Blockchain Report — 11/8/2018

Summary: China’s Central Bank Says Neither Cryptocurrency Nor Blockchain Is A Threat To The Financial System; Coinbase CTO Believes Cryptocurrency Is Entering The Tech Mainstream; Turkish Criminals Steal $80,000 Worth Of Bitcoin Using Sim Swapping

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China’s Central Bank Says Neither Cryptocurrency Nor Blockchain Is A Threat To The Financial System

According to Technode, China’s central bank just recently released a research paper called “What blockchain can and cannot do” that states that neither blockchain technology nor cryptocurrencies are a threat to the global financial ecosystem. However, the paper also emphasized that better government oversight in the technology is necessary moving forward. The research paper concludes by stating:

“So far, there has been no technology innovation that could overwhelm the modern financial system, and blockchain will not be an exception… Cryptocurrencies lack value and credibility granted by sovereignty, therefore [they] can not jeopardize or replace legal currencies.”

Furthermore, the report explained several blockchain concepts including “consensus”, “trustless”, and “tokens”, as well as governance and security. One interesting aspect to note about the research paper is that the paper states that its content is based only on researchers’ academic opinions and was not the policy preference of the central bank.

Coinbase CTO Believes Cryptocurrency Is Entering The Tech Mainstream

According to CCN, the CTO of Coinbase Balaji Srinivasan stated on Twitter that he thinks it’s becoming clear that cryptocurrency is entering the tech mainstream. He tweeted:

“Sundar Pichai & Sergey Brin’s sons are both mining crypto; Facebook is doing blockchain; Square open sourced some nice cold storage code; Microsoft, Amazon, Google Cloud all have blockchain efforts; crypto is entering the tech mainstream.”

Sundar Pichai is the CEO of Google, and the reference to Pichai in his tweet is a reference to comments Pichai made earlier this week at a conference about how his son understood more about cryptocurrency than he did. Pichai said:

“Last week I was at dinner with my son, and I was talking about something about bitcoin and my son clarified what I was talking about was ethereum, which is slightly different. He’s 11 years old, and he told me he’s mining it. I had [to] explain to him how paper money actually works. I realized he understood ethereum better than how paper money works. I had to talk to him about the banking system, the importance of it. It was a good conversation.”

Furthermore, Fidelity which manages more than $7 trillion in assets

Turkish Criminals Steal $80,000 Worth Of Bitcoin Using Sim Swapping

According to Bitcoin Exchange Guide, the Turkish law enforcement agency has arrested 11 individuals who stole $80,000 worth of Bitcoin using a practice known as “Sim swapping”.

The criminals were able to do this by creating fake ID’s to impersonate the identities of other cryptocurrency holders. Using the fake identities, they were able to then persuade phone dealers that their phone devices had been stolen and asked for new sim cards.

After this, the criminals were able to cancel the cryptocurrency owner’s real sim card and reset passwords that were protected through two-factor authentication (2FA).

As a result of these efforts, the hackers were able to steal 437,000 Lira or approximately $80,000 USD. Turkish authorities captured the criminals using their IP addresses, and upon their arrest they found a variety of illegal items including a gun, 18 smartphones, 20 flash memory drives, 5 laptops, 3 disks, and two fake driver licenses.

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