Coin News

Bitcoin startup Abra is one of five blockchain startups to be accepted into the latest FinTech incubator run by Plug and Play.

In an announcement today, Bitcoin exchange Coinbase has announced the beta launch of a new feature that will lead to enabling US customers to purchase bitcoin instantly via debit cards. Coinbase has announced the beta launch of a new feature that will facilitate the purchase of bitcoin(s) instantly with US-based debit cards. The feature is […]

The post Coinbase Initiates Bitcoin Purchase through US Debit Cards appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

Is the tech startup market cratering, or is all the hand-wringing much ado about nothing?

Apparently even those closest to the action can't seem to agree. 

Venture capitalists, startup executives, and industry analysts got into a public Twitter spat on Tuesday after a new report said that overall VC deal volume and capital deployment were both up during the first two months of 2016.  

That report, which was published by industry research firm Mattermark, was quickly seized upon by some industry insiders as evidence that the much-feared tech downturn was not quite the catastrophe-in-the-making it's been made out to be. That in turn, drew fire from others. 

Here are the headline findings, shared by Mattermark CEO Danielle Morrill:

Box's head of strategy and corp dev Villi Iltchev weighed in:

That prompted a quick response from Keith Rabois, a partner at VC firm Khosla Ventures and the former COO of digital payments company Square:

There's been plenty of anecdotal evidence of trouble in the tech industry in recent months, from Fidelity's write-downs of its holdings in hot private companies such as Snapchat and Zenefits, to the layoffs and outright shut-downs of other startups. 

Whether these are isolated incidents or part of a broader trend remains unclear, and the issue is clearly a contentious one.

Josh Elman, another valley VC who has worked at Facebook and Twitter, pointed out that the 2016 investments included in Mattermark's data may have been announced recently, but were actually struck much earlier.

Meanwhile, Rabois' comments on the topic quickly turned into a dispute with Mattermark over the quality of the data:

At one point Rabois even tried to make his case by appearing to argue that he was basically infallible:

The Twitter debate may not have settled much about the current state of the tech industry, but it highlighted the level of uncertainty even within the industry itself. 

SEE ALSO: 'The Great Reset': Venture capitalists and startups have shifted from greed to fear

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The BI Intelligence Content Marketing Team covers news & research we think you would find valuable.

We could soon have a new leader in the credit card world.

Chase is in position to overtake American Express as the largest credit card issuer in the U.S. by sales once Amex's split from Costco closes, according to data from JPMorgan Chase's Investor Day presentation.

Amex officially sold its Costco co-brand portfolio to Citigroup on Monday after a full year preparing to make the move. The deal is expected to close in June, at which time all eligible Costco Amex cards will be transferred to Citibank accounts that run on Visa's network.

Chase and Amex are headed in opposite directions if the data is any indication. Chase's sales volume has grown by 9% since 2012, and the company had 39% more new co-brand accounts in 2015 than it did in 2012.

Amex did increase its purchase volume by 6% in 2015, but it will soon transfer millions of cardholders and $80 billion in volume to Citi because of the Costco situation.

That loss could drop Amex into second place. Amex had volume of $492 billion without Costco in 2015, while Chase had $496 billion.

This is a situation that bears watching but however it plays out, one thing is clear: the world of payments continues to change. Established players are shifting, and even how we pay for goods is evolving.

And the more complex the payments world becomes, the harder it is to stay on top of it.

To that end, Evan Bakker and John Heggestuen, analysts at BI Intelligence, Business Insider's premium research service, have compiled a detailed report on the payments ecosystem that drills into the industry to explain how a broad range of transactions are processed, including prepaid and store cards, as well as revealing which types of companies are in the best and worst position to capitalize on the latest industry trends.

Here are some key takeaways from the report:

• 2016 will be a watershed year for the payments industry. Payments companies are improving security, expanding their mobile offerings, and building commerce capabilities that will give consumers a more compelling reason to make purchases using digital devices.
• Payments is an extremely complex industry. To understand the next big digital opportunity lies, it's critical to understand how the traditional credit- and debit-processing chain works and what roles acquirers, processors, issuing banks, card networks, independent sales organizations, gateways, and software and hardware providers play.
• Alternative technologies could disrupt the processing ecosystem. Devices ranging from refrigerators to smartwatches now feature payment capabilities, which will spur changes in consumer payment behaviors. Likewise, blockchain technology, the protocol that underlies Bitcoin, could one day change how consumer card payments are verified.

