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iPhone
Privacy-focused messaging app Gliph once again supports bitcoin functionality in its newest iOS release. The announcement follows Apple’s recent reversal of its ban on bitcoin apps, which meant Gliph was forced to disable bitcoin sending late last year. Now, with its latest version and the revised set of rules from Apple, Gliph is promoting itself as one of the easiest ways to both obtain and use bitcoin, integrating, as it does, two of the industry’s most popular wallets: Coinbase and Blockchain. Gliph CEO and co-founder Rob Banagale believes the combination of Apple, Coinbase and Blockchain makes his product a powerful app that will help increase the number of transactions in the bitcoin ecosystem, he told CoinDesk, adding: “Gliph is leading the way in providing solutions to take bitcoin mainstream.” Building in bitcoin Gliph is primarily a messaging app. However, unlike other options on the market today, it gives users who have linked bitcoin wallets to their accounts the ability to send bitcoin to one another. Gliph Banagale said he believes Gliph’s inclusion of bitcoin functionality provides an effortless way of transacting with the cryptocurrency. He noted: “The other [iOS] apps we’ve seen so far are locally hosted wallets. That’s great for advanced users. But managing your own private key and holding onto your own bitcoin is too overwhelming for most folks.” Every bitcoin function on Gliph is pulled from either the Coinbase or Blockchain API – including the new QR code-generating feature that has made an appearance in this new release. According to Banagale, this makes Gliph an extremely practical way of sending and receiving bitcoin, removing the need for a wallet app. However, it is worth noting that two-factor authorisation must be disabled to allow integration with the blockchain wallet, due to limitations of the API. See an overview of Gliph in the video below:
Gliph Commercial Export 5 from Gliph on Vimeo. Privacy tool Gliph’s primary purpose is as a privacy-enhancing messaging application. It provides one-to-one capabilities, group messaging and something called ‘cloaked email’, which allows users to send messages to email recipients without revealing their true identity. Banagale says that to provide advanced privacy, Gliph only temporarily stores messages on its servers, after which they are deleted. He pointed out: “We offer data impermanence – kind of a hot topic. [Some apps] will say that they are deleting stuff when they aren’t actually deleting stuff.” Another new feature in the latest version is its optional ‘profiles’. The reason Gliph is called Gliph comes from the way it enables a series of symbols – or hieroglyphs – to identify someone, rather than revealing their name. However, profiles provide the option to offer more identifying information - such as name, email address, phone number, bitcoin address, etc - should a user feel it is desirable to do so. Each item can be made public or private with a quick tap on the screen. “We also provide really strong privacy around the personal information that you put in and we’ve included that with profiles. You can more easily identify people using the services – makes it easier than before,” said Banagale. Apple appeal Bitcoin sending and receiving functions included in the iOS version of Gliph were removed in late 2013 at the behest of Apple. Subsequently, a number of other apps ended up being removed from the App Store – including the wallet apps from Coinbase and Blockchain. Some other wallet apps are now starting to return to the online store. Banagale believes that part of the reason Apple ended up revising its policies towards virtual currencies – which has led to bitcoin-related apps being accepted back into the App Store – is because Gliph appealed Apple’s decision to remove bitcoin functionality from its app. He told CoinDesk: “When we were asked to remove the bitcoin sending, I asked for clarification. And the way to do that, I was told, was to write an appeal letter.” Banagale did that, and he’s convinced that this is the reason why Apple eventually acquiesced. “I took [the appeal letter] seriously as the only real recourse that we had. When push came to shove, we just were really transparent and offering feedback instead of trying to point fingers,” he said. Gliph is currently available for iOS and Android. iPhone image via Dedi Grigoroiu / Shutterstock.com Applecloaked emailGliphmessagingprivacy
Original author: Daniel Cawrey

Banks
