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Why Peru’s Central Bank has Warned Against Crypto Trading and the Impacts of this Warning

  By David Drake   In November of last year, the central bank of Peru released a warning announcing that cryptocurrencies do not have the support of central banks and are, therefore, risky investments. According to the bank, digital currencies pose a risk to investors because they are subject to high volatility and are vulnerable to fraud and the application of illegal financial activities. Peru’s central bank made this announcement at a time when the cryptocurrency industry was going through a rough chat that had seen the price of Bitcoin drop below the $4000 mark for the first time since it hit a high of almost $20,000 in December 2017. By the end of 2018, the overall market capitalization of the cryptocurrency industry had dropped by more than 70%. Growing Interest Even though there are currently no indications of Peru developing crypto-related regulations, it has been established that back in ... Read More »

Trading With Cryptocurrencies is Risky, Warns Peruvian Government

  By David Drake   The topsy-turvy cryptocurrency roller coaster ride hit another descent as the government of Peru put up a staunch resistance to its trade and use. This came as the prices of Bitcoin and other leading cryptocurrencies took a huge hit last month, suffering an 80 percent fall in value since the start of the year. The Peruvian central bank took a stand against cryptocurrencies, warning investors that dealing in these digital coins is risky business. The proclamations against cryptocurrencies are true, they have highly volatile prices, are vehicles for illegal activities, and are highly prone to fraud because of their decentralized system. However, ignoring what can be viewed as a great avenue for fiscal change can also be a costly mistake. Governments and regulators have the responsibility of finding a way to ingrain digital assets in their financial systems to benefit fully from their huge and ... Read More »

Peru’s Central Bank Warning: Will it Affect South America’s Cryptomarket?

  By David Drake   Some South American countries have widely accepted the use of cryptocurrencies more than others. The cryptomarket growth in this region has been linked to the need for citizens to find ways to make ends meet. Peru has experienced an increase in the use and trading of virtual currencies and is positive about its prospects. However, the Central bank in Peru has warned that cryptocurrencies, due to their unpredictability and unstable nature, are risky for investors. The bank outlined that the value of virtual currencies is not based on tangible assets, but on the trust of individuals, hence their uncertainty. The bank also noted that virtual currencies are used in illegal activities such as terrorism, money laundering and are also vulnerable to fraud. But how is this warning likely to affect the growth of cryptocurrency market in Peru and South America in general? Qupon‘s CEO, Joseph ... Read More »

Can South America Achieve Sustainable Cryptocurrency Growth?

  By David Drake   For a long time, the financial sector has largely remained unchanged, but this may no longer be the case. Cryptocurrencies are slowly but surely making headway towards transforming the way transactions are carried out significantly. For instance, companies such as Microsoft are accepting cryptocurrencies as payment for goods and services offered. The inherent benefits of low transaction costs and faster transaction speeds offer value to cryptocurrency users, compared to the current financial system. Before global acceptance can be achieved, conventional financial institutions need to start integrating the new technologies into their systems. But this might not be happening in Peru as yet after the country’s central bank issued a cryptocurrency warning. The Status Quo In its Twitter account, the Central Bank of Peru stated that digital currencies are very volatile, are being used for illegal undertakings and are vulnerable to fraud incidences. For these reasons, ... Read More »

How Reconciliation of Competing Thought Lines is Hindering Blockchain Integration in Business

  by David Drake     Blockchain technology has become a buzzword in the business world. With the promise of transparency, security, decentralization and reduction in transaction costs, businesses, the the popularity of this technology has risen fast as companies pilot it with the hope of integrating it into their operations, even without clear-use cases. “A great example is Long Island Iced Tea Corporation, a publicly traded company,” notes Bryan Stone, the CEO of HFC Coin. “The company changed its name to Long Blockchain and the stock skyrocketed. However, the beverage maker had no confirmed business plan involving blockchain. Blockchain played no part in their business. The use of blockchain was simply to hype the stock, not make their Long Island Iced Tea any better or more efficient. As a result, they were delisted from the Nasdaq Exchange,” he adds. Nonetheless, numerous innovative projects have been created, and continue to be ... Read More »

Will Predictions by Forrester Research about Blockchain Come True?

