Crypto Drivers Still looking “Incredibly Optimistic,” BTC Purchases Already Affecting “National Accounts”

The US Fed Governor calls Bitcoin “electronic gold,” says crypto is another asset “you can choose to hold. You can choose gold or bitcoin.”

Finally, into the weekend, cryptocurrencies are registering some greens.

After Bitcoin fell under $56k and Ether went below $4k on Friday, today we went as high as nearly $59k and $4,340, respectively. As of writing, BTC/USD is trading around $58,500, and ETH is hovering around $4,300.

The total crypto market is also slowly recovering from $2.59 trillion to back above $2.75 trillion.

“This correction seems more like a natural breather in a bull run, as well as a healthy flushing out of leverage,” said Noelle Acheson of Genesis Global Trading.

While some have started to doubt the bullishness of the market after the recent weakness, money hasn’t stopped flowing into the cryptocurrency industry. While in the private market, crypto firms continue to raise millions and billions of dollars to build the infrastructure, crypto products are also attracting money though the flow has subdued.

“It alludes to the fact that we’re also not overheated at the 60K market. There’s still a good way to go,” said Justin d’Anethan of crypto trading firm EQONEX.

Hunter Horsley, CEO of Bitwise, is of the same opinion based on “fundamental thesis and drivers of the space,” which he says “continue to look incredibly optimistic.”

Even global markets are consolidating after the gains recorded by the US dollar and bond yields in recent weeks.

Growing Adoption

This year crypto adoption has gone mainstream, with institutions pouring in. Australia is also joining in with its biggest bank, the Commonwealth Bank of Australia, to start offering its users the ability to buy, sell, and hold crypto because the bigger risk is not participating.

However, the county’s $2.4 trillion pension fund industry is still not all aboard. Ross Barry, who oversees A$27 billion at superannuation fund Spirit Super, said long-term funds have to watch how the sector develops, but volatility makes crypto “too risky to be considered for institutional portfolios.”

Not just user adoption, but countries are also recognizing crypto’s potential, with India planning to regulate crypto as an asset class. Also, Brazil’s central bank chief Roberto Campos Neto is saying that they are discussing a bill on how to regulate crypto as an investment class due to Brazilian purchases of bitcoin starting to affect import data.

“They have already started to affect national accounts, which means they have become an important instrument,” he said, adding, he wants to get more clarity on the government’s plan for cryptos.

Campos Neto also said that inflation expectations for next year are rising and shifting “a bit” away from their target, which the bank has been trying to control by raising interest rates. In addition, the Brazilian central bank is likely to revise its forecast for the country’s GDP growth next year to downwards, which currently stands at 2.1%.

“You Can Choose Gold Or Bitcoin”

Besides crypto, gold also fell to a one-week low on Friday, weighed by the gains in the US dollar and after Federal Reserve Board Governor Christopher Waller said Bitcoin is digital gold.

Waller also said the Fed should increase the pace of tapering to give more leeway to raise interest rates from virtually zero. An increase in rates and draining the liquidity from the system, however, is not good for the crypto market as during the last bull market, it “took the wind out of the sails of crypto was when interest rates rose, and liquidity was draining from the system,” said Jamie Cox, managing partner at Harris Financial Group.

On Friday, during a discussion with the Center for Financial Stability, when asked about the risks digital assets pose, Waller said,

“Bitcoin to me is basically electronic gold.”

“It doesn’t have any fundamental intrinsic value, but that’s okay. We’ve known from economics since 1958 that useless objects can have value.”

Most of the thousands of cryptocurrencies in existence have “zero value,” said Waller adding, Bitcoin is different.

“Once they pick up, then they become like electronic gold. They’re another asset you can choose to hold. You can choose gold or bitcoin, I don’t care. We don’t sit there worrying about gold prices destabilizing the financial system, per se.”

Meanwhile, the Fed official sees DeFi presenting new opportunities in terms of smart contracts, which are “amazing” and can be used to do “pretty impressive stuff with,” Waller said.

“There’s instant clearing and instant settlement…. So I think it has actually a lot of potential for trading going forward.”

Earlier this week, Waller also commented on stablecoins, saying while he understands the regulators wanting to force a new product into an old structure that would eliminate stablecoin’s key benefit arrangement of serving as “a viable competitor to banking organizations in their role as payment providers.”

