News / Economy

    New Trading Platform for Bitcoin, Other Digital Currencies

    New Trading Platform for Bitcoin, Other Digital Currenciesi
    X
    March 13, 2014 2:23 AM
    A New York-based company and an Irish firm are partnering to take the digital currency known as Bitcoin wholesale - creating a global trading platform and network infrastructure with high-level security. VOA's Carolyn Weaver reports.
    Carolyn Weaver
    The digital currency known as bitcoin, a peer-to-peer form of encrypted payment that exists only virtually, has been clouded recently by incidents of theft and fraud. But two firms, the Ireland-domiciled Perseus Telecom and the New York company Atlas ATS, have announced plans to broaden the appeal of bitcoin and other digital currencies by offering institutional investors a global private network with top-level security.
     
    Executives at Perseus Telecom, which provides secure ultra-high-speed telecommunications and business connectivity services, and Atlas ATS, a digital currency marketplace, said that if their new platform succeeds, online currency will quickly become a valuable new way for the world’s largest investors to trade and store assets.
     
    Shawn Sloves, chief executive officer of Atlas ATS, contrasts the new platform with current trading methods, which he called “bitcoin 1.0.”
     
    “The problem before was [that it was] typically deployed on web-based infrastructure, it was very retail-focused, and it didn’t have a lot of the regulatory compliance security that institutions are accustomed to trading on,” he said. "The new platform will attract investors with the advantages of digital currency minus those drawbacks. It allows you to move money instantaneously around the world without having to deal with borders,” he said, adding that he used it recently to move a large sum of his own money from Russia to the United States.
     
    “On my own server, I was able to transfer the entire value of that on bitcoin within three minutes,” he said. “It’s global, it’s borderless; it’s also a public ledger, so it’s shared by everybody and ownership transfer is publicly stored, and shows the rights of the owner of that coin,” he said. “But we also see it from a trading perspective as a major revolution, because today, traditional asset classes like equities can take three days to settle. We can transfer security ownership instantaneously.”
     
    There are 180 digital currencies already in existence, Sloves said, with about six major ones. Bitcoin is the largest, but he said the new platform will trade others as well. He called it a “disruptive” innovation, with the same potential to remake business as did the Internet in the 1990s, by offering real-time transfers of assets both for investors and e-commerce companies - who will pay much smaller fees than those charged by current online pay services like Paypal.
     
    “We expect over the next five years at least a fivefold increase in commission dollars generated from just U.S.-dominated bitcoin,” Sloves said, further predicting that commissions would exceed $1 billion. 
     
    Andrew Kusminsky, the chief operating officer of Perseus Telecom, said his company’s wireless networks are already built within major trading venues in cities around the world.
     
    “We’ve got network assets in places like Brazil, all over Europe, all over Canada, all over Asia, and some of the most sophisticated customers are already on these networks,” he said. “Adding bitcoin and Atlas into those existing locations, tied together with our wireless infrastructure, makes perfect sense for the most sophisticated prop shops [proprietary trading groups] that care about every nanosecond being utilized across the network."
     
    And he asserted that it would be hack-proof.
     
    “You have to have the right technology partners protecting this data as though it is actual currency behind a vault inside a bank,” he said. “It’s something that should be easily protectable.”
     
    There are skeptics, however, who doubt that bitcoin is ready for primetime. Some note that anyone can set up a digital currency. What would happen to the value of bitcoins (currently valued at $650 a “coin”) if another currency gained a larger following?
     
    The Financial Regulatory Industry Regulatory Authority (FINRA), which regulates securities firms in the United States, recently issued a report addressed to individual investors that characterized bitcoin as “risky,” and “volatile,” noting that it was susceptible to fraud, theft, and hacking, and was used by some engaged in crimes such as drug dealing and money laundering. 
     
    Sloves and Kusminksy view such issues as “bitcoin 1.0” concerns, and said that large investors, like those they hope will use their platform, can only do business in compliance with federal rules. Sloves said they expect that federal financial regulators will soon step in with guidelines and rules for trading in bitcoin, too, “whether it’s the SEC (Securities and Exchange Commission) or the CFTC (Commodity Futures Trading Commission).”
     
    As for the plethora of digital currencies already existing, he said, different ones offer different advantages, and do not pose a threat to bitcoin. Even nations may establish their own digital currencies, Sloves noted.
     
    “We know that Canada has already issued its own digital currency and is trying to find a way to get it more widely adopted. There is a company in Iceland giving out digital coins to people, since currency in Iceland has been devalued to nothing, and they need a general currency across the country. So, it would make sense that governments would use it, too,” he said.

    You May Like

    Wife of IS Leader Charged in Death of US Hostage

    Suspect allegedly admitted to being responsible for American aid worker Kayla Mueller, who officials say was sexually abused and ‘owned’ by one IS member

    Year of the Monkey Could Prove Economic Balancing Act for China

    China is up against a tricky situation on the financial front, facing the need to fight capital flight while also stopping a further slide of foreign currency reserves

    Runners Attempt 26-mile South Pole Marathon in Sub-Zero Temperatures

    How alluring is running 26.2 miles at 10,000 feet when it’s minus 31 Celsius out?

