Author: Linda Mckinney

MIAMI BEACH (Fla.) – Uncertainty over how cryptocurrency regulation will be implemented in the future, especially in the U.S. remains a major barrier to wider adoption of digital assets like bitcoin, according to panelists Wednesday at one the biggest bitcoin conferences of the year.

However, speakers at the Bitcoin 2022 conference held in Miami Beach, Fla. were optimistic that regulators and policy makers would be more interested in understanding the technology and supporting innovation in the sector.

Many in the industry see consumers being able pay for services and products with crypto as a way to increase acceptance of digital currencies. According to a Checkout.com report, regulatory uncertainty is the main reason merchants have not started offering crypto as a payment option. Based on a survey of more than 3,000 businesses in 10 countries, most of which are online marketplaces and financial technology, the report found that regulatory uncertainty will continue as national legal frameworks have been slow and inconsistent in creating crypto regulations.

Mike Novogratz is the chief executive of investment company Galaxy Digital. He stated that Washington’s attitude towards cryptocurrency crackdowns has changed.

“The tone of the president’s executive orders has changed recently.” It was a shift in tone from being negative towards being balanced,” Mr. Novogratz stated Wednesday.

Last month, President Biden signed an executive directive directing federal agencies to report on digital currency and consider new regulations. The order highlighted the potential risks that cryptocurrencies pose for the economy, climate and national security, but it also pointed out the economic benefits of the currency, which is not the case with previous government pronouncements.

Bitcoin prices surged after the announcement of the executive order, indicating that the industry welcomed the government’s change of tone.

Novogratz is a former manager at Fortress Investment Group and an early investor of bitcoin. He said that he doesn’t expect any new crypto legislation to be released this year. He stated that despite the fact that politics is set up in a way that makes it seem like we will be in gridlock, the likelihood of them actually damaging things has decreased.

He stated that the shift in Washington’s tone was due to when the crypto community mobilized for the infrastructure bill, which was passed last year and aimed to increase tax enforcement on crypto transactions. Although the crypto industry was unable to amend the legislation, the united effort showed Washington’s growing influence and financial industry.

According to Mr. Novogratz, he called every senator he knew at that time. He said that it was a wake-up call because of the number of calls made against the provision by cryptocurrency advocates. They realize that this is a powerful voting bloc and often a single-issue bloc. Don’t mess with my bitcode.

Panelists also emphasized the importance regulators providing standards for cryptocurrency asset custodians. Henson Orser is the president of Komainu Holdings Ltd. He said that there has not yet been a framework for issues such as data entry and segregation fees.

Michael Shaulov is the chief executive officer of Fireblocks Inc., which builds tools to secure the storage and transfer bitcoins and other cryptocurrencies. He also stated that the industry was using best practices despite a lack standard regulations.

“I believe that most regulators…they are somewhat behind getting the point where they’ll actually create a standardization around it,” Mr. Shaulov stated.

The Bank of England (BOE), told the media on Thursday that it is preparing a regulatory framework to regulate digital currencies. The statements of the Bank of England (BOE) are derived from the Financial Policy Committee (FPC), which mentioned sanctions related to the ongoing Russia-Ukraine conflict. Financial regulators and bureaucrats around the world have been concerned in recent years that Russia could bypass economic sanctions through crypto assets.

The BOE statement on Thursday stated that while crypto assets may not be able to circumvent current sanctions at scale, such behavior highlights the need to ensure innovation in crypto assets is accompanied with effective public policy frameworks to…maintain broader trust in the financial system.

BOE says crypto assets could ‘Present Financial Stability Risks.’ Central Bank is Concerned about Stablecoins

The cryptocurrency economy has been criticized by members of the BOE for a long time. Andrew Bailey, the governor of Bank of England, raised concerns in mid-November about El Salvador legalizing bitcoin as a currency in South America. In December 2013, Sir Jon Cunliffe (the BOE’s deputy Governor for Financial Stability) stated that crypto assets could fall to zero.

Financial stability was mentioned in the FPC report that was released on Thursday. “The FPC continues its assessment that crypto assets pose no direct threat to the stability and health of the UK’s financial system. This is due to their small size and interconnectedness to the wider financial system,” the central bank committee stated. Further, the FPC added:

Crypto assets could pose financial stability risks if they continue to grow at the same pace as in the past.

Since the beginning of the Russia-Ukraine conflict in 2014, politicians around the world have either discussed, proposed or even implemented legislation to regulate and research digital currencies. The BOE also wants crypto assets to be under the same regulatory umbrella that traditional financial assets, according to statements from the FPC meeting.

