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Etisalat Enters the Blockchain Fray as Company Partners with Smartworld to Launch Shahada

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Blockchain technology has played a pivotal role in several mainstream industries over the past couple of years even as the cryptocurrency market struggles to break into the mainstream realm. The underlying technology upon which currencies like Bitcoin have been built was being considered as a viable source for new developments.

The latest reports have revealed that the telecommunications giant Etisalat has partnered with Smartwolrd to bring Shahada’s digital certificate platform to the education sector. The move is set to utilize the organization’s blockchain technology to help governments entities and universities to digitally attest and certify certificates. 

The partnership is set to pave the way for credible information when it comes to the education sector as well as carrying the information forward to other industries. Shahada was launched this February by a collaboration between Smartworld and Grape Technology. The latter is a UAE-based blockchain startup with an aim to bring educational institutions, government entities, and external stakeholders together on a native blockchain platform.

This is not the first time that blockchain technology has been used to maintain standards in the education sector, as universities in the US have already done the same. Blockchain technology is most effective because of its transparency and its tamper-proof nature. Any changes made to the Ledger would be visible to everyone, an aspect that will be useful in verifying the legitimacy of university certificates.

Smartworld has stated that the platform will save time and resources by letting them focus on multiple aspects of the education sectors. The implementation of the technology will allow universities to securely issue credentials on the blockchain, thereby eliminating any chance of forgery. Shahada plays an important role in integrating education and blockchain technology because it is aligned with both the UAE Blockchain Strategy 2020 and the 50-Year Charter launched by UAE Prime Minister HH Sheikh Mohammed bin Rashid Al Maktoum. According to reports, the platform will also allow UAE ministries to play a part in verifying documents on the blockchain.

 

German Finance Minister Makes it Clear that Cryptocurrencies and Blockchain are Important for Economic Recovery

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The cryptocurrency market has come a long way since 2010 when Bitcoin first entered the mainstream financial ecosystem. Since then the world of virtual assets has made progress across multiple sectors while also garnering its fair share of critics and detractors.

Germany has taken the next step in cryptocurrency adoption with German Finance Minister Olaf Scholz assuring the country that crypto reforms and regulations will be sped up as soon as possible. The minister’s statements come at a time when the country was laying down plans to revive the dwindling economy. 

The COVID-19 resultant lockdowns have affected several medium and small scale businesses with many on the verge of shutting shop. According to Olaf Scholz, the German government was seriously considering the European Commission’s proposals to regulate cryptocurrencies as well as its foundation-blockchain technology. Mr. Scholz stated:

“These are important proposals to make Europe’s financial sector really strong. My goal is to move the discussions forward quickly. With the package we can promote innovations in the financial sector so that Europe sets standards worldwide. In order to get out of the crisis with full power, small and medium-sized companies in particular need good access to capital market financing.”

Germany will also be considering the EC plans to expand the pertinent bloc’sd capital markets. This is expected to act as a stimulus for the German economy and help millions of citizens stuck in limbo. Germany is currently the presiding member of the European bloc and will lead a discussion about the reform packages during an October 6 finance meetings meeting. The coronavirus pandemic has wiped out financial progress made over the past decades and governments were on the throes of major changes.

Countries in Europe were currently working together with other nations across the globe, who were also in the same boat. Germany was one of the few regions which recognized that uplifting every strata of society were imperative to overall economic growth. Cryptocurrencies and blockchain technology are set to play important roles in helping the economy, with faster and seamless transactions on the cards. Reports have shown that decentralized technologies were the way forward with traditional banks also going the same route.

Lockdowns Due to COVID-19 Seems to Have Lent Traction to Fintech Acceptance Movements; Changes Here to Stay

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The coronavirus pandemic has brought with it multiple changes that have permeated almost all major industries on the planet. One of the sectors where the effects of the pandemic have been felt is the financial world, which is in the midst of a complete transformation.

The latest studies have shown that as the pandemic has progressed, more and more people were delving into the world of financial applications. This was a marked change from the time when people preferred in-person meetings with their brick and mortar establishments.

Market experts have stated the pandemic has revealed the underlying expectations of users who are involved in making big money transfers. Since a majority of the people were stuck at homes because of government-mandated lockdowns, they were delving into mobile applications built by banks as well as non-banks. The non-banking sector has been heavily involved in the fintech area for some time now and their progress has beaten all market expectations.

