Bank Suspends Polish Bitcoin Exchange’s Accounts

bitcoin-europePolish bitcoin exchange BitMarket.pl has had its bank accounts suspended by Bank BPH.

BPH initially said the suspension was the result of a technical glitch, but later claimed it was due to outstanding debt and lack of credentials, according to BitMarket.pl. The exchange said it discovered its BPH accounts were suspended on 26th January.

BitMarket.pl founder Michal Pleban told CoinDesk that the real reason for the bank’s decision was prompted by a query filed by the local district attorney’s office. The filing revolved around one particular transaction on the exchange, which was allegedly performed with stolen funds.

“For that reason, the bank decided to close all our accounts and refuse our business,” he said.

The exchange never received a notification from the bank or the authorities, according to Pleban. He said he was unable to see the query that eventually prompted the bank to freeze the accounts.

In addition, Pleban said the bank’s compliance team made a mistake by closing the account before it disabled the IT connector. This resulted in transactions being channelled to the already disabled account. The bank said the transactions would eventually be returned to their senders.

CoinDesk has contacted BPH for additional comment on the matter, but no response had been received at press time.

New bank account

Pleban said the exchange has decided to create a new company to take ownership of BitMarket.pl and is seeking to open a new account with a different bank.

He added that the exchange is trying to normalise operations:

“This should take no more than two weeks. In the meantime, we have re-enabled electronic fiat transfers which will be warehoused at the payment processor until a new bank account is opened. We also re-enabled crypto deposits, and all withdrawals are performed normally from my own personal account. Normal (non-electronic) fiat transfers will be re-enabled once a new bank account is established.”

Pleban is also looking into the possibility of taking legal action against the bank, claiming his lawyer is preparing the necessary paperwork.

“I am currently on a quest to find a bitcoin-friendly bank in Poland,” he added.

BitMarket.pl opened in March 2014, promising to offer superior security following a number of attacks on local exchanges.

One of the Largest Bitcoin Exchanges Just Went Dark After Getting Hacked

Edward Tj GeretyJust a few days after reports emerged that the infamous Mt. Gox meltdown was an inside job, one of the biggest, oldest, and most trusted bitcoin exchanges—Bitstamp—just went offline after a security breach. Bitcoin exchanges come and go all the time, but this is different. Bitstamp is supposed to be the reliable one.

A hack is never good news in the bitcoin world, though Bitstamp’s breach sounds like it could’ve been much worse. The company reassured its customers that the hack only affected its “operational wallet,” that is only “a small fraction of customer bitcoins” that were stored on internet-connected servers were vulnerable. The vast majority of Bitstamp’s bitcoin are kept in “cold storage,” servers that aren’t connected to the internet.

This latest bitcoin exchange breach doesn’t have anything to do with the Mt. Gox bitcoin blunder, except for the fact that it sends a message to the world that bitcoin is far from secure. Bitstamp’s CEO referred to his company as “the backbone of the entire Bitcoin industry” last year, and if that statement’s true, that bone has just been broken by a bunch of greedy hackers. This, as the cryptocurrency’s price continues to tumble, is bad news for everybody.

Does Bitcoin deserve Worst Investment in 2014 Award? — I think not!

Bitcoin is worst investment of 2014Bitcoin has been called the worst investment of 2014 after its price dropped by over 50% during the last 12 months.

The unenviable title has been bestowed on the world’s best known and most valuable cryptocurrency by the business website Quartz, which compared the dollar price of bitcoin at the beginning of 2014 to its current value, saying it has declined by 52%.

The title of worst investment of 2014 is given more weight when you consider the huge price drops seen in the price of Brent Crude oil and the price of Russian rouble in recent weeks. Though considering the on-going issues in Russia in the last 24 hours, bitcoin could potentially lose its title before the end of the year.

However if you take into account that bitcoin was trading at over $1,160 in December last year, the fall to its current value of around $330 is even more dramatic.

Throughout 2014 bitcoin’s price continued to fluctuate wildly on a day-to-day basis with hundreds of companies being founded on the back of the cryptocurrency, driving interest in bitcoin and its potential.

According to data obtained by Reuters, many of the bitcoin wallets which continue to be created on a regular basis are lying empty with liquidity in the cryptocurrency still remaining limited.

A libertarian’s economic dream 

Bitcoin continues to confuse many as regulators struggle to get to grips with something which is not really a currency at all.