In full, the report:

• Uncovers the key themes and trends affecting the payments industry in 2016 and beyond.
• Gives a detailed description of the stakeholders involved in a payment transaction, along with hardware and software providers.
• Offers diagrams and infographics explaining how card transactions are processed and which players are involved in each step.
• Provides charts on our latest forecasts, key company growth, survey results, and more.
• Analyzes the alternative technologies, including blockchain, which could further disrupt the ecosystem.

To get your copy of this invaluable guide, choose one of these options:

1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
2. Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the payments ecosystem.

Join the conversation about this story »

Ever since the arrest of Ross Ulbricht in San Francisco, online darknet marketplaces have remained a formidable means by which individuals can procure illegal goods. Authorities, well-aware, have investigated and made arrests in the time since Ulbricht’s trial. During that time, discussion has increased regarding the actual anonymity provided by the darknet. As has been […]

The post European Authorities Shut Down Five Darknet Websites appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

XBT Provider, a Swedish company that has launched the world's first Bitcoin- backed instrument on a regulated exchange (Nasdaq Nordic) is...

The post XBT Provider Sees Growing Bitcoin Demand: "Private Blockchain Hype Will Translate to Higher Bitcoin Prices at a Later Stage" appeared first on Bitcoin Magazine.

Kookmin Bank, one of South Korea's largest commercial banks and one of the four largest financial institutions in the country by asset...

The post Korea’s Kookmin Bank Partners With Coinplug to Develop a Blockchain Forex Application appeared first on Bitcoin Magazine.

The BI Intelligence Content Marketing Team covers news & research we think you would find valuable. This topic was originally highlighted and sent to subscribers of the Payments Insider Newsletter.

The divorce between American Express and Costco is official.

Amex officially sold its Costco co-brand portfolio to Citigroup on Monday after a full year preparing to make the move. The deal is expected to close in June, at which time all eligible Costco Amex cards will be transferred to Citibank accounts that run on Visa's card network.

Amex expects to earn approximately $1 billion from the sale, but Jaime Toplin, research associate for BI Intelligence, Business Insider's premium research service, notes that the financial services company would likely take major losses from this Costco situation in the long term.

Costco accounted for 10% of Amex cards in circulation and 8% of all Amex billed business in 2014. The $1 billion up front will cushion the blow, but Reuters reports that the Costco sale would affect Amex profits for two years.

Amex does have some time to prepare thanks to the June closing date. Furthermore, the firm is working on restructuring in the longer-term, including a plan it recently announced to slash approximately $1 billion in costs in the next few years.

The company plans to streamline its organization, trim redundant areas, adjust its processes to focus on worldwide initiatives, and change policies to create even greater expense control. All of these measures could be a way for Amex to prepare for the Costco losses before they hit.

The split between Amex and Costco is yet another major shift in the world of payments processing. The ways in which we pay for goods is dramatically changing, and developments like this one make it necessary to keep up with this rapidly changing environment.

Evan Bakker and John Heggestuen, analysts at BI Intelligence, have compiled a detailed report on the payments ecosystem that drills into the industry to explain how a broad range of transactions are processed, including prepaid and store cards, as well as revealing which types of companies are in the best and worst position to capitalize on the latest industry trends.

Here are some key takeaways from the report:

• 2016 will be a watershed year for the payments industry. Payments companies are improving security, expanding their mobile offerings, and building commerce capabilities that will give consumers a more compelling reason to make purchases using digital devices.
• Payments is an extremely complex industry. To understand the next big digital opportunity lies, it's critical to understand how the traditional credit- and debit-processing chain works and what roles acquirers, processors, issuing banks, card networks, independent sales organizations, gateways, and software and hardware providers play.
• Alternative technologies could disrupt the processing ecosystem. Devices ranging from refrigerators to smartwatches now feature payment capabilities, which will spur changes in consumer payment behaviors. Likewise, blockchain technology, the protocol that underlies Bitcoin, could one day change how consumer card payments are verified.

