Saturday, January 4, 2020

Weekly crypto news roundup

 



2019 is securely in the history books, and 2020 is ready to bring a lot of positive change for the cryptocurrency and blockchain spaces. Regulation, perceptions and laws continue to migrate toward wider acceptance, even if the transition seems slow, and this year is going to be a pivotal shift for how crypto is received. Going from 2019 to 2020 means out with the old, in with the new, and this week, the transformation week between the two years, is helping to make that happen.

Despite crypto having been received well in Australia, an executive with the Reserve Bank of Australia sees BTC as a non-practical alternative to fiat. Anthony Richards admits that he has dabbled in BTC, but he doesn't believe it can take the place of regular currency. He's correct, as crypto was never meant to replace fiat, and alternatives such as BTC and ETH are not carrying the digital currency torch the way it had been intended.

Google recently banned MetaMask, an ETH wallet and decentralized web browser from the Play Store and Apple appears to be ready to follow suit. It updated its App Store policy and might force apps that offer decentralized app (DApp) browsing capabilities to pull their products. This includes the Coinbase DApp browser, which contains a MetaMask component, and the possibility isn't sitting well with anyone. The reason Google and Apple are giving for the removal of MetaMask is because it includes a crypto mining function; however, MetaMask has already denied that assertion. For Coinbase users, the only alternative would be to use the desktop version of the Coinbase Wallet.

South Korean crypto exchange Bithumb is having to dig deep into its pockets to cover a massive tax bill. The country's National Tax Service is looking for just under $69 million from the company in the form of foreign customers' withholding taxes on gains made from crypto investments. The tax bill comes as Vidente, the exchange's largest shareholder, acquired just over 34% of the exchange's parent company. Bithumb and Vidente are prepared to pay the bill to stay on the government's good side, but will contest the legitimacy of the claim, as well.

Bitcoin SV (BSV) continues to gain strength on a number of levels. Most notably, it has recently become attractive to more crypto miners, with several new pools joining the mix recently. One of the reasons for the switch is because trends are showing that mining BSV is more profitable than mining BTC. This became more pronounced after the Quasar upgrade last year, and will grow even more with the Genesis upgrade next month.

If letting an employee go for any reason results in bad blood, it's a good idea to upgrade protocols and security measures to ensure the former employee can't look for retribution. One startup out of France learned this lesson the hard way after a former employee, disgruntled at being let go for reasons that aren't entirely clear, broke into the company's network and stole 182 BTC—around $1.3 million. Knowing how the system worked, he was able to sidestep security measures that would have sounded the alarm, but someone still noticed the sudden massive loss in holdings and contacted the authorities. The theft was traced to the former employee, who will now have to answer for his actions in front of a judge.

Sunday, December 29, 2019

Huobi Japan to raise another $4.6M in January 2020

 



Huobi Japan, the Japanese subsidiary of Singaporean crypto giant Huobi Group, is set to raise $4.6 million in January 2020. The exchange will raise the funding from Japanese financial services firm Tokai Tokyo Financial Holdings. The new funding comes just two months after the exchange raised another $4.6 million from FPG Corporation.

Tokai Tokyo signed a business alliance agreement with Huobi Japan which will see the two firms strengthen cooperation in the digital assets business. The financial services giant, which mainly deals in brokerage services, believes that blockchain and cryptos are about to explode in the Japanese market and it doesn't want to miss out.

In its press release, the company stated, "Here in Japan, the relevant ministerial ordinances are expected in force next spring. Therefore, we believe that the business dealing with crypto assets and blockchain will accelerate further."

Tokai Tokyo will promote new businesses in areas such as initial exchange offerings, crypto exchange, local currency issuance and the storage and management of cryptos. The firm will "consider expanding this business to partner regional banks in the future."

Huobi Japan was launched in January 2019. This was after Huobi Group acquired local crypto exchange BitTrade in September 2018, rebranding it into its Japanese subsidiary.

In October, the company raised ¥500 million ($4.6 million) through the issuance of new shares to FPG Corporation, a Japanese financial services group. The exchange pledged to channel the funds to expansion, staying true to their promise that they would 'aggressively scale up their platform.'

While Huobi Group has found great success in Japan, its push into the United States hasn't been as smooth. Last month, the exchange announced that it was set to freeze all U.S. accounts in a few weeks' time. The freezing followed months of gradual disabling of U.S. accounts as regulatory scrutiny mounted. Users were urged to withdraw their funds before November 13 or risk losing them.

