J.P. Morgan Files Patent for Blockchain-Powered Payments
May 4, 2018
Here we go. J.P. Morgan Chase has applied for a patent to facilitate payments between banks using the blockchain.
The patent was originally submitted in October, but the application was made public by the U.S. Patent and Trademark Office on Thursday. It outlines a system that would essentially use distributed ledger technology, such as blockchain, to keep track of payments sent between financial institutions.
In the application, J.P. Morgan notes that cross-border payments require “a number of messages” that must be sent between the bank and clearing houses involved in the transaction. This often results in delays and a restricted availability to the funds. Rather, the transaction on the blockchain would eliminate high costs, provide a system for accurately logging the transactions, and process payments in real time with a verifiably true audit trail.
Jim Sinclair’s Commentary
This is a step on gold road to the first of two resets.
Bill Holter’s Commentary
Every step forward for China is one step backwards for the dollar…
Nigeria, China Sign $2.4 Billion Currency-Swap to Lift Trade
May 3, 2018
Nigeria and China agreed on a currency-swap worth $2.4 billion to boost commercial ties and reduce the need to use the dollar in bilateral trade.
Yi Gang, governor of the People’s Bank of China, and Godwin Emefiele, his Nigerian counterpart, signed a three-year swap of 15 billion yuan or 720 billion naira in Beijing on April 27, the Chinese central bank said in a statement Thursday. The transaction can be renewed if both parties want, it said.
The deal, more than two years in the making, will “provide naira liquidity to Chinese businesses and provide renminbi liquidity to Nigerian businesses respectively, thereby improving the speed, convenience and volume of transactions between the two countries,” the Central Bank of Nigeria said in a separate statement. It will allow Nigerian companies to import spare parts and raw materials from China by sourcing renminbi from local banks and help them avoid “the difficulties of seeking other scarce foreign currencies,” it said.
China is Nigeria’s second-biggest trading partner after the U.S., with volumes between the two totaling $9.2 billion in 2017, according to data compiled by Bloomberg. Nigeria runs a deficit, importing $7.6 billion of goods including textiles and machinery from China and exporting just $1.6 billion, mainly oil and gas.