My Reluctant Education in Bitcoin: Fully Charged

LAGOS (Capital Markets in Africa) – While markets as a whole have been pretty boring this year, cryptocurrencies have been anything but. I, along with a vast majority of the population, have avoided thinking about this super-complex world for as long as possible. But I’ve finally forced myself to make the dive. And it looks like a lot of people have as well. Even my boxing coach recently asked me if he should buy bitcoin or ethereum. As a result of that surge in interest, executives at the biggest banks—some perhaps reluctantly—are starting to weigh in.

First, it was Jamie Dimon. At a conference last month, the JPMorgan CEO told attendees that if a trader at his firm began trading in bitcoin, “I’d fire them in a second. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous.”

Then Goldman Sachs issued a report. The bank said that it’s talking to cryptocurrency experts and is in the process of deciding how to handle the bitcoin phenomenon.

On top of that, last week marked the kick-off of banks earnings season, just as bitcoin reached a new high above $5,000. JPMorgan pared back some of its CEO’s earlier comments. “We are very open-minded to the potential use cases in the future for digital currencies that are properly controlled and regulated,” Chief Financial Officer Marianne Lake said on a conference call after the company released its earnings.

Dimon then declined to speak up again. “I wouldn’t put this high in the category of important things in the world, but I’m not going to talk about bitcoin anymore,” the CEO said. But that didn’t last long, since the next day, at an event held by the Institute of International Finance, he went on another rant. The CEO said he could care less about bitcoin, arguing that governments will crush the cryptocurrency one day. He concluded by saying that this was the last time he would talk about it, though I really hope he breaks that promise once again.

Banks will soon start issuing their forecasts for 2018. Perhaps bitcoin will make an appearance? Stay tuned.— Julie VerHage 

And here’s what you need to know in global technology news:
Speaking of cryptocurrencies: Ex-Googlers are working on two new competitors to bitcoin. Developers behind the projects say they’re hoping to solve some of the bitcoin’s thorniest problems.

Facebook is getting into the food delivery game. The social network has a new feature that will allow users buy meals on its website through third-party delivery services or directly from a group of restaurants.

Twitter bots aren’t likely to be leaving anytime soon. Not even the ones trying to influence elections.

The race is on. Amazon is starting to make its own sportswear,  a push into activewear that would bring fresh competition to some of the world’s biggest athletic brands.

Deals in China are done over WeChat. Bankers in using personal accounts on WeChat and QQ — apps owned by Chinese tech giant Tencent — for everything from distributing research to soliciting orders. The practice is flourishing in the world’s second-largest economy.

Source: Bloomberg Business News