Digital Currency Weekly Recap 8-28-2016
Venezuelan Crypto Brokerage Announces Dash Support
With Venezuela’s currency declining in value, its economy in shambles, and inflation soaring, many of the socialist nation’s citizens have been turning to cryptocurrency as a hedge against dire economic conditions and government currency controls. Caracas-based digital currency brokerage Cryptobuyer recently announced that its platform would now expand to provide support for Dash – giving desperate Venezuelans access to a payment network that enables them to use their digital currencies to pay for needed goods and services.
In its recent announcement, Cryptobuyer CEO Jorge Farias noted announced that the new partnership with Dash would provide a way for people in countries like Venezuela to buy and sell goods and services even in an economy that is crumbing around their feet. Citizens using either Bitcoin or Dash can use those currencies to pay cell phone bills, top up debit cards, purchase many online goods, and receive remittances and payments.
Coinbase Offers Mobile Digital Currency Buys to European Users
San Francisco-based cryptocurrency platform and wallet provider Coinbase recently announced that it will be enabling its European users to purchase digital currencies using just their debit or credit cards and a mobile device. The move is a continuation of the company’s efforts to expand mobile crypto purchases to customers outside the United States, and follows similar offering launches in Australia, Singapore, and Canada.
YoCoin Becomes Ethereum Based, Adds Smart Contracts
The new cryptocurrency YoCoin, which launched in early July of 2016, recently announced that has now become an Ethereum-based currency – something that will allow it to add smart contract to its list of offerings. This latest version of the currency is designed to form a solid foundation for things like asset trading, escrow services, smart contracts, and other applications. YoCoin users who still have the original version of the coins can reportedly exchange them for the new Ethereum-based version at an exchange rate of one-to-one.
Banks to Create New Digital Currency; Media Offers Confused Reporting
As one media outlet after another reported this week on the news that four of the world’s largest banks were uniting to create and launch their own digital currency, many did so with an air of concern. Some reports focused on the news as a threat to Bitcoin and other digital currencies, while others emphasized the dangers associated with allowing banks to create their own money. Most treated the news as though this would be just another new cryptocurrency – one that might even give other currencies like Bitcoin some serious competition. Nothing could be further from the truth.
The new digital currency, created as the result of a partnership between Deutsche Bank, USB, BNY Mellon, and Banco Santander – along with broker ICAP, is tentatively being referred to as a “utility settlement coin.” Unlike Bitcoin, DNotes, or most other digital currencies, the banks’ currency is designed for a closed system outside of the public venue, and will be used for settlements between banks. In short, it is an attempt by the banks to realize the cost-savings and efficiencies offered by blockchain technology, without relying on any decentralized cryptocurrency.
Unlike the many digital currency offerings in the marketplace today, these utility settlement coins will not be available for public use – making them the digital equivalent of the old $100,000 bills that were used only in exchanges between Federal Reserve Banks.