Digital Currency Weekly Recap 10-23-2016
Fearing Loss of Control, European Central Bank Seeks to Rein in Cryptocurrency
In response to the European Commission’s recently released draft rules on digital currency, the European Central Bank (ECB) issued a legal opinion this week that suggests that those proposed rules still don’t go far enough. The Commission’s proposed regulations would mandate tighter identity confirmation for people engaged in cryptocurrency to fiat exchange transactions, while also requiring digital currency exchanges to report any suspicious transactions to authorities. The ECB opinion makes clear that the central bank is opposed to the EU in any way promoting cryptocurrency use.
As the Bank noted in its opinion, “"The reliance of economic actors on virtual currency units, if substantially increased in the future, could in principle affect the central banks’ control over the supply of money.” The central bank also objected to the proposed rules’ failure to cover the use of digital currencies to purchase consumer and other goods and services – transactions that the ECB suggested could be used to finance criminal acts.
Calent Analyst Wants Central Banks to Issue Cryptocurrencies
In a recent report, Calent senior analyst John Dwyer suggested that digital currencies issued by central banks could help to strengthen the existing financial system. In his view, these cryptocurrencies would serve as another channel that central bankers could utilize to funnel capital directly to non-financial organizations. He also posits that the banks could ensure that these cryptocurrencies were programmed to lose value over time to ensure that users had an incentive to spend rather than save. That would help to accelerate inflation and assist the banks as they continue to struggle with current deflationary trends.
As Dwyer notes, central bank influence is at its highest during periods of high interest rates, and those banks have less influence when interest rates are low. With those rates near zero in many jurisdictions today, central banks are feeling the effects of that lost influence. Dwyer believes that central bank digital currencies could reverse that trend, while also enabling them to maximize the impact of negative interest rates by removing physical cash from the economy over time.
Mitsubishi Testing Crypto Rewards for Employees
A subsidiary of Mitsubishi UFJ is being used to test a new digital currency rewards program for company employees, utilizing technology developed by Israel’s Zerobillbank. The technology enables the company to use geo-location tracking to monitor when employees check in and out of work, and rewards “good behavior” by providing employees who reduce their overtime with “ooiri” currency, which is reportedly tied to the value of the Yen. That currency can then be converted into fiat using the Z-Wallet.
GameCredits to Sponsor CoinAgenda October 25-26
GameCredits recently announced that it would be sponsoring the upcoming CoinAgenda 2016 digital currency investment conference. The event will be held at Bally’s Las Vegas Hotel & Casino on October 25th and 26th, and will be attended by many of the brightest stars in the digital currency and blockchain universe. Attendees will have an opportunity to enjoy a broad exploration of cryptocurrency, funding and investment opportunities, and industry startups.
For its part, GameCredits is scheduled to make two presentations, one on each day of the two-day event, and will also be involved in two of the conference’s panel discussion. The first presentation will take place on Tuesday at 11:30, with the second being offered on Wednesday at 12:30. These presentations will provide an overview of the company’s current plans, news about its most recent partnerships, and some exciting news about the latest GameCredits innovations. Company representatives will also be available to speak with potential investors.