The FPC also discussed stablecoins and how a major crypto asset without a reliable deposit guarantee might pose a threat. The FPC stated that a systemic stability coin that is backed with a deposit from a commercial bank would pose a risk to financial stability.

Warner Bros. plans to release millions upon millions of DC Comics-themed cards created by Cartamundi Group. These cards can also be tethered for redeemable non-fungible tokens (NFT), collectibles. Cartamundi, a manufacturer of board and card games, owns Ace playing cards. The announcement was published March 10th. It states that Warner Bros. will release hybrid collectibles through a new platform called Hro App. Further details are provided in the announcement that hybrid packs will be available for purchase starting at $5 and ending at $120.

Redeemable NFTs with DC Comics themes will be issued using Ethereum-based layer 2 (L2) protocol Immutable X. The DC Comics Hybrid Trading Cards will be available on shelves and digital wallets starting March 2022. Additional and limited-edition content will be added throughout the year. Warner Bros. noted that the DC Comics-themed trading cards will include the action movie ‘The Batman’.

This is not the first time DC Comics have released NFTs. The company released what DC Comics described as the ‘largest NFT drop’ ever during last year’s Fandome conference. In the past 12 months, Marvel, DC Comics’ competitor, has also been dropping Marvel supervillain and superhero NFTs.

Warner Bros. Executive: NFTs Give Fans a “New Way to Engage with Their Favorite Characters from the DC Multiverse.”

DC Comics also collaborated with Veve Collectibles to release NFT collectibles featuring some well-known comic book characters. Warner Bros. has been dropping NFT collection from various movies, such as the Matrix NFTs of the film “The Matrix Resurrections.” After Warner Bros. launched space jam NFTs in Miami, the Matrix NFTs have been issued.

“Trading cards has been a beloved hobby for many decades. Combining this enthusiasm for collecting and a custom NFT, is just brilliant. This program brings DC to fans in an way that’s never before done,’ Pam Lifford from Warnermedia’s Global Brands and Experiences division said during the announcement. This platform will allow fans to connect with their favorite DC characters and expand their interaction with other collectors.

On Monday, cryptocurrencies were all in the red as investors turned to traditional investments such as bonds and gold due to rising tensions between Russia & Ukraine.

In the last 24 hours, more than $65 billion has been wiped out of global crypto. Investor risk appetite was reduced by tensions in Eastern Europe. Bitcoin and Ethereum were both lower on Monday.

Bitcoin fell 0.8% to $42,000 while ether fell 2.2% to $2,877. Etherhas has lost approximately 7% in the past seven days, as compared to bitcoin which fell by 1.1%.

Altcoins led the decline, with cardano and solana all falling more than 3% Monday. Cardano lost 3.45% within 24 hours, while solana lost 4% and 5.26 respectively.

Elsewhere in the world, US Stock futures fell while Europe’s Stoxx 600 was down 98%. Investors rushed to invest in gold and Swiss Franc during this uncertainty.

All this despite crypto advocates claiming that bitcoin and other cryptocurrencies are safe stores of value. As Michael Saylor stated last week: If investors aren’t ready to hold Bitcoin for a decade, they shouldn’t keep it for 10 minutes.

GlobalBlock analyst Marcus Sotiriou said that risk assets such as crypto and tech stocks are suffering from the uncertainty of war. He stated that President Joe Biden’s threat to shut down the Nord Stream 2 pipeline (which transports Russian natural gas from Germany to Russia in case of an invasion by Russia) had added a layer of nervousness.

Sotiriou stated that the pipeline supplies a large portion of Europe’s natural gasoline. If it were to be shut down, this could lead to higher oil prices and increase inflation.

He stated that high inflation was the reason for the Federal Reserve raising rate and could lead to a, due slow growth from aggressive monetary policy.

Crude oil prices rose Monday to $100 per barrel. European natural gas prices rose 5% on Monday, raising concerns about consumer inflation.

Some crypto analysts are more concerned about the market for 2022 than others, and claim it could be a bearish years. In an interview with Stansberry Research, Lyn Alden , investment strategist, stated that bitcoin is not expected to do well in the coming year due to its tendency to perform poorly following major bull runs. However, she pointed out that there isn’t much historical data to support this claim.

“Bitcoin’s major bull run historically – there is only a small sample of about four: 2011, 2017, 2017 and 2020. These occurred in rising PMI environments, which means that economic acceleration. She said that bitcoin’s price action has not been as strong in recent times because of the current period.

