Accenture recommends legal regulation of Bitcoin Wallets

In the future, Bitcoin Wallets will be subject to the same regulatory and identification requirements as bank accounts, in response to a request from the UK Treasury for information on digital currencies.

The document, released by CoinDesk’s request under the Freedom of Information Act and dated December 2014, details Accenture’s very positive attitude to crypto currencies such as Bitcoin.

Accenture announced the Bitcoin revolution

“Digital currencies are at an early stage of development such as usage, but they will remain and the underlying technology in particular has the potential to reinvent many aspects of finance. However, the document also contains risks of digital currencies, such as high price volatility, lack of customer protection or loss of capital due to forgetting one’s Bitcoin revolution key or fraud: https://www.geldplus.net/en/bitcoin-revolution-review/

Proposals for regulation
According to Accenture, Bitcoin’s biggest problem today is its importance and use in money laundering. The company claims that the same identification requirements necessary to create a bank account should also be applied to Bitcoin Wallets.

“Just as governments prescribe identifiable bank accounts (either through name tied accounts or other credentials), a requirement for named, identifiable crypto currency wallets would be a core component of a secure, legitimate digital currency economy,” the document goes on to say.

This is followed by a proposal for a centralised body to “monitor and control digital currency wallets”.

Accenture, however, repeats several times in the document that these requirements should be limited to wallets and not applied to digital currencies in general.

Each regulation should be “responsible and proportional”, with clear rules and responsibilities for participants and users of digital currencies.

The submission further states about Bitcoin loophole

“Hard regulation (or application under historical conditions) could limit Bitcoin loophole innovation – to avoid this, a flexible regulatory regime should be put in place that is specifically geared to the digital currency market and evolves with its growth”.

Limited action
In the 16-page document, Accenture proposes limited trading opportunities to the government, among others:

Regulations that allow the recognition of digital currency wallets as unique and can therefore be assigned to specific users through know-your-customer checks.
Authorisation of organisations (Authorised Digital Currency Wallet Institutions – e.g. banks) to offer checks and their verifications to legitimise and enable identifiable wallets
Creation of framework conditions for clear rules and responsibilities for all participants in the digital currency market, which contribute to the prevention of financial crime by controlling the wallets (AML, sanctions).
According to the document, the above-mentioned means “are intended to catalyse the development of a secure, legitimate digital currency economy”.

Heiko Maas calls for new payment channels – How about Bitcoin?

HOME INSIGHTS COMMENT HEIKO MAAS CALLS FOR NEW PAYMENT CHANNELS – HOW ABOUT BITCOIN?
Federal Foreign Minister Heiko Maas (SDP) made a comment on the transatlantic partnership with the USA in a guest article in the Handelsblatt on Tuesday 21 August. Among other things, he called for Europe to gain more financial independence from the US – also through new payment channels. Even if he does not explicitly intend this, Maas’ statements can also be read as a plea for the Bitcoin as the global reserve currency.

Europe and the USA: Partners at Bitcoin revolution level

The goal should be a “balanced partnership” in which Europeans and Americans meet at Bitcoin revolution level. Europe must become a pillar of the international order. This also implies a certain degree of independence for Europe – both militarily and financially. Maas recommends, for example, that the European Union conduct its own Bitcoin revolution together and in unison – independently of the USA.

Even more decisive, however, is the second point addressed by Maas: financial independence from the USA. According to Maas, it is “indispensable” that Europeans set up independent payment channels, set up a European Monetary Fund and think about an independent Swift system. If you read between the lines, then Maas is calling for nothing other than the decentralisation of the global financial system – sounds familiar.

Since the election of American President Donald Trump at the latest, the transatlantic relationship seems to be slipping from one low to the next. So his mantra “America first” is to be seen as a departure from the often invoked Western community of values – which in reality was often more of a Western community of interests. Trump describes NATO either as obsolete or as urging the European member states to increase their military budget. At the same time, he also starts a trade war with European partners, which is conducted with customs duties and damages both economies.

