Mexico’s Central Bank to Launch its Digital Currency in Next 3 years to “Advance Financial Inclusion”

Mexico’s Central Bank to Launch its Digital Currency in Next 3 Years to “Advance Financial Inclusion,” says the Government

The central bank of Mexico will launch its own digital currency by 2024, announced the Mexican government on social media.

“Banxico reports that it will have its own digital currency in circulation by 2024,” the Mexican government wrote on its official Twitter account this week.

In its post, the central bank said it considers these new technologies and the latest payment infrastructure “very important” and “valuable options to advance financial inclusion in the country.”

Banxico, the monetary authority of Mexico, however, hasn’t confirmed the development itself. The central bank is legally independent of Mexico’s government. An anonymous senior bank official also told Reuters that the announcement was “not official.”

A couple of weeks back, Banxico said in a report that it is actually studying and working on the development of a platform for the implementation of a digital currency but gave no details on timing.

This CBDC project aims to improve financial inclusion by opening accounts for the registration of a digital currency for both banked and unbanked people, the report added.

This week, the central bank of India also said that they need to adopt a basic model for its CBDC.

“Given its dynamic impact on macroeconomic policymaking, it is necessary to adopt basic models initially and test comprehensively so that they have minimal impact on monetary policy and the banking system,” the Reserve Bank of India (RBI) said in a report. “India’s progress in payment systems will provide a useful backbone to make a state-of-the-art CBDC available to its citizens and financial institutions,” it added.

The apex bank further said in its report ‘Trend and Progress of Banking in India 2020-21’ that the CBDC can offer myriad benefits such as liquidity, scalability, acceptance, faster settlement, and ease of transactions with anonymity to its users.

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Author: AnTy

Crypto Asset Reform to Place Australia “Firmly” in the Lead, Bringing More Consumer Interest & Entrants, says Treasurer

“It represents the most significant reforms to our payments system in 25 years,” said Treasurer Josh Frydenberg.

Australia is now planning for a central bank digital currency (CBDC).

The government will consult on a digital version of the fiat currency, Treasurer Josh Frydenberg said in a speech in Melbourne.

Besides the CBDC, the government is already working on crypto regulation. On Wednesday, Frydenberg also said that they would consider a licensing framework to allow crypto transactions within a regulated environment and the best way to introduce a new and appropriate crypto taxation policy.

“The comprehensive payments and crypto-asset reform plan I am announcing will firmly place Australia among a handful of leading countries in the world,” Frydenberg said in an interview with 7NEWS Australia. “It represents the most significant reforms to our payments system in 25 years.”

For this modernization, the new regulations will “broaden” the definition of products and services that can be regulated, which will take crypto “out of the shadows” and into their “world-leading” regulatory framework.

Advice on both is expected to be received by the end of next year.

Regulatory Clarity, Enormous Opportunity

Australia needs to leverage the new technology to gain an advantage, said Frydenberg, noting that the crypto-asset market has surpassed $2 trillion. He further said that more than 800,000 Australians, about 3% of the population, own crypto in some form.

“These are significant shifts which we need to be in front of,” he said. “What is clear is that if we embrace these developments, Australia has an enormous opportunity to capitalize on the convergence between finance and technology.”

The government will also be looking to introduce more regulations over fees being charged to users of digital wallets and ‘Buy Now Pay Later; which accounts for 20% of online retail transactions, with more than 5 million active accounts, in Australia.

While about half of Australia’s population now make payments on their phones, services like Google Pay, Apple Pay, and AfterPay don’t fall under the Payment System Regulation Act, making it difficult for the authorities to oversee the fees charged by them or to promote competition.

As such, they will begin the consultation on modernizing the payment system framework next year.

For consumers, this will establish a regulatory framework to underpin their growing use of crypto and clarify the treatment of new payment methods, and for businesses, these changes will address the tax treatment of crypto assets, new payment methods, and of course, the regulatory ambiguity.

“In doing so, it will drive even more consumer interest, facilitate even more new entrants and enable even more innovation to take place,” said Frydenberg.

BOT Worried About Blank Coins

This week, Thailand’s central bank meanwhile warned commercial banks from being directly involved in trading digital assets, citing the risks arising from high price volatility.

“We don’t want banks to be directly involved in digital asset trading because banks are (responsible) for customer deposits and the public, and there is risk,” said Chayawadee Chai-Anant, a senior Bank of Thailand (BOT) director at a news conference.

Last week, the central bank also warned companies from accepting crypto as payment as it will impact their ability to oversee the economy.

