Bitcoin Evolution promote blockchain applications

Payment service provider Swift and central securities depositories to promote blockchain applications
February 12, 2018 | Gregor Hallmann
Payment service provider Swift and central securities depositories to promote blockchain applications

The payment service provider Swift and seven central securities depositories intend Bitcoin Evolution to jointly advance distributed ledger technologies (DLT) for applications in securities markets. The connection with existing standards and the acceptance of market participants and regulators are central to this project.

Bitcoin Evolution significant costs and risks

A recently signed Memorandum of Understanding states that the CSDs and Swift will demonstrate how DLT can be used in post-trade applications such as corporate actions, electronic voting and custody voting. At present, securities settlement – especially in areas So it was all about the Bitcoin Evolution review that require contact with many participants – is associated with extremely cumbersome manual processes that could entail significant costs and risks. The central securities depositories involved in the DLT project are NASDAQ Market Technology, Abu Dhabi Securities Exchange, Caja de Valores from Argentina, the Chilean Depósito Central de Valores, the National Settlement Depository from Russia, the Swiss Six Securities Services and Strate from South Africa. According to Swift, the accession of further central securities depositories is expected in the coming weeks.

Focus on standards
Together, they will explore new product types for the post-trade sector and examine how they can be supported by existing standards such as ISO 20022. “To ensure interoperability and smooth migration, it is critical Bitcoin Evolution that new technologies support existing standards such as ISO 20022,” said Stephen Lindsay, Head of Standards at Swift, adding:

“The promises of the technology are great on paper, but currently it lacks a key component in standardization. This project will show that there is a clear value in reusing established definitions and facilitating interoperability between DLT applications”.

The initiative also wants to establish new standards for the use of DLT between custodians and the financial industry and adapt existing standards. A further goal is to promote the adoption of these standards by other market participants and regulators. It should help that the initiative was welcomed by the International Association of Securities Service Providers (ISSA) and included in its DLT working group.

Swift embraces the blockchain
Swift launched a feasibility study in January last year to assess the suitability of blockchain technology for improving real-time reconciliation of nostro accounts. In the current correspondent banking model, banks have to monitor the funds onlinebetrug english in their foreign accounts through daily closings, which results in significant costs. But if banks could manage the liquidity of their nostro accounts in real time, they could determine exactly how much money is needed in each individual account at any given time. “And that ultimately allows them to free up significant resources for other investments,” said Damien Vanderveken, Swift’s head of research and development.

As reported by BTC-Echo, 22 globally active banks joined the feasibility study last summer, which was originally initiated with six founding banks. The field of participants now reads like the Who’s Who of the international financial world, from ABN AMRO and BNP Paribas to Commerzbank and Deutsche Bank, JPMorgan Chase, Santander, Société Générale, Standard Chartered, Sumitomo Mitsui Banking Corporation, UniCredit and Wells Fargo. Swift’s Proof of Concept uses Hyperledger* Fabric v1.0 technology in conjunction with Swift’s core functions to ensure that all information related to Nostro/Vostro accounts remains confidential and can only be viewed by the account holder and his correspondent bank partner.

Dash Embassy cooperates with WINHELLER and Wolf Theiss

Lübeck / Frankfurt / Vienna, 14.05.2018 – The Dash Embassy D-A-CH, the first offline representation of the crypto currency Dash for the region Germany, Austria and Switzerland, is carrying out an official teaching and educational mission for the Dash network. As a physically accessible contact point, it conveys knowledge on the subject of crypto currencies in general and dash in particular. In addition to the history and functioning of crypto currencies, the possibilities of blockchain technology and an understanding of the monetary system and monetary policy, the focus is also on the legal framework for crypto currencies. This is not reliably defined at either country or EU level. For end consumers and companies who want to use crypto currencies, the question of legal acquisition and correct taxation therefore arises at an early stage.

More legal certainty for crypto currencies
Together with qualified partners, the Dash Embassy D-A-CH is committed to providing information and assistance to all interested parties in this area as well. Nationwide, free courses in Germany, Austria and Switzerland, which deal, among other things, with the corresponding legal and tax issues, will be launched this year.

For the Austrian market, the renowned Viennese law firm Wolf Theiss will handle the legal issues. The law firm is represented internationally with 13 offices in Central, Eastern and Southeastern Europe and specialises in banking and financial law as well as tax law. A team of experts deals specifically with crypto issues and will contribute their know-how to the Dash Embassy course programme in Austria.

“We still see a great need for knowledge transfer in the field of crypto currencies. Wolf Theiss is in charge of digitisation and new technologies. We are therefore particularly pleased to support the Dash Embassy D-A-CH in this project,

explains Carina Wolf, Senior Associate Wolf Theiss.

Winheller mediates legal framework conditions
In Germany, the well-known Frankfurt law firm WINHELLER is responsible for mediating the legal framework in the course of the Dash Embassy events. WINHELLER is one of the leading German law firms in the field of cryptographic currencies and block chains and has specialised in tax issues as well as regulatory issues. With this proven expertise, the team will in future design tax law content for the Dash Embassy courses in Germany.

“Many taxpayers are not aware that undeclared profits quickly lead to tax evasion. We want to raise awareness of this – also with the help of our new partnership”,

explains Managing Director Stefan Winheller.

In addition to the legal experts from Wolf Theiss and WINHELLER, Dash Embassy D-A-CH also cooperates with CryptoTax. The tax software provider has specialized in crypto currencies and offers a KPMG-certified solution for tax assessment and declaration for private and commercial crypto currency users.

“As a crypto currency, Dash has the potential to offer a real alternative to cash payments at the point of sale. The prerequisites for this are mass suitability and acceptance, which we want to promote through direct dialogue with interested users and a comprehensive range of information with the Dash Embassy D-A-CH. […] We are very pleased to have found strong partners with WINHELLER, Wolf Theiss and CryptoTax who are working with us to give potential users of Dash and other crypto currencies more legal security,