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Could Bitcoin Become Scotland’s Official Currency?

Posted on 17 September 2014 by VRS  |  Email |Print

With Thursday’s Scottish independence referendum too close to call, opponents of an independent Scotland have been stressing the would-be country’s lack of a reliable currency. An independent Scotland could either keep using the British pound and lose control of its monetary policy, join the eurozone’s well-known squabbles, or create a new national currency that’s almost certain to be weak. But there’s an intriguing fourth option: adopting an online crypto-currency such as Bitcoin.
Scotland actually has some historical experience with this sort of thing: Instead of relying exclusively on the British pound in the 18th and 19th centuries, many Scottish banks issued their own currencies—a fact noted by Guy Debelle, the assistant governor of Australia’s central bank, at a recent conference on digital currencies in London. ……………………………………..Full Article: Source

The real problem for commodity nations is currency, not prices: Russell

Posted on 16 September 2014 by VRS  |  Email |Print

The pressing problem for some resource-rich countries isn’t that prices for commodities have dropped sharply, it’s that their currencies haven’t dropped in tandem. The plight of Australia and Indonesia, the major commodity exporters in the Asia-Pacific region, is driven home by the fact that their currencies have actually gained against the U.S. dollar this year, even as commodity prices have plunged.
This is a body blow to earnings in those countries and defies both economic logic and precedent, which should have seen the Australian dollar and Indonesian rupiah start to drop as revenue from resource exports declined………………………………………..Full Article: Source

Scottish currency dilemma causes pound-ing headache

Posted on 16 September 2014 by VRS  |  Email |Print

For all the recent scaremongering about the viability of an independent Scotland, it’s easy to understand why the chance to reclaim a country’s sovereignty offers its citizens an exciting prospect. Scotland is, after all, culturally distinct from the rest of the British Isles.
And for those Scots aged 16 and 17, who will be given the vote for the first time, the opportunity of creating their own Scottish identity after three centuries of largely English rule must certainly have its own idealistic appeal………………………………………..Full Article: Source

The Return of the Currency Wars

Posted on 16 September 2014 by VRS  |  Email |Print

When a country’s economy grows too slowly, the standard short-term remedies are to increase government spending, cut taxes or reduce interest rates. When none of those options is available, governments often resort to pushing down their currencies to make their exports more attractive to foreigners (and, these days, to push up import prices and thus bring inflation back up to desired levels).
When the world economy is sputtering, and every big country increases spending, cuts taxes and reduces interest rates, the global economy benefits from the increase in demand. That’s the story of 2009………………………………………..Full Article: Source

Currency question at heart of Scottish debate

Posted on 15 September 2014 by VRS  |  Email |Print

In for a penny, in for a pound. There will be no going back if Scotland votes for independence from the United Kingdom on September 18. Opinion polls showing this may happen have prompted investors to sell off the British pound. If a knockout blow is dealt to Scotland’s 307-year union with England, that selling could accelerate as the UK plunges into a constitutional crisis.
The fate of the pound, which is also known as sterling and is one of the most tangible links of the union, will be front and centre in any separation proceedings, as it has been during the campaign………………………………………..Full Article: Source

India: How key commodities swing with currency movements

Posted on 12 September 2014 by VRS  |  Email |Print

Though demand-supply is the prime factor influencing commodity prices, any variation in the value of currency will also have a telling effect on prices . Since India meets its demand for various products through imports, a weak rupee will escalate its landed cost and apparently, that will have an effect on retail prices as well.
Apart from non-agriculture commodities such as gold, silver, crude oil and base metals, the edible oil complex and cotton are the other commodities that are largely influenced by a weaker rupee………………………………………..Full Article: Source

Ecuador’s ‘digital currency’ explained

Posted on 12 September 2014 by VRS  |  Email |Print

40% of Ecuadorian adults don’t have a bank account, but is their new ‘currency’ more about escaping the US dollar? Under a new monetary code, the Ecuadorian government in August released more information about plans for what they call a digital currency.
40% of Ecuadorians do not have access to a bank account, says Pablo Paredes, director of the Institute of Economics at the Universidad San Francisco de Quito. From December 2014 people will be able to exchange physical cash for digital money that they will keep in an electronic wallet on their mobile phones. “It’s no different from other mobile wallets offered in other countries.”……………………………………….Full Article: Source

Scotland and Sterling — whose currency is it anyway?

