Israeli news broadcasters are buzzing about unearthed footage of Prime Minister Benjamin Netanyahu speaking off the cuff about bitcoin. Are banks going to eventually disappear? Yes. The truth is that this is what’s pushing bitcoin prices upwards,” Netanyahu said. He also said banks won’t disappear tomorrow, and that the current state of explosive bitcoin market growth can’t last forever. However, in the long term, it appears the Israeli leader believes technologies like bitcoin will supplant centralized institutions. He told reporters banks traditionally establish trust while protecting people against risk. Those days, in his opinion, are numbered. The outspoken leader also spoke about the role of banks, the report said, explaining they were created and continue to exist to ensure transactions between two parties are valid and secure. Banks, not to mention governments, continue to control how money is spent and continue to benefit from that control, at the cost of the transacting parties, he said.
Goldman Sachs Group chief executive officer Lloyd Blankfein tweeted that his firm is examining the cryptocurrency. Other global investment banks are looking into facilitating trades of bitcoin and other cryptocurrencies, according to industry consultants. Bitcoin has surged more than 300% this year, drawing the attention of hedge funds and wealthy individuals.
Indeed, several other digital currency start-ups with operations in Tel Aviv already have valuations in the tens and hundreds of millions, including Bancor, which raised around $153 million in its ICO this summer, and the Stox financial market prediction platform, which raised around $33 million around the same time. In the video on Twitter, Netanyahu probably estimated the current rise in the bitcoin price as a sign of the potential of the number one crypto currency to cause the death of traditional banks.
The new comes a month after Israeli financial watchdog – the Israel Securities Authority (ISA) – said that it is seeking to ban any company that has a major involvement in bitcoin trading from the Tel Aviv Stock Exchange. The central bank, Baudot-Trajtenberg said, was studying the issue of virtual currency but not much could be learned from what exists globally since no regulator anywhere in the world had issued guidelines to the banking system on how to act in relation to customers’ activity in virtual currencies.
Nevertheless, he also questioned the Bitcoin’s ability to carry on progressing at such as a surprising rate. For two years, the Knesset has looked into how to revoke the use of cash, according to TheMarker. Various constituencies in Israel, which are more disposed to traffic in the black market, have pressured their politicians to hinder the move. Matt C – it took me 3 days for verification on coinbase. But it came thru. On coinbase I had to redo photo verification a 2nd time. Somehow it took 30min the second time around. While 1st time took forever, maybe there was a glitch and upload didn’t get saved.