In full, the report:

• Uncovers the key themes and trends affecting the payments industry in 2016 and beyond.
• Gives a detailed description of the stakeholders involved in a payment transaction, along with hardware and software providers.
• Offers diagrams and infographics explaining how card transactions are processed and which players are involved in each step.
• Provides charts on our latest forecasts, key company growth, survey results, and more.
• Analyzes the alternative technologies, including blockchain, which could further disrupt the ecosystem.

To get your copy of this invaluable guide, choose one of these options:

1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
2. Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of payments processing.

Join the conversation about this story »

NEW YORK (Reuters) - Digital Asset Holdings LLC, a New York-based startup focused on blockchain technology in the financial services industry, said on Tuesday that Sallie Krawcheck, former head of Bank of America Wealth Management, has joined the company's board.

Krawcheck also served as the chief financial officer of Citigroup. Currently, Krawcheck is the CEO and co-founder of Ellevest, a digital investment platform for women to be launched this year, according to statement from Digital Asset.

Blockchain, the underlying technology behind bitcoin, is a digital tool for recording and verifying transactions. The technology makes it easier to create cost-efficient business networks without requiring central control.

Earlier this year, Digital Asset completed a fund-raising campaign in excess of $60 million from a range of strategic investors including Goldman Sachs and IBM. As part of the round, Digital Asset announced that it was expanding its board of directors.

(Reporting by Gertrude Chavez-Dreyfuss; Editing by Tom Brown)

Join the conversation about this story »

A legislator in Japan’s ruling political party has called for bitcoin purchases to be exempt from an 8% consumption tax, a regional news source says.

Japan is the only one among seven major industrialized nations to tax bitcoin. There is an increasing number of critics within the country arguing that the consumption tax hurts Japan’s competitiveness, writes Toshihisa Kinouchi of Nikkei. While Japan currently ponders deeming bitcoin and virtual currencies as currencies similar to conventional fiat currencies, there is another […]

The post Japan Debates Its Bitcoin Tax appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

Bitcoin price declines reluctantly and has not achieved a new high since Sunday. Successive lows are printing in the chart and the bulls seem to be using each as an enthusiastic buying opportunity, making for a jagged decline. This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a […]

The post Bitcoin Price In Choppy Waves appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

The Melrose Police Department in Massachusetts fell prey to ransomware that spread was triggered from a malicious email opened by a member of the department. To regain access and control of the files encrypted by the cryptographically-coded ransomware, the Police Department paid one bitcoin in ransom, reports have concerned. The attack came in the form […]

The post Melrose Police Pay 1 Bitcoin to Get Rid of Ransomware appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

One of the great things about running a Bitcoin and blockchain company that processes payroll for global workforces is that there is a frequent need for travel. The downside to this type of travel is that wifi is never too far away, even on airplanes, and I end up working all the time. I haven’t taken an actual vacation in over two years, but it’s hard to complain when you love what you do. Nevertheless, I set out to change that.

The second annual Satoshi Roundtable, a group of blockchain technology developers, investors and early adopters, discussed important issues such as block chain capacity and the scalability of bitcoin this past weekend, but according to posted comments, they did not reach any conclusions during the invitation-only event. The roundtable was limited to 75 members.   Bruce Fenton, […]

The post Developers Share Views On Bitcoin Capacity At Second Satoshi Roundtable; Closed Event Draws Criticism appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

Two U.K. men who pleaded guilty to selling drugs on the Silk Road Marketplace website were each sentenced to five years in jail, according to The Express & Star in the U.K. Richard Hiley worked with Peter Ward, who was reported to be a major figure on the dark web and used the name PlutoPete. Ward […]

The post Silk Road Drug Dealers Get Combined 10 Years In The U.K. appeared first on CCN: Financial Bitcoin & Cryptocurrency News.

South Korea’s securities exchange, the Korea Exchange (KRX) is developing a blockchain platform to link sellers and buyers to trade securities directly. Korea’s stock exchange operator is reportedly seeking to launch a platform powered by blockchain technology to stir up the off-board trading market that will also enable the trading of non-listed securities, often exchanged […]

The post Korean Securities Exchange Building Blockchain Trading Platform appeared first on CCN: Financial Bitcoin & Cryptocurrency News.