Tag: bitcoin

blockchain association, Blockchains, Ireland, Yogi Nelson

WILL IRELAND HAVE THE LUCK OF THE IRISH WHEN IT COMES TO BLOCKCHAIN INNOVATION?

Yogi Nelson

Namaste Yogis.   Welcome to the Blockchain & AI Forum, where your technology questions are answered!   Here no question is too mundane.  As a bonus, a proverb is also included.  Today’s question comes from Patrick and he wants a quick overview of blockchain innovation in Ireland. 

Patrick, you came to the right place.  Recently I read an informative research report titled:  Ireland’s Blockchain, Crypto & Web3 Strategy: A Vision to Establish Ireland as a Global Web3 Hub.

https://www.blockchainireland.ie/wp-content/uploads/2024/02/Blockchain-Ireland-Irelands-Blockchain-Crypto-and-Web3-Strategy-Paper.pdf  Below I highlight the most critical findings, but I’ll start with the authors, list the report chapters, and conclude with five recommendations. 

Report Authors

The report was prepared by researchers and academics on behalf of Blockchain Ireland.  Blockchain Ireland is essentially an industry association. According to Blockchain Ireland, the report offers a “… strategy and roadmap for creating a national and international blockchain hub in Ireland.” 

Table of Contents from the Report

  • Blockchain Ireland Overview:  In this chapter the report explains the who, what, why, and how of the organization. 
  • Blockchain Explainer:  Within this chapter, the authors go into detail regarding what is blockchain technology, how it works, why it’s important, etc.
  • Areas to Benefit from Blockchain, Digital Assets, and Crypto Innovations.  Here authors identify E-Governance & Digital Identity; Energy; Financial Services; Digital Assets; Healthcare and Supply Chain Management as the sectors where blockchain could have the greatest positive impact.
  • Government Regulations:  In this second to last chapter, the authors explain existing blockchain laws and government regulations in Ireland.
  • Recommendations and Road Map:  In this concluding chapter, the authors offer the government a series of recommendations and a “how to” narrative on implementing the ideas.

Report Highlights

After 25 years, Blockchain Ireland has grown to 1,400 members and 100 partnerships.  Blockchain Ireland has the ear of government officials, so let’s explore a few recommendations of the report starting with the Blockchain Hub concept: 

  1. 1. Develop a Global Blockchain Hub, a Multi-Institutional Centre for Excellence using the UN sustainable development goals (SDGs).  According to proponents, “… This Hub will bring together all the key components of the Blockchain ecosystem in an efficient and innovative way. The Hub, will contribute to drive the promotion of skills and talent in this area and position Ireland as a location of choice for Blockchain Technologies.”  What do you think about a blockchain association asking government to facilitate their industry?  Does it prove again that “free market” advocates want, need, and ask for government help when it’s convenient or did I miss something?
  2. 2. Create a Blockchain Skills Strategy and Roadmap. Blockchain Ireland is advocating for the government to adopt a blockchain strategy and of course, that it base the strategy on the report they produced and being reviewed here.  Makes sense. 
  3. 3. Create Public Trust in Blockchain.  It is unclear why Blockchain Ireland believes the government is capable of creating public trust in blockchain as opposed to other institutions but nevertheless, this is what they said.  The authors identified a number of ways to create public trust in blockchain technology, including:  more academic studies, university degrees in blockchain, conduct test pilot projects in fields of law and property, for example. 
  4. 4. Provide networking, mentoring, and financial support for emerging entrepreneurs and innovators to participate in national and EU-level innovation events, hubs and clusters.
  5. 5. Establish compliant sandbox and test-bed environments to iterate Web3 proof of-concepts, test implementations, and trial scaling propositions.

Time for a proverb from Ireland, where they say: “a cabin with plenty of food is better than a hungry castle.”

Until Next Time,

Yogi Nelson

Artificial Intelligence, Blockchains, Japan, Yogi Nelson

Understanding Japan’s Crypto Landscape: Key Concepts Explained

Yogi Nelson

Namaste Yogis!   Welcome to the Blockchain & AI Forum, where your technology questions are answered. As a bonus, a proverb is also included.  Today’s question, was submitted by Chisato and she wants to understand the evolution of crypto regulations in her native Japan.