The anonymous nature of bitcoin and its decentralised nature make it a libertarians economic dream, but these very traits also make it an attractive proposition for those looking to purchase illegal goods on the dark web or carry out money laundering.

Indeed it is these very uses for bitcoin which have waned in 2014 thanks to increased scrutiny of law enforcement agencies (see Silk Road) and it is the decrease in use of bitcoin for these activities which could have led to price depression overall.

Bitcoin will continue to intrigue and confound in 2015 and it is entirely possible that in 12 months time we will be hailing it as the best investment of the year, but as we know, with bitcoin, you can never really tell.

Is this a Bitcoin Price Correction? Maybe…

Bearish pressure has pulled the Bitcoin price into a deeper correction. The advance is on hold pending ongoing price correction. Most markets including Gold and equities are engaged in sudden counter-trend price movement – a condition that seems temporary.

Many strong reversals are evident across the board in the past 48 hours. The Gold price dropped to $1,227 from $1,250 today. The S&P500 has surged back to support near 1,970, and the US Dollar has resumed advance toward 86. Possible factors underlying these changes, as well as the sudden Bitcoin drop, are not evident, and a return to the longer-term trends should resume in the coming days or by next week.

Unless a swift reversal takes price back above $368 and then $400, we can only assume that wave 2 will target one of the Fibonacci retracement levels at 50%, 61.8% or 89% of the entire advance of the past three weeks from $275. The following Bitstamp hourly chart shows the Fibonacci retracement levels on the righthand side. The 50% (.5) retracement is at $346 and the 61.8% (.618) retracement level is at $330.

Yesterday, before price broke out below the consolidation triangle, the correction had been labeled a-b-c-d-e. A new wave count is annotated and shows price action in wave 3 of wave C. We’ll refine that as more of the wave structure becomes apparent.

The final wave in the expected sequence, wave 5, is shown to terminate at $330 although it may equally well extend all the way to the .89 Fib retracement level at $290. We cannot know at this stage whether wave 5 will end nearer $330 or $290, but a sensible trade strategy is outlined below.

Edward J Gerety III

 

 

 

 

 

 

 

 

Trading The End of Wave 2 

The same advice given during the past week applies: It is recommended that traders do not short trade this decline. Doing so is risky because the decline’s lower target is unknown and, once terminated, reversal could be swift.

One trading strategy is to systematically buy into wave 2 as it approaches its potential reversal levels at $346 (50% retracement), $330 (62%), etc. down to $290. A stop-loss placed at $275 would then close the position at a loss should price continue declining to $260 or $205 to make a new decline low. However, this strategy is wasteful and resembles stepping in front of an approaching bus.

A more sensible strategy and the one with the highest probability and lowest risk is to wait patiently for wave 2 to complete. Once price action reverses and starts heading up in those first few long green candles, the urge to buy into the apparent advance will be strong, but don’t pull the trigger just yet. Wait longer still. The risk remains that what appears to be a reversal at the end of wave 2 (at say, $330) is not the end of wave 2 at all.

Once price action has drawn some long green candles and makes a correction without making a new low – this is the time to buy into the advance. Place a stop-loss just below the reversal level where the advance started from.

If price does turn down again to make lower lows, your loss is minimal, and the process can be tried again at 62% retracement and again at 89%. If reversal occurs at one of these points, you will have gotten in near the beginning of wave 3 which is characterized by swift advance and great distance.

Edward J Gerety

 

 

 

 

 

 

 

Summary

Wave 2 is drawing the Bitcoin price into a deeper correction than was initially expected. Prepare to buy in lower at $346, $330 or even $290, but don’t short-sell the market here since the reversal level is not certain.

Edward J Gerety

 

 

 

 

 

 

Price may eventually print a new decline low, but we’ll deal with that scenario once the wave down declines below $275.

Once wave 2 reverses, the advance in wave 3 can be expected to commence with great vigor. For now, we observe and wait for a reversal above $275.

Ecuador and Dominica are taking on experiments with digital currency

ecuadorVirtual currency, still in its nascent phase, has prompted scrutiny by economists and regulators around the world. But in Latin America, two countries – Ecuador and the tiny Caribbean island of Dominica – are taking on very different experiments with digital currency, with government support.