The huge FOMO trend emanating from crypto circles will make 2022 a difficult year for Asian banks.

Many institutions are making the leap, whether it’s because they fear missing out on the opportunity or make business-smart decisions. This is especially true in Southeast Asia where DBS has established a crypto Digital Exchange Platform.

Siam Commercial Bank has a 51% share of cryptocurrency trader BitKub in Thailand. Union Bank of the Philippines has plans to offer crypto trading as well as custodial services. So on and so forth.

Fitch Ratings and Goldman Sachs, investment giants, are both worried by all this. It’s not a good idea to wave the red “danger” flag, as the money’s trajectory is moving away from old-school payment methods like coins and notes. It’s more of a be-careful-what-you-wish-for vibe.

Fitch analyst Tamma Februaryrian notes that the upside to getting on board with crypto could be increased trading and custodial costs over time. As science fiction turns into financial reality, banks could gain competitive advantages and build new customer bases in the nascent field of service. It is not likely that the competition threats posed in wholesale clearing, settlement, and cross-border payment by fintech startups and crypto technologies will diminish.

There are risks as regulatory responses and crypto disruptions move faster than executive offices can adapt. Moreover, market infrastructure and safeguards may not be moving fast enough.

Febrian states that changes could increase compliance costs, or reduce existing/planned business activities, while tighter regulation helps contain financial and operational risks, giving potential cryptocurrency investors greater assurance. There may be greater risk for crypto engagement in areas where banks have less stringent risk controls. This could include money laundering or terrorism financing.

Febrian says that reputational risks can also stem from legal activity, such as if customers believe banks have implicitly supported crypto trades that go sour.

Another thing to think about is the widespread belief that increasing adoption of cryptocurrency will lead to rising prices. According to Goldman strategists Zach Pandl, Isabella Rosenberg, mainstream adoption of crypto assets can be a double-edged weapon. It can increase valuations but it will also likely increase correlations with other financial markets variables, decreasing the diversification benefit of the asset class.

This warning is contrary to the common wisdom that cryptocurrencies can be used for diversification. It’s worse than Jamie Dimon CEO of JP Morgan Chase calling cryptocurrency a ‘fraud and ‘worthless’. Warren Buffett called Bitcoin a “mirage” that doesn’t pass the currency test.

It has been easy for crypto people to dismiss such naysaying like the protestations made by analog-age thinkers. Goldman’s criticism makes mockery of crypto bulls who tee off any happening in El Salvador which made Bitcoin legal tender. Or whether Microsoft, Paypal, or Starbucks will accept it.

Other important changes are happening at the top monetary authorities around the world, from the People’s Bank of China (Beijing) to the Federal Reserve (Washington). The PBOC is the leader in introducing a digital currency for central banks, which the crypto-crazed crowd calls CBDC’s. Fed Chairman Jerome Powell is also moving in this direction.

Powell’s team had announced ten days ago that it is seriously considering a digital currency, or a Fedcoin. Markets were realizing that the long-held belief that crypto was a hedge against inflation was false, and the news came at the exact same time as the announcement.

The debate is raging over whether an Fedcoin or an e-yuan would be able to fortify or ban private crypto assets. China’s President Xi Jinping has effectively banned crypto mining and trading.

What about the Fed? Powell’s team is being cryptic about their intentions. Bitcoin enthusiasts know that the team of the Securities and Exchange Commission Chairman Gary Gensler could soon decide the future for crypto assets.

It’s difficult not to see the connection between what North Korea is doing and this. The biggest concern about crypto is its ability to make life easier for terrorist financiers, money launderers and tax evaders. Chainalysis, an advisory firm, stunned everyone when it revealed that Kim Jong Un’s hacker Army accumulated $400 million in cryptocurrency last year. This is a 40% increase over 2020.

The real number is likely to be much greater. It allows Kim to finance his nuclear ambitions and to slap the United Nations sanctions. Gensler’s phone must be ringing with panicked calls from the Treasury Department and top national security officials.

Goldman’s doubts about the normal supply and demand dynamics of cryptocurrencies should serve as a warning to Asia banks. The predictability that they usually apply to assets or services may also be lost.

Analyst Febrian says that, as of right now, “we believe recent crypto activity will not have major near-term ratings repercussions on Fitch-rated banks from Southeast Asia,” but continues to monitor developments as they occur.

