Image Image Image Image Image Image Image Image Image Image Image Image

| February 22, 2019

Scroll to top

Top

Bank Archives -

Deutsche Bank Lost $1.6 Billion on a Bond Bet

February 21, 2019 |

One of the banking industry’s biggest soured bets since the financial crisis involved a complex municipal-bond investment. Warren Buffett was enmeshed in the deal.
WSJ.com: What’s News Asia

Worried over possible default, Deutsche Bank considered extending Trump’s loan terms

February 20, 2019 |

Top Deutsche Bank AG executives were so concerned after the 2016 U.S. election that the Trump Organization might default on about $ 340 million of loans while President Trump was in office that they discussed extending repayment dates until after the end of a potential second term in 2025, according…


L.A. Times – Business

Bank of Spain Report: Bitcoin Is a Solution for a System Without Censorship

February 19, 2019 |

Bank of Spain Report: Bitcoin Is a Solution for the Creation of a System Without Censorship

A recent report published by the Bank of Spain states that Bitcoin is a solution for the creation of a system without censorship. This is in contrast to public comments made by most central bankers who are prone to attack cryptocurrency with little insight into why it is needed.   

Also Read: Survey: ‘Blockchain’ Was Most Overrated Buzzword of 2018

Explaining Peer-to-Peer Electronic Cash to Bankers

Banco de España, Spain’s central bank and supervisor of the Spanish banking system, recently published a report aiming to explain how Bitcoin works. The document details the functions of the cryptocurrency, as well as analyzing its strengths and weaknesses from the point of view of the established financial order. It also explains that the best way to understand the aims of the new system is by consulting the original Bitcoin whitepaper written by Satoshi Nakamoto.

Bank of Spain Report: Bitcoin Is a Solution for a System Without Censorship

The report mentions that according to Nakamoto the world needs “an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.” Thus the goal is to create an electronic payment system similar to cash which allows remote payments without the need for the intermediation of institutions such as banks. This is meant to enable truly irreversible payments and reduce intermediation costs.

A System Without Censorship

The report concludes that cryptocurrency was envisioned as a payments system without the possibility of transaction censorship or a central authority with the power to authorize or reject transactions. It states that “bitcoin is an imaginative and elegant solution to this problem” of “the creation of a system without censorship.” However the central bank’s report also determines that traditional payment systems do not seek to resolve this problem and therefore cryptocurrency is not an alternative to them.

Bank of Spain Report: Bitcoin Is a Solution for a System Without Censorship

In line with the common position usually expressed by central bankers, the report ends by saying: “Taking into account that for most agents the existence of trusted intermediaries is not a problem, along with the costs and inefficiencies generated when an attempt is made to eliminate these intermediaries, it does not seem that bitcoin, as it currently stands, is going to have a significant impact for the financial sector as an alternative payment system to the traditional channels.”

What do you think about the conclusions of this report? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

The post Bank of Spain Report: Bitcoin Is a Solution for a System Without Censorship appeared first on Bitcoin News.

Bitcoin News

Deutsche Bank reverses pledge to help distressed homeowners

February 16, 2019 |

Deutsche Bank has decided that none of the more than $ 4 billion it promised to spend on consumer relief after the global mortgage crisis will go to distressed U.S. homeowners, according to a report by the monitor of the 2017 settlement.

Instead, the consumer-relief money will be spent on originating…


L.A. Times – Business

Central Bank Digital Currencies Are a Trojan Horse for Bitcoin

February 16, 2019 |

Central Bank Digital Currencies Are a Trojan Horse for Bitcoin

Central bank digital currencies (CBDCs) and Bitcoin could scarcely be more different. One is permissioned, the other permissionless; one centralized, the other decentralized; one is censorable, the other censorship-resistant. Despite their dissimilarities, CBDCs might just be the best driver yet for Bitcoin adoption.

Also read: Mobile Gifting Platform Swych Announces Cryptocurrency Support

CBDCs Are the Best Thing That Could Have Happened to Bitcoin

When JP Morgan unveiled its eponymous stablecoin on Feb. 14, the sound of sniggering could be heard throughout the cryptosphere. Aside from the irony given CEO Jamie Dimon’s previous Bitcoin bashing, there was the notion, advanced by benighted mainstream media, that Jpmcoin, which runs on a permissioned ledger and settles transactions between JP Morgan banks only, presented a threat to Bitcoin.

“JPMorgan Just Killed the Bitcoin Dream” screamed one headline, prompting further sniggers from the crypto community. CBDCs and cryptocurrencies exist on parallel tracks that do not cross. The former serves as a type of stable digital currency that is issued and wholly controlled by banks. CBDCs share some characteristics of cryptocurrencies in facilitating fast and low-cost cross-border transfers, but the similarities end there.