From the point of view of the German government, this is reason enough to consider possible alternatives to the existing economic and security architecture of the world. Federal Foreign Minister Heiko Maas does this in a guest article published in the Handelsblatt on Tuesday. There he writes that the drifting apart of Europe and the USA has been going on for years, independent of Trump’s presidency. He therefore calls for Trump not just to sit out and then return to normality, but to “re-measure” the partnership.

Bitcoin loophole: Breaking the Dollar’s Power

Since the end of the Second World War, the US dollar has been the global reserve currency and at the same time the most important source of US global power. This Bitcoin loophole power is sharpened by Maas to a concrete event: the withdrawal of the USA from the nuclear agreement with Iran and the associated Bitcoin loophole economic sanctions. Although the agreement was unilaterally dissolved over the heads of the Europeans, this also puts European and German companies under pressure not to do business with Iran.

Interestingly, the role of the US dollar in the fight against Iran is a point made by US MP Brad Sherman in Congress’s Finance Committee over a month ago – as an argument against Bitcoin. According to Sherman, Bitcoin should be banned because it threatens the role of the US dollar as a source of US strength in the world.

Maersk and IBM form joint venture for Blockchain

The Danish shipping company MAERSK and the American technology group IBM yesterday announced their intention to set up a joint venture. The aim is to offer more efficient and secure methods for global trade by using blockchain technology. The new company’s mission is to provide a jointly developed digital platform for global trade, based on open standards and tailored to the global shipping ecosystem.

The cost and complexity of the news spy continues to grow

Over $4 trillion of goods are shipped annually and over 80% of all goods consumed daily are shipped across the ocean. For many goods, the news spy maximum cost of the documents required to process the trade is one-fifth of the news spy costs. The World Economic Forum predicts that by removing barriers in international supply chains, world trade could grow by almost 15%, which would mean higher economic performance and more jobs.

The possibilities of blockchain technology provide an ideal basis for large networks with many different partners. They work in a similar way to a shared ledger and enable common, unchangeable records of all transactions that take place within this network. They also allow authorized partners to access trusted data in real time. It allows the various trading partners to have a common view of the transaction that has been approved by all, while at the same time ensuring trustworthiness and data protection.

By using this Bitcoin secret, a completely new system of instructions and approvals can be introduced into the flow of information

Maersk, a global leader in container logistics and IBM, a leading provider of blockchain, supply chain visibility and interoperable enterprise solutions, will use blockchain technologies and other cloud-based open source technologies, artificial intelligence, IoT and analytics applications for the new platform, which will be delivered through IBM Services like explained in this Bitcoin secret review. It is designed to help companies track the movement of their goods across international borders. Manufacturers, shipping companies, transport companies, ports, terminals and customs can all benefit – and ultimately Bitcoin secret.

“This new company represents a milestone in our strategic efforts to drive the digitization of global trade. The potential of a neutral, open digital platform for a secure and easy exchange of information is great and everyone along the supply chain can benefit from it. By combining our knowledge of commerce with IBM’s blockchain and enterprise technology capabilities, we believe this new company can make a real difference for the future of commerce,” said Vincent Cler, says Vincent Clerc, Chief Commercial Officer at Maersk and future CEO of the joint venture.

“The major advances IBM has made on blockchain show that this technology can drive the emergence of new business models and play an important role in how the world will work together to build smarter relationships in the future. Our joint venture with Maersk also means that we can now increase the speed to make this exciting technology available to millions of organizations that play an important role in one of the most complex and important networks – the global supply chain. We are confident that the blockchain will be used in this market as a leading technology to unlock new business opportunities”, says Bridget van Kralingen, Senior Vice President, IBM Global Industries, Solutions and Blockchain.

Tari – a decentralized asset protocol on Monero

On Reddit, one of the Monero stewards, Ricardo Spagni aka. Fluffypony, announced a new project: Tari. What is behind the name and what should a decentralized asset protocol be anyway?

