Bitcoin Cash Community Funds Eatbch Trip to Ghana

Bitcoin Cash Community Funds Eatbch Representative's Trip to Ghana

This week members of the Bitcoin Cash (BCH) community donated funds to Eatbch South Sudan volunteer Thiong Deng so he could spread the word about the benefits of BCH at the Young African Leaders Summit. According to Deng, his journey to Uganda and Ghana has been fully funded which includes flight, hotel, visa costs, and a ticket to the event.

Also Read: The Bank of Google Wants Your Spending Data

Eatbch South Sudan Volunteer Heads to the Young African Leaders Summit

Eatbch is easily recognized as the Bitcoin Cash community’s most favorite charity because the nonprofit organization has been using BCH to help people throughout Venezuela and South Sudan. People can follow Eatbch on Twitter and see how the “peer-to-peer electronic cash-to-food system” feeds families and children in need regularly. Just recently, the nonprofit published a new website called eatbch.org that shows the tremendous work being done in South Sudan and Venezuela. Moreover, the website’s visitors can donate bitcoin cash directly to the effort so people can help others experiencing economic hardships and difficult times.

Last September, news.Bitcoin.com reported on Eatbch South Sudan leader Emmanuel Lobijo, who was invited to attend the UN Secretary-General’s Climate Action Summit. Lobijo joined Greta Thunberg and many other activists at the UN’s event in New York. The Eatbch South Sudan leader explained how BCH can “bridge access to the world” and how the charitable organization is using bitcoin cash to fight water wars, drought, and famine in the African country.

Bitcoin Cash Community Funds Eatbch Trip to Ghana

This week members of the BCH community funded Eatbch South Sudan volunteer Thiong Micheal Deng’s trip so he could attend the Young African Leaders Summit in Ghana. On November 13 and 14, BCH proponents on Twitter and Reddit asked the community to help fund Deng’s trip. “Can we get Thiong, an Eatbch South Sudan representative to the Young African Leaders Summit? He still needs $800 dollars of funding,” one Reddit post asked. Deng disclosed all the anticipated expenses for the trip to the Young African Leaders Summit and thanked the community for the “generous donations” but he still had $835 left to raise.

Bitcoin Cash Community Funds Eatbch Trip to Ghana

BCH Community Funds Travel Expenses to Ghana

On Twitter, software engineer Josh Ellithorpe (who designed the eatbch.org website) also asked BCH supporters to help fund Deng’s travels. “This is the last day to get Thiong (an Eatbch South Sudan representative) to the Young African Leaders Summit,” Ellithorpe tweeted. “Let’s support him in spreading the word about Bitcoin Cash and the excellent work of Eatbch.”

Bitcoin Cash Community Funds Eatbch Trip to Ghana

After a few BCH proponents made requests to the community, Deng managed to get the funds needed to embark on the trip. “Thanks, Bitcoin cash community,” Deng said. “[You] have set up my journey to Uganda — 18-hour bus drive — then flight to Ghana for the conference. BCH you made it happen — thanks for the love.” The BCH community members who helped fund the trip and the work being done by Eatbch at large demonstrates how passionate BCH proponents are about peer-to-peer cash. The work Eatbch does each and every day showcases how decentralized, borderless cryptocurrencies can truly revolutionize the global economy.

What do you think about the BCH community funding Thiong Deng’s trip? What do you think about the nonprofit Eatbch’s efforts and activism in Venezuela and South Sudan? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, eatbch.org, and Twitter.


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Source: Bitcoinnews.com

USA To Enforce Strict AML Rules For Cryptocurrencies, FinCEN Director Says

The cryptocurrency market has spiked the interest from the media and regulators over the last several years. Its actual lack of established regulations leads to numerous alleged criminal activities, and the U.S. government is reportedly preparing to act against potential money-laundering schemes.

The director of the Financial Crimes Enforcement Network (FinCEN), Kenneth Blanco, has recently said that the country is looking for a way to introduce more strict enforcements on several cryptocurrency-related types of businesses.

It’s called the “travel rule,” and it would still require all crypto exchanges to verify the identities of each customer (a process known as KYC – know your customer). However, they would also need to identify the original parties and beneficiaries of transfers for over $3,000, and that information will be provided to counterparties, if applicable.

Blanco spoke last Friday at a conference in New York, where he added:

“It [travel rule] applies to convertible virtual currencies, and we expect that you will comply period. That’s what our expectation is. You will comply. I don’t know what the shock is. This is nothing new.”

