Crypto-currencies’ strength becomes their weakness 29 Sep 2017 Freedom from regulation was the big draw of bitcoin, ether and the like. But exchanges established to trade them often lack basic controls on identity, fraud, tech and even volume. Without fixes, digital currencies will stay on the financial fringe, prone to crime and bubbles.
Crypto-currencies can’t salvage hedge-fund junkies 27 Sep 2017 One-time star manager Mike Novogratz is pinning a comeback on digital coins. Their volatility is alluring when tranquil markets are depressing industry returns. But as the former Fortress executive knows, that can be a trap. He was burned by a bad Swiss franc bet two years ago.
China charges into burgeoning bitcoin battle 4 Aug 2017 The crypto-currency has been cloned, thanks to support from China's massive mining community. Although local trade has been suppressed by regulators, the People's Republic has managed to increase its influence over bitcoin's development by running the machines behind the market.
Crypto-currency deals recall an earlier tech craze 19 Jul 2017 A rash of initial coin offerings has raised $1.3 bln in 2017, much of it in the past month. These crypto-currency versions of an IPO bear the speculative hallmarks of the ‘90s tech boom. With untested managements and few if any investor protections, this wave may end just as badly.
Ransomware reveals tech challenges past and future 28 Jun 2017 The Petya cyber attack spread from Ukraine to 65 countries, infecting software that could have been patched. Human error enables hacking of today's IT setups, making prank emails that deceived bank bosses alarming, too. The cloud reduces that danger – but introduces others.
Deep-learning chips getting artificially inflated 9 May 2017 Circuitry first produced for videogames now powers advances in the hot field of self-learning computers. That has helped double Nvidia's market value to over $60 bln in less than two years. The fate of graphics chips in bitcoin and new developments at Google may hint at slower growth.
Viewsroom: Intel’s pricey bet on driverless cars 16 Mar 2017 The chipmaker is shelling out $15 bln for autonomous-driving parts firm Mobileye, a cool 30 times estimated revenue. Intel missed the mobile-phone revolution. Is it finally on the right road? Plus: Washington bounces bitcoin’s bid for mainstream acceptance.
Bitcoin is maimed, long live the blockchain 13 Mar 2017 U.S. regulators vetoed an ETF proposed by the Winklevoss twins, slamming the door on taking the crypto-currency to the masses. At the same time, the ledger technology behind it is gaining traction on Wall Street. Bitcoin-related speculation and long-term investing will coexist.
Bitcoin’s ETF drive may spark volatile backfire 9 Mar 2017 The Winklevoss twins of Facebook fame are among those who want to open up the crypto-currency to a wider audience via an exchange-traded fund. Watchdog approval could unleash big inflows, but also fuel bitcoin’s scariest white-knuckle ride yet – and impede mainstream acceptance.
China can ignore ill-advised flight to bitcoin 9 Jan 2017 Beijing has cracked down on people converting yuan to dollars, but seems relatively relaxed about them piling into the virtual currency. That's probably because the bitcoin market is tiny, volatile, and dominated by local speculators: an unreliable channel for capital outflows.
Breakdown: Fintech steps towards maturity 21 Dec 2016 Blockchain, robo advice and other technologies once hyped as the most disruptive to finance will take a back seat in 2017. The payments battle will step up a gear. Alternative lenders will hunt for deposits. And resurgent earnings may give U.S. banks a timely war chest.
Blockchain for banks will eat its creators 27 Oct 2016 A transaction involving Wells Fargo and a cotton trader has made the payment technology a reality. Meanwhile a consortium-backed platform will soon share its code. Banks act like this is a good thing, but their role as middlemen in markets like corporate bonds and FX is at risk.
Banks’ own bitcoin is in the gift of central banks 24 Aug 2016 UBS has corralled four firms to help it develop a digital bitcoin-like currency so as to slash settlement times. Unlike the libertarian cryptocurrency, this approach depends resolutely on central bank approval. And while it may reduce risk, the benefits could also be a pipedream.
Review: Blockchain hopes go well beyond finance 10 Jun 2016 The distributed-ledger concept is linked to the bitcoin cryptocurrency, and more recently potential financial uses have taken wing. A new book, “Blockchain Revolution,” explores democratic and humanitarian applications. It’s both eye-opening and, at times, a bit wide-eyed.
Blockchain teamwork could help banks fight hackers 13 May 2016 An $81 mln central bank heist and a new attack on a commercial lender underscore the rise of cyber-related risks. The European Central Bank wants banks to log serious incidents. But industry collaboration - as seen with distributed ledgers - would do more to shore up defences.
Who cares who invented bitcoin? 2 May 2016 The whole point of the cryptocurrency and related technology is that they now live a life of their own. That makes Australian Craig Wright’s claim to be bitcoin creator Satoshi Nakamoto a curiosity at best. There is, however, a caveat related to the originator’s personal stash.
Fintech’s two big ideas are a decade apart 7 Apr 2016 Blockchains and open-access consumer finance could each conceptually transform banking. But customers will be able to force European lenders to divulge current account data to third parties from 2018, while mainstream adoption of distributed database tech will take far longer.
American oversight of financial tech looks so 2007 9 Mar 2016 U.S. regulators are falling short of policing this emerging industry, partly because of the outdated patchwork of state rules. The UK and others are further ahead in addressing the sector in fresh ways. Creating a modern, federal regime to oversee these firms is a priority.
Blockchain is a zero-sum game for investment banks 29 Feb 2016 The technology that launched Bitcoin could help broker-dealers cut costs. The catch: it could equally eat into revenue by automating services they currently charge for. Given the formidable obstacles to widespread adoption, it may prove to be as much a curse as a blessing.
Banks ponder blockchain’s first-mover disadvantage 16 Dec 2015 Lenders are racing to adopt Bitcoin-style technology to cut their costs. Successfully incorporating so-called distributed ledgers could eventually cut $20 bln from industry costs. But it’s not clear what models will work, and whether free-riding rivals will share the prize.