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South Korea’s Bank Chief Expresses Skepticism about Crypto Industry

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The bank’s chief also mentioned that the apex bank was making considerable progress with its central bank digital currency (CBDC) project.

A top executive of South Korea financial regulator Lee Ju-yeol, who is the governor of South Korea’s bank, has said that crypto like Bitcoin has no intrinsic value. He made this statement during a briefing of the country’s National Assembly Finance Committee.

According to South Korea’s bank governor, the reason for the current price surge of crypto, including Bitcoin, is difficult to explain, while adding that the asset will continue to witness price volatility because of its lack of an “intrinsic value.” However, he noted that the possible reason for the increased price spike could be tied to the increasing concern about inflation and also the growing institutional interest in the crypto space.

He went on to specifically mention Tesla’s recent purchase of $1.5 billion worth of BTC as another reason why the value of the coin has continued to climb. In Lee’s words, “institutional investors’ assessment of using Bitcoin as a hedge could be interpreted as another factor.”

Institutional interest in the crypto industry has played a part in helping Bitcoin’s market cap hit $1 trillion and its value to reach as high as $58,000 before witnessing a sharp decline that saw its value drop below $48,000. The massive price decline of this nature is one of the sticks that is always being used to beat the crypto industry.

However, many of these investors still see BTC and other crypto assets as a viable store of value that could be used to hedge against inflation despite its legendary volatility.

The bank’s chief also mentioned that the apex bank was making considerable progress with its central bank digital currency (CBDC) project. According to Lee, the bank has almost completed its review of designs and also technologies that the CBDC project could run on.

We reported that South Korea has moved to bring forward its crypto tax regulation to 2022 which means profits gained from crypto transactions from then on would face a 20% tax regime in the Asian country. 

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Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.



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Nash: Bridging Gap between Fiat and Crypto

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Nash Link is a solution for merchants to accept cryptocurrency without setting up a blockchain wallet.

Nash specializes in providing the best fiat/crypto gateway services for both retail and business customers, combining the lowest prices and fees with high-security wallets. This exchange service is fully licensed to operate in Europe.

For BTC, ETH, NEO and USDC, Nash offers 0% fees. This is possible because Nash operates its own crypto-crypto exchange. Nash’s unique Layer-2 exchange provides the same performance as centralized exchanges without taking custody of funds.

For other crypto assets, tradeable on Layer 1 user wallets, Nash charges just 1% fees, with no hidden slippage fees.

What’s more, Nash provides the safest software wallet by using secure multi-party computation (MPC) technology. MPC ensures a user’s full private key is never used to sign transactions and allows for security policies like address whitelists. Nash never has control over user funds.

On the business side, Nash offers its fiat gateway services as a white-label solution for third parties. Fees remain as low as 1%, with no tricks like huge asset mark-ups. Nash is a highly competitive solution for projects seeking a licensed fiat gateway for their platform and token.

Nash Link is a solution for merchants to accept cryptocurrency without setting up a blockchain wallet. Nash pays merchants the exact fiat price they set in their preferred national currency (€, £ or $) with 0% fees, managing risk around price volatility This is also possible thanks to Nash’s Layer-2 exchange.

In 2021, Nash will expand into digital banking services. High-interest DeFi-staking products will go live in Q2. In Q3, Nash will offer national currency checking accounts (with IBANs) on its platform. These will enable an even simpler savings product where users can easily deposit cash and lock it in a DeFi-powered crypto savings account. With a debit card arriving in Q4, Nash will seamlessly integrate traditional and crypto finance by the end of the year.

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Charlie Munger Rebukes Tesla and Bitcoin Valuations, Warns Investors about Robinhood

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Charlie Munger was clear that in his opinion: Bitcoin could not become a medium of exchange due to its volatility.

Berkshire Hathaway vice chairman and Warren Buffett‘s right-hand man Charlie Munger has criticized recent developments around Bitcoin, Tesla Inc (NASDAQ: TSLA), SPACs and trading platform Robinhood.

From his comments, it was clear Charlie Munger is not a fan of any of them. In an interview during the Daily Journal’s annual shareholder’s meeting, Charlie Munger on Wednesday condemned the current market frenzy. The long term business partner of Warren Buffet stated that he could not decide what was worse between Tesla reaching a $1T market cap or Bitcoin hitting over $50K. Tesla recorded its gains in 2020 after a 743% surge. Bitcoin on the other hand climbed above $50K soon after Tesla announced it had purchased Bitcoin worth $1.5B. The two assets price performance has been connected in recent months.

When asked about which was worse between Tesla and Bitcoin, the 97-year-old noted:

“Well I have the same difficulty that Samuel Johnson once had when he got a similar question, he said, ‘I can’t decide the order of precedency between a flea and a louse,’ and I feel the same way about those choices. I don’t know which is worse.”

