The Bank of England (BoE) warned that the growing popularity of bitcoin could threaten the financial stability of the United Kingdom (UK) over time if the virtual currency gains mass acceptance.
However, in a series of reports the BoE says that restrictions on the number of coins in circulation, its inherent volatility and the prospect of higher transaction costs make it unlikely than it will attract enough users to supplant the existing banking system.
According to the BoE the current centralised banking system, which stores and protects customer funds, will continue to dominate retail and business transactions “over any foreseeable horizon” under the current design of digital currencies.
The UK central bank’s view was reported as the US bitcoin service firm Coinbase announced plans to launch a consumer service across a large part of the eurozone .
The company said it had found a way to link a bitcoin ‘wallet’ service to the euro payments system, making it possible for users to send money to and from their bitcoin account. The service will be rolled out in 13 of the 18 eurozone countries: Italy, Spain, France, Belgium, the Netherlands, Austria, Cyprus, Finland, Greece, Latvia, Malta, Portugal, and Slovakia.
Traders of the virtual currency in these countries will be able to buy or sell bitcoin using a European bank account, and during the beta phase, will be able to trade on a value limit of €500 per day. Coinbase said it expects this rate to rise once the beta phase is complete.
To date, Coinbase has only operated in the US where 1.6m consumers, 36,000 merchants and 6,000 developers use the company’s system.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
There are various ways for financial institutions to benefit from advanced technologies and business models provided by FinTech's. Whether a business' approach is radical or incremental, data management can help a company to increase their return on investment, argues André Casterman, INTIX.
Tim de Knegt, strategic finance and treasury manager for the Port of Rotterdam, discusses how he is using blockchain, the challenges he will face in his role of treasury over the next 12 months and the advice he would give to someone starting out their career in treasury.
Far and away, the largest financial market on the planet is the foreign exchange currencies market, where on average individuals and organisations trade more than $5 trillion daily. In the FX world, the ability to master the market isn't considered a luxury for treasury officers–it's a necessity.