Banks are reluctant to work with bitcoin, that fact has been well known in the community for some time. Until now, though, few concrete reasons have been given as to why. New statements from a senior banking practitioner in Australia working in anti-money laundering (AML) and counter-terrorism financing (CTF), compliance could go some way to providing an explanation. Banks around the world, particularly in the US, have been closing down accounts of bitcoin startups and even bitcoin-accepting businesses for over a year now. Even those that do work with bitcoin businesses are reluctant to be named in the media. More conspiratorial theories say bitcoin’s destiny is to replace banks, and banks fear the competition. The real answer, however, could be the more mundane one of regulatory risk. Worldwide regulatory environment Australia’s banking and investment laws are similar to those in other Western, developed economies, so the reasons presented here are likely to be similar around the world. The Financial Action Task Force on Money Laundering (FATF/GAFI) is an intergovernmental organization started in 1989 by the G7, and now has 34 members plus several regional associates. Tasked with combating the financing of terrorist organizations, it is a key factor in AML/CTF regulation and policy setting among its members, meaning banks in those countries face similar legislative environments. A banker gives reasons The senior banking practitioner, who asked not to be named, attended a recent Bitcoin Professionals meetup in Sydney, organized by lawyer Reuben Bramanathan and entrepreneur Jason Williams of the Bitcoin Association of Australia. The banker explained the following: It is extremely risky and costly for banks to have bitcoin businesses on their books at the moment. In addition to existing know-your-customer (KYC) requirements, the banker said, banks in Australia have a “know your customer’s customer” requirement. New Customer Due Diligence rules, which started 1st June this year, impose a high standard on banks to identify their customers (including the difficult process of identifying beneficial ownership and control) and to maintain ongoing customer due diligence (CDD) and monitoring. There are additional CDD requirements for accounts concerning “politically exposed persons“, or individuals with prominent public functions and their associates who may be susceptible to corruption. Bitcoin and the definition of money The problems for bitcoin begin with its legal status as ‘money’ or otherwise. At present, the Anti-Money Laundering and Counter-Terrorism Financing Act in Australia does not include bitcoin businesses under its ‘designated services’ category. As a non-national currency, bitcoin would likely be defined as ‘e-money’ – and this is limited to “an internet-based electronic means of exchange that is backed by bullion or precious metal and is issued by a government body”. The current law was written in 2006, before bitcoin had been released. This limited definition of e-money means there can be no regulatory oversight from the Australian Transaction Reports and Analysis Centre (AUSTRAC), Australia’s primary regulator for AML/CTF issues. This, in turn, means banks must play the role of regulators themselves, creating an enormous amount of extra work as they monitor and supervise their own due diligence. More work, higher costs, bigger risks The anonymous banker explained that extra work creates extra costs and, from a commercial point of view, the profit banks make from businesses does not cover the compliance costs. Add to that the significant penalties they face if anything goes wrong, the lack of oversight increases risk levels to a point where banks consider it extremely dangerous to have a bitcoin business on their books, unless that business can show it is itself voluntarily compliant with all the AML/CTF rules. If large banks struggle to deploy these kinds of resources, bitcoin startups will too. Lawyer and digital currency specialist Amor Sexton told CoinDesk that, given all this, banks take the simpler option of just avoiding bitcoin altogether. She said: “Some, but very few, of the banks, are taking a rational and fair approach by assessing each businesses on a case-by-case basis. Others have decided that it is easier to exit all bitcoin businesses. This is a very real and urgent concern for the bitcoin industry, as access to banking is an essential requirement for any business.” The wall facing bitcoin Banks in smaller countries, like Australia, must also comply with regulations in larger ones if it maintains relationships or has subsidiaries in other countries. Non-US banks must comply with US regulations if they have customers who are US citizens or formal relationships with US businesses, all of which adds another layer of compliance – and its associated costs and risks. Although these reasons may not come as a surprise to many bitcoiners, especially those from the traditional finance industry, hearing them directly from a banking representative could help startups understand the prevailing attitude. Bitcoin businesses, still a new phenomenon in the economy, have some way to go to prove their industry is every bit as trustworthy as others, and that will take time as well as campaigning. In the meantime, industry groups like the Bitcoin Association of Australia and the newly-formed business lobby Australian Digital Currency Commerce Association (ADCCA) will be pressing the case locally, sharing their experience with associates worldwide. Image via Paul Fleet / Shutterstock AustraliaAustralia Bitcoin Associationbanking
Original author: Jon Southurst

