Digital Currency Weekly Recap 7-31-2016
Zcash Launch Delayed for Code Audit
The expected launch of mining efforts for the new digital currency Zcash has been put on hold temporarily to provide the startup with extra time to have its code audited by third party analysts. The decision to take the extra precautions prior to launch has been applauded by some, particularly in light of the recent problems with the DAO. Zcash founder Zooko Wilcox is taking no chances with his new venture, which is probably for the best given that his security company had actually been hired to audit Ethereum’s code and he has recently expressed his own regret at not being able to help make that currency or the DAO more resistant to what he called “DAO disaster-like problems.”
Zcash has received attention for its efforts to launch what is being seen as the world’s first real anonymous cryptocurrency, and has been bolstered by an infusion of investment capital from investors like Digital Currency Group, Pantera Capital, and Roger Ver. The current audit involves two separate analyst firms which will publish their eventual findings.
Scottish Think Tank Identifies Nine Potential Currency Options for Independent Scotland
Though the people of Scotland only recently rejected a move to withdraw from the United Kingdom and assert their independence, Britain’s recent vote to leave the European Union has once again reignited the debate over pursuing Scottish separation from the UK. In the past, such calls have prompted debate about what currency option an independent Scotland would choose, with some calling for a Scottish Pound and others calling for maintaining use of the Sterling or even opting for a digital currency. A new think tank report from the Common Weal recently offered nine different options that Scotland could pursue if it opted for independence from the UK.
The existing Scotcoin was featured prominently in the group’s assessment, with both the potential benefits and drawbacks presented for consideration. Other currency options that are detailed in the report include a continued use of the Pound Sterling, a new currency that could be called the Scot Pound – tied to the Pound Sterling, a similar currency that would instead have its value tied to the Euro, and adoption of the Euro – assuming that the new independent Scotland would choose to remain with the EU. There’s even a proposal that would tie the value of any new Scottish currency to the value of something like oil or gold.
Classic Ether Climbs in Value
In the wake of the Ethereum hard fork, that portion of the Ethereum blockchain that refused to go along with the forking decision has seen its alternative Ether cryptocurrency – now called “Classic Ether” – explode in value. Trading appears to be brisk, and the alternative Ether has earned a listing on a number of exchanges. As a result, Classic Ether’s market cap reached $130 million this week, and it has climbed the digital currency charts to settle into position as the sixth largest cryptocurrency. At times during the last week, Classic Ether trading has been twice that of the rival Ether supported by proponents of the fork.
FSB Still Evaluating Risks for Digital Currency Adoption
The latest annual report from the Financial Stability Board (FSB) – an international group of regulators and central bankers – suggests that the body is still continuing in its efforts to weight the risks and potential benefits associated with cryptocurrencies. In its latest report, the FSB acknowledged that there was still a great deal of study that needed to be done to assess how innovations in financial technology could impact the public and the world economy. The international body has noted that it will continue in that effort, in cooperation with regulators and various groups responsible for setting standards.