Earlier this month, its U.S. subsidiary HBUS announced that it was halting operations. HBUS was around for just over 18 months before calling it quits. In more positive news however, Huobi has continued to expand into other territories including Thailand and Argentina.

Sunday, December 22, 2019

Why Quantum Computing’s Threat to Crypto May Be Further out Than Previously Thought

 


According to one researcher, quantum computing faces more hurdles than many realize when it comes to achieving viability in breaking encryption. In a recent report Dr. Subhash Kak, Regents Professor of Electrical and Computer Engineering at Oklahoma State University, notes that there are issues such as "noise" and error correction that render the buzz about quantum supremacy when it comes to Bitcoin, still largely theoretical.

Where Quantum Supremacy Falls Short
In essence "quantum supremacy" refers to the demonstration that a quantum computer can solve some problem classical computers can't. There's no doubt this has been done, but the important question for those in the crypto space centers on what kind of problem is being solved. While the development of quantum supremacy is a haunting specter indeed for hodlers worried about their private keys, there's yet little evidence the problems being solved by this technology have much utility in cracking encryption where cryptos are concerned.

"These companies are trying to build hardware that replicates the circuit model of classical computers. However, current experimental systems have less than 100 qubits. To achieve useful computational performance, you probably need machines with hundreds of thousands of qubits," states Dr. Subhash Kak in a recent article.

Though groups like D-wave boast 2000 qubits (quantum bits) the applications are different. D-wave's focus is on optimization via a process called quantum annealing which, according to Kak, is a "narrower approach to quantum computing … where qubits are used to speed up optimization problems." As such, D-wave's claims have garnered some criticism, with one recent report on the topic calling the D-wave system "skim milk" compared to other computers.

Noise and Error Correction
The real difficulty in achieving practical quantum code-cracking resides in the concepts of noise and error correction, according to Kak. The researcher details:

"For computers to function properly, they must correct all small random errors. In a quantum computer, such errors arise from the non-ideal circuit elements and the interaction of the qubits with the environment around them."

For these reasons the qubits can lose coherency in a fraction of a second and, therefore, the computation must be completed in even less time. If random errors – which are inevitable in any physical system – are not corrected, the computer's results will be worthless.

This error correction complicates things even more. The potential for noise-related errors necessitates the need for more qubit power. Theoretical physicist Mikhail Dyakonov describes the mind-boggling nature of the problem, saying:

"While a conventional computer with N bits at any given moment must be in one of its 2N possible states, the state of a quantum computer with N qubits is described by the values of the 2N quantum amplitudes, which are continuous parameters (ones that can take on any value, not just a 0 or a 1). This is the origin of the supposed power of the quantum computer, but it is also the reason for its great fragility and vulnerability.

So the number of continuous parameters describing the state of such a useful quantum computer at any given moment … is much, much greater than the number of subatomic particles in the observable universe.

In other words, the strength of practical quantum computing can also be seen as its Achilles heel. Because it can process so many variables, these seemingly endless variables also open the door for greater potential error. Resulting hardware and logistical considerations are not as often discussed as other issues, but according to the two researchers these areas are of critical importance.

Looking Past the Hype
Dyakonov, like Kak, points to the hype surrounding the field of quantum computing, which has been in development and a source of energized speculation for decades. While it is unclear exactly how far classified government and high-level scientific developments may have come by now, as far as the educated observer can tell, it seems there's a long way to go before the Bitcoin network may be in danger. At which point algorithmic upgrades have been suggested by many as a potential solution.

Still, like ongoing work in nuclear fusion, quantum computing is not to be ignored. An unforeseen breakthrough could theoretically happen at any time and change the game. Kak, for his part, remains skeptical: "As someone who has worked on quantum computing for many years, I believe that due to the inevitability of random errors in the hardware, useful quantum computers are unlikely to ever be built."

This week in tech: Asia shows the blockchain world how it’s done

 


More global giants continue to adopt the blockchain, setting the stage for what could be a momentous year in 2020 for the technology. Asia has continued to set the pace, with China, South Korea and India leading the pack.

This week, China's internet giant ByteDance launched a new partnership which will develop blockchain and AI solutions for its clients. Known mainly as the owner of video sharing app TikTok, ByteDance partnered with a state media conglomerate to launch a new company named Pengpai Audiovisual Technology Co.

