Tag: BTC

  • HSBC Adds Coinbase to Crypto Ban List

    HSBC Adds Coinbase to Crypto Ban List

    Despite the growing embrace of cryptocurrencies among institutions and retail investors, HSBC is sticking to its policy of avoiding virtual currencies and stocks correlated to them.

    Europe’s largest bank in Europe, with total assets of $2.715 trillion, is likely to avoid Coinbase’s newly listed COIN stock because of lingering worries about crypto’s role in money laundering and criminal activity.

    HSBC has no appetite for direct exposure to virtual currencies and limited appetite to facilitate products or securities that derive their value from virtual currencies. This is not a new policy, Ankit Patel, HSBC corporate media relations manager, told crypto news platform Coindesk.

    Last week, the bank confirmed that it stopped customers of its online trading platform InvestDirect from adding MicroStrategy stock to their portfolios, calling them a «virtual currency product.» The company holds about $5.5 billion in bitcoin, or about 80 percent of its $6.8 billion market capitalization.

    Coinbase debuted on Nasdaq last Wednesday in a direct listing, in what was seen as another key step towards cryptocurrencies becoming a mainstream medium of exchange.

    The listing of Coinbase’s means that even if average investors don’t want to buy or sell cryptocurrencies on their own, they can still can invest in the cryptocurrency economy by taking a stake in one of its biggest players. After a day of trading, the U.S.’ largest cryptocurrency exchange had a market capitalization of $86 billion.

    To stay competitive amid client demand for digital assets, financial sector giants have ramped out their offerings. These include BNY Mellon, which announced the introduction of crypto custodial services and Morgan Stanley, which will roll out a bitcoin offering to wealth management clients and is reportedly mulling exposure in Bitcoin through its investment arm, Counterpoint Global. Goldman Sachs has also said it would offer investments in bitcoin and other digital assets to its wealth clients.

    Outside of the U.S., notable global banks that have also launched crypto offerings include Standard Chartered and DBS.

  • Fake iOS app steals one million dollars in Bitcoins taking a victim’s life savings

    Fake iOS app steals one million dollars in Bitcoins taking a victim’s life savings

    You have to feel bad for a man named Phillipe Christodoulou. Looking for a place to store Bitcoins he owned that were valued at $600,000 at the time, he installed an app called Trezor Wallet from the Apple App Store, when Christodoulou opened the app looking to check his balance, he was stunned to discover that his 17.1 Bitcoins (now worth over $1 million) was gone.

    As it turned out, Trezor, which manufactures hardware cryptocurrency wallets, does not offer an iOS or Android app and had been complaining about the fake apps listed in the App Store and Play Store to no avail. Back in December, the company disseminated a tweet warning Android users that own a physical Trezor device that “This app is a scam and has no relation to SatoshiLabs and Trezor. We’ve already reported it to the Google team. Always confirm any action on your device and never type seed words until your Trezor asks you to.” Google did remove the Android version of the app in December.

    Seed words or a seed phrase is a list of words needed to recover Bitcoin funds “on-chain.” Anyone who knows the words can take ownership of the user’s Bitcoins so Trezor recommends that they must not be typed into a website and that seed words need to be guarded as fiercely as one would protect cash or jewels.

    While the bad actors that created the fake iOS and Android versions of the (non-existent) Trezor app stole $1 million in Bitcoins from Christodoulou, the victim is more upset with Apple. Once a loyal Apple customer, Christodoulou now says that Apple “betrayed the trust that I had in them. Apple doesn’t deserve to get away with this.”

    Apple spokesperson Fred Sainz says that “Study after study has shown that the App Store is the most secure app marketplace in the world.” However, you won’t get Meghan DiMuzio, executive director of the Coalition for App Fairness, to agree with the Apple spokesperson. DiMuzio, contradicting Sainz’ statement, said, “Apple frequently pushes myths about user privacy and security as a shield against its anti-competitive App Store practices. The truth is, Apple’s security ‘standards’ are inconsistently applied across apps and only enforced when it benefits Apple.”

    The 17.1 Bitcoins that were stolen represented Christodoulou’s life savings and right now there is no indication that he will be able to get that money back.

  • GIC Bets on Digital Assets

    GIC Bets on Digital Assets

    The blue chip-focused Singapore sovereign wealth fund has invested in a crypto bank, in a signal that digital assets are here to stay.