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Author: AnTy

Nigeria Central Bank Governor Reports ‘Overwhelming Interest’ for its Newly Launched CBDC eNaira

Nigeria Central Bank Governor Reports ‘Overwhelming Interest’ for its Newly Launched CBDC eNaira

Nigeria has launched its own digital currency, eNaira, to become the first African nation to do so. The central bank digital currency (CBDC) is expected to expand people’s access to banking, enable remittances, and help grow the economy by billions of dollars.

Central Bank Governor Godwin Emefiele said there had been “overwhelming interest and encouraging response” to the CBDC.

During the launch, Emefiele further said that already 33 banks, 120 merchants, and 2,000 customers had registered successfully with the platform, available via an app on Apple and Android.

He added that about 200 million fiat currency worth of eNaira has been issued to financial institutions, which will maintain parity with the traditional currency.

President Muhammadu Buhari, meanwhile, said that the use of digital currency could grow the economy by $29 billion over ten years. It will also enable direct government welfare payments and even increase the tax base, he added.

The country is ranked 7th in the 2021 Global Crypto Adoption Index, according to blockchain analytics firm Chainalysis.

Ikemesit Effiong, head of research with Lagos-based consultancy SBM Intelligence argues that the central bank had not yet made it clear if users can transfer eNaira back into fiat naira, whether there would be physical locations to use and transfer eNaira, and if crypto can be used to buy or sell the CBDC.

“It’s not clear looking at the CBN’s body of work that Nigerians would be comfortable using this,” he told Reuters, adding:

“There are more questions than answers, even though we are looking at the launch of this digital currency. The fact that this is the case so late in the game is concerning.”

Only three local television channels were allowed to attend the launch of eNaira, and officials took no questions.

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Author: AnTy

Brazil’s Central Bank Governor Expects Crypto Investment in Country to Surpass $9 Billion

Brazil’s Central Bank Governor Expects Crypto Investment in Country to Surpass $9 Billion

Brazilians have already bought more than $4 billion in crypto this year up to August, as per the central bank report.

The total value of cryptocurrencies purchased by Brazilians this year has exceeded $4 billion, according to the data released by the Central Bank of Brazil in a report last week.

A total of nearly R$ 23.3 billion, $4.270 billion has been traded from January to August-end. In August, the purchase value was $496 million.

In August, Roberto Campos Neto, the president of Brazil’s central bank, also said that they need to pay attention to cryptocurrencies as they are here to stay. “We need to reshape the world of regulation,” he added.

The value of crypto assets bought by Brazilians reached its peak in May at $756 million. That month, the Brazilian market broke a record by trading R$ 826 million ($150 million) in Bitcoin in a single day.

But since then, they saw a drop in June and July at $695 million and $583 million, respectively. Still, these numbers have been much higher than the figures reported earlier this year in February at $386 million and $357 million in March.

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Last week, Deputy Governor for Monetary Policy at the central bank, Bruno Serra, said the Brazilians investment in crypto assets abroad is potentially three times greater than in American shares. He further said that there is a potential for this investment in crypto to reach R$ 50 billion (more than $9 billion in USD).

Serra also believes that people’s interest in cryptocurrencies is unlikely to fade anytime soon.

Earlier this month, as we reported, a bill advanced through Brazil’s House of Representatives, which has been in development since 2015, to regulate cryptocurrency in the country.

The bill calls for creating clearer definitions of crypto, will require virtual asset service providers to register, and further aims to crack down on crypto crimes by imposing higher fines and harsher prison sentences.

After being approved by a special committee of the Chamber of Deputies, the bill is currently in the hands of the Chamber’s Plenary, and once green-lit by them, it will advance to the Senate to be discussed before finally going to the president for a final nod.

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Author: AnTy

While “Not an Issue Yet,” BoE Deputy Gov Sees Growing Appetite for Crypto Among Both Retail and Institutions

While “Not an Issue Yet,” BoE Deputy Governor Sees Growing “Appetite” for Crypto Among Both Retail and Institutions

While not wanting to stop firms from doing things that make commercial sense, Sam Woods calls for a “very conservative view” on capital measures.

The Bank of England Deputy Governor doesn’t want the banks to have big exposure to crypto-assets not backed by sufficient capital, and for that, if they would have to front-run global rules, he would.

Sam Woods said on Thursday that Britain’s banks at the point “don’t have material exposures to crypto” but added that there is certainly “an investor appetite and not just retail, also institutional investor appetite to have a little bit of this stuff.”

