Blockchain is 'one of the most overhyped technologies ever,' Nouriel Roubini says - CNBC News

Blockchain is 'one of the most overhyped technologies ever,' Nouriel Roubini says

Blockchain, the technology behind cryptocurrencies, is "one of the most overhyped technologies ever," according to noted economist Nouriel Roubini.

In an opinion piece on Project Syndicate, he took apart some of the arguments blockchain proponents have put forward about the advantages of the technology.

Roubini said that blockchain was unlikely to remove the need for intermediaries in financial transactions and is unlikely to replace some of the existing systems used by banks.

Arjun Kharpal | @ArjunKharpal

Published 6 Mins Ago - 6/3/2018

CNBC.com

Nouriel Roubini at the World Economic Forum in Davos, Switzerland.

David A. Grogan | CNBC

Nouriel Roubini at the World Economic Forum in Davos, Switzerland.

Blockchain, the technology behind cryptocurrencies, is "one of the most overhyped technologies ever," according to noted economist Nouriel Roubini.

Bitcoin was one of the first applications of the blockchain. It's a public ledger of bitcoin transactions that is tamperproof. Transactions on the bitcoin blockchain require verification from a number of different parties. The transactions are verified by so-called "miners" solving complex mathematical puzzles with high-powered computers.

There is no central authority on the bitcoin network which is why the blockchain is often called distributed ledger technology. Large financial institutions are exploring how it could be used.

Advocates have said that it could speed up processes such as legal contracts, cross-border money movement, and back-end processes in large firms.

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But Roubini, who is also known as "Dr Doom" for his pessimistic economic outlooks, is not convinced.

"In reality, blockchain is one of the most overhyped technologies ever," Roubini said in a column along with Preston Byrne, a fellow of the Adam Smith Institute, on the Project Syndicate website.

One of the promises of blockchain technology is that it could cut out large amounts of paperwork. For example, a contract between two or three parties could be executed on the blockchain. Instead of numerous paper copies being updated with the latest terms, a single document, which tracks all the changes made by different parties, would be possible. The contract would be executed once all parties had met certain conditions. This is one of the use cases touted by Ethereum, which has a corresponding cryptocurrency called ether.

Roubini said that many people are confusing what it means to run a blockchain application.

"For starters, blockchains are less efficient than existing databases. When someone says they are running something 'on a blockchain,' what they usually mean is that they are running one instance of a software application that is replicated across many other devices."

Not a 'new universal protocol'

The chairman of Roubini Macro Associates also took apart some of the arguments put forward by blockchain proponents. He said because blockchains require all transactions to be verified cryptographically, they are often slower than traditional processes.

Roubini also said it's unlikely that blockchain technology would be able to eliminate financial intermediaries, as many have claimed. Advocates of the technology have said that the decentralized nature of the way transactions are verified could wipe out people in the middle of the movement of money, something Roubini disagrees with.

"This is absurd for a simple reason: Every financial contract in existence today can either be modified or deliberately breached by the participating parties. Automating away these possibilities with rigid 'trustless' terms is commercially non-viable, not least because it would require all financial agreements to be cash collateralized at 100 percent, which is insane from a cost-of-capital perspective," Roubini said.

"Moreover, it turns out that many likely appropriate applications of blockchain in finance — such as in securitization or supply-chain monitoring — will require intermediaries after all, because there will inevitably be circumstances where unforeseen contingencies arise, demanding the exercise of discretion."

Roubini said that Ethereum is "vulnerable to manipulation by influential insiders" and Ripple's technology won't replace the current system from cross-border money transfers between financial institutions called SWIFT.

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Ripple and Ethereum were not immediately available for comment when contacted by CNBC.

Roubini also said that blockchain would not become a "new universal protocol" similar to the likes of HTML on the internet.

'Railway mania'

However, Roubini did not completely trash the technology. He said that blockchains could make sense "in cases where the speed/verifiability tradeoff is actually worth it."

He is a well-known bear on cryptocurrencies and has, on numerous occasions, called bitcoin a bubble, recently tweeting that he thinks the price of the digital coin will go to zero.

He likened today's "coin mania" to the "railway mania" seen at the start of the industrial revolution in the mid-19th century.

"Ultimately, blockchain's uses will be limited to specific, well-defined, and complex applications that require transparency and tamper-resistance more than they require speed — for example, communication with self-driving cars or drones," Roubini said.

