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

Sydney Hostage-taker Failed to Manipulate Social Media

Gunman forced captives to use personal Facebook, YouTube accounts to issue his demands; online community helped flag messages, urged others not to share them More

UN Seeks $8.4 Billion to Help War-Hit Syrians

Effort aimed at helping Syrians displaced within their own country and those who've fled to neighboring ones More

Who Are the Pakistani Taliban?

It's an umbrella group of militant organizations whose objective is enforcement of Sharia in Pakistan 'whether through peace or war' More

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.
Will Pakistan School Shooting Galvanize Pakistan Against Extremism?i
X
Ayesha Tanzeem
December 17, 2014 11:54 AM
The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video Will Pakistan School Shooting Galvanize Pakistan Against Extremism?

The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video Turkey's Authoritarianism Dismays Western Allies

The Turkish government has been defiant in the face of criticism at home and abroad for its raids targeting opposition media. The European Union on Monday expressed dismay after President Recep Tayyip Erdogan lashed out at Brussels for criticizing his government's action. Turkey's bid to be considered for EU membership has been on hold while critics accuse the NATO ally of increasingly authoritarian rule. Zlatica Hoke reports.
Video

Video US-China Year in Review: Hong Kong to Climate Change

The United States is pushing for a code of conduct to resolve territorial disputes in the South China Sea as it works to improve commercial ties with Beijing. VOA State Department correspondent Scott Stearns reports on a year of U.S. policy toward China from Hong Kong to climate change.
Video

Video Japanese Leader’s Election Win Raises Potential for Conflict with Neighbors

Japan’s Prime Minister Shinzo Abe and his allies easily won a two-thirds majority in parliament Sunday, even though the country has slipped into recession under his conservative policies. VOA’s Brian Padden reports from Seoul, that the prime minister’s victory will empower him to continue economic reforms but also pursue a nationalist agenda that will likely increase tensions with Japan’s neighbors.
Video

Video Nuba Mountain Families Hide in Caves to Escape Aerial Bombings

Despite ongoing peace talks between Sudan's government and the rebel Sudan People’s Liberation Movement-North, or SPLM-N, daily aerial attacks continue in South Kordofan province’s Nuba Mountains. Adam Bailes was there and reports for VOA that government forces are targeting civilian areas, rather than military positions, with their daily bombardments.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8033
JPY
USD
117.19
GBP
USD
0.6372
CAD
USD
1.1634
INR
USD
63.622

Rates may not be current.