BIS Bashes Miners “Stop trying to create money!” But Conveniently Forgets About Quantitative Easing
A downward turn overnight in the cryptocurrency markets, the global cryptocurrency market cap down by $8 billion to $265 billion. Bitcoin down $105 to $6516 and Ethereum fell $13 to $460.
Switzerland’s stock exchange owners SIX have announced their intent to build a fully integrated trading, settlement and custody infrastructure for digital assets which will be overseen and regulated by the FMI, FINMA and the Swiss National Bank. Essentially the aim is to create a full end-to-end service to encompass the issuing and trading of digital assets and potentially the tokenization of existing securities and non-bankable assets under the brand SIX Digital Exchange (“SDX”). The service is scheduled for launch in mid-2019.
Western Union has had a patent application published in which they aim to devise a method to increase the security of electronic payments. The application includes references to the use of biometric technology for verification purposes and interestingly references cryptocurrencies in that they would/could accommodate crypto-transfers. Although the application was initially filed in 2016, since then Western Union trailed the usage of XRP for transaction purposes and recently came to the conclusion it was still too expensive – the reality of the situation was in fact due to Western Union only actually having processed 10 transactions using XRP in their trial – little wonder they deemed it to be inefficient. One has to wonder what (if anything) they do with the patent if their approach to technology implementation is as half-assed as their testing.
The Head of the Bank for International Settlements (BIS), Agustin Carstens has been shouting at the cryptocurrency world again with a number of misguided statements, the most poignant of which was “Stop trying to create money!” in reference to miners. For some reason Mr Carstens forgets to even mention the subject of quantitative easing – the method with which governments and banks around the world essentially inject more cash into their own systems to curb inflation and cover debt – worth noting there are no caps on how much quantitative easing can be done in any jurisdiction – yet Bitcoin has a fixed supply that cannot be changed. Other suggestions from Carstens is that cryptocurrencies could bring the internet to a halt, and that central banks already provide (slow, expensive) means of electronic payment and have built up decades of trust. One has to wonder just how long highly paid officials will continue to berate the world of cryptocurrencies and the supporting technologies with such baseless arguments.
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Created: Friday, July 6, 2018
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