Former Fed governor proposes a Central Bank-issued crypto

Former governor of US Federal Reserve thinks that a Central Bank should issue its own cryptocurrency to supplement existing financial operations
07 May 2018   625

Banks have been very cautious about cryptocurrencies, so much that some banks refuse to work with crypto-related businesses even t this day. But some people think that bank-issued cryptocurrency isn't such a bad idea, after all.

Kevin Warsh, the United States Federal Reserve governor from 2006 to 2011, thinks that the organisation would only benefit from issuing a blockchain-based currency. The main selling point, in his opinion would be the ability to track and record any and all transactions performed in the system. He doesn't propose to get rid of US dollar in favor of a new fed-issued cryptocurrency, but to supplement the existing system. It would immensely help the government manage the situations more effectively.

But while the banks around the globe consider cryptocurrencies to be a smart thing, the underlying blockchain component is a lot more interesting to financial institutions and governments. A lot of organizations are developing their own implementations of blockchain for record keeping and smoothing out and speeding up the transactions.

For example, the Swiss National Bank explained that there is a major risk of bank runs in case they issue the national cryptocurrency. The main worry is about possible bank runs in such case, because the National Bank in this case become the commercial bank for the customers, instead of a last-resort lender for the financial institutions.

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   346

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.