VANCOUVER, March 24, 2020 /CNW/ - TAAL Distributed Information Technologies Inc. (CSE:TAAL | FWB:9SQ | OTCQB:SQRMF) ("TAAL" or the "Company") announces an update regarding its operations and business.
On March 11, 2020, the World Health Organization declared the outbreak of a strain of novel coronavirus disease, COVID-19, a global pandemic. The spread of COVID-19 has had disruptive effects on TAAL's operations, as it has with many other businesses globally, and has also caused increased volatility in global financial markets. If the pandemic is prolonged the adverse impact on the global economy could deepen and result in further disruptive effects on TAAL's operations. TAAL continues to monitor and assess this rapidly developing situation.
These uncertainties have impacted TAAL's buildout plans for 2020, but the Company has taken measures to mitigate the effect on operations and profitability. TAAL's global strategy supports the vision of transforming from a 'digital asset' company to one that is providing professional-grade enterprise scale blockchain infrastructure platforms and solutions as a service. To achieve this, an internationally stable and digital asset friendly regulatory environment and support system are critical and TAAL supports all efforts and initiatives in this area.
As a result of recent global economic developments, TAAL's intended establishment of an office in Zug, Switzerland is still moving ahead but has been slowed, facilities have been sourced, however, relocation of several key staff and recruitment of new staff intended to be based in Europe will occur once it is safe to do so based on updated advice related to COVID-19. The establishment of a European base is central to TAAL's expansion initiatives.
Bitcoin has a built-in inflation schedule, which was designed to initially reward those that supported the network by acting as nodes, which also provide for a decentralized method for distributing tokens. It is hardcoded in the relevant protocol that the reward subsidy reduce every four years, slowly acting as a catalyst for the economy to move from a block reward revenue model to one based on transaction processing. Such a model would only work at scale and could only be realized if the network is allowed to scale up transaction volumes without limitation. This is why TAAL's focus continues to be on the Bitcoin SV blockchain, which is seeking to massively scale to support enterprise levels of transactional flow.
Management expects that, as blockchain companies increasingly compete in an open, transparent, and regulated arena as a result in part due to the upcoming halving of SHA-256 based block subsidies in April-May of this year, the fees paid from transactions will need to account for dwindling profits. TAAL has been preparing for the post-halving landscape over the last six months and management believes TAAL is prepared to weather the change while still being able to provide sufficient support for our transaction processing business and for Bitcoin SV blockchain security as a whole.
The primary focus of TAAL's roadmap is value-added services, including the provision of more comprehensive information processing features that enterprises, payment processors and small businesses building on Bitcoin SV will need. Such value-added services are expected to allow new and innovative businesses to further evolve, including smart contract services, secure information storage and access, archival services and transaction indexing services. Now that the Bitcoin SV platform has been shown to be capable of general computational tasks, TAAL expects to soon see specialized calculation servers emerge. These 'calc servers' will need to interact with the blockchain in order to operate and are expected to be a focus of TAAL's service offerings. Additionally, the market for microtransactions, which are only feasible on the Bitcoin SV platform, is extremely promising and requires a different set of supporting services which TAAL plans to provide.
On behalf of the Board of Directors,
Jerry Chan, CEO
About TAAL Distributed Information Technologies Inc.
TAAL is a Canadian based technology company leading in enterprise scale blockchain based information management and security through Bitcoin SV, Bitcoin Core and other SHA-256 based digital asset platforms.
The CSE accepts no responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes "forward-looking information" as defined under applicable Canadian securities legislation. Forward‐looking information and statements include, but are not limited to, disclosure regarding possible events, that are based on assumptions about future economic conditions and courses of action, statements with respect to the anticipated benefits, if any, effects, performance, capabilities or importance to TAAL or otherwise (including with respect to the effects on, and the capabilities of, the Bitcoin SV blockchain and the blockchain industry), statements with respect to a transaction-based economy for blockchain cloud computing operations, statements with respect to micropayment markets and calculation services, statements with respect to COVID-19 and any other pandemics (including the duration, effects and disruption resulting therefrom) and the impact of COVID-19 and any other pandemics on the blockchain industry, Bitcoin SV blockchain, digital asset values and the Company's business, operations, workforce and financial condition, statements with respect to the timing and completion of the Company's strategy (including its buildout plans for 2020, its intention to open offices in the European Union, its focus on the Bitcoin SV blockchain, the success of its transaction processing business and the provision of its value-added services and other service offerings) and statements with respect to the blockchain industry generally (including expectations regarding fees paid from transactions), and, in certain cases, can be identified by the use of words such as "expects", or variations of such words and phrases or statements that certain actions, events or results "may" or "will", or the negative forms of any of these words and other similar expressions.
Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, future demand for Bitcoin SV, Bitcoin Core and other digital assets and risks related to information processing using those platforms, integration issues, personnel and staffing requirements, technological change and obsolescence, and risks relating to a global pandemic (including COVID-19), which, unless contained, could cause a slowdown in global economic growth and impact the Company's business, operations, financial condition and share price. Actual results and future events and actions could differ materially from those anticipated in such forward looking information. Accordingly, readers should not place undue reliance on forward looking information. All forward looking information in this news release is made as of the date hereof and qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. TAAL disclaims any intention or obligation to update or revise such forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE TAAL Distributed Information Technologies Inc.
For further information: Matt Whitcomb, Investor Relations, Telephone: +1 800-371-2809