14/09/2018: Biggest Stories in the Cryptosphere

1. Korea To Use Samsung’s Blockchain To Tackle Customs Fraud

South Korea is planning on employing Samsung’s blockchain technology to fight customs fraud. The customs authority wants to use Samsung’s Nexledger blockchain to create a decentralized customs clearance system. Samsung’s IT arm published on its website the news that it signed a Memorandum of Understanding (MoU) with the Korea Customs Service. The document was also signed by other 48 local institutions, public agencies, shipping and insurance companies included. The amount of organisations taking part in the project means that a more complete picture will be created with the final objective of decreasing document forgery. However, this is not the first time Samsung SDS partners with the South Korean government. Last year, we reported on Samsung SDS and the Seoul government finalising an agreement for the establishment of a blockchain-based platform for the public sector.

2. ECB Is Not Planning On Issuing Own Cryptocurrency

At the beginning of this year, we revealed that European Central Bank (ECB) President Mario Draghi stated, during a European Commission meeting, that he would not exclude the possibility of European banks holding Bitcoin in the future. However, it has now been reported that Draghi rejected claims ECB itself would issue its own cryptocurrency. He supported the decision by mentioning the ‘fragility’ of the underlying technology along with a heavy preference for cash payments in the eurozone. Draghi said that the technology needs further development. Furthermore, in the EU, 80% of payments are in cash, representing the 54% of the value of all payments. Although, it should be mentioned that cards enjoyed a 7.9% increase in 2017.

3. Australia PM Backs Blockchain

Australia’s newly-elected PM Scott Morrison is backing blockchain technology. The Prime Minister believes that the technology will increase competitions in various sectors, first of whom banking. Morrison made the revelation while talking with reporters. He was asked about his stance on cryptocurrencies in the financial system. He said that during his role as Treasurer, he made some researches but doesn’t believe they are the solution to all of the sector’s problem. A different approach seems to have been adopted when changing the topic to blockchain. The PM affirmed that blockchain, and distributed ledger technology in general, will bring many opportunities to the financial services industry. He named ‘consumer data right, open banking reforms and legislation’ to start. This will benefit small banks, and consequently, increase consumers’ power.

4. Robinhood’s Real Profit Generated From Data Selling

The Robinhood mobile app is famous among millennials for offering a commission-free service. It has now been revealed that they counterbalance this by making millions through the sale of users’ data to high-frequency trading (HFT) companies. The news was revealed on a Second Quarter SEC filing. Many people’s attention was caught as they felt it went against the company’s brand messaging of transparency and focus on individuals rather than Wall Street banks. Robinhood previously stated it “generates profits by margin lending and interest generated from the balances of customer accounts”. However, most of the profit seems to be coming from here. The mobile app charges ten times more than other financial companies.

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Sources:

https://bitcoinist.com/no-such-thing-as-a-free-lunch-robinhood-user-info-sold/

https://d2ue93q3u507c2.cloudfront.net/assets/robinhood/legal/RHF%20PFO%20Disclosure.pdf