Internet Archive FCU Says 'No' to Bitcoin
The virtual currency wars have heated up, at least in New Brunswick, N.J., where last week it seemed the $3.8 million Internet Archive FCU had agreed to host accounts of virtual currency exchange Tradehill, according to reporting by Bloomberg.
On Aug. 29, however, IAFCU CEO Jordan Modell posted a blog that suggested IAFCU was disengaging from Bitcoin and similar virtual currencies.
Tradehill, meantime, posted a note on Internet bulletin board Reddit where CEO Jered Kenna said his company was suspending business and he appeared to point a finger at IAFCU.
Wrote Kenna: “We have recently made the decision to temporarily suspend trading on the Tradehill platform. Internet Archive Federal Credit Union has experienced operational and regulatory issues and we are no longer able to continue our relationship at this time.”
Tradehill made similar points in a blog posted to its own website: “We have recently made the decision to temporarily suspend trading on the Tradehill platform, due to banking and regulatory issues.”
In an interview, IAFCU’s Modell plainly stated, “We do not offer any Bitcoin-denominated accounts.”
Modell declined to go on the record in any respect regarding accounts of particular members.
He stressed that IAFCU was formed to serve the underbanked and unbanked in New Brunswick and Highland Park, N.J., and that the institution’s field of membership is very specific about geography.
Modell, in his blog post, reiterated a continuing interest in Bitcoin: “Our credit union has worked within the evolving regulatory environment, which has not always been easy.
"This is a long, not a short, road and sometimes with detours….On a positive note, we are finding all involved are interested in a stable environment for bitcoin and other innovative technologies.”