In a stunning flip of events, Bitcoin media outlet CoinJournal proclaimed that multi-billion dollar financial organization Barclays has finish off its checking account for being coupled to Bitcoin. As a result, the corporate has determined to right away stop providing coverage of Blockchain comes of banks and monetary establishments.
The CoinJournal team told Cointelegraph.
“We received no official reason on why Barclays have determined to not handle US, however, the account is employed preponderantly for taking payments via advertisers in greenbacks and exchanging these for Bitcoin and paying our employees and overheads victimization Bitcoin.”
The enter the stomach?
For those who don't seem to be accustomed to Bitcoin and its underlying technology Blockchain, Bitcoin is that the most secure and reliable cryptocurrency that has been tested for over eight years. The Blockchain technology is that the backbone of Bitcoin, that permits the network to take care of and record transactions.
Since early 2015, major banks and monetary institutions are making an attempt to vie with Bitcoin by introducing their own freelance Blockchain comes. Reuters estimate that over $ one.5 bln was injected into the Blockchain market by banks. However, the monetary business remains troubled to demonstrate one operating industrial usage of their “private Blockchain networks.”
Because of the pressure from its investors and customers, banks still feel vulnerable by Bitcoin and any company that revolve round the cryptocurrency. this is often the case with CoinJournal, whose account was finish off by Barclays with none previous notice, for being coupled to Bitcoin.
Similar cases emerged in late 2015 and earlier this year in Australia, once national banks and major monetary institutions closed the bank accounts of Bitcoin startups and exchanges for utilizing Bitcoin.
Vague answers
In associate exclusive interview with Cointelegraph, the CoinJournal team expressed that the corporate was offered nothing over a obscure rationalization that it broken the Barclays Terms and Conditions and User Agreement.
It is vital to notice that the core operations of CoinJournal as a Bitcoin media company area unit targeted on journalism, reportage factual news and providing the Bitcoin community with recent data. the corporate itself has little to try and do with commercialism or storing Bitcoin, in contrast to Bitcoin exchanges and pocketbook platforms.
Still, Barclays determined to finish off the checking account of CoinJournal that has been utilised to just accept payments from advertisers to compensate its writers and settle varied overheads.
Oh the irony
Banks like Barclays area unit a region of an oversized syndicate known as R3CEV, additionally remarked because the R3 syndicate, that could be a cooperative of the world’s largest industrial banks and monetary establishments trying into the Blockchain technology.
The syndicate includes a common goal to implement and integrate the Blockchain technology. Despite injecting $ four hundred mln annually, the R3 syndicate is nevertheless to gift a operating image of its by-product technology.
Regardless of competition, banks and monetary establishments should embrace and appreciate the actual fact that their own comes area unit supported the structure of Bitcoin, the initial cryptocurrency. Their comes area unit a reproduction of Bitcoin and that they area unit obligated to pay relation to startups that revolves round the digital currency.
Instead, they're opting to censor innovation, cut back the thought potential of the digital currency and build troublesome atmosphere for startups simply to shed some spotlight onto their personal Blockchain comes.
“Considering our restricted use of Bitcoin, their archaic stance to a really innovative technology is absurd,” the CoinJournal team explained. “As a results of this, we'll not feature content concerning Blockchain comes from banks or consortiums,” it added.
source : https://cointelegraph.com
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