Chisato, you came to the right place. Let’s examine the Japanese regulatory milieu of crypto by dividing the eras into three distinct periods, and ending by defining four key terms.  A big thanks and acknowledgment to So Saito and Kazuki Imanari of So & Sato Law Offices for the source of this information:

Click to access Crypto-Regulations-in-Japan-2024_240904-1.pdf

Early Era: 2014 – 2017   

Japan was an early leader in crypto but after the Mt. Gox exchange collapse in 2015, crypto fell from grace.  One year before the collapse of Mt Gox, the Japanese government decided to not regulate the industry and instead asked the industry to self-regulate.  It didn’t work. Although some retail users fled, crypto developers continued to build and true believers remained and by 2017 Japan was home to the number one crypto exchange.

Era of Stricter Regulations:  2017 – 2020

In America, stricter regulations always happen after a catastrophe; Japan is no different.    In 2018 there was a massive hacking, known as the Coincheck incident, and immediately thereafter Japanese financial regulators came charging.  Exchanges were forced to comply with new regulations, leading to a shake-out in the industry.

Web3 Makes the National Growth Strategy List:  2021 – Present

In 2021, the Japanese government approved a Web3 White Paper wherein it committed to Web3 as a national priority.  They quickly followed that action by being among the first to enact stablecoin regulations.   

Let’s now examine the Japanese definition of four key crypto concepts. 

Stablecoins

As noted above, Japan was a pioneer in crypto regulations and consequently was one of the first to establish stablecoin regulations.  In Japan, stablecoins pegged to fiat currency are defined as electronic payment instruments and require the issuer to obtain a license. Stablecoins classified as assets are subject to crypto regulations, while stablecoins classified as securities are subject to securities regulations.

Non-Fungible Tokens (NFTs)

NFT regulations are generally clear.  The basic rule says, that if the NFT does not function as a payment instrument it is not considered a crypto asset.  Japanese regulators say “pure” NFTs have technical features that prohibit their use as payment instruments.  Japanese regulators also examine whether the quantity and price of NFTs are suitable for payment instruments.  Bottom line:  NFTs are not regulated in Japan; they are treated analogous to trading cards.  However, if an NFT is linked to a real-world asset, e.g. real estate, it could be considered a security. 

Crypto Lending

Crypto lending is not regulated in Japan.  What do I mean by crypto lending?  In crypto lending, a service provider borrows crypto assets from users for a certain period of time and pays a lending fee in exchange.  Why is this not regulated?  Because crypto assets are not considered money, therefore the Money Lending Business Act does not apply.  However, crypto lending maybe regulated in cases where the service is considered custody. 

Crypto Taxation

Death and taxes are inevitable everywhere, including Japan.  In Japan, tax authorities define crypto asset profits as miscellaneous income.  Profits generated by crypto asset transactions are taxed based on the personal tax bracket of the individual.  Income tax rates in Japan go from 5% to 45%!  Ouch. 

I end now with a proverb from Japan, where they say: “the mouth is the source of disaster”.

Until next time,

Yogi Nelson

Uncategorized

Exploring Panama’s Crypto Friendly Banking at Tower Bank

Yogi Nelson

Namaste Yogis. Welcome to the Blockchain & AI Forum, where your technology questions are answered! Here no question is too mundane. As a bonus, a proverb is also included. Today’s question, was submitted by Ramonita, and she wants to know if there are crypto friendly banks in Panama?

Ramonita, you came to the right place. I suppose you ask because you own crypto assets and want options beyond American banks. The short answer is yes, Panama does have crypto friendly banks. Rather than listing all crypto friendly banks in Panama, I’ll focus on one example, Tower Bank, and give you plenty of details. Before revealing all the amazing crypto friendly features Tower Bank offers, let’s step back and understand the banking context in Panama.

Panama is a major international banking power. Although Panama has a population of only 4M, you will find 79 unique banks! By comparison, Puerto Rico with a population of 3.2M, has only three. You might say Panamanian banking punches above its weight, just like the former Panamanian boxing champion, Roberto Duran. Look at the Panama City skyline on a video, and you will view dozens of bank logos on giant skyscrapers. Why is Panama a banking giant, you ask? Consider the following.