Tari is the name for a decentralized asset protocol on the Monero block chain. The best way to explain the project is to look at the bigger brother Bitcoin. On Bitcoin there is a similar protocol, CounterParty. CounterParty is a protocol that is based on Bitcoin and inherits certain attributes. With CounterParty many functions can be added to the ecosystem, for example programmable Smart Contracts, bets, tickets and coupons, derivatives, Token Controlled Assets and much more. So Tari will be the “CounterParty of Monero”.

How to raise the Bitcoin loophole project

Fluffypony describes in his Reddit entry that Tari itself is built with the same principles as Bitcoin loophole. Better said, there will be no ICOs and the project should be as decentralized as possible (even if the initial phase is expected to be comparatively centralized). Fluffypony himself wants to dedicate himself to Tari and already handed over many of his functions to other contributors from the Bitcoin loophole project. The CEO position of Web Wallet MyMonero was given to Paul Shapiro, the CEO position in GloBee was given to Felix Honigwachs. Ricardo even wants to lay down his role as lead maintainer of Monero CLI repo in the long term.

The founders of it are Ricardo Spagni, Naveen Jain and Dan Teree.

The programming language for Tari should be Rust. With the choice one would like to prevent above all that the urgently needed Monero programmers do not migrate to Tari. On the other hand, Rust is a good choice for ventures like Tari.

The project is – just like Monero – completely Open Source. So anyone who wants to can participate in the development. The financing comes from venture capital companies such as Redpoint, Trinity Ventures Canaan Partners and Slow Ventures.

Functions in the news spy

Tari should get its own token and be mined as sidechain with the same proof-of-work algorithm as Monero. That means, miners have the possibility to get the tari token for the Monero mine at the same time. It should also be possible to swap Monero and Tari with the news spy.

As far as the other functions of Taris are concerned, much is still uncertain. In principle, the same functions are conceivable as CounterParty. Especially tickets, loyalty points and in-game items could be connected with Monero through the technology.

The Tari project is still in its infancy at the moment. This means that there is no code base yet, but the focus is on the architecture of the project.

The developers of Tari Lab – an organization based in Johannesburg – will also work on a lighting network router implementation that supports Bitcoin and Monero. This will also allow Monero to benefit from the advantages of an off-chain solution.

How to join in and stay up to date
The first point of contact for Tari is his own website. A separate subreddit is set up for discussions and news of all kinds. If you want to chat with other contributors, you can do this either on Telegram or on IRC channels (#tari; #tari-dev; #tari-research).

Western Union tells Bitcoin it’s going to fight

The global payment service provider Western Union has launched a new platform that allows companies to receive customer payments within minutes.

Increasing competition from the digital currency market has apparently pushed Western Union to launch a new service called WU EDGE. The new platform offers free B2C transactions around the globe. Western Unions (NYSE:WU) WU EDGE was apparently created to compete with the Bitcoin payment service providers who have been offering such a direct payment service since its inception. Nevertheless, WU EDGE does not charge users an exchange rate fee.

WU EDGE, a first attempt to keep pace with cryptosoft

Until recently, there were very few ways for people to easily send money across geographic boundaries like this https://www.geldplus.net/en/cryptosoft-review/. Those who work with their families in advance, do business with international clients or are involved as freelancers in global cryptosoft projects were usually only able to make costly bank transfers, MoneyGram or Western Union. In all cases, the client had to accept high transaction and exchange rate fees. Depending on the transaction volume, a proud sum can quickly come about. But things have changed since Bitcoin and other digital currencies entered the global financial world.

Bitcoin has quickly mixed up the entire financial sector with fast transaction times and very low transaction fees within just a few months. The blockchain technology underlying the digital currency is also currently causing a sensation. Many banks and large corporations are putting the technology through its paces, because everyone is hoping that integration will bring great benefits to the otherwise inefficient financial world. Since Bitcoin is based on an open source solution, companies can integrate the technology relatively easily and benefit from faster and cheaper transactions. Away from the high transaction fees at Western Union & Co.

