Former TD Ameritrade Digital Assets Head Joins Fed Reserve as Chief Innovation Officer

Former TD Ameritrade Digital Assets Head Joins Fed Reserve as Chief Innovation Officer

Sunayna Tuteja has joined the Federal Reserve System as the Chief Innovation Officer. Before heading this position, Tuteja was previously working at TD Ameritrade as the Managing Director, Head of Digital Assets & DLT (Blockchain, Crypto), reads her LinkedIn profile.

TD Ameritrade has been providing its services to cryptocurrency users for some time now. It also made a strategic investment in ErisX, the cryptocurrency spot, and futures exchange during the bear market.

Tuteja joined the broker in 2014 to head its digital strategy department, following which she changed the department that specifically dealt with cryptocurrencies and blockchain technology. Here, Tuteja only spent less than two years.

Under her latest role, she will be working on the Federal Reserve System’s digital innovation strategy. As a CINO, the official is required to stay abreast of the technology industry and market trends to understand their impact on the Fed system. The description for this position reads,

“This role will be responsible for identifying, researching, enabling and evangelizing for innovative new technologies while fostering a culture of technical innovation, encouraging System-wide collaboration and experimentation.”

This is another positive development for the cryptocurrency market, bringing us all that much closer to positive and clear regulations.

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Author: AnTy

ECB President Says Central Banks Are ‘Very Unlikely’ to Add Bitcoin as a Reserve Asset

ECB President Says Central Banks Are ‘Very Unlikely’ to Add Bitcoin as a Reserve Asset

  • ECB President says central banks “are highly unlikely” to add Bitcoin (BTC) as an asset any time soon.
  • The digital euro is still in the works and could be released by 2024, she also said.

In a Business Insider report, European Central Bank (ECB) President, Christine Lagarde, repeated her skepticism on Bitcoin, stating central banks are not looking to add the digital asset as a reserve currency any time soon. During a call with The Economist, Lagarde again said BTC is not a real currency; hence central banks are “very unlikely” to add it to their balances.

“It’s very unlikely – I would say it’s out of the question,” Lagarde on whether central banks will add Bitcoin as a reserve asset.

These, however, are repetitive comments on Bitcoin from Lagarde, who has been against the coin since her appointment to the ECB. Earlier in the year, Lagarde released a statement warning against investment in Bitcoin – stating it is a highly speculative asset and could be used for “reprehensible” money laundering.

However, she believes that there’s room for digital currencies (such as the digital euro) to grow in the coming years. Due to the current global pandemic, governments across have taken a step towards digitization. Agreeing to ECB board members’ proposal, Lagarde stated the ECB is preparing a digital euro, which could be released in the coming four years.

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Author: Lujan Odera

$6B Worth of New Gold Reserve Found in Turkey; “Bitcoin Fixes This with Absolute Scarcity”

$6B Worth of New Gold Reserve Found in Turkey; “Bitcoin Fixes This with Absolute Scarcity”

Meanwhile, Bitcoin still has a fixed cap of 21 million — pristine scarcity.

About 3.5 million ounces of gold that was detected in the mining field of Turkish Agricultural Credit Cooperatives’ subsidiary Gübretaş in Bilecik is estimated to be worth around $6 billion.

“We are talking about a value of about $ 6 billion when we try to put it in value at today’s prices,” said the Chairperson, Fahrettin Poyraz on Tuesday about the reserve in the Söğüt gold mine. About 1.92 million ounces of the reserved are also ready for extraction, he said.

“It is estimated that 1.6 million ounces could be converted into reserves at a rate of 83%,” said Poyraz adding, “We aim to extract the first gold in two years and turn it into value for the Turkish economy.”

And this is what the crypto community has long been talking about all along. While the digital gold, Bitcoin, has a limited 21 million BTC supply, gold reserves continue to be found, expanding its supply.

“Nobody knows the global Gold supply, Bitcoin fixes this with ABSOLUTE SCARCITY,” said BTC proponent Max Keiser.

This isn’t even the first time, back in October, a huge amount of gold reserves, $127 billion was also discovered in Russia.

