Blockchain
Why must banks change their infrastructure as cash becomes digitized?
In the key scene in the movie The Matrix, Neo realizes that he must choose between the red and the blue pill. Central Banks also have a fundamental choice of how to digitize cash. – Cash can either be digitized as a new currency, using existing payment rails, or as a new format, requiring large investments in the banking sector, says Joachim Samuelsson, CEO Crunchfish.
Crunchfish CEO Joachim Samuelsson shows that the World’s Central Banks are facing a decisive choice that will have an enormous impact on the bank infrastructure in their countries.
Money is available in four formats – two physical and two digital. Central Banks issue physical money in the form of coins and banknotes. Digital money exists on bank accounts and constitutes a claim on the bank rather than on the Central Bank. Cryptocurrency is a new digital format, not guaranteed by Central or commercial banks. Instead, authenticity is proven by a blockchain of transactions. One of the key reasons why Central Banks want to digitize cash is the threat that international cryptocurrencies could undermine a country’s currency and its opportunities to dictate monetary policy.
– Digital cash is neither digital money nor a cryptocurrency. The goal is to obtain the unique properties of physical cash as a means of payment in digital form. Such payment methods must work offline and be able to be accepted as payment immediately and completely independent of network connectivity. The privacy of payments must still be ensured within reasonable limits. Just because payments are digital does not mean that the bank needs to see every transaction made. Digital cash must also be extremely flexible, scalable and interoperable with current payment solutions. Crunchfish has developed a solution that meets all these criteria, Joachim Samuelsson proudly states.
Crunchfish Digital Cash Wallet xoxo.cash
Crunchfish complements the World’s payment services with its Digital Cash Wallet xoxo.cash, whether on mobile or payment card. It processes an offline balance that is reflected in a corresponding and blocked Digital Cash account online.
-As the payment is carried out, a digitally signed payment is created and verified offline by the specified recipient. Crunchfish Digital Cash payments can be compared to paying by credit card; the difference is that the debited account is blocked to guarantee that there is no overdraft when the offline payment is settled, Joachim Samuelsson explains.
The primary purpose of digital cash is not to keep but to replace the unique properties of physical cash as a means of payment. Crunchfish’s patent-pending Digital Cash Wallet solves this by processing payments in two steps. First offline clearing upon payment and then settlement when the money is moved between accounts.
New currency or new format?
The World’s Central Banks have a choice to make. They can choose to issue their digital cash as a new currency, to be handled on existing payment systems, or as a new format requiring bank infrastructures to be upgraded to handle the new format. However, according to a staff memo from the Central Bank of Sweden, a new format will not solve the issue of offline payments. At the same time, VISA explains that offline payments can be offered by using two-step payments. Regardless of what the Central Banks decide, Crunchfish’s Digital Cash solution will be needed.
Crunchfish’s entry with Sweden’s dominant real-time payment service Swish in the National Telecom Agency innovation contest shows that it is possible to implement offline payments on account-based rails. The Crunchfish Digital Cash Wallet can then also handle the Central Banks’ digital cash, as there is no technical difference in whether the digital cash is guaranteed by the Central Banks or commercial banks.
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Blockchain
Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin)
Blockchain technology continues to drive innovation across industries, reshaping finance, infrastructure, and philanthropy. Today’s news roundup explores exciting developments in blockchain ETFs, tokenization funding, quantum-resistant chips, public blockchain initiatives, and impactful social projects. Here’s a deep dive into the latest blockchain headlines:
BlackRock ETF Embraces Blockchain with First Muni Bond Purchase
BlackRock’s blockchain-focused ETF has made its first foray into municipal bonds, signaling increased confidence in integrating blockchain technology with traditional finance. The ETF’s strategic investment demonstrates how blockchain can enhance transparency and efficiency in bond markets.
By tokenizing municipal bonds, BlackRock aims to simplify trading and settlement processes while reducing associated costs. This development underscores the growing role of blockchain in transforming financial instruments and fostering greater market accessibility.
Source: Yahoo Finance
Plume Secures Funding for Tokenization Platform
Blockchain fintech company Plume has raised significant funding to advance its tokenization platform. The company’s innovative approach enables businesses to convert real-world assets into digital tokens, streamlining asset management and unlocking liquidity.
Tokenization is rapidly gaining traction as a game-changer in sectors such as real estate, art, and commodities. Plume’s success reflects a broader trend of investment in blockchain solutions that bridge the gap between traditional assets and decentralized technologies.
Source: Fortune
SEALSQ and Hedera Partner for Quantum-Resistant Blockchain Chips
SEALSQ and Hedera have announced a groundbreaking collaboration to develop quantum-resistant chips designed to secure blockchain infrastructure. These advanced chips will provide robust protection against future quantum computing threats, ensuring the integrity of blockchain networks.
As quantum computing capabilities evolve, safeguarding blockchain ecosystems becomes increasingly critical. This partnership highlights the importance of proactive measures in maintaining the resilience and trustworthiness of decentralized systems.
Source: The Quantum Insider
Deutsche Bank’s Public, Permissioned Blockchain Initiative
Deutsche Bank’s Layer 2 blockchain solution is set to go public and operate as a permissioned network, according to its tech partner. This initiative aims to strike a balance between accessibility and security, leveraging blockchain to streamline financial services and enhance operational efficiency.
The decision to adopt a public, permissioned model reflects a growing trend among enterprises seeking to harness the benefits of decentralization while maintaining control over sensitive data. Deutsche Bank’s approach could serve as a blueprint for other financial institutions exploring blockchain adoption.
Source: CoinDesk
KuCoin’s “Light Up Africa” Initiative Brings Hope to Thousands
Cryptocurrency exchange KuCoin has made a significant impact through its “Light Up Africa” donation ceremony in Ghana, benefiting 36,000 children across the continent. The initiative combines blockchain technology with philanthropy to address energy poverty and support education.
By leveraging blockchain for transparency in charitable contributions, KuCoin sets an example of how the crypto industry can drive meaningful social change. The project demonstrates the potential of blockchain to empower communities and foster sustainable development.
Source: PR Newswire
Industry Implications and Key Takeaways
Today’s developments highlight the transformative potential of blockchain across multiple domains:
- Integration with Traditional Finance: BlackRock’s ETF underscores the synergy between blockchain and established financial systems.
- Tokenization Trends: Plume’s funding success reflects the growing demand for digital asset solutions.
- Quantum-Resistant Technologies: SEALSQ and Hedera’s partnership addresses emerging cybersecurity challenges.
- Enterprise Blockchain Adoption: Deutsche Bank’s public, permissioned network showcases the adaptability of blockchain in financial services.
- Social Impact: KuCoin’s philanthropic efforts illustrate blockchain’s capacity to drive positive societal outcomes.
The post Blocks & Headlines: Today in Blockchain (BlackRock, Plume, SEALSQ, Hedera, Deutsche Bank, KuCoin) appeared first on News, Events, Advertising Options.
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