The greatest threat these instruments present is not to cryptocurrencies such as Bitcoin, but rather to slow and inefficient settlement systems such as Swift. Last year, the former chair of the United States Federal Deposit Insurance Corporation, Sheila Bair, said CBDCs could have “severely negative consequences” for the “bank-dominated payments system.” CBDCs, including stablecoins such as Jpmcoin, may deleteriously affect the incumbent financial system as well as Ripple’s native cryptocurrency, but their impact on Bitcoin is likely to be positive.

Central Bank Digital Currencies Are a Trojan Horse for Bitcoin

How CBDCs Are Bullish for Bitcoin

The emergence of central bank digital currencies serves to legitimize and normalize digital currencies as the future of money. Within this broad context, any attention they receive helps to put further distance between Bitcoin and the tired “drugs, speculation, and tax evasion” narratives. Should CBDCs gain traction, however, people will quickly discover that they offer few improvements over the current financial system and come bearing several distinct disadvantages.

Digital currencies transferred via permissioned ledgers or pseudo-blockchains facilitate real-time tracking of customer spending at all times. Anyone deemed to be persona non grata, or even suspected of transacting with people deemed undesirables, is liable to have their funds frozen and account suspended. These provisions are already in place with the legacy financial system, but CBDCs will amplify the powers available to governments and regulators, with sophisticated forensics tools providing unprecedented insights into the spending habits and social behaviors of citizens.

In a world of CBDCs, there will be no place to hide and no freedom to transact without being authorized by the powers that be. It’s easy to imagine a dystopian future, based on China’s social credit system, in which citizens are billed for their healthcare and screened for employment based on their purchase history and social circle. The rise of central bank digital currencies will also bring benefits, of course, such as lowering the cost and time involved with wiring money abroad. Given the notoriously siloed nature of financial houses, however, it would be optimistic to expect CBDCs to operate globally. Just like Jpmcoin, it is likely that there will be little to no interoperability with CBDCs, preventing these digital currencies from even realizing their limited potential.

As a rising tide raises all ships, increased adoption of digital currencies benefits Bitcoin. When users of central bank digital currencies tire of their limited functionality, lack of privacy, and susceptibility to censorship, they’ll come searching for an alternative means of sending money cheaply, quickly and permissonlessly and they’ll find Bitcoin. CBDCs make for poor digital currencies but are a great Trojan horse for Bitcoin.

Do you think CBDCs will benefit or threaten Bitcoin? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

The post Central Bank Digital Currencies Are a Trojan Horse for Bitcoin appeared first on Bitcoin News.

Bitcoin News

Amazon, Bank of America and Facebook are under pressure to reveal their median gender pay gap

February 15, 2019 |

An investor activist said Wednesday it is targeting 11 additional financial and tech firms — including Facebook, Google parent Alphabet, JPMorgan Chase and Bank of America — urging them in new shareholder proposals to disclose an unfiltered and likely unflattering global gender pay gap statistic…


L.A. Times – Business

Court Rules Brazil’s Bitcoin Max Exchange Can Keep Bank Account

February 13, 2019 |

Court Rules Brazil’s Bitcoin Max Exchange Can Keep Bank Account

Brazilian cryptocurrency exchange Bitcoin Max has won in court the right to keep its checking account with Banco Santander. According to the presiding judge, the bank has not met its obligation to notify the crypto company of the closure in advance.   

Also read: Hacked NZ Exchange Cryptopia Allowed to Reopen

Closing of Account Deemed Unlawful

The decision was handed down by Judge Geilza Fátima Cavalcanti Diniz from 3rd Civil Court of Brasilia, the capital. It confirmed an injunction granted to the digital asset trading platform in September 2018 by Judge Ana Catarino of the 8th Federal District Court, Portal do Bitcoin reported. Bitcoin Max filed a lawsuit against Santander in August after its account was closed without any formal notice.

Court Rules Brazil’s Bitcoin Max Exchange Can Keep Bank Account

Judge Cavalcanti Diniz stated in a previous ruling last summer that the closing of the account is in the powers of the financial institution according to the norms established in article 10 of Resolution 2,025/93 of the Central Bank of Brazil (Bacen). Now, she has deemed unlawful the rescission of the contract by the defendant, Santander, because there was no proof that the plaintiff, Bitcoin Max, was notified about the closure of its account. According to the same resolution of Bacen, banks can terminate accounts only after sending a written notice of intention to the account holder.

The cryptocurrency exchange had its claim for compensation for moral damages dismissed as unfounded. The judge said the closure of its account is not by itself a violation of personal rights. She also noted that the case should not be treated according to consumer law as the bank account was used to facilitate business activities.

