Goldman Sachs has said that digital currencies are not the ‘new gold’ despite claims that it is considering launching a bitcoin trading operation.
In a note to clients, the multinational finance company said that despite the popularity of cryptocurrencies, gold is the ‘best long-term store of value,’ reports CNBC.
The note said:
The use of precious metals is not a historical accident – they are still the best long-term store of value out of the known elements.
Vitalik Buterin has spoken out and said that it’s unlikely that central banks will have the ability to create their own digital currencies.
The 23-year-old Russian national was speaking earlier this week at the three-day Swell event in Toronto, hosted by Ripple.
Even though several central banks are working on creating their own digital currencies Buterin isn’t concerned about the competition they may create. Furthermore, he believes that it will take years for banks to achieve their goal, reports Fortune.
Sberbank, Russia’s largest bank by assets has joined the Enterprise Ethereum Alliance, the world’s largest blockchain consortium.
Initially founded by 30 members in February 2016, The Enterprise Ethereum Alliance (EEA) is a working group of companies, technology startups, corporations and even governments working to leverage open-source Ethereum technology for enterprise blockchain solutions.
Bank of America is exploring how it might use a blockchain to better track the processing of file transfers in real time.
The proposed system, outlined in a pair of patent applications recently released by the US Patent and Trademark Office, detail a system by which a blockchain could be combined with communications and memory devices to simplify the data processing process.
A consortium of banks is planning to launch a joint business venture for its in-development blockchain commerce platform.
Aiming to ease European domestic and cross-border trade, the Digital Trade Chain group is building a distributed ledger framework that connects a buyer, sellers, banks and intermediaries to simplify transaction management and tracking.
To that end, the consortium will create a new business entity in the Republic of Ireland, jointly owned by the eight founding banks, that will manage and distribute the offering, now rebranded as "we.
Former Wall Street mogul and billionaire bitcoin investor Mike Novogratz has called Jamie Dimon a ‘rent-taker’ who will lose the fight against the ‘cryptorevolution’ led by cryptocurrencies like bitcoin and blockchain technology.
Retired Wall Street macro fund manager Michael Novogratz has offered his opinion on JPMorgan Chase chief Jamie Dimon’s much-publicized recent comments on bitcoin. Dimon called bitcoin a ‘fraud’, threatened to fire any employee trading bitcoin and more recently, said ‘stupid’ bitcoin buyers will pay the price for adopting the cryptocurrency.
BNP Paribas and "Big Four" accounting firm EY have completed a trial aimed to investigate if private blockchain technology could improve the bank's global internal treasury operations.
The blockchain was put through internal testing by BNP's ALM Treasury department earlier this summer.
According to a statement, the "successful" trial proved the potential of the private blockchain to drive operational efficiency by providing a more "integrated cash management approach" and allowing "greater flexibility and a 24/7 capability.
The stellar price rose by more than 100% on Monday following the announcement that the fintech platform was partnering with IBM and KlickEx to develop a blockchain-based cross-border payments solution.
IBM and Stellar Partner for Banking Solution
Monday morning, IBM announced a blockchain-banking solution intended to help financial institutions process cross-border payments more efficiently, reducing both the cost and settlement time of transactions. The platform is being developed in partnership with fintech startup Stellar, as well as KlickEx, a cross-border payments system tailored for emerging markets.
Russian president Vladimir Putin has called for a state-issued cryptocurrency – the cryptoruble.
According to Russian publication AIF, a closed-doors meeting between President Putin and Moscow’s political elite at the city’s Capital Club led to Putin make the significant decision to have Russia issue its own cryptocurrency, dubbed the ‘cryptoruble’. Details of the meeting were revealed by Russian minister of Communications and Mass Communications Nikolai Nikiforov.
The senior government official also claimed the cryptoruble will be developed and issued ‘quickly’ by the Russian state.
Well, that didn’t last long. Just one day after JPMorgan chief executive Jamie Dimon declared he was “not going to talk about bitcoin anymore,” the vocal bitcoin critic broke his silence to go on another memorable rant about the flagship cryptocurrency.
UBS Chief Executive officer Sergio Ermotti says that wealthy investors are curious about bitcoin and other crypto assets but are not ready to make significant investments in cryptocurrency.
Ermotti told Bloomberg that the exceptional year-to-date performance of bitcoin, ethereum, and other crypto assets has piqued the interest of wealthy UBS clients, but he has not noticed any “meaningful desire” among clients to actually invest in the burgeoning crypto economy.
JP Morgan Chase CEO Jamie Dimon said he is no longer going to discuss bitcoin after much his-publicized criticism of calling the cryptocurrency ‘a fraud’ last month.
Noted bitcoin critic and Wall Street banker Jamie Dimon has been known to make dramatic statements about bitcoin, calling it a ‘fraud’ that will ‘get someone killed’.
