Mainstream News

Korea decides not to recognize Bitcoin as real currency

"Korean financial authorities said Tuesday that they have decided not to recognize Bitcoin, or cyber currency, as a real legal currency. The conclusion came after a week of debate among officials of the Ministry of Strategy and Finance, the Bank of Korea, the Financial Services Commission and the Financial Supervisory Service. Officials said Bitcoin, which can be traded between individuals online without going through financial institutions such as banks, does not meet standard regulations governing the transactions of currencies via the Internet or commercial institutions. A Bank of Korea official said the currency has been facing high volatility as it does not have an 'intrinsic value.'" Continue reading →

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Talk of the Day — Bitcoin to be introduced in Taiwan

"Wayi International Digital Entertainment Co. announced Wednesday that its online shopping site Wmall will begin to accept Bitcoin payments next year. The OTC (over-the-counter) market-listed company, which focuses on the research, development and distribution of online games, will be the first Taiwanese company to accept the decentralized virtual currency as a payment tool. Wayi's decision will test the Central Bank of the Republic of China's (CBC's) attitude toward Bitcoin development in Taiwan and its ability to regulate the currency's circulation. CBC Governor Perng Fai-nan said recently that the central bank has been keeping close tabs on the development of Bitcoin." Continue reading →

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World powers react to the Bitcoin boom

"World powers have scrambled in recent weeks to react to the rise of Bitcoin, a decentralised digital currency created in 2009. China banned its banks from providing related services and products on Thursday. Meanwhile, on Thursday the French central bank warned against using Bitcoin, because of its volatility and lack of regulation. However, Bank of America Merrill Lynch said in its first research report on the currency that it had the potential to become a major means of payment for ecommerce and a serious competitor to traditional payment methods." Continue reading →

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‘I can’t look at myself in the mirror’: Hendry reveals he has turned bullish

"Eclectica hedge fund manager Hugh Hendry has said he has been forced to leave his bearish outlook behind as he faces up to a market 'which only makes sense through the prism of trends'. Hendry said he is no longer fighting the 'two-way feedback loop' which is continuing to boost risk assets. That centres on the currency war being played out between the US and China, in which US QE prompts dollar-denominated investment to head to China, and China fights the resulting upwards pressure on its currency by manufacturing an investment boom - leading to falling US inflation expectations, which in turn prompts the Federal Reserve to loosen policy once again." Continue reading →

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Bankers Balking at Bitcoin in U.S. as Real-World Obstacles Mount

"'Banks are scared to deal with Bitcoin companies, even if they really want to,' said Stephen Pair, co-founder and chief technical officer of BitPay Inc., an Atlanta-based company that processes payments for merchants in Bitcoin. Pair said BitPay has relationships with banks in the U.S., Canada and Europe; he declined to name them at the banks’ request. Because of regulatory pressure in the U.S., much of the exchange business has moved to Britain, Japan and China, Jered Kenna, founder of Tradehill, the Bitcoin exchange that lost its bank, said in an interview. LightSpeed Venture Partners announced on Nov. 18 that it would invest $5 million in BTC China." Continue reading →

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China central bank suggests faster tempo for freeing yuan

"China's central bank governor has dangled the prospect of speeding up currency reform and giving markets more room to set the yuan's exchange rate as he underlines broader plans for sweeping economic change. The central bank under Zhou Xiaochuan has consistently flagged its intention to liberalize financial markets and allow the yuan to trade more freely, even before the Communist Party's top brass unveiled late last week the boldest set of economic and social reforms in nearly three decades. Since the 60-point reform plan was released, Zhou has suggested urgency in pushing for change, although he has not provided any specific timetable." Continue reading →

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Bank of Korea Relaxes Negative Stance on Bitcoins

"The BOK said on December 3 that it made a report on bitcoins and is pondering a measure to open the virtual money to the public. The report however includes a negative opinion on the possibility of its use as a future currency. There are no stores in Korea that accept bitcoins except Korbit, which was established in April this year, specifically to facilitate trading in bitcoins. Bitcoins are only used for investment purposes, not for the trade of goods. Under such circumstances, a Paris Baguette in Incheon City started to accept bitcoins and developed a tablet application for bitcoin settlement." Continue reading →

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China feeds bitcoin frenzy

"More than a third of the world's bitcoin transactions now flow through China's largest bitcoin trading website BTC China, according to bitcoin data websites. China has surpassed Japan's Mt.Gox and Europe's BitStamp, reaching 100,000 Bitcoins in daily trading volumes, or more than 400 million yuan (U.S.$65.7 million) in daily transactions. In recent years China has been pushing to internationalize the yuan, adding more value to the once tightly controlled currency on international markets. But despite the changes, controls mean individuals still find it difficult to invest in assets outside China. As a result, more Chinese are looking to invest in alternative assets like bitcoin." Continue reading →

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Fund Manager Hugh Hendry: I would buy Bitcoin if I could

"'This is the environment where Bitcoin could go to $1m. There is no qualitative reason, but it is trending. If I could own Bitcoin, I would. If I own 3D printing, it is just the same thing,' he said. Hendry added fundamentals do not matter at a time when policy is misaligned, emphasising instead the ‘feedback loops’ created by QE. 'There is no point arguing about the one-way causality we [as an industry] believe determines our processes. That is all about a belief this is rational. We want to believe markets go up because the economy is improving, because corporate cashflows are improving. But when you get monetary disturbances creating loops, it does not really matter.'" Continue reading →

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China central bank warns banks against use of bitcoin

"China's central bank warned on Thursday that financial institutions should not trade the digital currency bitcoin, saying that while it does not yet pose a threat to China's financial system, it carries risks. The central bank also said in a statement on its website that it would act to prevent money laundering risks from bitcoin, a prominent digital currency that is not backed by a government or central bank. The PBOC will require trading platforms that deal in virtual currencies such as bitcoin to register with telecommunications authorities, it said. The central bank did allow that ordinary individuals were free to use bitcoin, so long as they take on the risk themselves." Continue reading →

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