  Hailo foundersHailo founders, with CEO Jay Bregman at centreTaxi app Hailo is “actively” looking into allowing its customers to pay with bitcoin, according to company CEO Jay Bregman. The company, which lets users hail taxis via its own app, could even allow bitcoin to be sent directly to drivers, he said in an interview with CoinDesk, a move that would set the company apart from other bitcoin-accepting businesses. To-date most merchants have chosen bitcoin payment solutions that convert bitcoin directly to fiat currency. “We have [always] sought to find independent ways to provide benefit to our drivers and our passengers. I believe strongly that bitcoin is one of these ways. Absolutely, like many other things, we actively looking into it,” said Bregman. Payment option Stressing that his comments were made in a personal capacity, he said that bitcoin could become an optional way of settling your bill with Hailo, but that it wouldn’t replace the current user-authorisation process, which requires a credit or debit card. “I don’t envisage [bitcoin] to be necessarily a primary way of people accessing the service  [...] but it would be your optional way of settlement. We would be able to take the money from your bitcoin wallet and transfer it to us, or even the driver directly.” To set up such a service, he said, Hailo would seek to connect with an existing bitcoin wallet provider instead of hosting wallets itself. The experience would be similar to paying with a credit or debit card, where the bill is settled automatically by pulling money from the customer’s account, said Bregman. This would require partnership with a bitcoin wallet service that holds their users’ private keys. Driver boost A major advantage of accepting bitcoin payments, Bregman said, was the potential to help some drivers avoid remittance fees when sending their income to family or friends abroad. “Bitcoin could provide benefit to our suppliers as well as our passengers. If you think about the way to do this, you might do it in such a way that you opened up a bitcoin wallet for your driver at the same time as connecting one for your passenger.” Drivers who then chose to receive bitcoin directly could transfer that bitcoin internationally, virtually for free, or use one of a handful of new bitcoin remittance companies, which convert into local currencies and charge far lower fees than legacy payments companies like Western Union. “Some of our drivers are spending significant amounts of their income remitting money,” said Bregman. “What if we could help them solve that problem and therefore change their cost structure by 10, 20%, that would be huge. So why wouldn’t we? That’s the real question.” Disrupting an industry As well as fierce competition from rivals like Uber, Hailo has faced opposition from London black cab drivers in recent months. The app, founded by Bregman and two other black cab drivers, previously only allowed users to hail black cabs, but has now extended its service to private hire vehicles also. In May, the company’s offices in London were vandalized. Bregman rejected the suggestion that bitcoin payments were a distraction when Hailo has more important challenges to address, saying, “I don’t think anything that could provide that substantial level of benefit to our drivers alone is a distraction.” He declined to comment on when Hailo would begin accepting bitcoin payments, but said he wasn’t concerned about beating Uber or Lyft to being the first taxi app to accept bitcoin. “We roll out things because it’s the right time and it’s right for our focus on our priorities, not just because we want to beat the other guy.” Hailopaymentsremittancestaxis
Original author: Kadhim Shubber

smartcontracts
San Francisco-based Ripple Labs, a startup focused on building payment and digital assets networks, has unveiled a comprehensive plan for the development of a new smart contract system. Called Codius, the proposed system will be programming language agnostic and will be able to work with existing monetary and contractual systems. There are a few projects in the works for building smart contract solutions that involve cryptography. But Ripple Labs‘ Codius effort is perhaps a framework that many in the cyrptocurrency space have been searching for in order to build asset structures. Stefan Thomas, Chief Technology Officer at Ripple Labs, told CoinDesk that programmable contracts in digital form will be ubiquitous someday – and that the company wants to be a steward for this technology. Thomas said: “[Smart] contract logic decides who should receive the money. It can query any internet server to do so, including crypto networks, web services, etc. Based on the decision, the contract hosts will allow a transaction sending the money to that recipient to succeed.” Smart oracles In a blog post and whitepaper on GitHub, the Ripple Labs plan for Codius is ambitious, building off of researcher Nick Szabo’s early work in programmable methods of contract law. It relies on the use of what is known as an oracle, which is an instance that can sign a cryptographic key pair if or when a condition is met, hence the concept of a “smart” contract that can execute by itself when it has proper inputs. “Oracles sign things and the signatures trigger actions in the distributed networks,” said Thomas. The Codius project calls these “smart oracles”, in the sense that they will be able to operate on an untrusted codebase. This means that there will be open access to this project for most developers since it will not require the