What People Are Saying About Coinbase’s Surprise ETC Listing
That might sum up the reaction among some members of the crypto community Tuesday when U.S.-based exchange startup Coinbase suddenly announced its plans to list ethereum classic (ETC).
Ranking just inside the top 20 cryptocurrencies, ETC traces its origins to 2016 and the collapse of the DAO, an ethereum-based funding vehicle that fell apart following a code exploit. As such, the network is known by some as “a continuation of the original ethereum blockchain,” a name bestowed after a code change on ethereum reversed losses stemming from the failed project.
Still, it might be the small size of the market that is grabbing most of the attention.
As of the time of writing, ethereum classic is the eighteenth largest cryptocurrency by market capitalization – valued at more than $1.5 billion – according to data from CoinMarketCap, which tracks price developments in the market. However, it’s important to note, it’s one of the largest by volume (ranking in the top five).
But despite that boost from traders, a scan of reactions on Twitter suggests that a number of market observers were taken aback by the listing announcement, which sparked a 25 percent price increase following the revelation.
In one case, the response was pretty blunt:
This observer took criticism to the next level, suggesting that the listing had more to do with spurring user activity, to put it lightly, than anything specifically to do with ETC.
Amidst the social conversation, some tried to draw a connection between the ETC listing and the fact that, to date, the exchange hasn’t added support for the cryptocurrency XRP. As XRP is the third-largest crypto by market capitalization, much of the surprise stemmed from the fact that Coinbase would move to list a “lower value” coin.
Yet the lack of a listing is perhaps unsurprising, given past reports. Back in April, Bloomberg reported that distributed ledger startup Ripple tried unsuccessfully to get the token listed on Coinbase.
On the other hand, those supportive of the token and Ripple’s efforts struck optimistic tones as the story spread.
While much of the discussion today centered around what the listing might mean for ETC in the long-term, others rode the social waves by taking a more humorous approach to their commentary.
For example, several observers tied the development to this week’s summit between U.S. president Donald Trump and North Korean dictator Kim Jong-un.
Still, a (small) portion of people in the crypto community decided to stay positive after the announcement.
Coinbase image via Shutterstock
Written by Coindesk.com
South Korean Banking Group to Launch Blockchain-Powered ID Verification Platform
A group of South Korean commercial banks will launch a blockchain-powered customer ID verification platform in July 2018, local news outlet Korea JoongAng Daily reports today, June 12.
According the report, the Korea Federation of Banks (KFB) will launch their “BankSign” identity verification system to be used in both online computer-based and mobile banking. According to Korea JoongAng Daily, the move is intended to replace the 20-year old public verification system that is reportedly notorious for its complexity and inefficiency.
Park Chang-ok, a manager at the department of deposit services and payment systems at KFB, explained that banks’ new blockchain application would offer a range of options to verify clients IDs, “not just the public certification system.”
According the report, development of the BankSign initiative was started immediately after the KFB launched a consortium exploring blockchain applications opportunities at the local banking sector in November 2017.
The BankSign platform is based on Nexledger, a private enterprise transaction management tool developed by Samsung’s subsidiary, Samsung SDS.
Last week, Samsung SDS announced the launch of its own enterprise blockchain platform Nexfinance aimed at finance-related businesses.
Written by CoinTelegraph
CBDC Could Have “Severely Negative Consequences” for “Bank-Dominated Payments System” – Former FDIC Chair
Sheila Bair Authors Article Advocating Central Bank-Issued Digital Currency
The former FDIC chair begins the article by discussing the increasing proliferation of financial crises across major economies, such as the “Europe[an] sovereign debt crisis” and national crises recently felt in “Portugal, Venezuela, Russia, Ukraine, [and] Brazil.”
The article describes “Lack of confidence in [the] banking system” as the principal catalyst for Satoshi Nakamoto’s choice to develop bitcoin, asserting that “He (she, they?) originally intended it as a widely accepted method of payment that could function completely outside of the banking system.” However, Mrs. Bair states that “Unfortunately […], bitcoin has failed miserably as a method of payment” – blaming such on the “extreme volatility [that] has made it popular as a speculative investment and store of value.”
The former FDIC chair advocates that central banks issue their own digital money, describing such as “a radical idea that […] is gaining credibility among an increasing number of mainstream economists and central bankers themselves.” Mrs. Bair describes central bank-issued digital currency as “presumably […] be[ing] as stable as traditional fiat currency, while reducing the risks of financial crises and improving monetary tools.”
Benefits of CBDCs
Mrs. Bair asserts that the development and issuance of CBDC could provide greater financial stability in times of economic crisis, stating that “in times of extreme stress, people lose confidence in their banks. So they pull their uninsured money out of the banking system, disrupting the free flow of payments. […] However, suppose consumers could convert their bank deposits into a digital currency that would be issued and backed by the Fed? […] They would no longer need to worry about bank instability.”
The former FDIC chair also states that “the Fed would have much more effective tools for conducting monetary policy to address economic cycles.”
“The Fed now manipulates the money supply through buying and selling securities with a select group of big banks and by paying them interest on the reserves they deposit at the Fed — currently a tidy 1.75%,” Mrs. Bair continued. “When the Fed wants to stimulate the economy — as it did after the crisis — it buys securities from these banks and reduces the rates it pays them on reserves, inducing them to lend the proceeds to the real economy to get a better return. When it wants to raise rates — as it is doing now — it reduces its holdings of securities and increases the rates it pays on reserves. This is a nice deal for the banks, but hasn’t done a whole lot to help the rest of us. The past 10 years are proof positive that current monetary tools are woefully inadequate to stimulate broad-based economic growth. The super rich have gotten a lot richer, while the middle class has struggled.”
CBDCs May Bring “Severely Negative Consequences” for “Current Bank-Dominated Payments System”
The former FDIC chair emphasizes the creative destruction that a “wholesale shift from bank accounts to CBDC” would have on the “current bank-dominated payments system,” stating that such “could have severely negative consequences for credit availability given banks’ reliance on deposits to funds loans.”
Mrs. Bair asserts that “the costs and inefficiencies in the current payments system would be greatly reduced.” The former FDIC chair claims that consumers would benefit from “no longer need[ing] to maintain checking accounts, with their expensive maintenance and overdraft fees, to effectuate payments,” whilst businesses accepting CBDC “could avoid the interchange fees charged by banks and their card networks – fees that are particularly burdensome to small firms.”