The C5 Alliance Group (C5) has started mining cryptocurrencies, in an effort to increase knowledge and expertise in this growing area of interest.
This exercise will enable C5 to advise Channel Island businesses involved in this sort of activity and offer guidance to those interested in the enforcement and regulation of the decentralised currency.
Since its formation in 2009, the success of ‘Bitcoin’ has stimulated the development of many digital currencies. At the moment, there are more than 70 established variations including Litecoin, Peercoin and Primecoin – all peer-to-peer, digital and decentralised.
The currencies are obtained by ‘mining’, where the miner uses specialist hardware and software to solve complex algorithms and is rewarded by earning coins.
With cryptocurrencies already widely exchanged for products, services and traditional currencies, interest from financial institutions and commodity traders continues to grow.
C5 Alliance is now using specialist hardware to explore the mining process for various brands of cryptocurrency, using an isolated environment to control security risks.
Roland Blampied, Consultant at C5 is leading the project in Jersey, with a similar piece of work also underway in Guernsey. Mr Blampied said that the need for expertise in this area is growing.
“Mining requires a good degree of specialist knowledge and we hope to gain more expertise in this area across as many cryptocurrencies as possible, particularly the more recent ones that are gaining traction. We won’t be mining commercial levels of any one currency, this is all about expanding our expertise,” he said.
Mark Loane, Chief Executive Officer of the C5 Alliance Group said:
“There are growing concerns that, being decentralised, cryptocurrencies have no bodies governing their registration or regulation and present serious AML (Anti Money Laundering) issues. We are positioning ourselves to be able to answer any questions Channel Islands businesses might have.
“It is also important that we all gain a clearer perspective on the future of cryptocurrencies. At present, it looks like these currencies could be a game changer and really disrupt the traditional finance industries.
“In order to do this, we are looking to engage in further dialogue about the cryptocurrency space with more companies in the Channel Islands, to assess what sort of opportunities there are in our market. If this is something your company is interested in, please do get in touch with us,” he said.
Category: Finance & Business