Apparently, FinCEN introduced the travel rule back in 1996. Its original purpose was also anti-money laundering (AML), and it covered all financial institutions in the United States at that time. In 2013, the rule was updated to include all cryptocurrencies, as well. Despite the above, the CEO of CipherTrace, a blockchain-based forensics company, purportedly said that digital assets have never been considered as money, so the travel rule should not be including them.

It’s also worth noting that the U.S. Financial Action Task Force (FATF) had published a set of guidelines for cryptocurrency exchanges to follow. All exchanges have until June 2020 to adjust and start complying, as well.

Cryptocurrency’s Other Side

While Bitcoin and other cryptocurrencies have been used mostly for beneficial purposes, they have also been implicated in alleged criminal activities.

On the other side stands the argument that cash is still the most used method for money laundering, as per research conducted by the EU. It was also supported by Yaya Fanusie, the director of analysis for the Foundation for Defense of Democracies Center on Sanctions and Illicit Finance. When asked about the most widely adopted form of money laundering, he said: “cold cash is still king.”

The post USA To Enforce Strict AML Rules For Cryptocurrencies, FinCEN Director Says appeared first on CryptoPotato.

Source: Crypto Potato

BREAKING: George Bush’s Son Received $300K From OneCoin Scammer

George Bush Son Earned 300K From Onecoin Scam, Court Hears

Neil Bush, son of former US President George H. W. Bush, was paid $300,000 by Ruja Ignatova for attending a meeting related to her fraudulent cryptocurrency known as OneCoin, according to law360, citing a failed subpoena bid.


Former Locke Lord Attorney Misled by Bush’s Connection with OneCoin

Mark Scott, a former attorney at international firm Locke Lord, is facing trial in a US court law for allegedly conspiring with Ignatova, nicknamed Cryptoqueen, and her brother Konstanin Ignatov, to launder illicit money from the renowned ponzi scheme, OneCoin. Ignatova is indicted on money laundering charges and has gone into hiding, while her brother was apprehended earlier this year.

Back to Scott. He doesn’t accept the charges against him and claims that he thought everything was legal. Scott’s attorney, Arlo Devlin-Brown, told US District Judge Edgardo Ramos that Neil Bush – brother of former President George W. Bush and son of late President George H.W. Bush – met with Ignatova and this is why Scott felt comfortable with the deal.

“This isn’t just: ‘We saw the name Bush on a transaction and cut a subpoena,” Devlin-Brown said. He wants Bush to be testified.

Investor Neil Bush was previously contacted by the FBI agents investigating the scheme, as he is a board member at Hoifu Energy, a company owned by Chinese businessman Dr. Hui Chi Ming. The company was involved in a $60 million loan deal that would be financed with cash and, strangely enough, OneCoin.

Bush testifying about his role would demonstrate that the deal was not the scam the US government claims it to be, Devlin-Brown said.

Judge Ramos asked Scott counsel David Garvin:

So, there was an actual meeting with Ms. Ignatova, Mr. Bush and Mr. Hui?

Garvin responded affirmatively and said that Bush was paid $300,000 for attending the meeting.

Neil Bush Met with Ignatova and Mr. Hui in Hong-Kong

Garvin read aloud an FBI interview with Neil Bush speaking about the meeting that took place in Hong Kong, the headquarters of Hoifu Energy. The investor was about to profit from the oil field deal. As per the FBI report:

Bush recalled that the head of Hoifu Energy, Dr. Hui Chi Ming, received a bunch of cryptocurrency for an oil deal in Madagascar. Bush had a residual interest in the cryptocurrency from the oil deal. Bush met the woman from the cryptocurrency company, Ruja Ignatova, in Hong Kong with Dr. Hui.

Garvin cited the FBI files, saying that Hui had told the former President’s son he was entitled to 10% of the deal if Hui could sell the cryptocurrency. Nevertheless, the deal failed.

David Gerger, the counsel of Neil Bush, admitted that the investor was present at the meeting with Ignatova, but he wasn’t a board member at Hoifu Energy, and he had nothing to do with Scott. Gerger explained:

He did not exercise that option and he did not invest. After he attended one meeting, I think he asked a few more questions, and that was it.

Gerger claims that Bush’s testimony wouldn’t make any difference, especially when his interview is already recorded.

In the end, the judge agreed that Bush’s testimony was not relevant to Scott’s defense and rejected to look further into that.

