FSB says checks for crypto risks needed as Salesforce unveils blockchain service

FSB SAYS CHECKS FOR CRYPTO RISKS NEEDED: The Financial Stability Board said regulators need to bolster risk assessments of the cryptocurrency space as existing rules are patchy and rapid technological shifts could lead to gaps in policies, Reuters’ Tom Wilson reported Friday. The FSB said regulators should foresee risks in the industry that could affect financial stability and an assessment of banks’ and other financial firms’ exposure to cryptocurrency was one potential tool. The agency added that virtual currency does not currently present a material stability risk.

SALESFORCE UNVEILS BLOCKCHAIN SERVICE: Salesforce (CRM) announced on Wednesday Salesforce Blockchain, a "low-code platform that enables organizations to share verified, distributed data sets across a trusted network of partners and third parties." Salesforce Blockchain made its debut at TrailheaDX, Salesforce's fourth annual developer conference. "We help companies build for the future by making breakthrough technology accessible and easy to use-today we are doing just that with Salesforce Blockchain," said Bret Taylor, president and chief product officer. "Now, companies will be able to create new ecosystems and achieve new levels of interconnectivity through trusted partner networks."

COINBASE LAUNCHES EOS SUPPORT: Coinbase announced in a Wednesday blog post that it would support EOS at Coinbase.com and in the Coinbase Android and iOS apps. The company said, “Coinbase customers can now buy, sell, convert, send, receive, or store EOS. EOS will be available for customers in most jurisdictions, but will not initially be available for residents of the United Kingdom or the state of New York. Additional jurisdictions may be added at a later date. EOS is a cryptocurrency designed to support large-scale decentralized applications. There are no fees to send or receive EOS. Instead, the protocol requires EOS to use resources like RAM, CPU, and network bandwidth. It also rewards the entities that run the network periodically with new EOS, effectively substituting inflation for transaction fees.”

BITCOIN USE STILL LOW: Speculation continues to be the primary use for bitcoin (BITCOMP) despite renewed exuberance for the cryptocurrency over the recent price rise, Bloomberg’s Olga Kharif reported Thursday. Data from blockchain researcher Chainalysis found that only 1.3% of economic transactions came from merchants in the first four months of 2019, which was little changed over the cycles of the previous two years. "Bitcoin economic activity continues to be dominated by exchange trading," said Kim Grauer, senior economist at Chainalysis. "This suggests Bitcoin’s top use case remains speculative, and the mainstream use of Bitcoin for everyday purchases is not yet a reality."

IDEANOMICS, IUNICORN ENTER INTO JV: Ideanomics (IDEX) announced Friday that it has signed a strategic joint venture with China's iUnicorn, a Chinese ride-hailing service which offers electric vehicles. The JV will become a green finance and integrated marketing service enterprise for new energy vehicles as part of Ideanomics' New Energy Vehicle division. The venture will also become the exclusive sales, marketing, operations, and financing partner for iUnicorns activities, as well as for other EV activities, including tour bus and other specialty vehicles. Ideanomics will have 50.1% ownership control. The board will contain five members comprised of three from Ideanomics and two from iUnicorn. Additionally, iUnicorn will appoint the CEO and the parties will coordinate on the appointment of the JV's CFO.

CRYPTO STOCK PLAYS: Cryptocurrency revenues have been pointed to as reasons to be bullish on Advanced Micro Devices (AMD) and Nvidia (NVDA) in select research. Overstock (OSTK), DPW Holdings (DPW), Kodak (KODK), Ideanomics, Riot Blockchain (RIOT), Pareteum (TEUM) and Social Reality (SRAX) are other stocks that have been touted, or promoted themselves, as a way to play the crypto theme.

PRICE ACTION: As of time of writing, bitcoin rose roughly 4.1% this week to $8,424 in U.S. dollars, according to TradeBlock.