    In an announcement on its blog last week, U.S.-based digital asset bank Anchorage said it raised $80 million in a Series C funding round led by GIC.

    Joining the sovereign wealth fund were U.S. venture capital firms Andreessen Horowitz, Blockchain Capital, and Lux, as well as Portuguese fund Indico.

    Anchorage said the new capital will allow it to «rapidly scale to meet the rising demand for participation in the digital asset space, particularly among corporations and traditional financial institutions.»

    It also said that it wants to be a crypto partner to neo banks, challenger banks, and traditional banks, and make institutional decentralized finance (DeFi) participation accessible.

    In 2018, GIC was among investors who raised $300 million for Coinbase, a digital currency exchange headquartered in San Francisco, California.

    The news came as a surprise as CEO Lim Chow Kiat previously said that GIC would avoid crypto-related investments as it goes against GIC’s investment mandate, which is «to preserve and enhance the international purchasing power of Singapore’s financial reserves.»

  • Vietnam cryptocurrency use second highest in the world

    Vietnam cryptocurrency use second highest in the world

    Vietnam has the second-highest rate of in terms of cryptocurrency use among 74 surveyed economies, driven by remittance payments, a new report says.

    The report on survey results released by Statista, a global provider of market and consumer data, says 21 percent of respondents in Vietnam said that they used or owned cryptocurrency in 2020, second after Nigeria (32 percent).

    The Philippines ranked third at 20 percent, followed by Turkey and Peru, both at 16 percent, said the survey which covered 1,000-4,000 respondents per country.

    The rest of the top 10 comprised Switzerland, China, the U.S., Germany and Japan.

    For Vietnam and the Philippines, remittance payments play a role in the widespread use of cryptocurrency,” the report said.

    The high cost of sending money across borders in conventional ways has caused many to turn to local cryptocurrency exchanges, catering to overseas workers and their families, it added.

    However, cryptocurrency has not been recognized as a legitimate means of payment in Vietnam. The State Bank of Vietnam has warned that owning, trading and using cryptocurrency was risky and not protected by laws.

    Earlier reports have noted that while the Vietnamese diaspora typically sent remittances to Vietnam to support their families, there has been a shift in recent years. Now, a significant portion of remittances is used as investments for doing business in the country.

    Around 580,000 Vietnamese citizens work overseas now, up from 500,000 in 2010, according to the Department of Overseas Labor under the Ministry of Labor, Invalids, and Social Affairs.

  • ApplePay will now allow users to make purchases using Bitcoin

    ApplePay will now allow users to make purchases using Bitcoin

    Bitcoin is still the most famous cryptocurrency. And at Friday’s close, each Bitcoin was valued at close to $48,000, more than double the valuation of the digital currency about a year ago. Not only can you buy more with your Bitcoins, but you can also find it easier to spend thanks to the Apple Pay mobile payment service. The BitPay wallet app’s Prepaid Mastercard can be added to the Apple Wallet and Apple Pay can help Bitcoin owners spend the cryptocurrency online, through apps or in a store.

    The BitPay wallet app not only works with Bitcoin, but will also work with Ether, Bitcoin Cash and as well as the dollar-pegged stable coins USD Coin, Gemini Dollar, Paxos Standard and Binance USD. The stable coins are based on a 1:1 ratio with the U.S. Dollar. For every Gemini Dollar in circulation, there is a corresponding U.S. Dollar held by the State Street Bank and Trust Company.

    There are plans in the work to add support for the BitPay Wallet by the end of next month with other mobile payment services Google Pay and Samsung Pay. This will allow Android users to more easily spend Bitcoins and other cryptocurrencies including the aforementioned names that are pegged to the U.S. Dollar.

    To add your BitPaycard to Apple Wallet, you need to have the latest version of the BitPay app. The latter, which can help you securely store, spend, and manage Bitcoin, can be installed from the App Store and the Google Play Store. BitPay CEO Stephen Pair (both of him) said, “We have thousands of BitPay Wallet app customers using the BitPay Card. Adding Apple Pay and soon Google and Samsung Pay makes it easy and convenient to use the BitPay Card in more places.”

