Allianz: Blockchain is crucial, Bitcoin is conceptual
Amidst the ongoing dispute surrounding the true value of leading cryptocurrency Bitcoin, Head of Global Economics & Strategy at Allianz Global Investors, Stefan Hofrichter, has claimed in a company blog post that “Bitcoin has no intrinsic value”.
Describing the market behavior of Bitcoin, Hofrichter says: “from our perspective, bitcoin has serious flaws: its trajectory resembles a textbook case of a financial-market bubble, and it is lacking several key qualities that would qualify it as a currency.”
Further, he claims that Bitcoin resembles the same characteristics that many asset bubbles show, including new-era thinking, overtrading, a lack of financial regulation and significant overvaluation.
“This brings us to a key question: what is the fair value of a bitcoin? In our view, its intrinsic value must be zero: a bitcoin is a claim on nobody – in contrast to, for instance, sovereign bonds, equities or paper money – and it does not generate any income stream,” Hofrichter said.
However, aside from discrediting Bitcoin as a viable currency, Hofrichter does readily recognize the benefits of blockchain, the technology behind Bitcoin and many other cryptocurrencies.
In particular, he recognizes that the technology has potential merits when verifying transactions and networking due to its ability to reduce costs – a key reason for its increasingly widespread use within the financial sector.
Further blockchain is not only being used in constructive ways within the banking sector, but across a wide variety of applications. For more information on how blockchain is being implemented throughout the energy, healthcare and mining sectors, amongst others, see Beyond cryptocurrency: Eight alternative uses of blockchain.
ServiceNow pumps millions into EU service compliance
ServiceNow, the digital workflow company, has announced a multimillion euro investment to help EU customers meet compliance requirements.
The legal, technical and organisational safeguards will help companies to comply with the the Schrems II judgment and European Data Protection Board (EDPB) Recommendations issued in June 2021.
ServiceNow’s investment means all EU-hosted data will be exclusively handled within the EU, and the cloud-hosted digital workflow provider claims its solution will come “without impact on current delivery and service”.
ServiceNow upgrade: free of charge
There will be no cost for current customers to opt in to the data compliance solution, even though ServiceNow is investing an unspecified multimillion euro sum and hiring more than 80 new staff across the bloc.
Mark Cockerill, vice president legal, EMEA and global head of privacy at ServiceNow, said: “With any regulation change, cloud services companies have a choice. They can adopt a ‘wait and see’ approach or get proactive and help customers and partners innovate. At ServiceNow we are on the front foot, continually investing in our customers, allowing them to operate with the highest level of choice and control over their EU data.
ServiceNow upgrade: ‘peace of mind’
“Our new EU-centric service delivery model will give our current customers and partners peace of mind. For customers and partners operating in highly regulated industries, or in the public sector, or those that have yet to make the switch to the cloud, this model gives them certainty and simplicity when selecting the cloud service that best suits their needs.”
Carla Arend, lead analyst, cloud in europe for IDC, said, “The Schrems II ruling has led European organizations to revisit their cloud-related data protection policies and processes when it comes to international data transfers through cloud services.
“Contractual, privacy, and security safeguards and the assurance that data will be kept and handled in the EU help European organizations to comply with European data protection laws while taking advantage of global cloud platforms. Vendors, such as ServiceNow, that invest to support their customers in response to this ruling are providing essential choice to their customers.”