“For digital assets, we are not afraid of everything,” said BOT senior director Sakkapop Panyanukul, “but there is a spectrum – most worrying are blank coins,” those cryptos not benign backed by assets.

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Author: AnTy

Four Years After the Act, SEC Charges Issuers for An $18 Mln Unregistered ICO

Four Years After the Act, SEC Charges Issuers for An $18 Mln Unregistered ICO

This week, the US Securities and Exchange Commission (SEC) charged Steven K. Sprague, President of Rivetz Corp and CEO of Rivetz International SEZC, and both the companies with conducting an illegal, unregistered offering of securities through an initial coin offering (ICO).

It raised $18 million in Ether through this ICO that was not registered with the SEC and did not qualify for an exemption from registration from more than 7,200 investors.

According to the SEC’s complaint, the ICO was conducted during the last bull run, between July and September 2017, during which the defendants sold digital assets called “RvT tokens” to the general public, including US investors.

The complaint alleges that the CEO marketed the digital tokens as an investment opportunity by promoting the value of RvT to investors. The promotion included highlighting that RvT would be listed on cryptocurrency exchanges for trading, touting Sprague’s abilities and managerial skills, and claiming that the token would increase in value as a result of Rivetz’s efforts.

However, the RvT tokens could not be used to purchase any goods or services at the time they were sold, the complaint adds.

The SEC has now, after four years since the sales, charged the defendants with violating the securities registration provisions of Section 5 of the Securities Act of 1933. For this, the SEC praised the assistance of the Cayman Islands Monetary Authority.

The agency is seeking injunctive relief, the return of allegedly ill-gotten gains plus prejudgment interest, and a civil penalty.

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Author: AnTy

Global Crypto Adoption Surges 2,300% in the Past 2 Years, Retail Adoption Growing in Emerging Markets

Global Crypto Adoption Surges 2,300% in the Past 2 Years, Retail Adoption Growing in Emerging Markets: Report

Meanwhile, adoption in North America, Western Europe, and Eastern Asia is powered by institutional investment along with the “explosive growth” of DeFi and centralized services.

Global cryptocurrency adoption among individual investors surged 881% in the past year and over 2300% since Q3 2019, according to crypto analysis firm Chainalysis. Instead of trading and speculating, the firm focused on use cases related to transactions and individual saving.

Based on three factors: peer-to-peer exchange trading volume, the on-chain crypto value received, and on-chain retail value transferred, the firm found that the greatest crypto adoption by retail investors happened in emerging markets, with Vietnam ranking the first followed by India, Pakistan, and Ukraine. Chainalysis said in the report,

“In emerging markets, many turn to cryptocurrency to preserve their savings in the face of currency devaluation, send and receive remittances, and carry out business transactions.”

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It added that unlike the retail adoption in emerging markets, adoption in North America, Western Europe, and Eastern Asia over the last year had been powered largely by institutional investments.

The Chainalysis Global Crypto Adoption Index ranked 154 countries by three main metrics. Both the US and China saw their rankings dropping primarily because peer-to-peer trading volume declined. China ranks 13th, down from 4th last year, while the US is at 8th, from 6th.

This time, the firm took out one factor, the number of deposits by country weighted by the number of internet users, which is found to be skewing the rankings towards countries with comparatively more DeFi users, for which it has now created a completely separate DeFi Adoption Index, to be available in the coming weeks.

It is due to the “explosive growth” of DeFi along with centralized services that are primarily driving the crypto usage in the developed countries where there is already substantial adoption, as per the report. In emerging markets, P2P platforms are the ones driving new adoption.

“Cryptocurrency adoption has skyrocketed in the last twelve months, and the variation in the countries contributing to that show that cryptocurrency is a truly global phenomenon.”

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Author: AnTy

Mark Cuban: Blockchain’s Evolution Over Past 3 Years to Support Smart Contracts, Changed the Game

Mark Cuban: Blockchain’s Evolution Over Past 3 Years to Support Smart Contracts, Changed the Game

WSB traders are applying the same principles of the digital/CryptoAsset world, said the billionaire while name dropping Bitcoin, Ethereum, AAVE, and several NFT projects like Mintable, Rarible, OpenSea, NiftyGateway, SuperRare, NBA TopShot, and Bitcoin Origin, and CryptoSlam.

Billionaire Mark Cuban has been getting more and more cryptocurrency-friendly with each passing day. While previously he didn’t find any worth in them, at least not more than bananas, now he realizes that it’s all about the demand and supply.