One of the fintech firms that has benefitted massively from this pandemic was the San Fransisco based Plaid. The firm, which was recently acquired by Visa for a whopping $5.3 billion has been on a roll with many services using its digital architecture to carry out transactions on a large scale. Plaid’s chief executive Zach Perret went on an interview with CNN, where he stated:

“I think the pandemic has made it incredibly clear that digital financial services are here to stay. People are trying digital finance for the first time. It’s going from an attitude where people think, ‘I do my banking in person,’ or, ‘I do financial services in person,’ to an attitude of thinking, ‘I could use these digital services. Breaking that zero-to-one gap, that’s the biggest gap.”

Analysts have also agreed with Perrett’s sentiment, with many predicting a future where big banks will make use of fintech architecture to keep up with customer demands. New technologies like blockchain and smart contracts have opened up an entirely new avenue for speed and efficiency. Although the cryptocurrency market still has a major share of critics, more and more people were warming up to the idea of its foundation, blockchain technology. As major banks try to create their own version of the existing blockchain system, only time will tell if it becomes a complete mainstay.

Brazil’s Largest Mining Firm Carries Out First Sale Via Blockchain Tech

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The world seems to have finally realized the fruits of blockchain technology. After prominent companies and establishments steered towards the adoption of blockchain tech, countries followed suit. Several countries have been exploring ways to utilize the blockchain technology in various industries. Brazil’s largest mining company, Vale is the latest platform to hop on to the bandwagon.

Blockchain Tech Not Just For Crypto

While several platforms are still contemplating the incorporation of blockchain technology, Brazilian metals, and mining company, Vale has taken a huge leap by making a sale employing blockchain technology. The made the sale via blockchain to Nanjing Iron & Steel Group Internation Trade, a company based in China.

Touting this move as a milestone for the mining company, it revealed that the Letter of Credit was issued via the Contour blockchain platform. It further read,

“The Letter of Credit (LC) was issued through the Contour blockchain platform whilst the shipping documents and the electronic Bill of Lading have handled via essDOCS’ CargoDocs solution – with all actions carried out through a single, interfaced platform consolidated in Contour.”

Vale, one of the largest producers of iron ore in the world reportedly sold a cargo of 176000 tons of Brazilian blend fines [BRBF] to China from Malaysia‘s Teluk Rubiah Maritime Terminal. This transaction was overlooked by Standard Chartered Bank Malaysia Berhad as well as DBS Bank.

The platform added,

“It is an important milestone towards the digitalization of the sales and trade process, bringing innovation to the traditional paper-intensive trade transactions and offering a better service to the clients, as well as predictability in the steel value chain.”

Furthermore, the Brazilian mining firm revealed that hassles with paperwork and e-mails were radically minimized during the process.

Brazilian CBDC

While China is already approaching the release of its Central Bank Digital Currency [CBDC], Brazil has revealed that its CBDC is underway. Recently, the President of Brazil’s central bank, Banco Central affirmed that the bank would issue a CBDC by 2022. The bank pointed out that it was steering towards reviving the financial system of the country.

Speaking about the need for CBDC, the President of the Brazilian central bank, Roberto Campos Neto said,

“To have a digital currency, you need an instant payment system that is efficient and interoperable; an open system, where you can create competition; and a currency that has credibility, is convertible and international.”

Deputy Prime Minister of Japan Tips Blockchain Technology As A Possible Solution In Combating Rampant Covid-19 Pandemic

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Deputy Prime Minister of Japan Taro Aso has come forward and tipped Blockchain technology as a vital tool in global efforts to counter the raging COVID-19 pandemic. Aso, who also serves as the finance minister of the country, talked about this during the Blockchain Global Governance Conference held in Tokyo, the nation’s capital, on 24 Aug. 2020.

Aso, believes that Blockchain technology can precisely be effective during the process of contact tracing.In addition, he adds that the technology could ensure that the privacy of the user is maintained for anyone found to be COVID -19 positive after contact tracing.