Charlie Munger: I Will Never Buy Bitcoin

When asked about the future of banking, he was hesitant to give a direct answer. However, he was clear that in his opinion, Bitcoin could not become a medium of exchange due to its volatility. He further explained why he would never buy Bitcoin:

“So I don’t think bitcoin is going to end up the medium of exchange for the world. It’s too volatile to serve well as a medium of exchange. And it’s really kind of an artificial substitute for gold. And since I never buy any gold, I never buy any bitcoin.”

Munger went on to talk about Robinhood blasting it as for luring novice investors. He noted that Robinhood was encouraging investors to gamble on stocks due to the stock market frenzy. In a dire warning, he stated that the activity is regrettable and would see a lot of investors lose money. On the same, he touched on GameStop stock mania that ended with its price rallying by up to 400% in a week. Munger termed it as dangerous and a dirty way to make money.

SPACs Are a Sign of a Bubble

The businessman further touched on the rising culture of SPACs. The new trend has been adopted by companies looking to go public with a guaranteed valuation. This has seen crazy speculations on the first day of trading. On top of confirming his lack of participation, he added:

“I think this kind of crazy speculation and enterprises not even found or picked out yet is just a sign of an irritating bubble…”

These comments come as no surprise. Especially on Bitcoin, as a long-time partner of Warren Buffett, his lack of understanding of the digital asset is in line. Buffett has in the past criticized Bitcoin as risky and worthless. Notably, the two are from the early generations who happen to be most critical of the digital asset. Recent generations, looking for a change in an oppressive system are most receptive to Bitcoin.

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Kiguru is a fine writer with a preference for innovation, finance, and the convergence of the two. A firm adherent to the groundbreaking capability of cryptographic forms of money and the blockchain. When not in his office, he is tuned in to Nas, Eminem, and The Beatles.



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Canada-Based VersaBank Unveils Plans to Launch VCAD, Canadian Dollar-backed Stablecoin

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While the Bank of Canada reportedly backs the issuance of a digital Canadian Dollar, private alternatives are increasingly permeating the space.

VersaBank (TSX: VB), a digital bank based in Canada has unveiled plans to launch a stablecoin dubbed the VCAD and pegged to the Canadian Dollar. The proposed digital token is described as the first of its kind to be issued by and backed by deposits lodged with a North American or a Canadian bank.

The VCAD is a stablecoin that will maintain stability with the CAD, on a ratio of 1 to 1. It is the product of the partnership between VersaBank and Stablecorp, a joint venture spunned by Canada’s leading crypto asset manager, 3iQ, and Mavennet, a North American leader in blockchain development. The origination of the new token gives it a good reputation per stability with its pegged fiat currency, and it is deemed secure, drawing from its cryptographic infusion while it was being designed.

“As North America’s first bank-issued “stablecoin”, VCAD offers consumers and businesses the ability to adopt and leverage the benefits of digital currency and blockchain-based assets without the volatility of traditional currencies, alongside the security of a value-backed asset that the cryptocurrency world has long demanded,” said David Taylor, President of both VersaBank and its cyber security subsidiary, DRT Cyber. “Consumers and businesses purchasing products and services with VCAD will finally know the precise value of their digital currency when executing these transactions.”

VCAD will be minted and issued by VersaBank to financial or industry intermediaries in exchange for Canadian dollar deposits through the use of the Bank’s “smart contracts.” These partner institutions will be tasked with the distribution of the stablecoin to final users based on request. Once issued, the tokens can easily be redeemed for the fiat equivalent at any time.

Demand for Canada-based Versabank Stablecoin Not a Question

The world is changing, and the search for alternatives to fiat currencies is increasing. The use of Bitcoin (BTC), Ethereum (ETH), and stablecoins like Tether (USDT) is becoming commonplace in the crypto ecosystem.

Authorities have frowned at Bitcoin and its cohorts in usurping the financial terrain, however, mild tolerances for stablecoins still exist. While the Bank of Canada reportedly backs the issuance of a digital Canadian Dollar, private alternatives are increasingly permeating the space. With the demand for cashless and crypto-related digital currencies, the adoption of VCAD may come without any hassles.

“VCAD provides consumers with not only the security afforded by an underlying deposit with a Canadian chartered bank but also the comfort of knowing that each VCAD issued or redeemed will always have one-to-one value with the Canadian dollar. With such clear benefits, we are highly confident in the demand for VCAD as digital currencies increasingly become part of mainstream financial transactions,” said Jean Desgagne, CEO, Stablecorp.

Besides VCAD, VersaBank hopes to pioneer the roll-out of VUSD and VEuro stablecoins that will be backed by the United States Dollar and Euro deposits respectively.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.



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