Konstantin Ignatov Pleads Guilty

In October, Cryptoqueen’s brother Konstantin Ignatov pleaded guilty and might face up to 90 years in prison. He was charged with money laundering and fraud. While his plea deal was signed last month, it became public on Thursday.

Ignatov was arrested in March of this year at Los Angeles International Airport.

Investigators estimated that the OneCoin ponzi scheme had raised about $5 billion so far. The Bulgaria-based entity behind the scheme operates to this day.

Are you surprised about Bush’s meeting with Ignatova? Share your thoughts in the comments section! 


Image via Shutterstock

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Source: Bitcoininst

The Bank of Google Wants Your Spending Data

The multinational technology giant Google has plans to get into the banking industry according to multiple reports that reveal the firm intends to work with Stanford Federal Credit Union and Citigroup. However, analysts assert that Google is not jumping into banking for revenue purposes and the move is simply an acquisition of more customer data.

Also Read: Banks Stopped Walmart Bank – Now the Retail Giant Hits Back With Crypto

Google Bank

One of the ‘Big Four’ technology companies, Google LLC, plans to launch checking accounts through a partnership with Citigroup, Stanford Federal Credit Union, and a number of other financial partners. The secret project has a code name called ‘Cache,’ according to sources stemming from the Wall Street Journal. However, people using the Google-backed checking accounts might not know the internet-related services company is behind the financial products. The checking accounts will still feature branding from the likes of financial incumbents such as Citibank and Google will only work behind the scenes. Google executive Caesar Sengupta explained:

Our approach is going to be to partner deeply with banks and the financial system — It may be the slightly longer path, but it’s more sustainable.

The move by Google follows the recent partnership between Apple and Goldman Sachs that produced the Apple Card product. Many speculators believe Google is planning to enter the fray of banking in order to stay competitive with the other three heavyweights Facebook, Amazon, and Apple. In a note to clients this week, Wells Fargo’s analyst Brian Fitzgerald said that Google is more interested in obtaining data. “Google is likely entering into these partnerships to increase its insights into consumer purchase behavior and consumer finances more broadly,” Fitzgerald said. At the moment, a lot of the giant tech firms are laser-focused on financial technology and Facebook’s Calibra project is a testament to the trend. “Google is primarily focused on data to feed its core ad business, and less so on acting as a full-fledged bank,” CB Insights senior intelligence analyst Arieh Levi remarked.

Another Extension of Surveillance Capitalism

Since the news went viral the ‘Bank of Google’ discussion has a lot of people wondering if Google will be privy to everyone’s finance behavior. Combing personal data like spending habits is just another extension of surveillance capitalism in the opinion of many skeptics. But Google believes the strategy is good for the internet in general. “If we can help more people do more stuff in a digital way online, it’s good for the internet and good for us,” Sengupta stressed to the Wall Street Journal. “Of course they plan to leave the nitty-gritty details to the traditional finance folks. All Google is really interested in is your financial data and for that I’m sure they’ll be willing to slap a kickass GUI and possibly a bit of value add as far as fees and rates are concerned,” Mati Greenspan, senior market analyst at Etoro explained in a note to investors about Google announcing “intentions to get deeper into financial services.”

”Facebook, Google, Amazon, Apple, they all just want to be like Tencent who’s been dominating Chinese payments for nearly a decade. In fact, the earnings report from Tencent today seemed to contain just as much valuable insight into the Chinese consumer than it did the actual company,” Greenspan added.

Many people believe massive tech firms like Apple and Google becoming financial behemoths is not out of the question, despite the kickback these companies receive from governments. However, the retail giant Walmart had its banking intentions stopped by financial institutions lobbying politicians. A few years later, Walmart is now exploring cryptocurrency concepts. To digital currency advocates, the Google checking account news is just one more sign of the surveillance state growing larger, which in turn could push people toward decentralized cryptocurrencies.

What do you think about Google’s ambitions toward being a bank? Do you think with big tech companies like Apple, Facebook, Amazon, and Google getting into financial services will drive more people toward decentralized cryptocurrencies? Let us know your thoughts in the comments section below.


Image credits: Shutterstock, The Intercept, Pixabay, Wiki Commons, Google Logo, Fair Use.


Do you want to dig deeper into Bitcoin? Explore past and present cryptocurrency prices through our Bitcoin Markets tool and head to our Blockchain Explorer to view specific transactions, addresses, and blocks.