Santander Accused of Abusing Rights

Bitcoin Max’s lawyer Leonardo Ranna explained the judge’s decision as follows: “At first, she thought the bank can terminate the agreement and close the account. But what happened was that in the course of the proceedings we argued that the bank would not have complied with the Central Bank’s resolution that requires it to provide prior notification and present a plausible reason for the termination of the account agreement.”

Court Rules Brazil’s Bitcoin Max Exchange Can Keep Bank Account

The judge understood, Ranna added, that Santander abused its rights as it did not pay attention to what is prescribed in the Bacen resolution. But he also emphasized that the ruling did not mention the fact that Brazilian banks orchestrated an operation to close the accounts of all companies operating with cryptocurrencies. He insisted this should have been taken into account since there’s evidence that’s what happened.

The latest decision comes after a court in Rio de Janeiro recently ruled in favor of another Brazilian crypto exchange, Mercado Bitcoin, in a case over the closure of one of its checking accounts. It turned down an appeal filed by Banco Sicoob against the decision of a district court to allow the trading platform to keep its account open. In that case, the judge insisted there should be a justified reason to close an account, which the bank did not provide.

What is your opinion about these court decisions in Brazil? Share your thoughts on the subject in the comments section below.  


Images courtesy of Shutterstock.


Make sure you do not miss any important Bitcoin-related news! Follow our news feed any which way you prefer; via Twitter, Facebook, Telegram, RSS or email (scroll down to the bottom of this page to subscribe). We’ve got daily, weekly and quarterly summaries in newsletter form. Bitcoin never sleeps. Neither do we.

The post Court Rules Brazil’s Bitcoin Max Exchange Can Keep Bank Account appeared first on Bitcoin News.

Bitcoin News

Italy’s Populist Government Takes Aim at Central Bank

February 13, 2019 |

Italy’s populist government launched an unprecedented attack on the country’s central bank over the weekend, saying its top brass should be replaced because it had failed to supervise effectively the country’s troubled banking sector.
WSJ.com: What’s News Europe

Brazilian Crypto Exchange Wins Legal Battle Over Closed Bank Account

February 10, 2019 |

Brazilian Crypto Exchange Wins Legal Battle Over Closed Bank Account

A court in Rio de Janeiro has ruled in favor of Brazilian crypto exchange Mercado Bitcoin in a case over the closure of one of its checking accounts. The judicial instance turned down an appeal filed by Banco Sicoob against a decision by the district court in Barra da Tijuca which granted the exchange the right to keep its account open.  

Also read: Coinsquare Lays off 40 Employees in a Troublesome Month for Crypto Exchanges

Banks Should Have a Reason to Close Accounts, Brazilian Court Confirms

According to judge Regina Lucia Passos from 21st Civil Chamber of the Court of Justice of Rio de Janeiro, there should be a justified reason to close an account but the bank did not provide one, Portal do Bitcoin reported. Passos argued that despite warning in communiqué 31.379/17 about the “risks arising from the custody and trading of so-called virtual currencies,” the Central Bank of Brazil has not prohibited the trading of digital coins.

The judge also insisted Sicoob incurred no losses from maintaining Mercado Bitcoin’s account. She added that by closing it unilaterally, claiming only commercial disinterest, the bank actually violated resolution No. 2,025/93 of Banco Central do Brasil. The document states that a financial institution should clearly define the reason for such a measure. Furthermore, Bacen’s circular No. 3,788/16 reads that the notification of an intention to terminate a contract should contain express reference to the exact motives.

Brazilian Crypto Exchange Wins Legal Battle Over Closed Bank Account
‘The Justice’ sculpture in front of the Supreme Federal Court

The decision of the Rio de Janeiro Court of Justice may not be final, Portal do Bitcoin notes, but it is nevertheless a victory for Mercado Bitcoin. Last year, the exchange lost a lawsuit against the closure of its account by another institution, Banco Itau. In October, the Brazilian High Court ruled that banks have the right to close accounts associated with cryptocurrencies without providing any reason. It stated that the crypto trading platform had to prove that any constitutional norms had been breached and take the matter to the Supreme Court.

Meanwhile, Banco Itau has been accused of trying to stifle competition. The bank has reportedly acquired almost half of the shares of XP Investments, a brokerage that began operating with digital coins at the end of 2018.

Also in October, another court ordered two financial institutions to reopen the frozen accounts of crypto exchange Bitcoin Max. Brazil’s Federal District Court threatened to fine Banco do Brasil and Banco Santander if they fail to comply with its decision. It also described their unilateral actions as abusive and prohibited by consumer protection regulations. At that point, six of the country’s largest banks had closed accounts belonging to digital asset trading platforms.

