Digital Currency Weekly Recap 6-12-2016
The MUFG Coin is Coming
As Bitcoin and many other digital currencies around the world continue to work toward gaining broader public acceptance, one Japanese lender is apparently poised to launch its own digital currency in the very near future. Bloomberg recently reported news from the Japanese newspaper Asahi that revealed that Mitsubishi UFJ Financial Group is preparing to roll out its MUFG Coin. Already, news organizations are reporting that the use of digital currency could spark major changes in global payments, making them safer and less expensive – benefits that cryptocurrency advocates have been pointing out for several years.
There is, of course, one major caveat to be observed: unlike the existing digital currencies in used today, this new bank currency will still rely on the backing of its government’s fiat currency. In other words, it is remains as centralized as any other government-issued currency, but simply provides quicker transactions and easier access to monitoring of assets by the governments of the world – not that the latter benefit is something to cheer about, of course.
Technavio Study: Digital Currency to Continue to Grow
According to a study by Technavio, digital currencies are likely to continue their growth between now and 2020. Cryptocurrency growth exceeded 622% in 2014, as investor trust in it as a safe vehicle for their money rose. Bitcoin growth topped the list of cryptocurrencies, as expected, with coins like Ripple, Litecoin, and Peercoin also included in the list of leading digital currency options. The research also forecasts strong growth in mobile wallets through 2019.
Gatecoin May Return to Action Next Month
Anyone who thought that Hong Kong exchange Gatecoin would disappear after it saw the loss of 250 Bitcoin and 185,000 Ether due to a hot wallet breach may be surprised to learn that the company is expected to relaunch operations as soon as next month. The exchange is still working on efforts to reimburse users who lost funds during the theft, and has been raising funds to accomplish that goal. Though there has been no formal announcement yet, Gatecoin CEO Aurelien Menant suggested in a recent blog entry that the company intends to “relaunch the exchange by the end of July.”
Gemini Now Open for Business in Canada
The Winklevoss brothers have taken their Gemini digital currency exchange global recently, by opening its operations in Canada. Reportedly, this is just the first move in a plan to expand internationally, with another global opening expected to be announced soon. This expansion now means that the exchange’s customers in Canada can trade Ether and Bitcoin on the exchanges ETH/BTC book, with more options to come in the near future.
DC Conference Keynote Speaker Urges Central Bankers to Issue Their Own Cryptocurrency
At the recent International Conference on Policy Challenges for the Financial Sector gathering held at the Washington D.C. Federal Reserve, the conference’s keynote speaker urged the assembled gathering of central bankers from around the world to not only pursue blockchain technology but to issue their own fiat currency in digital form. Referring to such currencies as a golden opportunity, Chain’s CEO Adam Ludwin told the assembled dignitaries that “the thing you should be working toward is central bank digital currency.”
According to Ludwin, the central bankers were intrigued by the idea. That openness could be due to a rash of recent hacks that resulted in tens of millions of dollars being stolen from banks by cybercriminals. Apparently, Ludwin tried to sell the bankers on the inevitability of digital currency taking its place within the financial system, and challenged them to decide whether they want to be in control of those currency networks or sit on the sidelines and watch private digital currencies take the lead.