As Mike Belshe, the CEO of California-based cryptocurrency firm BitGo said in his interview with Bloomberg last week, “The main thing that’s unique about Bitcoin is it’s got a level of scarcity that we really don’t have in any other market.”

When it comes to precious metals, there are also “some endeavors to mine precious metals from asteroids they fly by which could happen at some point. Mathematically bitcoin is pristine in its scarcity,” said Belshe.

Compared to bullion’s 22.33% return in 2020, BTC is up 223% YTD while trading near its all-time high of $24,300 that was set just over this past weekend.

According to Belshe, the world’s largest cryptocurrency has a “property that literally no other asset class has.” Not to mention, Bitcoin is “immune” to the “unprecedented levels” of money printing that central banks are doing around the world.

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Author: AnTy

Here’s What’s in Store for Bitcoin Amidst the Strong Demand & Exhausted Market

The macro trend is bullish, with the BTC exchange reserve going down and the stablecoins reserve going above.

This week is turning out to be about sideways action after last week’s monstrous rally that saw us breaching the all-time high of $20k to reach a new high of $24,300.

The week started on a red note as we dropped to nearly $22,000. Today, BTC/USD has been trading at $22,600 with $5.83 billion BTC 2.69% Bitcoin / USD BTCUSD $ 23 354,3135
628.23 2.69
Volume 42.15 b Change 628.23 Open $23 354,3135 Circulating 18.58 m Market Cap 433.88 b
1 d Crypto Exchange EXMO Hacked; BTC, ETH, XRP, ZEC, USDT, and ETC Stolen By Attacker
.

Everyone is waiting for a correction to get the chance to stack even more sats. However, it is to be seen if and when that pullback comes.

In the short-term, Grayscale, an essential indicator of bitcoin’s institutional demand, has closed subscriptions temporarily with big December futures and options expiry coming this Friday while implied volatility gets “very high” along with the futures basis, painting a bearish picture.

Unlike this, the broader market with the UK virus panic and the fiscal package coming is pulling the market in the opposite ‘bullish’ direction.

“Thinking volatile pause in the trend ahead. 25K-19.5K all in play” noted trader and economist Alex Kruger while cautioning to be “careful loading short-term bullets too soon.”

He said that for a sustained move higher, the market needs the leverage and volatility first to come down.

If we recall the $10,000 breakout, last week’s breach through the $20k was much more aggressive. Compared to July’s 25% movement, December’s action was close to 35% from trough to peak from start to finish.

Although it makes sense for bitcoin to give the market the much-expected dip, there’s no knowing if we’ll see one amidst the strong institutional demand.

With whales active on exchanges, there is a dumping risk, for sure, but Ki-Young Ju, the CEO of data provider CryptoQuant, is “not short on BTC since the buying power is so strong now.”

When the Exchange Inflow Mean hits 2 BTC, as it has now, “it is likely to be sideways or bearish. It always has been sideways since November.”

The bullish macro trend is also evident in the Bitcoin exchange reserve going down, BTC supply on exchanges has declined 20% since January, and stablecoin exchange reserves going up.

“Even if we see some corrections, it would be sharp and recover very fast,” said Ju.

Stablecoin-All-Exchange-Reserve

Source: CryptoQuant

Meanwhile, Bitcoin is in a real supply and liquidity crisis, which is “extremely bullish” for the world’s largest cryptocurrency.

This crisis can be seen in the accumulation addresses that only received bitcoin but never spent them, which is at 2.7 million BTC — hoarding 14.5% of the circulating supply. In addition to this, at least 3 million, 16% of supply, is forever lost.

Not to mention, out of the 210k BTC mined in the past six months, Grayscale has acquired 185k BTC of it.

While the Exchange Balances Liquidity is vanishing, a mere 12% of BTC supply is liquid, as per Glassnode. The amount of miner unspent supply, which has been increasing since the last halving, is currently holding at 1.7 million BTC.

“I believe we will see this significantly reflected in Bitcoin’s price in the upcoming months.”

