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French central bank warns against using bitcoin

"France's central bank has warned against the use of the virtual currency bitcoin, noting that it is not only highly volatile but also unregulated by authorities. Launched in 2009 as the invention of a mysterious computer guru who goes by the pseudonym Satoshi Nakamoto, bitcoins can be exchanged online for real money or used to buy goods and services on the internet. But the Bank of France is sceptical about the currency, and underlined that the 'highly speculative' currency poses a 'certain financial risk' to users. 'Even if the high volatility of the bitcoin is of possible interest for individual or professional speculators, they should be aware of the risks they are taking,' the bank said." Continue reading →

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Bitcoin hype worse than ‘tulip mania’, says Dutch central banker

"The former president of the Dutch Central Bank, Nout Wellink, has told students at the University of Amsterdam that the hype around bitcoin is worse than his country's Tulip mania in the 17th century. 'Sooner or later the facade will fall', Wellink said, calling bitcoin 'pure speculation' and 'hype' according to comments reported in the Dutch press. 'This is worse than the tulip mania,' he continued. 'At least then you got a tulip [at the end], now you get nothing.' Wellink's comments follow a warning from the Dutch Central Bank about the risks of virtual currencies like bitcoin, which fall outside Dutch financial supervision laws." Continue reading →

Continue ReadingBitcoin hype worse than ‘tulip mania’, says Dutch central banker

Alan Greenspan: Bitcoin Is a Bubble Without Intrinsic Currency Value

"The former Federal Reserve chairman said Bitcoin prices are unsustainably high after surging 89-fold in a year and that the virtual money isn’t currency. 'It’s a bubble,' Greenspan, 87, said. 'It has to have intrinsic value. You have to really stretch your imagination to infer what the intrinsic value of Bitcoin is. I haven’t been able to do it. Maybe somebody else can.' 'I do not understand where the backing of Bitcoin is coming from,' the former Fed chief said. 'There is no fundamental issue of capabilities of repaying it in anything which is universally acceptable, which is either intrinsic value of the currency or the credit or trust of the individual who is issuing the money.'" Continue reading →

Continue ReadingAlan Greenspan: Bitcoin Is a Bubble Without Intrinsic Currency Value

PBS: It’s No Bubble – Why We Should All Give Bitcoin a Chance

"The long sweep of financial history tells us that many extremely valuable innovations were initially viewed with suspicion. But without them, we'd still be bartering. Bitcoins may well be one of the truly major financial innovations that brings the world together and forces long-needed fiscal and financial reform. Let's give it a chance." Continue reading →

Continue ReadingPBS: It’s No Bubble – Why We Should All Give Bitcoin a Chance

Proposals announced to boost Shanghai Free Trade Zone

"In a six-page report that included 30 detailed instructions, the People's Bank of China said yesterday it would allow residents of the zone - seen as a test bed for liberalising the financial sector - to set up 'resident free trade accounts' in both domestic and foreign currencies, and would allow yuan to be fully convertible under those accounts 'when the time is ripe'. The 29 sq km zone, the first of its kind on the mainland, was set up two months ago and the guidelines suggest it will offer benefits that Beijing has been reluctant to offer other pilot areas. For example, 'qualified' individual investors will be able to make various foreign investments, including trading overseas securities." Continue reading →

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Argentina Raises Tax on Foreign Credit Card Purchases to 35%

"President Cristina Fernandez de Kirchner’s government is raising taxes on credit card purchases abroad in a bid to stem the drop in Argentina’s international reserves to their lowest levels since December 2006. The government raised the the tax charged on credit card purchases in foreign currency to 35 percent from 20 percent, according to the Official Gazette. Argentina’s dollar reserves have plunged 29 percent this year to $30.9 billion as the government uses the funds to pay international debt and import energy, while Argentines take advantage of a strong official rate for the peso to spend abroad. The official rate is 6.2 pesos, while the black market rate is 9.2." Continue reading →

Continue ReadingArgentina Raises Tax on Foreign Credit Card Purchases to 35%

Ukraine protests increase risks of currency crisis

"Massive protests against Viktor Yanukovich hammered Ukraine's financial markets on Monday, increasing the risk of a currency crisis as the president tries to hold on until an election in early 2015. Ukraine's debt insurance costs jumped and currency traders increased bets on a devaluation after 350,000 people protested on Sunday against Yanukovich's decision to ditch a trade pact with the European Union. Central bank Governor Ihor Sorkin backed up foreign exchange intervention by vowing to do everything needed to uphold financial stability. In an online video message, he urged savers 'to be confident in the banking system' and not to withdraw their deposits." Continue reading →

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RBS Outage Left Millions Cashless On Busiest Shopping Day Of The Year

"RBS and its retail banking unit Netwest's online systems and debit cards failed on Monday evening as customers were unable to process payments on one of the busiest online shopping days called the 'Cyber Monday'. Millions of customers across the United Kingdom were unable to withdraw cash, pay for goods or use telephone and online banking services. RBS, which is 82 percent owned by the UK government, faced a probe by the Financial Conduct Authority in April when technology failure left customers unable to avail the bank's card and online services. A software upgrade gone wrong also led to similar problems for RBS' customers in June 2012." Continue reading →

Continue ReadingRBS Outage Left Millions Cashless On Busiest Shopping Day Of The Year

Dutch central bank warns consumers to be careful with bitcoins

"The Dutch central bank on Tuesday warned consumers about the rising popularity of virtual currency such as bitcoins, pointing out that they currently fall outside official regulatory channels. Nor does the central bank have a regulatory roll in companies which trade virtual currency, the institution said in a short statement. ‘Consumers should be aware of the risks they run when they acquire bitcoins,’ the statement said. ‘The exchange rate is volatile and there is no central authority consumers can hold responsible. Nor are Dutch guarantees on savings applicable.’ Several Dutch cafes and bars now accept bitcoins as currency, such as the Café De Waag in Delft." Continue reading →

Continue ReadingDutch central bank warns consumers to be careful with bitcoins

China’s Largest Bitcoin Exchange Seeks Recognition for Currency

"BTC China, the nation’s largest Bitcoin exchange, has had low-level discussions with regulators seeking recognition of the digital currency that would allow it to be used to buy goods and services in the country. The company has sought to discuss Bitcoin regulations with officials from agencies including the People’s Bank of China, the China Banking Regulatory Commission and the China Securities Regulatory Commission, BTC China Chief Executive Officer Bobby Lee said in a Nov. 29 interview in Shanghai. It’s not yet been able to arrange any high-level meetings, he said." Continue reading →

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