French Government Greenlights Blockchain

Of all places, France has given blockchain its blessing.

According to Reuters, the French government has allowed unlisted security trading via the digital currency technology with the adoption of new rules to help bolster the highly regulated country’s image as a financial innovation center.

Cutting out middlemen such as custodian banks and brokers, the new rules allow banks and fintech companies to set up blockchain platforms for instant unlisted security trading. Listed securities, however, will still need to pass through clearinghouses and custodians.

“The use of this new technology will allow fintech firms and other financial actors to develop new ways of trading securities that are faster, cheaper, more transparent, and safer,” Finance Minister Bruno Le Maire said in a statement.

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Last month, Paris-based asset management firm TOBAM opened its Bitcoin mutual fund, the first of its kind in Europe. The fund allows for qualified investors to gain exposure to cryptocurrency in a safer, more convenient vehicle backed with TOBAM’s cybersecurity.

“Because a fund is organized with segregation of duties in terms of custody, in terms of valuation, [and] in terms of management, you have [an] auditor which audits not only the valuation in the accounts, but also the structure of the organization,” TOBAM President Yves Choueifaty told CIO in an exclusive interview. “The best in terms of holding assets is probably via funds, and this was missing for the Bitcoin in a highly regulated country, and we have been able to launch that in a highly regulated country—probably the most regulated country in the world—which is France.”

Tags: Blockchain, France, Unlisted Security Trading

Despite promises to call a special session addressing Kentucky’s pension problem throughout the year, Gov. Matt Bevin admitted Monday that the session may not be called in the final few weeks of 2017.

“There is nothing magical about getting it done on a particular date or a particular month, or whether it is a special session or not,” Bevin told reporters in an impromptu press conference, according to Kentucky Today. “Is it still possible? Yes. Will it happen? We’ll see.”

While Bevin had continually told media and state government officials that the session would commence, each month it has been pushed back. The session in question would be for legislature to vote on Bevin’s controversial proposal for pension reform, which would put new public employees and teachers into 401(k)-style savings plans after 27 years of service. However, teachers would be given a three-year option to remain in their traditional pensions.

Although Bevin has said his plan will put the Bluegrass State on track to fix its $40 billion-plus debts without breaking any promises to current employees or retirees, much of his 505-page bill has drawn the ire of many. The most heavily rebuked provision requires an additional 3% contribution from state and local government employees and teachers for retiree health benefits.

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When asked specifically why the session may not happen in the coming weeks, Bevin pointed to a recent sexual harassment accusation involving a House GOP staffer and four representatives, including former Speaker Jeff Hoover, who resigned following the scandal’s reveal. However, Bevin remained optimistic.

“There’s absolutely a chance. It has been my intention without question,” he said.

Bevin’s adamancy for the special session has been in an effort to pass the reform bill before the regular session begins in January, when the state budget and tax reform will be discussed. He is also worried about a budget shortfall for the current fiscal year, about which he is expecting to hear more troublesome news on Friday, when the economist panel Consensus Forecasting Group meets.

“While I don’t have the ability to predict, it would be our expectations that we’re likely to see that it’s not the $150 [million] or $200 million [shortfall], that it’s even worse than that,” he said. “In the next six months, we’ll have to come up with another $250 million. That’s just for this year.”

Bevin said: “These things are imperative to be addressed. We are in dire straits financially.”

Tags: Governor Matt Bevin, Kentucky, Pension, Pension Reform

Kentucky Gov. Speculates Special Session in 2017