Rafael Schultze-Kraft Glassnode CTO

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Author: AnTy

Bitcoin and MMT Critic Janet Yellen Picked as Treasury Secretary by Biden

President-elect Joe Biden has chosen former Federal Reserve Chairwoman Janet Yellen to become the next Treasury Secretary. Yellen, an economist, if confirmed by the Senate, will become the first woman to hold the position.

This holds meaning for the crypto market as Jake Chervinksy, a General Counsel at Compound Finance, said,

“This is the single most important decision for the next four years of US crypto policy. The next Treasury Secretary will have enormous influence on whether the right to financial privacy is upheld or sacrificed to mass surveillance & forced custodianship.”

For Wall Street, it could be good news as just last month she said the US needs to “continue extraordinary fiscal support.”

Yellen had been at the forefront of policy-making for three decades, which means nobody knows the Fed better than her. Not only will she be a great Treasury Secretary, but she will also help the government achieve its objective of increased coordination between monetary and fiscal policy, said crypto trader and economist Alex Kruger.

But not only Yellen is not a fan of MMT, having said that its proponents are “confused,” but she is not really a bitcoin proponent either.

Back in December 2017, at the height of the bull run, she called Bitcoin a “highly speculative asset.”

“Bitcoin, at this time, plays a very small role in the payment system. It is not a stable source of value, and it does not constitute legal tender,” she said at the time, adding that while the Fed is researching it, “I think to my mind, limited benefits from introducing it, a limited need for it and some substantial concerns.”

During Yellen’s testimony before the House Financial Services Committee in July 2017, someone photobombed her with the “Buy Bitcoin” sign.

Yellen-buy-bitcoin

In Oct. 2018, while explaining why BTC is not a useful form of currency, Yellen shared that she received “a gift of bitcoins.” Raz Suprovici, the founder of the bitcoin gifting service Biterica, had sent 0.0031642 BTC, worth about $20 at that time, which has now increased to roughly $60, to Yellen to make her understand it better.

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Author: AnTy

The Fed & ECB Are ‘Committed’ to CBDC But ‘Not Racing to be First’

Jerome Powell, Chairman of the Federal Reserve, reaffirmed this week that he is committed to evaluating the costs and benefits of the digital dollar.

“Here at the Fed and in the US, we are committed to thoughtfully and carefully evaluating the potential costs and benefits of a central bank digital currency,” said Powell during his speech at a virtual conference hosted by the European Central Bank.

He further shared that the Fed has been actually actively participating with other central banks on this, adding: “We feel that’s been a very productive collaboration.”

While the central bank head clearly specified his commitment to a central bank digital currency (CBDC) being a matter of when not if, at the same time, a digital dollar isn’t coming anytime soon.

“We haven’t made a decision to issue a CBDC, and we think there’s quite a lot of work yet to be done as we engage with public constituencies here in the US and around the world,” said Powell dashing any hopes of the US competing with China’s digital yuan which already had a series of pilot tests last month.

Because the US Dollar is “the world’s principal reserve’s currency,” Powell said they would approach the question of a digital dollar with “great care” and “it’s critical that we really get it right as opposed to trying to be the first.”

The main focus for the Fed is on how a digitized version of currency could improve what is “already a safe, effective, and dynamic payments system,”’ said Powell. He further added that in the US, there is still a “strong demand for cash.”

Earlier this week, Fed had released a “Central Bank Digital Currency: A Literature Review,” where it talked about exploring the intrinsic features of CBDC as a means of payment and store of value.

Another report this week came from Deutsche Bank in which it said that in the long term, “central bank digital currencies will replace cash.” But advanced economies need to overcome the challenges of low interest rates and privacy first to succeed.

The bank also said that while the EU has been talking about the need for a digital transformation, its efforts have been disappointing.

During the event, Christine Lagarde, President of the European Central Bank, also mirrored Powell’s sentiments saying they are “not racing to be first.”

But maintained that if it is going to facilitate cross-border payments and contribute to better monetary sovereignty, then “I think we should explore it.”

Her “hunch” is that it will come, but it will not be a substitute for cash rather be a “complement” to it.

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Author: AnTy

Reserve Bank of Australia And ConsenSys Partner On CBDC Research & Development

The Reserve Bank of Australia (RBA) recently announced they have partnered with several financial institutions to research the potential of distributed ledger technology for a CBDC.

