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Everything you need to know about the emerging market currency collapse

Posted on 05 February 2014 by VRS  |  Email |Print

Here we go again. First, money poured into emerging markets when it looked like they offered juicy returns. Then it poured out after they didn’t. Currencies are collapsing. Stock markets are falling. And central banks are sacrificing the real economy to save the exchange rate.
We’ve seen this movie before. It was called the East Asian financial crisis, back in 1997. But, for once, the sequel won’t be worse than the original. Emerging markets don’t have enough foreign-money debt this time around to make their falling currencies much of a concern. What is a concern is whether their central bankers realize this………………………………………..Full Article: Source

Independence currency plan ‘demolished’ - Osborne

Posted on 05 February 2014 by VRS  |  Email |Print

Scottish independence: Chancellor George Osborne has claimed that the recent intervention by the Bank of England Governor Mark Carney has “demolished” the SNP’s arguments that an independent Scotland could continue in a sterling zone with the rest of the UK.
In a hardening of his position against a currency zone, Mr Osborne told the Lords economic affairs committee that the “assertions made by the SNP are simply not credible” on Scotland being able to keep the pound or have a share in the Bank of England………………………………………..Full Article: Source

Ukraine currency peg defence under threat

Posted on 04 February 2014 by VRS  |  Email |Print

Ukraine’s central bank may be giving up its defence of the country’s currency peg in order to conserve foreign exchange reserves depleted by debt repayments.
Since a big devaluation in 2009, policy makers had kept the hryvnia relatively stable against the dollar, but with Russia threatening to delay financial aid until it sees a new government formed, that policy is coming under increasing strain………………………………………..Full Article: Source

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Currency black market shows limits of Egypt’s recovery

Posted on 04 February 2014 by VRS  |  Email |Print

Egypt’s central bank has taken extraordinary steps to prop up its currency and curb a black market in foreign exchange - but in back alleys and money changing shops around the country, illicit dealing continues to thrive.
This stubborn survival shows the limits of the economic recovery since Islamist President Mohamed Mursi was ousted last July, despite inflows of billions of dollars in aid from governments in the Gulf………………………………………..Full Article: Source

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Latin American currencies depreciate to lowest level since 2003

Posted on 04 February 2014 by VRS  |  Email |Print

Latin American currencies fell, sending an index tracking the region’s foreign-exchange rates to the lowest since 2003, as manufacturing gauges declined in China and the U.S., the region’s biggest trading partners.
The Bloomberg JP Morgan Latin America Currency Index, which tracks the region’s six most-traded currencies including Brazil’s real and Mexico’s peso, fell 1 percent to 89.39 as of 3 p.m. in New York, the lowest closing level since March 2003. Colombia’s peso sank 1.5 percent, while Mexico’s currency fell 1.3 percent………………………………………..Full Article: Source

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Bitcoin still a hold despite shrinking volume

Posted on 04 February 2014 by VRS  |  Email |Print

To the extent that a user mines Bitcoin and uses the Bitcoin solely for the user’s own purposes and not for the benefit of another, the user is not an MSB under FinCEN’s regulations, because these activities involve neither “acceptance” nor “transmission” of the convertible virtual currency and are not the transmission of funds within the meaning of the Rule.
In other words, if you mine Bitcoins for your own account, you’re not under regulations for money transmitters. The second ruling offers some insight as to whether companies investing in Bitcoin are considered money transmitters:……………………………………….Full Article: Source

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Currency crisis at Chinese banks ‘could trigger global meltdown’

Posted on 03 February 2014 by VRS  |  Email |Print

A rise in foreign funding at China’s banks poses a threat for international lenders. The growing problems in the Chinese banking system could spill over into a wider financial crisis, one of the most respected analysts of China’s lenders has warned.
Charlene Chu, a former senior analyst at Fitch in Beijing and now the head of Asian research at Autonomous Research, said the rapid expansion of foreign-currency borrowing meant a crisis in China’s financial system was becoming a bigger risk for international banks………………………………………..Full Article: Source