Posted on 11 September 2014 by VRS  |  Email |Print

Who “owns” sterling? With the date of Scotland’s independence referendum fast approaching, the debate over a currency for an independent Scotland has reached fever pitch. Amid much talk of currency unions and “Plan B”, Alex Salmond has boldly asserted “…it’s our pound and we’re keeping it …”. Good politics, perhaps, but bad law.
It is true that, on the independence of Scotland from the remainder of the UK, international law and practice would require the two sides to negotiate an equitable division of assets and liabilities. But – both for economists and lawyers – a monetary system is simply a medium of exchange. In other words, cash is an asset for the person who holds it, not for the central bank that issues it………………………………………..Full Article: Source

Argentina Said to Tighten Currency Rules as Reserves Drop

Posted on 11 September 2014 by VRS  |  Email |Print

Argentina is tightening its grip on the country’s currency market as international reserves decline following its second debt default in 13 years. Argentine banks must now seek government authorization for dollar purchases of $150,000 or more, down from a previous threshold of $300,000, according to three bank officials with direct knowledge of the matter.
Central bank officials communicated the measure through telephone calls and instant messages to currency traders yesterday, two of the people said………………………………………..Full Article: Source

Mark Carney: Currency union incompatible with sovereignty

Posted on 10 September 2014 by VRS  |  Email |Print

The Governor of the Bank of England Mark Carney tells the TUC Congress in Liverpool that all three main Westminster political parties have ruled out a currency union with an independent Scotland and on that basis a currency union is incompatible with sovereignty.
Currency union with an independent Scotland would be “incompatible with sovereignty”, the Bank of England governor has said. Mark Carney was asked about the effect of independence on currency union during a question and answer session at the TUC Congress in Liverpool………………………………………..Full Article: Source

Understanding The Spread in Retail Currency Exchange Rates

Posted on 10 September 2014 by VRS  |  Email |Print

In the frenzied world of currency trading, where daily trading volumes exceed $5 trillion, tight trading spreads are the norm for deals between banks in the interbank market, with only a few “pips” separating the bid and ask prices for a currency. Exchange rates quoted by banks to their large corporate, institutional and government clients are also very competitive, with narrow spreads. But it is an entirely different story as far as retail clients are concerned.
The spread between the bid and ask price for a currency in the retail market is usually quite large, and may also vary significantly from one forex dealer to the next. Since this difference in rates can have quite an impact on your wallet, it is always in your interest to shop around for the best exchange rate. But first, let’s delve into the world of forex to get a basic understanding of how exchange rates are calculated and how you can interpret them………………………………………..Full Article: Source

The currency options for an independent Scotland

Posted on 09 September 2014 by VRS  |  Email |Print

Uncertainty is to investors what daylight is to a vampire. It drains them of energy and triggers an automatic flight response. So, the idea of investing in a possibly to become independent Scotland that may not know for quite some time what currency - and in what form - it will use, has not inspired confidence.
Nor has the heated debate about the currency issue among the ‘Yes’ camp around Scotland’s First Minister Alex Salmond and the anti-independence campaign “Better Together,” led by Alistair Darling, also a Scot………………………………………..Full Article: Source

Upcoming Currency Crisis? The Contradictions of Europe’s “Negative Interest Rate Policy”