He further noted that some of the banks have announced their plans to provide ancillary services “that may be OK but as that develops and if it develops into something big, we are going to need to make sure the capital treatment is pretty robust,” Woods told Reuters.

The Basel Committee on Banking Supervision (BIS), which is a global banking supervisory authority, has already laid down capital requirements for banks that hold crypto assets. The committee has proposed punitive charges for not meeting them that lenders said would make their involvement in the cryptocurrency sector prohibitive.

According to Woods, Basel’s proposals were “quite sensible,” and that the regulatory community was starting to get a better grip on the cryptocurrency sector.

Still, it can take years to adopt norms that would need to be implemented by members like the European Union, the US, and Britain.

“We would not want to stop firms doing things that make commercial sense, but we would take a very conservative view on capital treatment, and if necessary, we would therefore front run, maybe not exactly in the same way, but we would put some capital measures in place,” Woods said. “It’s not an issue yet.”

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Author: AnTy

Bitcoin & Gold Spike and Stocks Hit Record High while Dollar Weakens on Powell’s Dovish Speech

While the Fed governor isn’t concerned about the “eye-popping price increases” in the housing market, saying, “I don’t think any of this is financial excess,” Christopher Waller sees crypto as odd assets. He’s “not going to bet Financial Stability Policy on crypto assets.”

Federal Reserve Chair Jerome Powell didn’t disappoint investors at the much-awaited event of the month as he delivered a dovish speech at the Jackson Hole Symposium on Friday.

Powell did say that he would like the central bank to start reducing its $120 billion a month asset purchases from “this year,” but only to add that investors should not read it as a signal to an imminent hike in interest rates.

“The timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest rate liftoff, for which we have articulated a different and substantially more stringent test,” Powell said in his speech.

In response, both the S&P 500 and Nasdaq hit record highs indicating investors were happy with the Fed chief’s speech. While investors would have some time to adjust to the absence of more liquidity in the coming month, Powell was pretty clear in signaling that there was no rush to tighten policy.

“Powell understands that tapering will happen, but it’s not going to happen sooner than later,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.

Treasury bond yields edged lower, and the dollar weakened to fall to 92.68, while a week back, it was at a nine-month high at 93.57.

Gold, labeled as a safe haven, meanwhile hit 3-weeks highs on Friday, having its best weekly gain since May on the back of no clear timetable for tapering US stimulus spending.

Much like other risky assets, including commodities and oil, cryptocurrencies also went higher.

Bitcoin went past $49,400 thanks to Powell and is currently hovering around $49k, while Ether is also hovering around $3,250.

SOL, which has a market cap of $27 bln, hit new ATH at $94.36 a few hours back has climbed above Polkadot to claim 8th spot. DOT, a 26.7 bln coin, is meanwhile trading at just above $26, down 47% from its mid-May peak.

The total cryptocurrency market cap is now back at $2.17 trillion.

Tapering has been a hotly debated topic in recent months with a lack of consensus among Fed officials. Robert Kaplan of Dallas, James Bullard of St Louis, and Esther George of Kansas City, and Philadelphia’s Patrick Harker are in favor of “sooner rather than later,” unlike Raphael Bostic of Atlanta division who is concerned about the Delta variant’s impact.

On Friday, Fed Governor Christopher Waller also spoke in favor of moving with paring the purchase “this fall” if there’s one more good job report in the 850,000 to 1 million range.

While concerned about the “eye-popping price increases” in the housing market, Waller said a lot of it is fundamentals with millennials coming off the sidelines for the first time in a decade, adding, “I don’t think any of this is financial excess.”

While “the financial system works fine. There’s gonna be the odd assets of people employed to look at, particularly crypto assets, but I’m not going to bet Financial Stability Policy on crypto assets.”

During the speech, Powell also noted that “more progress” has been seen in the jobs market, but this is now coinciding with “the further spread of the Delta variant,” and also there’s much ground to cover to reach maximum employment.

“If a central bank tightens policy in response to factors that turn out to be temporary … the ill-timed policy move unnecessarily slows hiring and other economic activity and pushes inflation lower than desired. Today, with substantial slack remaining in the labor market and the pandemic continuing, such a mistake could be particularly harmful,” he said.

Overall, the policy is well-positioned, Powell said, adding, the Fed, as always, is prepared to adjust.