Currency wars loom as capital flows expose the weak

Posted on 03 February 2014 by VRS  |  Email |Print

Will the emerging market rout be different this time? The fear is it won’t. Defending a currency is a tricky business. Take Thailand in 1997, where massive overspending left it with a huge current account deficit and high interest rate, inflated to protect a currency pegged to the dollar.
But markets are never forgiving and speculators soon attacked the baht, believing poor economic fundamentals left the country vulnerable to shocks. Soon, much of Asia was knocking on the International Monetary Fund’s door and the contagion quickly spread. Russia was next, followed by perennial basket-case Argentina and even Brazil………………………………………..Full Article: Source

England must reject currency union with Scotland

Posted on 31 January 2014 by VRS  |  Email |Print

Mark Carney, governor of the Bank of England, delivered home truths in Edinburgh this week. The desire of the Scottish government to remain in the sterling area would, he stressed, sharply curtail Scotland’s fiscal and financial independence. What Mr Carney did not note was that the rest of the UK must also have a say in any union.
As the governor stated, arrangements “would be a matter for the Scottish and UK parliaments”. But, as the person responsible for monetary stability, he has a duty to advise on the implications………………………………………..Full Article: Source

Emerging market currency falls in graphs

Posted on 31 January 2014 by VRS  |  Email |Print

Emerging markets are experiencing the worst rout in five years, with their currencies plummeting against the dollar. Here we take a look at those countries most exposed to risk.
Emerging markets are experiencing the worst rout in five years and almost all emerging market currencies have depreciated further against the dollar as the US Federal Reserve winds down its massive $85bn-per-month stimulus………………………………………..Full Article: Source

Sell-off in EM currencies continues

Posted on 30 January 2014 by VRS  |  Email |Print

The sell-off in emerging market currencies intensified on Wednesday despite a string of surprise rate rises by central banks as investors warned policy makers would need to take tougher action to restore confidence.
The rally that followed the dramatic midnight rate hikes by Turkey’s central bank fizzled out as analysts said monetary policy had not been tightened as much as initially thought. South Africa’s central bank also shocked markets by raising rates – but the rand continued to plunge after policy makers presented it as a one-off move that would not change its overall stance on inflation………………………………………..Full Article: Source

SNP accept currency union means loss of powers

Posted on 30 January 2014 by VRS  |  Email |Print

Scottish independence: The Scottish Government last night admitted it would have to “pool” sovereignty with the rest of the UK if it wanted to keep the pound after independence. The admission came after Bank of England Governor Mark Carney warned an independent Scotland would have to surrender key economic levers to join in a currency union.
It is understood the UK authorities could retain control over interest rates and exchange rates, and that limits could be applied to taxation and spending………………………………………..Full Article: Source

How Argentina’s currency crisis will hurt Brazil

Posted on 30 January 2014 by VRS  |  Email |Print

On January 22, the Argentina peso, already one of the weakest currencies on the planet, went from 6 to one to the dollar to over 7 to one the next day. It’s now 8.01 to the dollar as foreign reserves dwindle, and another commodity-led economy struggles in Latin America.
The country’s rainy day fund, the ubiquitous foreign cash reserves held by nearly every foreign nation, has declined by 20% in the last month and now stand at around $34 billion. Compare that to their rival Brazil’s foreign currency reserves, which are well over $300 billion. ……………………………………….Full Article: Source

The US is going to be a big winner in this currency crisis

Posted on 29 January 2014 by VRS  |  Email |Print

Emerging markets are again being whipsawed by the two largest economies in the world. The surging Chinese economy, a large contributor to world growth in recent years, shows signs of cooling. And with the US economy firming up, the Federal Reserve has started cutting back on its bond-buying programs.
The change in the global economic and financial climate is prompting international investors to take a critical look at their investments in emerging markets, and don’t like what they’re seeing. For one thing, economic growth is slowing in many of these countries, due to economic mismanagement and political uncertainty………………………………………..Full Article: Source

