US Officials to get Blockchain Advice from US Treasury

The Treasury Dept. of the USA published a blog for the governmental structures interested in blockchain
26 March 2018   490

The message that was drafted by the Treasury’s Bureau of the Fiscal Service (BFS), contains several lessons that the authorities collected while experimenting with a an evidence of concept blockchain system.

The BFS recommended the officials to overcome the hype spreading around blockchain technology and impartially envisage whether a distributed ledger add value to their operations. According to the bureau, the systems of this kind are most rewarding for departments where central gatekeeping is costly (especially when stuff verify transactions) and there is less common trust between the various parties in the ecosystem.

The US Treasury also pointed out that the governmental services are better state their projects with non-technical people and DLT sceptics to test the suggested system “through a gauntlet” in order to observe whether it is really useful. That can be determined by the following way: if a working team is consisted of pro-blockchain people only, they can be “blinded by the hype and force a square peg into a round hole”. So, setting blockchain technology through a gauntlet would help the officials to understand the usefulness of the method and to monitor if it reaches the other side. The blog also recommended developers to dedicate expansive time to inquire stakeholders rather than leaping straight into devising the system.  

The Treasure Blockchain program started in October and it was aimed to utilize DLT-based systems to track physical assets (smartphones or computers). Agency authorities appreciated the technology`s ability to decrease forgery and magnify efficiency.

The Treasury's financial crimes division has been directed to enforce President Trump's recent order preventing US citizens and residents from dealing with the “Petro” (a state-backed cryptocurrency issued by Venezuela). It was the first time when the president has officially ordered a government department to take action towards a blockchain-based technology.

Bakkt to be Launched in December

It is also reported that Goldman Sachs does not plan to create custodial cryptocurrency solutions based on the Bakkt infrastructure
19 October 2018   53

The expected launch of the Bakkt will take place on December 12 of this year. It is reported by The Block, citing informed sources.

Also, the material states that the investment bank Goldman Sachs does not plan to create custodial cryptocurrency solutions based on the Bakkt infrastructure. At the same time, the bank is considering the possibility of trading futures on a new platform.

In a recent Fortune interview with Bakkt, Kelly Lofler said that the cryptocurrency market is on the verge of a revolution comparable in size to the one that occurred on the energy market in the early 2000s.

Greater institutional participation in the digital asset markets requires secure and regulated custody solutions. We are impressed by BitGo’s product, unique services, and the management team. We view our investment in BitGo as an exciting opportunity to contribute to the evolution of this critical market infrastructure.
 

Rana Yared

Managing director, Goldman Sachs’ Principal Strategic Investments group

Bakkt is a cryptocurrency unit of the Intercontinental Exchange (ICE), which is the operator of the New York Stock Exchange. Giants such as Microsoft and Starbucks are taking part in creating of the new project, which is positioned as an “ecosystem for digital assets”.

The new platform will offer deliverable bitcoin futures to the market (unlike the settlement contracts for CBOE and CME, these are based on the underlying asset). The platform will support multiple fiat currencies.