Crypto Proponent Nominated for Banco Central President

The latest decision of the Brazilian judiciary coincides with another development that has been described by publications as positive news for the crypto community in the country. Brazil’s new president, Jair Bolsonaro, has nominated an economist believed to be a crypto proponent to head the country’s central bank.

Before becoming the next president of Banco Central do Brasil, Roberto Campos Neto has to win the approval of the Federal Senate. In a letter to the members of the upper house of the National Congress, the appointee outlined his previous experience related to financial innovation.

Brazilian Crypto Exchange Wins Legal Battle Over Closed Bank Account
Banco Central do Brasil

“I have studied and been dedicated intensely to the design of what will be the financial system of the future. I participated in studies on blockchain and digital assets,” noted Campos Neto. The Banco Santander executive also said he wants to prepare the central bank “for the future market, where technologies advance exponentially, generating more rapid transformations.”

According to a recent report by Reuters, the message signals that the candidate will continue and eventually extend the policies of the outgoing Bacen governor Ilan Goldfajn. His administration of Brazil’s main monetary authority created conditions for the emergence and development of independent financial services and fintech companies in the country.

What’s your opinion about the legal battle of Brazilian exchanges to maintain access to regular banking services? Share your thoughts on the subject in the comments section below.


Images courtesy of Shutterstock.


Make sure you do not miss any important Bitcoin-related news! Follow our news feed any which way you prefer; via Twitter, Facebook, Telegram, RSS or email (scroll down to the bottom of this page to subscribe). We’ve got daily, weekly and quarterly summaries in newsletter form. Bitcoin never sleeps. Neither do we.

The post Brazilian Crypto Exchange Wins Legal Battle Over Closed Bank Account appeared first on Bitcoin News.

Bitcoin News

Union Bank of the Philippines Launching Cryptocurrency ATM

February 9, 2019 |

Union Bank of the Philippines Launching Cryptocurrency ATM

One of the largest banks in the Philippines is reportedly launching a two-way cryptocurrency ATM that is in compliance with Bangko Sentral ng Pilipinas’ specifications. In the Philippines, the central bank regulates cryptocurrencies “when used for delivery of financial services, particularly, for payments and remittances.”

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Unionbank’s ATM

The Philippine Star reported on Wednesday that the Union Bank of the Philippines (Unionbank) machine will be the country’s first crypto ATM that complies with the rules set by the central bank, Bangko Sentral ng Pilipinas (BSP). The project is part of the Philippine government’s regulatory sandbox. The bank says it has been collaborating with the BSP to provide Filipinos with innovative solutions.

Union Bank of the Philippines Launching Cryptocurrency ATM

Unionbank said in a statement, “In the bank’s continued quest to cater to the evolving needs and tastes of customers, including clients who use virtual currency, the ATM will provide these clients an alternative channel to convert their pesos to virtual currency and vice versa,” the publication conveyed. No specific coins were mentioned in the announcement.

A picture of the bank’s upcoming crypto ATM was posted on social media on Jan. 17 by Twitter user Mike Abundo.Union Bank of the Philippines Launching Cryptocurrency ATM

Crypto Regulation in the Philippines

Bangko Sentral ng Pilipinas explained, “Following the warning advisory issued by the BSP in March 2014, a formal regulatory approach was adopted through the issuance of Circular No. 944 dated 6 February 2017.” This circular establishes “guidelines for virtual currency (VC) exchanges” offering “services or engaging in activities that provide facility for the conversion or exchange of fiat currency to VC or vice versa” in the country, the BSP wrote.

Noting that it “does not intend to endorse” any cryptocurrencies including bitcoin, the BSP clarified that it aims to regulate them “when used for delivery of financial services, particularly, for payments and remittances.”

Union Bank of the Philippines Launching Cryptocurrency ATM

According to the circular, crypto exchanges must obtain a certificate of registration to operate as a remittance and transfer company. In addition, “Large value pay-outs of more than P500,000 [~$ 183,000] or its foreign currency equivalent, in any single transaction with customers or counterparties, shall only be made via check payment or direct credit to deposit accounts.”

Furthermore, they must “maintain an internal control system commensurate to the nature, size and complexity of their respective businesses” and adhere to the minimum control standard issued by the BSP, the circular describes.

As of November last year, the central bank has issued provisional licenses to seven crypto exchanges and is evaluating over 40 applications currently, according to a document on its website.

What do you think of Unionbank launching a crypto ATM? Let us know in the comments section below.


Images courtesy of Shutterstock, Twitter, Mike Abundo, and Unionbank.


Need to calculate your bitcoin holdings? Check our tools section.

The post Union Bank of the Philippines Launching Cryptocurrency ATM appeared first on Bitcoin News.

Bitcoin News