And this has him penning the blog titled, “The Store of Value Generation is Kicking Your Ass and You Don’t Even Know it,” where he name drops Bitcoin, his favorite AAVE, and several NFT projects.

While Cuban has been involved in the DeFi space for some time now, the battle between Wall Street Bets and Wall Street has him and the people realizing the true power of decentralization. He wrote,

“WSB traders are applying the same principles of the digital/CryptoAsset world to the stock market, and they are loving the fact that the old schoolers are hating it.”

The owner of Dallas Maverick is slowly coming around to Bitcoin and cryptocurrencies, and in his latest write-up, he talks about the evolution in the store of value.

Previously it was gold, which any gold bug would argue has value because of its history as the foundation for currency, a hedge against inflation, and other narratives and while “there are plenty of other “precious metals” that meet the same criteria, gold simply “has more buyers,” he wrote.

Cuban says this changed over the past 3 years as the “blockchain has evolved to support smart contracts and the ability to uniquely identify digital goods and the transactions associated with them.”

Now, everything is digital, and that is all that the New Generation knows — “This generation knows that a smart contract and the digital good it reflects or a CryptoAsset are a better investment than old school sees, touch or feel uses.”

While following the same laws of supply and demand, the digital space offers all the fun and same sense of ownership, “it has none of the hassles beyond remembering my passwords and dealing with wallets,” noted Cuban.

And though digital goods and crypto-assets markets aren’t perfect with high transaction costs, influenced by narratives, and propensity to be moved by a few big players, “the bottom line is that there are a growing number of investors and traders” believe in it.

The young generation loves its different features, including no central authority, and they don’t care about the Old School Wall Street’s narratives of Price-Earnings Ratios or NPV of future cash flows that are just sales pitches “designed to reward the people with the most money.”

“The more decentralized the power, the more power that comes with the collective working together,” wrote Cuban, adding that’s what Wall Street “hates and will fight because it moves the power out of their hands.” Cuban added,

“Every generation in this country has had its unique special power. This Store of Value Generation has found at least one of their special powers in financial unity. We as a country will be far better off if we understand them, respect them and learn from them, quickly.”

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Author: AnTy

Robinhood Faces Class Action Lawsuit After Blocking WSB Traders from GME, AMC & NOK

It took seven years for Robinhood to develop a trusted brand and it took just one day to destroy that trust.

Earlier today, Robinhood traders were shocked to find they could not trade GME, AMC, and other trendy stocks through their favorite trading app.

Robinhood appeared to block the trading of crowd-favorite stocks like GME. Users were able to sell these stocks without issue, but they were unable to purchase additional shares.

To many, it seemed like a clear issue of price manipulation. Robinhood didn’t like how much money its hedge fund billionaire buddies were losing, so it (and other trading platforms) tried to stop it.

Let’s take a closer look at this story to understand how we got here.

The Story Behind GME, WSB, and Other Trendy Stocks

GameStop (GME) shares have surged to record highs in recent days after unprecedented attention from Reddit’s WallStreetBets (WSB) community.

A few weeks ago, a WSB poster noticed numerous billion-dollar hedge funds had issued huge short-bets against GameStop. Hedge funds had wagered millions that the price of GameStop would drop shortly.

That user decided to fight back, rallying the community to destroy those hedge funds’ short positions.

Nobody expected what happened next.

GameStop stock had gradually grown in value after sitting around $4 throughout 2020. In late 2020, GME stock broke through the $10 mark, surging to $20 in late January.

And then the story went viral. Hedge funds admitted they were facing huge losses because of their ill-timed short bets. WSB users were unrelenting, pouring more money into GME and creating a viral sensation.

By January 14, GME stock was sitting at $40. By January 27, GME surged to $350. At one point on January 28, GME passed $450 per share.

WSB users targeted other stocks, including AMC (for AMC Movie Theaters), BB (for BlackBerry), and NOKI (for Nokia), sending prices of all of these stocks to unprecedented highs.

Some users picked stocks for nostalgia. Others picked stocks for their large short-selling activity. Some picked stocks just because they liked the stock.

Billionaires Fight Back Against GME and WSB

Amidst this unprecedented rise, users were shocked to see some of the biggest tech companies and media platforms rush to defend their billionaire hedge fund buddies.

Media outlets like CNBC and Bloomberg shared “heartbreaking” stories of hedge funds losing millions on their short positions. These media outlets seemed particularly sympathetic towards Melvin Capital and Citron Capital, two of the highest-profile hedge funds that had shorted the trendy stocks.

These media outlets seemed convinced their report would drive users to sell, bursting the bubble and saving their billionaire buddies.