Also in China, the country's judiciary revealed this week that the smart courts system has been quite a success. The courts are powered by blockchain and other technologies such as AI and cloud computing. According to a recent report, these smart courts settled over 3 million cases between March and October this year.

The race for a national digital currency is still on course, with Iran revealing its intentions this week. The country's president proposed the development of a Muslim crypto this week, aimed at checking the U.S. economic dominance. He called on Muslim nations to come together and back this crypto as they seek to strengthen financial and trade cooperation.

This week, Thailand announced that it would apply blockchain in the issuance of its electronic visa on arrival. The application of the technology will speed up the process, while enhancing transparency and security.

Over in East Asia, a leading telecom operator announced the launch of a blockchain-based currency to revitalize the local economy. South Korea's largest telecom company KT partnered with Busan city to launch the currency, which will be known as Dongbaekjeon. Busan, South Korea's second largest city after Seoul, believes the currency will "revitalize its local economy and ease the management burden of small business."

In South Asia, one of the largest consultancy companies released a blockchain development kit this week, aiming to accelerate the development of decentralized applications. Tata Consultancy Services, which is the largest Indian company by market capitalization, launched the kit to allow enterprises to build and deploy dApps in a simplified way. The company claims that developers who use their kit write smart contracts 40% faster than their peers.

In Hong Kong, the United Nations is turning to blockchain to prevent the exploitation of migrant workers. Through the International Organization for Migration, the U.N. launched a blockchain tool that will introduce transparency in the immigration sector. Hong Kong is home to nearly 400,000 migrants and over half this number has been exploited in one way or another.

Over in the U.S., chipmaker AMD this week joined a blockchain alliance which aims at promoting the technology in the gaming industry. AMD becomes the first major player to join the Blockchain Game Alliance. Still in the U.S., a Gartner report this week revealed that over 75% of major companies are integrating blockchain and IoT in their operations. According to the report, transparency and security are some of the key reasons for the continued uptake.

The week also saw some legal enforcement, with two Russian crypto miners charged for using government resources to mine. This came just a month after a Russian nuclear physicist had been sentenced to three years in jail for a similar crime.

Sunday, December 15, 2019

Crypto bank SEBA expands to nine new jurisdictions

 


Cryptocurrency-focused banking startup SEBA Crypto AG has expanded into nine new jurisdictions, just months after it received a Swiss banking license. With its latest expansion, the startup aims to bridge the gap between digital currencies and the legacy banking system.

Based in the Zug crypto valley in Switzerland, SEBA aims to offer the crypto industry with the banking services that it has lacked for so long. It obtained a Swiss banking license in August and became fully operational a month ago.

In a statement shared with media houses, the company revealed that it had expanded into nine new jurisdictions. These are Hong Kong, Italy, Singapore, France, Germany, Austria, the Netherlands, the U.K and Portugal.

For SEBA, it's all about bridging the gap between the traditional financial system and the new era of digital currencies. As CoinGeek has reported severally, crypto companies have struggled to access even the most basic banking services. For banks, it doesn't matter how big the company is or how much revenue the bank stands to lose, as has been seen with the Bitfinex banking debacle.

In its statement, SEBA criticized the great discrepancy that exists between legacy financial institutions and the crypto industry, stating, "More than 10 years after the invention of Bitcoin, there is still a tremendous gap between traditional banking on one side and decentralized finance on the other side."

SEBA provides several products to its clients, starting with the most basic bank account needs. It'll also allow its clients to tokenize all forms of assets, from real estate to investment products. It also offers an e-wallet alongside its SEBA card. Its services allow its clients to manage five cryptos currently, among them Ether, Litecoin and Stellar. They can easily exchange these cryptos into fiat on SEBA's platform, and vice versa.

As we reported previously, SEBA's promising future has pooled in investors, allowing it to raise $100 million in its most recent funding round. At the time, the startup's CEO Guido Buehler reiterated that its mission is "to become a market leader in the convergence of traditional finance with the crypto economy."
 


Indian Parliament member Dr. Subramanian Swamy has shared his view on cryptocurrency. Advocating for India to make the transition to crypto, he reportedly said, "cryptocurrency is inevitable." The lawmaker will chair a conference at the UN India's headquarters next week where issues surrounding cryptocurrency in the country will be discussed.

