“The guardians of the global economy have two sets of issues to address. First is what to do, if anything, about the emergence and growth of the private cryptocurrencies that are grabbing more and more attention — with bitcoin climbing above $10,000. The second question is whether to issue official versions.”
“With one unit of Bitcoin now worth 10,000 times the US dollar, it makes sense that the Fed would begin to feel a bit defensive. Indeed, the speech comes to the defense of the central bank, the existing money, and payment system networks, and calls for the pace of innovation to be controlled by regulators in the interest of ‘prudence.'”
Read more: https://fee.org/articles/fed-official-decries-bitcoin-as-not-backed/
“Joseph Stiglitz said that he favours making the digital currency illegal because it does not have a ‘socially useful function’. ‘Bitcoin is successful only because of its potential for circumvention, lack of oversight,’ the renowned economist said.”
“‘Buy bitcoin’ is now a more popular search phrase than ‘buy gold’ on Google. The buzz is starting to impinge on gold’s role as a store of value especially since, like the precious metal, there’s a finite supply of bitcoin, which proponents say gives it anti-inflationary qualities. Sales of gold coins from the U.S. Mint slid to a decade low in the first three quarters months of 2017.”
Read more: https://www.bloomberg.com/news/articles/2017-11-20/can-bitcoin-survive-an-apocalypse
“Many people in Zimbabwe don’t have bank accounts. But a growing number own smartphones. And that’s all you need to buy bitcoin. But this isn’t just happening in Zimbabwe. The people of Venezuela are becoming increasingly desperate. And many are buying bitcoin to survive. That’s because bitcoin doesn’t lose value by the day like the bolivar, Venezuela’s currency. Instead, it becomes more valuable.”
Read more: https://www.caseyresearch.com/how-bitcoin-is-saving-lives-in-venezuela/
“Covered deposits no longer need to be protected, according to the European Central Bank (ECB), which has proposed this month to stop withdrawals when a bank is on the verge of failing. It has suggested the current €100,000 (£85,000) deposit level currently protected in the event of a bail-in would no longer be available.”
Read more: https://www.rt.com/document/5a1283f3fc7e93c0588b4568/amp/410373-ecb-end-deposit-protection
“Venezuelans living with hyper-inflation and a scarcity of cash for buying daily goods will soon have the country’s largest paper bill circulating in recent history. The country’s president announced Wednesday that the new 100,000- bolivar note will hit the streets this week. It will be worth less than $2.50 in U.S. currency in black market dealings. In a nationally broadcast appearance, President Nicolas Maduro held up the new paper bill, while also unveiling a 30 percent boost to the minimum wage. The new denomination is stop-gap measure in an economic plan by Maduro’s government aimed at doing away with the need for paper money.”
“According to the official, the state issued cryptocurrency cannot be mined and will be issued and controlled and maintained only by the authorities. The CryptoRubles can be exchanged for regular Rubles at any time, though if the holder is unable to explain where the CryptoRubles came from, a 13 percent tax will be levied. The same tax will be applied to any earned difference between the price of the purchase of the token and the price of the sale.”
Read more: https://cointelegraph.com/news/breaking-russia-issuing-cryptoruble
“IMF Director Christine Lagarde hinted at the development of a digital currency, similar to the bitcoin, for the organization’s special drawing rights (SDR) mechanism to replace existing reserve currencies. The international finance organization has already begun exploring the possibility with an External Advisory Group discussion last December. Referring to a possible future situation along these lines, Lagarde said that the prospect of a digital currency as a replacement for reserve currencies that are part of the SDR was not ‘a far-fetched hypothetical.'”
Read more: http://www.investopedia.com/news/imf-chief-suggests-imfcoin-cryptocurrency-possibility/
“Bitcoin is too expensive for one of the most powerful women in finance. Christine Lagarde, the head of the International Monetary Fund, on Friday told CNBC’s Sara Eisen that bitcoin is ‘too expensive for me at the moment’ when asked if she would ever buy into the red-hot digital currency. Lagarde last month gave a soft defense of the cryptocurrency during a speech in London. She said cryptocurrencies such as bitcoin could ‘give existing currencies and monetary policy a run for their money.'”