Welcome to a new and exciting feature of the blog: The Weekly Financial Digest. Published every Friday, this think piece aims to pick up on the week’s top global financial news, with a particular emphasis on Bitcoin. The reasoning behind this is to provide our community with a quick and easily digestible summary of the most important developments of the past 7 days. Links to sources and more detailed information will always be provided for further reading.
So as the weekend looms large and monday is reduced to a blurry memory lets look back at the week’s most important headlines.
Gold Reaches 5 Year Low
The price of gold fell significantly this week, reaching a 5 year low on tuesday. Closing at $1,104,60 an ounce, the price of the precious commodity fell below $1,100 for the first time since March 2010. This marks the nadir of a 10 day downward spiral for gold, the longest losing streak since 1996, and represents a 40% decline from its peak in 2011. Key reasons behind the steady decline are China’s lower gold reserves, weak inflation and the Greek bailout.
Bitcoin Powered BitX and Factom Raise Funding
BitX, the Singapore-based Bitcoin exchange, has successfully raised US$4 million in its Series A funding round. The Cryptocurrency startup provides an exchange, merchant integration and its own Bitcoin wallet to its global customer base. BitX CEO Marcus Swanepoel said:
“We’ve been seeing very strong growth across the markets we operate in.”
InsideBitcoins describes BitX as “making money frictionless and universally accessible by building an open, intelligent global platform that leverages Bitcoin and the Blockchain technology.” The good news was followed up a day later by Factom which managed to raise $1.1 Million. Factom Foundation chairman David Johnston said that:
“The community has been very supportive of Factom Inc and I believe people are encouraged to see recent inroads made with large enterprise groups using the blockchain.”
Russia Faced With Tough Challenges
With oil and gas revenues declining steeply over recent weeks, Russia is facing a mounting fiscal challenge. According to the global banking service Unicredit:
“Russia is going to be in a very difficult fiscal situation by 2017. By the end of next year there won’t be any money left in the oil reserve fund.”
The bad financial news comes on the back of Sberbank’s prediction that Gazprom stands to lose a third of its revenues if things continue. This would bring Gazprom’s revenues from $146bn in 2014, to as low as $106bn by the end of the year, seriously weakening the country’s economic base.
Citibank Ordered To Pay $700 million
Citibank has been ordered to pay $700 million dollars back to its customers after the Consumer Financial Protection Bureau judged the Bank to have misrepresented the costs of its products. Further, Citibank was found guilty of failing to provide the fraud and personal information protection it claimed to be offering, leaving around 8.8 million of its customers out of pocket.
First Global Decentralized Exchange Launches In Over 70 Countries
Coinffeine, an exciting new Bitcoin exchange has launched in over 70 countries, making it the largest international expansion program ever undertaken by a bitcoin startup. The global startup is particularly interesting because it works on a P2P model based on a zero-trust deposit system. This gives users full control over their Bitcoin, while enabling completely private trading.
Coinffeine’s innovation may well leave centralised exchanges worried for their future, as the decentralized nature of the new Bitcoin marketplace is sure to resonate with the philosophical roots of many Bitcoin users. CEO Alberto Gomez Toribio said:
“To use Coinffeine is as simple as using LocalBitcoins, but as powerful as using Coinbase or BitStamp.”
You’re All Set On Financial News!
Thanks for reading the first edition of the Weekly Financial News Digest. For any financial news stories, neglected topics or suggestions, please message me @grundy_10. If you have any other questions, would like to find out more about Bitcoin, or want to take out a loan, please visit Bitbond.com
Read of the week: http://www.coindesk.com/opinion-why-bitcoin-should-embrace-stupidity/