by Sonya Kuhnel
Posted on November 7, 2017 at 12:00 AM
Well-known, local TV station, SABC3 invited the Blockchain Academy to participate in a live discussion on Monday 6 November at its studio in Johannesburg on de-mystifying bitcoin and blockchain technology. Carel de Jager, an instructor at the academy, Xhanti Payi an economist, and Mpho Dagada, entrepreneur and cryptocurrency millionaire, talked about why bitcoin could be viewed as an investment, why it is so popular, what blockchain technology is and what you need to know before investing in bitcoin.
Xhanti felt that bitcoin has no underlying value and is not a currency but rather an investment only. This is an argument often brought up when discussing bitcoin. If we ask this about bitcoin, we should ask the same of fiat currency. In South Africa, the rand used to be backed by gold reserves, however the issuance of bank notes was completely cut from gold in 1971. If a country prints money and creates inflation, then there will be a decline in the value of the currency, which is the case in Zimbabwe. Bitcoin is entirely different to traditional currencies, as it is not backed by a nation's economy, nor is it centrally controlled. This lack of tangible value means many people find the intrinsic worth of bitcoin difficult to understand. Furthermore, bitcoin is deflationary because only about 21 million bitcoin can ever exist in circulation. This is an important and significant difference between bitcoin and fiat currencies. This means the value of bitcoin, similarly to gold, because of its limited supply, can become more and more valuable and of course, demand will then increase for it. Bitcoins underlying value comes from the supply and demand for it: it is worth how much someone is willing to pay for it.
What is clear though, is that so much more education is needed on cryptocurrencies and blockchain technology.
View the discussion here.
by Sonya Kuhnel
Posted on August 25, 2017 at 11:00 AM
The Blockchain Academy was honoured to be invited by the Graduate School of Business to present a guest lecture for two hours on 17 August 2017, to the Master of Commerce students. The instructor explained the basics of bitcoin and it's underlying technology, the blockchain and how this technology is being used by various organisations around the world to innovate existing systems and processes as well as how it is creating new opportunities from crowd funding and ICO's, to payments and remittances, to tracking and provenance of assets and proving ownership of property. The instructor discussed how various countries such as Japan and South Korea have legalised bitcoin and how other countries are viewing bitcoin in particular.
The students asked many interesting and pertinent questions regarding how cryptocurrencies are disrupting traditional finance models and what the future holds for this exciting technology. Others questions posed to the instructor included;
- if cryptocurrency will ever completely replace fiat currency, and if so, by when?
- what exactly does the term pseudonymity mean?
- why will there ever only be 21 million bitcoin?
- how would one acquire bitcoin after 2140?
- how to create your own cryptocurrency/token?
It was great to see an academic institution such as the University of Cape Town providing the opportunity to educate its students on one of the most disruptive technologies of our time!
by Adele Davey
Posted on July 14, 2017 at 10:00 AM
On 1 July 2017, the Blockchain Academy partnered with the information technology firm Anglo African, headquartered in Mauritius. Anglo African has subsidiaries in Madagascar, Rwanda, Zambia and Zimbabwe, and sales offices in Djibouti and Reunion.
The Blockchain Academy’s first training session with Anglo African and its clients (which include regulators, government institutions, banks, insurance and offshore companies in the FSI) will take place in Mauritius from 2-3 August 2017.
These two days of interactive sessions will cover:
- The basics of cryptocurrencies and blockchain technology
- The different types of blockchains such as Ethereum, Bitcoin and Ripple
- How Distributed Ledger Technology is being used by companies such as R3CEV and how it differs from traditional blockchain technology
- How financial institutions can use blockchain technology to innovate and leverage its key characteristics of security, immutability, transparency, speed, cost effectiveness and efficiency across many use-cases varying from trade finance, capital markets, settlements and clearing, payments, correspondent banking, and many more.
The Blockchain is a digital ledger of economic transactions and can be programmed to record virtually everything of value and importance, such as: birth and death certificates, deeds and titles of ownership, financial accounts, votes, provenance of food, and anything else that can be expressed in code.
The financial services industry has been keeping a close eye on blockchain technology that can record and authenticate every transaction without a bank or broker as a third party, and without sharing any personal information.
The possibilities of blockchain technology are endless. Any industry that deals with transactions can and will be disrupted by this technology. Rather than the Internet of Information, this is the Internet of Value or the Internet of Money.
Click here for more information.
by Adele Davey
Posted on June 23, 2017 at 9:00 AM
The Blockchain Academy recently flew to Swaziland to train 50 employees from the Central Bank of Swaziland. The training took place over two days from 12-13 June.
Sonya Kuhnel, Managing Director of the Blockchain Academy, thanked the Central Bank of Swaziland for inviting the academy to Swaziland, and said she looked forward to 2 full days of debate and discussion around cryptocurrencies and blockchain technology.
