bitcoin to function as an Ethereum-like smart contracts platform.

Exceeded Expectations

The majority of the cryptocurrency community expected the Chinese government to rank private blockchain networks and protocols that can assist the government in surveillance or monitoring transactions at the top. Hence, the ranking of the government which placed cryptocurrencies like Ethereum and Monero demonstrate the intent of the government to remain objective in its assessment.

However, analysts have stated that the Chinese government has overlooked the long track record, hashrate, computing power, and accumulated difficulty of major blockchain networks like bitcoin and prioritized next-generation blockchain networks instead.

Earlier this month, South China Morning Post, a major publication based in Hong Kong, reported that China’s public blockchain rankings were developed by China Center for Information Industry Development (CIID), an institute that works closely with the government to advise on policymaking in technology.

The high ranking of Ethereum and smart contract blockchain networks could influence the government to potentially allow some blockchain networks to operate in China.

HSBC Completes World’s First Blockchain Trade Finance Transaction

Financial services group HSBC said on Monday it had for the first time utilised blockchain technology to complete a speedy commercial trade finance transaction that normally takes around a week using normal paper-based processing mediums.

The transaction was the first time that a blockchain – the technology which powers cryptocurrencies such as bitcoin – has been used for a commercial trade finance settlement.

CNBC reported that HSBC had issued a letter of credit for U.S. food and agriculture firm Cargill. The settlement covers the movement of bulk soybeans to Malaysia from Argentina, with the letter of credit for this issued by ING, a Netherlands based financier.

HSBC said that it is excited about the development as the user case for blockchain gets traction and support from both private and public sector officials in major markets such as the United States and China.

“The need for paper reconciliation is removed because all parties are linked on the platform and updates are instantaneous. The quick turnaround could mean unlocking liquidity for businesses,” HSBC’s head of growth and innovation was quoted saying in a statement.

Blockchain is expected to improve efficiencies, improve transparency and cut on paper trails, thereby reducing lead times for processes such as letter of credit issuance. Letters of credit are a form of guarantee by a bank that payment for a transaction will be received.

Blockchain is heavily decentralised, with various parties to a transaction linked by computers accessing the same network, giving a ledger look which could be useful in the banking sector, say experts.

Reports say HSBC utilised the Corda blockchain platform developed by R3. The company,as CCN has reported, runs one of the world’s most popular blockchain banking consortiums.

The user case for blockchain in finance and banking has been strengthened by Poland, which has now moved to store banking records on a blockchain application. On Monday, technology company, Billon said it would implement “blockchain for storage and secure access to sensitive customer information” for the banking industry in the country.

Chinese Crypto Giant Huobi Launches Billion-Dollar Blockchain Fund

Huobi Labs, a blockchain incubator that is part of the Huobi exchange, has signed an agreement with Tianya Community to build a “Global Cultural and Creative Blockchain Lab” in Hainan Province, China, alongside the launch of a billion-dollar industry fund that aims to back the blockchain industry globally.

Under the background of the “new era of Chinese socialism characteristics,” the government has given Hainan Special Economic Zone a new mission of economic reformation. President Xi Jiping, personally planned, deployed and promoted the national strategy.

Huobi To Support National Strategy

Huobi China will support the national-level strategy and will use its technology, resources, talents and capital in the global blockchain industry to contribute to Hainan Special Economic Zone development and explore the construction of an international free trade port, the company announced on its website.

This year, the Huobi Group will:

1. Move Huobi China headquarters (Not Huobi Global, Nor Huobi Pro) to Hainan in the Hainan Ecological Software Park.
2. Build 10 global blockchain labs in collaboration with top global industry companies.
3. Build a global blockchain research institute with the world’s top universities.
4. Build a 40,000-square-meter blockchain incubator.
5. Create a billion-dollar global blockchain industry fund.

Huobi Seeks Government Partnership

Huobi was among China’s biggest cryptocurrency trading platforms prior to crippling domestic regulations that effectively curtailed the industry. After closing its Chinese trading platform in October, Huobi founder Leon Li summed up China’s curtain call as a “watershed moment” for the industry before launching Huobi Pro, its international trading platform headquartered in Singapore.

Huobi’s recent announcement to offer its own token, dubbed “Huobi Token” (HT), is another step in the former Chinese exchange giant’s diversification strategy, which includes an expansion into major cryptocurrency markets in South Korea and Japan.