Posted on 09 September 2014 by VRS  |  Email |Print

NIRP, “negative interest rate policy”, what an interesting concept this is. Last week the ECB announced a 10 basis point “cut” in their deposit rates for banks who hold balances at the ECB. The lowered rate now makes the rate a negative .20%. Let’s take a look at this from a few different viewpoints to see exactly how humorous and ridiculous this is.
I do want to point out that this stupidity is a “Western plague” and not a global infection as interest rates are still solidly positive in most Eastern nations. Yes I know, the apologists will say “of course interest rates are positive in the East, this is to compensate for the extra risk”. Really?……………………………………….Full Article: Source

Commodities suffer as dollar accelerates

Posted on 08 September 2014 by VRS  |  Email |Print

Weakness across the commodity space resumed this week with the broad-based Bloomberg Commodity index falling by more than 1 percent. Multiple factors drove the weakness, not least the continued surge in the dollar, which gathered additional momentum following the intervention on rates and bonds from the European Central Bank on Thursday.
The announcement by Mario Draghi that the ECB had cut rates to a record low, while pledging to buy hundreds of billions of bonds to support the Eurozone, triggered a major move in the dollar, with the euro falling to a near 14-month low against the greenback. Given the dollar’s adverse relation to dollar-denominated commodities, the impact was felt across all sectors……………………………………….Full Article: Source

Argentina says discusses mechanism of currency swap with China

Posted on 08 September 2014 by VRS  |  Email |Print

Argentina’s central bank chief, Juan Carlos Fabrega, met his Chinese counterpart on Sunday to discuss how a currency swap worth billions of dollars will be put into action, the Argentine monetary authority said.
The swap will allow Argentina to bolster its foreign reserves or pay for Chinese imports with the yuan currency at a time weak export revenues and an ailing currency have put the Latin American nation’s foreign reserves under intense pressure………………………………………..Full Article: Source

Currency manipulation must end

Posted on 08 September 2014 by VRS  |  Email |Print

American businesses could be hiring more workers today if we ended unfair trade practices used by some of our trading partners. No matter how competitive companies are in South Carolina, they struggle to keep up with foreign competitors that are given an unearned advantage because of currency manipulation.
Currency manipulation may sound more like an idea discussed in Washington than on the assembly lines of Columbia, but local businesses are put at a competitive disadvantage by it. Currency manipulation is a 21st century trade barrier used by foreign governments to support their domestic industries. This means when countries like Japan use it to boost their industries, American companies and workers feel the pain………………………………………..Full Article: Source

Do fund investors need to pay more attention to currency risk?

Posted on 08 September 2014 by VRS  |  Email |Print

Choosing which share class to hold is becoming one of the most important questions for fund investors to consider, Apollo’s Ryan Hughes says. A sharp divergence in the monetary policy stances of the world’s major central banks means currency exposure is becoming increasing important to fund investors, according to Apollo Multi Asset Management’s Ryan Hughes.
Hughes, who runs Apollo’s four multi-asset funds with Craig Wetton, Steve Brann and Ian Willings, says the team is paying more attention to share classes’ currency and whether it is more appropriate to take hedged exposure when buying holdings for their portfolios………………………………………..Full Article: Source

Bitcoin, The Cryptography-based Currency Continues To Rely On Banks For Security

Posted on 05 September 2014 by VRS  |  Email |Print

Reddit’s r/Bitcoin is a popular forum where BTC enthusiasts shared news links and anti-establishment jokes. The site was so influential among the community that a recent book about Bitcoin called The Anatomy of a Money-like Informational Commodity discussed the viability of using the number of registered members of the forum as a way to gauge the market sentiment.
One of the most upvoted post on the channel yesterday is one entitled Worst Night of My Life, in which a Bitociner recounted how his family responded after they discovered that his parents’ house broken into with the safe stolen by the burglars………………………………………..Full Article: Source

