How Can a Bitcoin Bank Pay Interest?

How Can a Bitcoin Bank Pay Interest?

While several global headlines have declared that millennials are increasingly disinterested in banks, the owners of BTC.sx exchange have launched Magnr, “the first savings account for Bitcoin.” They promise a 2.18 % return over the first six months of a deposit, and claim that all depositors will be able to audit their individual holdings on the Bitcoin blockchain. Wondering just how bank-like Magnr intended to be, CoinTelegraph interviewed Josh Blatchford, CMO of Magnr. “One key difference from traditional processes is that we maintain all transactions on the blockchain such that all our....


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German Bank Hits Rich Clients with Negative Interest Rates

Deutsche Skatbank, a division of VR-Bank Altenburger Land, is introducing negative interest rates. Customers with over €500,000 on deposit as of November 1 will earn a "negative interest rate" of 0.25%. In other words, instead of earning positive interest, they will have to pay 0.25% per year for banking services. Also read: ECB Announces Negative Interest Rates: Bitcoin Price Rallies. Of course, the initiative received a lot of criticism. Wolf Richter says: "'Punishment Interest' is what Germans lovingly call this. It's the latest and most blatant step of the central-bank strategy to....

Miles Kimball on negative interest rates and when robots will set monetary policy

To get updates of my thoughts on bitcoin and the global financial markets please follow @sammantic. Miles Kimball, who is a Professor of Economics and Survey Research at the University of Michigan tells CoinTelegraph about negative interest rates, the future of paper and electronic money, and how cryptocurrrency fits in. Negative interest rates are a recent topic garnering much attention in the economic world. In no particular order, Denmark, Switzerland, Germany, Netherlands, Germany, Austria, and Sweden have or have recently had negative interest rates. On top of that some corporate....

Thrash Cash, Adopt Bitcoin - a Policy for the Bank of England

Bank of England might just start using bitcoin or other forms of electronic money in order to bring about sustainable financial reforms in the country. It is one of the possibilities discussed during a recently held conference in Northern Ireland. The chief economist at the Bank of England- Andy Haldane proposed the idea while addressing a gathering of business owners. Haldane is one of the leading members in Bank of England's monetary policy committee and the views expressed by him during the speech was completely opposite to what the Bank of England's governor Mark Carney had earlier....

The Great South African Bubble

A recentarticle in Forbes caused a stir. The piece was entitle "A Guide to South Africa's Economic Bubble and Coming Crisis". The article lays out the economic case that current South African economic growth is illusory: fuelled by 'hot money' and a resulting credit bubble that is ready to pop. It is argued that a global economic environment of low interest rates has resulted in the necessary economic distortions to drive this massive credit bubble. Interest rates should represent the price of savings in an economy. People either save or spend their earnings. What isn't spent is saved.....

President of Fed Bank of Minneapolis Expresses Interest in Bitcoin Technology

It's not every day that you hear about a high-level official at the United States Federal Reserve speak of bitcoin. After all, they do have other things like the U. S. dollar to worry about. But the 12th President of the U. S. Federal Reserve Bank of Minneapolis Narayana Kocherlakota expressed interest in the digital currency whilst speaking at a town hall that took place at North Dakota State University, reports Reuters. Kocherlakota views the bitcoin technology as interesting, but doesn't exactly feel the same way when it comes to its use as a currency. Mr. Kocherlakota reportedly....