interesting

Bitcoin and cryptocurrencies have attracted strong criticism from the world's central bankers this year–sparked, perhaps, by Facebook's plans for its own bitcoin rival.

The bitcoin price soared in the first six-months of this year only to stall amid concerns lawmakers and regulators could be poised to crackdown on the nascent bitcoin and crypto industry.

Now, former European Central Bank (ECB) president Jean-Claude Trichet has slammed bitcoin and Facebook's libra project, warning bitcoin is "not real" and not the future of money.



Jean-Claude Trichet, president of the European Central Bank from 2003 to 2011, was speaking at a ... [+]GETTY IMAGES"I am strongly against bitcoin, and I think we are a little complacent," said Trichet, speaking during a panel discussion at Beijing-based media group Caixin’s annual conference last weekend.

His comments were first reported by the South China Morning Post newspaper."[Bitcoin] itself is not real, with the characteristics that a currency must have."
Trichet also slammed bitcoin and cryptocurrency speculation, which he branded "not healthy.""Even if [the cryptocurrency] is supposed to be based on underlying assets, I am observing a lot of speculation. It is not healthy," Trichet said, adding buying a cryptocurrency is "in many respects pure speculation."

Bitcoin and cryptocurrency adoption has failed to live up to sky-high expectations since bitcoin exploded into the public consciousness in 2017.

Bitcoin soared in 2017 from under $1,000 per bitcoin to almost $20,000, sparking a digital gold rush and making many early adopters overnight millionaires.

Trichet's remarks come amid excitement in the bitcoin and cryptocurrency industry that China could be about to relax its strict crypto restrictions following a ban on bitcoin exchanges in 2017.

Last month, some bitcoin and cryptocurrency market analysts pointed to comments made by China's president President Xi Jinping that the country should "seize the opportunity" of bitcoin's blockchain technology as the reason behind bitcoin's sudden rally.



The bitcoin price rallied hard earlier this year after a disastrous 2018 but that rally has stalled. ... [+]COINDESK"We are already in a domain which has much less physical currency,” he said.

"Whether we are in a domain where that will be replaced with crypto? I have doubts there.

"Trichet's comments echo remarks made by new ECB president Christine Lagarde earlier this year when she warned cryptocurrencies are "shaking the system"—something that could signal a change in the ECB's approach to bitcoin and crypto and potentially spur adoption.

Elsewhere, the last ECB president, Mario Draghi, has said that bitcoin and crypto "are not designed in ways that make them suitable substitutes for money.


"Forbes CryptoAsset & Blockchain Advisor cuts through the hype and identifies real investor opportunities in the emerging world of blockchain and cryptocurrencies. Click to learn more.


Follow me on Twitter.



Billy Bambrough

I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported ... Read More

A coalition of blockchain researchers, entrepreneurs, and investors have opened a massive new blockchain incubator called “The Garage” in Paris as part of an effort to enhance Europe’s position as a hub for the emerging technology.

The incubator in the Paris city center spans three floors of a building, totaling 5,000 square feet. The goal is to give visibility to a community of developers in a budding industry that is often remote and disconnected.


“The idea is to have a place where people can hang and learn,” said Cyril Paglino, one of the people behind the effort. “Blockchain is pretty abstract for most people.

To have it in the center of Paris will be key to letting people know things are really happening. It’s like an anchor.”Paglino made a splash several years ago with his startup Tribe, a video messaging app that raised $6.5 million and initially seemed like a hit.

But after hitting a wall in growth, an effort to pivot was blocked by Apple’s App Store, and Tribe was closed in 2017. That experience motivated Paglino to launch Starchain Capital, a venture firm focused on blockchain startups that couldn’t be blocked by tech giants.

More recently, Paglino has been advising and working part-time with the developers behind Dune Networks, a blockchain platform specifically created for enterprises and large businesses. Dune was a fork from the Tezos blockchain project.

As that work proceeded, the group pulled in Oussama Ammar, cofounder of The Family, a startup advisory and education firm. The Family is a cofounder of The Garage, along with Dune Studios and Starchain. And in many ways, The Garage will be modeled around The Family, Paglino said.

The primary developers of the Dune protocol will move into The Garage, as will Dune Studios, a for-profit business that will be designing applications for open source networks. Paglino’s Starchain Capital will also relocate to the space.