Argentina peso crisis: Testing times ahead

Posted on 28 January 2014 by VRS  |  Email |Print

One day, Argentines went to sleep with a plummeting peso and tight exchange controls. The next day, the country awoke to a radical change in the government of Cristina Fernandez de Kirchner’s foreign currency policy.
After more than two years of increasing restrictions on the purchase of dollars, like taxing credit card transactions abroad or restricting online commerce on foreign websites, Mrs Kirchner’s chief of staff, Jorge Capitanich, announced that buying dollars for savings accounts would be legal again………………………………………..Full Article: Source

‘Mise-ruble?’ Russia’s currency hits 5-year low

Posted on 28 January 2014 by VRS  |  Email |Print

The ruble has taken a spectacular dive in 2014, so far this year losing about 10 percent. However, the Central Bank and government think the volatility isn’t a concern, adding that the currency is poised to fall further.
On Monday the euro reached a historical high of 47.64, with the dollar close to 35, according to the data from the Central Bank of Russia (CBR). High volatility has sent the ruble against the euro-dollar basket to lows that were last seen in February 2009………………………………………..Full Article: Source

Emerging markets bid to reassure Davos amid currency woes

Posted on 27 January 2014 by VRS  |  Email |Print

Officials from top emerging market economies, the star performers of recent years, were at pains to reassure the World Economic Forum of their countries’ stability amid turmoil in the currency markets.
With the Argentinean peso plunging 14 per cent in two sessions of panic selling and the Turkish lira hitting all-time lows amid political chaos, the stability of emerging markets sparked concern among the movers of shakers at the Davos ski resort………………………………………..Full Article: Source

RBA finds currency battle tough

Posted on 27 January 2014 by VRS  |  Email |Print

The mighty Aussie dollar was floated 30 years ago as part of the new free-market orthodoxy that swept through the developed world. But now the Reserve Bank thinks free markets have gone too far.
Unfortunately, the currency genie is out of the bottle. It’s not going back and it is getting ever more difficult to control………………………………………..Full Article: Source

Currency markets: Don’t cry just for Argentina

Posted on 24 January 2014 by VRS  |  Email |Print

Today’s plunge in the Argentine peso was the biggest since the devaluation of 2002 following Argentina’s debt default. The peso fell from 6.92 per dollar yesterday to 7.88, a decline of 12%; and at times today the fall was even bigger, with the peso at one point reaching 8.24, according to Bloomberg.
The collapse came as Argentina’s central bank stopped intervening in the currency markets. According to Neil Shearing of Capital Economics, a London-based consultancy, the country’s foreign-exchange reserves fell from a peak of $47 billion in March 2011 to a seven-year low of $25 billion in November 2013. He says that the price of defending the peso had become too great and that the Argentine authorities “have bowed to the inevitable”………………………………………..Full Article: Source

India withdraws old currency notes in ‘black money’ move

Posted on 24 January 2014 by VRS  |  Email |Print

The Reserve Bank of India (RBI), the country’s central bank, says it will withdraw all currency notes printed prior to 2005 from 31 March. The move is being seen as an attempt to curb the circulation of “black money” - cash that has not been declared or taxed.
According to some estimates, India’s underground economy accounts for 50% of its gross domestic product (GDP). The RBI said consumers will be able to exchange old notes at retail banks………………………………………..Full Article: Source

Robust demand might see a turn in commodities rescue the loonie

Posted on 23 January 2014 by VRS  |  Email |Print

Canada’s national anthem celebrates “the true north, strong and free”. And, if not exactly free, its currency is also a lot cheaper than it was. Yesterday, the Canadian dollar, the loonie, weakened to more than C$1.10 to the US dollar for the first time since 2010, after falling 17 per cent in less than three years.
The bet against the loonie looks crowded, but it is only one of a group of widely disliked investments that include the Australian dollar, emerging markets and mining shares. All are fuelled by commodities, and it has become received wisdom that the commodity supercycle – a decade in which prices soared – is over………………………………………..Full Article: Source

Venezuela announces changes to foreign currency system

Posted on 23 January 2014 by VRS  |  Email |Print

Venezuela has announced measures to address its foreign currency crisis and boost the economy. Oil Minister Rafael Ramirez says Venezuelans travelling abroad will no longer be allowed to obtain foreign exchange at the official rate of 6.3 bolivars per US dollar.
They will have to pay a higher rate, determined by weekly currency auctions. The official rate will be used only for essential goods, such as medicine, industrial supplies and food………………………………………..Full Article: Source