As US dollar soars, commodities get crushed

Posted on 04 September 2014 by VRS  |  Email |Print

The hottest trade of the past two months has been a surprising one: Going long the U.S. dollar against other currencies. And the recent dollar strength appears to have had a profoundly negative impact on commodity prices.
Since the end of June, the U.S. Dollar Index (which compares the dollar to a basket of other currencies) has risen 3.5 percent, bringing the index to a 52-week high. And while the weakness in the widely watched euro has certainly contributed to the move, the dollar has also shown considerable strength against currencies like the British pound, the Canadian dollar and the Japanese yen………………………………………..Full Article: Source

Currency hedge funds welcome a return to market volatility

Posted on 04 September 2014 by VRS  |  Email |Print

After posting three straight years of losses that thinned the ranks of hedge funds specialising in currencies, the foreign-exchange market is showing signs of rebounding.
Parker Global Strategies’ index of leading currency funds climbed 0.9 per cent in August, the most since January 2013 and trimmed losses in 2014 to 2.2 per cent. That followed a 0.3 per cent rise in July, the first two consecutive advances since October, as diverging policies among central banks create wider price swings for investors to exploit………………………………………..Full Article: Source

Turbulence in Global Currency and Commodity Markets as Labor Holiday Ends

Posted on 03 September 2014 by VRS  |  Email |Print

The end of the U.S. labor market holiday on Monday ushered in important developments in currency and commodities markets worldwide. In the currency market the Euro hit a one-year low of $1.3117. Some have linked the Euro’s drop to policy decisions that will be made by the European Central Bank this coming Thursday. Market participants are not expecting the ECB to make major easing steps Thursday.
The common currency is expected to remain under pressure until the meeting. The meeting comes at a time where Europe has seen a steady decline in headline inflation rates, the collapse of German bond yields, and calls by the president of the ECB to encourage growth friendly fiscal policy………………………………………..Full Article: Source

Russia’s currency has now hit all time lows

Posted on 03 September 2014 by VRS  |  Email |Print

While the Ruble is breaching government mandated price controls; Russian Central Bank heads are still keen to proceed with plans to remove currency controls which analysts say in the long run with be net positive for the Russian economy.
Russia’s currency has hit its lowest level ever against the U.S. dollar as the risk of new Western sanctions threatens more economic hits. The European Union said Saturday it was preparing to issue new sanctions as soon as this week in response to signs that Russia had sent troops into Ukraine. The ruble has declined by about 13 percent this year. One dollar will now buy you about 37.5 rubles………………………………………..Full Article: Source

How to spot the signs of the next currency crisis

Posted on 02 September 2014 by VRS  |  Email |Print

In the past two decades or so the global financial markets have been rocked by a series of currency crises and devaluations – from the European Exchange Rate Mechanism (ERM) crisis of 1992 to Argentina’s ongoing currency issues and, more recently, the 2008 euro crisis.
Ugo Lancioni, head of currency management at Neuberger Berman, points to the causes of these currency devaluations. “Currency depreciations or crises are caused by substantial misalignments between the real value of the currency and the fundamentals of the country,” he explains………………………………………..Full Article: Source

Asian Currencies Storm Higher Against U.S. Dollar

Posted on 02 September 2014 by VRS  |  Email |Print

Asian currencies are charging higher against the U.S. dollar and outperforming other emerging-market currencies as global investors send fresh funds into the region’s fast-growing economies.
Leading the pack is the Malaysian ringgit, which has rallied 4% this year to touch a 10-month high last week, while the Indonesian rupiah has strengthened 3.9% after losing about a fifth of its value in 2013. The Korean won is near a six-year high, up 3.5% this year. The Indian rupee is up 2.4%, the Philippine peso is up 1.9%, and the Thai baht is ahead 2.3%………………………………………..Full Article: Source

What is bitcoin? All you need to know about the currency used to buy nude Jennifer Lawrence pictures

