Page 13 - May 2018 Disruption Report Flip Book

C R Y P T O C U R R E N C Y
J A NMUAAYR Y2 0 21 08 1 8
“There’s a significant interest in crypto—these types of actions and activities will make institutions safer so that to [customers] on the fence right now, who may say, ‘I don’t want to give my funds to some company I don’t know,’ it gets them over the line,” said Nyca Partners’ David Sica. “This is good for the ecosystem and user growth in the crypto world.”
Coinbase, which operates the largest U.S. cryptocurrency exchange by trading volume, connects to the payment system through banks and operates under state money-transmission licenses, placing the company under dozens of regulators. A federal license would streamline how Coinbase is regulated and allow the company to offer custody services directly to “deep-pocketed” clients. The company is exploring the advantages to applying for a limited-purpose bank charter or becoming an SEC-regulated brokerage firm. (Wall Street Journal, Ryan Tracy, 05/18/18; Tearsheet, Suman Bhattacharyya, 05/22/18)
What are central bankers saying about central bank cryptocurrencies?
Citi GPS analysts wrote:
Canada – Bank of Canada is studying digital currency in a different way. It is actively involved in a research paper on the concept as well as experimenting on it through the projects i.e. Project Jasper.
European Union – In Sep. 2017, the ECB rejected Estonia’s plan to launch its own state- run digital currency and indicated that the ECB will not allow any other EU member states to introduce their own currency.
Japan – Yoko Kawai, the head of the FinTech Center at the Bank of Japan said in Dec. 2017 that the central bank doesn’t see a need for issuing a digital currency as there is no demand. (link) However, Japan banks plan to introduce a J-coin for 2020 Tokyo Olympics and have gained support from central bank regulators. These coins are expected to be convertible into yen on a one-to-one basis, operating via a smartphone / QR codes that can be scanned in stores.
Saudi Arabia – Saudi Arabian Monetary Authority is working with the UAE central bank to issue a digital currency. The two countries would accept it for cross-border transactions.
© 2018 by Canfield Press, LLC. All rights reserved. www.canfieldpress.com 13