End of physical currency a ‘reality’, says Visa

Posted on 23 January 2014 by VRS  |  Email |Print

The end of physical notes and coins is becoming a ‘reality’ as the use of new technologies expands, according to Visa. Cash is becoming increasingly irrelevant as physical coinage and notes make way for contactless payments, according to Visa.
The card payments operator said the displacement of cash was becoming a “reality”, pointing to a fourfold increase in Britain in the last year of contactless transactions………………………………………..Full Article: Source

Robust demand might see a turn in commodities rescue the loonie

Posted on 22 January 2014 by VRS  |  Email |Print

Canada’s national anthem celebrates “the true north, strong and free”. And, if not exactly free, its currency is also a lot cheaper than it was. Yesterday, the Canadian dollar, the loonie, weakened to more than C$1.10 to the US dollar for the first time since 2010, after falling 17 per cent in less than three years.
The bet against the loonie looks crowded, but it is only one of a group of widely disliked investments that include the Australian dollar, emerging markets and mining shares. All are fuelled by commodities, and it has become received wisdom that the commodity supercycle – a decade in which prices soared – is over……………………………..Full Article: Source

Currencies: All go for the greenback?

Posted on 22 January 2014 by VRS  |  Email |Print

Will this be the dollar’s year? The currency has been advancing steadily, if unspectacularly, so far in 2014, rising for six straight trading days, according to Bloomberg. In recent years, major currencies have resembled a battle of the seven-stone weaklings, with traders having good reasons to hate them all; the dollar because of quantitative easing, the euro because of break-up fears and the yen and Swiss franc because of aggressive intervention.
But the negative arguments on the dollar are melting away. The Fed has moved to taper QE; the US economy and stockmarket look robust, attracting portfolio inflows, the trade deficit has shrunk; and Congress seems unlikely to opt for another government shutdown over the deficit……………………………..Full Article: Source

U.S. dollar up vs. Canadian on Fed taper prospects

Posted on 22 January 2014 by VRS  |  Email |Print

The U.S. dollar rose against the Canadian dollar on Tuesday as a lack of major economic data turned the focus to a potential further reduction in monetary stimulus at the next Federal Reserve meeting.
Investors also looked ahead to a monetary-policy decision from the Bank of Canada due Wednesday. The Fed is likely to reduce its monthly bond purchases, part of its efforts to stimulate the economy, to $65 billion at the end of its two-day meeting on Jan. 29……………………………..Full Article: Source

Bitcoin is not a currency, it’s a commodity, says Finland’s central bank

Posted on 21 January 2014 by VRS  |  Email |Print

Bitcoin doesn’t meet the definition of a currency or even an electronic payment form in Finland, where the central bank has instead decided to categorize the software as a commodity.
“Considering the definition of an official currency as set out in law, it’s not that. It’s also not a payment instrument, because the law stipulates that a payment instrument must have an issuer responsible for its operation,” Paeivi Heikkinen, head of oversight at the Bank of Finland in Helsinki, said……………………………………….Full Article: Source

Five reasons why Bitcoin is the most dangerous currency in the world

Posted on 21 January 2014 by VRS  |  Email |Print

As HMRC reviews the tax treatment of bitcoin, Rebecca Burn-Callander explores why the virtual currency is the most dangerous in the world. Bitcoin is a virtual currency, or “cryptocurrency”, that first appeared on the radar in 2009 after an anonymous creator “buried” 21 million coins online.
Coins can only be accessed, or “mined” by solving complex computing problems. As each block of coins gets mined, the problems become harder and harder, requiring increased computing grunt. This limits the supply of the coins………………………………………..Full Article: Source

Ukraine’s sliding currency

Posted on 21 January 2014 by VRS  |  Email |Print

How long can Kiev hold the hryvna? As fastFT reports, the currency has edged down for nine straight days to 8.37 to the US dollar, its weakest since September 2009.
It looks like a managed devaluation, of sorts. The exchange rate is controlled by the central bank so its slide shouldn’t be seen as a direct reaction to the turmoil on Kiev’s streets. But monetary policy can be almost as haphazard as the government’s reaction to opposition protesters………………………………………..Full Article: Source

What are hedge funds’ top five currency bets for 2014?

