Bitcoin was attempting a comeback Tuesday, March 13, as prices traded close to flat in afternoon action. Earlier in the day, bitcoin fell below the $9,000 mark as investor sentiment weakened.
Here are the headlines you can't miss in cryptocurrencies Tuesday.
Winklevoss Twins Propose Self-Regulation
Noted bitcoin bulls Tyler and Cameron Winklevoss have proposed self-regulation for the cryptocurrency space in a new venture they call the Virtual Commodity Association. In a blog post Tuesday, the twins said, "The promise of virtual commodities and their impact on the future will be profound - but individuals and institutions need to feel safe and secure when transacting. We believe a thoughtful SRO framework that provides a virtual commodity regulatory program for the virtual commodity industry is the next logical step in the maturation of this market."
IMF to 'Fight Fire With Fire'
International Monetary Fund head Christine Lagarde said that regulators ought to use blockchain technology to track cryptocurrencies and the "peril that comes along with the promise" of digital assets. In a blog post for the IMF Tuesday, Lagarde said, "The same innovations that power crypto-assets can also help us regulate them. To put it another way, we can fight fire with fire." Lagarde suggested that blockchain protocols could be used to implement internationally coordinated regulatory efforts to curb the use of cryptocurrencies in facilitating terrorism or money laundering, for example. "Those who have a shared interest in maintaining safe online transactions need to be able to communicate seamlessly. The technology that enables instant global transactions could be used to create registries of standard, verified, customer information along with digital signatures," she wrote.
Action Alerts Plus holding JPMorgan Chase & Co. (JPM - Get Report) head of blockchain Amber Baldet said the difficulties the bank faces in developing its Quorum private blockchain network aren't all that different from anyone else building a blockchain protocol for the public. "These problems really aren't so far apart, it's just that people are trying to solve the problems in different ways," Baldet said at an ethereum conference in Paris. The Quorum network is based on a fork of ethereum software, and Baldet said that's informed her work significantly. "I spend a lot of time talking about ethereum and cryptocurrency and open blockchains to enterprises, businesses, central banks and corporates," Baldet said, according to an account from Coindesk. "I don't spend a lot of time going the other direction."
Bitcoin Like 'Gambling in a Casino'
Blockchain-based digital tokens are not the answer society has been looking for as it relies less and less on cash, according to two European policymakers. In a report co-authored by European Central Bank executive board member Benoit Couere and Switzerland Bank for International Settlements Market Committee member Jacqueline Loh, the experts wrote that cryptocurrencies are rarely used to price goods and are subsequently useless for making payments. As a store of value, digital assets are like "gambling in a casino," the authors wrote. "While bitcoin and its cousins are something of a mirage, they might be an early sign of change, just as Palm Pilots paved the way for today's smartphones," they added. The piece conceded that cash will not forever be king, but suggested current electronic options aren't totally viable.