Posted on 02 September 2014 by VRS  |  Email |Print

The person who uploaded images of Jennifer Lawrence used online currency bitcoin to purchase the nude snaps. The ‘collector’ who uploaded naked images of Jennifer Lawrence and a whole host of other famous faces has revealed he bought them using the online currency bitcoin.
But what exactly is it? Bitcoin is a digital currency that doesn’t have a central authority but is considered to be a “legitimate financial service” by the US senate. Today one bitcoin is worth £291.29. It’s value depends on people’s confidence in the currency………………………………………..Full Article: Source

World’s first digital currency from Ecuador central bank

Posted on 01 September 2014 by VRS  |  Email |Print

Ecuador is planning to create what it calls the world’s first digital currency issued by a central bank which some analysts believe could be a first step toward abandoning the country’s existing currency the US dollar.
The electronic money which Central Bank officials say they expect will start circulating in December does not have a name and officials would not disclose technical details though they said it would not be a crypto-currency like Bitcoin. The amount of the new currency created would depend on demand………………………………………..Full Article: Source

Poll: 44% across UK oppose currency union with iScotland

Posted on 01 September 2014 by VRS  |  Email |Print

More than 40% of people from across Britain do not believe there should be a currency union if Scotland becomes independent, according to a poll. The Springboard UK poll for the Sunday Express carried out in England, Wales and Scotland found 44% of those asked the question “If Scotland votes for independence should there be a currency union?” replied with “No”.
A total of 22% welcomed sharing the pound while the remainder said they were not sure. However, the figures for Scotland revealed 60% of those polled were in support of a currency union, 21% were opposed and 19% did not know………………………………………..Full Article: Source

The dollar’s sterling work

Posted on 29 August 2014 by VRS  |  Email |Print

A forthcoming paper in the Journal of Development Economics looks at the dollar’s ascendancy to global reserve currency. Barry Eichengreen, of the University of California, Berkeley, and two economists from the ECB up-end the conventional history of when the dollar became top dog.
Economic historians have typically believed that until the second world war the British pound sterling remained the leading international currency. The system was geared in favour of sterling, the argument goes: bankers instinctively used the pound because everyone else did. Economists refer to this as inertia. An extension of this logic is that there can be only one major international reserve currency—in the same way that Blu-ray discs, not HD DVDs, came to dominate the high-definition video market. It’s easier if everyone uses the same thing………………………………………..Full Article: Source

Bitcoin Grows As New Businesses Start Accepting Currency

Posted on 29 August 2014 by VRS  |  Email |Print

Bitcoin, an alternative digital currency which is used to purchase goods and services online, is showing staying power, Reuters reported on Thursday, August 28. Though virtually unknown only a few years ago, the electronic currency is now catching on among more and more online vendors, including Expedia, America’s largest online travel agent, and Overstock, an online retailer.
Although bitcoin sales hardly ever represent more than one percent of total sales, Reuters says many of the vendors it interviewed expect that the online currency “will one day be as ubiquitous as the Internet.”……………………………………….Full Article: Source

Ukraine’s Hryvnia Currency Continues Free Fall

Posted on 28 August 2014 by VRS  |  Email |Print

Ukraine’s troubled hryvnia continued its free fall, even as the prime minister called for swift measures to stabilize the national currency. The hryvnia lost 1.7% Wednesday, trading at the weakest level ever of just below 14 against the U.S. dollar after talks between the presidents of Russia and Ukraine failed to offer significant progress on the monthslong crisis in the region.
“We need swift and effective economic steps to stabilize the situation at the foreign-exchange market,” said Prime Minister Arseniy Yatsenyuk at the cabinet meeting, adding that the national economy won’t sustain an exchange rate weaker than 12 hryvnia to the dollar………………………………………..Full Article: Source

Ethiopia considers devaluing currency

Posted on 28 August 2014 by VRS  |  Email |Print

Ethiopia says it’s considering the World Bank’s suggestion to devalue its currency, the Birr, but government says it want to minimise the impact on the wider economy. In July, the World Bank released its third economic report on Ethiopia and advised the country to devalue its currency.
The global lender argues that Ethiopia’s Birr is overvalued and that the country would benefit from making the move, but it wouldn’t be the first time for Ethiopia………………………………………..Full Article: Source