Posted on 20 January 2014 by VRS  |  Email |Print

From Reuters over the weekend, a guide to the top 5 currency bets this coming year. Nothing of much surprise in the list. Here are five top bets that hedge funds are pursuing for 2014: 1. Long USD/JPY:
“The whole driver (this year) is going to be yen. If you’re only a USD guy and you’re … only in euro/dollar, you’re going to get a whole lot of nothing,” said Aaron Smith, managing director at currency hedge fund firm Pecora Capital, who said the yen was his heaviest weighted currency pair………………………………………..Full Article: Source

Hedge funds’ top five currency bets for 2014

Posted on 20 January 2014 by VRS  |  Email |Print

Hedge funds think 2014 could be the year their currency bets finally pay off, after getting burned last year on trades ranging from the Australian dollar to the greenback.
The influence of central banks and competition among nations to weaken their currencies to boost economic growth made 2013 a year to forget for many funds. The average macro currency fund was up just 0.42 per cent in the 11 months to November, according to Hedge Fund Research………………………………………..Full Article: Source

A little case of commodities/FX fragmentation

Posted on 17 January 2014 by VRS  |  Email |Print

Commodities may be soft in USD terms, but for anyone living in South Africa or Turkey they are back to the record highs of the ominous summer of 2008. In contrast, in PLN and RUB they are as low as they have not been since 2010.
This divergence will have a significant impact on growth and inflation in 2014: weak pricing power means that higher commodity prices act as a tax on demand, slowing down growth and thus ultimately reigning in current account deficits and inflation. For now, markets focus primarily on the short-term inflation uplift, but we believe FX pass-through will prove self-deflating, and rebalancing will materialize………………………………………..Full Article: Source

Currency dealers told Bank of England of fix trading in 2012

Posted on 17 January 2014 by VRS  |  Email |Print

Bank of England officials discussed trading practices around key foreign-exchange benchmarks with senior currency dealers 18 months before regulators opened formal investigations into alleged rate-rigging.
Records of a meeting in April 2012 released yesterday by the central bank show dealers discussed the rules they were subject to when trading close to the times when key market benchmarks, such as the WM/Reuters rates, are set………………………………………..Full Article: Source

Czech central bank to keep currency weaker through 2014

Posted on 17 January 2014 by VRS  |  Email |Print

The Czech central bank intends to keep the country’s currency weaker at just above 27 korunas to the euro through the end of the year, but after that the bank won’t prevent it from strengthening, the bank’s governor said late Thursday.
“As soon as that [exchange-rate] target is removed, it won’t bother us if the [koruna's] exchange range firms,” Miroslav Singer said at a conference. There have been questions about the central bank’s exit strategy from the exchange-rate target, of close to 27 korunas to the euro, set on Nov. 7………………………………………..Full Article: Source

Commodity super-sad cycle is a pain in the Canadian (Dollar)

Posted on 16 January 2014 by VRS  |  Email |Print

Yes, hard for most people who have ONLY lived through the markets with a strong commodity foundation to believe that the Canadian Dollar was once trading at 1.60/USD. Hockey players sure remember, and they once were paid a premium to play north of the border despite this being the land of hockey royalty (in my view).
Today the Canadian Dollar is off another 50bps and has weakened against the US Dollar almost “3 big figures” since the start of the year………………………………………..Full Article: Source

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Canada minister says currency dive offers opportunity

Posted on 15 January 2014 by VRS  |  Email |Print

Canada’s manufacturing sector is happy about the weakening of the country’s currency, which presents “remarkable opportunities,” the government’s junior finance minister said on Tuesday, suggesting Ottawa is not upset by the slide.
“I think … the manufacturing sector (is) quite pleased that we have a dollar that the value is down from what it was a number of months ago,” Kevin Sorenson, secretary of state for finance, told reporters after giving a speech in Toronto………………………………………..Full Article: Source

