Bitcoin exchange Coinbase gets money transmitter license in New York

With everything getting digitalized, the life of every individual is also becoming digital. Internet has given the power to everyone to avail anything they want that too by just sitting at your house. So, digitalization has captured every sphere of the human life. Whether it is about paying bills or opting for shopping you can manage anything and everything from anywhere and in every situation, that’s the power of being digital. Cashless is also not a problem in this era of digitalization. I believe the world is getting powerful day by day with this new technique that allows you to overcome every obstacle.


The effect of digitalization can be mostly felt in the zone of finance. New firms have come up to become a part of the world market holding hands of digitalization. One of the major company that has joined in with the New York’s Financial system is Coinbase. Recently, The Department of Financial System, New York has declared that it has given license to Coinbase for genuinely transmitting currency and money. Coinbase is one of the renowned companies famous for its dealings in terms of currency operating in almost 32 countries. Maria T. Vullo, the Superintendent of Financial Services had made this announcement that Coinbase has maintained its record of efficiency in terms of technological developments and thus New York’s Financial Services Department have decided to incorporate the company in their money and currency transmitting process.


A review of Coinbase’s technology was conducted by Department of Financial Services which involved the companies laundering process regarding anti-money, capitalization, protection of consumers against any piracy and also policies in terms of cyber security. The company Coinbase is constantly under the supervision of Department Of Financial System for offering services such as buying, selling, sending, storing bitcoin and receiving.


The company’s Chief Executive Officer Brian Armstrong declared that their first and foremost priority is to provide the safest and easiest way of currency exchange that too in a digitalized manner. So, that the customers can rely on them and do not have to experience any discrepancies from the company’s end. It is their way of maintaining a good relationship with its customers. Since, Coinbase in now a part of New York’s Financial System, hence, it has become a much known company in the field of currency transfer. The users can feel free to use them in times of their need and they assure you to provide satisfaction from all ends.


With the increasing need of transmitting currency, The Department OfFinancial System, New York has given license to several other money and currency transmitting firms like Ripple and Circle Internet Financial and trust charters to Gemini Trust Company, Winklevoss brothers are its founders and also itBit Trust Company. The Department before granting them license have fully enquired about these respective companies and after being satisfied have granted them license. These companies have come up to provide the best answer to digitalization and will add up in making life much easier for every human being.

Dollar retreats from 14-year highs, investors unpack Fed minutes

 
As the value of dollar fell against euro and yen the investors became cautious regarding increase in bets on greenback without any hints with respect to the economy of U.S. and the hike in rate of interest. The very first day of trading in 2017 for several investors was full of expectations as they met with U.S. manufacturing data which was way different from the previous days. Since, the depreciation of dollar was the highest till date.

The Federal Open Market Committee that met in December, had warned everyone of the risk of increase in inflation after President Donald Trump’s proposal of fiscal influence standards that would shift dollar and will push up euro to $1.0499, which is its highest value declared. But as the investors changed their ways, euro started tracing profits to some extent.

Joe Manimbo, a senior market analyst at Western Union Business Solutions in Washington has intended that this decrease in the value of dollar in comparison to euro and yen have led to mixed reactions as in a way it sounds optimistic in terms of the economy, and on the other way it suggests a demoralized power of dollar.

Research have shown that the last time the value of euro increased by 0.6 percent at $1.0465. The current data shows that such a quick increase in the value of euro in December was unexpected and the surveys prove that due to this the growth in business have reached new heights in more than five years.

The dollar was last seen to be down by 0.2 percent against yen at 117.51 after an overnight hike of 118.17 yen. After Trump was elected as the President dollar has increased against many currencies with an expectation that administration under him will push up inflation, leading the Federal Reserve to follow up through a hike in rate of interest.

The Mexican peso was found to be striking the lowest level against the greenback, it fell more than 2 percent to 21.62 pesos per dollar with an intention that Trump’s policy might allow the protectionist U.S. trade policy to become a reality.

The Chinese yuan was increased to 6.8707, which was its highest value recorded against dollar since 6th December. As a result China went into both onshore and offshore markets to increase the depreciating yuan for the second time. China was also found to set the onshore middle point rate much lower than the market actually expected from it which lead many investors leaving the ground, who were intending more upcoming weaknesses in the currency, positioning in the negative direction, this was propagated by Greg Anderson, who is the global head of foreign exchange strategy at BMO capital Markets.