Blockchain technology can provide containment measures directives

The outspoken politician also insists that Blockchain technology can help the relevant authorities to have access to the necessary measures that need to be taken to stem the outbreak of COVID-19 in the future. Nevertheless, Aso asserts that any rising differences that may occur between technology users and regulators need to be resolved first to ensure that this venture is effective.

He added that it is worth noting that certain users of Blockchain technology are very unfriendly to regulators. Many of them assume that regulators lack a clear understanding of the technology, and any innovations that may arise may be impeded. Aso also acknowledges the fact that the rate of Covid-19 infections will not subside soon, so a need for a realistic blockchain-based contact tracing solution might be considered as immediate emergency.

The technology adoption is fast gaining popularity across the globe

Many countries around the world are now working towards the integration of Blockchain technology. Nations such as Colombia, through the Ministry of Information Technology and Communications, are integrating their 10 sectors into technology. The Ministry believes that the country can benefit greatly from this action when fully integrated. Also in May 2020, the Colombian government joined various nations in signing favorable bills to the law in support of the adoption of Blockchain. They recently signed the ‘Blockchain bill of rights’which will set favorable conditions for the passage of the tech.
Finally, nations such as Estonia, the U.A.E, the U.S. and Canada have all made significant progress following the adoption of Blockchain technology.

Fantom, a South Korean blockchain firm’s smart medicine project in partnership with Afghan government.

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Fantom, a South Korean blockchain firm, has officially launched a smart medicine project in partnership with the Afghan government. It is an initiative that focuses on exploring the potential of distributed ledger technology to remove counterfeit drugs from the supply chain. According to reports, the counterfeit drug industry is booming with a high inflow of counterfeit drugs on the market and nearly one billion people are dying from counterfeit drugs.

The Afghan government initiated an investigation in the drug import industry in 2017 after discovering more than 100 tons of counterfeit that contributed to the suspension of licenses for most concerned traders.

Smart medicine the ultimate solution to counterfeit drug

The project is based on blockchain, which helps the authorities to find out where the drugs are and who has handled them at any time. It will also help reduce the incidence of counterfeit drugs and improve the safety of patient medical records. Under the terms of the program, Fantom will initially track 80,000 products across four different pharmaceutical companies.
In addition Factors such as lack of consumer awareness and ineffective checkpoints have hindered efforts to combat fake drugs. They are commonly mixed with legal drugs in the chain. The Korean firm has also now established a set of major players in the pharmaceutical world, along with Nabros Pharma and Royal Star.

The project aims to monitor and deliver drugs on the market, including creams, sanitizers and chewable pills. The Smart Medicine project will boost efforts to rid the market of illegitimate drugs. Under the blockchain system, each commodity will be subject to mandatory conditions like bar code number, batch number production, expiry date, and Fda approval number, etc. Indeed, companies like Pharma will now scan labels and produce time-stamped data to form a tamper-proof audit trail. In addition, firms can now confirm the data before it is released on the market.

Japan’s SBI Invests $30M in B2C2 Digital Assets Firm

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UK-based crypto market marker B2C2 announced earlier this week that it had received a substantial investment of $30 million from Japan-based financial conglomerate SBI. B2C2 plans to set up a fully automated premier brokerage with the most competitive two-way market prices later in July.

As reported, SBI already has a number of locations with blockchain technology and crypto assets and plans to further expand its influence in the industries. The Japan-based financial conglomerate wants to establish an international organization, and its latest $30 million investment will play a major role in this establishment.

SBI global expansion strategy

Furthermore, SBI is looking to extend its influence further with security token offerings (STO). Additionally, the firm plans to leverage its joint venture with R3 by launching blockchain solutions in the supply chain sector. According to B2C2 founder, Max Boonen:

“Today’s deal with SBI takes B2C2 a big step forward. Having claimed the top spot in our segment thanks to the technological edge of our single dealer platform, we found in SBI the right partner to unlock the next drivers of our growth.”

B2C2 is among the top and the oldest operational market in the digital assets sector. The company is famous for providing large investors with the opportunity to carry out multi-million dollar trades over-the-counter. Notably, the firm based in the United Kingdom will launch new automated financing services this month to enhance its current implementation services.

Prime brokerage in the digital assets space

SBI, Japan’s largest online stock trading company, will take a $30 million stake in B2C2, giving the firm access to its balance sheet. In orthodox finance, premier brokers are positioning themselves between institutional investors and the market, providing a variety of services, such as custody, consulting, and execution.