Ecuador announced earlier this summer that it planned to begin issuing a new digital currency through its central bank in December, targeting poor and rural segments of the population without access to traditional banking. The move would make it the first country in the world to have government-issued digital money.

Details of the plan are still scarce, although a presentation on the Ecuadorean government’s website lays out a few more specifics: The new currency – which does not yet have a name – will rely heavily on mobile transactions for the estimated 48 percent of the population lacking a traditional bank account. President Rafael Correa said that the new currency would exist in parallel to the U.S. dollar – Ecuador’s official currency – and be backed by liquid assets.

This stated goal of financial inclusion and focus on mobile payments appears to put the new Ecuadorean system closer in line with M-Pesa, the mobile monetary transaction system that has been wildly successful in Kenya. M-Pesa has been credited with providing a faster and more convenient way for poor and rural populations to make payments, send remittances and run businesses. But M-Pesa is a mobile platform for dealing in the existing local fiat currency, whereas Ecuador’s system would create an entirely new digital-only currency.

The decision to create a new form of electronic money rather than just adopting a mobile payments system has prompted some analysts to suspect that Correa’s real aim is to devalue the U.S. dollar. Ecuador, which adopted the dollar as its official currency after facing a banking crisis in 2000, is currently in debt to China for $11 billion, or one-seventh of its entire economy. A devaluation would make that debt less of a burden.

But while many other details are still unknown, Correa has emphasized that the new system will not resemble a cryptocurrency like Bitcoin, which is not controlled by any central authority and relies on a fixed supply. In fact, the law that authorizes the creation of Ecuador’s new currency simultaneously prohibits the use of decentralized currencies like Bitcoin.

Meanwhile, in the tiny Caribbean country of Dominica, Bitcoin is surging ahead. The “Bit Drop,” sponsored in part by a handful of Bitcoin businesses and interest groups, is a planned event to send all SMS-capable residents of the 70,000-population island a small, unspecified amount of bitcoins on March 14, 2015, thereby creating the “world’s largest and highest-density Bitcoin community.” According to the sponsors of the “Bit Drop,” the project has received cooperation and backing from Dominica’s government.

The groups behind the “Bit Drop” include Bitcoin wallet service provider Coinapult, Dominican insurance firm Aspen Assurance, nonprofit organization College Cryptocurrency Network and the Bitcoin Beauties network, which is aimed at encouraging women to adopt Bitcoin.

Project manager Sarah Blincoe told CoinDesk, a Bitcoin news site, that Dominica’s small population, widespread mobile usage and diaspora make it a strong test case for the use of bitcoins in making local payments and sending remittances. College Cryptocurrency Network executive director Jeremy Gardner also told CoinDesk that his group would hand out educational materials about Bitcoin to local retailers in an effort to use the drop as a launching pad for longer-term adoption.

It’s unclear whether the project would actually have a lasting impact on island residents’ perceptions and usage of the currency, or if the drop – which will coincide with an island-wide party – is simply a clever, one-time marketing campaign. Still, the support of a national government is a significant step for the cryptocurrency movement.

But elsewhere in the region, digital currency – especially Bitcoin – is still very much in a fledgling state. Bitcoin usage has been on the rise in Argentina and Brazil as national currencies face rising inflation, but difficulty of access and perceptions of high risk mean that proponents still have far to go in gaining traction for virtual currency in the region.

THE END IS NEAR

– or at least maybe the end of this most recent stock market correction …

A very helpful tool for spotting intermediate-term bottoms is to watch large outflows, or signs of capitulation, in key exchange traded funds (ETFs). To do this, first identify which areas of the market are getting hit the hardest, look at a widely followed ETF for that market, and then watch for fund outflows to hit an extreme to mark capitulation. A case in point is the early February bottom in which the 20-day average of fund flows for the SPDR S&P 500 (NYSEARCA:SPY) ETF reached the lowest level for the entire bull market. Here’s the chart I showed at the time where fund outflows correctly signaled the February bottom in the S&P 500:


Source: Bloomberg

Similarly, back in the middle of April I argued we were nearing the end of the pullback in the markets when viewing the technology-heavy PowerShares QQQ Trust (NASDAQ:QQQ), which tracks the Nasdaq 100 Index. The 20-day average of fund flows for QQQ reached an extreme level and suggested we had reached selling capitulation in the markets. The extreme selling in QQQ that was highlighted in April is shown below (click for link):


Source: Bloomberg

This go around the selling appears most intense in the small-cap equity and junk bond market segments as discussed last month (click here and here). Given these two areas were under the most pressure, I looked at fund flows for both segments and based on the 20-day average of outflows for both I would suggest a bottom is likely in for the markets. As capitulation selling in the SPY and QQQ marked earlier bottoms this year, we’ve clearly seen capitulation in the junk bond market as the 20-day average of outflows from the iShares High Yield Corporate Bond ETF (NYSEARCA:HYG) reached the worst outflows seen since the bull market began in 2009 as nearly $100M in average daily outflows have taken place in the last 20 days.