Thus, we can relate that how the marketing strategies as well as the position of investors are subjected to change with fluctuating value of currencies that on a longer run effects the entire economy of the country both positively and negatively.

Rs 500, Rs 1000 Notes Abolished

Demonetization of Rs 500 & Rs 1000 Rupee Notes

In an important effect to check black money, the Prime Minister has announced demonetization of Rs 500 and 1000 rupee notes with effect from midnight of November 9 which makes these notes invalid on black money, corruption and fake currency.The decision of PM Narendra Modi to eliminate Rs. 500 and Rs. 1000 rupee notes with a view to control the flow of black money has been mentioned by almost all in Bollywood.

The decision had been effective abolishing Rs 500 and Rs 1000 rupee value notes as legitimate tender. To get to know on the implications on this financial decision, an interaction had been conducted with leading film exhibitor Akshaye Rathi who mentioned that the impact could be of two levels namely micro and macro.

With regards to film that would be coming in the future, it was essential to comprehend the pattern of audience which could be beyond the metros.In areas like Bengaluru, Delhi, Kolkata, Mumbai and Pune, individuals seem to be comfortable in utilising plastic money as well as online transactions.

However there is a massive population which is beyond the metros who do not approve of utilising plastic money. Then there is a still bigger crowd which goes to the bank and withdraw money, making their payment through cash.

Impact on Industry – Positive

People in places such as Kanpur and Satara tend to go to the bank on the first day of the month for withdrawal of cash for their monthly expenditure where the payment is done by cash. Hence, individuals would find it difficult in being unable to use the denominations of 500 and 1000 rupees when they go for a movie or intend to dine out with their family or friends.

Carrying a few five or hundred rupee notes tends to be much easier than carrying a good amount of hundred rupee notes in your wallet which could cause a bit of inconvenience to the individuals. With regards to Bollywood, Akshaye envisions the decision affecting the industry crowd in a positive manner and is of the belief that it would go a long way in eliminating bribes as well as corruption. He stated that the impact on the industry would be a very positive one.

A producer shooting is troubled by several entities such as organisations, political outfits and associations who tend to come and upset the shoot, by asking for bribe. The producer then provides them with the option of card or cheque payments. With this decision, all these bribes and loopholes have been stopped since one cannot pay a bribe with hundred rupee notes.

New Notes of Rs 2000 & Rs 500

Modi has mentioned that people having Rs 500 and Rs 1000 could deposit them in their bank and post office account from November 10 to December 30. He also mentioned that the notes would not be legal tender from midnight of November 9 and that they would be just useless piece of paper.

But he also added that all notes in the lower demolition of Rs 100, Rs 50, Rs 20, Rs 10, Rs 5, Rs 2 and Re 1 together with the coins would continue being valid.

He informed that new notes of Rs 2000 together with Rs 500 would be introduced and that there would be no modification of any kind of currency exchange be it DD. Cheque, payment through credit/debit card etc.

Snapchat Is Pumping the Next Tech Bubble with More Hot Air

Tech Bubble Likely to Burst

For greater part of the year, apprehension has been mounting that the second tech bubble is likely to burst. Contrasting from the dotcom bust of 1999 as well as 2000, that had been generated due to the unexpected downfall of companies on the stock market, the second coming has been established on the eye of valuation which the latest generation of tech companies had organised in achieving through private fund-raisings.

Scores of business all over the world have attained the so-called `unicorn’ status, an estimate of over $1bn. Overall, it is reaching 200 universally which have succeeded this mythical tag. Some of them seemed to be `mega-unicorns’ companies that have exceeded the $10bn target though a handful of superstars have hit the extraordinary levels.

Uber the taxi app is presently worth over $60bn while Airbnb, the favourite of the sharing economy has raised funds valued at $30bn. Meaningless estimates of young companies some of which make no money and you have the makings of a bubble which will certainly have to burst at some point of time with catastrophic consequences for global markets. Indications have been there for some time. Confidence in private market has taken a blow with a drop in funding rounds for start-ups.

