ECB Governor Calls For Tax on Bitcoin

Ewald Nowotny call governments to regulate bitcoin, labelling the cryptocurrency an object of speculation and a tool for money laundering
03 January 2018   1356

Ewald Nowotny, member of the European Central Bank ’s governing council, said in an interview with German paper Sueddeutsche Zeitung on Wednesday that governments should regulate and tax bitcoin, labelling the cryptocurrency an object of speculation and a tool for money laundering.

We need a value-added tax on bitcoin, since it's not a currency. It can't be allowed that we've just decided to stop printing 500-euro notes to fight money laundering, that we've slapped strict rules on every tiny savings club, and then have to watch people blithely laundering money around the globe with bitcoin. One ought to apply what the basic rule is in any other financial transaction: everyone involved should reveal their identity.

 

ECB governing council member

Ewald Nowotny

Nowotny's comments echo those by other ECB officials, who regard the bitcoin's spectacular surge in value as a bubble, rather than a sign it could be a digital competitor to the euro single currency used by its 19 member nations.

Recently, we have reported that the Bank of Israel is considering issuing digital currency in order to create a faster payments system as well as reducing the amount of cash in the economy.

Genesis to Process $746M Worth Crypto Loans in Q2

This value exceeded the first quarter by 48% and BTC still dominates in the loans' portfolio
24 July 2019   209

Oriented to institutional investors, the lender Genesis Global Capital, a division of the brokerage company Genesis Global Trading from the business empire of Barry Silbert, in the second quarter, processed $ 746 million in cryptocurrency and fiat loans. This exceeded the first quarter by 48%.

Bitcoin continues to dominate in the portfolio of outstanding loans with a share of 62%, but it is worth adding that in the second quarter the share of steylcoins increased by 100% (24%). Thus, international investors are increasingly borrowing money in the US dollar or its associated stabcocoins, Genesis reported.

At the same time, Ethereum occupies 3.9% of the outstanding loan portfolio, followed by Litecoin (3.7%) and XRP (2.5%). The company itself takes the coins from large players at 4-5% per annum, and gives them a loan at 6.5-7.5%.

In the second quarter, the cost of active loans (outstanding) reached $ 454 million, which is 149% higher than the results of the first quarter.

Recall that in 2018, Genesis processed cryptocurrency loans for $ 1.1 billion, and in the first quarter of this year - for $ 425 million.

Thus, since its inception, the company has processed loans of almost $ 2.3 billion.

Genesis is regulated by the United States Securities and Exchange Commission (SEC) and FINRA. The latter, by the way, was recently accused of delaying the issuance of licenses by broker-dealers to companies involved in the cryptocurrency industry.

Investment company Grayscale Investments, which is also owned by Silbert, in the second quarter set a record for the value of assets under management - $ 2.7 billion.