Unfortunately, the opposite occurred: Reddit users noticed that few hedge funds had actually liquidated their positions. So, they decided to buy more.

Users refused to believe the “FUD,” piling more money into GME and pushing the stock even higher.

Robinhood also participated in the defense, appearing to block users from trading GME, AMC, and other trendy stocks.

Approximately 50% of Robinhood users own GME stock. In an instant, Robinhood blocked users from purchasing GME – but allowed users to sell GME. Like CNBC, Robinhood seemed to want markets to crash as users rushed to sell and lock in their gains.

TD Ameritrade and other major trading platforms also appeared to halt the trading of trendy stocks.

Meanwhile, Reddit’s WallStreetBets subreddit temporarily went offline, leading to speculation that Reddit was rising to the defense of hedge funds.

After everything that had happened, it seemed like GME’s legendary rise had come to an end. Corporations and their hedge fund owners had the power to influence markets, block trading, and manipulate trading activity – and they were using this power to protect their corporate overlords.

However, GME stock continued to rise – as did other shares. Even as Robinhood and other platforms appeared to ban trading desperately, WSB was undeterred, continuing to push GME and other stocks to record highs.

Robinhood Faces Class Action Lawsuit

Many users have pointed out the hypocrisy of it all: billionaire hedge funds are freely allowed to trade any stocks they like without consequence, penalty, or halts. They destroyed the economy in 2008 for their own personal gain, faced no consequences, and continue to play their own game by their own rules today.

How can Robinhood and TD Ameritrade ban retail traders from buying stocks they like? How can one company single handedly manipulate markets exclusively to benefit its corporate overlords?

The issue has become so bad that even Ted Cruz and Alexandria Ocasio-Cortez agreed that Robinhood deserved a complete investigation:

Making things look particularly bad for Robinhood is that it’s the leading trading platform for younger investors – many of whom are interested in GME and other trendy stocks.

In fact, it’s estimated that 50% of Robinhood users own at least one GameStop stock.

After users pointed out this hypocrisy, CryptoWhale shared breaking news: Robinhood was facing a class-action lawsuit.

The class-action lawsuit accuses Robinhood of “purposefully, willfully, and knowingly removing the stock “GME” from its trading platform in the midst of an unprecedented stock rise,” depriving retail investors of the ability to invest in the open market. Robinhood’s activity manipulated the open market. The class-action lawsuit was filed in the Southern District of New York.

Some have pointed out the irony of an app named Robinhood protecting its corporate overlords. Robin Hood stole from the rich and gave to the poor – kind of like how GME has stolen from the rich and given to the poor in recent weeks. However, the Robinhood app seems to lack the enthusiasm of its mythological namesake, and that’s why Robinhood is facing a class-action lawsuit.

Hedge Funds Have Lost $70 Billion So Far

There’s good news for people who hate hedge funds and billionaires: hedge funds are genuinely hurting due to GME stock. According to Reuters, hedge funds have lost $70 billion on their short positions in US firms like GameStop in recent weeks. Reuters cited data from Ortex. Ortex data showed that hedge funds had taken loss-making short positions at more than 5,000 US firms in recent weeks.

With GameStop alone, hedge funds have lost $1.03 billion year-to-date. Those shorting Bed, Bath & Beyond lost $600 million. As the price rally continues, losses could reach even higher for hedge funds – especially if retail investors ignore the FUD and keep driving prices up.

What Comes Next?

Robinhood is facing a class-action lawsuit. Other class-action lawsuits could be filed against TD Ameritrade and other trading platforms that have blocked activity.

The good news for people who hate hedge funds is that they appeared to have lost big. Some hedge funds will go bankrupt because of this issue.

Is a trading platform allowed to singlehandedly halt the trading of stocks it decides users shouldn’t buy? Should billionaire hedge funds have such complete control of the media that they can manipulate stock prices with a single interview?

These are all good questions – and they’re all good reasons to buy Bitcoin.

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Author: Andrew Tuts

Hedging on Fears: New Crypto Volatility Index Let Traders Bet on Market Turbulence

Hedging on Fears: New Crypto Volatility Index Let Traders Bet on Market Turbulence

Over the years, since Crypto investing became more mainstream, we have seen the creation of futures contracts, funds, and now Volatility indices.

The Blockchain-powered Fintech startup company, COTI, has announced the launch of a brand new cryptocurrency index, which allows traders to bet on the likelihood of shorter/longer-term market volatility. At this stage, traders are able to open positions by depositing and using the Tether stablecoin (USDT).