Fidelity – Instigated Panic

A high profile tech investor, Fidelity had instigated panic when it had dropped the evaluation on dozen investments. On the other hand, some start-ups comprising of Uber had been compelled to go overseas in raising funds at higher assessments where the assessments of several big tech companies already on the stock market had collapsed.

However, in spite of the anxieties, the bubble is likely to be pumped with more hot air due to another burst of vastly over-priced floats. One of the most high profile is Snapchat which is a company that several people of a particular age would possibly not have heard it but has instantly become the social network of choice among millennial who tend to utilise the same in sharing photos, video drawings and texts.

Launched only five years back by three ex-Stanford University students, the same has been amazing. Snapchat tends to generate sales of only £300m each year, in spite of being utilised by 150m users each day and is uneconomic due to its free services.

Bubble – Low Interest Rate Environment

But these matters seem to be of no concern to the experts of Silicon Valley and Wall Street who tend to value the app at $25bn. However, it could prove to be the next Apple or Facebook and many are of the opinion though the same has been said regarding Twitter, Groupon as well as LinkedIn which tend to be over-hyped.

Snapchat will probably be followed by other hot tech firms comprising of Pinterest, Dropbox and SpotifyIt may only need one failure to affect it badly and 2016 may be the year the dotcom bubble 2.0 would eventually goes pop. The founder of PayPal and a billionaire tech investor, Peter Thiel states that we are in a bubble owing to the low interest rate environment that had been talked over earlier.

 He comments that `I think we have a bubble in the US in government bonds, due to the quantitative easing and the adverse real interest rates and to some extent that increases asset values all over the board inclusive of start-ups’

Mark Carney ‘serene’ about pre-referendum economic warnings

Governor of Bank of England – Serene on Judgement of MPC/FPC

With the indications increasing, that economic activity had held up more than expected since the June referendum, the Governor of the Bank of England, Mark Carney has fortified his blatant warnings regarding the negative impact of Brexit on the economy before MPs. In recent weeks with the firming of business activity surveys together with resilient retail spending data, has led to assertions from supporters of Brexit that the warnings of recession of the Governor has now been shown as scaremongering together with the quick to reduce interest rates, by the Bank’s Monetary Policy Committee – MPC, after the vote.

 However, these charges were denied by Mr Carney at the time of replying to the questions before the Treasury Select Committee. He stated that considering all the events since the referendum he was absolutely serene regarding the judgements made by the MPC as well as the FPC – Financial Policy Committee. He further added that they certainly welcome the signs of stabilisation and that the Bank had anticipated a bounce back in the much observed Purchasing Managers’ Index – PMI surveys when the interest rates were reduced on 4 August.

Biggest Downgrade in Modern History – Growth Forecasts

That recover had provoked the economic forecasters of a host of City of London to revise their expectation of a recession in the second half of the year, though a sharp go-slow in the growth is yet extensively predicted. Mr Carney had mentioned before the EU referendum in May that a technical recession would be possible in case of a majority Brexit vote by the British public.Interest rates were reduced last month by the Bank to a new historic low of 0.25% and had pushed on another £70bn of Quantitative Easing as it revealed its biggest downgrade in its modern history in growth forecasts.

Mr Carney had repudiated the charges that levelled by the pro-Brexit Conservative MP Jacob Rees-Mogg stating that the Ban had issued dire warnings before the vote, replying that he had heighted risks aptly. Moreover, the Governor had also added that the financial impetus the Bank had instigated together with its rapid offer of liquidity to the banking system had been one of the main causes the financial conditions seemed to be alleviated.

Traders Clambering Back

Moreover the Governor had also added that the implementation of the Bank on monetary stimulus and its rapid offer of liquidity to the banking system had been the main cause of financial situations being steadied. He commented that they had made the crystallisation of those risks less probable. Mr Carney had also mentioned that the Bank had `helped ensure that what was surprise for financial markets passed smoothly and that allowed us not to have an overshoot’.

Sterling has faced a record fall against the dollar in the two day in the wake of June 23 vote, dipping to its lowermost rate against the US currency in the last 31 years.The Bank of England had stated in August, that it could cut the interest rates again later in the year if the economy declined on the predictable. Presently the traders are clambering back their bets on another cut in view of the more positive economic data.