"As for most of the coins, they are little different from railway stocks in the 1840s, which went bust when that bubble — like most bubbles — burst."

'Cryptocurrency' Makes Its Merriam-Webster Dictionary Debut - Fortune

'Cryptocurrency' Makes Its Merriam-Webster Dictionary Debut

By NATASHA BACH March 5, 2018

Cryptocurrency might already be the rage of the day, but it just got a whole lot more legitimate.

Among more than 850 new words and definitions added to the Merriam-Webster dictionary this month, some cryptocurrency-related words are making their debut.

The online version of the dictionary will now feature blockchain, defined as “a digital database containing information (such as records of financial transactions) that can be simultaneously used and shared within a large decentralized, publicly accessible network.” The word cryptocurrency itself and the term “initial coin offering” will also be added.

“In order for a word to be added to the dictionary it must have widespread, sustained, and meaningful use,” explained Emily Brewster, associate editor at Merriam-Webster in a press release. “These new words have been added to the dictionary because they have become established members of the English language, and are terms people are likely to encounter.”

Unicorn, microcredit, and microfinance are also among the new additions to the dictionary.

Sri Lanka imposes state of emergency over communal violence - Al Jazeera

Sri Lanka imposes state of emergency over communal violence

Nation-wide state of emergency imposed to take 'stern action' following violence between Buddhist and Muslim groups.

6/3/2018

A local curfew was imposed on Monday in Kandy, after days of unrest between Buddhist and Muslim groups [File: AP]

A local curfew was imposed on Monday in Kandy, after days of unrest between Buddhist and Muslim groups [File: AP]

Sri Lanka's government has imposed a nation-wide state of emergency to "take stern action" against people instigating communal violence, a government spokesman has said.

The meassure comes after a local curfew was imposed on Monday in the central city Kandy, after days of unrest between religious communities with a Buddhist man killed and Muslim businesses set ablaze.

Mosque vandalised in Sri Lanka's Ampara

Police said on Monday there had been riots and arson attacks since the weekend in Kandy district, while sources told Al Jazeera the violence was spreading throughout the South Asian island nation.

In the past, religious and ethnic violence had turned deadly in Sri Lanka, where Muslims account for 10 percent of the 21 million population, and Buddhists Sinhalese make up nearly 75 percent. Another 13 percent of the population are Hindus.

Some observers blame the nationalist Buddhist organisation Bodu Bala Sena (BBS) group for the ongoing violence.

In February 2018, five people were wounded and several shops and a mosque were damaged during a clash between Buddhist and Muslim groups.

In June 2014, an anti-Muslim campaign was launched following the deadly Aluthgama riots.

Some hardline Buddhist groups have also accused Muslim groups of forcing people to convert to Islam and vandalising Buddhist archaeological sites.

President Maithripala Siresena had vowed to investigate anti-Muslim crimes after assuming power in 2015, but no significant progress has been reported.

SOURCE: AL JAZEERA NEWS

Brexit: Michel Barnier's top advisor pours cold water on Theresa May's latest trade plan - Independent

Brexit: Michel Barnier's top advisor pours cold water on Theresa May's latest trade plan

PM thought 'mutual recognition' of standards should be enough

Jon Stone Europe Correspondent @joncstone - 6/3/2018

Stefaan de Rynck advises Michel Barnier (pictured), the EU's chief negotiator AFP/Getty Images

The EU’s chief negotiator’s office has poured cold water on Theresa May’s latest plan for a Brexit trade deal, warning that her suggestion of mutual recognition of standards is not enough to secure access to the single market.

Stefaan de Rynck, the main advisor to chief negotiator Michel Barnier, said the EU’s current approach to trade necessitated a “single EU rule book” – which would appear at odds with the PM’s latest idea.

In her Mansion House speech last week Ms May suggested that the EU and UK could negotiate a trade deal where the UK and EU mutually recognised each others’ rules and standards as obtaining the same “regulatory outcomes”, with a third-party independent court overseeing disputes.

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But Mr de Rynck said in a lecture at LSE on Monday: “The EU has moved away in the wake of the financial crisis from mutual recognition of national standards to a centralised approach with a single EU rule book and common enforcement structures and single supervisory structures.

“If you are in a very integrated market but you don't have the joint enforcement structures then you can see the potential for all kinds of difficulties.”

