Australian Bank Official: Bitcoin is a Risky Investment

Tony Richards, the Reserve Bank of Australia’s (RBA) head of payments policy, has claimed Bitcoin a fascinating development but it is risky as it is not money
26 June 2018   867

Though the RBA has been analyzing cryptocurrencies during 5 years, Richards hopes cryptocurrencies do not raise major concerns and are not significant threats to the bank since there is a rather small number of active people in the cryptocurrency community. While the cryptocurrency industry has a general market capitalization of $250 billion, Richards declared “to put this in context, the global equity market is valued at around $80 trillion and the global money supply is something around $15 trillion for currency and $90 trillion for broad money.”

Bitcoin and other cryptocurrencies are yet to establish themselves as reliable stores of value. This is most obvious in a comparison of the volatility of Bitcoin as opposed to national currencies like the Australia dollar. Using cryptocurrencies in Australia is just so trivial it doesn’t have an affect and I think we can assume that will be the case for a long time.
Tony Richards
Head of Payments Policy, RBA

Richards is fairly confident that the volatile nature of cryptocurrencies will prevent its mainstream adoption as a medium exchange, especially since there are more stable, trusted, and regulated fiat alternatives. He even underlined, while countries that were inclinated to financial disruption may apply cryptocurrencies, these cryptocurrencies are not being used in a similar manner to the US dollar.

What we have seen, is that countries with less developed financial infrastructure are more prone to disruption. But with cryptocurrencies, unless people want to transact and hold these cryptocurrencies, then they still have to get in and out of their domestic currency.
Tony Richards
Head of Payments Policy, RBA

He adverted that many states that do not trust their domestic currency use the US dollar instead of cryptocurrencies. He alerted others that Bitcoin and other cryptocurrencies are extremely risky investments and are not available as a mean of exchange. When Richard managed to find a Sydney cafe open to accepting Bitcoin, he pointed out that not many of them actually exist.

SEC to Start VanEck-SolidX BTC-ETF Consideration

Starting today, the 45-day countdown to the SEC initial decision was launched
20 February 2019   98

For the first time since August of last year, two proposals on the creation of a Bitcoin-ETF are under consideration by the US Securities and Exchange Commission (SEC).

The application of VanEck and SolidX, issued in cooperation with the Cboe BZX exchange, as expected, was included in the Federal Register issue this Wednesday, with which the 45-day countdown to the SEC initial decision was launched. The application of Bitwise Asset Management and NYSE Arca was published last week.

I … hope that our investment in regulatory and market education, hard work and commitment will be honored when the time comes.

Gabor Gurbacs

Director of digital asset strategy, VanEck

The head of Bitwise’s research department, Matt Hogan, believes that not only firms that have submitted bids to create Bitcoin-ETFs are looking for approvals, but and the entire “extremely fast-growing” crypto industry.

A year ago there was maybe one qualified crypto custodian … and now there are half-a-dozen, and that number will go up from here. A little more than year ago, we didn’t have futures. A year ago we didn’t have nearly as many firms making markets. A few months ago, you didn’t have folks like Fidelity announced in the space. It’s evolving really, really quickly.

Matt Hougan

Global head of research, Bitwise

 As reported, ultimately, however, a bitcoin ETF approval will depend on how companies approach their proposals.