Italian Bank is exploring Ethereum Derivatives

Banca IMI, a subsidiary of international banking giant Intesa Sanpaolo shows interest in Ethereum derivatives
22 November 2017   409

A subsidiary of international banking giant Intesa Sanpaolo is interested in Ethereum derivatives. This is reported by the Coindesk.

In a new white paper released 22.11.2017, Banca IMI describes how an ethereum smart contract built by Intesa Innovation, Banca IMI and blockchain startup Oraclize makes it impossible for any counterparty to default by anticipating eventualities that might otherwise result from a legal dispute.

Massimo Morini, the bank's head of interest and author of whitepaper the paper represents a continuation of work he's been conducting at Banca IMI for two years. However, it also hints at what sets the bank apart in its approach to the blockchain sector.

We tried to design a business model exploiting the technology such that from a financial point of view it works on the public blockchain, because the guarantees are so much stronger than those we have with standard technology.

Massimo Morini,

Head of interest, Banca IMI

In the proof-of-concept (POC) detailed in the whitepaper, a smart contract was built using an ethereum testnet that communicated contract details to an external computation engine located in the cloud.

Instead of risking delays and relying on courts to resolve possible disputes, Morini said the team's derivatives workflow builds the terms of resolution into the smart contract itself.

In the end, it's enough that the smart contract keeps a little amount of funds to be used in case one stops paying, to guarantee that even if one stops paying, in a few hours, you are out of the contract and you have lost no money. This is really a different business model from what we are used to seeing in standard financial markets, but financially, it works.

Massimo Morini,

Head of interest, Banca IMI

Yet, even as one U.K financial regulator has warned against investing in derivatives that are cryptocurrency based, Morini remains convinced his work is headed towards a derivatives market that leverages the best of the old and the new. 

UN's World Food Programme Can Use ETH Blockchain

Ethereum blockchain can help to fight world hunger
20 February 2018   83

The head of the World Food Program (WFP) Robert Opp said that his department is developing a financial infrastructure for more efficient use of distributed ledger technology. With the help of the Ethereum blockchain, the organization has already saved millions of dollars on bank commissions. 

We felt we could replace the services offered by banks with blockchain. Blockchain helps promote collaboration by providing enormous amounts of data. We’re putting in place a financial infrastructure.

Robert Opp

Director, UN WFP

 It is worth noting that WFP didn't talk about specific plans for the further implementation of Ethereum technology.

Earlier, the UN launched a pilot program Building Blocks to assist refugees in Jordan. As part of the program, cryptographically unique coupons representing a certain number of local dinars were distributed among several dozen stores in five refugee camps.