US multinational financial services corporation American Express (AMEX) has appeared to join the traditional finance entities publicly criticizing cryptocurrency.
Energy Usage: Fact Or F.U.D?
100% Fear, uncertainty and doubt.
As social media users October 15, the company recently “promoted” a by Bloomberg’s TicToc Twitter-based news portal which claimed the cryptocurrency industry “is using more energy than all the world’s electric vehicles.”
Beneath the post, which consists of a 100-second video with various figures purporting to compare bitcoin transactions with those of Visa or MasterCard, a message reads:
“Promoted by American Express.”
This, said the Reddit user who spotted and reproduced the tweet, constituted “anti-crypto propaganda.”
AMEX: bitcoin ‘Likely To Become Important’
It was not immediately clear why AMEX specifically endorsed the TicToc episode. The company has not adopted a wholly-critical stance on cryptocurrency, an on its future use in the global economy drawing more balanced conclusions.
“Using bitcoin thus exposes companies to FX risk, which can be significant because of bitcoin’s exchange rate volatility, and for which at present there are few hedging tools,” it reads.
“However, as cryptocurrencies and blockchain-based payment systems are more widely adopted, bitcoin seems likely to become an important part of an ever-changing global payments landscape.”
The “propaganda” theory meanwhile continues to hold force this year after incidents involving several international banks.
The Netherlands’ Rabobank and most recently Danske Bank have faced multimillion-dollar money laundering charges despite adopting a hostile approach to cryptocurrency – based on claims it is too susceptible to money laundering.
The irony was not lost on crypto industry commentators, one noting that a single Danske Bank branch laundered more money than made up the entire cryptocurrency market cap.
AMEX has yet to suffer a similar fate, its last major money laundering scandal in 2007 earning it a $65 million fine after executives failed to spot the signs of illicit funds from the drugs trade.
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The avalanche of recent news on the Tether (USDT) stable coin continues today, as the opaque cryptocurrency company has reportedly secured its latest banking relationship with the Nassau-based Deltec Bank.
Deltec Bank & Trust Limited provides various financial services, and a Bloomberg last year stated that the former chief investment officer managed $5 billion for Deltec.
This new banking relationship comes shortly after Tether’s previous arrangement, with Noble Bank of Puerto Rico, was ended under unknown circumstances. Bloomberg reported that “while Noble faced an audit from Puerto Rico’s main bank regulator last year that raised concerns […] it hasn’t been faulted publicly”.
Tether is loosing market share in stable coins battle.
Concerns over Tether, along with its sister company and crypto asset exchange Bitfinex, are suspected to have caused dramatic price movements in the preceding days, especially for crypto assets trading against Tether, which traded at historic premiums.
Tether and Bitfinex are registered in the British Virgin Islands and share management and investors. The companies together have a chequered history, largely because Tether has never allowed a legal audit which confirms the existence of U.S. dollars equal to printed Tether tokens.
Both companies were previously served by Wells Fargo & Co bank, and both were subpoenaed by the Commodities and Futures Trading Commission, which agency plays a cardinal role in the regulation of crypto assets in the U.S.
Tether is also finally facing serious competition in the stable coin space, as a rash of listings of new stable coins has come in the last couple of days, on the OKEx and Huobi exchanges. Paxos, True USD, Gemini Dollar, and Circle’s USDC will offer more options to the crypto asset industry for quickly moving dollars.
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