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Ripple XRP is not a real cryptocurrency but a Digital fiat – says Expert

Ripple’s (XRP) journey from $3.40. back down to today’s price of $0.49 could soon see it ring-fenced from other competing cryptocurrency, with concern over its centralisation potentially excluding Ripple (XRP) from entry into a price boosting regulatory framework. It was seen in the last week that the rival bitcoin recruited another billionaire believer from the world of mainstream finance after it was revealed that investor Steven Cohen has placed money into a hedge fund focusing on cryptocurrencies and blockchain-based companies.

Cohen Private Ventures has invested their funds in Autonomous Partners, new hedge fund buying up cryptocurrencies and equity in blockchain-related companies as the world of mainstream finance begins the search for the next generation of investments in the digital age.

Ripple (XRP) is one notable absence from the spate of technologies in which Autonomous Partners is interested, raising concern that the XRP tokens will be treated differently when regulations arrive. If they come in the picture, Securities and Exchange Commission (SEC) in the US decides that the tokens are securities they could then be subject to different laws than tokens that are not. From, Autonomous Partners, Arianna Simpson said: “I have a lot of concerns about the level of centralisation, and I have regulatory concerns if what they have issued is a security.”

Elpis Investments, CEO, Anatoly Castella told to a local news-paper that that ripple’s XRP is set to miss out because it is not a Digital Fiat, and not a real cryptocurrency. Mr Castella warns to the investors that XRP falls short of the “purest interpretation of cryptocurrency.”

Mr Castella also said “Ripple (XRP) resembles a fintech platform combining the best elements of fiat money and blockchain cryptocurrency.” It should be considered Digital Fiat, not a cryptocurrency. The potential for missing out on the very regulations that go on to propel rival cryptocurrencies to all new price levels, Mr Castella says that the SEC should consider to create a regulatory framework for digital fiats like ripple and a sustainable ecosystem for the crypto start-ups, presently held in a state of limbo. He also said that “This will also help to ensure that real cryptocurrencies like bitcoin, Ethereum etc will not be damaged and misunderstood by the start-ups adopting the wrong regulatory approach from the outset.”

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Why Litecoin Creator Charlie Lee Is Buying into a Bank

Most unusual and potentially transformative deals in the cryptocurrency space started as an argument on social media. The Litecoin Foundation, the non-profit exchange that promotes the sixth-largest cryptocurrency and where Charlie Lee is a managing director of Litecoin, and Capo’s Virgin Islands-based start-up had encountered difficulty securing bank accounts – a longstanding problem for the industry. “We had lots of trouble” on that front, Charlie Lee told this to a local news-paper.

Capo then explained, “Some banks, they close down bank accounts if they get a whiff of anything to do with crypto. We have seen a lot of competitors with similar offerings get cut off because they didn’t own the bank and they didn’t have control over it.” But Capo was actually working on a solution for TokenPay by trying to buy a bank. And he realized this plan, if successful, could address another problem for Charlie Lee.

“Why don’t we talk about having a litecoin debit card so that we can get a real solution?” Capo recalled telling Charlie Lee. “Because, you know, they had been trying very hard to have a litecoin debit card Capo said, why don’t we talk?”

And after this it how the Singapore-based Litecoin Foundation Charlie Lee ended up owning 9.9 percent of WEG Bank AG, an until-now obscure German financial institution, in a surprise transaction revealed this week.

The foundation didn’t put money in; TokenPay previously acquired the stake and traded it to the non-profit in exchange for future technical support. TokenPay also acquired another 9.9 percent of the stake (the maximum allowed in Germany without prior regulatory approval) of WEG and it is waiting for the green light to buy up to 80 percent. (The price of it was not disclosed.)

If all goes according to plan, not only will TokenPay and Charlie Lee, Litecoin Foundation have a reliable banking partner, but they would also transform WEG into a ramp for consumers worldwide who wants to trade can trade fiat for cryptocurrency or pay for goods and services with crypto.

