'Cryptocurrencies' could disrupt traditional finance industry

Thursday 23 January 2014

The C5 Alliance Group (C5) has started 'mining crypto currencies' in order to be able to advise local businesses interested in this area.

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.

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".