Switzerland Might Open The World’s First Bitcoin Bank

While the Bitcoin is continuing its quest for mainstream adaption, there is still some major issues for most companies using it – It is very difficult to find banks to work with, even if the Bitcoin is fully legal and regulated.

This has led to some companies having to close shop as they didn’t have anywhere to do their banking needs and thus couldn’t continue their operations. It has also led to accusations of money-laundering as some companies has had to think outside the box to get their funds out.

Now this might soon be history however, as it was announced this week that a group in Switzerland is working hard on opening the world’s very first Bitcoin bank. The group has been preparing for several months, working on obtaining the necessary licenses to open up the bank.

The story has been confirmed from several people inside the Switz financial industry, saying that there has been talks with the Financial Market Supervisory Authority from the project group’s side and rumour has it that they will be applying for a license within a few weeks so they can begin their project officially.

The group, which consists of eight people, told the press that they have already found investors to invest in the Bitcoin bank and that they are also looking for a place to locate the bank if they are succesfull in obtaining a license.

So why is this so important for the Bitcoin industry? The first reason is very clear, as they would be able to offer proper banking for Bitcoin companies. The companies would no longer have to battle banks in order to get proper banking and could instead focus on growing their business.

Secondly it would be a major boost in the right direction for the Bitcoin as a whole, as it could officially distance itself from all the shady things of the past and work as a traditional company does, with all that it takes.

The different authorities would have one place to go to get information about the financials of a company and easily see if they pay the VAT, taxes and other fees as they should. Furthermore it would make it easier for companies to prove just the same things and for consumers it is also positive as one would know exactly where the company holds their funds.

It has not been released yet who the bank will be cooperating with to build their business, as they will need partners from all corners of the Bitcoin industry to open a bank. First and foremost they will need some sort of storage facility for the Bitcoins, so that they are safe at all times and secondly they will need someone to help them facilitate the Bitcoin transfers back and forward.

Overall this is very positive news for the Bitcoin industry if the group is succesfull in opening up the world’s first Bitcoin bank. It will make it easier for start-ups to embrace the cryptocurrency and thus make mainstream adaption easier in the future.

New York Stock Exchange Launching Bitcoin Index

Great news surfaced this week for all the Bitcoin lovers and enthusiasts this week, as the New York Stock Exchange (NYSE) announced that they are planning to launch a Bitcoin index. The Bitcoin index will be the first exchange-calculated and disseminated Bitcoin index in the world.

The Bitcoin index will be launching today and will be representing the USD value of a Bitcoin based upon the value it actually trades at on selected Bitcoin exchanges, which has been evaluated and approved to the high standards of the NYSE.

“Bitcoin values are quickly becoming a data point that our customers want to follow as they consider transacting, trading or investing with this emerging asset class,” said NYSE Group President Thomas Farley. “As a global index leader and administrator of ICE LIBOR, ICE Futures U.S. Dollar Index and many other notable benchmarks, we are pleased to bring transparency to this market. By combining our technology infrastructure with our expertise in index calculation and data management, we will continue to launch complementary products based on our rigorous standards and proprietary index methodology.”

The NYSE Bitcoin index will initially receive its data from Coinbase, one of the leading online Bitcoin exchanges in the US and the world, where NYSE made an investment earlier this year in a public funding round.

The NYSE Index Committee will be overseeing the rules and methodology behind the index to ensure that it actually reflects the value and the nature of the Bitcoin market. They will also be reviewing the data sources for the index calculation process when new exchanges that lives up to the high standards, rules, liquidity, transparency and governance are found and accepted as a “provider”.

The NYSE Bitcoin index is expected to grow significantly within a short period of time, being a product that many investors has been asking for. New features and indices will be introduced to the Bitcoin index over time, showing that they believe in the future of the Bitcoin.

The index has been dubbed “NYXBT” and will be the first of many indexes to be created, but no further information was given about the later indexes that will be launched.

This is huge news for the Bitcoin and for everyone who uses it for trading, purchasing or simply as a money transfer service. This gives a huge push in the right direction for mainstream adaption and with it being as secure as possible, it will show people the true value of the Bitcoin and give an incentive towards investing, buying or trading Bitcoins in the future.

“NYXBT utilizes a unique methodology that relies on rules-based logic to analyze a dataset of matched transactions and verify the integrity of the data to ultimately produce an objective and fair daily value for one bitcoin in U.S. Dollars as of 16:00 London time.” A press release from the NYSE reads.

Perhaps more stock exchanges around the world will integrate a similar index in the future, spreading the Bitcoin to more markets and thus increase the overall need for Bitcoins and push the value back to where it should be.

Denmark Aiming For Cash-Less Society – Will Bitcoin Play A Role?

Denmark is a country well-known for several things. First and foremost they have been awarded as the happiest country in the world, but they are also well-known for being very well educated and having a great economy – one of the best in the world per capita.