    Apple should do even more when it comes to digital currencies; should Apple add a cryptocurrency exchange it could generate over $40 billion. RBC analyst Mitch Steves believes that this would allow Apple’s shares to rise 25%. RBC noted that “Square takes in $1.6 billion a quarter through bitcoin-trading revenue from its roughly 30 million active users. Apple has an install base of about 1.5 billion people, signaling that it could make up to $40 billion a year from a Wallet-based crypto exchange.” The report adds that “if Apple went down this path, the USA would likely acquire the most crypto assets from a global perspective. If the USA owns the most crypto assets (be it Bitcoin or other assets), it would not make logical sense in our view to ban it. In addition, with Apple’s secure and world-class software, the USA would be able to have confidence in user information and balances if needed in the future.”

    Apple’s big move comes right after Tesla CEO Elon Musk showed interest in cryptocurrency Dogecoin. Tesla says that it soon will accept Bitcoins as payment toward the purchase of a Tesla vehicle. RBC’s Steves notes that the combination of Apple’s interest in Bitcoin and Apple’s popularity in the tech world can help the U.S. become the technological leader in cryptocurrencies for as long as the next 20 years.

    Thanks to the Blockchain technology, the method used to keep track of Bitcoin transactions, using the cryptocurrency is secure. Data on transactions is kept inside blocks and when a block is full, it is chained to the previous one. If someone wants to steal Bitcoin and hacks into the Blockchain to alter the information in one the blocks, it can’t be done without all members of the Blockchain spotting the changes. There are smartphones that can store and verify cryptocurrency transactions such as the HTC Exodus 1s.

  • Crypto Firm Nabs Ex-HSBC Banker as CEO

    Crypto Firm Nabs Ex-HSBC Banker as CEO

    A British banker is taking over the top job at Valour, a Swiss start-up that plans to expand a zero-fee bitcoin exchange-traded product across Europe.

    Zug-based Valour is naming Diana Biggs as its CEO, effective immediately, it said in a statement. She is the former chief of innovation at HSBC’s private banking unit and a cryptocurrency backer of the earliest hour.

    Biggs is the latest banker to leave traditional finance for digital assets, which is a booming industry in Switzerland thanks to friendly regulatory handling. Diana is the perfect candidate to lead the company through this next phase of growth and expansion, Valour founder Johan Wattenstrom said.

    Founded three years ago, Valour in December launched a fee-less digital asset product that trades on the Nordic exchange’s growth index, NGM. The start-up manages nearly $30 million and plans to roll out more exchange-traded notes at other European venues in the coming months.

    At HSBC, Biggs led fintech partnerships and championed open innovation. Prior to joining the British bank, she worked for digital currency platform Uphold, e-commerce startup Soko, and spent nearly five years as a consultant at Oliver Wyman.

  • India Proposes Crypto Ban and E-Rupee Plans

    India Proposes Crypto Ban and E-Rupee Plans

    Indian authorities plan to propose a new law to ban private cryptocurrencies and implement a framework for an official central bank digital currency.

    India will seek «to prohibit all private cryptocurrencies in India», according to a legislative agenda published by the lower house’s website on Friday last wee, with exceptions for certain purposes such as the promotion of the underlying technology and its uses.

    In addition, lawmakers will look to «create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI).

    Not unlike other central banks, the RBI has been accelerating efforts to launch its own electronic money and tighten regulation against cryptocurrencies. It first issued an order in April 2018 to cut ties with all individuals or businesses dealing in digital currencies like Bitcoins within three months.

    But India’s Supreme Court subsequently overturned the ban by allowing banks to handle crypto transactions from exchanges and traders.

    The pushback reflects broader shifts in sentiments worldwide, particularly amongst banks that have been demonstrating increasing openness to cryptocurrencies.

  • Forgotten Passwords: $140 Billion Bitcoin Write-Off?

    Forgotten Passwords: $140 Billion Bitcoin Write-Off?

    Nearly $140 billion worth of Bitcoins is at risk of being permanently lost, according to online platform Chainalysis, due to forgotten passwords for decryption.

    3.7 million Bitcoins worth almost $140 billion could permanently vanish from the market, as of January 18 this year.

    Based on June 2020 figures, this represents around one-fifth of the total 18.6 million Bitcoins created in the market. Bitcoin’s infrastructure is designed to cap supply at 21 million.

    German-born San Francisco-based programmer Stefan Thomas first shined a light on the issue after he revealed that he failed to gain access to his crypto wallet to access over more than $200 million worth of Bitcoin.

    Thomas had already made eight successful attempts and he has two more remaining to save his sizeable Bitcoin holdings.

    I would just lay in bed and think about it. Then I would go to the computer with some new strategy, and it wouldn’t work, and I would be desperate again, he recalls. I got to a point where I said to myself, ‘Let it be in the past, just for your own mental health.

