Banks Don't Implement DLT Due to Legal Issues, - Report

Despite legal issues and extremely high volatility of crupto, banks and other big players continue to experiment with blockchain-based solution
10 June 2019   1721

The report of the consulting firm McKinsey & Company states that a huge number of financial institutions are extremely cautious about the blockchain, despite the significant potential of this technology for the financial sector. BTC Manager reports about it.

According to experts, legal uncertainty is a significant obstacle for the implementation of distributed ledger technology in various bank processes. In addition, financial institutions are wary of extremely high volatility of Bitcoin and Altcoins, which are based on the blockchain technology.

Nevertheless, governments, investment banks and infrastructure solution providers continue to experiment with blockchain-based solutions, seeking to reduce various costs, improve process transparency and financial performance.

For instance, investment banks envisage a world where transaction execution, post-trade processing, and settlement are instantaneous, cutting-off numerous middle-and back-office processes. They are also focused on the potential for smart contracts to increase automation.

McKinsey's Report

Report says various financial regulators, including the US SEC and the British FCA, have not yet developed acceptable rules for the cryptoindustry. Nevertheless, despite regulatory uncertainty, large companies continue to invest heavily in this area.

Huobi to Launch Argentinian Branch

Argentina is undergoing the financial crisis right now and head of the new branch believes there's a consensus been reached on the rejection of local currency
18 September 2019   49

Huobi Group has continued to expand its network of local cryptocurrency exchanges based on the Huobi Cloud platform, launching a trading platform in Argentina.

Huobi Argentina plans to create a local team and fiat gateway to trade or convert Argentine pesos into cryptocurrencies, the company said in a statement.

The payment channel will be launched by mid-October. It is assumed that users of Huobi Argentina will be able to make deposits using bank cards, transfers and through the most common digital payment systems in the region. Currently, you can purchase cryptocurrencies for pesos through the Huobi OTC service.

The opening of the Huobi cryptocurrency exchange in Argentina came at a time when the economy of this second largest country in Latin America was in a deep crisis. This year alone, inflation reached 55%, and President Mauricio Macri recently introduced new restrictions on access to foreign currencies.

According to Carlos Banfi, head of Huobi Argentina, a consensus has already been reached in Argentina on the rejection of local currency and banking services.

The increasing demand for crypto-related products and services makes Argentina a perfect entry point for Huobi to pursue larger projects in promoting cryptocurrency and blockchain to the market. With the launch of Huobi Argentina, we will be able to first offer local user the opportunity to trade with Huobi’s proven security, liquidity, and stability.

David Chen
Senior Business Director, Huobi Cloud

Earlier, the Huobi Group announced plans to expand its operations in emerging markets and open 150 sites under the Huobi Cloud program. Since the launch of Huobi Cloud in 2018, more than 120 trading platforms have been created on its basis, including in Thailand, Turkey, Indonesia and Russia.