Norway’s largest financial institution- Den Norske Bank (DNB) sign a memorandum of understanding with IOTA Foundation which will enable the two work together to utilise IOTA’s tangle for business exploration.
IOTA is a unique version of cryptocurrency which is designed to be used for secure data stream transactions which do not require miners and transaction fees to operationalise ( ‘internet of things’ use). IOTA foundation purposes to use the coin to eradicate major crypto related problems such as mining expenses, poor transaction speed as well as the lack of scalability. It is for these reasons that the two entities come together for mutual co-existence. IOTA will provide the prerequisite technology required whereas Den Norske Bank will provide the platform within which the IOTA tangle will be applied for the benefit of both companies.
The press release indicated that the two will cooperate to create new business models for both companies. ” the goal of this collaboration is to understand more of their technology and let those in the bank who are close to the customers see opportunities for new business models.” Stated Lasse Meholm, DNB’s block manager.
Cryptocurrencies – banks relation stabiliser
At the beginning of the month, Nordea bank successfully managed to shut down the accounts of a Norwegian’s cryptocurrency exchange firm over claims of insufficient mechanisms to deal with money laundering. This closure adds fuel to the already existing woes between cryptocurrencies and financial institutions. The two hence strongly believe that the merger will help ease the tension that currently exists between their circles. “I hope and believe it (that the collaboration will help soften the hostile relationship that exists between cryptocurrencies and Norwegian banks). The IOTA Foundation will contribute to separating useless cryptocurrencies from the serious ones.” Says IOTA’s founder David Sonstebo.
The move to collaborate with DNB is the latest among the various cooperation moves that IOTA has achieved with established institutions such as the automobile industry over the recent past. For instance, IOTA has collaborated with car manufacturing agency Volkswagen to see the idea of driverless vehicles actualised. In this project, the automobiles will independently trade data with each other. Other mobility companies such as Groupe Renault, Ford and BMW have also shown interest in the decentralized technology. “We want to build a standard for mobility and where machines are talking to each other. Quite the same as today’s standards for the internet are working.” Explained Luce Dave, the managing director of IOTA