First, banking in Panama is tied to international trade and Panama Canal. Ships coming and going need financing as do countless logistics companies, freight forwarding, etc. Panama is also an important offshore banking center for wealthy South and Central American citizens, (and others) e.g., Venezuela, Colombia, Argentina, etc. looking to protect financial assets and diversify their banking. Third, Panama is a dollar-based economy, meaning their currency is the U.S. dollar. The U.S. dollar remains the world’s reserve currency, therefore currency risk is reduced. Banking safety entices customers. For instance, since 2000 there have been only three bank failures in Panama compared to hundreds in the USA. As you know, banking is a major driver of economic prosperity in Panama, consequently Panama has cultivated and nurtured talented bankers and regulators with plenty of high-level experience, regulatory stability, and excellent reputation. Last, Panama is a banking and finance innovator. Now we examine the next evolution of banking by highlighting a crypto friendly Panamanian bank, Tower Bank.

Tower Bank considers itself a bridge between two worlds–crypto and traditional banking. At Tower Bank, regardless of your nationality (so they say) you can open a bank account in dollars and crypto. (By the way, I’ll test their claim next month while in Panama.) According to Tower Bank, a client can:

  • quickly buy, sell, or convert stable coins, Bitcoin, and Ethereum (ETH) into dollars; or vice-versa
  • buy crypto currencies on numerous exchanges without commissions
  • make free crypto deposits/withdraws from any ATM in Panama

Tower Bank understands crypto fans demand greater autonomy over their assets and has responded with their Ikigii product.

Ikigii is the name of Tower Bank’s crypto wallet. With Ikigii, Tower Bank clients can buy and sell crypto; send and receive crypto, and execute banking transactions, including ACH, transfers, payments, etc. Using Ikigii, customers can send/receive crypto from their external wallets to their Ikigii wallet. With Ikigii, Tower customers can enjoy the best of both worlds. They can move their crypto assets on an external wallet (Ikigii) or maintain the assets at the bank!

Time to go but not before I leave you with this proverb from Panama where they say: “a tree that is born crooked will never straighten its trunk”.

Until Next Time,

Yogi Nelson

Artificial Intelligence, blockchain association, Blockchains, Yogi Nelson

Coinbase’s Political Mobilization of Crypto Owners: Analyzing the Strategy

Yogi Nelson

Namaste Yogis. Welcome to the Blockchain & AI Forum, where your blockchain and artificial intelligence technology questions are answered! As a bonus, a proverb is also included. Today’s question, was submitted by Eduardo from Panama, and he wants to know why Coinbase has decided to enter American politics and what difference will it make?

Eduardo, you came to the right place. I’ll answer your questions as you presented them, beginning with why Coinbase decided to get political. Of course Coinbase is the largest centralized American crypto exchange platform. Think of Coinbase as the Charles Schwab of crypto asset trading.

Coinbase has learned two old lessons. First, businesses need friends in politics, especially if they intend to disrupt powerful entrenched interest and incumbents. Coinbase failed to recognize incumbents transform their economic power into political might and thereby prevent, minimize, and/or sabotage new entries into the market. Second, Coinbase neglected to mobilize their constituency into a political movement from day one. Instead Coinbase relied on business and legal strategies to win the competition and failed to recognize the war has three fronts—business, legal, and political. Coinbase is now playing catchup. Essentially, Coinbase jumped into politics out of necessity. Let’s now examine Coinbase’s political strategy?

Coinbase claims 52M Americans own crypto. Coinbase didn’t cite a source but let’s suppose their numbers are correct. Crypto owners are adults and therefore of voting age. In the 2020 presidential election, 155M votes where casted: 81M for Biden and 74M for Trump. Neither candidate was “pro-crypto”. Both were anti-crypto, and crypto was not an election issue.

In 2024 crypto will most likely be a third-tier national issue, behind the economy, war, taxes, environment, abortion rights, gun control, Supreme Court, etc. However, for crypto-fundamentalists it could be a first-tier issue or tiebreaker voting matter. The questions then become how many crypto-fundamentalists voters are there, do they live in swing states where 1-2% make a significant difference, and what is their propensity to vote?

According to Coinbase, “… we are launching an effort to mobilize 52M crypto owners—younger and more diverse than the US population as a whole—into a powerful force heading into the 2024 election with an intense effort on nine key states”. Let’s examine this strategy.