use of a specific programming language. Thomas explained: “Compared to conventional oracles [such as for bitcoin], smart oracles don’t require you to learn how to write code for the deterministic environments. You can write regular JavaScript, or any other language that somebody has ported to Codius and treat bitcoin as if it was your database.” Smart oracles handle the sandboxing, identification and even hosting of these digital assets. As well, the system will be able to integrate with a number of different systems of value: bitcoin, Ripple’s XRP or even fiat money. The smart contract economy Ripple Labs believes an entire industry will be built around smart digital assets – just like what is happening in the cryptocurrency realm. One of the earliest business ventures besides the actual creation of smart contracts might be hosting platforms for them. “You run somebody’s code and they pay you for it. I could see hosting companies starting to add contracts offerings,” said Thomas. “Hosting VMs [virtual machines] is a very similar business model.” The bitcoin mining sector might find value in getting into the smart contract business as well. Total bitcoins over time. Source: Bitcoin WikiTotal bitcoins over time. Source: Bitcoin WikiGenerating new coins is profitable in bitcoin right now, but this may not be the case in the future for some mining operations. In addition to generating revenue for confirming transactions, miners may find that hosting smart contracts is another lucrative venture down the road. Said Thomas: “Essentially miners are performing a validation function for the network in exchange for a reward, again a very similar concept as running a Codius host and being paid for running contracts.” Legal ramifications The use of smart contracts could solve not only the antiquated problems of using paper for legal purposes. It could also make legal systems around the globe more efficient should this technology be adopted. Greg Kidd is Ripple Labs’ Chief Risk Operator, and worked at Promontory Financial Group prior to joining the company. He told CoinDesk: “We see smart contracts as a layer between the contracting parties and the legal system. Right now, if anything goes wrong with a contract, you have to go to the legal system, which is extremely slow and expensive.” Companies spend billions of dollars every year on various legal costs. Smart contracts might not be a solution for any sort of disputed situation. But Kidd, who previously worked with the Board of Governors at the Federal Reserve, thinks that the technology has promise to improve the broader legal system. Contract enforcement can cost time and money. Source: Doingbusiness.orgTraditional contract enforcement costs time and money. Source: Doingbusiness.org.“If you can write smart contracts that handle 50% of the possible ways that a given contract can go wrong, you can save 50% of the expected legal fees from entering the contract,” he said. Development continues There are already a few different cryptographic smart contract projects in various stages of development. One, called Ethereum, is still in the early developmental stages. The same goes for colored coins, which act as a token on top of bitcoin. That effort has seen little industry traction so far, but a company called Coinprism is still trying to advocate its use. “I’m waiting for an actual implementation. We are very excited about the opportunities arising out of smart contracts and other block chain technologies, but it’s early days,” said Fabio Federici, whose startup Coinalytics analyzes block chain data for its clients.  Nevertheless, the Codius white paper and its proposed use of Google’s Native Client to execute a small and secure base of code is novel. The applications Ripple Labs envisions for the Codius project are numerous. The list include tools that cover voting, escrow, derivatives, auctions, property and the equities markets. In essence, smart contracts have the capability of innovating lawful agreements in a way similar to how cryptocurrency is changing existing concepts of money and value exchange. Kidd, the Ripple Labs Chief Risk Officer, added: “We’re interested in making antiquated systems such as payments, and legal vastly more efficient and democratic using distributed technology. Codius improves and opens access to the process of creating and executing legal agreements, so lawyers, judges, etc. can focus their energies on more complex cases.” To learn more about Ripple labs, its architecture and its role in digital currency ecosystem, read our most recent report on the company here. Technology and human image via Shutterstock Codiuscontract enforcementNative ClientNick Szaboprogrammable contractssmart contracts
Original author: Daniel Cawrey