Cutting edge: Incorporating forex volatility into commodity spread option pricing

Posted on 27 August 2014 by VRS  |  Email |Print

In this article, Joseph Yechong Chen extends Kirk’s formula to spread option pricing when forex is a stochastic factor and is multiplied to one leg in the payoff formula. The article illustrates the importance of forex risk factors and the need to include them in the business strategies of asset acquisitions and divestitures
Several different forms of spread options are used in energy markets. The most popular ones are European call options on the spread of energy price pairs. If we consider energy prices in different locations and times as individual commodities, a spread option can be generally considered as the right to exchange one unit of a commodity for a certain amount of units of another commodity at given strike price………………………………………..Full Article: Source

Rising risk of currency market volatility

Posted on 27 August 2014 by VRS  |  Email |Print

The biggest threat to investors may come from the foreign exchange market rather than the stretched prices of equity and bond markets. Judging by recent policy and technical signals, the forex market may be about to exit an unusual phase of low volatility.
After a prolonged period of monetary policy alignment, advanced economies are embarking on increasingly contrasting paths. This “multi-track” world of central banks reflects notable divergence in underlying economic performance………………………………………..Full Article: Source

Opposition to currency union with Scotland is a bluff, says top economist

Posted on 26 August 2014 by VRS  |  Email |Print

Nobel prizewinner Joseph Stiglitz also accuses Scotland’s finance sector of using scare tactics over independence. Prof Joseph Stiglitz, the Nobel prize-winning economist, has accused David Cameron’s government of bluffing over its opposition to a currency union with an independent Scotland.
Stiglitz boosted Alex Salmond’s repeated insistence that a formal sterling zone was the best option by accusing the no campaign of deliberately stoking up fear and anxiety among Scottish voters as a short-term tactic in the referendum………………………………………..Full Article: Source

Investors pile up dollar, abandon gold

Posted on 25 August 2014 by VRS  |  Email |Print

Strong economic data from the US saw gold prices drop sharply last week to hit $1,281/ounce, down 1.8 per cent. The US Commerce Department said that the number of building permits issued in July increased by 8.1 per cent to 1.052 million units from 9,73,000 in June. It also said that the US housing starts soared by over 15 per cent in July, much above the market expectations of an increase of 8.6 per cent.
The FOMC minutes released on Wednesday showed that US officials were optimistic about the recovery in the job market. As this hinted at a sooner than expected increase in interest rates, gold got a thumbs-down from investors………………………………………..Full Article: Source

Independence: Lack of currency is ‘total madness’

Posted on 25 August 2014 by VRS  |  Email |Print

The eminent economist Peter Jay has claimed Alex Salmond’s plans for an independent Scotland without its own separate currency amounts to “total madness”. Speaking at an Edinburgh Business School seminar, the former non-executive director of the Bank of England argued that the whole point of being independent was to have a separate currency, so that Scotland could have greater control over economic policy.
Salmond believes that an independent Scotland should share the pound with the rest of the UK in a formal currency union that would see the Bank of England ­remain responsible for monetary policy. A currency union would also see Scotland would have the same exchange rate as the rest of the UK………………………………………..Full Article: Source

Finding An Alternative With Currency ETFs

Posted on 22 August 2014 by VRS  |  Email |Print

With the broad stock market continuing to hit new highs despite worries of a correction, investors have been getting a tad worried. That has them looking towards various alternative asset classes to help stem the volatility and diversify their portfolios. Everything from long/short strategies to commodities have become common holdings for investors.
However, one alternative asset classes remains absent from many investor’s assets. Currency trading or foreign exchange (Forex) shouldn’t be ignored by retail investors, especially now that there are a host of products that allow Regular Joes access to the once-guarded realm, such as exchange traded funds (ETFs)………………………………………..Full Article: Source

