17/04/2018: Biggest Stories in the Cryptosphere

1. IMF Managing Director Wants Central Banks To Be Open To Cryptocurrencies

The International Monetary Fund wants to be at the forefront of the central banks’ race against digital currencies and cryptocurrencies. In order to do so, the organisation is calling for authorities to differentiate between actual threats and unfounded concerns. IMF Managing Director Christine Lagarde believes that regulations should help these innovative technologies grow while reducing risks, rather than work against them. Currently, 4.8 % of the world’s foreign exchange reserves are represented by digital currencies, which amount to approximately US $300 billion. Despite these technologies being recent, some central banks and governments are already trying to adopt and adapt. For example, Japan is home to many crypto exchanges, while China has created a research institute to investigate digital currencies. Lagarde also acknowledged the risks involved in this market. However, she stated that the assets involved are not big enough to pose a threat to the financial ecosystem. Furthermore, the managing director went on to say that there is a need to educate the public, as the initiative would reduce the number of companies taking advantage of their financial illiteracy.

2. Swiss Banking System Will Be Impacted The Most By Blockchain

We previously reported on investment service Moody’s stating that blockchain could help the US housing market save up to $1 billion. According to a report the giant has recently published, the Swiss banking system would be the most disrupted by blockchain technology. Blockchain would help cut transaction costs and processing times. Banks fees and commissions would also be reduced. However, because these represent half of Swiss banks’ revenue, it would create significant problems to the current structure. The role of the intermediary loses importance in this scenario. Still, it needs to be noted that so far Switzerland has adopted an open approach towards blockchain. Zug, one of its regions, has even been labelled ‘Crypto Valley’.

3. Chile’s Crypto Exchanges Bring Fight Against Banks To Court

It was previously reported that crypto exchanges BUDA and Crypto MKT were calling for the Chilean Association of Banks (ABIF) to provide clearer regulations. This was due to issues with local banks refusing service to them, as a ‘blanket ban’ approach has been adopted. The exchanges, joined by Orionx, are now going to court, where a hearing has been agreed. The main concern is the fact that the industry will not be allowed to grow in a safe business environment, if the general approach doesn’t change. Despite still being relatively small, the industry in Chile has grown considerably. The exchanges are self-regulated, and standards issued by the financial industry are being followed. Some believe that the government is behind the decision.

4. One Of The Largest Shopping Centers In Europe Could Soon Welcome Crypto Payments

Eligma, a blockchain-backed platform, is currently testing a beta version of its EliPay technology, which enables cryptocurrency payments. If successful, it will be possible to use the app to make purchases in Slovenia-based BTC City, one of the largest shopping centres in Europe. Many retailers have even already signed letters of intent. The 450 store mall would be one of the first establishments to offer this kind of service. However, Eligma has bigger plans: EliPay is part of a project aimed at facilitating the shopping experience, which includes an artificial intelligence (AI) system which would record transactions and provide recommendations based on previous purchases.

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Sources:

1. https://www.businessinsider.com.au/the-imf-chief-just-asked-the-worlds-central-banks-to-give-cryptocurrencies-a-chance-2018-4
2. https://medium.com/swlh/12-04-2018-biggest-stories-in-the-cryptosphere-d4f4296557f9
3. https://www.cnbc.com/2018/04/16/blockchain-to-disrupt-swiss-hold-on-global-bank-system-moodys-says.html?__source=twitter%7Cmain
4. https://medium.com/swlh/28-03-2018-biggest-stories-in-the-cryptosphere-2a7ee7ce4add
5. https://www.ccn.com/chilean-cryptocurrency-exchanges-take-banking-blockade-to-appeals-court/
6. https://cointelegraph.com/news/blockchain-platform-prepares-to-test-cryptocurrency-payment-system-in-major-shopping-mall