airbaltic Latvian airline airBaltic may be the first to accept payments in bitcoin, according to a Twitter post issued by the company. Although no formal press release was made, airBaltic’s website quietly began displaying the offering on 17th July. The company later acknowledged the decision when Twitter user Club Alpaca asked the company to confirm the news today. A company representative in Riga said that the bitcoin payment option is offered for basic class fares, excluding China, Indonesia, India, Iceland, Jordan, Japan, Lebanon, Malaysia, Russia, Taiwan and Vietnam. Other travel services companies have also begun accepting bitcoin this year, although airBaltic may be the first airline. Billionaire entrepreneur Richard Branson’s UK-based air carrier Virgin Atlantic has not begun accepting bitcoin, his space flight venture Virgin Galactic has. Just two months later six or seven people were confirmed for a space flight, paid for with bitcoin. Customers question payment terms Customers that choose to pay for their travel services in bitcoin still have to pay the €5.99 transaction fee, a decision one other Tweeter quickly challenged. @ClubAlpaca Hello! Yes, that is correct. pic.twitter.com/kxJoOhpX21 — airBaltic (@airBaltic) July 21, 2014 @Go3Team Hello! This fee is applied to cover the costs associated with processing and handling the booking, not the Bitcoin itself. — airBaltic (@airBaltic) July 21, 2014 The airline held that the fee was not for processing the bitcoin itself, but for separate handling charges. Bitcoin gains ground in travel sector Last month travel giant Expedia began accepting bitcoin for hotel bookings, but not for flight reservations so far. The company did not close specific numbers, but recently told CoinDesk that the response has been better than anticipated. In November, CheapAir began accepting bitcoin for flight bookings, and it has since expanded its services to 200,000 partner hotels and railway offerings. The company recently announced it has topped $1.5m in total bitcoin sales. CoinDesk has reached out to airBaltic for more details, but has not received an immediate response. Latvia image via Shutterstock / Airplane image via Wikipedia Last month travel giant Expedia began accepting bitcoin for hotel bookings, but not for flight reservations so far. The company did not close specific numbers, but recently told CoinDesk that it had surpassed its estimated revenue, so far. In November CheapAir began accepting bitcoin for flight bookings and have since expanded its services to 200,000 partner hotels and railway offerings. The company recently announced it has topped $1.5m in total bitcoin sales. lifestylemerchantsTravel
Original author: Tanaya Macheel

stripebtcpayments
San Francicso-based Stripe, a company that offers API-based payment systems, has published a blog post examining how it sees the market for bitcoin developing. Titled “Bitcoin: The Stripe Perspective”, the article examines what it may take for mainstream consumer adoption to ignite for digital currency. The blog explores bitcoin’s possible use as a tool against high-inflation currencies, among other topics that relate to the concept of global payments infrastructure. Beyond that, however, consumer protections remain a major unresolved issue and a barrier for bitcoin. Stripe is no stranger to digital currency. Back in March, Stripe announced that it would be testing bitcoin payment support. To date, the company has raised over $120m from venture capital firms such as Andreessen Horowitz, Khosla Ventures and Sequoia Capital. The post, written by Stripe CTO Greg Brockman, whom CoinDesk recently interviewed, states in the introduction: “Many people have remarked that bitcoin resembles the Internet in the early 90s. So it’s an open question: what might a bitcoin that’s useful for the mainstream look like?” Yet despite potential obstacles to broader adoption, Stripe posits that digital currency and the underlying technology could be a valuable tool in solving some of the key challenges in payments today. Purpose enables adoption Brockman’s post indicates that, for the time being, most people in countries with stong fiat currencies have little incentive to switch to bitcoin. Yet by identifying novel – and practical – use cases for bitcoin, the technology may catch on throughout the world. “Consumers mostly want a safe place to hold their savings, and the existing bank account insurances and consumer protections [in stable currency countries] have set a high bar,” he wrote. However, as Stripe suggests, there is a huge upside for countries that have inflationary problems with their currencies. Examples of high-inflation economies in 2014 include Argentina, Venezuela and Iran. Venezuela has a long history of high inflation. Source: ForbesVenezuela has a long history of high inflation. Source: ForbesCitizens of countries that must use high-inflation currencies have an incentive to find more stable monies. Stripe sees bitcoin as a possible tool for a situation like this, owing to the digital currency’s international profile. Despite bitcoin’s reputation for being volatile, some fiat currencies like the Argentine peso are even more erratic than BTC. These fluctuations can hurt long-term usage for unstable currencies – and boost the potential value of using bitcoin. As well, digital currency can help dissolve antiquated border and capital control issues related to money transfers. According to Stripe, bitcoin presents a chance to rejuvenate the world’s payments infrastructure. The post notes: “Traditional payment systems look a lot like computer networks before the Internet. Cryptocurrencies have given us a real opportunity to solve these problems.” Access via gateways