Market experts suggested that the entry of prime brokerage services into the cryptocurrency area could attract institutional investors from the sidelines. In reality, prime brokerage solutions make investment and trading experience more stable and capital efficient.

 

Blockchain Australia Strengthens Industry Confidence with the Appointment New CEO

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Blockchain Australia hired a new head, in an effort to boost blockchain adoption and awareness in the country. The new CEO, Steve Vallas, stated that he would emphasize on enhancing trust and strengthening the image of blockchain among business enterprises and government bodies.

Notably, Vallas replaces the former head Nick Giurietto who ran the association for up to five years. Moreover is the founder of the Australian marketing firm and also worked as an industry coach and a mentor for several higher education institutions and accelerator programs. Besides, he also offered counsel to the Australian government on blockchain technology.

New insights for Blockchain Australia

According to reports, Vallas stated that he will focus on boosting the confidence of crucial economy stakeholders on blockchain technology, by helping them understand it as a robust and well-built solution. In his explanation, Vallas said that the majority of people know blockchain as the technology underpinning digital currencies, but are not aware or understand how it could be applied to other areas, like supply chain, legal, retail businesses. 

According to the new CEO, many industries have been heavily hit by the COVID-19 crisis, but the blockchain sector should make most of the pandemic. As per him, many areas have primarily been hit because they rely on human beings, unlike blockchain, which is not controlled by anybody. The supply chain is one of the majorly upset sectors, and industries are now willing to explore unconventional methods.

Australian National Blockchain Roadmap

Early into the year, the Ministry of Industry, Science, Energy, and Resources in Australia composed a new national approach picking up the possible value produced through business-related blockchain relationships in a National Blockchain Roadmap.

Furthermore, Vallas will be tasked with working on the road map now that he is the head of Blockchain Australia. He will be speaking to industry leaders, government agencies, and other pertinent parties to unite all the relevant bodies for the task. He believes the roadmap is essential, and most people see it as a bright exhibition that the government is ready to work with blockchain leaders to create a viable plan.

BHP Group Completes First Blockchain-based Iron Ore Trade with China’s Baosteel

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According to a report by Reuters on 29 June, the BHP Group completed its first blockchain-based iron ore trade with China Baoshan Iron & Steel Co Ltd in a deal worth around $14 million. The transaction was carried out through a blockchain platform created by a Canadian-based technology company called MineHub.

Per the two separate statements by both MineHub and BHP Group, using blockchain technology, the spine that structures digital currencies like BTC and ETH would strengthen efficiency and transparency. However, the statements did not indicate whether the BHP Group had used blockchain technology in the past.

Blockchain-based iron ore trade scales down paperwork

The trade in iron ore involved a transaction linked to iron ore, a commodity that the firm regularly trades.  The MineHub blockchain platform was used to digitally process trading terms, exchange documents, and provide updates on real-time cargo transport.

Notably, the use of blockchain technology by BHP Group is part of the firm’s plan to digitize its commodities trading sector. According to BHP Group’s sales and marketing officer Michiel Hovers, blockchain technology will help scale down the burden of manual paper documentation processing.

Blockchain technology to enhance efficiency

In the past couple of years, commodities firms have been seeking blockchain solutions to save money. The commodities sector is known for its over-reliance on paperwork and large-scale documentation, which brings up other complications. According to Hovers:

“The bulk commodity industry needs a digital revolution to reduce physical documentation processes.” 

The blockchain-based iron ore trade was the first of a string of transactions on the MinerHub Technologies Platform; involving outside partners. According to MinerHub Technologies chief executive Arnoud Star Busmann:

“Current pandemic events and fraud cases in the commodity trading industry are causing a step-change; in the adoption of digital solutions.”

Furthermore, the Canadian blockchain firm outlined that it was creating a blockchain-based system; for base metal concentrates, structured finance, and emissions tracking.

Crypto’s Relationship with KYC: How are Companies like BeFaster Transforming the Future Landscape?

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The cryptocurrency industry is no stranger to controversies surrounding it in terms of privacy and security. Multiple reports have claimed that the number of scams and frauds in the digital asset sector has only increased over the year with projections looking at higher numbers.