The WU EDGE (Union Enterprise Digital Global Exchange) platform was created by the Western Union Business Solution, the developer arm of the Western Union Company. WU EDGE is currently available in seven countries, including Germany, Austria, France, Italy, Hong Kong, Poland and the Czech Republic.

In a statement, the crypto trader of Western Union Business Solutions Kerry Agiasotis said:

“Overseas crypto trader have never been as easy as it is today. Today, we can complete an international transaction in just a few minutes. Since the launch of the WU EDGE platform, crypto trader companies have been using the service to expand their competitive advantage, create jobs and invest.”

WU EDGE continues to strive for a platform that brings buyers and sellers together and offers real-time payments. Bitcoin, on the other hand, enables every individual on earth to make a transaction, whether it is a company or an individual.

In the future we will probably see more of those platforms that will try to compete with digital currencies.

At the end of the day, the customers will benefit in any case and the expensive “monopoly” of the few providers will come under increasing pressure.

More privacy for Bitcoin with Taproot

Taproot should significantly increase Bitcoin’s privacy. This approach relies on multi-signatures, to be exact, on Schnorr multisigs.

In the worries about price developments, ETFs and the trench (r)ampf between Bitcoin and Bitcoin Cash one forgets that Bitcoin is also developing technically. Beyond these public debates, the developers have not only activated Segregated Witness or advanced the Lightning Network. They are working on things like Smart Contracts, Tokenized Assets or privacy on the Bitcoin blockchain.

The latter is something very important. On the one hand, privacy is essentially one of the ideals of the cypher punks, and on the other, it is only through this that the fungibility of Bitcoin can be increased. Even Bitcoin maximumists have to admit that crypto currencies like Monero that rely on anonymity are currently ahead of the field here. It’s understandable that the Bitcoin community wants to catch up here.

Taproot – More privacy with multi-signatures

Taproot is an idea that Gregory Maxwell presented in the Bitcoin developer mailing list at the end of January. The core of the idea is the use of multi-signatures. We briefly discussed multi-signatures in connection with Schnorr signatures. The idea is that transactions related to previously created multi-signatures on the blockchain look like other transactions.

The concept is quickly described: Let’s say Alice has the public key Pub_A and Bob has the public key Pub_B. We can make a mutisig C = Pub_A + Pub_B from it. From this and a timelock script a combined public key is generated. The timelock script is primarily available, similar to payment channels, to allow Alice and Bob, if their agreement breaks apart, to access their funds again after a fixed time. Alice and Bob can now form a 2/2 signature over P, that is, a multi-signature that requires consent from both. With this multi-signature, transactions can be initiated in which it is not known whether Alice or Bob were behind it. Only the combined public key is stored on the block chain.

Such a development would not only improve the privacy of Alice and Bob. Similarly, the transaction history of a token on the Bitcoin blockchain would no longer be as transparent, which would be an important step forward in terms of fungibility.

Schnorr Signatures: The Stumbling Block for Taproot

If Taproot is actually the solution for a central problem of Bitcoin, the question arises: Why hasn’t this solution been implemented yet? The problem is that you need Schnorr multi-signatures for Taproot. Without Schnorr multi-signatures you cannot transform multiple keys into a single key. In this respect Taproot waits for Schnorr.

Though it goes on this front. Since the beginning of July, several developers have been working on a Bitcoin improvement proposal for Schnorr signatures. There are also other project ideas like Graftroot, MAST or SIGHASH_NOINPUT that require Schnorr signatures. Accordingly, one could hopefully say that this high demand for the new signature type would speed things up.

The problem, however, is prioritization. Implementing all these ideas at the same time is too complicated and risky. On the other hand, the different projects would each result in a small soft fork and often end in a change of address format. Apart from the hurdles for Bitcoin users, privacy would be at least initially gone, especially in the case of Taproot.

You can see that the Bitcoin developer community is struggling with logistical rather than fundamental problems with regard to Schnorr signatures. Although the developers, partly for security reasons, partly because of difficulties in reaching a consensus, are not exactly known for quick decisions, there is a lot going on in the community, so that one can be curious when Schnorr, Taproot and the other projects will become real.