05 May '13, 5am

Lenders May Create Bitcoin Rivals, Says New Zealand Bank Group

Commercial banks may create digital currencies to rival Bitcoin, the virtual money whose U.S. dollar value collapsed by 46 percent in 24 hours last month, the head of New Zealand’s banking lobby said today. Banks noticed the low cost of international Bitcoin transfers, and some may look to introduce competitors as a cap on issuance constrains the digital currency’s supply, Kirk Hope, chief executive officer of the New Zealand Bankers’ Association, said according to the e-mailed transcript of an interview with TVNZ television. “If it’s not Bitcoin it might be some other type of digital currency that could come into play,” Hope said. The cap on Bitcoin issuance, which limits supply to about 21 million units, “doesn’t mean that some other player couldn’t come into the market, and, you know, that might be a bank.” Created four years ago by a person or group using the name Sato...

Full article: http://www.bloomberg.com/news/2013-05-05/lenders-may-crea...

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