Sunday, May 22, 2016

Myth-Busters: The Banks & "Your" Money
Gilbert K. Chesterton: "The golden age only comes to men when they have forgotten gold." ..  The statement suggests two things (1) People have a tendency to leave gold to try paper experiments, & (2) Gold, for thousands of years, has always made its return .. 18 minutes

1 comment:

Anonymous said...

Fraud in $4 Trillion Trade Finance Turns Banks to Digital Ledger

Technology may help address risk of multiple-invoice fraud
Challenge is getting banks to agree on common platform

The risk posed by fraud in the $4 trillion trade-financing industry has prompted banks to start exploring distributed-ledger technology like the one that underpins bitcoin.

Standard Chartered Plc, which lost almost $200 million from a fraud at China’s Qingdao port two years ago, has teamed up with DBS Group Holdings Ltd. to develop an electronic ledger of invoices that uses a parallel platform to the blockchain employed in bitcoin transactions. Lenders such as Bank of America Corp. and HSBC Holdings Plc say they’re looking at blockchain for trade finance and other banking applications.

Blockchain proponents argue that the technology will change the face of banking, helping lenders cut billions of dollars in costs. Trade financing, a centuries-old banking mainstay, may become ground zero for blockchain adoption because it promises to do away with paper invoices and the fraud that accompanies them -- if banks can come together around a joint platform.

For blockchain applications, “invoices should be considered a leading candidate here, given the high potential for fraud,” said Henry Balani, global head of strategic affairs at Accuity, which provides technology to monitor trade-based money laundering.
In the Qingdao case, companies controlled by a Chinese-born, Singaporean businessman are alleged to have used invoices for the same metals stockpiles several times to bilk banks out of hundreds of millions of dollars.

hmmm...collateral damage will be faux wealth exposure?