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Source: Bitcoinnews.com

Nothing Is Immune to Disruption – Including Breakfast

Breakfast With Milk

Milk and orange juice. They’ve been breakfast staples of the Fix (and America) for a long time. And now both industries are facing an existential crisis.

America’s largest milk producer, Dean Foods, filed for bankruptcy this week (CNBC). Dean Foods will remain in operation while it reorganizes and addresses its debt. So don’t worry about milk disappearing from the shelves of your grocery store. There’s plenty to go around.

Dean Foods hopes the Dairy Farmers of America will buy it out. The two parties are in “advanced” discussions about that possibility.

But even if Dean Foods is acquired, that doesn’t change the fact that the milk industry in the United States is in trouble.

Chart - Declining U.S. Milk Consumption

Per capita consumption of milk has dropped about 26% in the U.S. in the last 20 years. Combine that with falling milk prices, trade concerns and labor shortages and you get an industry in turmoil.

So why are people drinking less milk? It’s mostly health-related. People are switching to nondairy alternatives. And that’s disrupting – and reshaping – the industry.

America’s orange industry is dealing with a different type of disruption. Actually it’s dealing with two different types of disruption – one short term and one long term.

When Hurricane Irma hit in 2017, it uprooted citrus trees throughout Florida. Juice processors didn’t expect Florida’s citrus industry to get back on its feet quickly. So they signed three- and five-year contracts with foreign growers.

But Florida citrus growers bounced back faster than anyone expected. And now they have lots of oranges and grapefruits (among other things) to sell. But there’s nobody to buy their products (TCPalm).

Florida’s citrus industry will survive its short-term oversupply problems. But there’s a far more dangerous threat that could kill it for good.

A pathogen (originally from China) called huanglongbing (HLB) has infected 90% of the state’s citrus groves. The pathogen prevents fruit from ripening. Scientists have no idea how to kill HLB. And unless a cure for HLB is found, Florida’s $9 billion citrus industry could be dead within 10 years (The Washington Post).

Just thinking about Florida’s citrus trees going away is depressing. But that’s not the point of this story.

There’s a reason we focus on disruption in the startup space. When an industry is disrupted, there are billions of dollars on the line. That’s why startups that disrupt the status quo are so valuable. The markets they’re addressing are immense.

But it takes a savvy investor to understand disruption can come from anywhere. No industry is safe. No product is safe. No sector is safe. You need to keep your eyes and mind open to the possibilities. Disruption is everywhere – if you’re willing to see it. And so are the good investment opportunities that disruption creates.

The post Nothing Is Immune to Disruption – Including Breakfast appeared first on Early Investing.

Source: Early Investing

Saturday Market Watch: Bitcoin Faces Crucial Support, Altcoins Bleeding

The last couple of days saw the entire cryptocurrency market bleeding as Bitcoin and altcoins all marked notable decreases.

Bitcoin lost around 5% of its USD value at one point, as it dropped from a daily high of $8,800 to about $8,360 in just a few hours. The cryptocurrency managed to recover ever so slightly as it’s currently trading at around $8,470, still down about 2 percent on the day.

As CryptoPotato reported, the support at $8,500 also represents the Golden Fibonacci level of 61.8% since the significant 42% surge a few weeks ago. As such, it’s essential to see how the price will perform here and whether bears will keep on dominating the market momentum. For the current trend to reverse, Bitcoin’s price would have to break above $8,700 and $8,800 and then face the psychological resistance at $9,000.

Bitcoin Price
BTC/USD. Source: TradingView

The situation with altcoins isn’t any better either. While some cryptocurrencies managed to increase during Bitcoin’s consolidation period earlier this week, a lot of them are currently trading in the red. Ethereum, for instance, spiked to $187 but pulled back since then and is currently trading at $183, down 2%. XRP’s also dropped from $0.27 to $0.263 to record a loss of around 1.5%. While they might seem insignificant, these losses add up, and the entire market’s capitalization lost about $3 billion over the past 24 hours.

Total Market Capitazalition: $233 Billion | Bitcoin Market Capitalization: $154 Billion | Bitcoin Dominance: 65.9%

Major Crypto Headlines

Anonymous Donating $75 Million in Bitcoin to Startups Protecting Online Anonymity. The evolution of technology has caused a blow to people’s privacy, but the popular international hacktivist group Anonymous is reportedly taking a stand against it. The group will launch the so-called Unknown Fund and will donate $75 million in Bitcoin to startups that contribute to anonymity, in general.

