With every DM central bank hell-bent on ensuring that the currencies which roll off their printing presses will become ever more worthless with each passing iteration of the global debt monetization ponzi scheme, and with calls growing louder to ban hard currency altogether in an effort to remove the effective lower bound and thus make it possible for bureaucrats to centrally plan every aspect of the economy right down to the micromanagement of people’s spending habits, we suppose now is as good a time as any to make the switch to a medium of exchange not controlled by the Keynesian cabal and where better to go "crypto" than Switzerland which, according to Handelszeitung, is set to open its first Bitcoin bank.
Here’s the story (via Google translate):
Switzerland's financial center is likely to be rich in the near future to one facet. Currently, preparations are underway for the establishment of the first Bitcoin Bank. The reportedly from multiple sources in the financial sector. Corresponding discussions with the Financial Market Supervisory Authority are to take place in these days. To date, there is in Switzerland no bank that offers services with the new digital currency Bitcoin.
The initiators of the project confirmed the facts: "The application for a banking license, we will submit in the next few weeks," says Guido Rudolphi. The IT specialist is one of a group of eight people, which are behind the planned establishment of the financial institution. «First investors are on board, and it runs the search for suitable premises." To which company is which ultimately applied for a banking license, did Rudolphi competitive reasons forequarters not say...
From traditional institutions they first distinguished by the intended clientele. For future customers include about companies that generate income and revenues in Bitcoin and at the same time require access to the traditional banking system. These are examples Bitcoin exchanges, Bitcoin broker, pay providers and software platforms on which the new digital currencies play a role. Until now such companies - although based in Switzerland - the most costly detour via foreign banks go.
There you have it. No longer will Swiss Bitcoin brokers, exchanges, and providers be forced to take a "costly detour via foreign banks," but can instead transact right at home and thus help to create and facilitate what we imagine will be an especially effective tax avoidance system involving the potent combination of Swiss banks and a currency that many people still do not fully understand.
And then there's this:
In London, UBS now officially been experimenting with the Bitcoin technology. And in New York analyzed the Nasdaq to handle stock transactions of IPO candidates on the Bitcoin network.
We suppose the only remaining question is: how quickly will UBS set about rigging Bitcoin just as they have every other currency on the face of the planet?
But don't worry, because our friends at the CFTC are on top of it.
From Commissioner Mark Wetjen:
"I believe what might precipitate more serious consideration of the issue is if someone from the market were attempting to manipulate the bitcoin cash market to benefit a position that they have in a bitcoin-derivative position. CFTC staff would be responsible for investigating and determining whether that activity constitutes a violation of the CEA.”
With the CFTC on the job, what could possibly go wrong?
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Meanwhile, in related news, Xapo is relocating to Zurich:
For the past year, Xapo has focused on building its infrastructure to offer the most secure bitcoin storage service available. Deemed the Fort Knox of bitcoin, we’ve set a new standard in bitcoin security and treasury management to become a global and trusted provider and the leading custodian of institutionally held bitcoin in the world.
To better support and accelerate this focus we are moving our headquarters to the global financial center of Zurich, Switzerland. Our primary deep cold storage vault is also located in Switzerland, and at the request of our expanding global customer base, now is the time to bring our center of operations closer to the heart of our security infrastructure. The country’s regulatory stability, international neutrality and its deep-seated tradition in global finance also factored into the decision. We will retain a small presence in Palo Alto, California to serve our U.S. customers.
While it should be unimaginable that major institutions would hold millions of dollars in cash, many corporations today still follow an analogous practice with respect to bitcoin by using insecure storage techniques like paper wallets or printed key backups.
By contrast, our fiduciaries are protected by our vault, which uses private keys that never touch the client or the internet and are buried deep within geographically dispersed, heavily guarded locations with multi-signature technology for transaction signing. We have customized security protocols to reduce the likelihood of theft through social engineering, phishing or brute force hacks, and offer full insurance in the unlikely event that these systems are compromised.
Bitcoin’s ability to scale hinges on consumer confidence and the development of services that allow people and institutions to easily and securely store and transact in bitcoin, and that’s where our product, partnerships and team will continue to be focused. We look forward to continuing to serve our growing global customer base from our new global home in Switzerland.