Turkish currency drops to three lira to euro

Posted on 15 January 2014 by VRS  |  Email |Print

The Turkish currency sank to a record low against the euro, hitting the psychologically key level of three lira to the euro as the country remained embroiled in a deep political crisis.
The euro touched 3.0013 lira in early afternoon trading before closing at 2.9883 while the Turkish currency was at 2.1832 to the dollar. The Istanbul stock market also lost ground, sliding 0.02 percent to 68,072.50 points………………………………………..Full Article: Source

Russia to halt targeted daily currency interventions

Posted on 14 January 2014 by VRS  |  Email |Print

Russia’s central bank is to cease daily targeted interventions in foreign exchange markets, allowing for a more flexible exchange rate as the central bank moves towards a free float of the currency by the end of the year.
The rouble fell 0.9 per cent at 33.3050 to the dollar and slipped 0.4 per cent against the central bank’s dollar-euro basket after the announcement, which investors took as a signal that the authorities would welcome a further weakening in the exchange rate………………………………………..Full Article: Source

Currency depreciation in Latin America: Taper jam

Posted on 14 January 2014 by VRS  |  Email |Print

Brazil’s number-crunchers delivered an unpleasant surprise on January 10th, when they revealed that the year-end inflation rate came in at 5.91%. That was higher than market expectations, and higher than Dilma Rousseff, her eyes fixed on a presidential election in October, would have wanted, too.
Asked what lay behind the rises, Alexandre Tombini, the central-bank president, pointed, among other things, to the real’s depreciation as a cause of stubbornly high inflation………………………………………..Full Article: Source

Iran postpones currency redenomination

Posted on 13 January 2014 by VRS  |  Email |Print

An Iranian central bank official says that Iran has once again delayed plans to revalue the Iranian riyal by eliminating some zeros from the country’s currency, although the option remains on the table.
“The issue will be included in the central bank’s serious agenda as soon as the economic situation has improved and the inflation reduced,” said Akbar Komijani, the Central Bank of Iran’s economic deputy, in an interview with the Mehr news agency published on Sunday………………………………….Full Article: Source

Economists fear that a strengthening US currency spells calamity once again for emerging markets

Posted on 13 January 2014 by VRS  |  Email |Print

For a brief moment in 2007 Gisele Bündchen became the fetching face of dollar doomsayers, when her agent revealed that the Brazilian supermodel would prefer to be paid in euros rather than the struggling US currency.
At the time it seemed like a sensible move. Dollar-bashing was all the rage. Even rap stars waved wads of euros instead of the usual “Benjamins” – $100 bills. But after the onset of the financial crisis in 2008, the dollar defied the sceptics as investors swallowed misgivings and dived into everyone’s default safe place: US government bonds. Even as the Federal Reserve printed $2.5tn to prevent a financial collapse, the dollar stayed stable………………………………….Full Article: Source

India: Corporates join bitcoin-brigade to lobby for digital currency

Posted on 13 January 2014 by VRS  |  Email |Print

As more bitcoin operators shut shop in India on fears of regulatory and enforcement actions, some large corporates are believed to have begun lobbying hard with regulators and government departments in favour of ‘digital currency’.
While none of these groups are as yet into bitcoin business, some of them may be interested in setting up their own ‘virtual currency’ platforms, a senior official said………………………………….Full Article: Source

Asia currencies in 2014: Survival of the fittest

Posted on 10 January 2014 by VRS  |  Email |Print

Weakness in Asian currencies this year amid an unwinding of U.S. monetary stimulus is likely to be broad and not just confined to countries with large-current account deficits, currency strategists say.
U.S. economic indicators over the past week suggest the world’s biggest economy is in better shape than financial markets had anticipated. That keeps the spotlight on the unwinding of the Federal Reserve’s massive stimulus program that starts this month……………………………..Full Article: Source

