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Bitcoin [BTC] accumulation by users is risky business, claims CEO of Atlantic Financial Blockchain Labs

Biraajmaan Tamuly



Source: Pixabay

Since the introduction of cryptocurrencies in the global financial landscape, most users and people across sectors are split between the importance of central banks, and the idea of decentralized networks.

Following the fact that cryptos recorded major growth over the past few years, institutions like JP Morgan and Facebook have also entertained the idea of developing their own cryptocurrencies to enter the blockchain ecosystem.

Anthony Pompliano, a major Bitcoin proponent who constantly promotes the cryptocurrency ecosystem, made the news after he claimed that banks could soon be replaced.

Source: Twitter

However, Bruce Fenton, CEO of Atlantic Financial Blockchain Labs, begged to differ. He tweeted that the idea of “being your own bank” was dangerous, while stating that banks were targeted from an economic standpoint.

He said,

“In my career I’ve handled billions of dollars & never worried about theft or personal risk. With a tiny fraction of that in crypto you are a huge target. That’s a risk I won’t take.”

Fenton stressed that he was not completely “pro-bank.” However, people had been depending on third-party custodians for a long period of time now and it was not going to change overnight, he said.

Additionally, Fenton stated that it would be a “bigger problem” if a large number of people started holding Bitcoin, tagging themselves as targets. He highlighted the rise cyber criminal activities to make this point.

The European Central Bank recently echoed the same line of thought regarding crypto-assets and tweeted,

Crypto-assets like #bitcoin are increasingly popular but are volatile and speculative, and they are not currencies. New technologies like #blockchain enabled their emergence.”

However, Twitter user @BrianLockhart responded in favor of Bitcoin and stated,

“I’m worried about Fidelity [or any custodian] freezing an account or denying me access to my assets for whatever reason. I’m not a criminal, but sometimes banks do funny things. Bitcoin offers me the ability to eliminate that risk entirely.”

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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.


ErisX goes all hands on deck to launch a Bitcoin Futures market




ErisX goes all-hands on deck to launch a Bitcoin Futures market
Source: Unsplash

ErisX’s CSO, Matt Trudeau, detailed the company’s four important plans for the future, which includes launching a spot market, to secure a Bit License, DCO, and to launch a futures market.

ErisX currently has a DCM contract, which is a Derivative Contract Market that allows ErisX to run a CFTC-regulated futures exchange. However, ErisX aims to get a DCO [Derivatives Organization], which will effectively allow it to run a CFTC-regulated clearinghouse. A clearinghouse would mean that ErisX can take control of the custody of the assets and clear and settled trades.

The CSO explained the benefit of this, stating,

“There is some efficiency for firms like producers [like mining companies]; if they need to hedge their inventory or need liquidity on a spot market, they could do that conveniently on a single platform. “

Trudeau added that from the “post-trade standpoint” and “the collateral management standpoint,” ErisX would have cash, crypto, and the futures, all stored in their clearinghouse. This would boost efficiency since it would be available for all customers under a single platform. The CSO added,

“… so there is some efficiency in terms of managing collateral, if you don’t have assets on  multiple platforms, it can all be in our clearinghouse.”

Apart from the aforementioned plans, Trudeau added that the crypto-industry needs to mature more and that ErisX plans to make a significant contribution to that. He added,

“The market is professionalizing and we think that in terms of what institutions are expecting from a trading/custody experience, we will bring some of the solutions to the market and that’s really the foundational pieces that they are looking in order to build their businesses on top of us.”

Apart from ErisX, LedgerX has also received a go-sign from the CFTC to settle Bitcoin Futures in Bitcoins. Other exchanges include Intercontinental Exchange’s Bakkt and Seed CX.

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