The American multinational financial institution has filed a patent to develop a “system and methods to manage a tokenization manifest.” Wells Fargo Hates Cryptocurrencies, Not Its Technology The San Francisco-based bank hasn’t always been kind to cryptocurrencies. Just last month, CCN reported Wells Fargo’s ban on customers who bought digital assets using credit cards, for
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Breitbart News co-founder Steve Bannon says he is considering issuing “quality” utility tokens for the global populist movement
A Singapore-based e-government service provider – notably owned by a government body and a port operator – has launched a blockchain platform focused on cross-border trade between ASEAN nations and China. Singapore-based CrimsonLogic, an e-government solutions provider with a presence in over 20 countries, announced [PDF] details of its ‘inclusive and extensible blockchain service’ that
The post ‘World’s First’ Trade Blockchain Launches in Singapore to Link China and ASEAN Nations appeared first on CCN
Germany rejected the idea of issuing a state-backed digital currency — here is how far they have advanced in other countries
Malta to launch a new exchange platform for secure digital assets
The first-ever investment report released by major crypto fund Grayscale Investments reveals that 56% of capital inflow this year is from institutional investors
The Federal Reserve’s new chairman made his stance on cryptocurrency clear to the US House of Representatives on Wednesday. In his view, cryptocurrencies have no intrinsic value, are not used often as a means of payment, are not a store of value, but are great for money laundering. He also dismisses the idea that cryptocurrencies could pose a significant risk to the country’s financial stability at their current size.
The chairman of the U.S. Federal Reserve who took office in February, Jerome Powell, answered questions about cryptocurrencies in his testimony before the House Financial Services Committee on Wednesday.
This committee has jurisdiction over issues pertaining to the U.S. economy, banking system, housing, insurance, securities, exchanges, monetary policy, international finance, international monetary organizations, and efforts to combat terrorist financing.
U.S. Representative and vice-chairman of the committee, Patrick T. Mchenry, asked Powell to outline his thinking on cryptocurrencies. The chairman replied that there are “significant” risks to “relatively unsophisticated investors” who “see the asset going up in price and they think this is great; I’ll buy this [but] in fact there is no promise behind that.” He elaborated:
Cryptocurrencies are great if you’re trying to hide money or if you’re trying to launder money…it doesn’t really have any intrinsic value so I think there’re investor or consumer protection issues as well.
Furthermore, regarding whether the Fed is considering issuing its own digital currency, the chairman clarified, “that’s not something we’re looking at,” reiterating, “we’re not looking at this at the Fed as something that we should be doing.”
As for whether cryptocurrency is a currency, Powell claims that “it’s not really a currency,” clarifying:
If you think about what currencies do, they’re supposed to be a means of payment and a store of value, basically. And cryptocurrencies…they’re not really used very much in payment. Typically people sell their cryptocurrencies and then pay in dollars. In terms of a store of value, you know, look at the volatility and…it’s just not there.
While questioning Powell, Mchenry outlined the current regulatory framework for cryptocurrency in the U.S. He detailed that each of the 50 states has its own requirements for crypto businesses operating locally such as obtaining a money service license.
There are also regulators such as the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) that have some jurisdiction over cryptocurrency when it falls under their domain, he described, reiterating:
There’s some broad [regulatory] framework of it but not a concerted effort by the federal government to understand what’s happening in cryptocurrency.
No Serious Risk to Financial Stability
Mchenry further asked Powell whether the Fed sees cryptocurrency impairing its ability “to act on monetary policy, given the current shape and scope of the size of the market.” The Fed chair replied, “not at all today.”
Powell additionally explained his previous statement regarding the impact of crypto on the country’s financial stability. He recalled being asked, “do cryptocurrencies currently present a serious financial stability threat?” He clarified:
They’re not big enough to do that yet. That’s really what I was saying, not that they’re not a longer-term thing.