The utility token is based on the Ethereum blockchain’s ERC-20 standard and will be capped at 500 million tokens. ‘Huobi Token, short for “HT”, is a token system based on Blockchain launching and management,’ the firm explained in a post on its website.

Philippines Legalizes Cryptocurrency in Economic Zone of CEZA

The Philippine government is welcoming nearly a dozen cryptocurrency companies to operate in a special tax-friendly economic zone situated in close proximity to a number of neighboring countries.

According to a Reuters report, the Philippines will legalize the entry of  top 10 blockchain and cryptocurrency companies to operate in the Cagayan Economic Zone Authority (CEZA), a government-controlled economic zone that is within an hour’s flight away from the likes of Hong Kong, China, and Taiwan.

The government aims to woo cryptocurrency companies to operate out of the economic zone with tax benefits to help generate employment opportunities locally, Cagayan Economic Zone Authority chief Raul Lambino told Reuters.

Notably, the official confirmed that the government will also license – in effect legalize – the cryptocurrency firms in the special zone.

The companies will also be allowed to operate exchanges, offer initial coin offerings (ICOs) and engage in cryptocurrency mining within the zone, he added, stating:

We are about to license 10 platforms for cryptocurrency exchange. They are Japanese, Hong Kong, Malaysians, Koreans…They can go into cryptocurrency mining, initial coin offerings, or they can go into exchange.

There is a caveat, however. Any exchange of fiat money into cryptocurrencies or vice-versa should be conducted beyond Philippines’ borders to avoid infringing the country’s laws.

To aid in bringing jobs to those companies, the economic zone’s regulator is also considering establishing a new financial technology university in the economic zone with a specific focus on blockchain technology, Lambino added.

The embracive stance follows newly introduced rules by the CEZA in February which allowed cryptocurrency companies to legally establish offices and facilities in the special zone. To gain a license, companies must invest at least $ 1 million in the zone over two years and pay up to $100,000 in licensing fees.

Meanwhile, in the mainland, the Philippines’ central bank was previously known to be reviewing the applications of a dozen operators vying to register and launch cryptocurrency exchanges in the country as recently as December. It remains to be seen if these operators have since switched tact to register in the economic zone instead.

The Philippines became one of the earliest nations in the world to publish regulations for cryptocurrency exchanges in early 2017. The deputy director of the central bank, appearing in a televised interview in October 2017, lauded the ‘pioneering regulation’ and said bitcoin, as a monetary instrument, is “fast, near real-time and convenient”.

Bitcoin Price Moves To $9,000 With Strong Momentum

The bitcoin price has surpassed $8,800 after rising more than 6 percent over the past 24 hours. Volumes across major cryptocurrency exchanges remain strong and the daily trading volume of the market has increased past $26 billion for the first time over the past month.

$9,200

On March 21, the bitcoin price tested the $9,200 support level but failed to sustain momentum for mid-term growth and fell below the $6,500 mark within two weeks after struggling to bounce off $8,200.

At this juncture, it is likely that the bitcoin price tests the $9,200 level it had touched in late March, and a movement past that level would lead the bitcoin price to the $10,000 region by the end of April.

In November 2017, investors described the $10,000 mark as a psychological threshold and a key milestone. At the time, traders predicted the price of bitcoin to surge substantially subsequent to surpassing $10,000. Almost immediately after breaking into the $10,000 region, the bitcoin price surged to $14,000 and eventually to $20,000.

Since the initial correction of bitcoin in February, the market has not been able to demonstrate any sign of stability. The price of most alternative cryptocurrencies (altcoins) and tokens followed the short-term trend of bitcoin and the volume of regional exchanges in Japan and South Korea significantly decreased.

Fundamentally, bitcoin is in an ideal position to initiate a new rally in both the short and mid-term, given that the adoption of cryptocurrency in general has started to increase. Moveover, in late 2017, the majority of speculators who bought into the cryptocurrency market did so out of FOMO, or fear of missing out, without solid knowledge in the structure and fundamentals of cryptocurrencies.

Over the past five months, the awareness of cryptocurrency has increased drastically and a substantially large number of individuals have started to understand the basics of decentralized financial networks and cryptocurrencies.

As such, fintech company Smart Valor CEO Olga Feldmeier stated that in the next two years, the bitcoin price will reach a value of $100,000, and within 2018, the bitcoin price will surpass its previous high at $20,000.

“I believe that we will see a comeback to the height achieved at the end of 2017 this year. Over the next two years I still predict we could see it reach a value of $100,000,” Olga told The Independent.

