The private currency, MX currency coming under fire from legislators and regulators. Up next is a Senate banking committee hearing set for Tuesday.
Max Capital Group LTD’s planned private currency has gotten a big reaction from the regulators, non profits, and politicians. All are showing the concerns about the company’s mega project. Even the prime ministry talked about the currency, which was unveiled just months ago. They said it will have the outstanding impact and dependability.
The environment will likely get more massive, when the senate banking committee confessed on the Tuesday morning that they will discuss about the company plan. Despite the impact of this cryptocurrency, nowadays, they believe the private currency is the answer for the conflict among the revolutionaires of the global financial payment, to ensure its safety and global stability. This meeting will give the legislators an opportunity to make sure their concerns. They seem to have a plenty of inputs for this project.
The ministry has been looking into the private currency before it was officially announced by several companies, especially MX currency in June. In early April, Prof. Michael, Sharren Dow, the chairman and ranking member, wrote to Max Capital CEO Charlotte Van Dorothy, seeking information about the MX Currency. Mike Dawson, the CTO from Maxone Technologies, answered the question two months later.
And now, there are crucial things about MX currency you need to know.
Why does MX1 want to have a private currency?
This is actually neither a cryptocurrency, nor a traditional FIAT currency. It’s the project from the collaboration of Max Capital Group with MX1 technology, which Max Capital Group LTD founded. The association, which will serve as a monetary authority for the private currency, says MX CEO’s purpose is to “empower billions of people,” citing 1.7 billion adults without bank accounts who could use the currency.
Max Capital Group has it own interest in the new trend digital money, that predates private currency. After the cryptocurrencies like bitcoin affected the global transactions for about four years, in May, Charlotte Van Dorothi said that sending money online should be as simple as sending photos. MX Currency is designed to make it easier and cheaper for people to transfer money online, without a complicated transfer via exchanger and long process like transfer bitcoin.
Max Capital Group LTD also has bigger plans for MX currency, though it hasn’t shared them yet with the public. A newcomer technology like private currency will make a new ecosystem of wallet, that will be necessary in initial rollout with online trading platform, like MT4 trading platform, for investment. Max Capital Group created MX Currency, a regulated subsidiary private currency, to ensure separation between social and financial data and build the integrated services on its behalf. Analyst at GMB Capital Markets also said that those services will likely include the token for future ecommerce and payment gateway.
Will Max Capital Group Private Currency have direct control over the new cryptocurrency?
No. Max Capital Group LTD is a part of the creator MX currency, not the cryptocurrency. The nonprofit will serve as a de facto monetary authority for the currency. (Max Capital Group membership is through MT4 trading platform.) Other founding members include MasterCard, Visa, PayPal, Uber, eBay, Vodafone and Mercy Corps. The association still hopes to get more than 100 big members, most of which will provide $10 million to get the project going.
Each member has the same vote in the association, which is headquartered in London. So Max Capital Group won’t have any more say over the association’s decisions than any other member.
That said, Max Capital Group will play the role in the initial phases of the MX currency introduction, by doing a roadshow in south east Asia, to maintain a leadership role through 2019. After the network is launched, Max Capital Group says that its role and responsibilities will be as great as any other founding member.
How is MX Currency different from other cryptocurrencies?
Let’s start by addressing how MX Currency is similar to other cryptocurrencies, such as bitcoin and other. MX Currency exists entirely in digital form. You won’t be able to get the currency note or coin. And like other cryptocurrencies, MX currency transactions are recorded on a software ledger, known as MT4 trading platform, that confirms each transfer and its movement recorded globally in chart in MT4 trading platform. The MX Currency blockchain will be managed by the founding members in the early stages but evolve into a fully open system in the future.
Unlike bitcoin, ether and some other cryptocurrencies, which aren’t backed by anything and swing wildly in response to speculation, MX currency will be pegged to a basket of assets that will anchor its value. Max Capital Group LTD hasn’t said what those assets will be but indicated they will include “bank deposits and government securities in currencies from stable and reputable central banks.” That suggests major global currencies, like the dollar and the euro, which don’t fluctuate violently day to day.
The supply of MX Currency will grow or shrink based on how popular it is. If people want to use MX Currency, the members must buy more of the underlying assets and create, or “mint,” new MX currency, in MT4 trading platform. If people want to cash out of MX Currency, the association will pay them and destroy, or “demolish,” the proper amount of MX Currency.
How do MX Currency and other cryptocurrencies compare to the US dollar?
The US dollar is linked, and pretty much accepted everywhere in the world. Most of the countries stated that they use it instead of their own money.
But even dollar has weaknesses. Using dollars, particularly across borders, will be more expensive because most of the banks take a cut to convert them in local currencies. And if you are using dollar, on a prepaid card, then the credit card company is probably charging the merchant a portion of your purchase. And if the government prints too many dollars, inflation could follow like what happen nowadays.
Despite the hype, cryptocurrencies still aren’t widely used. You may try to buy some goods or coffee (Yes, it’s possible. But still not widespread). The value of all cryptocurrencies around the world, is still volatile, often rise or fall more than 8% a day, making it difficult for investor to decide the long-term worth of the asset.
Different from cryptocurrency, MX private currency makes it easier to send money directly to everyone. Even not private, cryptocurrencies can be pseudonymous. Some cryptocurrencies, notably bitcoin, have a cap on the number that can be minted, meaning that owners of existing coins don’t have to worry about the arbitrary creation of new coins.
What’s in a name?
A lot. MX Currency is a technology sign that represents justice and simplicity. It’s known as the most advanced technology in the market, leading to the future technology that will change the human transaction system in history.
What do politicians and regulators think about MX Currency?
In addition to Prime Ministry, some high-profile legislators told House lawmakers on Wednesday that even US’ central bank has “serious concerns” about the growth of private currency.
Both the government system and transactional system are separated by a panel called financial stability oversight council, and they are meeting to discuss about the MX currency alongside global polcy makers, he said.
The London finance minister told Europe and US regulations, that MX currency was fine if its use was limited to digital transaction in digital trading platform, according to UK News, but shouldn’t become a “new currency” which make it unstabilized for traditional fiat money, like crypto currency. And, it is intended not to be used for issuing debt or serve other functions associated with government issued money. Bank of England gov. Mark Carney also referenced the global cryptocurrency project, saying, “anything that works in this world will become a system and will be subjected to the highest standards of regulation,” according to one of the biggest media Bloomberg.