Indian Member of Parliament (MP) Dr. Subramanian Swamy has reportedly spoken about cryptocurrency following the statements made last week on digital currency by the governor of the Reserve Bank of India (RBI). The Bharatiya Janata Party (BJP) MP was nominated to Rajya Sabha, the upper house of India's parliament, by the President of India. According to Sarkaritel news portal, Dr. Swamy supports cryptocurrency adoption. He was quoted on Wednesday as saying:

Last week, RBI Governor Shaktikanta Das revealed that the central bank had examined internally the prospect of issuing an RBI-backed digital rupee. "I think it is an area where the Reserve Bank will certainly look at seriously at an appropriate time," he confirmed. The RBI, however, has not warmed up to cryptocurrencies such as bitcoin. Its banking restriction, enforced on the Indian cryptocurrency industry in July last year, is still in effect. The supreme court is expected to resume hearing the arguments against this ban in January.

Crypto Conference at UN India
Dr. Swamy will chair a closed-door conference at UN India's headquarters in New Delhi on Dec. 18. The event is co-organized by United Nations Technology Innovation Lab – UNTIL India and BEGIN India Think Tank. The aim of the conference is to deliberate on methods, technology and delivery mechanisms of digital currency that make nations, particularly law enforcement, "vulnerable in monitoring/ controlling/ stopping the invisible vaporization of fiat currency towards terror financing," the UN's website described.

"The scheduled conference on cryptocurrency organized by Mr. Deepak is most timely," Dr. Swamy was quoted by the news outlet as saying. "China is today even ahead of U.S. in its decision to begin a trial run in two cities for digital transactions." Deepak Kapoor is the founder of BEGIN India Think Tank. The MP elaborated:

I advocate that India as an established super power in software should accept to make the transition to cryptocurrency.

The conference will be attended by leaders from key Indian investigative agencies, law enforcement agencies, as well as state and central government IT departments. BEGIN India Think Tank focuses on addressing issues surrounding blockchain technology and cryptocurrency. The organization helps investigative agencies, law enforcement agencies, and banking institutions understand cryptocurrency and blockchain technology. Kapoor affirmed:

We are committed to addressing a range of issues around cryptocurrency, globally, starting in India.

"From its damaging negative aspects that contribute to undermining [the] dominance of central banks in a nation's economy to the overwhelmingly positive aspects of how policy should be formulated around the most secure technology till date which was essentially built to decimate the control of governments and central banks," he continued. "We must work to retain the safeguards."

Among topics that will be discussed at the conference is how to fight crypto-related crimes. "For this purpose, such conferences are necessary in a democracy that India is, and move to digital, orderly and tamper-proof transaction just as in the past, the world had moved from barter to precious metals to paper currency for transaction," Dr. Swamy detailed.

"The banking system is unable to track any financial transactions and law enforcement agencies are helplessly unable to deal with high-end cryptocurrency technology," Kapoor remarked. "Investigators have not yet even understood how to ascertain/ calculate the total value of siphoned off funds, leave alone locating and seizing it," he further asserted.

Despite various efforts by the Indian government and law enforcement agencies, BEGIN India's founder claims that "not a single case of cryptocurrency has yet been successfully solved, nor a fraction of the money recovered so far." He noted that "Alarmingly, with each passing day, larger amounts keep getting converted to cryptocurrency and vanishing into the thin-air invisible economy, thus weakening India's economy and hurting its GDP." Meanwhile, the Sardar Vallabhbhai Patel National Police Academy has introduced a few courses teaching high ranking police officers about cryptocurrency.

Monday, December 9, 2019

Weiss Ratings Downgrades EOS to 'C-' Due to Centralization - How Other Coins Measure Up

 

Weiss Ratings has downgraded EOS once again, taking its ranking from a B to a C-. The group cites "failure to decentralize," "misallocation of resources," and a congested network as reasons for the fall in rank. "Weiss Crypto Ratings model is not based on opinion. It's driven by data," the group claims. In this article we'll look at EOS, as well as top coins by market cap to see how Weiss — and other voices in the space — view their progress.

The Weiss Rating System
The self-described "only ratings agency that combines the broadest coverage, strictest independence, complete objectivity, high ethics, and a commitment to safety," has moved EOS down to a C- rating. Weiss Crypto Ratings took to Twitter over the weekend to explain their reasoning. "We've had great respect for work and thinking that went into the EOS project. But the Weiss Crypto Ratings model is not based on opinion. It's driven by data," the group tweeted. "And that data has now caused a downgrade from B to C-. Here's why (full article to be published soon)."

