AUGUST 14 DIGEST: itBit Won’t Use Bitcoin for its Banking Project and 22 …

New York-based Bitcoin exchange itBit has revealed that it won’t use Bitcoin for its upcoming Bankchain project, the New York State Department of Financial Services has so far received 22 BitLicense applications, and more top stories for August 14.

itBit Reveals it Won’t Use Bitcoin for its Banking Project

New York-based Bitcoin exchange itBit has revealed that it will not use Bitcoin for its upcoming Bankchain project. itBit’s so-called Bankchain is a private shared ledger system for financial institutions, which borrows from Bitcoin and the blockchain, but is said to be different to them.

itBit’s senior vice president Steve Wager explained:

“Financial services firms cannot use the [Bitcoin] blockchain and that is primarily because of the validation protocol, meaning that a company like JP Morgan for example, wouldn’t be able to allow new risk into current processes by having unknown parties clearing their transactions for them or validating their transactions over the blockchain and as a result there’s the need for [permissible] ledgers.”

The exchange also announced that US National Security Agency veteran Ed Giorgio has joined its board of advisors.

22 Bitcoin Companies Have Applied for the BitLicense

The New York State Department of Financial Services (NYDFS) has revealed that it has so far received 22 applications from firms seeking to engage in virtual currency business activity in the US state. NYDFS deputy superintendent for public affairs Matt Anderson indicated that the agency believes this filing total shows there is substantial interest in complying with the BitLicense, and that the BitLicense will ultimately lead to broader adoption of the technology.

Anderson:

“In the long term, we think this is going to be helpful and I think there’ll ultimately be some sort of shaking the wheat from the chaff. We think that those companies that want to do business with strong consumer protections

Originally appeared at: http://cointelegraph.com/news/115122/itbit-wont-use-bitcoin-for-its-banking-project-and-22-bitcoin-companies-have-applied-for-the-bitlicense