Digital Currency Weekly Recap 11-13-2016
A Growing Trend: Nations Around the Globe Announce National Digital Currencies
Okay, this is not exactly what the average digital currency enthusiast had in mind...
In Senegal, the country’s financial authorities have announced plans to begin issuing a blockchain-based national digital currency that will be called eCFA. This new currency will be considered legal tender and will complement that nation’s CFA Franc currency. The selected name reveals everything that digital currency fans need to know, since the new currency is really just a digitized version of Senegal’s fiat currency – and will be in circulation right alongside the Franc. And as with any national currency, it will be issued by the country’s central bank.
Meanwhile, the National Bank of Ukraine has proposed transforming that country’s currency into digital currency as part of a planned effort to go completely cashless. Just as in Senegal, that national cryptocurrency would be under the control of the central bank, ensuring that the same authorities who have managed the nation’s fiat currency continue their stranglehold on the people’s money. Similar proposals have been debated in countries like China, South Korea, and the UK. And while some argue that national digital currencies are a positive step toward greater cryptocurrency adoption that could benefit currencies like Bitcoin and DNotes down the road, it’s also reasonable to question that assumption.
New Research Reveals 1% of US and Chinese Online Shoppers Pay with Digital Currency
The results of new research indicate that Chinese and American online consumers are beginning to warm to the idea of using digital currencies for their shopping needs. At present, however, that warming remains in the nascent stages. According to the study, Understanding Digital Currency in the U.S. and China, only about one percent of consumers in the two countries use cryptocurrency for online purchases. The study also reveals that digital commerce in the two largest economies in the world has been adopted by the vast majority of both nations’ citizens.
McAfee Sounds Alarm: Smartphones Endanger Digital Currency
Anti-virus pioneer, security guru, and failed Libertarian Presidential Candidate John McAfee recently sounded a dire warning about the intersection of smartphones and cryptocurrency. Citing the need for an even greater emphasis on security, the tech innovator offered his assessment of the current state of online money interactions in a recent interview with the IBTimes UK. McAfee noted that today’s smartphones are not designed to provide the type of security that digital currencies need, and thus anyone with digital currency in wallets on a smartphone could be a prime target for hackers and thieves. In fact, he went so far as to suggest that he would only need a phone number and five minutes to transfer a user’s digital currency to his personal account.
DOJ Seeking Crypto Legal Experts
According to its own job postings, the United States Department of Justice is searching for legal experts with specific knowledge and experience in asset forfeiture and anti-money laundering laws to help it develop regulations for digital currency. There is reportedly no specific requirement that applicants possess any knowledge about digital currency – which might seem strange given that these legal gurus will be expected to be involved in the “preparation of policy guidance and regulations relating to money laundering, including policies and regulations governing virtual currency. Then again, actual knowledge about the subject matter under consideration has never been a prerequisite for Congressional action of any kind, so why should the DOJ be any different?