The first reason given is a perceived failure to decentralize. Weiss notes that 0.01% of EOS token holders "control a whopping 68% of the voting power. So much for the claim that EOS is a major improvement over older cryptos like Bitcoin (BTC) and Ethereum (ETH)," the group asserts. The second reason is a "misallocation of resources" that has resulted in network congestion, and frozen transactions for small token holders. "The issue of CPU, REX and the clogged network is too complex to explain in a simple Twitter format, so on this topic, see our article explaining EOS downgrade in detail, coming out soon," Weiss details.

Bitcoin Core
Weiss gives market cap leader Bitcoin Core (BTC) an overall rating of B+. Weak areas are "risk" and "momentum" and the coin receives a D grade in market performance. Adoption and technology both score well, getting an A. In a recent article published to the American Institute for Economic Research, Austrian economist and Bitcoin advocate Jeffrey A. Tucker seems to lend credence to the Weiss assessment on momentum, writing:

Consider the core data. Transactions per day are at 2016 levels. Exchange volume is at 2017 levels. Wallet use is at an all-time high but most new users come in through exchanges and keep their money there, which belies the hope of disintermediated money.

Ethereum
Ethereum also garners a B+ grade by the Weiss system, ranking "fair" and "excellent" in technology and adoption, respectively. A D- score in market performance counterbalances this positivity. While some in the crypto space would argue that there are serious scaling issues with Ethereum and question the technology and adoption score, Weiss nonetheless gives these an A, based on its ranking system.

XRP
XRP receives a B-, rated "very weak" in the momentum category and "weak" in the risk category. "Momentum," according to the Weiss system, "evaluates the upside potential an investor could benefit from." XRP's most highly scored aspect is adoption, categorized as "excellent." Centralization has been a big issue in the crypto space for critics of XRP, as some see the asset as being controlled directly by the company, and not a decentralized community.

Bitcoin Cash
Bitcoin Cash, whose community and tech seek to address some of the issues with BTC Tucker discusses in his article, gets an overall Weiss rating of C. Interestingly, no 90-day performance history is shown for BCH at press time, and this metric would ostensibly be needed to effectively establish risk and momentum, both of which Weiss rates as weak. In any case, BCH shines most brightly in the category of adoption, which is rated "good."

Monday, December 2, 2019

How the Upcoming Bitcoin Halving Compares to Previous Cycles

 


For those standing very close to the crypto charts, it might be easy to get discouraged by the gloomy nature of recent markets. However, new comparisons of the current halving cycle to those in the past have emerged and might put some wind back into the sails of traders, hodlers, and cryptocurrency enthusiasts in general.

Miners Unfazed as Halving Approaches
Though crypto prices took a big dip in November, with BTC falling 30% from a high of $9,486 to a bottom of around $6,575, hash rates on both the BTC and BCH chains have held relatively steady as the next block reward halving approaches. Data also points to miners hoarding coins in view of the upcoming subsidy reduction, as the event is generally viewed as price favorable. In combination with these factors, new analysis has emerged which might suggest that in spite of the recent bearish climate, things might be more on track than previously supposed.

Comparing Halving Cycles
The image above aligns the block reward halving points of three cycles (the latter half of pre-halving and the first half of post-halving), with the three cycles anchored at a common line of 100% of the cycle low. The first two cycles which are completed, and the pre-halving phase of the current cycle are displayed. Interestingly, the movements in the latter half cycles appear to follow a similar trend. As creator of the graphic, @Chartsbtc, states on their Twitter post:

Each cycle is 210,000 blocks (~4 years). This chart starts half way through the cycle and goes half way into the next cycle. This is my attempt to show the lows prior to halving and the peaks post halving but keep everything centered around the halving.

The graphic is compelling, and has many hoping for great moves price-wise in 2020 and beyond. Discussing the methodology of creating the graphic further, @Chartsbtc explains why the green price action line does not touch the 100% cycle low level: "The low was a intraday price and the chart only plots the closing prices to the nearest 105th block. I wish I actually had prices per block." They further note that viewers should "Keep in mind that each cycle peak will likely be lower than the prior one." Even so, should the trend repeat BTC could see a post-halving peak around $80,000. Still, this is all speculation, and other factors must be kept in mind.

