Central bank blues

UAE virtual currency regulation, Miami hackathons, Coinbase vs IRS, Russia's FinTech group, Deloitte's blockchain lab
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January 17th, 2017
"What is wanted is not the will to believe, but the will to find out, which is the exact opposite." – Bertrand Russell
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With the market's eyes on potential virtual currency regulation in China, another central bank is taking steps to increase control over digital payments.

The central bank of the UAE has released a new regulatory framework for payment services providers, which (among other things) prohibits them from using virtual currencies.

CoinDesk spoke to experts in the region to get their take on the news. On the whole, there seems to be some confusion as to the intent and scope, while recognizing that the central bank's actions were understandable given its mandate as a monetary watchdog.

No-one believed that this move indicates diminished enthusiasm for the technology – the region has been active in blockchain research and testing.
 
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Just a couple more weeks to go before the launch of our CONSTRUCT conference. We have an impressive line-up of founders, CTOs, CEOs and other really smart people for two intense days of workshops, panels, demos and networking.

So far we're expecting about 400 developers, engineers and industry leaders – if you're one of them, we're really excited about seeing you there!

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Wait, there's more:
CoinDesk's 2016 in Review Reviewed: The Best of the Series
*Year in Review*: The objective of our Year in Review series was to showcase some of the thinking going on in the industry. The range was broad, the styles were different and the ideas were sometimes conflicting, but we believe that we managed to portray the variety and dedication of the industry's thought leaders. In the last article in the series, we share some of our favourites. Find out what they were. (Which one of the 50 articles was your favourite? Just hit "Reply" and let us know – you can review the entire series here.)
 
Miami's Third Bitcoin Hackathon Was All (OK, Mostly) Fun And Games
CoinDesk went down to the annual Miami Bitcoin Hackathon this week. While gamification seemed to be the main theme (the winner was a location-based game, with second place going to a data service sporting a Macbook Pro Touch Bar interface), other entries used the technology to tackle serious problems (third and fourth places went to a bug bounty platform, and clinical trial management, respectively). Read more.

Coinbase CEO: IRS Battle Could Cost Startup $1 Million
Coinbase CEO Brian Armstrong has spoken out against the 'John Doe' summons sought by the IRS as it tries to gain access to the firm's user records. While willing to cooperate in ensuring that its customers comply with tax law, Coinbase objects to the scope and method of this move, and points out that it could end up costing the firm $1m in legal fees. Read more.
 
First Look: Deloitte's New Wall Street Lab is a Blockchain Playground
CoinDesk attended the launch of Deloitte's new blockchain lab in Manhattan, which brought together representatives from legacy banks, industry advocates and startups.  Read more.

Accenture: Blockchain Could Save Investment Banks $12 Billion Annually
A report released today focuses on the cost savings in financial reporting and compliance (which could fall as much as 70% and 50% respectively), as well as identity, AML controls and general administration. Read more.
 
Masters Hedge Fund: Greed and Leverage Broke Bitcoin's Rally
An investor note published yesterday from Global Advisors Bitcoin Investment predicts that bitcoin's price will remain in the $800 range for some time, although it remains bullish on bitcoin's outlook as an asset class long-term. Read more.
 
Russia's Central Bank Adds Blockchain-Friendly Firm to FinTech Working Group
As further evidence of its increasing interest in blockchain, the Bank of Russia has created a FinTech association focused in part on studying the technology, with the CEO of payments company Qiwi (itself involved in blockchain research) as lead. Read more.
 
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