40% Companies of UK's Sandbox to Use Blockchain

Companies use distributed ledger technology for different goal, from debts to API
04 July 2018   851

The Office of Financial Conduct Authority (FCA) of Great Britain published a list of 29 companies that will become participants of the fourth group in the "sandbox" of the regulator. 40% of these companies use distributed registry technology, Cointelegraph reports.

FCA Sandbox is an initiative that helps companies test their products and services on a "live" market. At the same time, the regulator assumes the protection of consumers and, at the same time, does not limit the company. "Sandbox" was part of the initiative called "Innovate", which was launched in 2014. Since then, applications for participation in Innovate have been submitted by more than 1,200 companies, and about 500 have received support.

For the fourth round of participation in the "sandbox" 69 applications were submitted, of which 29 companies were selected. Interestingly, more than 40% of them use distributed ledger technology in their activities, with six companies using it to automate the issuance of debt or capital. In addition, two companies use a distributed registry to calculate insurance, and the rest - for geolocation, API or artificial intelligence.

The regulator also noted that a "small number" of firms approved for participation in the "sandbox" have a relationship to "cryptoassets". Companies, taking into account the risks, should assess how their solutions are suitable for customers.

Cohort Four has seen a large increase in the number of firms testing wholesale propositions including firms that are aiming to increase the efficiency of the capital-raising process. Alongside these we can see significant use of [DLT], some experimentation with cryptoassets which will help inform our policy work and propositions aimed at helping lower income consumers.

Christopher Woolard

Executive Director of the Strategy and Competition Department, FCA

In March this year FCA, after the success of the British "sandbox", launched a similar initiative for the global market. Woolard then stressed that the regulator sees the need for a global sandbox for those companies that "grow at real scale and pace." He noted that 90% of companies from the first group of the sandbox participants entered the real market.

US Federal Reserve to Consider Digital USD Issue

If a some country or company issues digital money that is widely recognized, this could lead to the loss its status by the USD, fed official believes
17 October 2019   66

The US Federal Reserve is actively considering the possibility of issuing digital currency, fearing the dollar will lose its leading position in the global financial system. This was stated by President of the Federal Reserve Bank of Dallas Rob Kaplan, reports CoinDesk.

In his opinion, if a foreign government or company issues digital money that is widely recognized, this could lead to the loss of the status of the world's reserve currency by the dollar.

On the eve of the previous chairman of the Commodity Futures Trading Commission (CFTC), Christopher Giancarlo also expressed concern that the re-issuance by other countries of national currencies in digital form could lead to the dollar losing its dominant role in the world. He called for the release of a digital dollar on the blockchain.

Bank of England Governor Mark Carney said earlier that a digital currency like Facebook’s Libra can replace the dollar as a global reserve currency.

The emergence of an attractive and viable alternative to the dollar will reduce demand for US government securities, Kaplan said. This will lead to an increase in interest rates by 100 basis points (1%), which will increase the cost of servicing public debt by $ 200 billion per year.

I still think for the foreseeable future, the dollar will be the world reserve currency, we’re able to refinance our debt at relatively low rates, but I don’t think we should take that for granted.

Rob Kaplan

President, Federal Reserve Bank of Dallas

Kaplan noted that countries subjected to sanctions or increased trade tariffs by the United States are working most actively on the digital alternative to the dollar.