Into 2020
With the Bitcoin Core halving estimated to be taking place in mid-May, 2020, and the Bitcoin Cash halving to likely occur a month earlier, speculation of course abounds. Other factors playing into market perception and possibly price, such as proliferating development surrounding the BCH chain, and a trend of businesses dropping BTC as a payment method due to fees and congestion (not to mention an overall shift in attitude in the BTC community from user to mere hodler), could also have unexpected affects. If the projections of the above halving data are correct, however, everyone may be in for an interesting ride in 2020.

Sunday, November 24, 2019

58% of German Banks Charge Negative Interest Rates

 


Germany's central bank, the Deutsche Bundesbank, has conducted a survey of banks charging negative interest rates on customer deposits. Some are charging retail customers as well as corporate clients. An independent price comparison portal shows which banks are currently charging for deposits and how much they are charging.

Central Bank Survey
A growing number of German banks are passing on the burden of negative interest rates to their customers as the European Central Bank (ECB) continues to maintain a negative interest rate policy (NIRP). The current ECB deposit rate is -0.5%, the lowest on record.

"Many banks in Germany have introduced negative rates on deposits," the Deutsche Bundesbank wrote in its November monthly report after conducting a survey of 220 banks at the end of September regarding their negative interest rate policies. The central bank believes that the surveyed banks constitute a representative sample of the overall sector, thereby allowing it to make qualified statements concerning the spread of negative interest rates on customer deposits in the German banking sector. The Financial Times summarized:

58% of the banks said they were levying negative rates on some corporate deposits and 23% said they were doing the same for retail depositors.

Even the country's largest banks have started charging their customers for deposits. Deutsche Bank CFO James von Moltke told analysts last month that his bank had stepped up its attempts to pass on the negative rate burden to corporate clients. "This is more difficult in the private bank business than in corporate or institutional deposits and we don't see an ability to adjust legal terms and conditions of our accounts on a broad-based basis," the CFO was quoted as saying. He added that his bank had also approached some retail clients with large deposits on the matter.

Similarly, Commerzbank CFO Stephan Engels revealed earlier this month that his bank had already been approaching wealthy retail customers holding deposits of more than 1 million euros ($1.11 million).

Which Banks Charge Negative Interest Rates
While the central bank did not provide a list of banks that are charging negative interest rates, German consumer price comparison platform Verivox has published several lists of banks that fall into this category. The platform claims to have examined the policies of over 800 German banks.

According to its current database, at least 21 banks have published their negative rate policies online and seven others are charging fees for money market accounts which are usually free. Further, the platform lists 20 other banks that the media have reported as charging for deposits but they have not published the information on their websites.

Verivox's list of 21 banks currently charging negative interest rates on customer deposits.
News.Bitcoin.com was able to verify that a number of banks on the Verivox list do charge negative interest rates including Berliner Volksbank, Ethikbank, Skatbank, Sparda-Bank Berlin, Sparkasse Harburg-Buxtehude, Volksbank Eisenberg, and Volksbank Fürstenfeldbruck. Berliner Volksbank, one of the largest German cooperative banks, started charging -0.5% on accounts with at least 100,000 euros on Oct. 1, as news.Bitcoin.com previously reported.

Following the move by the ECB to lower the key interest rate to -0.5% in September, Skatbank announced its negative interest rate policy, emphasizing:

We can no longer economically accept responsibility for maintaining the ECB negative interest rate in full. So far, negative interest rates were only incurred for large-scale depositors. As a result of its actions, the ECB leaves us no other choice than to further restrict our deposit business.

Another German price comparison website, Biallo, claims to have found more than 150 German financial institutions that are charging negative interest rates. Founder Horst Biallo wrote, "A biallo.de survey of just over 1,300 banks and savings banks shows that a good 150 financial institutions are now charging negative interest, 52 of which are private sector institutions." However, his list is not publicly available.

First Bank to Charge Small Savers Negative Rate
Among the 21 banks on Verivox's list is Volksbank Fürstenfeldbruck, a cooperative bank located west of Munich. The bank has recently been in the news for being the first German bank to pass on the cost of negative interest rates to even small savers.

The bank explained that it will collect a custody fee of -0.5% on instant access savings accounts, the Financial Times detailed. "New clients who also do other business with the bank, such as real estate financing or pension planning, will be exempt from the charges." The bank's website shows that accounts opened on Oct. 1 or later with deposits of 0.01 euro or more will be charged the fee. Inundated with inquiries about its new policy following media reports, the bank put up an explanation on its website, emphasizing that only new clients are affected. Verivox CEO Oliver Maier was quoted by the Financial Times on Tuesday as saying:

Negative interest rates have now reached the average saver.
What do you think of a growing number of German banks passing on the burden of negative interest rates to their customers? Let us know in the comments section below.