The Best Places To Exchange Currency

Posted on 22 August 2014 by VRS  |  Email |Print

There is nothing like coming home from a great trip abroad thinking you had been really savvy about sticking to your budget only to be hit with unexpected currency-exchange fees on your bank statement and credit card bill.
Almost every overseas traveler needs to exchange currency at some point during his or her trip. If you don’t know the tricks, it can be extremely expensive………………………………………..Full Article: Source

English voters don’t want currency union with Scotland

Posted on 22 August 2014 by VRS  |  Email |Print

Voters based in England do not want to enter into a currency union with the independent country if a yes vote prevails in September’s referendum, a new survey has revealed. The Future of England Survey 2014 published this week worked alongside polling agency YouGov to consult 3695 English voters on their views of Scottish independence
Individuals based in England, Wales and Northern Ireland are unable to vote in the Scottish referendum on independence even if they were born in the country. The Scottish government has set out plans for an independent Scotland to share the pound with the rest of the UK in a formal currency union but UK chancellor George Osborne has since issued a warning alongside the other main party leaders that the UK government would not enter into this type of union with the newly independent country………………………………………..Full Article: Source

Bitcoins: currency 2.0

Posted on 22 August 2014 by VRS  |  Email |Print

London is the fastest-growing hub in Europe for bitcoin users. The much-hyped virtual currency is changing hands in pubs, cafés and e-boutiques across the capital. Does it herald a cashless future or is it a no-cash flash in the pan?
There is nothing old about The Old Shoreditch Station café, a £1 coin’s throw away from Silicon Round-about, the home of East London’s Tech City. It’s about as cutting edge as a café can get. It’s not the menu — although the cappuccinos are religion-changingly good — it’s the price. They don’t charge for caffeine in silly old cash or credit cards. They take something new: bitcoins………………………………………..Full Article: Source

Salmond currency expert: UK may not share pound

Posted on 21 August 2014 by VRS  |  Email |Print

The expert behind Alex Salmond’s currency plan has admitted the UK might not agree to share the pound in a formal monetary union with an independent Scotland. Crawford Beveridge, the chairman of the expert panel which drew up currency options for an independent Scotland, said the proposed currency union remained the best option.
But he told an audience in Glasgow that the argument over the currency had become political rather than economic and the UK might not behave “rationally” in negotiations following a Yes vote………………………………………..Full Article: Source

The tax office declaring Bitcoin is not a currency should come as no surprise

Posted on 21 August 2014 by VRS  |  Email |Print

In a move that has dismayed the Australian Bitcoin community, the Australian Tax Office (ATO) has provided tax guidance declaring that the crypto-currency Bitcoin is not actually a currency at all, but an asset like shares.
This has a number of consequences for both consumers and businesses wanting to buy, sell and exchange Bitcoins in Australia, which has led some Bitcoin commentators to warn that the rules will drive Bitcoin business offshore and generally stifle the growth of its use in Australia………………………………………..Full Article: Source

It’s a good time to hedge your currency deal

Posted on 20 August 2014 by VRS  |  Email |Print

Using a forward contract to fix at the current exchange rates is worth exploring while the pound is strong against the dollar and euro. This year has proved to be a good one for sterling, with the pound hitting highs against both the dollar and euro. But what does the future hold for those needing to make currency transfers?
David Nicholls, of currency specialists UKForex, said: “The pound-euro has moved from €1.20 to €1.25 since April, a change of 4pc in only four months………………………………………..Full Article: Source

Czech virtual currency starts trading

Posted on 20 August 2014 by VRS  |  Email |Print

Czech virtual currency CzechCrownCoin (CZC) started to be traded publicly today, its first limited issue amounting to 100,000 Kč. The initial price stood at 0.25 CZC against the Czech crown at noon. By 12:30 it was already 1 Kč higher.
After each limited issue is sold, another one will follow for a period of ten days. After that, an exchange office will be opened at the www.czechcrowncoin.cz website, where the currency will be traded for the price reached during the sale of the first issue………………………………………..Full Article: Source

