Tag: Cryptocurrencies

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Bank of Thailand Permits Local Banks to Establish Subsidiaries for Cryptocurrencies-Related Businesses

The Bank of Thailand (BoT) has just enabled local banks to establish subsidiaries to deal with cryptocurrencies, according to the local news agency, the Blognone. According to a regulatory notice issued by the Bank of Thailand on August 1st, Thai banks can migrate to digital assets, offer crypto-related brokerage solutions, operate cryptocurrencies businesses and conduct investments in cryptos via subsidiaries.

Nevertheless, the latest news has confirmed that all banks and other financial institutions are still prohibited from trading directly in cryptocurrencies.

While banks are currently authorized to set up subsidiaries to operate with cryptocurrencies, such branches are not eligible for the provision of cryptocurrency-related products to their clients and the general public, and can interoperate only with other firms that are accredited by the Thai Securities and Exchange Commission (SEC) and the Office of the Insurance Commission (OIC).

Crypto-related subsidiaries should not counsel clients to invest in cryptocurrencies or buy cryptos with credit cards, the Bank of Thailand stated

Branches are authorized to make investment funds accessible to clients, except if they are willing to invest in digital assets that are intended to encourage “financial innovation” or expand the value of financial services, in which case they may use the Bank of Thailand (BoT) regulatory sandbox.

Earlier in 2018, the Bank of Thailand published a directive banning Thai banking entities from trading and investing in cryptocurrencies and engaging in the setting up of cryptocurrency exchanges, which are allegedly legitimate to do business across Thailand.

Also, the Bank of Thailand demanded banks not to counsel individuals about investment or trading in cryptocurrencies, and ban clients from purchasing cryptos with credit cards.

At the beginning of June, the Bank of Thailand unveiled that it is looking to deliver a “new way of carrying out an interbank settlement” through the use of a digital asset issued by the central bank, the CBDC. The adoption of its own cryptocurrency should lower transaction fees, as well as transaction and validation times “due to the reduced intermediation process required compared to current systems,” as the bank reported.

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Cryptocurrencies And Blockchain Technologies Challenge The Conventional Banking System

With the emergence of Bitcoin (BTC) in 2009 and the subsequent launch of many other cryptocurrencies, most of them decentralized, essential challenges have arisen for banks. Namely, they work under a fully centralized scheme, which prevents them from achieving the efficiency and convenience of specific functions of this new type of digital assets.

Centralization of banks Vs. Decentralization of cryptocurrencies

If we start from the centralized nature of banks and contrast it with the Peer-to-Peer (P2P) infrastructure of Bitcoin (BTC) and the majority of the cryptocurrencies, the storage of transaction information is the first significant difference between the two platforms.

While banks store all their users’ transactions in large accounting ledgers that remains on the central servers of each bank, the ledger used by the cryptocurrency transactions is distributed, meaning its replicated at each node of the blockchain network.

Cryptocurrencies offer faster transactions in comparison with banks

Another great feat of the cryptocurrencies, in comparison with the banks, is that a cryptocurrency transaction is conducted fast, almost instantly in the case of some cryptos, which is also another advantage of decentralization.

In the cryptocurrencies universe, the transaction takes the same amount of time, regardless of the day of the week, or whether it is weekend or not, but more importantly, for transfers and payments with cryptocurrencies there are no geographical boundaries.

Blockchain and cryptocurrencies can replace banks, undoubtedly

In addition to the advantages of higher availability of information and more autonomy and flexibility in money transfers, since no central body will restrict or control the amounts transferred, cryptocurrencies offer another advantage over banks, namely, the unbanked can access to manage their own finances through this type of digital assets, which also provide the benefit of their total portability.

The crypto wallet is available anywhere and anytime, no matter it is day or night, or weekend. The only condition is to have an Internet connection.

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Paul Krugman, Nobel Prize Winner And Economist, Stated That Cryptocurrencies Are Useless

Nobel Prize winner Paul Krugman expressed skepticism towards cryptocurrency. Nobel laureate and economist Paul Krugman has voiced his skepticism regarding the value of cryptocurrencies in a comment issued in the New York Times on July 31st.

Krugman, who was awarded the Nobel Prize in Economics in 2008, strengthened his position as a “crypto-skeptic” by highlighting the high transaction fees and “lack of tethering” in the context of cryptocurrencies.

Krugman illustrates how the history of money has gradually moved from gold and silver coins, with an intrinsic value, to banknotes, and lately to credit cards and various other “digital methods,” all of which aimed at cheapening up purchases.

For Krugman, “those who celebrate the cryptocurrency effectively honor the use of advanced modern technology to reverse the currency system by 300 years.”

“Why would you do that? What problem does it solve? I still don’t have a clear answer to that question,” he added.

