A weekly section discussing how general events can influence the near-term future of cryptocurrency sector
Citibank Economist Wants People to Abolish Cash
Citi’s economist Willem Buiter recently wrote a column in which he asked people to altogether abolish cash to save themselves from the problem of effective lower bound (ELB) on nominal interest rates. As per his thinking, the ELB exists only because the cash exists, using a pretty aggressive Taylor rule to display a differentiating scenario between the actual Federal rate cut during the financial crisis, and how low it could be if cash didn’t exist.
It somewhat is satisfactory for cryptocurrency followers who, by the very start, is supporting the idea of a cashless society, though for different reasons.
Fed Official Calls US Banks Undercapitalized
Thomas Hoeing, Vice Chairman of the Federal Deposit Insurance Corporation, recently published data that revealed US banks to be undercapitalized. According to the information provided by Hoeing, the asset-equity ratio for larger banks is averagely 4.97%. It simply indicates that each of the asset held by these banks have 95 cents borrowed.
Ripple Labs Requires Identification Details to Meet Regulations
Ripple Labs, the San Francisco based payment protocol provider, recently announced to add additional account creation and verification requirements to its T&C, based on the grounds of upsurging cryptocurrency regulations. The decision subsequently miffed the dedicated consumer base of the company.