Reserve Bank of India refutes claims of crypto, blockchain probe

At the end of August, rumors surfaced that the Reserve Bank of India (RBI) had secretly created a division that was involved in the research and creation of regulations for emerging technologies, including blockchain and cryptocurrencies. The fact that the central bank would be involved in cryptocurrencies was somewhat shocking, given that it has taken a staunch anti-crypto approach to allowing banks to work with businesses in the industry. Now—more than a month after the news first circulated—RBI has stepped forward to deny the rumors.

Financial news outlet The Economic Times first mentioned the new division in August, noting that RBI had already been operating the unit for about a month based its information on two sources close to the Indian central bank.

RBI has rejected the claims, stating that it has no crypto-focused unit. The rejection came as a response to a “right to information” (RIT) request made by Coin Crunch’s Naimish Sanghvi.

The rejection is made even more puzzling by the fact that RBI stated shortly after the story was published in the Economic Times that it had, in fact, formed an “inter-departmental group” designed to “study and provide guidance on the feasibility to introduce a central bank digital currency.” It would appear that RBI executives aren’t sure what is going on inside their own bank.

In the early part of 2017, the research arm of RBI published a report on the benefits of blockchain technology in banking. That department, the Institute for Development & Research in Banking Technology, asserted that blockchain technology had “matured enough” to allow for the digitization of the rupee.

About a year later, Prime Minister Narendra Modi publicly spoke about the positives of the blockchain, stating that he would like to see “rapid adaption” of the technology.

The current ban implemented by RBI has caused serious damage to the crypto industry in the country. While a couple of exchanges have been able to figure out ways to legal sidestep the order, others have suffered irreparable harm. Zebpay, formerly one of the largest cryptocurrency exchanges in the country, has now permanently closed its doors because of the ban.

The debate over RBI’s authority to prevent banks from working with crypto companies has been taken to the country’s Supreme Court. However, the court has twice delayed hearing arguments, only exacerbating the situation further. At this rate, India could become the weakest country in the cryptocurrency world in relatively short order.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

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Tether bank “desperate for cash”

The stablecoin Tether may not be as stable as many have believed – not that this would be a huge surprise to some. It would appear that Puerto Rico’s Noble Bank, reportedly one of the major repositories of Tether, is having serious financial issues. As a bank that supposedly holds a 1-to-1 ratio of Tether to US dollars, the fact that the financial institution is “desperately” looking for cash raises a number of questions.

Noble Bank was first identified as being involved with Tether this past February. Since then, a large number of Tether have been produced. Since each coin must have a physical dollar behind it, the amount of dollars stored in the banks, in theory, should be extremely high.

However, Noble Bank is looking for a serious injection of funds. Two sources close to the bank have indicated that it has already contacted at least one major Tether holder in an effort to unload an unspecified amount of coins, but the holder rejected the request. One of the sources said, “If Noble doesn’t get cash soon, they will only have a few days left. They’re desperate.”

Tether might also be in a bad position. An unidentified source for a major crypto exchange told the crypto media outlet Modern Consensus that a Tether holder has been trying to dump “tens of millions of tethers,” but that the individual has not found a taker. That kind of release at once could have dire consequences on the stability of the stablecoin and could make it obsolete.

There have already been accusations of improprieties among the Tether group. On more than one occasion, reports have surfaced that the company has been releasing tethers that weren’t supported by any asset, and using them to purchase other cryptocurrencies.

Tether is also facing competition from several other stablecoins. Gemini and Paxos have introduced stablecoins recently, both of which are regulated and audited by the New York Department of Financial Services. Tether has been without an auditor since this past January and has made the questionable remark that auditing the coin is an impossibility. It would seem that, if there were one dollar for every tether, an audit would be a relatively simple process to complete. Circle also has introduced its own stablecoin. The coin itself isn’t regulated; however, Circle is.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

The post Tether bank “desperate for cash” appeared first on Coingeek.

Read More

Tether bank “desperate for cash”

The stablecoin Tether may not be as stable as many have believed – not that this would be a huge surprise to some. It would appear that Puerto Rico’s Noble Bank, reportedly one of the major repositories of Tether, is having serious financial issues. As a bank that supposedly holds a 1-to-1 ratio of Tether to US dollars, the fact that the financial institution is “desperately” looking for cash raises a number of questions.

Noble Bank was first identified as being involved with Tether this past February. Since then, a large number of Tether have been produced. Since each coin must have a physical dollar behind it, the amount of dollars stored in the banks, in theory, should be extremely high.

However, Noble Bank is looking for a serious injection of funds. Two sources close to the bank have indicated that it has already contacted at least one major Tether holder in an effort to unload an unspecified amount of coins, but the holder rejected the request. One of the sources said, “If Noble doesn’t get cash soon, they will only have a few days left. They’re desperate.”

Tether might also be in a bad position. An unidentified source for a major crypto exchange told the crypto media outlet Modern Consensus that a Tether holder has been trying to dump “tens of millions of tethers,” but that the individual has not found a taker. That kind of release at once could have dire consequences on the stability of the stablecoin and could make it obsolete.

There have already been accusations of improprieties among the Tether group. On more than one occasion, reports have surfaced that the company has been releasing tethers that weren’t supported by any asset, and using them to purchase other cryptocurrencies.

Tether is also facing competition from several other stablecoins. Gemini and Paxos have introduced stablecoins recently, both of which are regulated and audited by the New York Department of Financial Services. Tether has been without an auditor since this past January and has made the questionable remark that auditing the coin is an impossibility. It would seem that, if there were one dollar for every tether, an audit would be a relatively simple process to complete. Circle also has introduced its own stablecoin. The coin itself isn’t regulated; however, Circle is.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

The post Tether bank “desperate for cash” appeared first on Coingeek.

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