"New York Times" bitcoin furuan on Wall Street began to actively test technology

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Most people still think of coins as are drug dealers and shady hackers in order to bypass the virtual currency used in government departments.

Innovation has helped coins become most popular virtual money in the eyes of the people. People think it's got great potential, can overturn a number of industries, including accounting, the music industry and the legal profession.

But no other place than Wall Street's involvement in the technology funds and resources, birth of the bitcoin is precisely to get around the industry.

"Now, interest in it is very strong. "The United Kingdom Chief digital officer at global banks Barclays Bank delike·huaite (Derek Whit) said. At present, the Bank has a team of employees is studying about 20 experiments, exploring the technology behind the currency might be to change the financial industry, "everything comes from an understanding: ' Wow, we can make use of this technology, fundamentally changed our business model to create our future. '"

Coins for these white people, not just a token used in online transactions. In contrast, many of the top people in the financial sector are already identified, created bitcoin software also allows a fundamentally new way of online trading and record-keeping was possible--it lets people and banks can trade currencies and assets, such as stocks, bonds, and don't have to rely on lengthy and expensive intermediaries.

Many of the banks had disclosed their actions in this regard, but most activity occurs behind the scenes. In April this year in United States banks (Bank of America) Office held a secret meeting in Manhattan. According to the people present at the meeting said, more than 10 large bank executives get together, secrets to explore how to change using the technology behind the currency forex trading in the world's largest financial market.

The Federal Reserve and the Bank of England and other central banks are also each have a team focused on the technology.

"A year ago, it was more just a concept. "JPMorgan Chase (JPMorgan Chase), head of corporate strategy maikesi·niuke (Max Neukirchen) says," now it has become a real business opportunity. After trying will recognize that it is in how we think about the infrastructure of the industry can play an important role in the evolution of. "

This compared with the 2013 bitcoin burst into the public consciousness underwent a long process. At that time, including JPMorgan's Chief Executive, Jimi·daimeng (Jamie Dimon), many bankers are sniffy about the currency. At that time, currency prices are soaring because of the feverish speculation, that the outside world often compare it with Netherlands the Tulip bubble to make comparisons.

At that time, some like Dell and big companies like Overstock announced that it would start trading in line to accept coins, but few consumers have expressed interest in using the digital currency to pay, and the frenzy around the coins had largely died down after.

Of these institutions now involved in selling goods on the whole aren't interested in using bitcoin, have no interest in holding this kind of virtual currency. Instead, they stared is bitcoin moments hardly spent a cent in the global distribution network and software.

At present, digital transactions usually use some form of central agencies in order to achieve liquidity and transaction records updates-many online transactions using PayPal (PayPal) and Visa are used this way.

Instead, the bitcoin network operators is a decentralized network of users, and together they track deal going, real-time update transactions, rather than a reference to a single user or a company boss. The total of all transactions are stored in the public accounts, that is, outside the so-called block chain. It's essentially just a large open spreadsheet, everyone can see it. And, at least for the time being, it turns out, it cannot be tampered with.

At present, banks and much of the work carried out in other industries is studying whether the block chain is independent of the coins this virtual currency to use, the currency block chain is first recorded in the General Ledger.

Music publications Billboard (Billboard) wrote recently, several start-up companies are planning to use a block-like chain to track downloads of electronic accounts, which pay royalties to the music, rather than relying on a central record-keeping system.

Vermont in June this year, has also appointed a study, in accordance with the laws of that State, blocks can be legally used to preserve judicial records; there are also a number of Government is also studying the technology, but many of them are not in the United States.

But most work in this area is the NASDAQ OMX Group (Nasdaq OMX Group) that financial companies. This company currently has several Manhattan programmer software is under preparation, and plans to launch this year.

NASDAQ-the software will use a new chain of blocks to private companies (such as technology startups) stock exchanges. It will replace the existing system. Currently, private companies need to use a paper voucher issuance and trading of stocks. This process means that even the most basic transaction, it takes several weeks to complete.

In addition to the short trial, NASDAQ also experiments in several other markets at the moment, is expected to pass block total accounts for the chain increases the speed of transactions and reduce transaction costs. This work is in charge of fuleidelike·wosi (Fredrik Voss). Recently, his work from the company's Commodities Division chain of blocks transferred to the company's Chief Executive post.

NASDAQ Chief Executive Robert greifeld (Robert Greifeld) in July this year in a conference call with investors, said: "we believe that the block chain technology has great potential, you can improve the efficiency of capital markets, while enhancing transparency and security, all of which are in line with the fundamental interests of the public. "

Financial sector discussed openly for the first time coins dating back to the end of 2013. Although most of the attention was negative, mainly concentrated in such virtual currency speculation.

But recently, Goldman (Goldman Sachs), Santander (Santander) and BBVA banks on an external study on the coins the first investments in technology startups, which used to be the founders of several employees of big banks. "New York Times" bitcoin furuan on Wall Street began to actively test technology

But overall, these big banks rely on their employees to work in the respective companies are not so disclosed. Citibank is an example. According to people familiar with the company said, it is carrying out pilot projects in six different, block chain technology research and development software. In one test, the Bank also created its own virtual currency Citi dollars (Citicoin), employees can use it for experiments.

In addition to NASDAQ's project on the technology areas which are most likely to lead to real life, outside there is a great deal of debate. Barclays Bank more than more than 20 experiments mostly in two of Barclays in London to specialize in the technology Office, some experiments are working on ways to use the block chain increases the speed of consumers pay while reducing costs in order to compete with credit cards and direct transfers.

Bank employees said that on the whole, most of the work's aim is to change the Wall Street big exchanges and investors are using to sell syndicated loans and corporate bonds and other complex assets used by the system.

Since any innovation in this area require cooperation between the banks, the Bank has held a number of joint meetings to discuss how to cooperate, often led by external start-up companies is intended to provide the required software.

One of organizers of dialogue at the highest level is a startup called R3Cev, used to be one of Wall Street's high Guan Dawei, head of the company · E. root (David E.Rutter). Project insider, R3Cev company has come up with a few models, banks can use a common maintenance, similar to blocks spreadsheet of trade exchange. In April this year United States banks that the conveners of the meeting are R3Cev company. People familiar with the matter said, then from 15 different financial institutions, more than 75 people attended the meeting.

This seems like a rather arcane business, but every day in these markets with a large amount of money in circulation, which will affect the profits of the largest financial institutions. To cite an example, the foreign exchange market funds changed hands more than 3 trillion dollars a day.

For many practitioners of the banking industry, the question is not whether to put the technology into use, but when. JPMorgan's Mr Yatsenyuk in China as well as many other banks are expected to take many years, block chain the first large-scale application of technology can be achieved. White, but Barclays is considered to be much faster, will be realized next year.

Banks use this technology may make a lot of coins to the prospect of early fans disappointed, and many of them are attracted by the technology, because it provides a way to, don't have to rely on banks to capital flows and storage.

Many people want the financial industry can find a way to directly use the concept of block chain (it is usually used to refer to a decentralized account) rather found in relation to the currency.

Although the concept of banking professionals who disagree on how to achieve this goal, but they view this goal can be achieved surprisingly consistent. Bank one of the top Internet analysts at Goldman Sachs xisi·Teli (Heath Terry) in a podcast for the company said: "the entire block behind the currency link technologies has huge implications for all types of assets--for electronic goods, the transfer of title, too. "

He said: "it's hard to see what this world is technology of field block chain ultimately had no effect on our concept of ownership. "

(Translator: immense)

Source: New York Times

Original title: WALL STREET TAKES a KEEN INTEREST IN BITCOIN'S TECHNOLOGY