Crypto Leaders Push PornHub To Bitcoin Following Paypal’s Ban. PayPal recently stopped processing payments for the popular adult website, PornHub, and some of the leaders within the cryptocurrency community reacted swiftly. According to proponents such as Justin Sun and Changpeng Zhao, among many others, this might be crypto’s moment to receive further attention by being introduced as an alternative to PayPal.

Russia, China, And Other BRICS Members Consider Launching Cryptocurrency For Payments. BRICS, the international group of emerging nations including Brazil, Russia, India, China, and South Africa, is reportedly considering the creation of a cryptocurrency. It would be part of a single payment system for operations among the members of the group.

Significant Daily Gainers and Losers

Luna (17.31%)

Despite the unfavorable market conditions, LUNA is the most notable gainer among the top 100 cryptocurrencies by market cap. The price has increased by over 17% against the dollar and is now at $0.43. The surge against BTC is even more impressive, with almost 20%, reaching 5056 Sat. The company behind Luna, Terra Network, recently announced its new protocol, which will supposedly provide higher rewards.

EDUcare (7.25%)

EKT is next with over 7% increases in the last 24 hours, reaching a price of $0.10 against the dollar. With Bitcoin’s recent decrease, EKT is over 9% up against it, and it’s at 1220 SAT at the time of this writing. As per EDUcare’s weekly report, its main network block increased by 300000 blocks in the last few weeks.

DxChain Token (-20.54%)

With several days of notable increases, DX’s price is taking a beating with a 20% decrease over the last 24 hours. DxChain recorded its all-time high on November 11th at $0.0029 and is now trading at $0.0015, which is a total plunge of almost 50%. Oddly enough, the price retraced as the company announced its mainnet launch.

The post Saturday Market Watch: Bitcoin Faces Crucial Support, Altcoins Bleeding appeared first on CryptoPotato.

Source: Crypto Potato

IRS has Growing Concerns About Crypto Kiosks and ATMs

IRS Investigates Crypto ATMs and Kiosks

The IRS has announced that it is investigating crypto kiosks and ATMs with concerns regarding tax evasions, as well as the possibility of money laundering, controlled substance purchase, and similar crimes.


Crypto ATMs and kiosks have become an increasingly popular method of purchasing cryptocurrencies, as well as withdrawing funds among the United States-based crypto users. However, according to a recent Bloomberg interview, the IRS has raised concerns over potential tax evasion issues that might arise from the increased use of the machines.

The IRS concerns

The problem lies in the fact that anyone can walk up to one of crypto ATMs or kiosks, deposit cash and receive BTC. Naturally, the IRS would like to know who these users are, what are their goals, where does their money come from, and so on. However, they are also interested in the owners of the kiosks, who are making money by offering their devices to the public.

They’re required to abide by the same know-your-customer, anti-money laundering regulations, and we believe some have varying levels of adherence to those regulations

The IRS is not the only agency with these concerns, according to the Investigation Chief, John Fort. Fort explained that he and his team are already collaborating with other law enforcement agencies and other allies. He also stated that the investigators are monitoring any potential unlawful activities that may come from the use of these devices.

IRS crypto and bitcoin tax

So far, there were no public cases filed, although Fort admits that there are a few ‘open cases in inventory.’ The cases in question may or may not have a direct connection to bank accounts, according to Fort.

Crypto kiosks need to be regulatory-compliant

The number of crypto kiosks is constantly growing in many major cities throughout the US, which is concerning, considering cryptocurrencies’ potential uses in criminal activities. However, Fort admits that the situation is not exactly simple and that one of the major concerns is that these efforts might push people toward foreign exchanges.

Fort further added that the biggest issue by far concerns taxes, and that this is likely a rising threat.

Do you think that there are reasons for concern regarding the use of crypto kiosks? Add your thoughts below!


Images via Shutterstock

The post IRS has Growing Concerns About Crypto Kiosks and ATMs appeared first on Bitcoinist.com.

Source: Bitcoininst

BBC Investigation Links Russia’s FSB To $450M Exchange Collapse

BBC Russia FSB $450 million Bitcoin

A BBC investigation has revealed links between Russia’s intelligence agency, the Federal Security Service (FSB), and the collapse of the Wex cryptocurrency exchange in 2018. One of the sites co-founders claimed that he was forced to hand over customers’ wallet data and told the money (around $450 million) would go to “the FSB fund.”


