BitDigest - Friday October 6, 2017
Bitcoin is back above $4,400 at $4,408, up 4.3%, and Ethereum returned above $300 to $301, up 3.3%. The eleven digital currencies with market values exceeding $1 billion all increased over 24-hours. This group is adding 87% to digital currencies current $149 million total market cap. (6:25AM EST)
It seems that Bitcoin may be consolidating recent gains. This is likely positive and may point to higher prices as long as the price stays above the 10 sma. Trading sideways for a few sessions could indicate a bull flag in the making.
* * * * * * * * * *
The 2017 Nobel Prize in Economics is expected to be announced shortly. Is Satoshi Nakamoto a candidate? It is believed the Nobel Committee is unlikely to award a pseudonymous individual but nevertheless, Bitcoin remains “nothing short of revolutionary.” Considering Bitcoin’s candidacy in the past, UCLA professor Bhagwan Chowdhry stated Bitcoin is “digital and exists purely as a mathematical object. It offers many advantages over both physical and paper currencies. It is secure, relying on almost unbreakable cryptographic code, can be divided into millions of smaller sub-units, and can be transferred securely and nearly instantaneously from one person to any other person in the world with access to internet bypassing governments, central banks and financial intermediaries such as Visa, Mastercard, Paypal or commercial banks eliminating time delays and transactions costs.”
Curated News
IMFcoin Could Supplant US Dollar in Global Trade
The IMF would like its organization’s special drawing rights (SDR) to have a digital future, and is thinking about its broader role in international markets. This idea continues to gain support from many support diminishing the US dollar’s global role. Digital SDRs or “IMFcoins” would allow a wider group to use this currency, supplanting the dollar in international trade and reducing both the big currency swings that can destabilize countries and the dangers of large current account deficits. Instead of representing a basket of currencies, IMFcoins could be a currency of its own, albeit one only used for international transactions.
Russia’s Central Bank Moving Towards National Digital Currency
Russia’s Central Bank is contemplating the creation of a national digital currency. Deputy Governor Olga Skorobogatova told reporters that “the creation of a national cryptocurrency stimulates the growth of non-cash payments and electronic payments, including, possibly, cross-border payments.” The bank remains skeptical about alternative digital currencies and is looking to increase digital financial literacy to protect its citizens.
ECB Considers "Legal Restraints" Against Bitcoin
Austrian economist and European Central Bank (ECB) council member Ewald Nowotny says the ECB is looking into regulating decentralized currencies, but did not detail what kind of mandates the institution would enforce. The European official believes Bitcoin is too volatile and lacks in regulatory supervision. He adds that all though the bank would not ban digital currencies, retail investors should be aware of the risks. The ECB is actively researching legal constraints follows in line with the European Parliament’s plan to tighten digital currency regulation this year. The European Union’s legislative initiatives are believed to be delivered by the end of 2017.
Bitcoin’s Rise Happened in Shadows of Finance. Now Banks Want In.
The creation of $100 million + in digital currencies is forcing banks to question whether or not to enter the developing currency markets. “They’re clearly receiving interest from their clients, both from retail investors and on the institutional side… they see the opportunity for a new asset class which would require the capability of a broker-dealer,” said Axel Pierron, managing director of bank consultant Opimas.
Air France Tests Blockchain for Maintenance Tracking
AirFrance is working with Microsoft and Ramco Aviation to apply blockchain technology to track workflows within its aircraft maintenance systems. A lot of airline data is not actually digitized, so a blockchain solution will be multi-stepped, but the lack of existing systems could help airlines leapfrog the often cited need for interoperability.
Tweet of the Day
“Is @BankofAmerica going into the #bitcoin business?” CNBC and Dealbook’s @andrewsorkin asks Catherine Bessant, chief operations and technology officer at Bank of America. Answer? “Absolutely not.” #CambridgeCyber
In order to unsubscribe, click here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Created with Revue by Twitter.
BitDigest is a weekday news update on digital currencies and blockchain technology for friends and partners of Parsons & Whittemore, a single family office based in Rye Brook, New York. Receipt of BitDigest is by approval of the Author. The commentary, analysis, opinions and recommendations in this newsletter represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in this newsletter is obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. Neither the Author nor any of the Author's affiliates make any guarantee or other promise as to any results that may be obtained from reading this newsletter. While past performance may be analyzed in this newsletter, past performance should not be considered indicative of future performance. No reader should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. The Author is not making a solicitation or offer to buy or sell any securities of any kind.