Čvc 14

Wells Fargo Won’t Allow Customers To Buy Bitcoin

Wells Fargo, a huge traditional bank founded in 1852 to provide banking services, and mail delivery through the Pony Express, has recently come out stating that it does not allow its customers to purchase Bitcoin with their own funds.


Wells Fargo ‘Does Not Allow Transactions Involving Cryptocurrency.’

Wells Fargo’s decision diverges from other leading financial institutions, who are becoming increasingly pro-crypto technology. For example, Nasdaq CEO Adena Friedman believes in the value of cryptocurrencies and predicts that Bitcoin could be the “global currency of the future.”

The CME Group saw Bitcoin promise when it started exchanging Bitcoin futures contracts in December 2017.

On the other hand, after bashing Bitcoin for years, JPMorgan Chase CEO Jamie Dimon made a U-turn by regretting having called the cryptocurrency a fraud, and now JPMorgan Chase is getting ready to release its own cryptocurrency.

Most recently, during his second day of testimony in the U.S. Senate, Jerome Powell’s testimony legitimized Bitcoin and as a store of value.

In contrast, Wells Fargo is turning in the opposite direction. Specifically, Wells Fargo displays its anti-Bitcoin stance by not allowing its customers to perform transactions involving cryptocurrencies, as the tweet below shows,

This prohibition is contrary to Wells Fargo’s vision, which states, “Customers can be better served when they have a relationship with a trusted provider that knows them well, provides reliable guidance, and can serve their full range of financial needs.”

However, by forbidding a customer from performing transactions in Bitcoin, Wells Fargo is not serving its customers’ “full range of financial needs.”

Bitcoin and other cryptocurrencies are risky and volatile

In June 2018, Wells Fargo banned the purchase of Bitcoin and other crypto-assets using Wells Fargo credit cards. When the ban was announced, a company spokesperson stated,

“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency […] We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry.”

When Wells Fargo claims that Bitcoin and other cryptocurrencies are risky and volatile, it may be forgetting its prominent and infamous role during the 2008-2009 financial crisis, when markets collapsed. As a result, millions lost their homes, and millions lost their jobs, producing economic mayhem all over the world.

But astonishingly, although Wells Fargo was a contributor to one of the largest-ever financial crises, and after a series of financial scandals, U.S. taxpayers had to bail out the bank.

Wells Fargo received USD 25 billion of Emergency Economic Stabilization Act funds through a preferred stock purchase by the U.S. Treasury Department. As CBS News put it,

“Wells Fargo hit the jackpot. It was one of the first banks to get bailout funds – the biggest amount awarded in a single shot: $25 billion tax dollars.”

Nevertheless, to return to its admirable roots and to satisfy its customers’ needs, Wells Fargo should join the bandwagon of the new economic model, which requires a decentralized, borderless, and secure digital currency, such as Bitcoin.

Why do you think big banks such as Wells Fargo do not allow transactions involving Bitcoin? Let us know in the comments below!
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Images via Twitter/@Ask_WellsFargo

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Úno 10

Digital Asset Holdings Donates “Hyperledger” Name to Linux Foundation

Source: bitcoin

Digital Asset Holdings Donates “Hyperledger” Name to Linux Foundation

In a surprise move on Tuesday afternoon, Digital Asset Holdings (DAH) has decided to donate the Hyperledger trademark to The Linux Foundation. The Hyperledger project, a collaborative effort amongst technology industry giants such as IBM, Intel, Cisco, and Hitachi, along with services and banking institutions such as JP Morgan, Accenture, BNY Mellon, CME Group, SWIFT, and Wells Fargo, is creating necessary standards and protocols, which are not yet in place yet will make applications around distributed ledger technologies scalable and secure.

Also Read: Princeton Releases Free Academic Bitcoin Textbook

As the press release states:

“By creating a cross-industry open standard for distributed ledgers, virtually any digital exchange with value, such as real estate contracts, energy trades, marriage licenses, can securely and cost-effectively be tracked and traded.”

Recent interest by large banks and technology companies follows the surge of interest in 2015 from financial and regulatory circles to understand the potential of Bitcoin and Blockchain technology. Database infrastructure is at the core of creating reliable and cost efficient financial services, and the big players are starting to take a more active role in researching and experimenting with Blockchains in order to lower their costs, lower latency times, and increase data security.

Speaking to the importance of the Hyperledger initiative, Jim Zemlin of The Linux Foundation states,

“The Hyperledger Project has ramped up incredibly fast, a testament to how much pent-up interest, potential and enterprise demand there is for a cross-industry open standard for distributed ledgers.”