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Author: AnTy

Former RBI Governor Wants Crypto to Find Proper Use Case to be “More Confident” About its Value

Former RBI Governor Wants Crypto to Find Proper Use Case to be “More Confident” About its Value

Raghuram Rajan, who is also the former IMF chief economist, expects US inflation to be transitory and said, “Ideally, the Fed would like to observe as long as possible,” with the problem being the Delta variant and others “lurking in the background.”

Raghuram Rajan, former Reserve Bank of India governor and chief economist for the IMF, says cryptocurrencies have a “potential future,” particularly the regulated stablecoins.

While optimistic about crypto assets’ future, Rajan told the Reuters Global Markets Forum that it isn’t clear what fundamentals were exactly backing their valuations other than “heady environment.” He attributed easy monetary policy as the driver behind rising prices in all asset classes.

Cryptos won’t be “your last resort” in a doomsday scenario, Rajan further said only to add, “I would be much more confident about the value of these cryptos once they find proper use cases,” such as an effective means of payment, especially in cross-border transactions.

Besides crypto, he talked about the responsibility of promoting sustainable investments to lie with governments and not central banks.

Central banks should steer clear of politically-driven unlegislated areas such as “green” investments, which is primarily a fiscal matter, and should focus on the financial stability of these investments and other threats such as cyber security and cryptocurrencies, said Rajan.

Providing financial and monetary stability is already a pretty broad responsibility, he added.

He commented on the “taper tantrum,” which he did not expect the markets to react to in a 2013 style.

The market is awaiting insights from the Federal Reserve Chairman Jerome Powell on Friday at the Jackson Hole economic symposium. Central banks’ top officials often announce important shifts regarding the $120 billion monthly Treasury purchases in this forum.

“Ideally, the Fed would like to observe as long as possible, (and) … make sure that the economy is well on track towards growth.”

“Of course, the problem is the Delta variant, plus whatever variants are lurking in the background.”

Rajan, a professor of finance at the University of Chicago Booth School of Business, sees inflationary pressures in the US to be transitory but said prices might remain elevated for longer than expected due to solid wages, unavailability of workers, and additional fiscal constraints stimulus measures.

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Author: AnTy

Fed Governor: USD Pegged Stablecoins “Broaden The Reach Of US Monetary Policy Rather Than Diminish It”

Fed Governor: USD Pegged Stablecoins “Broaden The Reach Of US Monetary Policy Rather Than Diminish It”

While stablecoins could serve as an attractive payment instrument that could become a major challenger to banks for processing payments, Christopher J. Waller believes, “there are many legal, regulatory, and policy issues that need to be resolved before they can safely proliferate.”

Governor Christopher J. Waller remains skeptical of a Federal Reserve CBDC, which he says is a “solution in search of a problem.”

Speaking at the American Enterprise Institute, Washington, D.C., via webcast, Waller said CBDC won’t be solving any existing problems that are not already being addressed.

While many central banks are considering the adoption of a CBDC as their economies become “cashless,” Waller said eliminating currency is a policy choice and not an economic outcome. Not to mention, Fed Chair Powell has said U.S. currency is not going to be replaced by a CBDC.

The payment system already in place isn’t too limited or slow either to warrant the introduction of a CBDC, he said. While existing interbank payment services have nationwide reach, commercial banks have developed an instant payment service called the Real-Time Payment Service (RTP), and the central bank is creating its own instant payment service FedNow as well, he added.

Waller doesn’t agree with CBDC improving the financial inclusion argument either. He pointed to an FDIC survey showing about 5.4% of US households being unbanked in 2019 and 75% of them were not interested in having a bank account.

“It is implausible to me that developing a CBDC is the simplest, least costly way to reach this 1 percent of households.”

In fact, a CBDC would create additional competition in the market for payment services because that would allow the general public to bypass the commercial banking system, which would then put pressure on them to lower their fees or raise the interest rate to prevent additional deposit outflows, said Waller.

And if commercial banks are earning rents from their market power, then there is a profit opportunity for nonbanks to enter the payment business and offer cheaper services as seen with stablecoins, he said.

“A stablecoin could serve as an attractive payment instrument if it is pegged one-to-one to the dollar and is backed by a safe and liquid pool of assets. If one or more stablecoin arrangements can develop a significant user base, they could become a major challenger to banks for processing payments.”

Such competition from stablecoins could pressure banks to reduce their markup, he added.

But Waller also made it clear that he is not endorsing any stablecoin, and there are many legal, regulatory, and policy issues that need to be resolved first before they can safely proliferate.