To put a stop to these issues, many cryptocurrency organizations and companies brought in the concept of Know Your Customer [KYC]. The idea of KYC was first popularized in the mainstream banking culture where customers were held accountable for their accounts and their actions in the financial ecosystem. This was also a way to ensure that institutions were not dealing with bad actors who used legitimate channels to funnel dirty money.

It is interesting to see how far the cryptocurrency industry has come from its initial days of being the wild wild west of the financial world. When Bitcoin was first introduced to the public eye in 2009, very few people were involved in trading it. As the number of investors and traders increased, the regulatory system could not keep up with. This led to large scale scams that resulted in people losing millions of dollars worth of their holdings. 

As the industry progressed over the years, regulatory authorities like the US Securities and Exchange Commission [SEC] and CFTC made it a point to keep a close tab on it. At the same time, crypto companies also understood that if they needed to be accepted into the mainstream fold, they had to take certain steps to ensure customer and capital safety. Since 2013, a majority of the companies in the cryptoverse such as Coinbase and Binance have integrated KYC and AML into their workings. 

AML or Anti Money Laundering is a way to keep track of funds within a cryptocurrency system and its buy and sell points. Bodies such as the SEC have repeatedly pointed out that the main reason why cryptocurrencies are not considered as a legal tender is because of their decentralized nature. Some of the common steps in a KYC process are:

  • Verifying customer identity- Customers are usually asked to upload a document that is valid and not expired with a photo that is included. 
  • International customers are asked to provide another layer of confirmation because of a company’s lack of physical reach across borders.
  • Over the years, crypto companies have made it easy for customers to provide documents thereby allowing trades to take places at a seamless rate.

The side effects of large scale KYC implementation

Although KYC is seen as a step in the right direction when it comes to privacy and customer protection, many have called it a blatant violation of credential safety. Many crypto traders have admitted that the anonymous nature of the industry was one of its main attractions. Taking that away made just like any other financial system where user information was privy to the government.

This issue reached a head when rumors began circulating that Coinbase was planning to sell its blockchain analytics software to the US government. The uproar was not just verbal as customers withdrew almost $200 million worth of Bitcoin in an instant. The news was also a good starting point for several other exchanges that did not ask for any KYC details.

The future of KYC

It is pretty safe to assume that the concept of KYC is not going anywhere if the cryptocurrency sector wants to go mainstream and achieve global adoption. Companies will have to comply with certain regulations set by governments and regulatory authorities but that does not mean that they have to forgo the core fundamentals of the virtual asset world. 

Blockchain-based fitness application BeFaster.fit is an example of an organization that has adopted KYC while retaining its core values. BeFaster investors are required to submit details that are checked and stored by third parties contracted by BeFaster.fit and which are not disclosed to any external party.

It is imperative that more companies adopt this routine so that there is a proper check-in the ecosystem they are creating. At the moment, the onus is on both companies and users to protect the ecosystem before naysayers wipe it out with their criticism.  A project or start-up that does not offer the KYC process on its own or through an external service provider is definitely not a safe haven for investors.

In today’s world, one can deduce that projects without KYC often have no honest intentions. Of course, a KYC procedure is associated with a certain amount of effort for many investors. But it protects the investor from scam projects and a possible total loss. A company without KYC may receive a regulatory ban and have to cease operations. 

A project or start-up that does not offer the KYC process on its own or through an external service provider is definitely not a safe haven for investors. In today’s world, one can deduce that projects without KYC often have no honest intentions. Of course, a KYC procedure is associated with a certain amount of effort for many investors. But it protects the investor from scam projects and a possible total loss. 

A company without KYC may receive a regulatory ban and have to cease operations. Here, the responsible authorities are taking more and more frequent and binding action to provide the greatest possible security for the entire financial-economic structure. In summary, it can be said that companies and projects with KYC procedures are more likely to meet the regulatory requirements and licenses. A strong foundation steeped in fund protection is the way to go for future mass adoption.

Here, the responsible authorities are taking more and more frequent and binding action to provide the greatest possible security for the entire financial-economic structure. In summary, it can be said that companies and projects with KYC procedures are more likely to meet the regulatory requirements and licenses. A strong foundation steeped in fund protection is the way to go for future mass adoption.