Stephen Schwarzman, CEO of
Blackstone, an alternative investment firm, stated that blockchain was “a
sound, exciting technology.” However, reported that bitcoin “pretty
odd,” and vowed never to buy any.
Schwarzman stated that he has a
tough time understanding the Bitcoin.
Bad behavior related to money should be controlled. This is not possible without government
control. Bitcoin, in the absence of
government control, encourages bad behavior. He further opined that blockchain
technology, when applied to non-tradable, was a good thing.
Schwarzman did not have anything
to comment concerning Facebook’s Libra and its launch. He is, however, open to the idea of
privately-created and controlled cryptocurrencies.
He might be okay about
cryptocurrencies if cryptocurrencies would solve the criminal behavior problem
and the problem of controlling the money supply.
With the Bakkt platform coming up
with its physically-settled Bitcoin futures contracts, analysts are
contemplating on what might be the critical period for Bitcoin and
The daily transaction fees for
Ethereum surpasses that of Bitcoin, and this trend is expected to continue as
Some analysts are of the opinion
that the fees are an accurate indicator of the demand level, including the
transaction count and the transaction volume. However, both of these are
subject to spoofing.
A report that was published
recently stated that “Tether accounted for over 25% of all Ethereum
transactions on September 8th, and has consistently accounted for more than 10%
of all Ethereum transactions since mid-August.”
Ethereum has flipped Bitcoin fees
several times in the past.
Anthony Sassano tweeted: “The fee flippening is upon us ETH is on the
verge of overtaking BTC in daily tx fees. As of Sep 15th, ETH had $182,899
daily tx fees & BTC had $185,993. ETH has flipped BTCs fees briefly in the
past, but it’s now driven by Tether which should be a constant source of demand.“
In one of the forums it was
published, “The bitcoin protocol supports a lot more than just sending coins
from A to B, even though that’s mainly what you see in the normal client
nowadays. The miners need to accept “unusual transactions,” though,
as long as they adhere to the bitcoin protocol.”
Recently, several hundred
entrepreneurs, technologists, and innovators gathered at the Tel Aviv
Blockchain Week (TLVBW) to explore what is driving the cryptocurrency industry.
Israeli’s understand duality well. About
430 people attended the D&DD Summit on Sept. 10. In the conference, it was revealed that no
bank has agreed to open the account for the IBA.
Meni Rosenfeld, IBA chairman, stated: “So we cannot even register members
Wells Fargo & Company have come up with plans to launch their cryptocurrency backed by fiat money.
The bank’s international
locations would be able to exchange Wells Fargo Digital Cash among their global
network enabling the internal book transfers of cross border payments. The bank has already tested the transfers
between US and Canadian accounts using the USD.
Lisa Frazier, head of Innovation
Group at Wells Fargo stated, “We believe that DLT holds the promise for
different use cases, and we are energized to take a significant step when it
comes to applying the technology to banking in a scalable and material way.
A smart contract application,
which is a kind of business automation software, will be used to support the
digital currency exchange process. Since this coin has its intrinsic value tied
to fiat currency, its value is based on the supply and demand of virtual money.
Avivah Litan, VP of research at
Gartner, stated, “The train has left the station and will start moving the
sooner it gains acceleration.”
Wells Fargo is a significant
money mover, and currently, they are under pressure to work using the
traditional methods of the money transfer system. However, the blockchain would provide for an
efficient payment network. The
implementations are customized in a way to favor high velocity and highly
secure banking data that is private.
The Stable coin is not only for
banks, but several giant technology companies are also creating their versions for
their customers to store value.
Facebook’s Libra is a stable coin and Calibra; a crypto wallet are all
examples of the increasing adoption of the stable coin by different sectors.
Facebook has the support of major
corporations like eBay, PayPal, Uber, Lyft, Mastercard, and Visa.
Visa has recently launched a
debit card, which will permit the transfer of fiat money which has been
converted from cryptocurrencies that have been stored in online wallets.
There are nations, which have
just a few or no options to open a bank account. They are relying on expensive remittances to
transfer money home, mainly if they are working far from their native country.
The Distributed Ledger Technology
from Wells Fargo provides for a highly secure record of transactions providing
for “near real-time money movement,” which is trustworthy in a way to
not affect the underlying account.
The DLT system from Wells Fargo
has the potential to provide for real-time financial interactions covering
multiple accounts through multiple market places across the world.