November 24, 2017
JP Morgan is getting into Bitcoin Futures trading, Despite Jamie Dimon’s statement about Bitcoin’s fraud
BY Eugenia Kovaliova - November 22, 2017 (www.coinspeaker.com)
JP Morgan, one of the largest banking institutions in the United States, is looking at allowing its clients to trade bitcoin futures, while its Chief Executive James Dimon stays negative to Bitcoin believing it’s a fraud.
According to the latest Wall Street Journal report, JP Morgan Chase & Co., a leading global financial services firm operating worldwide and the US largest banking institution, is considering whether to provide its clients access to CME’s new bitcoin product through its futures-brokerage unit. The final decision depends on JPMorgan’s customers’ demand.
The news can seem a bit contradictory if we remember JP Morgan’s Chief Executive James Dimon, stating that Bitcoin is a fraud, which became the most outspoken critic of Bitcoin on Wall Street. Moreover, on multiple occasions Dimon hinted that he believes digital currency is a bubble that will crash. On a conference last month he said: “If you’re stupid enough to buy it, you’ll pay the price for it one day.”
Dimon also said he would fire anyone caught investing in Bitcoin and seemed to be ready to fulfill the promise. His finance chief, Marianne Lake, has struck a more measured tone. Last month she said that the firm was open minded to the potential uses for digital currencies so long as they are properly regulated.
Surprisingly, that despite Dimon’s negative attitude to cryptocurrency, JPMorgan would be moving forward with plans to allow clients to trade in it through the bank.
The introduction of Bitcoin Futures Contract by the CME group, which is planned to be launched by the end of the year, was followed by Bitcoin’s new all-time high of $8336. The upswing was recorded on Monday, November 20. And the rate doesn’t seem to stop rising. According to the predictions of legendary hedge fund manager and a billionaire trader Michael Novogratz, Bitcoin can touch $10,000 by the end of this year.
Apart from CME Group, a few more Wall Street financial institutions have turned optimistic about Bitcoin’s future. One of such examples is LedgerX, a federally regulated exchange and clearinghouse, which has initiated the first-ever long-term Bitcoin futures ‘option’ pegged at a price of $10,000.
Bank of America Merrill Lynch has recently stated that bitcoin futures could help dampen the coin’s volatility:
“We would not overstate this, as a material reduction in volatility would require there to be a large community of speculators prepared to provide liquidity to the natural owners of the various coins, but given the volatility of the coin markets, maybe there already exists a cadre of participants who would look to short coins on strong days and vice versa, which could overall reduce volatility.”
Still, some experts continue to doubt that bitcoin futures would be positive for the markets, holding on to the point that such a product could ultimately destabilize the real economy.
October 24, 2017
By Lisa Froelings - October 24, 2017 (cointelegraph.com)
American Express Travel Related Services Co., Inc., the travel and merchant unit of financial services firm American Express (Amex), has filed a patent for a personalized customer reward system using Blockchain technology. Under the system the company will offer customer-specific types of rewards that include points, a digital currency, or specific items linked to a product.
Based on the patent application published by the US Patent and Trademark Office (USPTO) in mid-October 2017, Amex will provide rewards by collecting personalized data about its customers, including their historic spending patterns. The company will use the technology as a resource for storing and updating information.
Part of the application reads:
"The Blockchain structure may include a distributed database that maintains a growing list of data records. The Blockchain may provide enhanced security because each block may hold individual transactions and the results of any Blockchain executables. Each block may contain a timestamp and a link to a previous block."
Amex’s projects on Blockchain technology
In its bid to effectively compete against its competitors, credit card provider Amex has also advanced projects to develop applications based on Blockchain just like its competitors. The company has also joined the Hyperledger Blockchain consortium in January to facilitate its works on the technology. The consortium is led by the Linux Foundation.
According to Amex chief information officer (CIO) Marc Gordon, they joined the consortium at the time to fully exploit what Blockchain has to offer for their customers and partners, as well as in transforming their own business processes and applications.
"We're excited to join Hyperledger, as we're looking to take full advantage of Blockchain to deliver new and innovative products for our customers and partners, while transforming existing business processes and applications.”
October 21, 2017
By Lisa Froelings - October 21, 2017 (cointelegraph.com)
Bank of America has filed a pair of patents for a Blockchain-based system aimed to improve the tracking of file transfer processing in real time. Under the system, a Blockchain can be integrated with communications and memory devices to facilitate the data processing process.
Based on the patent applications as of mid-October 2017, the bank proposes the use of a Blockchain to facilitate the transferring of large volumes of data while simultaneously tracking the data through the use of cryptographic keys during the transfer process.
The system will be able to handle two types of data processing, namely, the actual data transfer itself, and the log of the cryptographic keys identifying each data packet and its present processing stage.
Part of the patent applications read:
"The present invention is directed to providing a novel technical solution that reduces transactional and informational complexities and transforms the processing of electronic files and management of data contained within such files."
Bank of America’s research efforts on Blockchain
The latest applications are part of the major American bank’s effort to establish a portfolio of protected applications of Blockchain technology. The bank has already filed over 20 patents related to the technology or digital currencies since 2014 as of August.
Among the patents filed are three patents based on the use of distributed ledgers to authenticate the veracity of information and the parties who handle it and two patents based on a peer-to-peer (P2P) payment system that is powered by a Blockchain. The mega-bank has also filed a batch of patents covering almost the entire cryptocurrency exchange and payment process including transaction validation, risk detection, real-time conversion, as well as online and offline storage.