Not only is the private sector already developing payment alternatives to compete with the banking system, but innovation in the private sector is also happening quite rapidly, “faster than regulators can process.”

Waller isn’t concerned about private money like stablecoin representing a threat to the Fed for conducting monetary policy either as the USD pegged stablecoins actually “broaden the reach of U.S. monetary policy rather than diminish it,” he said.

“It is well established in international economics that any country that pegs its exchange rate to the U.S. dollar surrenders its domestic monetary policy to the United States and imports U.S. monetary policy. This same logic applies to any entity that pegs its exchange rate to the U.S. dollar.”

Waller also dismissed the argument that CBDC is needed to maintain the primacy of the U.S. dollar because he sees “no reason to expect that the world will flock to a Chinese CBDC or any other.”

Non-Chinese firms, according to him, wouldn’t want to have all of their financial transactions monitored by the Chinese government. Also, the Fed does not need to create a CBDC for the same reason as China, which is to more closely monitor the economic activity of its citizens, he said.

As such, “a CBDC remains a solution in search of a problem,” concluded Waller.

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Author: AnTy

Bank Of France Governor Wants Europe To Regulate Crypto Now

The Bank of France governor Francois Villeroy de Galhau has called on the European Union to create a regulatory framework for cryptocurrencies.

According to him, if Europe does not make crypto regulation a priority, there could be dire consequences for the monetary sovereignty of states.

Villeroy Encourages The EU To Speed Up CBDC Plans

Speaking further at a Paris Europlace financial conference, the Central bank governor emphasized the increasing importance of digital currencies in financial markets.

He called on the EU to speed up plans in issuing a digital euro. “On both digital currency and payments, we in Europe must be ready to move as quickly as needed, ” Villeroy said. Villeroy’s statements centered around urgent ways of preventing the weakening of the Euro. He stressed the urgency saying there was little time in doing this.

He noted that many risks were surrounding the ECB’s payments control, with the digital Yuan being part of it. In addition to this, Europeans are using less cash by the day due to the growing role cryptocurrencies play in regional markets.

The use of cash decreased during the first few months of the pandemic, a movement that the governor said could lead to “marginalization of the use of central bank money.”

This is not the first time the central banker would be warning regulators against the risk of cryptocurrencies, including central bank digital currencies (CBDCs) and stablecoins.

During the Bundesbank conference held in September last year, Villeroy described the most imminent risk in Europe to be private financial infrastructures and monetary systems. According to him, they were positioning themselves as issuers and managers of currencies.

China’s Digital Yuan Drawing Criticisms

China is the leader in developing and deploying wholesale CBDCs. The country is currently testing its digital Yuan, where citizens in different provinces transact payments over their mobile phones.

However, the project has been considered a threat by most Western countries. This is due to the reports circulating the media that China is planning to topple the dominance of the US greenback with its digital renminbi.

However, former central bank governor Zhou Xiaochuan responded to these reports last month.

He said the digital yuan is not designed to replace the US dollar’s global dominance. He added that the CBDC is only focused on modernizing the traditional payment system while reducing costs and serving retail payment systems.

Meanwhile, various countries are warming up to CBDCs. The Bank of France has revealed plans to conduct further tests for its digital currency this year after completing a pilot program for its CBDC in January.

In the US, a Digital Dollar Project of five pilot projects was launched last month to test how a Federal Reserve-issued CBDC would operate.

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Author: Jimmy Aki

Riksbank Governor Believes Crypto Regulation is Certain, But Exchanges & Trading Is Already Regulated

Riksbank Governor Believes Crypto Regulation is Certain, But Exchanges & Trading Is Already Regulated

Cryptocurrencies like Bitcoin won’t evade regulation, according to Sveriges Riksbank (Sweden’s apex bank) boss Stefan Ingves.

Crypto Regulation Coming Soon

Sweden’s central bank governor Stefan Ingves said that Bitcoin’s popularity had caught the attention of regulators worldwide, Bloomberg reports.

“When something gets big enough, things like consumer interests and money laundering come into play.”

“So there’s good reason to believe that regulation will happen.”

Cryptocurrencies have boomed as more investors look for ways to protect their wealth.

Given the belief that these digital currencies are better stores of value than traditional fiat and precious metals like gold, the industry rode the high waters with Bitcoin surging 90%, leading the crypto market to its first trillion-dollar valuation in just 12 years.

