July 31, 2015- In This Issue:


Wall Street's Former Queen Of Commodities Just Made Her Pitch For Why Bitcoin Is The Future

Bitcoin technology could reshape the way financial markets operate.


That is according to Blythe Master, the chief executive of Digital Asset Holdings, and one of the biggest names in the business.


Speaking Tuesday at SourceMedia's Convene conference in midtown Manhattan, Masters said: "The potential addressable markets for these types of technologies are gigantic." 


Everything from stock to bonds and derivatives could be exchanged and paid for in the same way the cryptocurrency community is executing bitcoin transactions, Masters said. 


Still, it is early on. Masters compared where Bitcoin and cryptocurrency are now in terms of their development to early 1990s Internet. 


"In reality, the world is not there yet," Masters said. She said the industry would have to address regulatory hurdles as it confronts issues like authentication and security in coming years. 


Masters was one of a group of JPMorgan executives who helped create the market for credit default swaps in the 1990s, and later went to head its global commodities division.

CoinMate Partners With MoneyPolo To Enable Cash Deposit In 150 Countries

Earlier this week, the UK based Bitcoin startup CoinMate announced that its customers can now use the service to make cash purchases in over 150 countries worldwide.


CoinMate has been looking for a way to eliminate the need for using traditional banking channels to buy or sell Bitcoins. "Most Bitcoin markets work with bank deposits and bank withdrawals, however, it is estimated that 40% of the world's adult population have no bank account and an even greater share is limited to local transfers," said Roman Valihrach, the CEO of CoinMate's parent company Confirmo Ltd, while speaking to the CoinTelegraph.


As CoinMate was looking for a way to accept direct cash deposits, it later found an international money and a cash transfer provider, MoneyPolo. MoneyPolo is based in London and has a wide ranging financial network of more than 400,000 partner outlets in the world.


On July 23, CoinMate revealed on their official blog that it has partnered with one of most renowned cash transfer service providers in the United Kingdom, MoneyPolo. MoneyPolo is a UK regulated payment provider that allows cash deposit service in around 150 countries. It is the partnership with MoneyPolo enabled CoinMate to accept cash deposit from its users.


Commenting on the partnership with MoneyPolo, Roman Valihrach mentioned that "MoneyPolo account allows cost effective cash deposits and cash withdrawals in more than 100 countries of the world through their partnership networks. That's why we decided to integrate MoneyPolo into CoinMate."


CoinMate users can now open a MoneyPolo account, load the funds into their virtual account via any of the 400,000 partner outlets and can make instant deposit to their CoinMate Bitcoin wallet, without incurring any additional charges. CoinMate Users can also make an instant withdrawal via MoneyPolo, which makes using Bitcoin as convenient as cash.

Bitcoin Payments Move Towards The Mainstream With New Payment Partnership

We reported recently on a new system that reduces the risk for merchants in accepting bitcoin payments.


Now there's more evidence that the digital currency is going mainstream with the announcement of a partnership between enterprise bitcoin payments processor, Bitnet and payments platform provider Zooz that will enable merchants to accept bitcoin as a payment method on the Zooz payment platform.

"We have seen the growing interest in digital currencies among our customer base and are excited to partner with Bitnet to add bitcoin to our service offering," says Nathan Jackson, VP Europe at Zooz. "We selected Bitnet as a partner due to their advanced platform, integrity of its team, in addition to demand from some of our key customers for bitcoin payments".


Zooz customers will be able to add bitcoin as an option to their checkout pages quickly and easily. Bitnet will enable Zooz's customers to accept payments in bitcoin without being exposed to the risk of fraudulent transactions or any volatility in the price of bitcoin.

Wall Street Secrets Targeted By Bitcoin Technology Pioneers


Bitcoin isn't going to leave Wall Street or the nation's big banks in a smoking post-apocalyptic heap of destruction, in spite of what some early cryptocurrency supporters may have hoped. But that doesn't mean the blockchain technology behind bitcoin won't still lift the veil of secrecy over many financial transactions, and ultimately expose the sector's once-hidden processes to anyone who cares to look.


A crop of new companies are popping up on Wall Street to do exactly that. Unlike firms built around bitcoin these new market disruptors are using the cryptocurrency's underlying technology - a decentralized ledger known as a blockchain - to work with stores of value other than currency. The stores of value traded on Wall Street, in hedgefunds, and on some of the largest stock exchanges in the world.


But there's also a great risk that the average person, who potentially has the most to gain from this technology, is already being left behind. While hundreds of million of dollars have been invested in blockchain startups in the last year alone, by the very nature of venture capital, that money is largely going toward startups run by people who already know how the technology works, at least for now.


US Government Funds $3 Million Cryptocurrency Research Initiative 

Three American universities are set to conduct wide-ranging research on cryptocurrencies using roughly $3m in grant funding from the National Science Foundation, a US government agency that supports and funds scientific research.


Cornell, the University of Maryland and the University of California Berkeley will focus on developing new cryptocurrency systems that, according to principal investigator Elaine Shi, will address "pain points" attributed to bitcoin and other existing networks.


The Initiative for Cryptocurrency and Contracts (IC3) will also involve Cornell researcher Emin Gun Sirer; Dawn Song from UC Berkeley; and Jonathan Katz, David van Horn and Michael Hicks from the University of Maryland. The funding itself will be used to support the researchers involved with the project.


According to Shi, the growing ecosystem of startups focusing on digital currency research and rising interest among a broad range of parties necessitates "a rigorous science for cryptocurrencies".

Fintech Is Growing Rapidly

Investments into FinTech startups have recently boosted, growing from just over $3 billion in 2013 to over $12 billion in 2014. The growth of capital being invested in FinTech startups determines how technology and the Internet are radically changing the nature of money and financial services.


Remember that even Thomas Watson of IBM said at one time that the world would never need more than five computers, at most. Over the next few years money will go from paper and plastic to zeros and ones of computer code. It is likely that in one generation from now, most customers and investors won't handle physical money, checks or cards at all.


As money becomes increasingly stored as digital data and moves on mobile devices, it will flow fluidly, and at a far lower cost from person to person; from customer to vendor; and from investor to business.


As this happens, the traditional revenue streams big banks and brokers have enjoyed monopolistic control over will be challenged since the banking technology they have charged customers to use is rebuilt and improved by FinTech entrepreneurs and simply downloaded to their phones.