A senior Singapore central bank has called blockchain technology “a natural form of collaboration” between Singapore and the Indian state of Andhra Pradesh.
Speaking at a blockchain conference in India, Singaporean central bank managing director Ravi Menon underlined cross-border transactions as the “killer app” for blockchain technology while talking up the ongoing FinTech collaboration between Singapore and the Indian state of Andhra Pradesh.
Japanese IT giant Fujitsu will conduct a joint field trial of person-to-person money transfers between individuals from Japan’s three ‘megabanks’.
Japan is lagging behind the likes of China and South Korea in digital payments – a measly 19% of Japanese society has gone cashless, compared to over 50% of in both China and Korea. Such is the disparity that the Japanese government, this year, established a FinTech growth strategy that aims to double the adoption rate of digital payments to 40% over the next decade.
Japanese IT giant Fujitsu and three major banks have announced plans to pilot a peer-to-peer money transfer system built with blockchain technology.
In partnership with Mizuho Financial Group, Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group, Fujitsu will field trial a cloud-based blockchain platform for sending funds between individuals, as well as a smartphone app to increase the usability of the system.
In theory, the platform would link customers' fiat accounts at the three banks to the blockchain system.
Sweden’s central bank, the Riksbank, is considering whether the country should introduce a purely digital form of government-backed money, perhaps using distributed ledger technologies (DLTs) similar to the blockchain technology underlying Bitcoin. This move is part of a recent trend: around the world, nations are considering cryptocurrencies issued by central banks; and recently, the managing director of the International Monetary Fund (IMF) gave a speech hinting at its interest in the concept.
Noelle Acheson is a 10-year veteran of company analysis, corporate finance and fund management, and a member of CoinDesk's product team.
The following article originally appeared in CoinDesk Weekly, a custom-curated newsletter delivered every Sunday, exclusively to our subscribers.
As Malaysia’s central bank develops guidelines for cryptocurrencies like bitcoin, a blanket ban is still not out of the question according to its governor.
Bank Negara Malaysia (BNM) governor Muhammad bin Ibrahim was speaking to reporters on the sidelines of the 9th International Conference on Financial Crime and Terrorism Financing in Kuala Lumpur when he spoke about upcoming regulations for the cryptocurrency sector.
As reported by The Malaysian Insight, the central banker did not rule out a complete ban on cryptocurrencies.
A consortium led by Singapore’s central bank has successfully developed three new blockchain prototypes for interbank payments and settlements.
In an announcement, the Monetary Authority of Singapore (MAS) – the country’s defacto central bank and financial regulator – revealed details of its ongoing blockchain initiative dubbed “Project Ubin.
"We are in the process of developing a new operating system for the planet."
The remark, issued by Barclays' vice chairman of corporate banking, Jeremy Wilson, perhaps summed up the scope and tenor of discussion at the Blockchain for Finance conference yesterday. Held in Dublin, the event played host to participants more at home in suits than hoodies, though the mood was no less enthusiastic than if it was packed with developers.
Sounds of celebration twice interrupted R3 chief architect Richard Gendal Brown as he tried to relay the details behind the launch of the newest version of his company's Corda distributed ledger platform.
A major milestone for the startup, Corda version 1.0 follows two years of work, code contributions from over half the consortium's 100 members and more than $100 million in capital raised.
At a time in which Russian central bank officials question whether or not they should legalize cryptocurrencies, the founder of Russian bank Tinkoff, Oleg Tinkov, published a post on his Facebook page in which he states that his bank is “almost ready” to launch its own cryptocurrency, TinCoin.
According to reports, Tinkoff bank was founded in 2006 and managed to obtain a large number of clients in a short amount of time thanks to flexible credit card terms.
Investment banking giant Goldman Sachs is considering launching a dedicated bitcoin trading operation.
Goldman Sachs Explores Bitcoin Trading
Citing sources familiar with the matter, the Wall Street Journal reports that Goldman Sachs is in the early stages of planning an entry into the cryptocurrency markets, a move that would make it the first Wall Street behemoth to directly interact with bitcoin and other crypto assets.
One of Wall Street’s most influential bankers does not believe bitcoin should be illegal while adding that the cryptocurrency is “more than just a fad.”
Morgan Stanley CEO James Gorman was speaking at the ‘Wall Street Journal Future of Finance’ event when an audience member sought his opinions on cryptocurrencies.
It’s a fascinating development, that’s certainly something more than just a fad.
Earlier this week, two local bodies representing the local financial technology (fintech) industry have revealed that Singaporean banks have denied banking services to bitcoin and blockchain startups.
Singapore’s Cryptocurrency and Blockchain Industry Association, or Access, submitted a formal complaint to the Singaporean government, requesting officials to step in and create a fair and transparent environment for fintech companies.