Source: Bloomberg

Even greater outflows were seen in the iShares Russell 2000 ETF (NYSEARCA:IWM), which averaged $162M in daily outflows over the last 20 days. Outflows of this size have marked prior bottoms over the last few years and suggest we’ve seen yet another intermediate-term bottom in the markets (Note: two red arrows did not lead to intermediate market bottoms).


Source: Bloomberg

So Bearish It’s Bullish

Last Thursday I highlighted that breadth had turned so bearish that we were reaching levels associated with market bottoms. For gauging market breadth I analyze the Russell 3000, which makes up roughly 98% of the entire US market capitalization. The percent of members below their short-, intermediate- and long-term moving averages (2nd panel below) has reached levels associated with prior market bottoms. We’ve also seen a spike in members with 3-month new lows (4th panel below) and one of my favorite indicators, the percent of members with a MACD line above zero (5th panel below), reached the 30% threshold, which has marked solid bottoms over the last few years. All of this suggests the markets have bottomed and what we need to watch now is how strong and robust is the recovery off the lows.

(click to enlarge)
Source: Bloomberg

Buy Signals on Major Indexes

One indicator I’ve come to rely on that has proven to be quite reliable, particularly at bottoms, is the Bloomberg TrendStall indicator that attempts to find changes in trend. When the conditions for a reversal have been met the indicator paints the index purple and when the actual trigger is met a triangle is shown for the signal – a red triangle for a sell signal and a green triangle for a buy signal. Currently, we have the conditions for a reversal (see green circles below) in all of the major indexes but the trigger has not been given yet. As seen below, past buy signals by the TrendStall indicator have proven to be spot on in calling prior bottoms over the last two years and if the buy trigger is given that would be another nail in the coffin that the bottom of this pullback is probably in.


Source: Bloomberg

Given Strength of Economy, Recent Pullback Not Indicative of Bull Market Top

With the weakness in the markets this past month, particularly in small-cap stocks and the junk bond market, there have been a growing number of bears calling for the end to the present bull market. Given that most bear markets are associated with recessions it is always worthwhile to take a look at the economy and its trajectory before making a bear market call. Doing so shows the risk recession for the US economy in the near future is in the low single digits according to our recession model, which currently calls for only a 3% chance of a recession on the horizon.

(click to enlarge)
Source: Bloomberg

Additional data also suggests near-term recession risks are remote. Today we were treated to the Fed’s Senior Loan Officer Opinion Survey for Q3 2014 and there was a lot of encouraging data to suggest the US economy is still on solid footing. For example, the net percentage of loan officers reporting stronger demand for commercial and industrial (C&I) loans from large and medium firms is near the upper end of the range for the last two decades and not yet showing any deterioration. This is very encouraging as loan demand typically falls off well before the onset of a recession (see red arrows below). If anything, loan demand is currently accelerating (blue arrow).


Source: Bloomberg

Commentary from the Fed’s release is provided below (emphasis added):

The July survey results showed a continued easing of lending standards and terms for many types of loan categories amid a broad-based pickup in loan demand. Domestic banks generally continued to ease their lending standards and various terms for commercial and industrial (C&I) loans…Banks also reported having experienced stronger demand over the past three months, on net, for many more loan categories than on the April survey.

In addition to strengthening C&I loans we also saw the strongest demand for commercial real estate loans since the late 1990s:


Source: Fed

Demand for consumer loans also increased to the highest level since 2005:

(click to enlarge)
Source: Fed

The data from the Fed’s survey shows not only banks continue to ease standards as liquidity is readily available, but the demand for that liquidity is growing as business and consumer loan demand continues to grow. These are not the conditions you see before a major economic slump.

