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800 Mln XRP Goes to Unknown Wallets From Bitstamp As BitGo Sets Up Secure Storage for the Platform

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  • Yuri Molchan
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    Breathtaking amounts of XRP are sent from Bitstamp to Bitgo wallets as these two crypto companies start collaborating

800 Mln XRP Goes to Unknown Wallets From Bitstamp As BitGo Sets Up Secure Storage for the Platform
Cover image via www.123rf.com
Contents

A short while ago, the Whale Alert Twitter account registered two successional fund transfers of 200 mln XRP each. Several more followed, totaling 800 mln XRP.

The stunning amount of crypto was sent from Bitstamp exchange to different unknown wallets within less than half an hour.

Bitstamp sends 800 mln XRP to BitGo wallets

The Whale Alert account has recorded several blockchain transactions in a row when 800 mln XRP was sent from the Bitstamp exchange to unknown wallets.

XRP 1
Image via Twitter

Three transfers followed: 200 mln XRP, one transaction of 50 mln and another one carried 150 mln XRP.

XRP 2
Image via Twitter

A comment came from the Bitstamp exchange to the discussion under the Whale Alert post. A link in it leads to a recent announcement, saying that BitGo now provides security crypto storage for Bitstamp while the latter conducts asset management.

The crypto community took the Bitstamp’s comment warmly.

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Ripple hires a former Bank of America executive

Earlier, U.Today reported that the crypto giant Ripple had hired a former high-rank executive of BoA and Bitcoin wallet as America’s Head of Regulatory Affairs.

Along with the recently opened office in Washington, D.C., this step shows that Ripple is determined to negotiate with the US regulators.

Also, the Ripple CEO Brad Garlinghouse shared that the head of MoneyGram had called him to say that Ripple should accelerate the implementation of On-Demand Liquidity and XRP usage in new markets.

 

What are your thoughts on the partnership between Bitstamp and BitGo regarding crypto assets storage? Feel free to comment in the section below!

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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Federal Reserve System: Stablecoins Pose Potential Risks to Financial Stability

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  • Vladislav Sopov
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    According to its Financial Stability Report of November 2019, the Board of Governors has warned about the dangers of stablecoins.

Federal Reserve System: Stablecoins Pose Potential Risks to Financial Stability
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Contents

The Board of Governors of the U.S. Federal Reserve System have issued their monthly Financial Stability Report. This special report is dedicated to the profits and risks of "global stablecoins".

Stablecoins: Global System with So Many "Ifs"

First, the Federal Reserve admits to the numerous advantages that stablecoins present as a concept. It has been highlighed that stablecoins are "faster, cheaper, and more inclusive payments could complement existing payment systems". This is in comparison to cases where traditional financial institutions are sophisticated and poorly accessible. Stablecoins can also be managed to eliminate the volatility of cryptocurrencies, which is one of the borders for them to be utilized as the medium for exchange.

Therefore, the "global stablecoin initiatives" like Facebook's Libra can rapidly achieve cross-border adoption. However, the major threat for stablecoins is apparent - the "inability to convert in national currency". The loss of confidence in "pegging" the stablecoin to traditional assets can lead to a run, in which several holders will attempt to liquidate their stablecoins at the same time.

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This dramatic scenario may be caused by "poor design and governance", and can result in severe consequences for international economic activity, asset prices, and financial stability.

Transparency First

The Federal Reserve also outlined in its report that in many cases, stablecoins can be utilized for money laundering, terrorist financing, and other financial crimes. Therefore, the Federal Reserve would require operators of such systems to conduct their Due Diligence, as well as Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to avoid any abuse. Moreover, the problems of disclosure policy and protecting investor data should be of paramount importance for stablecoin issuers:

Disclosures should clearly detail consumer and investor rights and protections, including whether the holder of the stablecoin has any rights to the underlying asset. Issuers should be transparent on how the stablecoin is tied to the underlying asset, has been said in the Report.

Last but not least, the report highlighted that the Federal Reserve, together with the Group of Seven, will closely monitor stablecoin developments as well as all the risks associated with it.

Have anyone ever invested in stablecoins? Do you prefer to use it, or to pay extra fees for fiat gateways? Tell us your story on Twitter!

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About the author

 Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockhain. Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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