Macquarie as best forecaster sees Yen, Aussie drops: Currencies

Posted on 10 January 2014 by VRS  |  Email |Print

Macquarie Group Ltd., which has ousted Canada’s Desjardins Group as the world’s most accurate currency forecaster, is telling clients that its top picks for 2014 call for declines in Australia’s dollar and the yen.
Australia’s largest investment bank sees the Aussie sliding about 8 percent by Dec. 31 and the yen falling more than 5 percent as central banks in the two nations add to monetary stimulus that have sent their currencies to the lowest levels in at least three years……………………………..Full Article: Source

Why China and India are cracking down on the virtual currency

Posted on 09 January 2014 by VRS  |  Email |Print

The bitcoin saga took an unpleasant turn last month, when China’s central bank banned financial institutions from dealing in the virtual currency. Bitcoin was enjoying a surge of popularity in the country. By the end of November, Chinese exchanges were responsible for almost two-thirds of worldwide traffic. The central bank’s decision sent the currency tumbling.
Then Indian regulators joined the fray. The Reserve Bank of India issued a public warning on the dangers of bitcoin. India’s largest exchange was promptly shut down, and its operator raided by local authorities………………………………………..Full Article: Source

Kanye West’s lawyers attempt to block Coinye currency

Posted on 09 January 2014 by VRS  |  Email |Print

Cryptocurrency creators have reportedly received a cease-and-desist letter from the rapper’s law firm, accusing them of infringing on West’s trademark. Kanye West has made attempts to shut down the virtual currency that uses his name. The anonymous programmers behind the Bitcoin alternative Coinye West have reportedly received lawyers’ letters accusing them of infringing on the rapper’s trademark.
Billed as a “PROPER and FAIR … [currency] for the masses”, Coinye West was due to get its official launch on 11 January. But after receiving a cease-and-desist letter from West’s law firm, Pryor Cashman, the cryptocurrency’s creators pushed forward the release, issuing the first coins last night………………………………………..Full Article: Source

Bitcoin me: How to make your own digital currency

Posted on 08 January 2014 by VRS  |  Email |Print

Move over Dogecoin: the Herncoin is here. But what can making your own currency teach you about the world of bitcoin? Bitcoin may have become a thing of fascination for the media very recently, but the digital currency actually celebrated its fifth birthday this month as its value hovered at around $1,000 per coin.
Bitcoin was never intended to be the one cryptocurrency to rule them all, because anyone can make their own version of it. The code which underpins the currency is released under what’s known as an open-source licence. Anyone can use it themselves, and alter any aspect they want, in order to create a whole new currency………………………………………..Full Article: Source

Bitcoin: Digital currency - making manual

Posted on 08 January 2014 by VRS  |  Email |Print

Bitcoin, the recent center of the media attention has celebrated its fifth anniversary this month marking its value around $1,000 per coin.Bitcoin was never meant to monopolze the crypto-currency niche. What is more, the code was released under an open-source license, which allows anyone use it or alter its aspects to cretae better version or a new currency altogether.
As a result, an entire «family» of bitcoin-based crypto-currencies have emerged in the past years. The most promising of them, Litecoin, was created in 2011, as a response to bugs in the original Bitcoin protocol………………………………………..Full Article: Source

Designing U.S. currency to prevent counterfeiting

Posted on 08 January 2014 by VRS  |  Email |Print

With the ink barely dry on the redesigned $100 bills released in October, Dan Humphrey and colleagues at the Bureau of Engraving and Printing (BEP) are already exploring new U.S. currency security features for the future.
“The primary reason to redesign the currency is to deter and prevent counterfeiting,” said Humphrey, a program manager in product development. “We’re now working on what technology platform and design to use next time around. We are constantly looking for ideas.”……………………………………….Full Article: Source

Competitive devaluation through currency fragmentation

Posted on 07 January 2014 by VRS  |  Email |Print

We promised at the end of our previous post that we would qualify the economic case for the introduction of “free money” with some direct references to Willem Buiter, Citi chief economist and former BoE MPC member.
So here follow some of his observations on all things “money” during a liquidity trap, as plucked from his papers on seigniorage, the nature of irredeemable fiat money, numerairology and the use of virtual currencies to break through the ZLB from the last decade or so………………………………………..Full Article: Source

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