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On the days when I get really fearful, I say a tiny prayer.
Gayle Goldin wants to make sure future presidential candidates fully reveal any potential conflicts of interest. That’s why the Democratic state senator from Rhode Island is now sponsoring a bill that would require Oval Office hopefuls to release five years’ worth of tax returns—meaning President Trump could see his…
Johnny Depp talks divorce, lavish spending in shocking tell-all: I was ‘as low’ as ‘I could have gotten’June 21, 2018 | dailybusinessnews
After ongoing rumors concerning a public divorce battle, numerous lawsuits and an alleged financial crisis leading to a Hollywood downfall, Johnny Depp wants to set the record straight.
The robotic call-center agent reading from a script is getting a makeover as a number of companies develop software to give agents real-time feedback about how their customer conversations are going.
WSJ.com: US Business
As efficient mobile processors overtake their laptop-powering counterparts, Apple could switch MacBooks over to its own custom chips.
WSJ.com: US Business
Brad Garlinghouse, Ripple CEO, answered candidly during an interview about crypto’s prospects for the future. Among other criticisms, he stressed blockchain technology is mostly hype, and that bitcoin core (BTC) is controlled by Chinese miners and has no hope of being a world currency.
Ripple CEO Bashes Bitcoin
Attendees of the 2018 Stifel Cross Sector Insight Conference in Boston yesterday were probably expecting to learn more about Ripple, the world’s third most popular cryptocurrency by market capitalization. After all, none other than company CEO Brad Garlinghouse was guest of honor for an interview with Stifel Tech analyst Lee Simpson. And while Ripple certainly was the hot topic, Mr. Garlinghouse also took the opportunity to bash its main decentralized competitor, bitcoin core (BTC).
“A number of prominent people,” Mr. Garlinghouse explained, “even Steve Wozniak, has said that he sees a world where Bitcoin is the primary currency. I think that’s absurd. I don’t think that any major economy will allow that to happen. By the way, it doesn’t make sense.” Indeed Woz has said as much, as have Twitter and Square CEO Jack Dorsey, who predicted it would happen within the decade.
Brad Garlinghouse, 47, has held his present position since 2015. His professional background is almost all technology related. Stints with Yahoo!, AOL, working in the investment arena with the likes of Silver Lake Partners, @Ventures, @Home Network, SBC Communications, all round out his experience prior to Ripple.
His views about BTC and its eventual influence have found him very quotable of late, especially this month. He’s spent a great deal of time attempting to separate the coin aspect of Ripple (XRP) from the company itself, and this has lead to some interesting juxtapositioning in his method of argument.
BTC Blockchain Not Disruptive, Chinese in Control
During the Boston interview, he even took on the sacred cow of the corporate world, BTC’s distributed ledger technology. “There’s a lot of blockchain craziness, but there are three indicators of market winners. Blockchain will not disrupt banks […] it will play an important role in the way our system works. It’s a short-sighted view […]. Bitcoin is not the panacea we thought it would be.”
Mr. Garlinghouse then compared XRP to BTC. “This is how liquidity will be managed in the future. Bitcoin today takes 45 minutes to settle a transaction. Banks will use what is efficient and cheaper. And if you deliver a better product at a better price […] they will use it.”
An under-reported story, Ripple’s CEO insisted, is how BTC is “owned by China.” He noted, “The smartest thing you’ve done is not have ‘bit’ or ‘coin’ in your name. I’ll tell you another story that is underreported, but worth paying attention to. Bitcoin is really controlled by China. There are four miners in China that control over 50% of Bitcoin. How do we know that China won’t intervene? How many countries want to use a Chinese-controlled currency? It’s just not going to happen.”
Lastly, he assured, “I own bitcoin. Many people consider it as digital gold. I acknowledge, I’m long [on] crypto. I’d advise folks to only invest in crypto only what you’re willing to lose. It’s early to tell how it is going to play out. I think it’s a pretty good investing strategy. I don’t think about the digital asset market. I think about the customer experience. There are millions unbanked or underbanked. When I think about the transformation, it is fundamentally changing the way millions participate in banking. We can fundamentally change the way this works, to bring an entire population up a step in the system.”
Do you think Ripple’s CEO is correct? Let us know in the comments.
Images via the Pixabay.
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The post Ripple CEO: Bitcoin Controlled by Chinese, Absurd to Think it Could be Primary World Currency appeared first on Bitcoin News.
CBDC Could Have “Severely Negative Consequences” for “Bank-Dominated Payments System” – Former FDIC ChairJune 13, 2018 | dailybusinessnews
The former chair of the United States Federal Deposit Insurance Corporation, Sheila Bair, recently published an article imploring the U.S. Federal Reserve to explore central bank-issued digital currencies (CBDCs). In the article, Mrs. Bair argues that the development of a state-issued cryptocurrency could “reduc[e] the risk of financial crises” and “improv[e] monetary policy tools.”
Sheila Bair Authors Article Advocating Central Bank-Issued Digital Currency
The former FDIC chair begins the article by discussing the increasing proliferation of financial crises across major economies, such as the “Europe[an] sovereign debt crisis” and national crises recently felt in “Portugal, Venezuela, Russia, Ukraine, [and] Brazil.”
The article describes “Lack of confidence in [the] banking system” as the principal catalyst for Satoshi Nakamoto’s choice to develop bitcoin, asserting that “He (she, they?) originally intended it as a widely accepted method of payment that could function completely outside of the banking system.” However, Mrs. Bair states that “Unfortunately […], bitcoin has failed miserably as a method of payment” – blaming such on the “extreme volatility [that] has made it popular as a speculative investment and store of value.”