Summary

Based on capitulation-like selling in both the small-cap equity and junk bond segments of the market, it is quite likely that Friday marked a low. While the recent pullback was not fun it also wasn’t the beginning of a bear market as many bearish pundits claimed. The risk of a recession is simply too low and, if anything, the economy continues to build on the momentum coming out of the second quarter as banks, businesses and consumers show expansion.

While it is probable that Friday marked the low, there clearly has been some damage done to the market’s technical condition and some repairing needs to occur over the coming days before we can say with confidence that the low, not just a low, is in. For that, I’d like to see the S&P 500 reclaim its 50-day simple moving average and the iShares Iboxx High Yield ETF (HYG) also begin to trend higher and see strong fund inflows.

I would also like to see a strong surge in momentum of enthusiastic buying that has accompanied other bottoms. While we are clearly oversold (see middle panel) we need to see a surge in demand (bottom panel) for the final element of a market bottom. Currently, we’ve only seen 8% of the Russell’s 3000 members generate a MACD buy signal in the last 10 days. For a solid bottom to be in place we need to see this number jump at least over 15% and ideally higher for a stronger signal. I’ll touch back on this indicator later in the week for an update and provide any other clues as to the market’s direction.


Source: Bloomberg

How much time do you spend on your smartphone a week?

Youth-obsessed marketers are anxious to figure out the best way to reach the so-called “Millennial Generation.” A new report validates the popular notion that the smartphone is the best vehicle.

Millennials, people ages 18 to 34, are the most connected generation, according to a new study from Experian Marketing Services.

The study, based on a survey of almost 24,000 U.S. adults, found that 77% of adult millennials own a smartphone and the average owner spends 14.5 hours a week using his or her smartphone texting, talking and on social media.

Marketers are already beginning to respond to the shift by increasing their spending on mobile advertising. Research firm eMarketer estimates that advertisers are expected to shell out about $17. 7 billion on mobile ads in the U.S. this year; almost double from what they spent last year.

Experian’s report does warn that other forms of media should not be ignored when trying to reach young adults. The study says that although millennials spend less time watching TV than others such as Boomers and Generation X, TV still accounts for more than a third of millennials total weekly media time — about 25 hours.

Here is a look at how device usage by millennials stacks up against other demographic groups:

 

Quietly, I will admit here in the small print that I am news addicted and 14.5 hours is a little low per week.

Bitcoin rises as E-BAY CEO states it is the Future

acceptedBitcoin jumped $16 in 2 hours after John Donahoe, the CEO of Ebay, told CNBC that Paypal ‘’will have to integrate digital currencies into our wallet’’. When asked how soon the move may come Donahoe said ‘’I don’t know, I can’t give a specific time.’’

The CEO seems to understand bitcoin very well however, as he expounded on the possible uses for the cryptocurrency in the next sentence:

‘’I think you’ll see bitcoin used in different use cases, whether it’s a peer-to-peer use case, a cross-border transaction, someone’s sending currency to someone else, and over time, you’ll start to see it with some merchants accepting bitcoin.’’

John Donahoe went on to say that he owns some bitcoins but he’s not buying it as an investment: ‘’I’m not buying it as an investment. I’m buying it to understand how it works. There are two sides of it, the investment side and the digital currency side. I’m more interested in the digital currency side.’’

The interview ends with a very upbeat insight on bitcoin: ‘’I don’t know if it’s a Stockholm Syndrome or what but everybody that I talk to out here, and you sort of get into it, really does talk about bitcoin as the next big thing. And they believe it. And they mean it.’’

Before the brakeout, BTC prices spent the previous 12 hours trading aimlessly around the $640 figure. After the Donahoe comments, BTC/USD jumped from $640 to a high of $656 (BTC-E). One bitcoin is currently quoted at $647.40 on BTC-E. Prices are trading slightly higher on on BitStamp at $660.

bitledge

 