A focus on nine key states makes sense on the surface. However, the swing states population are not younger and more diverse. Hence, there is a disconnect in the strategy. Moreover, younger, and diverse voters favor the Democratic Party. However, Republicans are perceived as more crypto friendly, particularly after Trump’s recent speech in Nashville at the Bitcoin conference. Will young and diverse voters abandon the Dems in meaningful numbers over crypto regulations–extremely unlikely.

Coinbase wants crypto to be a non-partisan issue; that makes perfect business sense. Coinbase is motivated to mobilize younger and more diverse voters because those are their customers. Dem voters are also younger and diverse. Hence, the smart political maneuver is for the Dems to capitalize on the efforts of Coinbase by becoming crypto friendly and motivate voters that are proportionately more in the Dems camp. Dems have every incentive to become crypto friendly because their natural constituency is there waiting. Making the switch now blunts the trend of crypto becoming a wedge issue. Additionally, it stymies the Republican party from developing an advantage with younger voters via crypto now. Harris can start by distancing herself from the anti-crypto zealous, e.g., Elizabeth Warren, kicking Gensler off the team, and appearing before the crypto community to listen, not just talk.

I conclude with a proverb from Estonia: “What village dogs will not eat wolves will not eat either”.

Sincerely,

Yogi Nelson

Uncategorized

CAN YOU LEARN BLOCKCHAIN TECHNOLOGY IN MALAYSIA?

Yogi Nelson

Namaste Yogis.   Welcome to the Blockchain & AI Forum, where your blockchain and artificial intelligence technology questions are answered!   Here no question is too mundane.  As a bonus, a proverb is also included.  Today’s question was submitted by Ying in Thailand, and she wants to know if she can learn blockchain technology in Malaysia.

Ying, you came to the right place.  Your question shows you are aware that blockchain technology is spreading throughout the world.  The answer is yes, you can learn blockchain technology in Malaysia.  Let’s look at a Malaysian blockchain program and see what they offer.  We begin with the program name.

The name is not particularly creative, but it gets the point across—The Malaysia Blockchain Academy.  Simple and straight forward.  Their physical presence is in their capital, Kuala Lumpur.  A beautiful city, and worth a visit.  I hope to be there later this year.

The academy offers seven on-line courses and one in-person.  I’ll start by talking about the in-person course, named Certified Blockchain Technologist.  According to the Academy, this is an instructor led course designed for anyone who wants to understand blockchain technology.   The course offers to teach blockchain technology using real world examples, case studies and use cases.  By the end of the course you will create your own blockchain and wallet!  If you pass the final and complete a class project, you will earn a certificate that is recognized across the global.  Holy high tech, Batman.  Now an overview of their seven on-line courses.

The Academy does not explicitly indicate the order in which courses should be taken in, nevertheless I will suggest a sequence, beginning with Introduction to Hyperledger Blockchain.  What is Hyperledger Blockchain?  Hyperledger is an open source permissioned blockchain framework designed for global enterprises who want to have advanced privacy controls in place. It was started by The Linux Foundation and now backed by IBM, Intel and SAP Ariba.  What else is available?

Next, I suggest Blockchain Platforms and Framework as that course offers a deep understanding of the technology, with a particular emphasis on IBM technology. Who knows, maybe land a job with IBM?  After you finish those three classes, students are ready for courses four and five, both of which are practical and hands.

I suggest Create a Blockchain Network as the fourth course and Create an App Using Blockchain as the fifth.  These two courses are designed to teach students how to apply the lessons not just theoretical understanding.  That’s awesome, right?  Let’s cover the last three courses.

On to course six, Introduction to Polkadot technology.  I find this offering particularly useful.  Polkadot is a layer one blockchain with a world-wide reach.  Develop an expertise in Polkadot and you are immediately employable or even better create your own company!  Two more courses remain.

Checking in at number seven is a class focused on Fin-Tech.  Fin-Tech is an abbreviation for Financial Technology. Stop and consider all the technology associated with finance and banking and then visualize yourself at the center of that technology.  That is the point of the Fin-Tech class. 

We conclude with a crypto-currency course.  Unfortunately, the common narrative is that blockchain and crypto currency are one and the same.  They are not.  Crypto currency is just one of numerous blockchain applications.  Take this course and understand the technology behind crypto.

Time to go, but first a proverb from Malaysia, where they say:  A tiger dies leaving its stripes, a person dies leaving their name.

Until next time,

Yogi Nelson