ASIC’s Greg Medcraft says traditional bank accounts may be obsolete in a decade
Bank accounts could become unnecessary within the next decade because central banks will create digital currencies and allow customers to hold deposits directly with them, predicts Greg Medcraft, chairman of the Australian Securities and Investments Commission. The issuance by central banks of digital versions of their fiat currencies onto distributed ledgers would lead to widespread disaggregation for commercial banks, which would be forced to fight much harder to attract funding alongside market-based funds in a radical upheaval of financial markets. Banks and policy makers should be studying the ramifications for the Australian economy given central bank-issued digital currencies could start to appear globally in the next five to 10 years, […]
PowerLedger’s Bitcoin IPO powers towards $30m
Perth energy trading platform PowerLedger has raised $17 million in the first two stages of its Australia-first virtual currency IPO and looks set to raise more than $30 million by the time its public offer closes. Demand has exceeded Powerledger’s initial expectations and the success of the “initial coin offering” or “ICO” shows there can be a strong appetite for fundraising offers from Australian firms using this novel form of fundraising and virtual currencies like Bitcoin and Ethereum. Chair Jemma Green said the $17 million came from a discounted private presale of 90 million Powerledger tokens or POWRs to members of the company’s community, and a public presale of 100 […]
Cryptocurrencies are new barbarians at the gate of central banks
When the cryptocurrency Exio Coin starts a round of fundraising on September 7, its founders say the unit will come with a unique distinction: the first to be endorsed by a sovereign nation. The identity of the government backer won’t be revealed until October, and Bloomberg News has no way of verifying the claim of support. According to co-founder Sunny Johnson though, the supporter is one of “the world’s richest countries” on a per capita basis. The claim of official approval highlights how the boom in cryptocurrencies and their underlying technology is becoming too big for central banks, long the guardian of official money, to ignore. From speculative betting to […]
How to buy Bitcoin: Crypto currency making a comeback with investors
Ever wondered what $50,000 looks like in cash, gold and silver? While piles of $100 notes or ingots of silver might make the money hungry salivate, the equivalent value in gold is a paltry #g bar and almost doesn’t seem worth acknowledging. But spare a thought for those who invest their hard-earned money in an item that delivers even less of a visible return but which has rapidly grown in popularity around the world: Bitcoin. A $50,000 “piece” of the crypto currency is rendered physically as a mere printout of a QR code on a piece of card. Hardly inspiring stuff. Yet, the way Australians invest their hard-earned cash seems […]
Who is using bitcoin in Australia?
If you’re wondering who are the major bitcoin users in Australia, they are white males under the age of 34 living on the eastern seaboard, according to research undertaken last month. The research, carried out by Bitcoin.com.au, shows millennials are adapting to bitcoin, the peer-to-peer (P2P) digital currency, just like other systems of “collective commons” such as Uber and Netflix, which provide greater savings and efficiency to customers. Most of those Australians surveyed said they were using bitcoin for the purpose of investment. With the price of one bitcoin rising more than 500 per cent in the past 12 months (August 2016: $US600; August 2017: $US3200), it’s historically been a […]
Bitcoin Cash just exploded in value
Bitcoin Cash is the latest major cryptocurrency to surge in value, with prices more than doubling over the past two days. Following Bitcoin’s split on August 1, the alternative Bitcoin Cash traded consistently at around $US300. Demand then spiked and a short time ago, prices had shot up to more than $US700. The price surge means that Bitcoin Cash is now the world’s third biggest cryptocurrency by market capitalisation, behind Bitcoin and Ethereum. Prices for Bitcoin were holding steady this morning at just over $US4,100, but down from their record highs earlier in the week above $US4,400. Amid the recent surges in both Bitcoin and Bitcoin Cash, Ethereum prices have […]
Australia aims to regulate Bitcoin exchanges
While the bitcoin rate is climbing new heights nearly every week, it becomes more and more obvious that a regulatory environment around the bitcoin and other cryptocurrencies has to evolve as well. Until now there has been two Asian countries, China and Japan, that have announced its desire to regulate their local bitcoin exchanges. This week these countries were joined by Australia, another major market. Let’s quickly analyse the pros and cons of such practices. Bitcoin Use Cases Today the bitcoin is used for nearly all possible kinds of transactions. It is possible to buy a cup of coffee, pay a tuition fee in some universities or simply settle down […]
Blockchain in race to remake one of the world’s oldest markets
The blockchain revolution is gunning for the gold market. Public online ledgers that emerged from the explosive markets for bitcoin, a virtual currency, already have drawn the attention of businesses from banks to retailers who see blockchain systems as a revolutionary way to verify and record transactions. Now, companies including exchange owner CME Group, IEX Group spinoff TradeWind Markets and financial technology firm Paxos are rolling out similar platforms to bring gold into the digital age. About $US27 billion ($34.1 billion) of gold changes hands every day in over-the-counter markets where settlements can sometimes takes days, leaving price risk for buyers and sellers. Using blockchain promises more transparency, security and […]