Sunday, November 17, 2019

Bitcoin Cash Community Funds Eatbch Trip to Ghana

 

This week members of the Bitcoin Cash (BCH) community donated funds to Eatbch South Sudan volunteer Thiong Deng so he could spread the word about the benefits of BCH at the Young African Leaders Summit. According to Deng, his journey to Uganda and Ghana has been fully funded which includes flight, hotel, visa costs, and a ticket to the event.

Eatbch South Sudan Volunteer Heads to the Young African Leaders Summit
Eatbch is easily recognized as the Bitcoin Cash community's most favorite charity because the nonprofit organization has been using BCH to help people throughout Venezuela and South Sudan. People can follow Eatbch on Twitter and see how the "peer-to-peer electronic cash-to-food system" feeds families and children in need regularly. Just recently, the nonprofit published a new website called eatbch.org that shows the tremendous work being done in South Sudan and Venezuela. Moreover, the website's visitors can donate bitcoin cash directly to the effort so people can help others experiencing economic hardships and difficult times.

Last September, news.Bitcoin.com reported on Eatbch South Sudan leader Emmanuel Lobijo, who was invited to attend the UN Secretary-General's Climate Action Summit. Lobijo joined Greta Thunberg and many other activists at the UN's event in New York. The Eatbch South Sudan leader explained how BCH can "bridge access to the world" and how the charitable organization is using bitcoin cash to fight water wars, drought, and famine in the African country.

This week members of the BCH community funded Eatbch South Sudan volunteer Thiong Micheal Deng's trip so he could attend the Young African Leaders Summit in Ghana. On November 13 and 14, BCH proponents on Twitter and Reddit asked the community to help fund Deng's trip. "Can we get Thiong, an Eatbch South Sudan representative to the Young African Leaders Summit? He still needs $800 dollars of funding," one Reddit post asked. Deng disclosed all the anticipated expenses for the trip to the Young African Leaders Summit and thanked the community for the "generous donations" but he still had $835 left to raise.

BCH Community Funds Travel Expenses to Ghana
On Twitter, software engineer Josh Ellithorpe (who designed the eatbch.org website) also asked BCH supporters to help fund Deng's travels. "This is the last day to get Thiong (an Eatbch South Sudan representative) to the Young African Leaders Summit," Ellithorpe tweeted. "Let's support him in spreading the word about Bitcoin Cash and the excellent work of Eatbch."

After a few BCH proponents made requests to the community, Deng managed to get the funds needed to embark on the trip. "Thanks, Bitcoin cash community," Deng said. "[You] have set up my journey to Uganda — 18-hour bus drive — then flight to Ghana for the conference. BCH you made it happen — thanks for the love." The BCH community members who helped fund the trip and the work being done by Eatbch at large demonstrates how passionate BCH proponents are about peer-to-peer cash. The work Eatbch does each and every day showcases how decentralized, borderless cryptocurrencies can truly revolutionize the global economy.

Saturday, November 16, 2019

Royal Bank of Canada Patents Point to Crypto Exchange Launch

 


The largest bank in Canada by market capitalization, Royal Bank of Canada (RBC), is reportedly opening a cryptocurrency exchange. Patents have been discovered that reveal some of the technology the RBC may implement, which could be used to bring digital currency trading to the bank's 16 million clients.

The Royal Bank of Canada May Launch a Crypto Exchange
A report stemming from the publication The Logic claims that the RBC is currently exploring the construction of a digital currency trading platform. Columnist Zane Schwartz wrote on November 11 that the bank will give customers the ability to invest and trade cryptocurrencies like BTC and ETH. The report reveals RBC is interested in creating funds with a basket of digital currencies as well. "The bank is also looking into letting customers open bank accounts containing cryptocurrency," Schwartz wrote. If the crypto trading platform comes to fruition then the Canadian bank will be the first financial institution in the country to offer such services.

At the last World Economic Forum in Davos, the Royal Bank of Canada's CEO, David McKay, told the public that the financial institution aims to leverage distributed ledger technology. "We're experimenting with taking an asset and breaking it into smaller pieces and registering that in a decentralised register called blockchain. You can take an asset or even a company and create a unit on a decentralised blockchain and then sell that into the marketplace," McKay said during a panel discussion.