This phenomenal growth has attracted legacy-backed financial institutions like Goldman Sachs and JPMorgan Chase.

The shift to digital forms of financial settlement has caught the eye of regulators like Ingves.

However, the Riksbank boss noted that regulatory oversight of the burgeoning industry would likely come at different times in different areas.

Echoing the thoughts of her counterpart, Sweden’s Financial Markets Minister Asa Lindhagen noted that the Nordic nation is working on tightening regulatory standards for crypto exchange platforms.

However, she said regulation of these exchanges was a work in progress at the international scene.

Lindhagen also spoke on the need to address money laundering risks in the crypto space, which she describes as a “very important issue” that would require cross-border cooperation to succeed.

Providing regulatory clarity in the crypto sector can be a daunting task, as US Federal Reserve’s Vice Chairman of Supervision Randal Quarles pointed out at a congressional hearing in Washington. Quarles stated that Federal officials are working on regulating the crypto sector. However, he believes the government would need time to develop a dynamic regulatory framework.

However, in a Twitter post, crypto enthusiast @VentureCoinist pointed out that the call for crypto regulations only surfaces when there is a market slump. He mentioned how the government was already regulating the sector through tax laws, compulsory KYC updates, and geo-limiting leveraged products.

Crypto Still Has Supporters

The regulatory uncertainty surrounding cryptocurrencies is not a problem for Asian giant China. In a fresh burst of sanctions, Chinese regulatory agencies have called for the end of crypto payments in the country. This is following renewed efforts to stop Bitcoin mining in its Inner Mongolia region.

However, crypto is still supported by several countries. Australia and Canada are two crypto-friendly countries that have welcomed the industry with open arms.

Australia’s Financial Services Minister even stated recently that the government wasn’t considering a crypto ban in the country.

Canada has enabled institutional investments in the digital asset space through the approval of Bitcoin and Ethereum exchange-traded funds (ETFs). So far, the region boasts of eight crypto ETFs in the country.

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Author: Jimmy Aki

BoJ Gov Calls Bitcoin Speculative; Central Bank’s Assets Quadrupled to $6.5T Under Aggressive Easing

BoJ Governor Slams Bitcoin as ‘Speculative’ while Central Bank’s Assets Quadrupled to $6.5T Under his Aggressive Easing

Despite keeping both long and short-term rates low and stable, the Bank of Japan couldn’t achieve its 2% inflation target, which it still won’t be able to, by the time Haruhiko Kuroda’s tenure ends in April 2023.

Bank of Japan Governor Haruhiko Kuroda’s views on Bitcoin and cryptocurrencies are the same as other central bankers.

“Most of the trading is speculative, and volatility is extraordinarily high,” Kuroda said in an interview Thursday. “It’s barely used as a means of settlement,” he added.

While he doesn’t have anything different from his peers to say about cryptos, he did differentiate cryptocurrencies from stablecoins.

But these fiat or asset-backed coins must meet legal standards and healthy governance codes as well, so they could become a convenient way of payment in the future, Kuroda said.

While the central bank official is busy slamming cryptocurrencies, total assets held by the Bank of Japan have risen to 714.56 trillion yen ($6.5 trillion) in fiscal 2020.

Under Kuroda’s aggressive monetary easing, total assets have quadrupled in these eight years, growing to 1.3 times the size of the country’s economy.

Despite the ultra-loose monetary policy, the BOJ has yet to achieve its 2% inflation target, which will still be unattainable by the time Kuroda’s tenure ends in April 2023, as per BOJ projections.

Japan’s consumer prices actually declined by 0.4% year-on-year in April 2021, following a 0.2% drop in the prior month — representing the seventh straight month for a fall in consumer prices.

Of the BOJ’s assets, government bonds totaled 532.17 trillion yen ($4.84 trillion), up 9.5% from a year earlier, and loans to financial institutions marked a 2.3x increase to 125.84 trillion yen ($1.14 trillion).

To keep both short-term and long-term interest rates low and stable, BOJ has already gobbled up large amounts of government bonds, owning over 40% of those outstanding.

And this has been the reason why people have been chosen to invest in Bitcoin and cryptocurrencies. As we reported, Ray Dalio, founder of Bridgewater Associates, when he revealed that he owns some Bitcoin, said he would rather own BTC than government bonds.

According to Dalio, should cryptocurrencies continue to gain traction, investors might decide to invest in them, too, rather than bonds.

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Author: AnTy