Banks mock Bitcoin and then try to replicate their success

BitcoinExchangeWhile Jamie Dimon and Warren Buffett express doubts about bitcoin, executives running the financial industry’s back offices are looking at mimicking the virtual currency’s methods of moving money quickly and cheaply. FIS, a provider of systems used by banks to handle payments, is examining whether a public ledger like bitcoin’s could help securely move funds on existing networks, Fred Brothers, the firm’s chief innovation officer, said in an interview. Fiserv Inc. (FISV), a provider of technology for payments and accounts, is examining bitcoin’s use of encryption to ensure transfers are secure, said Marc West, a senior vice president. Such interest shows how Wall Street could seek to reap benefits touted by bitcoin’s backers without using the virtual currency itself. Bitcoin, proposed by an anonymous programmer or programmers in 2008, has drawn entrepreneurs and retailers looking to popularize it as a low-cost alternative to established payment systems, supplanting credit cards to international wire transfers. Instead, a variety of financial firms might copy its underlying design to hone their own systems or services sold to clients. “It’s safe to say that every bank is looking at what’s going on with bitcoin and those types of technologies,” said Steve Kenneally, a vice president at the American Bankers Association. “Most of the larger banks are investigating it. The larger the banks, the further along they are.”

The Golden View

Goldman Sachs Group Inc. analysts wrote in a March report that while bitcoins may not make a viable currency, the technology “could hold promise.” The software relies on a public record of transactions. When someone spends all or part of a bitcoin, the change in ownership is recorded by a global network of computers and posted to the register, ensuring individual units can’t be simultaneously held or spent by multiple people. Operators of computers solving and verifying transactions are rewarded with new bitcoins for their work. Bitcoins are valued at about $435 today, compared with prices of more than $1,100 in December and about $13 at the start of last year, according to CoinDesk, which tracks prices across key exchanges. Bankers including JPMorgan Chase & Co. (JPM) Chief Executive Officer Dimon, 58, have predicted bitcoins probably won’t last after governments subject them to rules and standards akin to those for other payment systems. “I wouldn’t be surprised if it’s not around in 10 or 20 years,” Buffett, the 83-year-old billionaire chairman and CEO of Berkshire Hathaway Inc. (BRK/A), told CNBC in March. “It does not meet the test of a currency.”

‘Rat Poison’

Buffett’s long-time business partner, Charles Munger, was less charitable this week, telling Fox Business Network that calling bitcoins “rat poison” would understate his disdain. The technology could augment, or even replace, existing systems such as the Automated Clearing House fund-transfer system used by entities including banks, said Gil Luria, an analyst at Wedbush Securities Inc. Wedbush is examining the potential use of systems akin to bitcoin for interbank money transfers, said Luria, who oversees the effort. Such technologies include Ripple, a bitcoin-like system that completes transactions faster. “If there was a better solution that we felt was secure, we believe we’d use that infrastructure,” said Luria, who doesn’t rule out that firms might use bitcoin directly. “If banks were to transact with each other in bitcoin, that would be a large opportunity.”

Existing Systems

ACH handles debit and credit transfers in the U.S. Its network moved $9.8 trillion during last year’s fourth quarter, according the NACHA, the electronic payments association. The system typically settles transactions within a business day, which is one reason why it can take days for money to transfer to an account. Bitcoin moves funds in minutes, while Ripple settles in seconds. The Clearing House, which operates an ACH network for companies including banks and credit unions, doesn’t view bitcoin-like systems as a challenger, even if some banks could use the technology for transactions, said Dave Fortney, a senior vice president who oversees new products. Fiserv provides technology and services to more than 14,500 clients such as banks, brokerages and mortgage companies and runs a person-to-person payments service called Popmoney. The Brookfield, Wisconsin-based firm is looking at many emerging technologies, including bitcoin, and may use such concepts in its products, West said. He’s interested in bitcoin’s use of cryptography — a mix of mathematics and computer science to verify transactions quickly.

Regulators’ Concerns

Companies are also sprouting up to help financial firms handle bitcoins. Vaurum, a Palo Alto, California-based startup that enables companies including banks and brokerages to trade and store bitcoins on behalf of customers, said in a statement today that it raised $4 million in seed funding from investors including Battery Ventures, America Online Inc. co-founder Steve Case and Timothy Draper, co-founder of investment firm Draper Fisher Jurvetson. Regulators around the world have expressed concern that bitcoins may be used to finance terrorism, trade in illicit merchandise or launder money. That reputation makes banks reluctant to use the digital currency directly, said Cary Whaley, a vice president at the Independent Community Bankers of America. While virtually none of the group’s members are interested in using the digital money, a small number are examining its concepts, he said. That doesn’t mean they’ll adopt it, he said. “What banks are looking at is updating the technology they already have — using the rails that they have in a more efficient, faster manner through modifying existing payment systems,” Whaley said.