  • Physical Exchange Results in Bitcoin Robbery in Hong Kong

    Physical Exchange Results in Bitcoin Robbery in Hong Kong

    A 37-year old man in Hong Kong allegedly sought to sell bitcoin for cash but ended up being swindled during an in-person transaction in a vehicle and kicked out.

    The victim had originally scheduled to meet two individuals to trade 15 bitcoin at HK$235,000 each ($30,000), or HK$3 million in total, outside of a hotel in Hong Kong, according to a report citing police sources.

    The vehicle proceeded to move to another location while the bitcoin transfer was being made. Upon completion, another car showed up and three more individuals related to the original two fraudulent buyers robbed the victim’s cash, two mobile phones, and kicked him out.

    Local police claim that the six robbers were non-Chinese men aged around 30 and have yet to be captured.

  • Singapore Tightens Oversight of Crypto Exchanges

    Singapore Tightens Oversight of Crypto Exchanges

    MAS powers have been expanded to include regulatory measures on crypto service providers, even if they may not possess the money or cryptocurrency involved.

    The Monetary Authority of Singapore (MAS) is enhancing its regulatory framework and updating the Payment Services Act to keep pace with changes to international standards and to better mitigate the money laundering and terrorism financing related to digital payment tokens.

    Any entity that facilitates the transmission, exchange or storage of DPTs – also known as cryptocurrencies – will now have to be licensed, MAS said on Monday.

    The new legislation will help minimize the risk of DPT service providers being exploited by criminals to launder illicit proceeds or hide illicit assets, said Minister for Transport Ong Ye Kung, who is also a board member of MAS, during the second reading of the Payment Services (Amendment) Bill in Parliament on Monday.

    The amendments also give MAS powers to impose measures on DPT service providers to ensure better consumer protection and to maintain financial stability and safeguard the efficacy of monetary policy.

    We have seen recent development of new forms of DPTs which values are pegged to stable assets to gain users’ confidence. It is therefore important for MAS to be able to respond to market developments and address new risks in a timely manner, MAS said.

    The Payment Services Act, which was introduced in January 2020, provides comprehensive regulation for companies handling activities ranging from digital payments to the trading of tokens such as bitcoin and ethereum, and gives MAS formal supervisory powers for cybersecurity risks and controls on money laundering and terrorism financing.

  • Crypto Rumbles Central Bank Sovereignty

    Crypto Rumbles Central Bank Sovereignty

    The private sector has long driven innovation on digital currencies but as fintech’s plans became more powerful, central banks sprang to attention. Their main concern? Keeping monetary policy in their purview.

    The most tantalizing tales in cryptocurrencies this year weren’t written by Libra or bitcoin, but by national or supranational projects like the digital euro. While investors raced to get in on bitcoin’s record-smashing highs, the government projects warrant a closer look.

    What central banks are trying to do is replace the storage carrier of money with a new one – cloud instead of long-play (LP), so to speak. The aim is to kill several birds with one stone.

    The first is to stave off a private sector-led attack on central bank sovereignty. The second is enabling efficiencies in the financial system, and the third is to lay a foundation for seamless oversight of monetary transactions.

    Taken in turn: a central bank ensures financial stability while overseeing systemically-relevant market infrastructure. To hand over a central instrument in its arsenal is to jeopardize its own mandate. Replacing a country’s own currency with another – which frequently happens in unstable countries, where dollars effectively become the leading currency – is a good example, or when a privately-controlled alternative takes over for reasons of efficiency.

    Admittedly, crypto is far from this scenario, but the thought experiment is a worthwhile one. We need to assume that multinational companies like Amazon or Alibaba will in future control and executive an enormous portion of private consumption: they own the value chain, from manufacturer to end consumer. They are intimately familiar with customer needs and aren’t shy about cultivating the data with the help of artificial intelligence.

    The next logical step in cementing this position is to introduce their own currency. This would dramatically simplify the purchasing process as well as create a vast common currency area spanning producer, commercial dealer, suppliers, to consumers.

    None of this is a problem as long as employees are paid in U.S. dollars, euros, or krona and use a major currency to buy a trading one. But if they are, for example, partly paid in Amazonas or Alibabas, central banks cede part of their authority to the private sector. The initial hostile official response to Libra is the logical consequence of this.

