News about Financial Institutions in Crypto Industry
A blockchain-powered foreign exchange repurchase agreement between Sberbank and a private equity firm based in Moscow, Interros Company has been successfully completed. Olga Zinovieva, the First Deputy CEO of Interros expressed that the Interros is “glad that we have made the first step towards the digital future in partnership with Sberbank, the leader of the Russian banking segment.”
The Silvergate Capital Corporation, the parent company of SilverGate Bank, has disclosed its relationship with the cryptocurrency industry in its IPO filing with the U.S. Securities and Exchange Commission (SEC). The company renders services to 483 crypto clients. The company quoted, “The majority of our funding comes from non-interest bearing deposits associated with clients in the digital currency industry.”
The BBVA and Banco Santander have joined the E.U. International Association for Trusted Blockchain Applications (IATBA) aimed at the development of blockchain regulation and applications. The IATBA is to be launched in 2019. The project initiative was introduced by the European Blockchain Partnership. The two banks were among those invited to join the initiative.
The Central Bank of Peru has recently published a warning to the public via Twitter account regarding the volatility of cryptocurrency. In the announcement, the Central Bank explained, “Cryptocurrencies are not supported by central banks and pose risks due to the high volatility in their price, fraud cases and their possible use in illicit activities.”
A local press has reported that the Central Bank of Azerbaijan (CBA) is not planning to introduce their own cryptocurrency. According to the report, the Central Bank Chairman of the country also highlighted previously that the cryptocurrency is often utilized for money laundering purposes. Although CBA has made it clear regarding cryptocurrency issuance, it has expressed interest about the blockchain.
The subsidiary of Raiffeisen Bank International has associated with Gazprom Neft for issuing bank guarantee on the blockchain. It was issued for the conduct of finance transaction covering four parties Raiffeisen, Gazprom Neft, Mozyr Oil Refinery, and Priorbank of Belarus. The chief of documentary transactions and trade finance, Raiffeisen, declared, “All parties were fully connected to the platform.”
The chief of International Monetary Fund, Christine Lagarde, has expressed that the central banks could release their cryptocurrency. Addressing a conference in Singapore, the chief mentioned, “I believe we should consider the possibility to issue digital currency. There may be a role for the state to supply money to the digital economy.”
A new patent for enterprise-level cryptocurrency storage system has been recently awarded to the Bank of America (BoA) by the US Patent and Trademark Office. The patent file by the BoA has elaborated, “As technology advances, financial transactions involving cryptocurrency have become more common. For some enterprises, it may be desirable to aggregate cryptocurrency deposited by customers.”
The Commonwealth Scientific and Industrial Research Organization’s Data61 division and Commonwealth Bank of Australia declared the successful trial of a blockchain application for smart money. A CommBank official expressed, “We’re excited by the potential to enable NDIS participants to exercise greater choice and control over their disability support services, while streamlining budget management and removing the need for paperwork.”
As an effort in escaping the economic sanctions imposed by the United States, Iran exposed plans in developing their own national cryptocurrency that has been announced to reach its final stage. The CEO of ISC, Seyyed Abotaleb Najafi did not disclose the launch date but made it clear that the cryptocurrency is waiting for the approval from the CBI.
