The Hawaii State Senate has passed the first reading of a bill authorizing banks to hold digital assets in their custody. The bill was introduced on Jan. 17 by five state senators, including the only Republican member of the Senate, Kurt Fevella. It passed the first reading on Jan. 21 and was then referred to the committees on Judiciary and Commerce, and Consumer Protection and Health on Jan. 23. The bill specifies the set of provisions which a bank must adhere to in order to provide custodial services for digital…
Day: January 24, 2020
WEF Unveils Global Governance Consortium for Digital Currencies
The World Economic Forum (WEF) has created what it claims is the first ever global consortium dedicated to designing a framework for the transnational governance of digital currencies, including stablecoins. A press release shared with Cointelegraph on Jan. 24 reveals that the newly-formed Global Consortium for Digital Currency Governance will focus on the development of interoperable, transparent and inclusive policy approaches to regulating the digital currency space and fostering public-private collaboration in both developed and emerging economies. Tackling fragmentation The WEF says the impetus for the consortium’s creation is a…
10% of Central Banks Surveyed Close to Issuing Digital Currencies: BIS
A fifth of the world’s population may well have access to a central bank digital currency (CBDC) in as little as three years, according to a new survey. An annual study carried out by the Bank for International Settlements (BIS) asked 66 central banks if they were working on CBDCs and, if so, what type and how far along they were. Released Thursday, the report found that 80 percent of banks surveyed were engaged in some form of work surrounding CBDCs, with nearly 40 percent having moved to experiments and…
Bitcoin Launderer Alexander Vinnik Extradited To France
Russian citizen Alexander Vinnik accused of laundering Bitcoin via the BTC-e exchange has been extradited to France. Currently, he is at the Hotel-Dieu hospital in Paris. As his lawyer Zoe Konstantopoulou has said, she learned Alexander Vinnik extradited to France from a French colleague. The Greek authorities meanwhile have refused to provide any information, saying they ‘are unaware of that’. The French authorities have not yet allowed Konstantopoulou’s French colleague to talk to Vinnik. As the lawyer has said, they will probably try to question him tonight. But she has…
Bitcoin is Tanking Despite Coronavirus Fears, Showing Lack of Characteristics as Safe Haven
Bitcoin prices on Friday are plunging after marking their highest levels in over two months, hurt by an improving outlook of the eurozone economy, the stronger dollar, and – none the least – the Coronavirus outbreak in China. The benchmark cryptocurrency’s spot rate fell by 1.66 percent to $8,246.14 as of 11:20 UTC today. At the same time, its futures listed on Chicago Mercantile Exchange (CME) slipped 1.49 percent to trade at $8,245. The moves downhill put bitcoin at the risk of closing this week in red, it’s first negative session…
Notes From the WEF: Cash Is Dead, Long Live Digital Cash
DAVOS, Switzerland – Consensus is building on one issue at the World Economic Forum in Switzerland: Cash is dead. “Physical money is out,” said B.S. Kohli, an economic advisor to the head of the Indian state of Punjab. Mothanna Gharaibeh, Jordan’s minister of digital economy and entrepreneurship, agreed. As of this year, Gharaibeh said, Jordanians can no longer pay for government services, from taxes to hospital bills, with cash. They must use electronic payment systems like bank transfers or mobile wallets. “It’s going to be a tough transformation,” he said,…
Tether Launches Gold-Backed Stablecoin and Begins Trading on Bitfinex
Tether is now supporting a gold-backed stablecoin, Tether Gold (XAU₮), according to a Jan. 23 press release. One token represents ownership of one troy fine ounce of physical gold, currently worth approximately $1,550. The new product is available as an ERC-20 token on the Ethereum blockchain, as well as a TRC20 token on Tron (TRX). The funds are said to be backed by physical gold held in a “Switzerland vault,” the press release reads. According to Tether, its gold offering is the only product among its competition that does not…
Week Two of RBI Vs. Crypto at the Supreme Court of India
The Supreme Court of India has this week listened to further hearings in the landmark case against the Reserve Bank of India’s ban on banks’ dealings with crypto-related businesses. On Jan. 22 and Jan. 23, proceedings continued with arguments presented by Ashim Sood, the legal counsel for the Internet & Mobile Association of India (IAMAI). In the wake of both public and industry-led petitions, the IAMAI brought a consolidated case against RBI’s imposition of a blanket ban on banks’ services to crypto businesses back in April 2018, which came into…
Continued Losses See Bitcoin Erase 40% of Recent Price Rally
Bitcoin’s price pullback has gathered steam in the last 24 hours, erasing a major portion of the cryptocurrency’s recent gains. The top cryptocurrency dived out of the $8,460–$8,750 congestion zone during the European trading hours on Thursday, signaling a continuation of the pullback from Sunday’s high near $9,200. So far, the follow-through to the range breakdown has been bearish. The cryptocurrency fell to $8,230 soon before press time – the lowest level since Jan. 14, according to CoinDesk’s Bitcoin Price Index. Notably, bitcoin has now erased nearly 40 percent of…
Celsius to Begin Offering Compounding Interest on Crypto Deposits
Cryptocurrency lending and borrowing platform Celsius announced that it would be implementing compounding interest on cryptocurrencies deposited in its wallet, starting Feb. 1. The announcement came with a number of other updates in a Twitter AMA (ask me anything) with founder Alex Mashinsky on Jan. 22. Compounding interest was a feature requested by the Celsius community, and brings the community-driven app in line with venture capital-backed competitors like BlockFi, and traditional financial services. In announcement sent to Cointelegraph the firm stated: “You asked for it, and we delivered! Starting February…