Stripe believes that the best way for people to be introduced to bitcoin is through gateways that specialize in digital currency. Gateways, in theory, would be operated by financial companies such as payment processors. They would be responsible for handling some of the consumer protection and legal issues related to bitcoin. Diagram of gateways connecting to bitcoin. Source: StripeDiagram of gateways connecting to bitcoin. Source: StripeThis idea of gateways is similar to a system currently in use by Ripple Labs. That company’s plan is to allow third parties like banks to connect to its payments and smart assets protocol with what it also calls gateways. The key difference between bitcoin and Ripple Labs is that the latter supports a wide number of currencies; bitcoin is the only option on its network. But the post cautions that gateways won’t likely prove to be the real igniter of digital currency. Stripe noted that Ripple Labs and another alternative called Open Transactions have “failed to win the necessary user support” that would lead to broader adoption. Bitcoin in the broader market Comparing bitcoin to current payment processors such as Visa, Stripe believes digital currency offers a worthwhile way to move money and a system for validation built upon a set of rules. The combination of cryptography and decentralized transaction certification infrastructure represents a novel concept that has not yet been integrated with major payment networks. But, in the end, it is Stripe’s opinion that bitcoin fundamentally lacks the proper consumer protections that would make it a viable competitor to companies like Visa. The post states: “Unless we solve decentralized reputation, the bitcoin ecosystem will see the emergence of a few centralized consumer ‘trust providers’.” Payments image via Shutterstock Argentinaconsumer protectioncurrenciesgatewaysinflationIranpaymentsRipple LabsstripeVenezuelavisa
Original author: Daniel Cawrey

dell
Texas-based computer technology giant Dell became the largest merchant to join the bitcoin ecosystem late last week when it announced a partnership with Coinbase and launched a 10% discount for bitcoin customers. The news was greeted with applause by the bitcoin ecosystem and proliferated widely through the mainstream media given Dell’s strong brand recognition and status as an early success story from the PC computing era. Now, speaking to CoinDesk in a new interview, Paul Walsh, CIO of Dell Commerce Services, has provided more insight into his company’s decision to begin accepting bitcoin payments, a first of what he acknowledged could become his company’s more extensive involvement in the space. Perhaps most notably, Walsh indicated that Dell doesn’t consider itself to be an early adopter of bitcoin. Rather, he suggested that Dell believes merchants are already broadly moving toward accepting digital currency as a payment option, and that the decision simply finds Dell keeping pace with the times and the needs of its existing customers. Walsh told CoinDesk: “We’ve got to ensure we know where the market is going and what’s happening everywhere. We have regular communication with our customers, we understand exactly what they’re looking for [and] where they may have friction in their path, we look to see if there are any big innovations that would benefit our customers.” Dell became the largest public company to go private last year when original founder Michael Dell closed a $25bn deal to regain its leadership. According to the company’s last public filing, it earned $56.9bn in 2013, with the largest gain in revenue increase in its enterprise solutions and services business. Serving customers better For now, Walsh said the company’s main goal for its bitcoin program will be to remove friction during the customer purchasing process and make it easier for its existing customer base to transact with Dell. Walsh suggested that Dell believes many of its existing customers already use bitcoin, and that the partnership with Coinbase simply allows the company to better serve these customers. “I think that customer feedback was one of the reasons we started doing it. That to me says that our existing customers have been using bitcoin, so we want to make sure we’re satisfying those,” Walsh said. His comments also suggest that Dell believes bitcoin to be a payment method on par with other, more widely used tools, as he added: “We provide whatever payment offerings you need, whether it be your credit card or PayPal and now with bitcoin, we’re just trying to answer to customer demand.” Extending services globally Embracing a similar model as online travel booking giant Expedia and electronics retailer TigerDirect, Walsh confirmed Dell will initially trial bitcoin payments with only US-based customers. However, Walsh suggested that his company is open to expanding the program, though he did not provide details about any proposals that may be in the works or what metrics Dell will evaluate before coming to this decision. Walsh explained: “We wanted to start up with the US base, and from that, we’ll see where we wanted to move next. The big thing here is being able to be a lot more agile in terms of addressing our customers’ needs.” Emphasizing innovation