Cryptocurrency and telecommunications company Telx Technologies announced the launch of the first crypto SIM card wallet that enables transactions via SMS.
According to the company’s Medium post published on Aug. 22, the card allows its users to send cryptocurrencies via SMS with their dedicated crypto phone number. Notably, these transactions do not require a smartphone or an active Internet connection. On the other hand, the system also offers no control over a user’s crypto wallet.
Crypto transactions on “dumbphones”
As the crypto community tried to teach those new to the space during the “Proof of Keys” event in January, there are significant disadvantages in not having direct control over a wallet. More precisely, placing one’s assets in a wallet managed by a third party forgoes the trustless, decentralized and disintermediated nature of the technology involved, according to many crypto enthusiasts.
That being said, having your private keys managed by a third party often enables a higher degree of user-friendliness. Telx also mentioned this in its announcement:
“At Telx our goal is to make transacting digital currency as easy and accessible as possible. This means creating solutions that technical and non technical people alike can adopt. We believe there is tremendous synergy between payments and messaging.”
Everything new is well-forgotten old
Per the Medium post, the crypto SIM card is available in over 180 countries, allows unlimited SMS messaging and supports Bitcoin (BTC), Litecoin (LTC), DASH, Zcash (ZEC) and Bitcoin Cash (BCH). To execute a crypto transaction via this service, its user can send an SMS to any phone number.
Lastly, the company promises to prevent SIM swapping and phone number porting, to accept transactions originating only from the proper SIM card, to protect the wallet with a dedicated PIN number and to provide backup keys in case of a theft or loss.
As Cointelegraph reported in May, Sean Coonce, engineering manager at cryptocurrency custodian BitGo, announced that he became a victim of a SIM swapping hack.
China’s digital yuan will eliminate shadow banking: Dovey Wan
Dovey Wan, Founding partner at Primitive Ventures, has been proactive in uncovering China’s crypto-space for the global audience. She recently featured on an edition of the Off the Chain podcast to clarify the misinformation that currently thrives in China. Providing a macroeconomic background, Wan claimed that China has been recording 10% GDP growth over the past 30 years, owing to different business verticals.
To further drive this economy, Wan stated,
“This (Digital Yuan) was not the first time that China’s presidency publicly promoted blockchain. The Chinese government has always been pro blockchain but this time, it’s definitely different.”
Domestically, China has been dealing with shadow banking, a process that involves not showing assets to the People’s Bank of China (PBOC), something that inflates the M2 monetary supply of the nation. Addressing the notion towards cryptocurrencies, Wan highlighted that although there have been restrictions on facilitators (crypto-companies and exchanges), Bitcoin has never been banned in China.
Speaking about China’s involvement in the global crypto-space, Wan said,
“Conservatively, including both mining pools and mining itself, 60 to 70% of the hash power comes from Chinese people.”
Wan also highlighted how China’s pre-existing cashless economy enables faster adoption of cryptocurrencies as the country already possesses the infrastructure to allow the general public to buy Bitcoin using fiat currency on-ramp over applications such as WeChat.
China’s efforts towards creating a controllable and more transparent system will eventually help the country eliminate shadow banking. Wan concluded by stressing on the fact that,
“Everything that will be hosted on the private cloud of the PBOC, is not cryptocurrency. But it will be beneficial for the Chinese citizens as it will eliminate shadow banking.”
Canada’s Largest Bank Mulls Crypto Exchange After Bitcoin Ban — Report
A Canadian bank, which banned its clients from buying Bitcoin (BTC), could now become the first in the country to launch a cryptocurrency exchange.
As innovation economy news outlet The Logic reported on Nov. 11, the Royal Bank of Canada (RBC) is now rumored to be considering the plans.
RBC reportedly planning multifunctional exchange
RBC is the largest bank in Canada by market capitalization, with $661 billion CAD ($499 billion) in assets under management.
According to The Logic, the bank is entertaining the possibility for the exchange to function both for investments and allowing clients to make purchases online and in brick-and-mortar stores.
The news follows a previous report that Canada’s central bank wanted to use digital currency in order to better track consumer spending habits.
“The trading platform would facilitate buying and selling of individual digital coins, including Bitcoin and Ether (ETH), as well as the transfer of funds combining different types of cryptocurrencies,” the publication summarized.
Bitcoin purchases “not allowed”
While little detailed information is currently available, the move would run conspicuously in contrast to RBC’s current modus operandi on cryptocurrencies. Last year, the bank abruptly banned clients purchasing Bitcoin or altcoins with credit and debit cards.
“Effective immediately, RBC will no longer be allowing the use of RBC credit cards for transactions involving cryptocurrency. We regret any inconvenience this may cause,” a notice stated at the time.
Other Canadian banks had previously done likewise, including TD Bank and Bank of Montreal.
Nonetheless, attention has since focused on how authorities will handle the fallout from QuadrigaCX, a local cryptocurrency exchange that imploded in late 2018. While recovery of lost funds is ongoing, users lost a total of around $190 million in deposits.
Former Cumberland and Circle Traders Pool Money for Crypto Prop Trading
Dan Matuszewski remembers the early days of cryptocurrency trading, just a handful of years ago. It wasn’t the possibility of a market correction that worried him. It was the risk that the whole business might disappear.
“There was always a non-zero chance that bitcoin would gap down, die, and never come back,” Matuszewski, 31, said in a phone interview.
Matuszewski, who previously oversaw trading at the cryptocurrency-focused financial company Circle, says he’s now confident enough in the market’s future that he’s teamed up with two partners to pool more than $10 million to start a proprietary-trading firm. They are Bobby Cho, 35, former head of trading at brokerage firm DRW’s Cumberland crypto unit, and Julien Collard-Seguin, 31, a former technology executive at Circle.
According to Cho, the new company, called CMS Holdings, started trading in October. The business is registered in the Cayman Islands and doesn’t manage money from outside investors, he said.
“We deploy strategies much like a hedge fund in the market, except that we’re not structured as such,” Cho said.
The plan is to put 30 percent of the firm’s money into highly liquid cryptocurrencies like bitcoin and ethereum and 40 percent to 50 percent into less-frequently traded tokens and digital assets, Cho said. The rest would likely go into long-term equity investments in the crypto industry, he said.
“The space is evolving very quickly, and it’s not stopping,” Cho said.
Bitcoin’s price has more than doubled this year to about $8,700 each, though it’s still well off the record of about $20,000 reached in 2017.
Said Matuszewski: “It’s a lot safer now, in that it’s probably not going to disappear.”