 

 

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Litecoin Charlie Lee: Deal’s from Bank Might Lead to New Crypto Services

Charlie Lee creator of Litecoin could be made a board member at the German bank the Litecoin Foundation – the group in which he serves as managing director – recently obtained a stake in it. The deal in WEG Bank AG stake for a 9.9 percent deal resulted through a partnership with the crypto startup TokenPay, as previously reported in a local news and while the response on social media seems to have been mostly positive for Litecoin, Charlie Lee none the less took to Reddit on Tuesday to offer clarifications on the nature of the deal, the foundation’s involvement and what benefits and extra offers the arrangement could bring.

According to the Creator of Litecoin, Charlie Lee, the best-case scenario would see WEG Bank attempt to launch crypto services and products – but that’s not a done deal by any means, the litecoin creator conceded. He also added to this saying that “Best case is that with this bank, we are able to deliver and create crypto solutions like debit cards, merchant processing, and other innovative solutions. However, even if we hold a stake and influence at the bank, it’s not guaranteed that the idea behind us will succeed.”

Charlie Lee also clarified to them saying that the deal didn’t see the foundation spend any money, saying that the stake came “In exchange for marketing support and technical work for eFin, TokenPay decentralized exchange, and integration with the bank.”

“To be very clear on this he said, “LF did not pay any money for this stake in the bank.” The plan is also for him to get a board seat at the bank,” he explained.

Lee also said that there are still much work and problems to be solved to launch a crypto debit card for Litecoin. That being said, he also said owning a stake in a licensed bank gives the Litecoin Foundation “a much higher chance of succeeding.”

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4 Times More Donation collected in UK Mosque in Crypto Than Fiat

During Ramadan, People from all around the world gave a donation to the mosque using cryptocurrency including one transaction of over £5,200. In UK the Shacklewell Lane Mosque, also known as Masjid Ramadan, in Dalston, East London, has decided to accept cryptocurrencies as charity back in May, as it was reported in a local newspaper. The move has paid off well during the month of Ramadan for the house of prayer as it reportedly collected four time more donations in crypto than fiat. It received £13,983 from cryptocurrency donations, compared with just £3,460 from fiat donations.

Erkin Guney, the Hackney mosque’s chairman, told local news media: “Many people at the mosque and in the world were initially surprised about us accepting this new money, but the fact we received four times more in cryptocurrency donations shows how important it is to be open to these new digital currencies.” He also said that, adding to this: “When the donations started to flow in, we were blown away. We received four times more in cryptocurrency donations than in cash from our local worshippers during Ramadan, and we are still receiving cryptocurrency Sadaqah (donations). Which is amazing and shocking as well!”

Bitcoin Charity donation in which 24 people around the world donated to the mosque using cryptocurrency, including one transaction of over £5,200. The funds are received are used for repairs to the facility, offering shelters and food to needy locals, as well as supporting poor Muslim families with funeral costs. Founder of London-based Islamic finance start-up Combo Innovation Gurmit Singh, advised the mosque on how to support cryptocurrency donations, commented: “I hope other mosques and charities will now follow Masjid Ramadan’s lead to take advantage of this important new revenue stream”. This is one of the examples how the Religion is supporting cryptocurrency community and all other religion, holy places and charitable organizations.

 

ripple

Ripple hired Van Dyke Former Facebook Executive as New Vice President

The company behind the third largest cryptocurrency by market cap, Ripple has recently employed senior vice president of business and corporate development, Kahina Van Dyke as the new according an official statement on July 11. At this new position at ripple as senior vice president Kahina Van Dyke will be responsible for providing strategic partnerships for international financial services, focusing on the development of “a new global technology solution for international payments.” to the Ripple.

Kahina Van Dyke has joined Ripple to “Remove the friction in cross-border payments” by “establishing partnerships and applying technology to change an industry,” she said this in a press news.

