Coin News

This article originally appeared on Bitcoin Magazine.

This article originally appeared on Bitcoin Magazine.

On June 23, CNBC Fast Trader hosted a show dedicated to presenting the “Bitcoin Funeral,” a witty introduction to BKCM founder and cryptocurrency investor Brian Kelly’s discussion on the recent bitcoin correction and its future price trend. Three Reasons why Bitcoin Isn’t Dead On CNBC Fast Trader, Kelly outlined three major reasons bitcoin will recover … Continued

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• Michael Novogratz's merchant bank Galaxy Digital has access to hundreds of millions of dollars to invest in crypto companies. 
• Its venture arm is eyeing companies that are building infrastructure solutions to lure Wall Street to the market for digital coins.

Famed hedge funder-turned-crypto enthusiast Mike Novogratz launched merchant bank Galaxy Digital earlier this year and its venture capital arm is already hard at work.

Business Insider has learned that Galaxy, which has businesses in asset-management, trading, and investing, has made a significant number of investments in the market for digital coins which have not yet been disclosed publicly.  

People familiar with the firm's operation said that the principal investment team, which staffs four people, has invested in high-volume ICO projects and has a significant portfolio of early stage ventures. 

The firm already announced it led a $15 million round in AlphaPoint, a New York firm that helps companies launch their own digital tokens, but other investments by Galaxy remain under wraps. 

Leading the unit's efforts is Sam Englebardt, a venture capital veteran who joined Galaxy in 2017. Greg Wasserman, a former vice president at Goldman Sachs, joined the firm as co-head of the venture unit in February. Chris Zioli, formerly of Insight Ventures, also is on the team. 

Galaxy has two pools of capital, including a $325 million EOS fund, which is specifically targeting companies that aim to operate off the EOS blockchain. Its second pool comes from the firm's balance sheet, which is in the "hundreds of millions," according to the people. 

The firm's focus is to invest in infrastructure, meaning companies that are building products to help bridge the gap between Wall Street and crypto, like custody solutions and trading technology. 

On Wall Street, custody banks such as State Street and BNY Mellon safeguard large amounts of wealth for other institutions while abiding by strict regulatory requirements. Some entities offer such solutions in crypto. BitGo, another crypto tech provider, is working on a qualified custodian product. Paxos, a New York-based firm, holds a trust-company charter in New York.

CMT Digital, another crypto venture capital firm, is looking at similar opportunities to Galaxy, said Colleen Sullivan, a partner at the firm. 

"We look for things missing in the market," she added. "What can help usher a wave of institutional capital. That's better infrastructure and we definitely need custody solutions to mature."

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On June 23, the cryptocurrency market demonstrated another minor short-term correction, as $13 billion were wiped out of major digital assets such as Bitcoin, Ethereum, Ripple, Bitcoin Cash, and EOS. EOS recorded the largest loss against the US dollar amongst major cryptocurrencies, dropping by more than 11 percent overnight. Bitcoin, Ethereum, and Ripple recorded a

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On June 23, the cryptocurrency market demonstrated another minor short-term correction, as $13 billion were wiped out of major digital assets such as Bitcoin, Ethereum, Ripple, Bitcoin Cash, and EOS. EOS recorded the largest loss against the US dollar amongst major cryptocurrencies, dropping by more than 11 percent overnight. Bitcoin, Ethereum, and Ripple recorded a

The post $13 Billion Wiped Out as Cryptocurrency Market Takes Another Beating appeared first on CCN

• Central banks around the world have been looking at how they might introduce or use national cryptocurrencies.
• Thomas Moser, an alternate member of the Swiss National Bank's governing board, told Business Insider that central banks have become "sceptical" of introducing national digital currencies after initial interest.
• Moser says bankers are wary of the new economic risks or knock-on effects introducing a national cryptocurrency might have.

ZUG, SWITZERLAND — Countries are unlikely to introduce national cryptocurrencies any time soon, according to a senior Swiss central banker.

Thomas Moser, an alternate member of the Swiss National Bank's governing board, told Business Insider that central banks around the world have become "sceptical" of introducing national digital currencies after initial interest.

"In the beginning, there was a lot of interest and enthusiasm about issuing their own national cryptocurrency but I think, in the meantime, that enthusiasm has slowed again because of the implications it would have for financial stability," Moser told Business Insider.

"The whole technical issue, which excited everyone, really takes second place to this conceptual policy issue. The mood now is: everyone is monitoring it, some are experimenting with it, heavily, but I think everyone is waiting for someone else to do it first so we can."

Still, Moser said he would not be surprised if national cryptocurrencies emerged in the longer term.

"It to some extent makes sense to have an electronic version of the banknote but the implications are quite big," Moser told Business Insider at the Crypto Valley Conference this week.

"The advantages are relatively small but the unknown risks are potentially large so I think the balance is to be cautious."

The likes of the Bank of England and the Bank of Canada have been experimenting behind closed doors with how they might use cryptocurrencies and blockchain technology. Sweden is also touted as a possible early adopter, with talk of an e-krona, and Japan is pursuing the "J-coin."

Moser said that after an initial wave of enthusiasm, banks had become "sceptical" of cryptocurrencies due to the economic implications of having digital central bank money. He gave the example of how digital money could potentially exacerbate bank runs.

"It’s kind of cumbersome to have all your money, all your savings in bank notes. It’s much easier if you can just switch it or have an account with the Swiss national bank," he said. "Then it becomes very volatile — in good times everyone has their money with the banks to earn interest, in the bad times, everyone has it on their devices. There are the things we need to think about how we would handle.

"You basically compete with bank accounts when you issue digital central bank money. You have to think through how you would do monetary policy, how the transmission channel is changing, it’s just very complicated."

Bitcoin was originally created by programmers who wanted to do away with central banks but Moser said the Swiss National Bank was not against the idea of digital currencies despite this.

"The Swiss national bank officially is basically neutral towards cryptocurrencies," Moser said. "We are not worried, we don’t mind."

SEE ALSO: Sweden could be the first economy to introduce its own cryptocurrency, called the e-krona

DON'T MISS: Japan wants to launch a new digital currency: J-Coin

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The Bank of England remains bearish on bitcoin, but the central bank has announced plans to overhaul its settlement system to allow private payment systems, including those based on blockchains and other types of distributed ledgers, to interface with the platform. Bank of England Governor Mark Carney announced the plans in a speech delivered on

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