MAR 3 DIGEST: Google Announces 'Android Pay,' New 'Rebittance' Service in Latin America

ECB report suggests that digital currencies can "jeopardize financial stability," Coinnect launches new "rebittance" in Argentina and Mexico, Google announces Android Pay, and more top stories for March 3, 2015.

Digital Currencies Can 'Jeopardize Financial Stability,' Says ECB

The European Central Bank had released an in-depth analysis on "Virtual Currency Schemes," suggesting that digital currencies could be a threat to the ECB's ability to function.

The report reads:

"Although VCS can have positive aspects in terms of financial innovation and the provision of additional payment alternatives for consumers, it is clear that they also entail risks.

[...]

Conceptually, VCS could jeopardise financial stability. However, it was considered that they were inherently unstable, but did not jeopardise financial stability given their limited connection to the real economy (i.e. the exchange rates and the exchange markets), the low volumes traded and the lack of wide user acceptance."

New 'Rebittance' Service to Latin America

Volabit, in collaboration with SatoshiTango, launched a new money transfer service dubbed Coinnect.

Described as a "Bitcoin-powered international money bridge for remittances and global commerce," Coinnect allows users to send and receive funds from/to Argentina and Mexico.

Speaking with CoinDesk, SatoshiTango CEO, Matias Bari, stated:

"[Users] don't need to know anything about bitcoin. We took bitcoin out of the equation and moved it to the back end. So consumers are just paying in Argentine pesos, executing the transaction and someone is receiving Mexican pesos on the other side of the world."

Peter Thiel Comments on Bitcoin

Paypal co-founder and angel investor, Peter Thiel, shares his insights about the state of Bitcoin at the Buttonwood Gathering 2015, an international conference that focuses on the future of finance and global economic growth, reported CCN.

While Thiel believes Bitcoin had succeeded in creating a new currency, the entrepreneur said the digital currency isn't a threat to the US dollar. He stated:

"As long as you have to have dollars to pay your taxes, if you don’t have dollars to pay your taxes, people with guns will come after you and lock you up, or do something bad to you. You can use Bitcoin to pay your taxes. You still have to convert Bitcoins into dollars to pay taxes. So on that level, it doesn’t threaten the dollar as a reserve currency, which is ultimately backed by military/law enforcement power."

Watch Thiel's keynote interview:

 

 

Google Announces 'Android Pay'

Speaking at MWC 2015, Google's SVP of Product, Sundar Pichai, said his company is working on launching Android Pay, a payments framework that will power mobile payments across Android devices, with which developers will be able to leverage as an API framework to build payments into their own apps,