Gavin Marshall, the course instructor, started by delving into the fundamentals and concepts of cryptocurrencies and blockchain technology. The discussion centred around why this technology is so revolutionary, and what opportunities exist for both financial and non-financial institutions. Bitcoin’s decentralised nature (no one owns or governs it, as well as the identity of its creator Satoshi Nakamoto being a mystery) was a particularly tough concept for the regulators.Click here for more...
Questions such as how individuals can place their trust in a peer-to-peer payment system with no trusted third-party, created by an unknown person, which no one owns or controls, kept the instructor on his toes!
Day 2 focused on how financial institutions such as Goldman Sachs, Santander Bank, Deutsche Bank, Bank of Yokohama, Barclays Bank, Bank of New York Mellon, Citibank, JP Morgan Chase and Visa are partnering with blockchain based start-ups such as Chain, Axoni and ZCash to build blockchain-based proofs of concept in trade finance, settlements and clearing, syndicated loans, post-trade processing of credit default swaps, foreign exchange, cross-border payments and remittances, as well as some other use cases.
Public versus private blockchains
One of the most important discussion points was that of private versus public blockchains, or permissioned versus permissionless blockchains. Why are organisations building products and services using private blockchains such as Ripple when the benefits of transparency, decentralisation and security are so much more abundant in a public blockchain such as Ethereum and Bitcoin?
What is Ethereum and who is using it?
Ethereum is currently second to bitcoin in terms of market capitalisation, with Ripple in third position. What are the use cases for using each of these blockchains and which organisations are experimenting with and building proofs of concept for these? Over 80 organisations such as Microsoft, Intel, Accenture, Thompson Reuters, JPMorgan Chase, CME Group, BNY Mellon, State Street, Toyota, Merck, ING, Broadridge and Rabobank have joined the Enterprise Ethereum Alliance. The alliance aims to create software standards for Ethereum in business use cases, and establish a clear roadmap for enterprise Ethereum features and requirements. These include a robust governance model, intellectual property clarity and licensing models for open-source technology, as well as resources for businesses to learn how to leverage Ethereum.
What is Ripple and Interledger, and who is using it?
Ripple is an interesting blockchain as its specifically designed for financial institutions to use for cross-border payments. A 47-member consortium of financial institutions has successfully implemented a pilot program using Ripple for a cloud-based payments platform called RC Cloud. It allows member banks to do real-time money transfers in Japan, as well as make cross-border payments at a significantly lower cost. More than 75 banks are experimenting with Ripple's blockchain network, including MUFG in Japan; Santander, Fidor Bank, and BBVA in Spain; Akbank in Turkey; SEB in Sweden; Axis Bank and Yes Bank in India; Bank of America, RBC, Standard Chartered and UBS. Inter ledger is an open protocol introduced by Ripple in October 2015 for sending payments across different ledgers such as RCL, blockchain, HyperLedger, Bletchley etc. to achieve interoperability. Interledger is being developed by a W3C working group.
How are other central banks viewing blockchain technology?
Day 2 provided an insight into which central banks are exploring the concept of issuing their own blockchain-based digital currency. These include the Bank of England, the Banque de France, the People’s Bank of China, the Bank of Canada, the Central Bank of Russia, the Dutch Central Bank, and the Federal Reserve in the US. Countries such as Barbados, Senegal and Tunisia introduced their blockchain-based digital currency in 2016 and 2017.
The government of Japan recently passed regulation making bitcoin legal tender – this makes Japan one of the first countries to do so. In South Africa, the South African Reserve Bank (SARB) in its 2014 position paper on virtual currencies stated that virtual currencies do not pose a significant threat and that the SARB would continue to monitor the landscape closely. More recently, the SARB announced its willingness to emulate Tunisia by launching a blockchain-based digital version of the South African Rand.
The SARB has also been part of a blockchain-based project with some of South Africa’s largest banks, in conjunction with Strate, the Central Securities Depository (CSD) for trades concluded on the Johannesburg Stock exchange for syndicated loans.
Many central banks have publically stated that they are closely monitoring cryptocurrencies and that regulation should follow the innovation. Bitcoin is neither legal nor illegal in many countries. Central banks in China and Russia have announced that they are trialling blockchain technology for digitisation of their national currencies.
Day 2 ended with questions ranging from which is the best blockchain and why, how the central bank should view cryptocurrencies, what concerns they have with regards to cryptocurrencies, and what they should advise Swazi citizens when they invest their money in cryptocurrencies.
The Governor of the Central Bank of Swaziland thanked the Blockchain Academy for helping them understand cryptocurrencies and blockchain technology. He stated that the central bank would continue to engage with companies and individuals who are active in this space to further their understanding of this technology and to stay informed of any developments.