Blockchain promises cost cuts, but what about revenue
Banks could potentially use blockchain to cut costs, but it’s unclear whether or not blockchain could be a source of revenue for banks as Tanaya Macheel points out in American Banker. Yes, cutting costs is a plus, but banks are also looking to see if blockchain can be used to gain a competitive edge that’ll offer a higher payout.
Bitcoin price soars, fueled by speculation and global currency turmoil
In dollar terms, a Bitcoin was traded for approximately $1,025 on Tuesday, or around 140 percent more than what it cost at the beginning of 2016. The political shift toward isolationism has come forth in the U.S. and Europe has given bitcoin an edge as a currency that can be exchanged almost seamlessly around the world, according to Nathaniel Popper of The New York Times. According to Ana Swanson’s article for The Washington Post, analysts predict that economic uncertainty could push the currency’s value even higher next year, perhaps even surpassing its all-time high price of $1,216 reached in 2013.
2017: The year regulators engage with blockchain
Though blockchain has largely operated under the radar of regulators, that changed in 2016, writes Chuck Thompson for CoinDesk. The Securities and Exchange Commission and the Commodity Futures Trading Commission and Department of Health and Human Services have all begun paying attention to blockchain’s potential applications in finance and healthcare.
Illinois considers regulation for digital currencies likely to be treated as speculative assets
Illinois is accepting comments from the public about blockchain in order to put together regulatory treatment of digital currencies like Litecoin, Bitcoin and Ethereum under the existing Transmitters of Money Act. “As innovative payment technologies grow in popularity, it is vital that we provide a succinct regulatory framework that gives businesses operating in this space necessary clarity,” says Illinois Department of Financial and Professional Regulation Secretary Bryan Schneider.