Rise of Altcoins

Throughout this week, CCN reported that the altcoin season may have started with strong consistent performances of small cryptocurrencies and tokens. Today, several tokens like STORM have recorded a gain of above 30 percent against bitcoin and about 40 percent against the US dollar.

Investors have gained more confidence in the cryptocurrency market and are now willing to take more risks by investing in cryptocurrencies with higher volatility and lower liquidity.

Still, in an interview with FT, Ethereum creator Vitalik Buterin stated that the valuation of most altcoins or tokens cannot be justified and are overblown. “There’s projects that never had a soul, that are just like, ra-ra, price go up. Lambo, vrromm, buybuybuy now!” Buterin said.

Bitcoin: The Return of The King

Most of you have seen this little, tiny, minuscule, almost invisible jump in volume that happen on the 12th April 2018. So far, it has been the singular highest jump in volume ever seen as market cap went from ~ $270 Billion to ~ $300 Billion. It means around $30 Billion were added to the market in less than 3 hours.

Bitcoin’s dominance remains over 40% and I suspect it will continue to rise as most money that just entered the market should be institutional. There are some strong contenders, like Ripple, due to the nature of the backers (mainly banks and financial institutions).

Nevertheless, there are two ways of looking at this, in my own personal opinion:

  • Either the money that just entered the market stays with the King, or
  • It’s distributed among preferential projects (top-10 I would bet on).

Because there is currently a huge time gap between technological developments and price, meaning price moves due to pure speculation rather than technological advancements or issues that arise. If you think differently look at the examples of IOTA or Verge which have been hacked, however prices of both coins kept rising afterwards. Heck, think about bitcoin: when did the price hit its maximum valuation? At the same time fees were the highest ever.

Price is dictated by volume and what happened was a grand spike in smart-money coming into the market. Maybe some of the money that left at the end of January is coming back.

 

Should we expect the price to continue rising?

Some technical analysts believe price will continue to rise. Then again, the opposite might happen depending on many factors:

  1. Geopolitical tensions between Russia and the U.S. will most definitely shake-up traditional markets. This will no doubt influence the amount of money available to invest in the cryptocurrency market. I’m just not sure how this will affect all markets as at the end, there might be a surprising shift; people could begin to trust more in bitcoin due to its security, resilience and the fact it’s independent from governments and economies.
  2. Investors going short on bitcoin got destroyed and likely lost a lot of money. What can counter this is the CME Bitcoin contracts futures price, as I expect the futures’ volume to rise exponentially. Why? That’s easy: because it’s profitable for those investing in both markets.

  1. News sources. When many positive news start to arrive we usually see a growing euphoria and hype (check google trends) from dumb-money entering the market leading to massive price runs. I see no reason for this to be different this time. If history taught us something is that it “repeats” itself, going around and around in circles.
  2. Small technological hops (pun intended) will play a massive role in the long-term future, as bitcoin and other cryptocurrencies are being given time to prepare for adoption worldwide. Hopefully exchanges won’t need to block new hordes of users signing up, bitcoin’s lightning network will be fully operational and segwit adopted by most mining agents and trading platforms.

We cannot forget price is crucial to bring new people into the market, but to keep those users technology must answer today’s problems. People do not care if money is centralized, decentralized, distributed, digital, or physical; People care about:

  • How can I get that money?
  • How much do I pay to store and transfer that money?

For truly massive adoption either the bitcoin team thinks of a way to easily distribute it among where is needed, this is, in countries where banking is limited for example, or a benign group of people develops a way to distribute the currency directly to people in exchange for something, other than money (time, attention, services, etc). I understand those who think until this currency is used by business worldwide it’s a joke. I get it, I truly do, however if the purpose of this cryptocurrency is to bank the un-banked and to be successful in connecting communities worldwide by allowing anyone to transfer and store value over the internet, then maybe the right way to do this would be to simply find ways to trade bitcoin for time and services in those places.

–note: i did not mention the question “how long does that money take to get to another account?”as the current banking system needs 3-5 business days for international transfers to take place. When the bitcoin network is clogged, i have personally waited around 24h for a bitcoin transfer to get approved. It still beats the banking system for personal transactions, which is the final aim of this cryptocurrency (in my opinion)–

Easier said than done

The reality, of course, is that acceptance dictates the rules of the game; businesses  have to start pushing cryptocurrencies by accepting them. At the end of the day for cryptocurrency to be used, all intervening agents must participate.