BBC Audio Recordings Reveal FSB’s Desires

The BBC has obtained audio recordings of telephone conversations, in which it is claimed, Konstantin Malofeev discusses the importance in bringing Wex under FSB control. Malofeev is a Russian billionaire who is currently under US sanctions for bankrolling pro-Russian forces in Eastern Ukraine, the so-called Donetsk People’s Republic.

Following the phone calls in April 2018, Wex founder, Alexey Bilyuchenko, claims he was taken to FSB offices in Moscow. There he handed over flash-disks containing instructions on how to access customers’ online wallets, containing around $450 million worth of bitcoin and other cryptocurrency.

Bilyuchenko claims that he was told that the money would go to “the FSB fund.”

Three months later, Bitcoin price spiked on the exchange, before customer withdrawals were frozen. The exchange finally shut down towards the end of 2018.

Wex Sprang From the Ashes Of BTC-e

Wex had only come into existence in 2017, following the closure of the BTC-e exchange by the FBI and the arrest of Alexander Vinnik.

The BTC-e exchange, also founded by Bilyuchenko, was being investigated for money laundering, allegedly enabling the movement of around $4 billion in illicit funds. It was allegedly used by the Russian hacking group, Fancy Bear, who had links to the US Democrat Party hack in the lead up to the 2016 election.

If Bilyuchenko launches another cryptocurrency exchange, then it is probably wisest to stay well clear.

Do As We Say, Not As We Do

Whilst the allegations by the BBC investigation would seem to suggest that Russia’s intelligence agencies have no issue with Bitcoin and cryptocurrency, there is still no movement on its legal status in the country.

In July, officials stated that it would not receive monetary status at any time soon. Then in September there were suggestions that mined Bitcoin may be taxed in the same manner as found treasure.

Although, if the BBC investigation is to be believed, then perhaps it is less like found treasure, and more like pirate’s booty.

What do you think about this recent discovery? Add your comments below!


Images via Shutterstock

The post BBC Investigation Links Russia’s FSB To $450M Exchange Collapse appeared first on Bitcoinist.com.

Source: Bitcoininst

Global Trend Against Cash Intensifies as China Joins the Squeeze

Global Trend Against Cash Intensifies as China Joins the Squeeze

For various reasons, a growing number of nations are experiencing the rapid development of cashless society. Paper money may become extinct in some countries in the not-so-distant future. Prompted by the spread of private and decentralized cryptocurrencies and the threat of losing control over their monetary policies, more and more governments are now working to create central bank issued digital currencies to replace banknotes and coins. China has joined the campaign against cash, although not at the expense of centralized monetary power.

Also read: Japan Pushes Cashless Agenda by Rewarding Non-Cash Payments After Tax Hike

China to Trial ‘Large-Scale Cash Management’

In a move that many consider part of Beijing’s plans to introduce a digital version of the national fiat, the yuan, the People’s Bank of China (PBOS) has revealed plans to implement pilot programs aimed at exerting greater control over cash transactions. According to a notice issued by the central bank, the trials will be conducted in three Chinese regions, the provinces of Hebei and Zhejiang and Shenzhen City, within the next two years.

In a report addressing fears that the initiative will restrict public access to cash, the state-run news agency Xinhua explained that despite the rapid development of non-cash payment platforms in recent years, the total amount of cash in circulation has remained at a stable level while large-volume cash transactions have in fact continued to grow. Besides, these have been concentrating in specific areas, groups of people and periods, arguably lowering the overall efficiency of cash flow.

Global Trend Against Cash Intensifies as China Joins the Squeeze

PBOS shares its own reasons to implement the new control mechanism. Large amounts of cash are widely used in China, the bank points out, and they are exploited in criminal activities such as corruption, tax evasion and money laundering. The regulator will impose stricter supervision and introduce reporting requirements for cash operations over certain thresholds – 500,000 yuan (approx. $70,000) for public accounts, and for private accounts – 100,000 yuan in Hebei province, 300,000 yuan in Zhejiang province, and 200,000 yuan in Shenzhen.

“Under the requirements of large-scale cash management, banks need to deepen their understanding of current customers, strengthen risk warning and information communication for customers who are prone to generate large cash transactions, and guide them to use non-cash payment tools,” the Chinese central bank demands. It also proposes the establishment of a special registration system for large cash withdrawals, emphasizing that as long as a bank customer fulfills their obligations under the applicable rules, access to large sums of cash will not be restricted.

