SCMP’s Bitcoin Daily Report: Standard Bank backing bitcoin?
Top emerging-market bank trialing bitcoin – but will China veto?
Africa’s largest bank, the Johannesburg-headquartered Standard Bank, is reportedly trial running an integrated bitcoin system. According to Coindesk, Singapore-based developers Switchless have created a “fully operational and integrated bitcoin portal system for a large multinational bank”.
Jon Matonis, executive director and board member of the Bitcoin Foundation lobby group, declared: “This picture threatens bitcoin exchanges more than government regulators.”
Although Standard Bank has not confirmed or denied backroom testing, if the report is true – it first surfaced at a London bitcoin conference – it would undoubtedly be a significant coup. The trials will no doubt be of considerable interest to the financial industry, but what about Standard Bank’s major backers?
Since the relationship began, ICBC has been on a buying spree, snapping up Standard Bank’s non-core assets. In 2011, it bought the bank’s Argentina business for US$600 million, while a fortnight ago it agreed to buy a 60 per cent majority stake in Standard’s London-based global markets arm for US$765 million.
After December’s crackdown, experts were divided on whether the central bank would raise objections to the testing of the system.
“I think it is unlikely for the central bank to interfere with other bank’s internal business, despite the ICBC having a holding in the bank,” Hao Hong, managing director of research at Bank of Communications, told Bitcoin Buzz.
“Assuming the PBOC and ICBC were aware of it, the local trends or laws would dictate as Chinese subsidiaries often engage in financial activities and products that are allowed in the foreign market, but not necessarily in China,” said Zennon Kapron, managing director of mainland-based financial research firm Kapronasia. “That being said, I’m sure the PBOC could restrict ICBC’s activities if they wanted to.”
Bocom's Hong cast some doubt on the digital currency’s short-term attractiveness to speculators.
“Bitcoin is a viable payment system, but has been used as a speculative tool. The recent arrest of one its key figures, as well as its trading volatility, may dampen its attractiveness as a speculative object,” he said.
Bitcoin exchanges under ‘massive and concerted attack’: update
“Some websites, as well as users of bitcoin wallet software, will have to update their program with fixes to prevent future attacks, according to Jeff Garzik, a bitcoin software developer told Bloomberg.”
Bitcoin flowers for Valentine’s Day – what else!
The #BitcoinBuzz team will pay a visit to Hong Kong Flower Delivery on one of their busiest days of the year. Valentine’s Day is less than 24 hours away – and a big bouquet of flowers to show your love is a tradition. Some of the florist’s orders have been snapped up and paid in bitcoin already.
We’ll have the full story, photos and video in Friday’s South China Morning Post print edition.
Latest bitcoin price: US$649.51 at 13.27 on Thursday based on prices from BTC-e and Bitstamp
Source: Coindesk