Above:

The Garage, a new blockchain incubator in Paris.

Image Credit: Courtesy of "The Garage"

A big part of the mission is convincing large companies to embrace blockchain — ideally Dune, though not exclusively.

The first floor is essentially an open co-working space where anyone can drop in without having to formally join. The Garage will also offer product, strategy, and PR advice to startups that work from the offices.

More formally, there will be training education services, as well as paid consulting for large companies, similar to The Family’s model, Paglino said.

While focused on France and Europe, Paglino said The Garage will be open to startups from anywhere. And naturally, this activity will help Starchain keep tabs on promising startups for potential investments.

The supply chain has existed since the industrial revolution, and little has been done to streamline its processes, particularly in the last 50 years. It has also become more than simply moving products from A to B. In today’s industry, supply chains are now more fragmented, complicated and in some cases geographically dispersed.

The 21st century has enabled more dynamic networks than ever before, with seasonal products facing a higher demand than ever, which are transported further than before. Because of this, the traditional supply chain has become outdated and can be difficult to manage.

This is a problem for businesses of any size as their success will often correlate with the success of its supply chain. So, how can blockchain change this?Blockchain is everywhere. It was the buzzword of 2018, and so far, that doesn’t look set to change as we continue through 2019.

However, there is still plenty of uncertainty over the technology and the benefits it can bring to different sectors and businesses, including the supply chain – a vital element for numerous organisations.

Originally developed to power bitcoin over 10 years ago, blockchain is a surprisingly straightforward concept.

In a nutshell, it’s a system that records change and movement of transactions. It’s maintained across several systems that are linked to a peer-to-peer network. When it comes to the supply chain, blockchain acts as an immutable ledger within a decentralised location.

Meaning that any changes in ownership or possession of goods, along with their movements from each end of the supply chain, can be recorded instantly for the greatest possible accuracy, which is essential for businesses.

This increased transparency across the chain can allow for a clear understanding of the value of goods, as well as a more succinct idea of a fair and reasonable cost of each individual product. It also allows for more detailed traceability in goods from across the globe, which gives an insight into the environmental impact of products, as purchasers can follow the entire journey of their orders.

SEE ALSO:

• Blockchain and the supply chain
• Osborne Clarke: Will blockchain drive the evolution of cognitive supply chains?
• Indian Coffee Board launches blockchain marketplace to improve supply chain
• Read the latest issue of Supply Chain Digital here!

How can it reduce costs?Many retail businesses are dependent on global supply chains for transporting their goods via the logistics industry. This market is controlled by freight brokers who can charge a huge mark-up for assisting in the transactions of loads through shippers.

Blockchain can be effective in resolving this issue through the use of smart contracts, which are automatically triggered when a specific action takes place, removing the use of intermediaries, therefore saving money across the chain.

As well as cutting out unnecessary and often expensive admin, the features of blockchain can help improve inventory management, reduce costly data errors and delays, and shorten resolution time when disputes occur.

It also allows producers the ability to accurately track capacity and costs, estimate delivery times for multiple routes, and make smarter decisions. How can it promote traceability?

Blockchain ensures that the data it records is permanent and easy to share, giving supply chain players more comprehensive track-and-trace capabilities than ever before. The public ledger means it is possible to trace each product to the very origin of the raw material used.

Companies can use this information to provide proof of legitimacy and authenticity. It even allows people to see if their purchase has been ethically sourced and if it has been stored in the correct conditions.

By having a clear and concise understanding of exactly where a product has come from, businesses and their customers are able to have a better understanding of the routes taken and transport options used to deliver their goods.

In a society that is becoming more environmentally aware, those who can show improvement or have a clear and transparent policy to their own emission production, may be looked on more favourably. 

The future?

Blockchain has the potential to transform the supply chain and disrupt the way we produce, market, purchase and consume goods. The added transparency, traceability and security to the supply chain can go a long way toward making our economies safer and much more reliable, by promoting trust and honesty and preventing the implementation of questionable practices.

Businesses, especially those in retail or those who rely on supply chains, should consider the benefits of blockchain and not be afraid to step into a different world, which on the surface may appear complicated, but in reality, can offer measurable benefits. By Richard Shakespeare, Retail Propositions & Performance Director, Opus Energy