Other developed countries have already adopted regulations to increase control over cash flows and China is now trying catch up. After the new system is tested in the three regions, it is expected to form the basis of a long-term large-scale cash management mechanism. According to the Xinhua report, Beijing’s main motive is to “promote the concept of rational use of cash.” But the new focus on increased oversight over cash transactions may also be related to the plan to issue a digital yuan, one of the main purposes of which is to exert greater control over financial transactions.

Is This the End of Paper Cash?

In the digital age, a walk away from cash sounds like a natural development. There is now a race between state actors, corporations, and communities to issue digital currencies that will replace paper notes and metal coins. There’s a lot of politics, geopolitics, macro- and microeconomics involved in the deepening competition to build the cashless society. If you visit a country like Sweden, you’ll realize it has already been created to a large extent. You’ll need a mobile app or a bank card far more often than banknotes to pay in stores. Consumer transactions with non-cash methods reach almost 60%. In fact, a number of bank branches in the country don’t accept or process cash deposits and withdrawals.

Global Trend Against Cash Intensifies as China Joins the Squeeze

Cash is disappearing in the Nordic nation, an article published recently by the Guardian noted. The piece describes Britain’s own rapid departure from paper money as well. The amount of Swedish cash in circulation has dropped from 80 billion to 58 billion kronor in the last four years, a reduction of over 27%. During the same period, ATM withdrawals fell by more than half. Meanwhile, in the U.K. cash transactions declined by over 50% between 2008 and 2018. Even Japan, where almost 80% of people use cash every day, is now promoting cashless payments, as news.Bitcoin.com reported this week.

But not all types of cashless relations are in the best interest of states and governments are starting to realize that. Paper money has certain advantages for ordinary people, like better privacy for the holder, that governments don’t mind getting rid of, which to a large extent explains the initial push to create cashless societies. A banknote is a contract in ink and paper between the issuer, a central bank, and the bearer, a citizen or a resident. In modern cashless societies these contracts are replaced by contracts between people and companies, on the one hand, and third parties such as commercial banks and payment processors, on the other. When bank branches and stores in Sweden reject government issued bills that’s is a problem for the Swedish state and its sovereignty over money. The threat is even greater in the case with currencies issued by corporations such as Facebook or Alipay, for example, where government money will not be part of the contract at all.

Global Trend Against Cash Intensifies as China Joins the Squeeze

It’s not surprising then that a growing number of states are trying to create their own digital currencies. Sweden’s Riksbank has been working on an e-krona for some time, which will be a central bank digital currency (CBDC). While the Bank of England has previously stated it is not planning to issue one, a couple of months ago Governor Mark Carney suggested that a network of CBDCs could unite to create a new “Synthetic Hegemonic Currency”. This sounds realistic as according to a study conducted by the Bank of International Settlements (BIS), 70% of 63 polled central banks are exploring the issue of CBDCs. Now as China is vowing to become the first nation with a digital fiat, pressure has been mounting on the U.S. Federal Reserve and the European Central Bank to create a digital dollar and a digital euro.

While paper notes and metal coins still have an appeal because of their physical qualities, since the invention of fiat money part of the subject of the contract they represent has been lost. Sterling in the name of the British currency doesn’t refer to a silver alloy anymore and this isn’t going to change with the introduction of its digital version. Money based on other contracts, such as with corporate entities and third parties, certainly comes with many disclaimers as well. That creates a real window of opportunity for permissionless decentralized cryptocurrencies, now when societies are going cashless, and a recently conducted survey showed that almost a tenth of Chinese students already own crypto. To use digital cash in financial interactions with others, you neither need a contract, nor a third party.

What’s your prediction about the outcome of the race between various digital currencies to replace paper money? Share your thoughts on the subject in the comments section below.

Op-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.


Images courtesy of Shutterstock.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

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Source: Bitcoinnews.com

The Faces Behind The Rising Bitcoin Futures & Derivatives Market

The Bitcoin futures market has exploded like no one could have expected over the recent years, and it continues to grow. This summer, BitMEX hit a new record for BTC futures trading at over $16 billion.

CME recently petitioned the CFTC to double its BTC futures trading capacity in the face of soaring interest. Binance had recently entered the space, and Bakkt has launched with its physically delivered BTC futures product (albeit somewhat tepidly).