We must not forget there will always be two sides to the same coin:

  • Should we focus solely on price and volume, to master our gains? Or
  • Should we focus in improving technology scalability and marketing, to achieve worldwide adoption?

Doing one alone would be unwise as balancing both seems to be the right way for the market to grow. My only hope is that the entire community keeps improving the consensus in bitcoin (and other cryptocurrencies), never forgetting its true purpose

Ethereum , Ripple and other cryptocurrecies values riseas Bitcoin price spikes

The price of bitcoin rose by $1,000 in less than an hour, sparking massive gains across cryptocurrency markets

Bitcoin’s sudden price rise has resulted in gains across cryptocurrency markets, with ethereum, ripple and litecoin all surging in value.

Within the space of an hour on Thursday, 12 April, bitcoin rose by more than $1,000 – breaking above $8,000 for the first time since March.

The movement’s of the world’s most valuable cryptocurrency is usually reflected across other virtual currencies, and this unprecedented spike was no exception.

Ethereum, which boasts a market cap of around $45 billion, shot up in price by 10 per cent, taking it close to $500. At its peak in January, one ether was worth more than $1,300.

Similar percentage gains were experienced by ripple, which has the third highest market cap behind bitcoin and ethereum.

The altcoin EOS saw the largest gains out of all the top five most-valuable cryptocurrencies, rising by over 30 per cent to take its market cap above $7 billion.

The market-wide shift follows several months of steadily sliding prices for bitcoin, which peaked at nearly $20,000 in December 2017.

Dramatic market movements are not unusual for the notoriously volatile cryptocurrency, which can often be triggered by positive or negative news surrounding regulation and laws.

The latest surge does not appear to be related to any significant news within the cryptocurrency space, however, with some analysts suggesting the gains come from a change in sentiment amongst investors.

“In this scenario traders with short positions will start to lose money and liquidate their positions by buying bitcoin,” Ed Cooper, head of mobile at fintech startup Revolut, told The Independent.

“This causes the price to rise further and as more people start to notice the rise they buy in for a quick gain. This continues the cycle.”

Despite the gains, Cooper advised investors to be cautious about betting on a positive direction of the market beyond the short term.

“We’d need to see a sustained rise over a number of weeks to signal the end of the bear market,” Cooper said. “We’re definitely not there yet.”

UK Watchdog to Publish its Review on Cryptocurrencies Later this Year

Britain’s financial regulator and markets watchdog outline its policy thinking on cryptocurrencies with a review to be published later this year.

In revealing its business plan for the coming financial year, the Financial Conduct Authority (FCA) underlined cryptocurrencies as ‘an area of increasing interest for markets and regulators globally’. While admitting that cryptocurrencies do not directly fall under its regulatory scope, the FCA stressed that certain models of their usage bring them under its purview in a ‘complex’ landscape.

Pointedly, the FCA confirmed it would reveal its own take on cryptocurrencies, policy-wise, later this year. The regulator said:

We will work with the Bank of England and the Treasury as part of a taskforce to develop thinking and publish a Discussion Paper later this year outlining our policy thinking on cryptocurrencies.

The FCA is notably a member of the ‘Cryptoassets Task Force’ established by the British government in March 2018, consisting of the regulator, Her Majesty’s Treasury and the Bank of England (the central bank). The working group will explore and study the benefits and risks of cryptocurrencies, UK Chancellor of the Exchequer Philip Hammond said last month, helping the UK’s fintech sector to ‘grow and flourish’ in a regulatory climate that has broadly been supportive of blockchain technology and cryptocurrencies over the years.

On Friday, the FCA mandated firms offering cryptocurrency derivatives to comply with all applicable rules to be authorized, stating it would be a ‘criminal offence’ otherwise.

Earlier in February, the UK’s Treasury Select Committee, an influential group of cross-party members of parliament (MPs), launched an inquiry into cryptocurrencies in an effort to better understand them.

While the Treasury Committee confirmed it would look at risks and threats posed by cryptocurrencies to ‘consumers, businesses and governments’, committee chair Nicky Morgan stressed the group would “also examine the potential the potential benefits of cryptocurrencies and the technology underpinning them, how they can create innovative opportunities, and to what extent they could disrupt the economy and replace traditional means of payment.”

Committee member Alison McGovern added that the inquiry would help UK lawmakers and politicians to better educate themselves on cryptocurrencies before enforcing policies. “It is time that Whitehall and Westminster understood cryptocurrency better and thought more clearly about the policy environment for blockchain technology,” she stated.