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   409

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 Need More Info on BTC ETF

SEC is gathering more input from the public – to date, according to the agency, more than 1,400 comments have been submitted
21 September 2018   158

The US Securities and Exchange Commission (SEC) announced the beginning of a formal process for considering the application for the creation of bitcoin-ETF from the New York companies VanEck and SolidX. Nevertheless, the agency appealed to the community for more information. This is stated in the document published on the SEC website.

Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.

The US Securities and Exchange Commission

At the moment, the SEC received about 1,400 comments.

According to the document, the Chicago Board Options Exchange (CBOE) has signed an agreement on the exchange of data on bitcoin transactions, trading and the state of the market with the cryptocurrency trading platform with Gemini.

The agency asked commentators to clarify the position of Gemini in the digital currency market and assess the likelihood of increased volatility at this site in connection with possible trades of bitcoin-ETF.

So, before September 30, the department had to decide on whether to approve, deny or initiate the proceedings. The SEC chose the latter, which is likely to delay the process until the next year.