Use of the Hyperledger Trademark will be managed exclusively by the Governing Board of the Hyperledger Project with the approval of the Linux Foundation. One important goal of the initiative is to have alignment among participating members.

Alignment in understanding of and messaging about emerging technologies such as Hyperledger is a crucial step as the Bitcoin and Blockchain industry looks to improve its ties with more traditional financial institutions, regulatory communities and professional service firms. R3, the blockchain settlement banking consortium of over 40 financial institutions is now being joined by the likes of technology giants. The actively engaged and technically savvy Linux community should bring forth a valuable counter-perspective in the discussion around protocols and standards for Blockchains, as more traditional players have difficulty accepting the inherent secrecy these technologies are capable of enabling.

Regardless, it is important to remember that Bitcoin already falls under KYC and AML regulations as well as taxation reporting on income and capital gains to the IRS. This marriage of communities between those based primarily in Wall Street and those based in San Francisco is a fascinating cross-pollination, which will only help address uncertain legal issues moving forward.

This news also raises questions for Digital Asset Holdings (DAH). Since Blythe Masters, creator of the Credit Default Swap and formerly of JP Morgan, joined the initiative in March of last year there has been great speculation on what DAH’s first industry product may be. The company has raised more than $60 million from over 13 investors including Goldman Sachs, JPMorgan Chase & Co, Citigroup Inc, BNP Paribas SA, CME Group Inc and Accenture. Perhaps, it appears, DAH may be transitioning away from Hyperledger, or at least increasingly willing to collaborate with the technological leaders in the arena.

What are your thoughts on this move? What’s ahead for Hyperledger and Digital Asset Holdings? Can Silicon Valley and Wall Street work together? Share your thoughts below!


Image Source: Bloomberg, MediaBiz, DAH

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Digital Asset Holdings Donates “Hyperledger” Name to Linux Foundation

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Pro 29

Blythe Masters Startup Digital Asset Holdings Struggles For Funding

Source: bitcoin

Blythe Masters Startup Digital Asset Holdings Struggles For Funding

The year 2015 has been quite a significant one for Bitcoin regarding the amount of VC funding flowing into the world of digital currency. However, not every Bitcoin startup is seeing its fair share of success, despite initial excitement regarding what they want to bring to the table. Blythe Masters’ Bitcoin startup – called Digital Asset Holdings – is struggling to secure additional funding,

Also read: Samsung Pay Bringing More Competition to Bitcoin by Enabling Online Shopping in 2016

The Digital Asset Holdings Struggle Is Very Real

When a former JPMorgan Chase star banker is having a hard time securing deals with other investors for her new Bitcoin startup, things are looking rather bleak. Although it has to be said these struggles are in part caused by Blythe Masters herself, as Goldman Sachs and Citigroup found out JPMorgan was getting a better deal compared to other interested parties.

Digital Asset Holdings is looking to explore the boundaries of blockchain technology, which is of great interest to any financial institution around the world. As one would come to expect, among interested parties are other banks and financial firms, some of which are directly competing with Blythe Masters’ former employer JPMorgan Chase.

But there are other factors at play in this story as well. Despite the general interest in blockchain technology, financial players are doubtful about the solutions being worked on by Digital Asset Holdings. Blythe Masters has cobbled together most of her startup’s offering by purchasing smaller startups and companies working on the same goal.

With so much competition in the technology space right now, it is difficult for startups to stand out among other companies. Even the blockchain technology development sector is getting oversaturated at this rate, and many companies have made bold claims they have yet to back up. Investors know this process takes time, but their patience isn’t endless either.

No one doubts Blythe Masters can be a valuable addition to the world of Bitcoin and blockchain technology. Her track record at JPMorgan Chase is quite impressive, as she helped develop the credit default swap in the 1990s. Projecting this knowledge to a different breed of technology will be quite a challenge, though.

Investors Are Not Convinced About The Solution

The major thing when it comes to attracting startup funding is ensuring potential investors like the product or service being offered. In the case of Digital Asset Holdings, investors aren’t convinced the startup is providing a service that will address the real problems in the loan market, let alone improve the situation.

Furthermore, rumours are spreading as to how Digital Asset Holdings is struggling to integrate the technology they purchased from other startups into a whole and complete ecosystem. This leads to a lot of frustration among the acquired employees as well, which is not beneficial to the development of this service.

What are your thoughts on Digital Asset Holdings? Will they secure enough funding to stay in business? Let us know in the comments below!

Source: NY Times

Images courtesy of Digital Asset Holdings, Blythe Masters, Shutterstock

The post Blythe Masters Startup Digital Asset Holdings Struggles For Funding appeared first on Bitcoinist.net.

Blythe Masters Startup Digital Asset Holdings Struggles For Funding

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