    The Swiss central bank’s «Project Helvetia» as part of the BIS’ innovation hub sidesteps the first question in favor of tackling the second, central digital revolution issue. Traditional banks are still grappling with the conversion to digital banking: continually under siege from newer upstarts without any historical baggage and far zippier organizations.

    The Swiss National Bank’s digital franc is meant to enable efficiency gains and simplify monetary transactions. This is a much more defensive strategy than other central banks have elected – notably the European Central Bank, Sweden’s Riksbank, or the People’s Bank of China – but the pragmatic approach fits the Swiss system of thinking well.

    In lockstep with infrastructure provider SIX, which belongs to the banks, genuine and measurable advances would represent a great step towards a digital future. The Swiss stock exchange operator plans to go live with its digital asset trading venue, SDX, next year. A digital Swiss franc would suit the SNB’s financial intermediaries perfectly.

    Switzerland is hardly ready for the third and conclusive step: a digital version of cash is being actively discussed elsewhere (namely in Sweden and China). Some aspects of digital money – efficiency versus cash and crucially, the traceability of transactions – are too tempting to resist.

    Of course, all types of criminals could be disrupted in their activities with such a step. But the accompanying supervision of citizens contradicts Switzerland’s understanding of government and privacy – and should be rejected. The complete replacement of cash in Europe and the U.S. isn’t on the horizon either for the same reasons, even if digital money eventually will find a niche besides paper.

    Despite the rapid advancement of the topic in recent months, we’re still at the dawn of developments. 2021 is sure to bring promising new developments, and the ECB is likely to devote considerable resources to rolling out a digital euro (or ultimately spike the project).

    In Switzerland, SDX and «Project Helvetia» are poised to take their next steps. The U.S. has been noticeably absent in the discussion, though January’s change in administration may mark a new tack in digital assets.

  • Blockchain Ecosystem Report Lanuched

    Blockchain Ecosystem Report Lanuched

    The Singapore Blockchain Ecosystem Report 2020, launched at this year’s Singapore FinTech Festival x Singapore Week of Innovation and TeCHnology, highlights impactful developments and trends in Singapore’s blockchain ecosystem over the last year.

    The report is co-presented by OpenNodes, Temasek, IBM, PwC Singapore, EY, and SGTech, and supported by the Infocomm Media Development Authority and the Monetary Authority of Singapore. It highlights Singapore’s lively blockchain research landscape due to active contributions from both academic institutions and the private sector.

    The report also showcases how COVID-19 has accelerated the application of blockchain technology, which is being used to verify health credentials amid the pandemic.

    It features a bibliometric analysis of blockchain-related scientific publications, showcasing Singapore’s pioneering progress in driving both high quality and quantity research in the field of blockchain technology. It concludes that Singapore has produced the highest number of research publications on the subject in ASEAN, and the third-highest in the world.

    PwC Singapore conducted a survey for the Singapore Blockchain Ecosystem Report 2020 to assess the developments of blockchain-related activities in Singapore. Results showed that blockchain emerged as one of the top three technology trends in Singapore for 2021, with 70 percent of the respondents showing support for the technology. The survey also ranked Si

  • Hong Kong and Singapore Split on Crypto Future

    Hong Kong and Singapore Split on Crypto Future

    Asia’s two marquee global financial hubs have hit a fork in the road of crypto assets and they appear to be heading in different directions.

    Last year, the local chief securities watchdog, Ashley Alder, also chose the FinTech Week to reveal a so-called «opt-in» regime for crypto asset trading platforms, which allowed operators to choose whether or not they wanted to be regulated by the Securities and Futures Commission (SFC). This was due to the fact that some crypto assets cannot be strictly classified as securities.

    This is about to change, Alder said earlier this week, also during the FinTech Week.

    Today, the Government proposed a new licensing regime under the Anti-Money Laundering Ordinance for platforms that trade any type of crypto-asset, even if none are classified as securities. So if they are operating in Hong Kong, or target Hong Kong investors, they would need to apply for an SFC license. Failure to do so would be an offense.

    In addition to licensing, the proposed rules will also ban retail investors from trading crypto assets, limiting access to professional investors which includes the requirement to have a minimum of $1 million.

    Given the risks involved, the proposal is that they should offer their services to professional investors only, at least initially, Alder said.

    Simply speaking, we will require all virtual asset trading platforms to be operating transparently, like working under the sunlight, added Christopher Hui Ching-yu, Hong Kong’s secretary for financial services and the treasury.