When it was asked that what is “the most challenging issue in payments today,” Kahina Van Dyke noted the system which are used in Ripple are outdated system of cross-border transactions, claiming that it is “one of the most multifaceted and complex problem in payments today.” Kahina Van Dyke said that the current global payment system, which was built almost 40 years ago, “no longer meet’s the real-time needs of business today and they are many hackers who can hack this system.”

Ripple new senior vice president, Kahina Van Dyke mentioned the importance to provide company, as well as individuals, with a way of transacting “small and large amounts of money faster and at lower cost,” stating that the system should be “more nimble and transparent” than the one developed for large corporate transactions “decades past.”

Kahina Van Dyke present Vice President of Ripple has more than 20 years of experience in banking and fintech and has held prominent positions at Facebook and Mastercard. In her LinkedIn profile, Kahina Van Dyke served as Global Director of Financial Services and Payment Partnerships at Facebook for two years, developing new solutions of payment and financial services. While working at Facebook, Kahina Van Dyke managed partnerships with such major companies as Visa, PayPal, Western Union, Citibank and others, having provided financial solutions for 50 countries across the world.

aleksi

Aleksi Grym has given the Title to Cryptocurrency as “Great Illusion”

The digitalization advisor at the Bank of Finland, Aleksi Grym, declared in a paper published that “the concept of a digital currency is a fallacy.” on behalf of the bank. While sharing his thoughts and ideas, he has argued with them that cryptocurrency are not real forms of money and are “not currency at all but rather accounting systems for non-existent assets.”

The advisor at the Bank Aleksi Grym has also questioned the confusing choice of terminology, which is featured and authored by Satoshi Nakamoto, in the original white paper bitcoin pseudonymous creator. Grym to make his points clearer for the people has drawn parallels between how a traditional bank works and how bitcoin functions. First, with bitcoin, the accountants in a traditional bank are similar to the miners. Second, the centralized ledger held by banks to record account balances and transactions are similar to the bitcoin blockchain. “The main difference between a cryptocurrency system and a traditional bank system is that in a cryptocurrency system the ledger is distributed across a network of computers, while a traditional bank maintains the ledger in a centralised computer system,” he also states on this adding that there is no practical difference in what the systems are doing.

Aleksi Grym compares accountants in a traditional bank as miners, while a bank’s centralised ledger is like bitcoin blockchain.

He also said to make his point clearer for the people “Money, at its essence, is a unit of account,” he adds concluding that cryptocurrencies cannot replace the current forms of money and will never be the only money form as well. According to Grym, cryptocurrency at best can act as an effective way of financial record-keeping. Even back in the year 2014, the Bank of Finland classified bitcoin as a commodity type and not a currency.

binance

Despite of 70% fall still in a good position Bitcoin says Binance CEO Changpeng Zhao

Changpeng Zhao Founder and CEO of the world’s biggest crypto-exchange company Binance, said bitcoin still holds very good position in the market of cryptocurrency despite of 70 percent fall since 2018.

In a cryptocurrency researcher interview with reporter in Zug, Switzerland, Changpeng Zhao said the cryptocurrency sector holds a better position than the past year in terms of infrastructure, volume, mainstream interest and price. He also said that he checked, bitcoin price was $2500 in the year 2017, today $6800. Trading volume for bitcoin was 780 million a year ago, today is 3.4 billion.

As it was reported in a local news paper, In the year 2017, the price has increased of bitcoin by more than 2,150 percent, ranging from $890 to $20,000. This increased the volume of bitcoin by five-fold as compared to mid-2017 as a result of surge in demand. By the mid-2017, there wasn’t any proper infrastructure in cryptocurrency sector for retail and institutional investors. Since July 2018, there is an institutional market called Coinbase Custody, with which hedge funds, pensions and academic institutions, can purchase millions of dollars worth of digital assets like ether and bitcoin. 