Speaking with Schwartz, RBC spokesperson Jean Francois Thibault explained that the Canadian financial institution "like many other organizations, files patent applications to ensure proprietary ideas and concepts are protected." Thibault would not confirm to Schwartz whether or not the RBC would be constructing a new trading platform for cryptocurrencies.

Royal Bank of Canada Patents Point to Crypto Exchange Launch
A while back, RBC's wealth management service published a report outlining the benefits and risks tethered to digital currencies.
As early as 2015, the RBC expressed interest in blockchain and McKay explained that the technology was a "quantum innovation." "It is a brand-new technology, and what do we really know about it? How cyber-secure is it? We are going to learn a lot more about it," McKay told the publication American Banker. "Given what is at stake, it is not something you can rush to market with and fix as you go. You want it to work."

Royal Bank of Canada Patents Point to Crypto Exchange Launch
Royal Bank of Canada patent CA 3038757: A system and method for handling crypto-asset transactions.
Alongside this, RBC's wealth management arm also published a report called "Bitcoin and beyond: Five things to know about cryptocurrency." The RBC study notes there are plenty of risks associated with decentralized blockchain assets, but in the long run "the possibilities of cryptocurrencies are undeniable."

International Law Enforcement Conference Addresses Crypto and the ‘Criminal Economy’

 

The 2019 National Proceeds of Crime Conference (NPOCC) held in Brisbane, Australia from November 13-15 addressed "Globalisation and Digitisation of the Criminal Economy," and featured 200+ delegates hearing from representatives of organizations such as the Australian Federal Police, Singapore and New Zealand police, United States Department of Justice, and the Australian Criminal Intelligence Commission. The conference set out to address how to better seize criminal profits and face challenges to law enforcement presented by the darknet and cryptocurrencies like bitcoin.

Addressing Crypto Crime
Justine Gough, Acting Assistant Commissioner for the Australian Federal Police (AFP), stated that "Advances in technology, like cryptocurrency and encrypted communications have changed the way criminals acquire and hide their assets" and that "Seizing and removing the profits of crime is one of the most effective capabilities we have in impacting organised criminal networks."

The international conference, which aimed to address such topics as "the Darknet, trends in money laundering, collaboration in investigations; evidence collection in an age of cloud-based data and the monetisation of cybercrime" focused on how relevant organizations respond to crime in an age where cryptography and digital assets like bitcoin have enabled greater efficiency in skirting law enforcement. The push echoes recent sentiment from the U.S. Federal Bureau of Investigation (FBI) whose director Christopher Wray claimed problems presented by such technologies are getting "bigger and bigger."

Money Laundering and the Darknet
Since the takedown of infamous darknet marketplace Silk Road in 2013, bitcoin and crypto have been in the mainstream media spotlight, and in the sights of law enforcement and financial regulators worldwide when it comes to money laundering and illegal activities. U.S. Treasury Secretary Steven Mnuchin has claimed that bitcoin and crypto are a "risk to the financial system" while pushing back against the idea that the world reserve U.S. dollar is used comparably. "I don't think it's been successfully done with cash. I'll push back on that. We're going to make sure that bitcoin doesn't become the equivalent of Swiss-numbered bank accounts," Mnuchin stated in July.

AFP Acting Assistant Commissioner Gough says of the NPOCC:

We are honoured to have representatives from law enforcement, government departments and private enterprise … share their insights and to collaborate on how we respond to emerging technologies like cryptocurrency.

The response has already been swift and formidable. From numerous arrests of those transacting and trading in crypto — both criminal and non-criminal elements alike — to powerful tax agencies like the IRS issuing thousands of warning letters to potential crypto non-filers and money launderers, it's clear law enforcement worldwide means business. The question of what kind of similar enterprise in trafficking, money laundering and tax evasion is being done with the almighty USD remains noticeably off the table, however.

Worldwide Enforcement Efforts
It will be interesting to hear the conclusions of this week's Brisbane conference, and to see what developments proceed from the talks on monetization of cybercrime via crypto. Already global policymakers and joint enforcement initiatives such as the Financial Action Task Force (FATF) and the Joint Chiefs of Global Tax Enforcement (J5) are working to broaden the intelligence and enforcement dragnet for targeting unauthorized and permissionless financial activity worldwide. As the NPOCC's problematic "Digitisation of the Criminal Economy" continues, the crypto space can expect even more scrutiny and heightened KYC/AML compliance measures in 2020.