Category: Cryptocurrency

The NYSE Bitcoin Exchange

Daily Fintech, Llias Louis Hatzis | August 6, 2018
The announcement that International Exchange (ICE), operator of 23 leading global stock exchanges including the New York Stock Exchange, announced it is partnering with Microsoft and Starbucks to create a Bakkt, a Bitcoin trading platform that allows investors to buy and hold Bitcoin without the use of futures, derivatives or other types of contracts. “This is game-changing,” wrote Daily Fintech’s Llias Lois Hatzis. “Individuals would be able to add Bitcoin to their IRA or 401k. It will open up access to millions of people who have been sitting on the sidelines not able to add Bitcoin to their portfolios.”

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Fed Chairman Powell Addresses Cryptocurrencies, Wolf Richter | July 23, 2018
During his testimony before the House of Representatives Committee on Financial Services, Federal Reserve Chairman Jerome Powell, was asked by representatives Patrick McHenry (R-NC) and Juan Carlos Vargas (D-CA) about the Fed’s thinking on cryptocurrencies. “Instead of pussyfooting around the issues, as Fed chairs used to do, he refreshingly stepped right into it, with both boots on the ground, so to speak,” wrote Wolf Richter.

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Competition Issues in the Area of Financial Technology

European Parliament Think Tank, Fraile Carmona, A. Gonzáelez-Quel Lombardo, R. Rivera Pastor, C. Tarín Quirós, J. P. Villar Garcia, D. Ramos Muñoz, L. Castejón Martín | July 2018
This EU study focuses on analyzing potential anti-competitive factors and their impact both in the FinTech ecosystem and in the concrete services of banking, payments, digital currencies, personal finance, InsurTech and enabling technologies and infrastructures. “The arrival of permissioned cryptocurrencies promoted by banks, even by central banks, will reshape the current competition level in the cryptocurrency market, broadening the number of competitors,” cautioned the authors. “However, the market power of banks in traditional banking services might be used to limit competition in the cryptocurrency market through pre-emptive acquisitions or predatory pricing schemes.”

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FSB Develops Framework for Financial Stability Implications of Crypto-Assets

Financial Stability Board and the Committee on Payments and Market Infrastructures | July 16, 2018
On July 16, a crypto asset monitoring framework, focusing on channels from crypto asset markets that may give rise to financial stability risks, was presented to G20 finance ministers and central bank chiefs by the Financial Stability Board and the Committee on Payments and Market Infrastructures. “Monitoring the size and growth of crypto asset markets is critical to understanding the potential size of wealth effects, should valuations fall,” warned FSB. “Market-related figures, such as metrics on prices, trading volumes, and volatility may be manipulated by generally prohibited practices such as wash trading, spoofing, and pump and dump.”

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