The price of Bitcoin surged recently after social media giant Facebook, unveiled its very own digital currency, Libra, in June 2019. The announcement came together with a white paper, ‘An introduction to Libra,’ which details the project’s vision.Facebook’s Libra is a cryptocurrency created for instant transfer with almost no fees to anywhere in the world.
Cryptocurrency is a decentralised virtual currency that is deemed to be more efficient than traditional currencies because it is regulated by a community of users. The top 100 cryptocurrencies have a current market value of about US$200 billion according to CoinMarketCap, a site that provides up-to-the-minute updates for digital market data.
When blockchain and cryptocurrency first made headlines, many saw them as disruptors to the current financial order. This is because transactions that involve cryptocurrencies remove the need for an intermediary – a role banks and other financial institutions have traditionally filled.Unlike banks and the current financial system, cryptocurrencies are backed by a system called blockchain. Blockchain is essentially a decentralised ledger, where every transaction is recorded.
When blockchain and cryptocurrency first made headlines, many saw them as disruptors to the current financial order. This is because transactions that involve cryptocurrencies remove the need for an intermediary - a role banks and other financial institutions have traditionally filled.Unlike banks and the current financial system, cryptocurrencies are backed by a system called blockchain. Blockchain is essentially a decentralised ledger, where every transaction is recorded.
Following a regulatory framework which went into effect last month, Thailand’s central bank has announced a set of rules governing cryptocurrency activities in the country.
For the past year, the term “cryptocurrency” has been bandied about by people in the tech and banking industries, usually with admiration from the former and some scepticism from the latter. More startups in the region are beginning to contemplate integrating cryptocurrencies into their respective business models. Fintech firms too could especially benefit from introducing cryptocurrency into their operations.
A new set of laws governing cryptocurrencies has been introduced in Thailand. According to the government, the new laws aren’t intended as a blanket ban on cryptocurrencies but serve to regulate such digital assets and tokens while protecting investors from the uncertainties of the cryptocurrency market. This new piece of legislation will also come down hard on the illicit use of cryptocurrency, especially in money laundering, tax evasion and unauthorised transactions.
We often associate cryptocurrencies with the realm of the intangible, existing in the perplexing world of coding and data. This thought process will now be a thing of the past as physical bitcoin notes have been launched in Singapore. Tangem, a crypto start-up which positions itself as the developer of “the first smart banknote for digital assets,” has just introduced the pilot sale of “Tangem notes” in the island nation.
Bitcoin started the week badly, as prices for the popular cryptocurrency fell 7% to dip below US$8,000. The sudden sell-off follows from Twitter’s decision to ban advertising for cryptocurrencies. Twitter is joined by Facebook and Google who have both banned advertisements for initial coin offerings and token sales on their respective platforms.
Previously seen as a disruptor to traditional banking methods, blockchain technology is now being adopted by banks in Thailand. In an unprecedented move last week, 14 banks came together and jointly launched the Thailand Blockchain Community Initiative.Apart from the 14 commercial banks, the Thailand Blockchain Community Initiative will also involve seven corporations and state enterprises.
Cryptocurrencies have been the talk of the town, or rather the region in recent times, especially after bitcoin hit a peak of almost US$20,000 at the end of 2017. Cryptocurrencies are digital currencies that use encryption techniques to secure transactions and to regulate the generation of units of the currency.