Digital Currency Weekly Recap 9-25-2016
Santander to Launch New Blockchain Token Cryptocurrency
Spanish bank Santander recently announced its plans to use the Ethereum blockchain to digitize the public’s cash. The move will make the bank the first to use a live public blockchain for that purpose, and comes on the heels of the company’s decision earlier this year to test international payments using blockchain technology. Before this digitization can happen, the bank must work through various security concerns to ensure that those funds are secure. Santander also made news last month when it joined with three other major banks to create a utility settlement coin (USC) to facilitate smoother transactions between different banks.
Synereo Destroys Half of its Digital Currency
Tel Aviv startup Synereo recently made the decision to destroy half of all of the pre-mined AMP cryptocurrency it has been holding. The move was made as part of an effort to ensure that the company was not controlling the majority of AMPs in existence. The destruction of more than 731 million AMPs took place last Saturday, with roughly 400,000 of those coins having been held in Synereo’s Future Funding Wallet. The move was undertaken as the company’s original forecasts of AMP sales fell short of Synereo’s goals. According to founder Dor Konforty, the destruction of more than $140 million worth of the digital currency was necessary to ensure that Synereo did not end up being the “central bank” for the currency.
Ethereum Suffers DDoS
Earlier this week, another attack was launched against Ethereum – this time taking the form of a concerted DDoS attack. The attack was announced by co-founder Jeffrey Wilke on Thursday, as he called on Ethereum miners to utilize a different mining technique to attempt to avoid the attack. Ethereum’s response in this instance appears to have been fairly rapid, and developers quickly got to work on the development of a patch. Transaction speeds were slowed somewhat, but the network maintained operations. The larger concern for Ethereum is the potential damage that such attacks can do to a reputation already tarnished as a result of the previous hack of the DAO.
Russian Official: Digital Currency Could Lead to Destruction of Russian Economy
The latest statements about digital currency from Russian officials indicate that many officials in the nation’s government remain fearful of the new technology. Russian Federation Federal Financial Monitoring Service deputy director Paul Livadniy recently declared Bitcoin and the entire digital currency industry a threat that could be so damaging that it brings down the Russian Economy. In his reasoning, Livadniy suggested that national currencies provide the state with greater tools for controlling things like inflation, while cryptocurrencies represent a threat to sovereignty since they are not under the direct control of any government and are “backed by nothing.”
It is important to note that Livadniy is not necessarily opposed to digital currency. His concern is focused on cryptocurrencies that are not under the control of any government. He has in the past indicated that he might be supportive of a Russian Federation-issued digital currency. In fact, he revealed earlier this year that the government and the nation’s banks have already been in talks to discuss the issuance of just such a currency. Unfortunately for the rest of the cryptocurrency industry, if Russia does issue its own digital currency, it would in all likelihood be accompanied by a corresponding ban on all others.