Walsh also framed the decision as one that would help return Dell to its roots as an innovator in technology. Throughout the conversation, Walsh emphasized how it is prioritizing innovation, and how bitcoin simply provided the latest way that Dell can show its dedication. Walsh said: “The first thing to provide a payment method for our business and bitcoin is a great example of how we can show some innovation. We’re always going to be looking for new, innovative ways to ensure we’re driving the right experience.” In recent years, the company has come under fire in the mainstream financial press for failing to adjust to the decline of PC sales that has resulted from increased smartphone use. Possibilities ahead While Walsh gave the impression that Dell is primarily focused on bitcoin as a payments play, the company may be uniquely positioned to exploit other potential market opportunities in the space. For example, Dell has a professional Data Center Solutions team currently working on cloud computing and optimizing hyperscale data centers, tools that could no doubt position Dell to enter or serve the now booming industrial bitcoin mining space. Still, while Dell could have an evident competitive advantage in the space, Walsh suggested the idea is not currently on the company’s radar, saying: “We’re familiar with [bitcoin mining]. It’s not something we’re looking at at this time, but we are familiar with it.” Notably, Dell recently decided to shelve plans to build additional data centers in Europe, choosing instead to focus on data center management. The company had earlier planned to purchase $1bn worth of data centers as recently as 2011. Image via TechnoBuffalo Delle-commercemerchants
Original author: Pete Rizzo

shutterstock_183097202
Shanghai-based bitcoin and litecoin exchange BTC China has announced the launch of USD and HKD deposits and withdrawals, becoming the latest China-based exchange to publicly extend its services to the international community. The news follows Beijing-based OKCoin’s announcement at The North American Bitcoin Conference (TNABC) that it would be adding USD deposits this week as part of a broad push to court an international market that, for now, remains absent of large, professional US exchanges. Addressing the announcement, BTC China CEO and Bitcoin Foundation board member Bobby Lee framed the product as a way for the company to give back to its users and the community, saying: “As a global company, BTC China is pleased to accommodate the demands of our users, both domestic and international.” The launch was preceded by an invite-only testing period, during which BTC China says it “collected several million USD worth of deposits”. The first bitcoin exchange in China, BTC China recently also expanded its product offerings for international users, launching a mobile bitcoin wallet in June. Updated account offerings BTC China indicated that the move was its first step in what could be broader support for additional currencies, as exchange users had been previously limited to deposits and withdrawals in Chinese yuan. As such, the company expects the new offerings to resonate in its home market. Current users who want to take advantage of the newly supported currencies will need to open an international account in addition to a domestic account, the company said. Hong Kong emphasis increases The announcement also finds BTC China leveraging its position in Asia to work around the restrictions imposed in China. The company says all orders on the service will be processed via its registered Hong Kong affiliate, as Hong Kong has to date been more accommodating to digital currency businesses due to its status as a special administrative region. The Chinese bitcoin market has faced continued uncertainty in recent months, following statements from the country’s central bank, the People’s Bank of China, that aimed to separate the companies from the traditional financial services sector. Owing to the country’s unique regulatory structure, formal guidance such as the kind proposed in New York may not ever be drafted to ease uncertainty. However, representatives from the central bank have stated publicly that they do not seek to ban digital currency altogether. China courts US market The announcement is notable given the recent emphasis bitcoin’s China-based businesses are placing on the international market. Speaking to CoinDesk at The North American Bitcoin Conference (TNABC), representatives from both OKCoin and Huobi suggested that given that restrictions of China’s market, the country has emphasized bitcoin’s use as a financial instrument rather than a payment method, and that because of this demand, they are uniquely suited to extend services internationally. Further, OKCoin CTO Changpeng Zhao stated at TNABC that the company aims to provide 24-hour phone support to international customers, though it stopped short of openly encouraging US consumer use of its platform, saying that it is not registering for a money transmission licence in the US at this time. BTC China has not commented on whether it will offer this guidance. Image via BTC China BTC ChinaChinaHong Kong
Original author: Pete Rizzo
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