Blockchain Report — 11/27/2018

Summary: Mike Novogratz Believes The Cryptocurrency Market Will Flip In 2019; Ohio Will Allow Businesses To Pay Their Taxes In Bitcoin; Abu Dhabi Bank Uses Blockchain To Trade Islamic Bond

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Mike Novogratz Believes The Cryptocurrency Market Will Flip In 2019

According to Toshi Times, the founder of Galaxy Digital, Mike Novogratz, spoke to Financial Times and stated that he believes the cryptocurrency market will begin to flip and go back up in 2019. The main reason that he is hopeful for this occurring is because of Bakkt. Bakkt will launch in January, and the platform is expected to allow institutional investors to get into the cryptocurrency market.

It appears that Galaxy Digital hasn’t been faring too well in this cryptocurrency market either. After listing on the Toronto Venture Exchange in August, shares of the firm have dropped 37%. Although Novogratz is bullish long-term, he says that it’s still difficult to work on a business during a bear market:

“2017 was just fun, it was almost stupid. But this year has been challenging… Staff anxiety levels go up when crypto goes down. In most traditional business, such as Goldman Sachs, you don’t worry. There’s not an existential threat out there.”

Ohio Will Allow Businesses To Pay Their Taxes In Bitcoin

According to The Verge, the state of Ohio has approved for business taxes to be paid in Bitcoin. In order to pay, businesses go to ohiocrypto.com, and they will be able to pay with Bitcoin there.

This is a massive step forward, as Ohio is the first state to allow people to pay taxes in any form of cryptocurrency. The idea was originally proposed by Ohio’s State Treasurer Josh Mandel. The FAQ section of the Ohio tax website states why Bitcoin is now being accepted:

“Treasurer Mandel believes in leveraging cutting-edge technology to provide Ohioans more options and ease while interfacing with state government. The Treasurer’s office is also working to help make Ohio a national leader in blockchain technology.”

The FAQ section also explains the various benefits that Bitcoin has when paying taxes. Some of the benefits that are listed on the website include Bitcoin having low fees, transparency, mobile options, as well as secure payments.

Abu Dhabi Bank Uses Blockchain To Trade Islamic Bond

According to Ledger Insights, Abu Dhabi’s Al Hilal Bank used the blockchain to execute a “sukuk”. A sukuk is a type of bond that does not pay interest to the lender, which makes it compliant with Islamic law.

The Al Hilal Bank issued a $500 million 5-year sukuk in September, and settled $1 million of the sukuk on the blockchain to a private investor. The cryptocurrency startup Jibrel Network was involved in completing the transaction on the blockchain.

Although several other bonds have been settled on the blockchain in Russia and Australia, this appears to be the first bond compliant with Islamic law to be settled on the blockchain. The Al Hilal Bank said:

“Al Hilal Bank is aiming to transform the sukuk market through embracing blockchain and integrating it into their infrastructure, paving the way for innovative digitized Islamic sukuk.”

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