The EU’s chief advisor said the ECJ would be able to declare the mutual recognition of standards invalid if it undermined single market integrity, and that this was fundamental to the idea of what the single market was.

His comments are the most detailed response by the European Commission to the PM’s latest speech yet. Chief negotiator Michel Barnier gave a fairly muted reaction last week, saying he welcomed the address that he it would be taken into account when drawing up the EU’s draft trade guidelines, which are expected to be released on Wednesday.

Italy's centre cannot govern without the support of populist parties - Independent

Italy's centre cannot govern without the support of populist parties

The anti-establishment Five Star Movement, whose success is built on the Italian population’s anger over the country’s economic situation and a hardline stance on corruption, beat pre-vote expectations and will be the single biggest party. The darker anti-immigration La Lega also appears to have done better than expected

Chris Stevenson - posted on 5/3/2018

Five Star Movement founder, Beppe Grillo, has also said undocumented migrants should be expelled from Italy Getty

Italians wake up on Monday morning to find out that the future of their government is still as unclear as before their votes were counted.

It is obvious that there will be the need for a coalition, as polling had suggested for weeks, and the identity of the country’s next prime minister is still somewhat of a guessing game. It will probably be weeks before the political horse-trading is finally finished and whatever government is finally formed can get down to business.

However, some major changes have taken place. While Italy is no stranger to political uncertainty, the rise of the populist parties – which may have taken as much as nearly 50 per cent of the vote when all is said and done – is a shot across the bows for the traditional centre-left or centre-right parties that have formed the foundation for decades of Italian government.

Italian Elections 2018: Democratic Party concedes defeat

The anti-establishment Five Star Movement (5SM), whose success is built on the Italian population’s anger over the country’s economic situation and a hardline stance on corruption, beat pre-vote expectations and will be the single biggest party. The darker anti-immigration La Lega, or League – formally known as the Northern League – also appears to have done better than expected. Those two parties will ensure two things in the aftermath of the election. The first is that neither Silvio Berlusconi’s centre-right Forza Italia or the centre-left Democratic Party (PD) of Matteo Renzi are likely to have enough support to create a government that reflects the election without support from at least one of the populist parties.

The second is that one of the major issues of the election – immigration – will still be front and centre. Both parties had called for hardline approaches on the issue. La Lega had called for mass deportations, something their coalition partner Forza had also called for, while the founder of 5SM, Beppe Grillo, has also said undocumented migrants should be expelled from Italy. The party’s current leader, Luigi Di Maio, has likened sea rescues of refugees and migrants as a “sea-taxi service” that must be stopped immediately. The fact that 5SM looks to have gained about 32 per cent of the vote, and La Lega around 18 per cent will only spread fear among the communities such measures would affect.

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Forza also looks to have garnered around 13 per cent, but with its right-wing coalition partners the far-right League and the Brothers of Italy, it will end up with around 37 per cent of the vote and will probably try to take the first stab at convincing others over to its side to form a government. In terms of other coalitions, 5SM would have the most options, but it is hobbled by the fact the party leadership has made so much noise about not wanting to be in a coalition.

If that position changes, they have issues in common with La Lega, not just immigration, but a healthy scepticism of the European project. But, many of their more left-leaning voters would hate a link-up with La Lega. 5SM could also reach out to the centre-left, but would the PD, previously the ruling party, agree to take a junior role in such a partnership? The PD will feel demoralised after a poor showing in the election, despite possibly being the second biggest single party overall, and such a deal might be a step too far.

Japan's navy appoints first woman to command warship squadron - Reuters

MARCH 6, 2018 / 7:38 PM / UPDATED 10 MINUTES AGO

Japan's navy appoints first woman to command warship squadron

Reuters Staff

TOKYO (Reuters) - Japan’s navy on Tuesday appointed the first woman to command a warship squadron, including the flagship Izumo helicopter carrier, as it tries to lure more females to make up for a dearth of male recruits in graying Japan.

Newly-appointed Commander of First Escort Division of Japan Maritime Self-Defense Force (JMSDF) Ryoko Azuma (2nd L), who is the first female commander of a navy destroyer squadron in Japan, salutes to soldiers on JMSDF's helicopter carrier Izumo at a port in Yokohama, south of Tokyo, Japan March 6, 2018. REUTERS/Nobuhiro Kubo

Ryoko Azuma, will command four ships with a combined crew of 1,000, of which only 30 are women, that make up the Maritime Self Defense Force’s (MSDF) First Escort Division.

