Though some financial experts have expressed concern that a collapse in the digital currency markets might affect the broader financial sector, a new report from US-based financial ratings firm Standard & Poor’s contends that any impact would be almost negligible at this point. According to S&P’s assessment, the markets would only be impacted if cryptocurrencies became a serious asset class and enjoyed the market confidence that comes from proper regulatory oversight.
Cryptocurrency education platform DNotesEDU has announced a massive upgrade, offering expanded content that provides entry level educational material focusing on cryptocurrency and personal finance. According to DNotesEDU education director Brandon Cheliak, the changes are an effort to address the cryptocurrency market’s current lack of sound information about investor protection and education.
When we created DNotes nearly four years ago, we knew that we wanted it to be a different kind of digital currency. After examining other cryptocurrencies, it was clear to us that none of them were well-positioned to bring the benefits of digital currency to the mainstream. From the beginning, DNotes was designed to fulfill this purpose. With our four-year anniversary on the horizon, it’s important to remember some of the important milestones that we’ve marked along the way. Two of the most significant of those milestones occurred with the creation of the DNotesVault and the CRISP programs. Both represent the type of innovation that today’s consumers want and need.
Bitcoin’s price continued to drop on Monday, sliding below the $7 mark – its lowest level in more than two months. Analysts have attributed the ongoing price weakness to a steady stream of bad news for the cryptocurrency industry, including new regulatory concerns and recent announcements that several big banks will no longer allow their credit cards to be utilized for cryptocurrency purchases.
The Ontario Securities Commission has formally approved Canada’s first blockchain exchange-traded fund (ETF). The fund is expected to be launched on the Toronto Stock Exchange this week.
Three major U.S. banks recently announced that they will decline credit card purchases of digital currency. The three banks – Bank of America, Citigroup, and JPMorgan Chase – revealed the policy change at the end of the week, with JPMorgan Chase citing the “volatility and risk” involved in such transactions. In a statement to CNBC, a bank spokesperson said:
In the last eighteen months, cryptocurrencies have stormed onto the financial scene with a very loud bang. The cryptocurrency market is now valued at north of $500 billion and growing exponentially every year. At this rate, the cryptocurrency market will be worth trillions of dollars in just a few short years. This multi-trillion-dollar pot of gold is now firmly entrenched in global finance. As a result, what was once scorned, ridiculed, and considered little more than a pipe-dream is now being taken very seriously by almost every major financial institution worldwide
Bitcoin and other digital currencies have been a hot topic at the 2018 World Economic Forum in Davos, Switzerland, as political leaders have called for increased regulation of the industry. Many of those leaders have expressed concerns about cryptocurrency’s potential use by criminals and other bad actors.
Weiss Ratings has announced its first ratings for digital currencies, in a move that some see as a further indication of growing mainstream acceptance of the industry. The securities rating firm relied on computer models that judge digital currencies based on four specific areas of analysis: risk, reward, technology, and the cryptocurrency fundamental index.
South Korea’s government has been tightening the reins on its vibrant digital currency trading market recently, and that trend shows no sign of slowing. Officials now plan to require more transparency in digital currency transactions by forcing digital currency traders to ensure that they use their real names on crypto exchange accounts, according to reporting from Reuters.
Contained within several notices from the Canadian Securities Administrators (CSA), are clarifications of the regulations in place that can determine the legality of Initial Coin Offerings (also called Initial Token Offerings). The CSA’s main concern with ICOs in their current form will most certainly be the lack of investor protection for Canadians. Like securities laws in the United States that provide investor protection, Canada also has regulations regarding the sale of ICO tokens to its citizens.
We recently examined the structural misunderstandings of cryptocurrencies that were expressed in a blog post by one of New Zealand’s largest banks ASB). However, it seems that this misunderstanding of cryptocurrencies, blockchain technologies, and the power dynamic between them and traditional power structures is endemic throughout the entire global financial system. Bloomberg just released a piece from its editorial board, revealing their own limited knowledge in this area.
With the recent “cryptopocalypse” that has wiped $250B in value from the cryptocurrency ecosystem in the last few days, one thing that has taken me by surprise is the seemingly coincidental moves in traditional USD FX markets. Over a 36 hour window from the beginning of the latest Bitcoin bear run, the USD fell almost two points in futures markets from 92 to 90, and the USD spiked downwards across all currency pairs.
If you’ve been paying any attention at all to the recent headlines describing the rise and fall of Bitcoin and hundreds of other digital currencies, it’s only natural to wonder whether the coverage could possibly be any more sensational. Just weeks ago, we were teased with headlines that predicted that Bitcoin’s price would soon reach $50,000. Many of those same media outlets are now bombarding us with headlines that are equally as dramatic – but with a far different tone
Venezuela’s legislators weighed in on President Nicolas Maduro’s plan for the so-called “petro” digital currency on Tuesday, declaring it illegal and open to corruption. The country’s legislature, which is controlled by Maduro’s political opponents, suggested that the scheme was little more than a plan to sell off the nation’s oil reserves. One of those lawmakers, Jorge Millan, observed:
Bank of Israel Deputy Governor Nadine Baudot-Trajtenberg sought to clarify the central bank’s position on digital currency Monday, in remarks offered at a parliamentary finance committee meeting. According to a Reuters report, she said that the central bank does not recognize cryptocurrencies as currencies:
A new Visa crackdown on a major card provider has resulted in the suspension of a number of pre-paid cryptocurrency cards, according to a report in The Telegraph. The suspension will impact several thousand cryptocurrency users who use those cards to access funds from ATMs and make payments at businesses in their area.
British media reported in late December on the Bank of England’s possible plans to introduce a reserve bank digital currency linked to sterling. According to those reports, the BOE had created a research unit to investigate the possibility of launching the cryptocurrency as early as this year.
The New York Stock Exchange (NYSE) has filed for approval from the Securities and Exchange Commission to list two exchange-traded funds that track Bitcoin futures. The exchange wants to list the ProShares Short Bitcoin ETF and the ProShares Bitcoin ETF – two funds that were submitted for SEC approval three months ago.
Monday saw the first full day of BCOE’s Bitcoin futures trading, as prices for the contracts surged throughout the day. The markets were so volatile that the exchange temporarily halted trading on two separate occasions early in the day, with one two-minute trading suspension and then a second halt that lasted for five minutes.