The Central Bank of Canada Exploring a Digital Currency

Another central bank, The Bank of Canada, has been researching the possible issuance of digital currency.

Idea was presented by Stephen Poloz, the governor of the Bank of Canada, as well as the central bank’s board of directors. It would be a two-year research project as to whether the bank should issue its own digital currency. According to them, a central bank-issued digital currency would offer “all the benefits” of central-banked backed assets and “all the convenience and security of wireless, electronic payments.”

“We need to innovate to stay in the game,” they stated, adding that “Cryptocurrencies may become a direct threat to our ability to implement monetary policy and lender of last resort (LOLR) role.”

They further stated that “the proposed digital currency could also help authorities collect more information. “Personal details not shared with the payee, but could be shared with police or tax authorities.”. (Positive)

CFTC Files Lawsuit Against $11M Ponzi-Like Cryptocurrency Scam

The United States Commodity Futures Trading Commission (CFTC) has announced the filing of a civil enforcement action against Nevada-based Circle Society.

Defendants guaranteed investors 300% return

On Oct. 16, the CFTC announced that it was charging Circle Society and its owner, David Gilbert Saffron, with “fraudulent solicitation, misappropriation, and registration violations relating to an $11 million binary options scheme.”

According to the charges, the defendants misappropriated at least $11 million worth of Bitcoin (BTC) and U.S. dollars from individuals in the United States to “trade off-exchange binary options on foreign currencies and cryptocurrency pairs, among other things.” CFTC Chairman Heath P. Tarbert said:

“Fraudulent schemes, like that alleged in this case, not only cheat innocent people out of their hard-earned money, but they threaten to undermine the responsible development of these new and innovative markets. America must be a leader in this space, and we will only succeed if these markets have integrity.”

The defendants are said to have duped at least 14 people into joining a pool operated by Circle Society, a fraudulent entity created by Saffron, which guaranteed up to 300% returns. Saffron is alleged to have retained the participants’ funds in his own personal cryptocurrency wallet and used them to pay new participants “in the manner of a Ponzi scheme.”

The CFTC will seek civil monetary penalties, restitution, rescission, disgorgement of ill-gotten gains, and trading and registration bans, but is aware that there might not be sufficient funds or assets to cover all the losses. (Negative)

NBA Basketball Team Sacramento Kings Launches Crypto Collectibles

The Sacramento Kings NBA basketball team has partnered with CryptoKaiju to launch crypto-collectibles.

On Oct. 16, the Sacramento Kings announced a new collaboration with the creator of Ethereum-based Kaiju toys, CryptoKaiju. The companies will give away 100 limited-edition Kaiju collectible toys throughout the 2019–2020 basketball season.

Each collectible is backed by a non-fungible token, meaning that no two are the same. 15 of these toys will come with a unique experience or prize, such as courtside seats, VIP tours, and signed merchandise, among others. Ryan Montoya, Sacramento Kings CTO, said:

“We are thrilled to bring these unique, limited-edition collectibles and immersive experience to our fans. We are always looking for ways to be on the leading-edge of enhancing fan interaction, and this partnership with CryptoKaiju is an exciting opportunity to continue to employ technology that delivers innovative products and content to our fans.”

The collaboration follows last week’s news that the NBA basketball team is launching a blockchain-powered rewards program within its gaming app Call the Shot, which will also be available in the upcoming season. (Positive)