“I don’t think about being a woman. I will concentrate my energy on fulfilling my duties as commander,” Azuma, 44, said at a change of command ceremony attended by 400 sailors aboard the Izumo, which was docked at a shipyard in Yokohama near Tokyo for repairs.

When she joined the MSDF in 1996 women were barred from serving on warships, a rule that the navy abolished ten years ago. Submarines, however, are still crewed only by men.

Japan’s military, like the wider economy is turning to women to make up a shortfall in personnel as the nation’s working age population shrinks amid a drop in birthrates. The number of people aged between 18 and 26 years old is forecast by the government to shrink to seven million people by 2065 from 11 million last year.

Unlike commercial companies, however, Japan’s military is unable to relocate units overseas or hire foreigners to supplement to their Japanese staff.

By 2030, the SDF plans to increase the combined number of women serving in the air sea and ground forces to 9 percent of the total from 6 percent, or 14,000 people now. In addition to Azuma, other senior female officers in the MSDF include four captains and a rear admiral in charge of logistics.

“I want to devote myself to becoming a person that will inspire others,” Azuma said when asked if she wanted to serve as a role model for other women.

Reporting by Nobuhiro Kubo; writing by Tim Kelly; Editing by Simon Cameron-Moore

Citigroup, Zurich Insurance consortium to develop cyber security norms: - Reuters

MARCH 6, 2018 / 5:58 PM / UPDATED 2 HOURS AGO

Citigroup, Zurich Insurance consortium to develop cyber security norms: FT

Reuters Staff

(Reuters) - A consortium led by Citigroup Inc (C.N), Zurich Insurance Group AG (ZURN.S) and Depository Trust & Clearing Corp (DTCC) will develop a set of cyber security standards that fintech companies can sign up to, the Financial Times reported on Tuesday.

The group was formed as a result of a meeting held by the World Economic Forum last year to promote cooperation between the public and private sectors, the FT said. on.ft.com/2FqDLzX

Founding members of the grouping, which include Hewlett Packard Enterprise Co (HPE.N) and U.S.-based online lender Kabbage, and participants say they aim to produce a set of standards within the next six to 12 months, according to FT.

Citi, Zurich Insurance and DTCC were not immediately available for comment outside regular business hours.

Citigroup Inc

74.42

C.NNEW YORK STOCK EXCHANGE

+0.74(+1.00%)

C.N

C.NZURN.SHPE.N

Last month, the U.S. Securities and Exchange Commission called for “clearer” cyber risk disclosure and asked companies to adopt specific policies restricting executive trading in shares while a hack was being investigated.

20-year-old sues Dick’s, Walmart over new gun policies - NBC News ( source : Associated Press )

MAR 6 2018, 1:45 AM ET

20-year-old sues Dick’s, Walmart over new gun policies

by ASSOCIATED PRESS

PORTLAND, Ore. — An Oregon man filed suits Monday claiming Dick's Sporting Goods and Walmart discriminated against the 20-year-old when they refused to sell him a rifle.

Dick's and Walmart restricted gun sales to adults 21 and older in the wake of the Florida high school massacre. The 19-year-old accused in the school slaying bought the AR-15 used in the attack legally.

Oregon law allows residents to buy shotguns or rifles starting at age 18.

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Tyler Watson's lawsuits filed against the retailers in two separate counties claim he faced age discrimination from Dick's and Walmart, The Oregonian/OregonLive reported. The lawsuit is believed to be the first filed over the new gun policies enacted on Feb. 28.

The lawsuit claims a store owned by Dick's Sporting Goods in Medford, Oregon, refused to sell Watson .22-caliber Ruger rifle on Feb. 24. The suit says Grants Pass Walmart in Oregon refused to sell him a gun on March 3.

It's not clear if Watson knew at that point of the restrictions.

"He was really just trying to buy a rifle," said his attorney Max Whittington.

Watson is asking judges to force Dick's and Walmart "to stop unlawfully discriminating against 18, 19, and 20 year-old customers at all Oregon locations." Additionally, he is asking for unspecified punitive damages.

Walmart spokesman Randy Hargrove said the retailer plans to defend the new policy.

"We stand behind our decision and plan to defend it," he said. "While we haven't seen the complaint, we will respond as appropriate with the court."

A representative from Dick's hasn't responded to a request for comment.