    Meanwhile, Singapore continues to take a liberal approach to allow operators to develop more freely and organically.

    Although there were moments when the Monetary Authority of Singapore (MAS) stepped in to rein in on the market – in 2018 it returned funds to Singapore-based investors of an unnamed initial coin offering (ICO) which it considered a security – the regulator has yet to issue licenses to operators nor has it taken a strict stance, unlike Hong Kong, on crypto assets that aren’t classified as securities.

    Even major exchanges like Coinbase and Binance operate in the city-state and have been granted temporary exemptions from holding a license.

    MAS: Investor Responsibility

    On investor protection, Hong Kong authorities made the choice to decide for retail investors when or if access would be appropriate. This is an area where the MAS has also taken a decidedly different route, preferring to promote investor responsibility while encouraging more education and prudence.

    In fact, the MAS’ Capital Markets assistant managing director Lee Boon Ngiap provided a simple and straightforward warning: The public should be aware that there is no regulatory safeguard if they choose to trade on unregulated digital token exchanges or invest in digital tokens that fall outside of the remit of MAS rules.

    And under the MAS’ regulatory, Singapore has rapidly emerged as a global leader in the crypto asset industry.

    It is currently home to 234 entities involved in blockchain including Mastercard, VISA, Ant Financial, Tencent-backed WeBank, Facebook-backed Libra, and more with Ripple now shortlisting the city-state for its headquarter relocation. Even Singapore’s largest lender, DBS, is reportedly cooperating with regulators to potentially launch a cryptocurrency trading with retail access.

    The subsequent outcome has been the rapid establishment of Singapore as a global crypto market leader. Despite having a population of just 6 million, Singapore is second worldwide in the number of ICOs and ICO value ($2.5 billion), according to data from ICObench, only behind the U.S.

  • Libra Poaches Top Credit Suisse Crime-Fighter

    Libra Poaches Top Credit Suisse Crime-Fighter

    The bank’s top anti-money laundering executive is leaving for Facebook-backed payments project Libra.

    Sterling Daines is leaving Credit Suisse for Libra, a source familiar with the matter said on Tuesday. The bank had poached Daines three years ago from Goldman Sachs to run its financial crime compliance, or FCC, activities under top compliance boss Lydie Hudson.

    He is the latest representative from traditional finance to head for Libra, an upstart payments system governed by a Swiss-based association. Last month, Libra said it is hiring HSBC’s top lawyer Stuart Levey as its CEO, and also tapped the weighty support of Singapore’s sovereign wealth fund.

    Neither Daines nor Libra responded to a request for comment. A 2018 sanction from Swiss watchdog Finma for several money-laundering scandals fell in the early days of Daines’ tenure at Credit Suisse.

    The Swiss bank is poised to replace him with Tam Ludford, a 12-year Credit Suisse veteran who will add the job to his current role as global head of core compliance, surveillance, and investigations.

  • The Impact of Libra and Alipay on Monetary Policy

    The Impact of Libra and Alipay on Monetary Policy

    Digital payment systems such as Libra and Alipay may eventually weaken traditional tools of monetary policy. In doing a good job, central banks can prevent this from happening though, according to a high-ranking Swiss central banker.

    The Swiss National Bank (SNB) is currently engaged in a fight against an appreciation of the Swiss franc and – presumably – is spending huge amounts of money on the purchase of euros and dollars. A fight against all odds it seems – and with the emergence of Alipay or eventually even Libra, the risk is that traditional means of monetary policy lose their effectiveness.

    Once such a purely digital means of payment takes on the role of a trading currency across national borders, central banks are faced with a set of whole new questions.

    It is clear that it would become more difficult to implement the monetary policy if a major part of payments in Switzerland is conducted in another currency than the franc, said Thomas Moser, member of the enlarged governing board of the SNB.

    Moser is convinced that central banks can meet the challenges by simply doing a good job, and thereby prevent people from opting for alternative means of payment. But, at the moment, the bank estimates that the introduction of digital central bank money for consumers would entail hardly an advantage, but major risks.

    The emergence of such means of payment is closely linked to the Blockchain, which is the focus of the second wave of digitization and decentralization. The Blockchain-enabled things beyond our imagination, Moser said. «Today as then, expectations were exaggerated. But in the long run, the consequences are underestimated.»

    Central banks and governments are keen to provide a legal framework for such new projects and to make them conform to the current regulation in a bid to enable the financial market to exploit the new opportunities arising.