Paul Krugman challenges crypto enthusiasts to prove his crypto-skepticism wrong

Concerning the lack of crypto “tethering,” Krugman states that “total collapse is a real possibility.”

“If speculators were to have a collective moment of doubt, they suddenly feared that Bitcoin (BTC) was worthless, well, Bitcoin (BTC) would become worthless,” said Krugman.

The economist also observes that while there could be a “potential balance” in the future, only Bitcoin (BTC), out from all cryptocurrencies, simply for “black market transactions and tax evasion,” will most likely survive the collapse.

Krugman finishes by declaring that he may be wrong and then adds a call to all crypto enthusiasts to demonstrate that his crypto-skepticism is erroneous.

But if you want to argue that I am wrong, please answer the question – What problem does the cryptocurrency solve? Don’t try to silence the skeptics with a mixture of technobabble and libertarian derp, concluded Paul Krugman, former Nobel Prize winner for economics in 2008.

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Gibraltar United To Become The First Soccer Team In The World To Pay Its Players With Cryptocurrencies

Gibraltar United will become the first European soccer club to pay its players in cryptocurrencies. Thanks to a partnership with Quantocoin, the longest-running team in Gibraltar will become a pioneer in this type of operation.

Gibraltar is a country with an extremely open stance towards cryptos and blockchain technology

Thus, it is no surprise that a team from the country’s top professional soccer division is taking such a step. The club owner, Pablo Dana, has already said that all player contracts will include cryptocurrency payment arrangements for the coming season, as The Guardian reported.

Dana is an investor in Quantocoin, a project that seeks to launch a blockchain-based mobile banking application this year. Also, Heritage Sports Holdings, the team’s shareholder group, signed a partnership agreement with the company. According to this deal, players, fans and company employees can use Quantocoin’s services. That includes the possibility for the group to use cryptocurrencies to buy players.

Gibraltar was the first place that regulated gambling companies 20 years ago when everyone saw them as horrible. The government established anti-money laundering and compliance regulations and created a platform. They have the intelligence to do the same with cryptocurrency.

Pablo Dana, Gibraltar United’s owner

Cryptocurrencies and soccer have been increasingly intertwined in recent months

In mid-July, Didier Drogba, the striker of the Ivory Coast national team and clubs such as Chelsea, in England, the UK, became the commercial face of All.me, a social networking project with its own crypto token that seeks to share advertising revenue with users.

At the end of June, the Brazilian soccer clubs Atletico Paranaense and Corinthians unveiled the plans they have for using cryptocurrencies for 2019, in an initiative that involves the payment of salaries with cryptos, as well as allowing the fans to get involved.

Other soccer players such as Lionel Messi, James Rodriguez, Ronaldinho, Iniesta, or Puyol have also been associated with projects associated with blockchain technology or cryptocurrencies, demonstrating how this is a trend that is gaining momentum.

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Bank Of Canada Study Reveals That Bitcoin (BTC) Awareness Increased Among Canadians

Canadian citizens used Bitcoin (BTC) primarily for investment purposes in 2017, according to a recent study by the Bank of Canada (BoC) published on July 23rd. The study is an update of the results of the Bitcoin Omnibus Survey conducted by the Central Bank of Canada in a short period between December 12th and 15th 2017, just days before Bitcoin (BTC) reached its record high of $20,000 on December 17th.

According to the survey results, Canadians have mainly used the leading cryptocurrency in the world for investment purposes in 2017, rather than for transactions, which had previously been cited as the main reason for dealing with Bitcoin (BTC) in 2016.

While 58 percent of respondents said the primary motivation was “like an investment,” 12 percent of Canadian Bitcoin (BTC) holders allegedly used BTC because “My friends own Bitcoin,” 7 percent because of their interest in new technologies, while 6 percent to buy goods and services on the Internet.

Among non-transactors, those who used Bitcoin (BTC) did that “once or twice, but not regularly,” while the vast majority of them, 77 percent, responded that they invested in Bitcoin (BTC).

Bitcoin (BTC) awareness increased among Canadian in 2017, in comparison to 2016

Residents of British Columbia presented the highest level of knowledge about Bitcoin (BTC), with reported growth from 77 percent in 2016 to 93 percent in 2017. The prairies ranked second in the Canadian provinces regarding BTC awareness, while Ontario residents came third.

Canada’s provincial financial regulator, the Ontario Securities Commission (OSC), had published a report in late June concluding that only three percent of Ontario residents had completed a brief test on the basics of Bitcoin (BTC), while 34 percent demonstrated common knowledge.

In early June, the Bank of Canada ‘s executive, James Chapman, said that cryptocurrencies pose no risk to the fiat money system, saying the only thing that can be a threat in a case of hyperinflation. Ontario in third place, according to the study.

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