Based on the announcement, the partnering financial institutions include software firm ConsenSys, financial services company Perpetual, National Australia Bank, and the Commonwealth Bank.

The financial institutions will research the benefits of using distributed ledger technology on central bank wholesale digital currencies.

The RBA also said the partnering group would be investigating the development of a proof of concept when issuing tokenized CBDC’s.

Partnership on wholesale market participation

The collaboration will be focused on a wholesale market participant who might be utilizing the digital currency for tokenized syndicate loans via a DLT platform. They will also investigate the effect of security settlements between payments and delivery using cross-chain atomic swaps.

According to Deputy Governor of the Reserve Bank of Australia, Michele Bullock, the project will seek to determine the impact of CBDC on innovation, risk management, and efficiency in financial market transactions. Findings may point to how CBDCs will be handled in the future within the Australian financial market.

He also stressed the need to work with industry partners to explore the market to achieve the same goals. He pointed out,

“While the use of a CBDC is still open in these markets, we look forward to working with industry partners.”

The project will be exploring various areas to place a future role for CBDCs in the Australian financial market.

Australia making a U-turn to support CBDC

This project may signify the Australian’s financial authority to pursue more interest in CBDCs. The country’s reserve bank has set various policies that seem to be working against the growth of CBDC in the country. However, the recent partnership to get more involved in CBDC research shows the bank’s willingness to keep things open to CBDCs.

Earlier last month, RBA announced that it would continue to deploy resources towards the research on CBDC, even though the financial institution insists the country has no basis for issuing one in September.

The bank has also pointed to the success of the country’s effective real-time platform for new payments, which has been considered an alternative to issuing a CBDC.

The bank has also revealed that it is set to offer fiat banknotes access if Australians still show the same interest in using them.

The results of the research to be published next year.

The Reserve bank will publish the report next year, once the project has concluded, according to the report on the development.

The RBA also revealed that the partnership might result in other potential automation and programmable financial assets features. Bullock added that the RBA would enable the research team to carry out their exploration. The result of the research is expected to be published during the first half of next year.

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Author: Ali Raza

FinCEN’s Updated Travel Rule Proposal for Crypto Open to Public Comment

Last week, the Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve invited comments on the proposed rule that would change the recordkeeping and travel rule regulations under the Bank Secrecy Act.

Under the current rules, financial situations must collect information related to funds transfers and transmittals of funds over $3,000. The information to be collected includes the name and address of the transmitter, the amount of the payment, its execution date, any payment instructions from the originator, and the beneficiary’s bank or recipient’s financial institution’s identity.

But as per the amendment, this limit is lowered to $250 for international transactions while the threshold for domestic transactions remains unchanged. This applies to transactions involving “convertible virtual currencies” (CVC) and “digital assets with legal tender status.” It further proposes to clarify the meaning of “money.”

The official report notices that “public use of CVCs has grown significantly in recent years.” Estimated transactions in Bitcoin alone were about $366 billion in 2019 and $312 billion in 2020 through August.

It further stated that malign actors have been using them for all sorts of illegal activities.

The proposed modifications will help them gain information in criminal, tax, or regulatory investigations and protect against international terrorism.

“FinCEN is aware that the CVC industry is working on developing systems and processes to achieve full compliance with the Travel Rule as applied to virtual currency transactions as a result of the distinctive characteristics of CVCs.”

They “welcome” comments on these efforts that will be accepted only for 30 days.

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Author: AnTy

Fed Reveals Details About Digital Cash ‘Without The Anonymity Of Physical Currency’

Federal Reserve Bank of Cleveland President Loretta Mester revealed that each American would receive digital dollars directly. She said,

“Legislation has proposed that each American have an account at the Fed in which digital dollars could be deposited, as liabilities of the Federal Reserve Banks, which could be used for emergency payments.”

This was revealed on Wednesday when Mester delivered a speech to the Chicago Payment Symposium titled “Payments and the Pandemic,” in which she talked about “Central Bank Digital Currencies.”

