Mainstream News

Bitcoin Companies and Entrepreneurs Can’t Get Bank Accounts

"The Bitcoin banking casualty list is a long one: popular Bitcoin – USD exchanges Bitfloor and BitInstant, in New York; Tradehill, in California; and Bitbox, in Michigan, have been out of commission for months. All had registered as money exchangers with the Department of Treasury’s FinCen. Mobile Bitcoin payment company Coinapult moved from Colorado to Panama to avoid the 'murky, unpredictable, and onerous' regulatory environment in the U.S.. Capital One even shut down the merchant account for Mulligan Mint, a commemorative coin maker, when it started making physical Bitcoin silver coins; the business was not in fact dealing with Bitcoins, just making fake models of them." Continue reading →

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Savers boosting bitcoin demand in China, exchange says

"A co-founder of China’s biggest bitcoin exchange on Friday said there were 'boundless opportunities' for the digital currency in the country because of the Chinese saving ethic. 'The main reason why bitcoin has become big in China is because Chinese people are savers, and more people are seeing bitcoin as a way to store and invest their money,' Linke Yang, vice-president of BTC China, told reporters on the sidelines of a conference in Singapore. 'There are boundless opportunities for BTC China and bitcoin in the next five years, you never know with the way the internet develops,' Yang said through an interpreter." Continue reading →

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The strangest bull market ever

"This bull market is really odd. The Dow and S&P 500 are near all-time highs. The Nasdaq is inching closer to 4,000 for the first time since the tech bubble did its best weasel impersonation and popped in 2000. Twitter (TWTR) surged on its first day of trading, despite the fact that it is not yet profitable. Snapchat has reportedly turned down offers to sell out to Facebook (FB) for $3 billion. This is a company that is not even generating sales yet. How are all those hot 'pre-revenue' Internet companies from 15 years ago doing? Are they still monetizing eyeballs? It looks like bears remain in hibernation and the bulls are ... wait for the Rage Against the Machine reference ... still on parade." Continue reading →

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Yellen Signals Continued QE Undeterred by Bubble Risk

"'I don’t see evidence at this point, in major sectors of asset prices, misalignments,' she said during her confirmation hearing to be the next Fed chairman. 'Although there is limited evidence of reach for yield, we don’t see a broad buildup in leverage, where the development of risks that I think at this stage poses a risk to financial stability.' Yellen signaled her determination to use bond buying to strengthen the economy and drive down the nation’s 7.3% unemployment rate. As benchmark U.S. stock indexes rose to records, she sought to dispel concerns from senators that the central bank’s policy is pumping up the values of equities and housing to an extent that jeopardizes market stability." Continue reading →

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C.I.A. Collecting Data on International Money Transfers, Officials Say

"The Central Intelligence Agency is secretly collecting bulk records of international money transfers handled by companies like Western Union — including transactions into and out of the United States — under the same law that the National Security Agency uses for its huge database of Americans’ phone records, according to current and former government officials. Several officials also said more than one other bulk collection program has yet to come to light. 'The intelligence community collects bulk data in a number of different ways under multiple authorities,' one intelligence official said. Orders for business records from the surveillance court generally prohibit recipients from talking about them." Continue reading →

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American Express Ex-Chief Privacy Officer On ‘The Last Days of Cash’

"Andy Roth, a partner in Dentons' Privacy and Security Group, and Victor Boyajian, a partner in Dentons' Venture Technology Group, explore the evolution of digital payments, virtual currencies and security. The video examines: Bitcoin and other virtual currencies; Regulatory issues in connection to digital payments; The balance between privacy and technological progress; Privacy as a product or feature; and The outlook for consumer payments." Continue reading →

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Virtual cash is no threat to the real thing, Bank of Canada paper says

"The case of Bitcoin – a fully convertible, pure digital currency – is more problematic. Earlier this year, the U.S. Treasury department started requiring that all virtual transactions worth more than $10,000 (U.S.) be reported to authorities to prevent virtual currencies being used for money laundering and other illegal purposes. The authors don’t reach a firm conclusion on whether governments should crack down on virtual currencies, pointing out that regulation might stifle innovation. At the same time, they warn that 'multiple competing platforms creates inefficiency' that will dissuade people from embracing them." Continue reading →

Continue ReadingVirtual cash is no threat to the real thing, Bank of Canada paper says

Black Market Dollar Exchange Sparks Argentina Luxury Sales Crackdown

"Argentines who buy a car valued at more than 350,000 pesos ($58,600) will now be required to justify the transaction with the Financial Information Unit, the nation’s money-laundering watchdog, according to a Nov. 11 decree. Argentina is boosting its currency controls as consumers faced with 25 percent annual inflation turn to everything from luxury cars to gold and bitcoins as a store of savings. With the black market offering holders of undeclared U.S. currency 3.8 pesos more than the official exchange rate of 5.9764 pesos per dollar, demand for premium cars from Volkswagen AG’s Porsche and Bayerische Motoren Werke AG is causing a 33 percent jump in imports this year." Continue reading →

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Andrew Huszar: Confessions of a Quantitative Easer

"I can only say: I'm sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed's first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I've come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time." Continue reading →

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Sudan devalues currency by 30 percent amid dollar shortages

"Sudan's economy has been in turmoil since South Sudan's secession in 2011 took away of three-quarters of oil production. Oil was the driver of the economy and source for dollars needed for food and other essential imports. The central bank has been trying to bridge a ballooning gap with the black market rate where one dollar costs 7.8 pounds as import firms struggle to get their hand on hard currency. The black market rate has become the benchmark for banks and firms. The secretive central bank tends not to announce devaluations, which are embarrassing for the government, which denies there is a shortage of hard currency." Continue reading →

Continue ReadingSudan devalues currency by 30 percent amid dollar shortages