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

New England Bears Brunt of US Blizzard

Boston, surrounding region grapple with as much as 3 feet of snow, coastal flooding; leaders in New York, spared most severe weather, criticized for being overly cautious More

China Lifts Lid on Sale of Fake Goods Online

A recent survey found nearly 60 percent of a random sample of items bought from Taobao were fake More

Upward Aims to Create Old-girls Network in Silicon Valley

Lisa Lambert, an executive with Intel Corp.'s venture-capital unit, responds to the gender-disparity debate by creating a new social organization 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.
Obama Urges Closer Economic Ties During Historic India Visiti
X
Aru Pande
January 26, 2015 9:33 PM
U.S. President Barack Obama says the United States and India must do better to capitalize on untapped potential in their economic relationship - by removing some of the roadblocks to greater trade and investment. As VOA correspondent Aru Pande reports from New Delhi, Obama spoke after participating in India’s Republic Day celebration.
Video

Video Obama Urges Closer Economic Ties During Historic India Visit

U.S. President Barack Obama says the United States and India must do better to capitalize on untapped potential in their economic relationship - by removing some of the roadblocks to greater trade and investment. As VOA correspondent Aru Pande reports from New Delhi, Obama spoke after participating in India’s Republic Day celebration.
Video

Video US, EU Threaten New Russia Sanctions Over Ukraine

U.S. President Barack Obama has blamed Russia for an attack by Ukrainian separatists that left dozens dead in the port of Mariupol and cast further doubt on the viability of last year’s cease-fire with the Kyiv government. VOA’s Michael Bowman reports from Washington.
Video

Video White House Grapples With Yemen Counterterrorism Strategy

Reports say the U.S. has carried out a drone strike on suspected militants in Yemen, the first after President Barack Obama offered reassurances the U.S. is continuing its counterterrorism operations in the country. The future of those operations has been in question following the collapse last week of Yemen’s government. VOA White House correspondent Luis Ramirez reports.
Video

Video Kerry Warns Against Violence in Nigeria Election

US Secretary of State John Kerry visited Nigeria Sunday in a show of the level of concern within the U.S. and the international community over next month’s presidential election. Chris Stein reports.
Video

Video Zoo Animals Show Their Artistic Sides

The pursuit of happiness is so important, America's founding fathers put it in the Declaration of Independence. Any zookeeper will tell you animals need enrichment, just like humans do. So painting, and even music, are part of the Smithsonian National Zoo's program to keep the animals happy. VOA’s June Soh met some animal artists at the zoo in Washington. Faith Lapidus narrates.
Video

Video Worldwide Photo Workshops Empower Youth

Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video Saudi, Yemen Developments Are Sudden Complications for Obama

The death of Saudi Arabia's King Abdullah and the collapse of Yemen’s government have cast further uncertainty on U.S. efforts to fight militants in the Middle East and also contain Iran’s influence in the region. VOA White House correspondent Luis Ramirez reports on the new complications facing the Obama administration and its Middle East policy.
Video

Video Progress, Some Areas of Disagreement in Cuba Talks

U.S. and Cuban officials are reporting progress from initial talks in Havana on re-establishing diplomatic ties. U.S. Assistant Secretary of State (for Western Hemisphere Affairs) Roberta Jacobson said while there was agreement on a broad range of issues, there also are some “profound disagreements” between Washington and Havana. VOA State Department correspondent Pam Dockins has the story.
Video

Video US, Japan Offer Lessons as Eurozone Launches Huge Stimulus

The Euro currency has fallen sharply after the European Central Bank announced a bigger-than-expected $67 billion-a-month quantitative easing program Thursday - commonly seen as a form of printing new money. Henry Ridgwell reports for VOA from London on whether the move might rescue the eurozone economy -- and what lessons have been learned from similar programs around the world.
Video

Video Nigerian Elections Pose Concern of Potential Conflict in 'Middle Belt'

Nigeria’s north-central state of Kaduna has long been the site of fighting between Muslims and Christians as well as between people of different ethnic groups. As the February elections approach, community and religious leaders are making plans they hope will keep the streets calm after results are announced. Chris Stein reports from the state capital, Kaduna.
Video

Video As Viewership Drops, Obama Puts His Message on YouTube

Ratings reports show President Obama’s State of the Union address this week drew the lowest number of viewers for this annual speech in 15 years. White House officials anticipated this, and the president has decided to take a non-traditional approach to getting his message out. VOA White House correspondent Luis Ramirez reports.
Video

Video S. Korean Businesses Want to End Trade Restrictions With North

Business leaders in South Korea are calling for President Park Geun-hye to ease trade restrictions with North Korea that were put in place in 2010 after the sinking of a South Korean warship.Pro-business groups argue that expanding trade and investment is not only good for business, it is also good for long-term regional peace and security. VOA’s Brian Padden reports.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid

World Currencies

EUR
USD
0.8893
JPY
USD
118.31
GBP
USD
0.6660
CAD
USD
1.2459
INR
USD
61.427

Rates may not be current.