A society like theirs – and the rest of Scandinavia – is very pro-technology and is always looking for ways to make things more simple or cheaper compared to the way things are done today.

One of the things the country’s government is currently looking into is to make Denmark cash-less long-term, starting with a short-term plan where cash no longer would be accepted at restaurants, clothing retailers as well as on petrol stations.

While the idea is not yet approved, it seems that it may be. If so, it is just the first step on the way to making Denmark cash-less completely. Here’s where things gets interesting, because if that happens, can the Bitcoin play an important role?

Today most things are being paid with credit/debit card in Denmark, as well as through a mobile payment system, allowing people to pay and transfer funds directly from their mobile device. The transition towards not using cash at all wouldn’t be that hard for most Danish people, but do they wish to do so?

The problem in a cash-less society is privacy. There will be no privacy for anyone in a cash-less society, where the banks and government can track every single money transfer, payment or whatever else one does with funds.

Here’s where the Bitcoin comes into the picture. If there will no longer be cash to be used “anonymously”, where will people turn if they are not interested in the bank and the government knowing what they spend their funds on? That’s right, the Bitcoin.

The Bitcoin is already somewhat popular in Denmark, with many people using Bitcoins to gamble online, as well as pay in the few places that currently accepts it. The country also have three Bitcoin ATM’s, all located in the capital of Copenhagen.

However the Bitcoin may be boosted significantly when people finds out about the Bitcoin and its anonymous nature. Denmark has decided for now not to regulate the Bitcoin, allowing people to spend them as they want without having to be tracked by anyone.

So with one of the strongest economies in the world, the Bitcoin may get a significant boost in the right direction from 2016 already, when people wants to be able to spend money without being tracked.

But it will not only be good for the general public if the Bitcoin gets a boost in Denmark, as the shops who will be forced to accept credit card payments will want to have a cheaper alternative. Credit card fees are extremely high and cuts directly into any profit margin, while the Bitcoin is free to accept and costs almost nothing in general.

Coinify, a Danish Bitcoin exchange and Bitcoin payment system provider, are ready to provide shops, restaurants and whatever else with the opportunity to accept Bitcoins and convert the funds into fiat-money. This way we all win – There will be no traceless cash and we will all still have the possibility to pay in an anonymous way, whilst the shops saves money in fees.

You Can Now Buy Gold In A Bitcoin-Like System

The road to mainstream adoption of the Bitcoin is a long and hard one, but the Bitcoin is seeing global adaption every single day for the payment system as well as for the Blockchain technology. Now BitGold, a site allowing people to buy and sell gold peer-to-peer, announced it will be using the Bitcoin technology for their site.

BitGold will be using the Bitcoin technology to offer free vault storage with a payments-network attached, enabling a banking platform for gold. BitGold has been in beta mode for a few months, but has finally been made available for the general public, fully insured with no storage fees and lots of payment methods.

BitGold received $3.5 million in funding in December of 2014 to take their platform to the next step, with the funding round being mainly funded by PortVesta Holdings, PowerOne Capital and Soros Brothers Investments.

“We are excited to unveil the BitGold platform, an architecture and technology that’s taken years of careful planning and execution, which now allows users to seamlessly use gold again as a store of value and medium for payments. As a global asset, gold is recognized in nearly every culture as a long term protector of value, but has been a poor medium of exchange compared to the advances in money technology.” said Co-founder and CEO, Roy Sebag.

“We felt that gold needed the modernization and mobilization that’s now happening in the global payments revolution. We have built a financial services platform that is as close to being counterparty-free as possible, enabling economic transactions within the existing global financial system to be settled in full reserved gold bullion.” He added.

BitGold is a third-party provider who doesn’t take responsibility for deposits and such, but simply provides a service-platform for those interested in buying and selling gold with others around the globe in a safe environment, where all transactions are accounted for.

Simply put, the customers can store their gold where they wish in the world and then buy more or sell some through the platform. The gold will be easy to acquire and access through the platform and funds will be instantly accessible.

“At BitGold we have a mission to democratize global access to gold for stable savings, and to make gold useful in micro-transactions using the internet or mobile phones,” said co-founder and Chief Strategy Officer, Josh Crumb.

“No matter where you live in the world, gold has held value over time relative to costs like food and energy that we require as humans, making it one the most important savings tools for most of the human population. We believe that by broadening access to a commodity-money that holds value we can help combat the rise in wealth inequality and the short-termism.” Crumb added.

Seeing a company using the Bitcoin technology shows how far the Bitcoin industry has come as whole, with more industries being inspired to use the technology as well. This could lead to the Bitcoin gaining some more mainstream acknowledgement, which can only benefit the Bitcoin as a whole in the long run.

It will be interesting to see if the concept will become a success in the gold industry or if it is ahead of its time, similar to what the Bitcoin is currently seen by many.