  By David Drake   A report by Forrester Research paints a gloomy picture for blockchain, saying that up to 90% of active blockchain initiatives in the US will end up being abandoned, and will “never become part of a company’s operations.” The market research firm further predicts that the majority of blockchain-based projects in the US will be put on hold this year, while at least 90% of these will not form part of operations in companies that initiated them. In addition, the research firm says companies that have been striving to incorporate the distributed ledger technology in their businesses are now scaling down on their ambitions and pulling back. These statistics show that many issues need to be considered by businesses before deciding to integrate blockchain into their processes. Among these are connectivity to a partner ecosystem, enterprise integration with internal systems, compliance and regulatory requirements, interoperability requirements, ... Read More »

80% of Companies Lack Interest in Blockchain, Does this Spell Doom for the Technology?

  By David Drake   A report published by Forrester Research on blockchain in business shows that 90% of all blockchain initiatives across industries in the US will never reach fruition. The US-based market research firm predicts that 2018 will witness abandonment of many blockchain-based projects. In fact, it notes that in some cases, they will never be integrated into the daily operations of most companies. Since blockchain got introduced globally, companies have sought to diversify their business endeavors by integrating the technology into their operations, or at least, that was the initial idea. Over the last two years, blockchain technology has been used to develop innovative projects that solve real problems. For instance, URAllowance uses blockchain-based family smart contracts while IOU is using the technology to foster online customer satisfaction. At the same time, BQT is applying the technology in hedge fund and crypto trading while Gath3r is utilizing ... Read More »

Why Running a Blockchain Suitability Test Could Save Your Business Time and Money

  by David Drake     Blockchain, the technology that underlies cryptocurrencies, has become popular among American companies due to its ability to enhance business efficiency. Earlier this year, Walmart made public its intention to apply the technology in managing its supply chain, particularly in tracking food products. Around the same time, Amazon launched AWS blockchain templates that allow its users to access preset frameworks enabling them to build blockchain projects for use in their businesses. Blockchain is not just bound to change the way businesses run, it has also facilitated development of innovative solutions to problems experienced on a day-to-day basis. Over the last 18 months, numerous startups have developed blockchain-based ideas to address gaps across sectors. In the social sector, such startups include the family-smart contracts platform, URAllowance, online customer satisfaction platform, IOU, and social interactions platform, ONe Network. In the business space, blockchain-backed solutions include digital asset portfolio ... Read More »

90% Project Failure: What Does this Mean for the Cryptocurrency Market?

  By David Drake   Forrester, a market research firm has forecasted a grim future for blockchain. In a report released recently, the firm estimates that up to 90% of active blockchain projects will either be put on hold or abandoned altogether. The report, further states that adoption of distributed ledger technology in businesses has reduced drastically in the United States. Though these market predictions may not sound encouraging for the nascent blockchain and crypto market, market players see them as positive signs of market growth, where hype is differentiated from reality. According to Aljaž Pogorelčnik, media consultant at BehaviourExchange, the predictions are results of simple market logic where too much hype has been used as a marketing tool. He says, “The way we see it is that many of the so-called blockchain projects – wanting to jump on the hype train – tried to create an artificial need for ... Read More »

Will South Korea’s Move to Embrace Cryptos Improve Support for ICOs?

  by David Drake    Since January of this year, South Korea has been making headlines for taking drastic measures in the cryptocurrency industry. The country was the first to pass regulation requiring players in the industry to synchronize their trading details with those in the bank. The country even went further to  place a ban on initial coin offerings (ICOs). Despite all this, South Korea is now on the path to lessen these restrictions. The regulatory agency in the country, the Financial Services Commission (FSC), has made public its plans to actualize cross border regulation of cryptocurrencies. At the same time, the Bank of Korea has said that digital currency investments pose no threat to the financial market in the country. According to the bank, the balance of cryptocurrencies in domestic banks accounted for 8% of the total $1.79 million deposited in brokerage houses by the end of 2017. ... Read More »

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