This Week in ESG and Impact Investing

Bitcoin and Blockchain Bitcoin is a digital currency that operates as a decentralized authority. This means it is not government operated as other currencies, like the US dollar. Bitcoin is kept in check by blockchain, a public “ledger” that keeps records of all transactions. Bitcoin mining in the simplest of terms is people searching through transactions, verifying them and being rewarded with bitcoin for it. Since the launch of bitcoin, it has inspired many cryptocurrencies like ethereum, dogecoin, NFTs, and even virtual real estate. Stability of Bitcoin An important detail about Bitcoin is that it is backed only by those who partake in it. As opposed to the US dollar, which is backed by the government, bitcoin is backed by nothing nor is the conversion to USD 1 to 1. Other cryptos known as “stable coins” have real monetary backings. Bitcoin is fully digital and until it can become liquid, which would go against what it is as a cryptocurrency, it will not become stable. El Salvador a

 

The Federal Reserve Board announced that the Federal Reserve Banks will develop a new round-the-clock real-time payment and settlement service, called the FedNow℠ Service, to support faster payments in the United States. This is a direct response to the threat posed by digital currencies and blockchain. According to one Fed official, "Last summer, the U.S. Treasury recommended that 'the Federal Reserve move quickly to facilitate a faster retail payments system, such as through the development of a real-time settlement service, that would also allow for more efficient and ubiquitous access to innovative payment capabilities.'” Sounds like blockchain to us, thus, we expect this new system to be blockchain enabled. (For more on blockchain, see: What is Bitcoin? How does it relate to blockchain? Henry Zhang, Creative Investment Research Impact Investing Intern. University of Toronto.  Online at:  https://creativeinvest.com/crypto/bitcoinfaq.html ) As we noted in our pa

RSVP:  https://www.gbaglobal.org/event/symposium-the-future-of-money-governance-the-law/

Facebook’s recently announced cryptocurrency pilot, Libra, claims it will “transform the global economy.” The company hopes that anyone would be able to send Libra through platforms like Facebook messenger and WhatsApp to act as an intermediary for transferring traditional currencies. The ultimate goal is to have this currency accepted as a (general) form of payment. And other financial services will be built on top of its blockchain-based network, called the Libra Blockchain, a “proof of authority" permissioned blockchain system. See:  https://www.americanbanker.com/opinion/regulating-libras-a-waste-of-time

The Blockchain, Cryptocurrency and Africa panel discussion was hosted on April 10th at the African Union Representational Mission, Washington D.C. The discussion aimed to introduce blockchain and cryptocurrency to the Diaspora and African delegates in town for the Spring Meetings of the World Bank and the IMF. During the discussion, issues including defining what is blockchain and cryptocurrency, how blockchain changes the nature of money , a forecast of the development of blockchain and cryptocurrency in Africa, the impact of government regulations, current barriers to the use of these technologies and many other issues were brought up. Cryptocurrency is internet-based money not bound by geography; transactions are stored in a database called a blockchain , a group of connected computers that record transactions in a ledger in real time. Many experts say the conditions on the African continent are great for cryptocurrency. Interest in cryptocurrency in Africa keeps incre

           The discussion the Government Blockchain Association hosted on March 30th was the first in a yearlong series the group is hosting on the future of money. The 90 GBA chapters around the world will be hosting similar discussions leading up to a conference at the end of 2019 where the discussions will be compiled and presented. Additionally, the GBA Working Groups that analyze a large number of Blockchain related topics will develop position papers that will be published in The Government Blockchain Association’s annual report on the Future of Money, Governance & Law. The goal of these panels and working groups is to ask, and attempt to answer, some of the questions that governments around the world must begin to address in relation to how blockchain will affect the future of money, governance & law. The first panel that was hosted at Georgetown University was an introduction to future GBA events globally. Gerald Dache, the Founder and President of GBA, moder