With the popularity of indices like futures, which allow investors to bet against a digital asset’s long-term performance, the introduction of a volatility index shouldn’t be so surprising. The Gibraltar-based company explained that “Users who expect volatility to increase can open a CVI position. If correct, they can take profit by selling their position once the index has risen.” However, if traders correctly anticipate low volatility, they can profit by collecting fees from other traders that opened positions.

In a sense, COTI helps to bring more liquidity to the crypto market.

To avoid overly febrile activity on the platform, CVI liquidity providers will need to deposit and hold USDT for at least 72 hours. Once any position is opened, a CVI trader must keep it open for 6 hours before it can be closed or sold.

For the moment, aspiring traders can link to COTI’s CVI through major wallets such as MetaMask and TrustWallet. COTI intends to add digital assets like Ethereum (ETH) and its native COTI Token in the future.

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Author: James Fox

Too Afraid to Buy the Dips; Too Much FOMO to Resist Buying ATHs

12 years back, Bitcoin first came into existence with the genesis block having a reward of 50 BTC. The genesis block came with the text “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”

In 2020, history repeated itself as central banks all over the world went crazy with money printing. This led institutions to see Bitcoin as a hedge against weak dollar and risk of inflation, making it part of their investment portfolio.

The unprecedented institutional interest in the crypto market had Bitcoin rallying to nearly $35k from the March low of 3,800.

Even at this record high price level, Anthony Scaramucci, the founder of SkyBridge Capital, which today announced its Bitcoin Fund, urged people to invest in it. “You’re still way early to Bitcoin if you’re buying today,” tweeted Scaramucci on Sunday.

“When you look at this bitcoin rally that we have been seeing in the last couple of weeks and months, really, there’s two big elements driving it. One is the continuous entry of institutional players,” PwC’s global crypto leader Henri Arslanian said Monday on CNBC’s “Street Signs Asia.” These institutional players have “an outsized impact on the markets.”

Arslanian who expects this trend to continue over the coming months said, there’s also “a lot of regulated players as well,” which was “not the case a couple of years ago.”

Combined with retail FOMO, “there’s a lot of momentum going on in the space.”

As the price continues to go higher and higher, people continue to feel the FOMO as Douglas A. Boneparth, CNBC Advisor Council tweeted, “Instead of drinking coffee and eating avocado toast every day, I should have been buying bitcoin.”

This can especially be seen in the way the market moved in the last few hours.

Bitcoin’s price BTC -3.41% Bitcoin / USD BTCUSD $ 31,558.08
-$1,076.13 -3.41%
Volume 82.36 b Change -$1,076.13 Open $31,558.08 Circulating 18.59 m Market Cap 586.69 b
2 h Why Does Bitcoin (BTC) Continue to Tear Up Without Ever Stopping? 3 h Ethereum Blockchain Becomes Absolutely Unusable Yet Again as Average Fees Hits ATH at $20 4 h Anthony Scaramucci’s SkyBridge Capital Launches Institutional-Grade Fund to Directly Invest in Bitcoin; Offers GBTC Swap Too
went to $34,825 on Sunday on Coinbase and today we went down to $27,648 and already we are above $31,000.

The same has actually been the case with the second-largest cryptocurrency Ethereum ETH 13.21% Ethereum / USD ETHUSD $ 1,036.04
$136.86 13.21%
Volume 59.1 b Change $136.86 Open $1,036.04 Circulating 114.12 m Market Cap 118.23 b
3 h Ethereum Blockchain Becomes Absolutely Unusable Yet Again as Average Fees Hits ATH at $20 4 h Too Afraid to Buy the Dips; Too Much FOMO to Resist Buying The All Time Highs 6 h ETH Rips to Jan 2018 High As The Market Rotates Bitcoin Profits into Ethereum
which took just over a day to go from $750 to $1,170 only to fall to $885 to now be back above $1,000.

Even YouTuber Marques Brownlee, best known for his technology-focused videos and his podcast, Waveform: The MKBHD Podcast, took to Twitter to share his interest in buying in Bitcoin and missing out with the price continuing to keep on going higher and higher.

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But still, with bitcoin adoption reaching only 2%, a huge population is on the sidelines and institutions have just started coming in.

Just last month, the day BTC broke its previous ATH $20k China’s mainstream financial outlet, Caijing ran a survey on Weibo asking people’s position on Bitcoin which revealed that 11k out of the 20.8k participants responded with “Such a scam, will never buy” while 3.1k said they might buy later.

This only goes on to show that this bull cycle is still in its early phase.

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Author: AnTy