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    'No Means No' Program Targets Sexual Violence in Kenyai
    X
    February 08, 2016 4:30 PM
    The organizers of an initiative to reduce and stop rape in the informal settlements around Kenya's capital say their program is having marked success. Girls are taking self-defense classes while the boys are learning how to protect the girls and respect them. Lenny Ruvaga reports from Nairobi.
    Video

    Video 'No Means No' Program Targets Sexual Violence in Kenya

    The organizers of an initiative to reduce and stop rape in the informal settlements around Kenya's capital say their program is having marked success. Girls are taking self-defense classes while the boys are learning how to protect the girls and respect them. Lenny Ruvaga reports from Nairobi.
    Video

    Video New Hampshire Voters Are Independent, Mindful of History

    Once every four years, the northeastern state of New Hampshire becomes the center of the U.S. political universe with its first-in-the-nation presidential primary. What's unusual about New Hampshire is how seriously the voters take their role and the responsibility of being among the first to weigh in on the candidates.
    Video

    Video Chocolate Lovers Get a Sweet History Lesson

    Observed in many countries around the world, Valentine’s Day is sometimes celebrated with chocolate festivals. But at a festival near Washington, the visitors experience a bit more than a sugar rush. They go on a sweet journey through history. VOA’s June Soh takes us to the festival.
    Video

    Video 'Smart' Bandages Could Heal Wounds More Quickly

    Simple bandages are usually seen as the first line of attack in healing small to moderate wounds and burns. But scientists say new synthetic materials with embedded microsensors could turn bandages into a much more valuable tool for emergency physicians. VOA’s George Putic reports.
    Video

    Video Bhutanese Refugees in New Hampshire Closely Watching Primary Election

    They fled their country and lived in refugee camps in neighboring Nepal for decades before being resettled in the northeastern U.S. state of New Hampshire -- now the focus of the U.S. presidential contest. VOA correspondent Aru Pande spoke with members of the Bhutanese community, including new American citizens, about the campaign and the strong anti-immigrant rhetoric of some of the candidates.
    Video

    Video Researchers Use 3-D Printer to Produce Transplantable Body Parts

    Human organ transplants have become fairly common around the world in the past few decades. Researchers at various universities are coordinating their efforts to find solutions -- including teams at the University of Pennsylvania and Rice University in Houston that are experimenting with a 3-D printer -- to make blood vessels and other structures for implant. As VOA’s Greg Flakus reports from Houston, they are also using these artificial body parts to seek ways of defeating cancerous tumors.
    Video

    Video Helping the Blind 'See' Great Art

    There are 285 million blind and visually impaired people in the world who are unable to enjoy visual art at a museum. One New York photographer is trying to fix this situation by making tangible copies of the world’s masterpieces. VOA correspondent Victoria Kupchinetsky was there as visually impaired people got a feel for great art. Joy Wagner narrates her report.
    Video

    Video Sanders, Clinton Battle for Young Democratic Vote

    Despite a narrow loss to former Secretary of State Hillary Clinton in last week's Iowa Democratic caucuses, Vermont Senator Bernie Sanders secured more than 80 percent of the vote among those between the ages of 18 and 29. VOA correspondent Aru Pande talks to Democrats in New Hampshire about who they are leaning towards and why in this week's primary.
    Video

    Video German Artists to Memorialize Refugees With Life Jacket Exhibit

    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video E-readers Help Ease Africa's Book Shortage

    Millions of people in Africa can't read, and there's a chronic shortage of books. A non-profit organization called Worldreader is trying to help change all that one e-reader at a time. VOA’s Deborah Block tells us about a girls' school in Nairobi, Kenya where Worldreader is making a difference.
    Video

    Video Genius Lets World Share Its Knowledge

    Inspired by crowdsourcing companies like Wikipedia, Genius allows anyone to edit anything on the web, using its web annotation tool
    Video

    Video In Philippines, Mixed Feelings About Greater US Military Presence

    In the Philippines, some who will be directly affected by a recent Supreme Court decision clearing the way for more United States troop visits are having mixed reactions.  The increased rotations come at a time when the Philippines is trying to build up its military in the face of growing maritime assertiveness from China.  From Bahile, Palawan on the coast of the South China Sea, Simone Orendain has this story.
    Video

    Video Microcephaly's Connection to Zika: Guilty Until Proven Innocent

    The Zika virus rarely causes problems for the people who get it, but it seems to be having a devastating impact on babies whose mothers are infected with Zika. VOA's Carol Pearson has more.
    Video

    Video Stunning Artworks Attract Record Crowds, Thanks to Social Media

    A new exhibit at the oldest art museum in America is shattering attendance records. Thousands of visitors are lining up to see nine giant works of art that have gotten a much-deserved shot of viral marketing. The 150-year-old Smithsonian American Art Museum has never had a response quite like this. VOA's Julie Taboh reports.

    World Currencies

    EUR
    USD
    0.9008
    JPY
    USD
    116.30
    GBP
    USD
    0.6957
    CAD
    USD
    1.3951
    INR
    USD
    68.033

    Rates may not be current.