The Bank of England’s top economist has suggested that a digital currency based on bitcoin could alleviate monetary policy problems. Andrew Haldane, the UK central bank’s chief economist and executive director for monetary analysis and statistics, spoke at the Portadown Chamber of Commerce in Northern Ireland on 18th September. During his speech, Haldane offered several ways in which central bankers can conduct monetary policy during a period when interest rates are close to or below zero. Haldane suggested that central bankers consider making measures like quantitative easing a permanent part of their policy toolkit. However, he warned that trust in central banking could be marred as a result. One solution, he said, would be for the Bank of England to issue a…
Much like gold, oil, or soybeans, Bitcoin is now officially considered a commodity. The agency that regulates the US commodity trading market, the Commodity Futures Trading Commission (CFTC) has finally recognized the digital currency as a commodity. The debate on bitcoin can be defined as a commodity or not as been here for quite some time and the FCTC. By officially recognizing the digital currency as a commodity the CFTC assures its authority to supervise the trading of digital currency futures and options, which will now be subject to the agency’s regulations. If there is any irregularity, such as manipulation, the CFTC may file charges against the officials of that market. Furthermore, if a company wants to operate a trading platform for Bitcoin…
The chairman of the Australian Securities and Investments Commission (ASIC) believes blockchain technology has the potential to fundamentally change the world’s existing financial system. Greg Medcraft, appointed chair of ASIC in 2011, made the comments during his speech at Australia’s Carnegie Mellon University earlier this week. According to Medcraft, distributed ledger technology could result in greater efficiency and speed, disintermediation, reduced transaction costs and improved market access. Following an explanation of the blockchains’s characteristics, Medcraft noted its potential rests on a series of factors: “Naturally, harnessing this potential will depend on the integrity, capacity and stability of blockchain technology…
The US Commodity Futures Trading Commission (CFTC) has issued its first action against an unregistered bitcoin options trading platform, ordering the startup to cease operations and simultaneously settling the case. The CFTC charged San Francisco-based startup Coinflip Inc, which does business under the name Derivabit, and CEO Francisco Riordan with conducting activity related to commodity options, without registering with the agency or meeting rules for exemption. With the ruling, the CFTC has also confirmed that bitcoin and other digital currencies are commodities covered by the Commodity Exchange Act (CEA). In the past, CFTC chairman Timothy Massad had stated that bitcoin was likely to be considered a commodity. CFTC director of enforcement Aitan Goelman…
California’s AB-1326 bill, which attempted to regulate virtual currency businesses, is no longer active, thanks to a state senator. The controversial bill, penned by Assemblyman Matt Dababneh, was ordered to become an inactive file at the request of Senator Mitchell on 9th September. According to definitions by the Californian government, the bill is now “dormant or dead” but can potentially be re-activated by its author at a later date. Colin Gallagher, chair of the Bitcoin Foundation Education Committee, commented on the bill’s status: “While we should remain vigilant (the California legislature reconvenes on Jan. 4, 2016, and could attempt to take up the bill again), this is a victory we should celebrate. California should not be…
The US Conference of State Bank Supervisors (CSBS) has released the final version of its model regulatory framework for digital currencies. The organization, comprised of representatives from state-level banking regulatory bodies, released an initial draft version of its proposed digital currency regulations in December. The draft drew from comments made during a subsequent two-month comment period in which both the digital currency ecosystem as well as financial incumbents were able to weigh in on the proposal. While the framework is only a recommendation – state bank regulators can use it as a basis or to craft rules for the technology – it’s publication will likely play a role in how US states move toward finalizing their approaches to overseeing activities…