Investors appear to be increasingly turning towards bitcoins, rather than gold, as the best way to protect themselves against unpredictable financial markets. Worries that the US Federal Reserve could make good on its threat to raise interest rates before the end of the year pushed gold to a three-week low overnight, with the price of the precious metal dropping 2.4 per cent to $US1,147.30 a troy ounce. Although the Fed kept interest rates close to zero at this week’s meeting, it flagged the possibility of a rate rise in December, and this triggered a rise both in US dollar and US bond yields – both of which are negatives for […]
Fintech We are in the middle of a digital revolution, evident in the rise of fintech companies and technologies. For the first time, new technology such as Blockchain and Cloud based solutions were very visible at SIBOS (Swift International Banking Operations Seminar) and technology was the most talked about topic everywhere you went. Despite the buzz on technology, everyone is still trying to make sense of what this means for their customers and their business. Fintechs have forced banks to look at the competitive environment in a completely new way and banks are working out how they can make this work for them. Ultimately, fintechs rely on banks for basic […]
WHEN you look closely, you may be surprised at how many bank fees, charges and costs you incur; as a result of their cosy oligopoly, Australian banks have become the most profitable in the world, collecting $29 billion in profit in 2015 or $1600 from every adult Australian. This financial year, bank profits are expected to top $30 billion after Westpac, CommBank, NAB and ANZ all raised interest rates outside of the RBA cycle, adding an estimated $1 billion to their bottom lines. But have you ever wondered why certain charges exist at all – or what could be done to get rid of them? A new breed of technology-focused […]
Bitcoin’s much-lauded transaction record, blockchain, is being seriously considered as a replacement for the Australian Securities Exchange’s clearing and settlement system. Managing director Elmer Funke Kupper said the ASX, which is in the middle of replacing its trading systems, had a once-in-a-generation opportunity to install the best technology, and blockchain could reduce cost, save time and cut complexity in the clearing and settlement of trades, now done by a system known as the Clearing House Electronic Subregister System (CHESS). Source: ASX considers blockchain for clearing and settlement
What are your thoughts on this article? Do you believe this is happening? Australian businesses are turning their backs on bitcoin, as signs grow that the cryptocurrency’s mainstream appeal is fading. Concerns about bitcoin’s potential crime links mean many businesses have stopped accepting it, a trend accelerated by Australian banks’ move last month to close the accounts of 13 of the country’s 17 bitcoin exchanges. The development is a blow to hopes of bitcoin fans that the currency can play a significant role in everyday business transactions in developed economies, with Australia once seen as one of its most promising markets. It is estimated to hold 7 per cent of […]
Michael Pascoe raises some interesting ideas in this short segment about why the banks are interested in ensuring they don’t do business with those that are involved in legal bitcoin businesses but turn a blind eye towards better known ‘shonks’ using their services. What are your thoughts on the banks using these tactics and do you agree that APRA and the Reserve Bank should start to review this practice?