Powell believes that the recent BIS report and others have adequately outlined risks associated with cryptocurrency “and called on the appropriate regulatory bodies to address them.” He emphasized, “we don’t have jurisdiction over cryptocurrency. We have jurisdiction over banks,” adding that those with jurisdiction such as the CFTC and the SEC can address the investor protection aspects of crypto.
This week, the Financial Stability Board (FSB) also said that “Crypto-assets do not pose a material risk to global financial stability at this time.”
What do you think of Powell’s view on cryptocurrency? Let us know in the comments section below.
Images courtesy of Shutterstock and the U.S. government.
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BitFury partner Hut 8 diversifies Bitcoin mining competition with capacity upgrade
After adding more than $20 billion within a 30 minute period, the crypto market has declined in valuation, led by the 5 percent drop of ether and Bitcoin Cash. Over the past 24 hours, the price of Bitcoin Cash, ether, Ripple, and EOS dropped by 4 to 6 percent, while bitcoin remained stable in the
The post Crypto Market Makes Minor Retreat Post-Rally, Ether and Bitcoin Cash Down 5% appeared first on CCN
An administrative district in Seoul will now implement smart administration through blockchain technology
Another day, another crypto-forward development in Malta, as it backs its promise to become the world’s ‘blockchain island.’ CCN can exclusively reveal that Neufund, a German-based blockchain protocol for securities tokenization and issuance will be partnering with MSX, an innovation vehicle of the Malta Stock Exchange. MSX is also in partnership with Binance which claims to … Continued
The post Exclusive: Binance, Neufund Back ‘World’s First Decentralized Stock Exchange’ in Malta appeared first on CCN
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Wednesday Lugano, Switzerland – trade.io, a leading cryptocurrency exchange and innovator of the industry’s leading liquidity pool, today announced that David Hannigan has joined the company as its Chief Dealer. David brings almost 30 years of trading and risk management experience, most notably his position as Senior VP at National Australia Bank, to his new role.
David will lead trade.io’s risk management department, and will be responsible for building out its OTC Desk, allowing for both retail and institutional fiat-to-crypto exchange functionality. Up to 50% of all OTC Desk revenues will be allocated to the forthcoming liquidity pool, which can only be accessed by using trade.io’s utility token, TIO.
trade.io’s CEO Jim Preissler said, “We’re very lucky to have someone with David’s experience lead the risk management team and spearhead our OTC Desk. David has an impeccable track record in trading and risk management, which is invaluable when dealing with the size of deals in the crypto space. It’s not uncommon to have a $10m deal come through the desk multiple times per day.”
David Hannigan also commented, “I see a lot of similarities in how trade.io runs its business to many of the large banks I’ve worked for in the past. With my prior experience in the banking sector, I am cognizant on how profitable an OTC Desk can be. I am thrilled to hit the ground running to provide this service to the trade.io community.”
David will also be providing daily commentary on the crypto markets which can be accessed by registered trade.io users.
trade.io is a next-generation financial institution based on blockchain technology, providing the ultimate in security and transparency. By leveraging decades of experience in the investment banking, trading & FinTech sectors, and combining them with the power and transparency of the distributed ledger, trade.io has created a truly unique exchange that will revolutionize asset trading and investment banking.
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The mastermind behind the infamous bitcoin ponzi GainBitcoin has offered to compensate thousands of victims who incurred losses during the scheme which raked in an initial 1,000 crores in cryptocurrency (approx. $150 million). Now under arrest, Amit Bhardwaj has been found out as the kingpin behind India’s biggest cryptocurrency scam. The founder of now-defunct bitcoin … Continued
The post Founder of $150 Indian Bitcoin Ponzi Offers Compensation to Victims appeared first on CCN
In today’s edition of Bitcoin in Brief we cover an American anti-crypto politician who is financially backed by a legacy payments firm, a positive change of leadership at Goldman Sachs, Grayscale’s performance during first half of 2018 and much more.
