The International Monetary Fund (IMF) Also Stated That If A CBDC Is Introduced, Cryptos Will Have To Be Very Clearly Described
One of the world’s biggest monetary policymakers, the IMF, analyzed the legal framework behind Central Bank Digital Currencies (CBDCs) in a working paper, dubbed “Legal Aspects of Central Bank Digital Currency: Central Bank and Monetary Law Considerations.” the document was published on IMF’s website.
IMF’s biggest concern is that the current legal framework on CBDCs may prove to have legal, financial, and reputational risks for its issuers. This is the reason central banks still not to have publicly available versions of CBDCs. …
The past year has been a rollercoaster ride for the world of cryptocurrencies, as modern economies still suffer from the COVID-19-induced market crash in March. However, the market uncertainty made it possible for a blooming underground hacking scene, which targeted the emerging economical sector as the main victim.
The traditional investment sector is continuing its passage into cryptocurrencies, as the latest investment giant, Guggenheim Partners, filed a note with the SEC claiming it reserves its rights to invest up to 10% of its $5,3 Billion Macro Opportunities Fund into the world’s crypto leader, Bitcoin.
Guggenheim Partners further clarified that “The Guggenheim Macro Opportunities Fund may seek investment exposure to bitcoin indirectly through investing up to 10% of its net asset value in Grayscale Bitcoin Trust (“GBTC”), a privately offered investment vehicle that invests in Bitcoin.”
Guggenheim’s decision is to enter the crypto sector with the help of the Grayscale Bitcoin Trust (GBTC). GBTC is a trust, enabling investors to trade shares without actually owning Bitcoin, as the trust is holding a vast amount of funds in pools. Nevertheless, Guggenheim’s note to the SEC shows that one of the largest hedge funds to date is confident about the future of Bitcoin. However, the investment company also cited some risks, involved in Bitcoin investments. …
The Stablecoin Project Must First Receive The Much-Needed FINMA Regulatory Approval
According to a report from Financial Times, Libra`s regulatory issues may be resolved and it may receive clearance for the launch of Facebook`s first US dollar-backed stablecoin, which is scheduled for the beginning of 2021.
Large-Scale Investor Probably Tried To Make A Profit On Bitcoin`s Way To $20,000
The world of cryptocurrencies finally managed to witness the long-anticipated by some experts Bitcoin price correction. The day before the correction, Bitcoin price fluctuated sideways, but at 4 pm on November, 25th Bitcoin’s price went below $19,000, which in turn sparked the correction to a low of $16,623 according to data from Cryptobrowser.io.
However, despite the quick bounce after the huge sell-off, the top cryptocurrency to date lost 11% of its value.
Many analysts and crypto experts waved flags of concern over the past week, regarding Bitcoin’s price rally. Experts claimed the gains were due to see a massive downwards price action. Crypto trader Tone Vays and CNBC host Brian Kelly also opted in for a huge correction, forecasting a slump to around $14,000. The opinions by Vays and Kelly were also supported by several key metrics which suggested a downward price movement. One of the key metrics is the Crypto Fear and Greed Index, which remained at record high levels throughout November. …
Тhe Exchange Also Announced Halting The Margin Trading Services Due To Commodity Futures Trading Commission (CFTC) Regulations
U.S.-based cryptocurrency exchange Coinbase decided to withdraw its current tax form and replace it with a new one, due to a number of issues, causing some users to overpay their Bitcoin and crypto-related taxes. The new form, however, is far from perfect. Experts claim that due to inheriting some of the issues in the previous document, the new tax document is imperfect.
Initially, the tax document change was noted by Shehan Chandrasekera, Head of tax strategy at CoinTracker. He clarified that Coinbase made an update to a help page, announcing that Form 1099-K would be replaced with form 1099-MISC. The most notable change in the form is the transition from declaring total proceeds of trades executed to only declaring the money earned from Coinbase’s interest-bearing products. …
The Rest Of The Altcoin Sector Remains In The Green, With Some Cryptos Reporting Double-Digit Price Increase
The third-largest cryptocurrency to date, Ripple, made а rollercoaster ride in terms of price, as trading XRP on Coinbase exploded to $0.92, then declined by 30% to trade at $0.610705 as of press time. Nevertheless, the price fluctuations skyrocketed XRP’s price by over 25%.
The rollercoaster turn of events for XRP started early on November 24, when prices per XRP token on Coinbase made a spike to $0.92. In contrast, Binance and Bitstamp only recorded a spike of $0.79, so experts believe that users activity sparked the price peak. …
Meanwhile, Ethereum Is Half-Way Through Its Goal Of Staking 500,000 Eth For The Launch Of Eth 2.0’s Beacon Chain
The top-performing cryptocurrency to date, Bitcoin, has struggled to keep the upwards momentum and fell into severe volatility over the weekend. After reaching a high of $18,800, Bitcoin lost over $1,000 to trade as low as $17,700. The reason behind Bitcoin’s severe price swings is the huge sell-off in the Bitcoin market on November 22nd. However, bulls quickly mitigated the consequences of the drop, boosting the price per BTC back to around $18,500.
The price volatility, however, didn’t seem to upset the movements in the altcoin sector, as cryptocurrencies like Ethereum, Ripple, and Cardano saw a surge in prices. Ethereum, for example, managed to spike over $590, bringing another 7%, while Ripple added 4% to trade above $0.45. Other altcoins like Bitcoin Cash (1%), Binance Coin (1%), Chainlink (1%), Polkadot (3%), and Litecoin (3.5%) …
Ethereum’s Co-Founder Vitalik Butrein Noted That ETH 2.0 Would Take Up To 24 Months To Be Fully Active
The second-largest cryptocurrency by market capitalization, Ethereum, finally managed to surpass the key resistance value of $500 per ETH token. The current trading price of $508.13 is the highest level since July 18, 2018. Also, Bitcoin’s runner-up made a 290% year-to-date price increase.
Ethereum’s upwards price swings seem to be in line with Bitcoin’s price gains, which skyrocketed the world’s largest cryptocurrencies to levels not seen after the late 2017 Bitcoin frenzy.
Nischal Shetty, CEO of Mumbai-based cryptocurrency exchange WazirX, explained that apart from the increased interest in the crypto market, the transition to ETH 2.0 and a proof-of-stake consensus algorithm are also moving forces for Ethereum’s price rise. …
Rivals Like SushiSwap Are Increasing Their Liquidity Mining Rewards, Resulting In A Tri-Fold Increase Of SushiSwap’s TVL
One of the largest DeFi yield farming protocols, Uniswap, recently suffered from a drastic decrease in the amount of collateral that is locked in the protocol, or total value locked (TVL). The drop in TVL comes after Uniswap ceasing its yield farming program.
Immediately after the cease, rival automated market maker protocols like 1inch, SushiSwap, and Bancor, aimed to lure liquidity providers with targeted rewards. …