This week has been quite insane in the world of crypto influence and blockchain tech. For example, there was a recent report that estimated that by 2020, 20% of all global GDP will be stored on the blockchain. Additionally, Goldman Sachs revealed their plans to open up a cryptocurrency trading desk around the same time as Amazon announced their own plans for a crypto marketplace. Finally, Facebook announced some major changes to crypto influence its ad policies that could turn away big-name brands from advertising on the platform.
Top stories about Guest post are:
1. Amazon Could Be Entering the Crypto Space
2. Goldman Sachs Is Allegedly Opening a Branch in Crypto
3. Facebook Faces Regulation and a Major Change in Ads
4. 20% Global GDP to be Stored on Blockchain by 2020
5. Tether Faces a Scandal of Their Own
1. Amazon Could Be Entering the Crypto Space
You probably remember a few weeks back when I told you that one of the most popular search terms on Google was “How to Buy Bitcoin?” Well, it looks like if Amazon had their way, that might not be how people were searching for crypto anymore. According to a recent report from The Information , Jeff Bezos wants Amazon to have Amazon-branded cryptocurrency accounts. In other words, the retail giant would be opening up their own wallets and allowing users to transfer money around between their e-wallet and the Amazon account.
The report went on to state that these new accounts would likely be limited to customers in the US, but there is no word on whether or not that could change at some point down the road. It also mentions that Coca-Cola is working on an exclusive coin called Coke Coin, which will be used only within the Coca-Cola system. Site detail is here.
2. Goldman Sachs Is Allegedly Opening a Branch in Crypto
According to a recent report by Bloomberg , Goldman Sachs is allegedly setting up a new physical location for their trading desk in the Crypto Valley region of Switzerland. The report states that there are currently 16,000 people working at this branch,and it is expected to grow to around 100,000 people by the end of 2019. This includes employees from different divisions inside Goldman Sachs such as fixed income trading and investment banking.
Additionally, according to sources who spoke with Reuters , these new hires are reportedly focused on “all aspects” of financial technology including blockchain and cryptocurrencies.
The head of the investment banking division at Goldman Sachs, Martin Chavez, recently made a statement about the company’s plans to get involved in crypto. Chavez stated that the company has “no current plans” to set up a cryptocurrency trading desk but noted that there are “certainly things we are looking at.”
Finally, Goldman Sachs’ CEO, Lloyd Blankfein , has periodically talked about Bitcoin publicly and even appeared in a selfie with John McAfee . In May of 2017, Blankfein stated that he was still looking into Bitcoin. Not too long later he made another comment stating that people who invest or work in crypto or blockchain tech are “the smartest people I know,” adding that it is not an endorsement of crypto.
3. Facebook Faces Regulation and a Major Change in Ads
According to a recent article by Business Insider for outreach, it seems like Facebook’s stock price has taken a major hit since the company announced their plans to update their advertising policies on July 25th. Essentially, most of the big-name brands have decided that they will not be advertising on Facebook anymore due to the social network’s poorly-worded “banning” of crypto ads because of their volatility. The report goes on to state that Facebook failed to clearly state their reasons for banning the ads and only listed “misleading and deceptive promotional practices.
On the other hand, some experts believe that Facebook’s decision to ban all ads related to crypto could be a good thing for the industry as a whole. According to a recent report by Forbes, Mark T. Williams believes that Facebook’s new crypto ad policies could help the industry because it will “force serious players to emerge in order to attract investment.”
4. 20% Global GDP to be Stored on Blockchain by 2020
VentureBeat recently published an interesting article about some predictions made by the World Economic Forum (WEF). The report states that WEF predicts that 20 percent of global GDP will be stored on blockchain-based ledgers in just four years. Additionally, WEF predicts that by the year 2025 there will be a $3.1 billion security market for blockchain tech.
These predictions are based off Bitcoin of their research into over 800 projects in 40 industries that are working with blockchain technology. The report also states that blockchain-based transactions could save the public sector up to $20 billion a year in costs and increase private sector efficiency up to $16 billion.
5. Tether Faces a Scandal of Their Own
The recent Bitfinex/Tether scandal has taken a new turn this week as the Commodity Futures Trading Commission or CFTC reportedly sent subpoenas to Bitfinex and Tether . The report states that the subpoenas were sent to the companies after they requested auditing assistance from accounting firm Friedman LLP. The CFTC has also stated that they would like to talk to party involved in the scandal, and in their recent statement they made an interesting statement about Bitfinex and Tether.
According to a spokesperson, “The U.S. Commodity Futures Trading Commission (CFTC) has issued several subpoenas to various firms, including Tether,” adding that “the CFTC is interested in understanding how virtual currency markets and the underlying blockchain technology have evolved since December.” Additionally, he noted that the company would cooperate with any relevant investigations as well as if there are any misrepresentations regarding their financial statements or operations.