Will China lead the global financial reset? Gold-backed national crypto, new regulation in crypto trading and news from Europe and Latin America in this week's Break'N by BTCMEX.
Crypto Gold to replace USD
The Institute of International Finance announced that global debt has reached USD 250 trillion, which is 320% of gross domestic product. Emerging market debt also hit a new record of USD 71.4 trillion.
BTCMEX reported that the US dollar might lose its leading position with the global reset, as the US debt is currently 22 trillion dollars and grows daily.
Financial analysts predict that gold will soon become the “trust anchor” for a renewed international monetary system. They also predict massive digitalization of traditional finance, with blockchain being the main technology of the future.
It’s been reported that heavyweight countries like China and Russia have been accumulating gold for decades. Max Keiser, RT’s financial observer and famous bitcoiner, predicts that China will launch gold-pegged national cryptocurrency very soon. Edith Cheung, partner at blockchain-focused venture capital fund Proof of Capital, shares this opinion saying that the digital Yuan will definitely be born within the next six months.
The Chinese government didn’t make any official statements yet, but if the roomers are true, China will be the first country to successfully launch its national crypto.
Singapore introduced Crypto Derivatives Regulations
Central bank and the Monetary Authority of Singapore proposed to put crypto derivatives under governmental regulations.
According to the proposal, derivatives trading based on crypto underlying assets like Bitcoin (BTC) or Ether (ETH) should subject to the city-state’s Security and Future’s act.
Regulations are to be very attractive for institutional investors. MAS has said the proposal will “allow approved exchanges in Singapore to meet the need of investors to manage their exposure to payment tokens while bringing the activity under regulatory oversight.”
According to BitcoinTradeVolume report, Bitcoin derivatives trading is currently at USD 5-10 billion in daily trading volume, which exceeds the spot trading volume by 10 to 18 times.
Learn more about BTC/USD derivatives trading on BTCMEX.
Europe is investing in AI
The European Commission and European Investment Fund has launched a new investment scheme for artificial intelligence (AI) and blockchain. The blog post stated:
“With the European Commission, we are launching a dedicated investment scheme that will make EUR 100m available to venture capital funds or other investors that support AI and blockchain-based products and services. Because these are cornerstone investments, we expect a total of EUR 300m to be generated for AI and blockchain from other private investors ‘crowding in.’”
Europe is expected to invest USD 674 on research and proof-of-concept stages, and leave China - one of the key players in the industry - behind. The US is reported to currently spend the most - USD 1.1 billion - on innovations.
The goal of the project is to keep the technologies in the European market by getting rid of foreign investors and provide new opportunities for the region’s economic growth.
Argentina: BTC’s not on!
Argentina’s government started the crackdown on Bitcoin trading. Central bank has banned buying BTC and any other cryptocurrency using credit cards after the recent Bitcoin boom in the country. Over the past two weeks, the country has traded the highest amount of Bitcoin on the platform LocalBitcoins.
The main reason for such a high crypto demand in Argentina is the volatility of its national currency - Peso. The peso-dollar exchange rate is quoted daily by the media, alongside weather and traffic reports.
BTCMEX reported that the government restricted buying the US dollar in Argentina. Looking at the economic situation of Argentina, the crypto bull Tim Draper advised the president of Argentina in March 2019 to legalize Bitcoin in order to improve the country’s economic situation.
Dan Schulman: Bitcoin and only Bitcoin
The CEO of payment processor PayPal, Dan Schulman, revealed that he owns Bitcoin (BTC) during his Fortune interview.
PayPal was the first Libra member to leave the association. Schulman commented on the withdrawal, saying that Libra was not the top priority, and the company is currently focusing on something else.
Earlier this year, PayPal CFO, John Rainey, admitted that blockchain and cryptocurrencies in any form are on the company’s radar.
In the Fortune interview, Schulman said: “We think there’s a lot of promise to blockchain technology. It’s intriguing to us, but it really needs to do something that the traditional rails can’t do. Most people think that blockchain is about efficiency, but the system today is pretty efficient.”
Answering if he himself holds any crypto, he said “Bitcoin… only.”
Yahoo added crypto prices to its website
The American news giant, Yahoo Finance, has included cryptocurrencies prices to its website. The website now allows visitors to track prices for major cryptocurrencies, providing CMC-based data including market capitalization, trading volume, circulating supply and others.
The data is provided by CoinMarketCap - a leading crypto analytics website. CoinMarketCap launched new tools on monitoring crypto exchange’s liquidity.
You can track prices for 118 cryptocurrencies on Yahoo Finance today, including Bitcoin (BTC), Ether (ETH), XRP, Bitcoin Cash (BCH), Tether (USDT) and others.
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