Tag Archives: Pot & Kettle

Fed Banker Tries Criticizing Bitcoin, Ends Up Perfectly Describing The Fed

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“In an article for Fox News, senior economist Francois Velde of the Federal Reserve Bank of Chicago describes Bitcoin.  ‘Although some of the enthusiasm for Bitcoin is driven by a distrust of state-issued currency, it is hard to imagine a world where the main currency is based on an extremely complex code understood by only a few and controlled by even fewer, without accountability, arbitration or recourse,’ Velde wrote.  In his attempt to criticize Bitcoin, Federal Reserve banker Velde actually summed up fairly well everything that’s wrong with his own employer, and in doing so outlines the threat Bitcoin poses to it.”

http://bitcoinmagazine.com/9549/fed-banker-tries-criticizing-bitcoin-ends-perfectly-describing-fed/

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Banking group sceptical about bitcoin’s future; it’s ‘inherently fragile’

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“The report by the International Institute of Finance, which represents more than 450 banks and financial institutions, said more regulation of bitcoin exchanges and transactions could strengthen its legitimacy among consumers and ease regulators’ doubts about it.  Said the report, its functionality and ultimate success ‘is determined by programmers – and their goodwill is taken for granted’.  Thus the IIF characterised bitcoin as effectively a ‘fiduciary currency’ with no intrinsic value. ‘Despite bitcoin’s ‘ingenious features’, it cannot provide a currency of stable value, and its use as a broadly accepted medium of exchange appears limited,’ the report concluded.”

http://www.scmp.com/business/banking-finance/article/1402262/banking-group-sceptical-about-bitcoins-future-calling

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German Central Bank Official Issues Another Bitcoin Warning

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“Last December, Bundesbank’s President Jens Weidmann told Wirschaftswoche that bitcoin was not an alternative to national currencies and that bitcoins were only used as currency in certain niches.  Weidmann stressed that the driving factor behind the demand for bitcoin was the hope of big payouts, which may prove elusive for most investors. On Monday, Bundesbank board member Carl-Ludwig Thiele told German financial magazine Handelsblatt that bitcoins remain highly speculative, as they are as volatile as ever.  Thiele maintains that bitcoins are an exceptionally risky investment.  He also pointed out that bitcoin investors have absolutely no guarantee in case something goes wrong.”

http://www.coindesk.com/german-central-bank-official-issues-another-bitcoin-warning/

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Reserve Bank of India Issues Virtual Currency Warning

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“There are a few exchanges and trading platforms in India and most of them were launched earlier this year. Although they tend to allow users to purchase bitcoin in rupees, none of them appear to have regulatory approval to do so. However, since India does not have digital currency legislation, it is impossible to get such approval, unless Indian regulators decide to apply existing foreign exchange regulations to bitcoin.  For now though, India does not have bitcoin regulation and it is unclear whether the RBI’s statement will change anything moving forward.”

http://www.coindesk.com/reserve-bank-india-issues-virtual-currency-warning/

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India Central Bank warns against Bitcoin use

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“The Reserve Bank of India, on Tuesday, warned the public against the use of virtual currencies such as Bitcoin, pointing out that users expose themselves to potential financial, legal and security related risks.  The public advisory comes after the borderless digital currency has begun to gain widespread acceptance in India, despite poor Internet penetration and a natural scepticism to assets not backed by tangible entities such as land.  In its list of potential risks, the apex bank highlights problems such as losses arising out of hacking, no sources of customer recourse and the general financial volatility surrounding Bitcoins.”

http://www.thehindu.com/business/Economy/rbi-warns-against-bitcoin-use-in-india/article5497653.ece

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German police detect neo-Nazi music with new app

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“The software has been written by the regional police in Saxony and has been described in government documents as able to ‘spare resources and enable very quick investigations’.  It can pick out the common audio fingerprints of neo-Nazi rock music and could identify racist songs even if they have never before been heard by police or analysed by the software. The interior ministers of Germany’s 16 states will meet to discuss using what has become known as the ‘Nazi Shazam’ later this week.  Police could use the software to routinely monitor internet radio stations, small gatherings of suspects and public events with live music.”

http://www.telegraph.co.uk/technology/news/10491565/German-police-detect-neo-Nazi-music-with-new-app.html

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Cyprus central bank: Bitcoin use dangerous

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“The Central Bank (CBC) has said use of virtual currency bitcoin is extremely dangerous, the Cyprus News Agency (CNA) said on Tuesday.  ‘Using any virtual money is extremely dangerous because they are not monitored by any authority, thus operating without control,’ CNA said, quoting the CBC.  In a written response later on Tuesday, Danny Brewster the CEO of Neo & Bee, the largest business in the world that is building infrastructure around the Bitcoin technology, said he had been trying for the past two weeks to reach and arrange a meeting with the CBC so that it could operate under the appropriate regulatory framework.”

http://cyprus-mail.com/2013/12/10/bitcoin-use-dangerous-cbc-says/

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Korea decides not to recognize Bitcoin as real currency

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“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.'”

http://www.koreaherald.com/view.php?ud=20131210000673

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

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“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.”

http://www.theguardian.com/technology/2013/dec/04/bitcoin-bubble-tulip-dutch-banker

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Alan Greenspan: Bitcoin Is a Bubble Without Intrinsic Currency Value

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“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.'”

http://www.bloomberg.com/news/2013-12-04/greenspan-says-bitcoin-a-bubble-without-intrinsic-currency-value.html

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