Scottish independence: Attacks on currency plans

Posted on 19 August 2014 by VRS  |  Email |Print

The leaders of the No campaign warned of the dangers of independence as they took to the streets of Scotland yesterday to mark the final month of the campaign. Labour shadow foreign secretary Douglas Alexander accused Alex Salmond during a campaign event in Glasgow of “burying his head in the sand” on critical issues such as the SNP’s plan to share the pound in a formal currency union with the remainder of the UK, EU membership and funding for public services.
Chief Secretary to the Treasury Danny Alexander pledged UK government funds for key industries if Scots vote No………………………………………..Full Article: Source

Bitcoin Currency: The New Frontier for the CFPB

Posted on 19 August 2014 by VRS  |  Email |Print

The Consumer Financial Protection Bureau (CFPB) has unparalleled powers over nearly every consumer financial product and service. Given that virtual currencies can serve as a form of electronic money, the CFPB has, predictably, decided to weigh in on this topic.
A CFPB statement this week warned people about the dangers of private digital currencies such as Bitcoin, XRP, and Dogecoin. It started perfectly reasonably, noting that: “In a nutshell, while virtual currencies offer the potential for innovation, a lot of big issues have yet to be resolved – some of which are critical. If you are interested in using or buying virtual currencies, you should be aware of the associated risks.”……………………………………….Full Article: Source

Are The Dollar’s Global Currency Days Numbered?

Posted on 18 August 2014 by VRS  |  Email |Print

Many countries agree that the U.S. politicizes the dollar by punishing nations who don’t abide by U.S. sanctions. With this American approach comes isolation, and the risk of the dollar being replaced as global currency.
It’s not going to happen tomorrow, in a year or even five years. But it’s conceivable, even likely, that within ten years, the U.S. dollar will cease to become the reference currency for international transactions. The reason for this is that the U.S. government and American judges have politicized the dollar to an extreme in a world where the country backing it is no longer as dominant as it once was………………………………………..Full Article: Source

5 ways to save on currency exchange

Posted on 18 August 2014 by VRS  |  Email |Print

When you’re traveling overseas, it’s easy to get hit with extra fees and expensive exchange rates in switching currencies. Some currency-exchange kiosks in airports and tourist areas offer bad rates, taking more of your money. And some credit cards and banks can add fees when you buy something with your credit card.
Your best bet is to bring a credit card that doesn’t charge currency-exchange fees, and some cash for backup. Don’t carry wads of cash. Your credit card offers protection against fraudulent charges and can be replaced if lost or stolen (unlike cash)………………………………………..Full Article: Source

Economist: SNP’s currency union plan will fail

Posted on 15 August 2014 by VRS  |  Email |Print

Alex Salmond’s Plan A for a currency union is doomed to failure and will bust up within a year costing the Scottish economy £100 billion, one of the world’s leading economists has claimed. Unemployment and a seven year slump would be the inevitable result of Mr Salmond’s plans for a formal currency union with the rest of the UK.
Professor Ronnie MacDonald, an adviser to central banks and the IMF, believes that a reliance on North Sea oil would unbalance Scotland’s economy making the non-oil sector uncompetitive………………………………………..Full Article: Source

Virtual Currency: Not Just A Phase

Posted on 15 August 2014 by VRS  |  Email |Print

Virtual currencies are definitely trending. You know that’s true when even the politicians are jumping on the bandwagon. It won’t be long until Ed and Dave are asking if they can pay for their Cornish pasties with Bitcoins.
Maybe we’re not quite there yet, but the fact that in the run-up to a general election, the Treasury is looking at measures to make the UK a centre for virtual currency trade shows how much interest there is in digital/virtual/crypto currencies………………………………………..Full Article: Source

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