Deutsche Bundesbank doesn't plan to issue state-backed cryptocurrency

Bundesbank representative declined in the interview the possibility of EU-backed cryptocurrency
25 December 2017   837

Recently Mr. Thiele, representative of Deutsche Bundesbank (Buba), said during the interview, that the cryptocurrency analogous to EU cash is currently not in sight.

Bundesbank is the Germany's central bank. It's one of the main banking institutions of the European Union and even European Central Bank is patterned after Buba in its internal structure. So, their pull in EU banking system is significant, to say the least. And now, this interview puts on hold any rumors about any EU-backed cryptocurrency available to general public.

Mr. Thiele has been Buba board member for seven years and specializes in payment systems and currency. Also he was a Bundestag representative for two years. And now he acts as a spokesperson for the German central bank.

Previously he stated that while he doesn't directly discourage public from investing into cryptocurrencies, but he has to show people the risks involved. In his opinion, the inefficiency, the price and the power requirements of transactions in the Bitcoin blockchain make it unsuitable as a payment mechanism. Besides, in the same interview, he said that Bitcoin can't be used for value storage because of its value fluctuations.

Still, while the general public wouldn't be able to boast having official EU crypto, Mr. Thiele mentioned, that inter-bank payment settlement will be possible in the future through government-sanctioned blockchain.

Fidelity Investments to Launch BTC & ETH Platform

New platform is designed for institutional investors
16 October 2018   121

One of the world's largest asset managers, Fidelity Investments, announced the launch of a unit focused on providing institutional investors with Bitcoin and Ethereum services. The Forbes reports.

The new division received the name Fidelity Digital Assets and, possessing a staff of 100 employees, will provide a platform for trading cryptocurrencies and consulting services 24/7.

The platform already has first customers, but its launch for a wider range of investors is scheduled for the beginning of 2019.

This is a recognition that there is institutional demand for these assets as a class. Family offices, hedge funds, other sophisticated investors are starting to think seriously about this space.

Tom Jessop

Founding head, Fidelity Digital Assets

In particular, Fidelity Digital Assets will offer a transaction service that, using internal cross-connect and order routers, will trade through third-party liquidity providers.

One of the most popular offers by the company can also be a service for storing Bitcoin and other cryptocurrencies. It is physical storage, distributed in different geographical locations and offering the so-called "cold" storage of digital assets. This way of storing cryptocurrencies without access to the Internet and with a multi-level control system is considered to be one of the safest and most resistant to hacking today.

As the CEO of Fidelity Investments, Abigail Johnson, said, the goal of the new platform is to make digital assets like Bitcoin more accessible to investors.

Fidelity Investments is considered the fifth largest asset manager in the world, offering investment and custody services to 13,000 consulting firms and brokers. In total, the company manages assets worth $ 7.2 trillion.