Sovereign State Cryptocurrency Announced & MUFG to Launch Million TPS Blockchain
A tough time overnight for the cryptocurrency markets - Bitcoin fell $440 from $8266 to $7826, Ethereum also down $74 from $685 to $611 and the global cryptocurrency market cap sinking by $31 billion from $374 billion to just under $343 billion. Most top altcoins also suffering as a result overall. As yet, no obvious reasons are apparent for the downward trend over the last 24 hours at all, not even from the usual old-money FUD merchants. If anything, the news streams on the whole reflect relatively positive news and events for the sector.
The Marshall Islands have reportedly signed a bill to legalise its single sovereign currency as a cryptocurrency which technically makes it the nation’s legal tender. In theory, because the Marshall Islands is a sovereign state and UN member, setting cryptocurrency as the legal tender could force banks and financial institutions (such as VISA et-al) to accept and process it – whether they like it or not. The announcement was covered by Ran Neuner on CNBC Africa and posted images from the bill covering the basic details:
If a sovereign nation, not under sanctions, part of the UN has a legal tender in their country, the banks must support it. Here are some docs showing that Marshall Islands meets all criteria and has signed a bill in parliament creating the world's first sovereign crypto currency pic.twitter.com/Cf4eaJuODT— Ran NeuNer (@cryptomanran) May 22, 2018
Although technically this will be the first truly sovereign state cryptocurrency and subsequently could be seen as the first cryptocurrency that can be deemed to be “money” from a global standpoint. This of course only once the currency itself has been created and distributed – further details will no doubt follow rapidly as they become available. On the whole a very positive step for the industry generally, however, until the new currency rolls out and demonstrates liquidity and so on and provided there is no major political backlash over the move – cautious optimism is in order.
Japans largest bank, Mitsubishi UFJ Financial Group (MUFG) have announced plans to launch a blockchain capable of processing 1 million transactions per second (TPS) in conjunction with partner company on the project Akami. According to a press release the platform has been tested under real world conditions and proven capable of processing individual transactions in just 2 seconds at the 1 million TPS rate – with potential to scale up processing to handle 10 million TPS. When you take into account the current Bitcoin blockchain maximum threshold is 7 TPS, Ethereum slightly faster at 20 TPS, processing a million TPS is a significant jump – especially when taking into account the likes of VISA, who have long relied on their claimed processing power of 24,000 TPS as the primary reason pass off blockchain technology as unsuitable for the financial industry – chances are there could be a large amount of “egg on face” as it were for executives at VISA.
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Created: Wednesday, May 23, 2018
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