Here she wrote about how during the pandemic, CBDCs have gained traction around the world (China, Bahamas, Brazil, Bermuda, South Korea, Russia, UK, France, Thailand, Japan, and many more).

Fed Digital Cash

Other proposals include creating digital cash — which is just like the physical currency issued by central banks but in digital form and “potentially, without the anonymity of physical currency.”

Digital cash wouldn’t require the involvement of commercial banks as they would be directly issued to the users’ digital wallets with central-bank-facilitated transfer and redemption services.

However, the demand for and use of such instruments is to be further considered, she said, adding the potential risks and policy issues surrounding CBDC also needs to be better understood and costs and benefits evaluated.

Mester also said that the Fed has been researching about issuing CBDC for some time, and already the technology lab of the Board of Governors has been testing the benefits and tradeoffs of distributed ledger platforms.

While the Federal Reserve Bank of Boston is working with MIT on different technologies for the CBDC, the New York Fed has collaborated with BIS to understand the relevance of fintech for central banks.

Although the authorities have been doing all the research, she said it “does not signal any decision” by the Fed to adopt such currency as they need to first better understand the issues related to financial stability, market structure, security, privacy, and monetary policy.

Metser concluded her speech by saying that the payment system, which is a critical part of the US infrastructure, must remain modern, resilient, and able to adapt to changing customer needs as they evolve.

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Author: AnTy

Winklevoss Twins Make a Case for $500,000 per Bitcoin as Fed Sends Markets Higher & Dumps Dollar

Although there was nothing “historic” about the Federal Reserve Chairman Jerome Powell’s speech yesterday, as of yet, the much-hyped Jackson Hole speech failed to cool down the markets.

The stock market continued to roar higher, making new all-time highs. Every asset reacted to Fed’s announcement that it would allow inflation to run above its longstanding 2% target but only for the markets to retrace.

However, except for Nasdaq, both the S&P 500 and Dow Jones Industrial Average closed higher than the previous day.

The US yield curve also steepened sharply, promising improved interest margins for banks. This steepening also reflects investors’ disappointment over the lack of detail about the Fed’s bond-buying program.

“Be careful what you wish for,” said David Kelly, chief global market strategist of JPMorgan Asset Management. “There is a risk that overall inflation will overshoot [the central bank’s] target, and they won’t have the political will to pull in the reins before it becomes a problem.”

Maybe Next Time

Bitcoin and gold price charts meanwhile are identical.

The largest digital currency had declined to under $11,300 when Jackson Hole speech took it to over $11,600 only for bitcoin to crash harder to $11,150. Similarly, the precious metal spiked 2.3% but dropped almost 3.3%.

Today, both the assets have recovered with BTC trading near $11,500 and gold above $1,950.

When it comes to the US dollar, it managed to jump to 93.3 level but today made its way back to 92.2. Ever since the introduction of the Fed in 1913, the USD has lost over 90% of its purchasing power.

Analysts and economists were anticipating a groundbreaking campaign on inflation, but Powell delivered less than expected dovishness. According to analyst Mati Greenspan, maybe not this time, but “if the markets are demanding stronger action, the Fed will be there to serve it… perhaps next time.”

Making a case for $500,000 Bitcoin

Although not as much as expected, Fed’s speech was the symbol of central bank’s support to Wall Street, that it has been providing since the pandemic began.

However, “even before COVID-19, and despite the longest bull run in U.S. economic history, the government was spending money like a drunken sailor, cutting taxes like Crazy Eddie, and printing money like a banana republic,” wrote the Winklevoss twins in their latest blog where they make a case for $500,000 Bitcoin.

According to them, there are fundamental problems with gold, oil, and the U.S. dollar as stores of value going forward.

Meanwhile, with inflation coming, money stored in a bank will get run over, those invested in the stocks market will keep pace and money stored in gold and bitcoin will outrun where that in “bitcoin will run the fastest, overtaking gold,” which has a market cap of $9 trillion.

And if the digital currency continues on its path, going from whitepaper to over $200 billion in market cap in under a decade, the price of bitcoin could appreciate 45x from where it is today, which means we could see a price of $500,000 U.S. dollars per bitcoin.

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Author: AnTy