Bank of Japan Has No Plans for National Cryptocurrency

BoJ's deputy governor said issuing a crypto directly for consumers could undermine the existing two-tiered system (central bank - banks and banks - comsumers)
17 April 2018   577

The Bank of Japan does not plan to issue its own digital currency at the moment, concerned that this could negatively affect financial stability. This is reported by CoinDesk.

On Friday, in the closing remarks at the IMF conference and the Japanese Financial Services Agency, the deputy governor of the Bank of Japan Masayoshi Amamiya said that the issue of digital currency for direct use by consumers - with or without blockchain - could jeopardize the existing two-tier financial system.

Currently, central banks provide access to a limited number of institutions like private banks (the first level) that already work directly with consumers (second level). Amamia calls this process proven "the wisdom of human beings in history to achieve both efficiency and stability in the currency system."

Thus, according to Amamia, the availability of a digital currency backed by a central bank will change the system, but it will not necessarily preserve its financial stability.

In this regard, the issuance of central bank digital currencies for general use could be analogous to allowing households and firms to directly have accounts in the central bank. This may have a large impact on the aforementioned two-tiered currency system and private banks' financial intermediation.

Masayoshi Amamiya

Deputy governor, Bank of Japan

Nevertheless, according to Amamiya, it is possible that the central bank of Japan will issue its own digital currency in the future. His department has already begun to explore the technology of blockchain with a focus on other areas.

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   235

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.