Bitcoin was once supposed to disrupt the world of remittances.
With a few exceptions, that hasn't happened, in spite of increasing need. While fintech is helping some corridors, the average fee is still high, and some regions are being penalized by banks' "de-risking" strategies.
Why hasn't bitcoin had much of an impact? A difficult regulatory environment and the absence of a startup ecosystem in key areas have led to roadblocks to broader use. And the need to convert to local currency adds costs.
Rather than facilitate low-cost transfers back home, bitcoin's main impact may ultimately be seen in streamlining compliance issues, and reducing risk for banks.
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Why Circle's Bitcoin 'Pivot' Isn't What it Seems Circle's announcement that users would no longer be able to buy and sell bitcoin on its platform is not the rejection of bitcoin nor the business pivot that it seems. Its exchange was never a main feature, and bitcoin will continue to be used as a back-end settlement rail. The move continues a trend initiated some time ago, and highlights a focus on application rather than mechanics. Read more.
What We Know About the Federal Reserve's Blockchain Stance The US Federal Reserve's recent research paper on distributed ledgers looks into their potential role in cross-border payments, with special consideration given to the potential to reduce fraud. While some industry insiders are disappointed that not much mention is made of the Fed's role in future blockchain implementation, others see it as a possible step towards a national policy. Read more.
The State of Global Blockchain Consortia We summarize the state of blockchain consortia, and as a special bonus, offer a list of the major ones and an interactive map. We also look at their strengths and weaknesses, and predict that over the next year some will fold, new ones will emerge, and only a small handful will become successful. Read more.
Time is Money as Alternative Banking Moves to the Blockchain Time-banking is an old idea, but takes on a new life when applied to the blockchain. Could labor-backed tokens become a new currency? Australia-based Chronobank aims to find out if the concept can be applied to increasingly large and spread-out communities. Read more.
Ether Prices Fall to Lowest Since February as Sentiment Sours Last week ether reached its lowest price since February. Is this market pessimism, or are we simply losing interest? Bitcoin trading indicators, however, are looking good. Read more.
US Commerce Department Weighs Blockchain at Event The US Department of Commerce co-organized an event in Washington, DC last week that focused on digital copyrighting. Regulators, entrepreneurs, academics and business representatives were in attendance, and the panels included discussions on blockchain's role in copyright and intellectual property. Read more.
A16z, USV Invest $10 Million in Blockchain Token Trading Firm Polychain Capital, set up by Coinbase veteran Olaf Carlson-Wee, has raised $10m from Andreesen Horowitz, Union Square Ventures and Boost VC. The financing is for a hedge fund that invests in blockchain tokens. Read more.
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