He Who Pays the Piper Calls the Tune
Whenever you hear politicians talk about something and it sounds like they don’t have a clue about it, it’s important to remember that they may have a vested interest in misunderstanding it that way. An example of this came as US Representative Brad Sherman (Democrat-California) blasted cryptocurrencies at a House Financial Services Committee hearing entitled “The Future of Money: Digital Currency” on Wednesday.
“We should prohibit U.S. persons from buying or mining cryptocurrencies,” Rep. Sherman proclaimed. “Mining alone uses electricity which takes away from other needs and-or adds to the carbon footprint. As a store, as a medium of exchange, cryptocurrency accomplishes nothing except facilitating narcotics trafficking, terrorism, and tax evasion.”
And indeed members of the crypto community where quick to point out on social media and forums that, according to Opensecrets.org, his top financial contributor for 2017-2018 is Allied Wallet. This company is an online payments processor offering credit card, ACH and other legacy services that stand to lose out once wider cryptocurrency adoption makes them redundant.
DJ D-Sol Takes the Helm at Goldman
The Goldman Sachs Group, Inc. (NYSE: GS) has announced that Lloyd C. Blankfein will retire as Chairman and CEO on September 30, 2018, and that the Board of Directors has appointed David M. Solomon to succeed him in both roles. The move caught the interest of cryptocurrency investors as, while Blankfein was more hesitant, Solomon is considered to be open to trading the new instruments. “We are clearing some futures around bitcoin, talking about doing some other activities there, but it’s going very cautiously,” Solomon said in an interview on Bloomberg TV last month. “We’re listening to our clients and trying to help our clients as they’re exploring those things too.” Goldman Sachs must “evolve its business and adapt to the environment,” he explained.
On a side note, Solomon is also known for moonlighting as a DJ at exclusive parties around the world. Yes, really.
Grayscale Raised $250m in H1 2018
Grayscale Investments, the wholly-owned subsidiary of Digital Currency Group which offers trusts for BTC, BCH, ETH, ETS, XRP, ZEC, and LTC, has released a report that analyzes the activity across its product range during the first half of 2018. The figures show that the company raised almost $250 million ($248.4 million) in its investment products, making it the strongest fundraising six-month period since Grayscale launched its first product in September 2013. The company also notes that institutional investors accounted for 56% of all new investment dollars into Grayscale products, a pronounced increase in allocations to the asset class despite a broad-based price reduction across digital currencies during 2018.
Coinbase Not Approved for Securities After All?
Earlier this week Coinbase claimed that the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) had approved its takeover of Keystone Capital, Venovate Marketplace, and Digital Wealth, the three entities that Coinbase sought for their securities licenses. Now the company appears to be walking back from these statements.
“It is not correct to say that the SEC and FINRA approved Coinbase’s purchase of Keystone because SEC was not involved in the approval process,” Coinbase spokeswoman Rachael Horwitz told Bloomberg. “The SEC’s approval is not required for the change of control application,” Horwitz claimed. “Coinbase has discussed aspects of its proposed operations, including the acquisition of the Keystone Entity, on an informal basis with several members of SEC staff.”
The Stellar Development Foundation has announced a couple of days ago that it obtained a Sharia compliance certification for the network from the Shariyah Review Bureau (SRB), an international Sharia advisory agency licensed by the Central Bank of Bahrain. The foundation hopes that this certification will help grow the Stellar ecosystem in regions where financial services require compliance with Islamic financing principles. Whether or not many potential crypto investors were really waiting for a token with a Sharia-compliant sign of approval, the move certainly didn’t hurt Stellar as XLM is now worth over 50% more than just a week ago.
What do you think about today’s news tidbits? Share your thoughts in the comments section below.
Images courtesy of Shutterstock.
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The post The Daily: Anti-Crypto Politician Backed by Payments Firm, Grayscale Raised $250m in H1 appeared first on Bitcoin News.