Morgan Stanley, JP Morgan and Goldman Sachs such Financial institutions have come out with their idea and intent of facilitating the growing client demands towards cryptocurrencies. According to Lloyd Blankfein CEO of Goldman Sachs, consensus currencies (like cryptocurrency) can also emerge as dominant mediums of exchange. He also pressured on the negativity of the thought of cryptocurrency that they could not work because of their basis being new fundamentals and principles.

Bitcoin recent drop in the price was due to the bubble of retail investors. Fear of missing out will be running among large-scale investors and institutions with the recognition of cryptocurrencies as an emerging asset class by banks.

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Two New Cryptocurrency Exchanges recognized in Philippines

The central bank of the Philippines has apparently endorsed two new virtual money or Cryptocurrency exchanges. It has brought the aggregate number of authorized Cryptocurrency exchanges in the nation to five. In the mean time, crypto transactions have been developing in the nation.

The first exchange was Betur Inc, also known as Coins.ph approved in September 2017. The second one was Rebittance Inc. approved in October 2017. Then in May 2018, Bloom solution was approved as the third crypto exchange operator in the country. Fourth and the fifth one are the Virtual Currency Philippines Inc. and ETranss, which facilitates the conversion of Philippine pesos into virtual currencies.

The central bank has previously proposed that crypto exchanges must secure separate licenses to operate as electronic money issuer. It has been studying whether the exchanges need to sign up as e-money issuer given that they maintain e-wallets for clients.  But now internal consultation showed that it may not be advisable, in a bid to keep the registration process simple for the new players. Now according to the new rule, if your business model has a portion making use of e-wallet, then there is an additional requirement but not necessarily or automatically an e-money license.

The Philippines is gradually growing into a crypto-friendly region. The central bank has initiated the digital currency as it has the potential to provide faster and cheaper transactions, but it is also cautious of the potential risks of crypto volatility, criminal involvement, and cyber security on the other hand.

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Flow Traders NV despite of several warnings from Dutch enter crypto market

Flow Traders NV a company in Amsterdam has entered the crypto market despite the continuous warnings of the Dutch Authority for the Financial Markets (AFM) not to buy and sell digital currencies, Bloomberg a financial, data and media company reported on July 5.

Flow Traders NV is largest trader of exchange-traded funds in Europe. It reportedly the first firm to buy and sell exchange-traded notes based on Bitcoin (BTC) and Ethereum (ETH). Bloomberg a financial, data and media company according to him such traded notes could make more appeal of crypto by making it easy and cheap to invest. Flow Traders NV Chief Executive Officer Dennis Dijkstra said that crypto currencies are underestimated by adding this he also said, “It’s big, and it is to be changed very soon. The market participants are way to professional than people think. Institutional investors are interested we come to know because we get frequent requests from them.”

The Authority for the Financial Markets (AFM) did not share speed trader Flow Traders NV’s enthusiasm, but while the Authority for the Financial Markets can make public warnings and recommendations, there is little they can do to prohibit any company from trading regulated securities on a regulated exchange. The spokeswoman for the AFM, Nienke Torensma, said as stating, “We discourage activities in crypto both by consumers and professional license holders. The virtue of its anonymity and the newness it potentially offers, it is very easy to abuse. Despite its inability to serve the promised purpose as a currency, we don’t regard it to be an asset class.”

Dennis Dijkstra the co chief executive officer said that the company was moving forward its trades of crypto notes with futures contracts managed by CME Group Inc. and Cboe Global Markets Inc. Dijkstra claimed that the new approach has “huge spill over benefits” for Flow Traders NV’s developing foreign-exchange trading business. Bloomberg a financial company according to him in the first quarter of this year Flow Traders NV traded €244 billion ($284 billion) of exchange traded funds (ETFs) globally, including €143 billion ($167 billion) in Europe, making the company the largest trader of the securities in the region.