Bitcoin technology arepermeating Wall Street commercial agency
A number of prominent financial and high-tech companies began to intervene in the field of bitcoin, the signs that the innovation of institutions in the United States is exploring the use of commercial digital currency. The interest is the most obvious than Wall Street, more precise statement should be, after the leading center of the international financial companies can save the cost of this technology in Internet contact on the bank, which has had an impact on other industries. They choose in its early stages of development, the technology behind bitcoin blockchain betting, it maybe one day on the banks, enterprises, and even smart appliances capital circulation, have a significant impact on sensitive data and worldwide.
Compared to the previous generation technology, the cost of processing a data has dropped 10000 times, “the former US Treasury Secretary Lawrence Summers said. “Bitcoin in the financial system has brought benefits for buyers and sellers, rather than middlemen and financiers.”
But the majority of ordinary consumers for the unconfirmed, digital currency is only 6 years old, still maintained a cautious attitude, in their eyes, the digital currency often with illegal drugs, extreme price volatility and risk together. But now people are talking about, is bitcoin more potential as a low-key “background” media, rather than the mainstream media reported the money for purchase groceries.
The idea is to block chain ledger, which is verified by the independent computer network to the center, updating and maintenance, this is to allow individuals and enterprises in the equation, the first time in human history (peer-to-peer) network transactions and information assets. Will the middlemen removed, in theory, this technique can significantly cut costs, reduce the settling time, reduce the risk of default.
“It will be simplified for the Wall Street, those very old operating system the opportunity,” Duncan Niederauer (Duncan Niederauer), former CEO of Euronext New York said last week, he became a compliance bitcoin derivative trading platform TeraExchange consultant.
However, there are still a lot of digital currency important problems to be overcome, in addition to security, crime and worries about price volatility, whether the bitcoin network amplification in the eyes of many people is still a concern. The average volume of the bitcoin network, about $50 million, and the global foreign exchange market trading 5 trillion compared to the scale of not worth mentioning.
In addition, the United States, Britain and other countries of the regulators are formulating relevant rules, so that enterprises in the hope to explore the possibilities of digital currency technology innovation at the same time, and can protect the consumers. This compared with a year ago, has undergone tremendous changes, bitcoin is the majority of people regarded as computer geeks and anti government monetary liberals radical idea at the time.
January this year, the New York stock exchange, USAA bank, the Spanish banking giant SABBVA, former Citigroup CEO Vikram Pandita (Vikram Pandit) for $75 million in shares heavily bitcoin startups Coinbase.
Last week, the NASDAQ OMX Group signed an agreement to provide technical support for the New York bitcoin trading platform Noble Markets, the NASDAQ technology department executive vice president Lars Ottersg? Rd said that his company is actively exploring the blockchain technology is used to reduce the market risk of the way.
At the same time, several heavyweight Wall Street and Washington joined bitcoin companies, such as Mr. Nideaoer (Niederauer) is added to the digital currency start-ups; former JP Morgan commodities a sister Blythe Masters simply join a bitcoin Derivatives Product Company as ceo. Last October, former U.S. Securities and Exchange Commission, Arthur Levitt (Arthur Levitt) joined the Bitpay as a consultant to the company, January, digital currency startups Ripple Labs appointed former director of the National Economic Council Gene Sperling as director of the company. Bitcoin mineral company BitFury hired former criminal justice department head Jason Weinstein (Jason Weinstein) as a consultant.
In addition, transactions with bitcoin related to the Wall Street emerge in an endless stream, bitcoin trading provides more powerful, more compliance of the trading environment. New York entrepreneur Barry Hilbert bitcoin Investment Trust Fund (BIT) this week publicly traded, the fund will soon usher in a very strong competitors, Taylor and Cameron Winkelvoss brothers fund if it is approved by SEC, it will become the first mature bitcoin trading fund.
On the other hand, the big brand technology companies are to test the water in this area, the computer giant IBM is working on how to use block chain technology to implement networking. The chip maker Qualcomm Corp and other top venture company invested $116 million stake in a start-up company called 21, in order to explore the application of block chain products.
Of course, there are still a lot of people are skeptical, Boston University professor Mark T Williams is a very strong bitcoin critic, he believes that for bitcoin regulation should be more severe, to protect consumers, “the complex thing is that it is a borderless currency,” he said, “what regulators should be responsible for this?”
There are a lot of people on suspicion, if a threat to digital currency such as credit card business income, this kind of traditional bank institutions one day whether to overturn this technology.
However, bitcoin technology can save costs and improve the efficiency of the potential, is undoubtedly very attractive for businesses.
“It is not only a threat, but also a potential opportunity,” Niederauer said, “if the train will be leaving the station, compared to a spectator, you should choose the car and became an inspector.”