The former FDIC chair advocates that central banks issue their own digital money, describing such as “a radical idea that […] is gaining credibility among an increasing number of mainstream economists and central bankers themselves.” Mrs. Bair describes central bank-issued digital currency as “presumably […] be[ing] as stable as traditional fiat currency, while reducing the risks of financial crises and improving monetary tools.”
Benefits of CBDCs
Mrs. Bair asserts that the development and issuance of CBDC could provide greater financial stability in times of economic crisis, stating that “in times of extreme stress, people lose confidence in their banks. So they pull their uninsured money out of the banking system, disrupting the free flow of payments. […] However, suppose consumers could convert their bank deposits into a digital currency that would be issued and backed by the Fed? […] They would no longer need to worry about bank instability.”
The former FDIC chair also states that “the Fed would have much more effective tools for conducting monetary policy to address economic cycles.”
“The Fed now manipulates the money supply through buying and selling securities with a select group of big banks and by paying them interest on the reserves they deposit at the Fed — currently a tidy 1.75%,” Mrs. Bair continued. “When the Fed wants to stimulate the economy — as it did after the crisis — it buys securities from these banks and reduces the rates it pays them on reserves, inducing them to lend the proceeds to the real economy to get a better return. When it wants to raise rates — as it is doing now — it reduces its holdings of securities and increases the rates it pays on reserves. This is a nice deal for the banks, but hasn’t done a whole lot to help the rest of us. The past 10 years are proof positive that current monetary tools are woefully inadequate to stimulate broad-based economic growth. The super rich have gotten a lot richer, while the middle class has struggled.”
CBDCs May Bring “Severely Negative Consequences” for “Current Bank-Dominated Payments System”
The former FDIC chair emphasizes the creative destruction that a “wholesale shift from bank accounts to CBDC” would have on the “current bank-dominated payments system,” stating that such “could have severely negative consequences for credit availability given banks’ reliance on deposits to funds loans.”
Mrs. Bair asserts that “the costs and inefficiencies in the current payments system would be greatly reduced.” The former FDIC chair claims that consumers would benefit from “no longer need[ing] to maintain checking accounts, with their expensive maintenance and overdraft fees, to effectuate payments,” whilst businesses accepting CBDC “could avoid the interchange fees charged by banks and their card networks – fees that are particularly burdensome to small firms.”
What are your thoughts on central bank-issued digital currencies? Join the discussion in the comments section below!
Images courtesy of Shutterstock, Wikipedia
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This month the International Monetary Fund (IMF) released a report on global monetary policy in the digital age which explains that “crypto assets may one day reduce demand for central bank money.” The IMF study was written after an IMF staff discussion that details that cryptocurrencies could someday lower the demand for fiat currencies by creating a shift from “credit money to commodity money.”
Crypto Assets Will Eventually Be More Widely Adopted
One thing is for sure the IMF has a lot to say these days about Bitcoin technology and other cryptocurrency solutions. More recently the Managing Director of the IMF, Christine Lagarde, has had a lot of positive words to say about digital currencies. Moreover, the IMF also showcased a picture of money evolving featuring a picture of a bitcoin which was displayed on the front page of the IMF website. Now the IMF has released a report written by a variety of IMF researchers who state:
We cannot rule out the possibility that some crypto assets will eventually be more widely adopted and fulfill more of the functions of money in some regions or private e-commerce networks.
A Payment Shift
The study notes that the global financial crisis and bank bailouts have “renewed skepticism in some quarters” of the world and there’s a possibility that digital assets can affect the traditional global monetary policies. There’s also talk of a “payment shift” within the study where cryptocurrencies could replace fiat in some regions.
“Such a shift could also portend a change in the way money is created in the digital age: from credit money to commodity money, we may move full circle back to where we were in the Renaissance,” explains the IMF report.
Economists continue to debate the origins of money, and why monetary systems seem to have alternated between commodity and credit money throughout history. If crypto assets indeed lead to a more prominent role for commodity money in the digital age, the demand for central bank money is likely to decline.
Competitive Pressure and the Allure of the Central Bank Coin
The IMF paper also details how banks should respond with competitive pressure and they should continue to solidify fiat currencies as a “unit of account.” Cryptocurrencies, however, have a hard time becoming a standard unit of account the IMF notes and this is because “valuation is largely based on beliefs that are not well anchored” which has made the majority of digital currencies quite volatile.
The researcher’s paper mentions that central banks could counteract with their own digital currencies. It goes on to say that the banks have many challenges and opportunities in this digital age but they must regain the public’s trust to remain relevant. “They can remain relevant by providing more stable units of account than crypto assets and by making central bank money attractive as a medium of exchange in the digital economy,” the IMF paper concludes.
What do you think about the IMF’s report and how positive this organization is towards cryptocurrencies? Let us know your thoughts in the comments below.
Images via Shutterstock, Getty Images, and the IMF website.
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The post IMF Says Bitcoin Could Create Less Demand for Regular Debt-based Fiat Money appeared first on Bitcoin News.
A former Defense Intelligence Agency case officer who allegedly sought out a new career as a double agent working for Beijing didn’t catch his flight from Seattle to China on Saturday. Ron Rockwell Hansen, 58, was arrested by the FBI as he attempted to leave the country, reports Reuters . Hansen—…