In the light of so much action among the margin trading of cryptocurrencies, let’s take a look at some of the key faces working to build the current and future billion-dollar BTC futures market.

Arthur Hayes

Arthur Hayes is arguably one of the most influential people in the BTC futures space right now. He is the CEO of BitMEX, which is widely recognized as the most liquid in the market and frequently turns over billions of dollars a day in trading volume. It’s also the most popular Bitcoin margin trading exchange.

Arthur Hayes
Arthur Hayes, CEO at BitMEX

With his company registered in Seychelles and offering 100x leverage, BitMEX has democratized the BTC futures space like no other.

As he’s reiterated on quite a few occasions, he has come from nothing to build the most popular BTC futures exchange currently available for retail traders. With a degree in economics from the Wharton School of Business and trading derivatives in Hong Kong for many years, he’s used his extensive knowledge to make BitMEX the number one platform it is.

Kelly Loeffler

Even though it’s only been out for a month, it feels as if the CEO of New York Stock Market’s Bakkt, Kelly Loeffler, has been part of the fabric of the BTC futures market for a while now. That’s because she has. Bakkt first announced its plans to enter the market with the first physically settled BTC futures contracts back in the summer of 2018. However, it has suffered various delays and setbacks from U.S. regulators.

Despite the fact that Bakkt’s debut failed to cause the stir in the price of Bitcoin that was expected, many people consider its physically settled BTC futures product to be revolutionary. This might lead investors to purchase or take delivery of the actual underlying asset for the first time.

Changpeng Zhao (CZ)

Changpeng Zhou (CZ) needs no introduction. If you haven’t heard of CZ by now, you probably haven’t heard of Bitcoin or cryptocurrency either. As CEO and founder of the world’s most popular cryptocurrency exchange Binance, the company that shook the crypto world, only recently entered the crypto derivatives space.

cz_binance2
Changpeng Zhao (CZ), CEO of Binance

Their recently launched Binance Futures had quickly gained popularity. Recently the Futures department of Binance had surpassed the veteran spot exchange in trading volume, with decent daily volume amounts of over $1 Billion.

More importantly than that, Chinese-Canadian coder CZ’s got personality in bucket-loads and often leading and influencing debates going on in the crypto space. He’s also on the Forbes billionaire’s list with a real-time net worth of $1.2 billion.

Terry Duffy

As chairman and CEO of the Chicago Mercantile Exchange Group (CME), one would think that the man at the helm of one of the highest-profile BTC futures trading products would be a little more bullish on Bitcoin. Despite smashing trading volume records and his competitors CBOE into submission, Terry Duffy doesn’t see Bitcoin as having a long-term future.

He told Business Insider at the FIA’s International Futures Industry Conference in Florida earlier this year that he only saw fiat-backed digital currencies as staying the distance. He also believes that there is too much speculation in the space and not enough use cases (kind of ironic, given the nature of his business).

Nevertheless, this doesn’t take away from the fact that he is, indeed, an influential person in the cryptocurrency space.

Jesse Powell

Jesse Powell, Co-founder and CEO of one of the industry’s longest-running cryptocurrency exchanges, Kraken, is a prominent figure in the industry. Kraken is well-known for refusing to give in to regulatory bullying, too, negating to comply with a New York inquiry for customer information.

Not wishing to be left out of the BTC futures space, Kraken purchased UK-based Crypto Facilities derivatives trading firm earlier this year. The move made Kraken the first crypto exchange for offering spot trading and futures trading (although not to US customers).

Jesse Powell
Jesse Powell, CEO at Kraken

Adam Todd

Maybe the most surprising name on the list. Pertaining to another interesting BTC futures platform that is yet to launch, Adam Todd is another name that deserves mention.

One of the exciting things that Todd is working towards is a zero-fee trading platform by the name of Digitex. With the testnet launch coming up at the end of this month, traders will be able to trade BTC futures contracts and pursue scalping strategies, which would arguably be more productive without the fees paid on other exchanges.

There Are More

There are plenty more faces behind the billion-dollar BTC futures market with more and more exchanges throwing their hats into the ring all the time. From established players like OKEx and Bitfinex to newer entrants like Derebit and IDAX, a lot of money is changing hands on a daily basis in this burgeoning industry.

With new developments afoot with physically-settled BTC futures contracts and commission-free trading, there’s plenty to keep your eye on in the derivatives space.

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Source: Crypto Potato