However, we are still learning a lot about compliance to reduce risks and regulatory controls. This includes know-your-customer procedures. Credit rating agencies’ ability to assess a bank’s digital assets risks is also uncertain. New ones will emerge as innovation accelerates.

This is why Asia banks need to be very cautious about Goldman’s concern that crypto assets may not follow the same laws of financial gravity as other stores value.

According to Seba, the CEO of a Swiss bank, Bitcoin’s value could almost double to $75,000 in 2017 as more institutional investors embrace the most popular cryptocurrency on the planet.

Guido Buehler stated that he believes the price will rise at the Crypto Finance Conference held in St. Moritz (Switzerland) on Wednesday.

The boss of the Swiss bank, which is regulated and focuses on cryptocurrency, stated that ‘our internal valuation models indicate an price right now between $50,000 to $75,000’. “I am quite certain we will see that level. Timing is everything.

Bitcoin’s value has fallen after it reached an all-time high of $69,000 in November. Its price fell below $40,000 Monday. This means that bitcoin is at a low point not seen since September.

Buehler was asked if bitcoin would surpass the record-breaking levels of last year. However, he said that he thinks so but stressed that volatility will continue to be high.

This week’s price drop was caused by rising Treasury yields and the possibility of higher central banks interest rates. Investors continued to sell risky, growth-oriented assets as a result.

According to Coin Metrics, Bitcoin dropped as much as 6% Monday and touched a low of $39771.91, At 5 a.m., it traded at $42,921.55. ET on Wednesday

After a week of poor trading, the cryptocurrency market has seen a decline. This was especially true for momentum stocks. Investors have begun to shift into more value and cyclical names as the U.S. Treasury 10-year yield spiked at 2022’s start. The 10-year U.S. Treasury yield rose to 1.8% Monday after closing at 1.5% in 2021.

Noelle Acheson from Genesis, head of market insight, said that bitcoin has behaved like a risk asset “on numerous occasions”

“When the market is jittery bitcoin falls. There are many signs that the market sentiment has been affected by the rise in the 10-year. This is bad news for any asset with high volatility cash flows. Bitcoin is liquid, unlike many other assets that have been contaminated by this brush and can therefore take more selling pressure without taking a big hit.

Buehler stated that he believes institutional investors will boost bitcoin’s price in 2022.

He stated that institutional money would likely drive up the price. “We work as a fully regulated banking institution. Asset pools are available that are ready to invest at the right time.

Buehler stated that Seba Bank had examined the technology behind cryptocurrency and determined that it was going to’redefine finance’ before seeking regulatory approval.

CNBC reported Wednesday that Bill Tai, a venture capitalist from California, said that the crypto market is experiencing a ‘yet other wobble’.

He said, “I don’t know when it will go back up but it’s coming back up,”

He said that cryptocurrency is at the core of institutional acceptance.

Many El Salvadorans took to Twitter to claim that Bitcoin cryptocurrency disappeared mysteriously from their Chivo wallets.

In September, El Salvador became the first country in the world to accept Bitcoin as a legal currency. This move attracted global media attention, but also attracted criticism from the opposition. The International Monetary Fund (IMF), which warned the country not to make Bitcoin a legal payment, due to risks associated with the volatility of the cryptocurrency.

The Chivo wallet, a cryptocurrency wallet that citizens can use to make Bitcoin transactions, is called the Chivo wallet. The wallet was launched by Nayib Bukele, the eccentric but beloved president of the country. It was created after the legalization of Bitcoin as a currency in the nation. The Chivo wallet has been accepted by large banks and merchants in the country, allowing them to increase their credit functionality and accept Bitcoin.

According to the New Scientist report, citizens in El Salvador claim that their Bitcoin is disappearing from their Chivo wallets. El Comisionado has already identified 50 of these complaints. “The government has not replied to the complaints nor acknowledged the errors. People are demanding that the government respond to their complaints. El Comissionado explained to the New Scientist that many people have waited for months to receive a reply.

Currently, however, the government has not yet issued an official statement regarding the matter.

In November, Bukele announced that it would build the first Bitcoin City, which will be funded by a $1 billion Bitcoin Bond. The proposed city will be built along the Gulf of Fonseca, near a volcano. The government of Bukele is counting on Bitcoin as a way to stimulate the country’s economy and encourage investment. This assumes that Bitcoin prices remain on an upward trajectory.

Bukele says that residents of Bitcoin City won’t be required to pay income, property, capital gains, or payroll taxes. With foreign investment in mind, the city will be built.

It is worth noting that El Salvador had 1,220 bitcoins as of November 26th. El Salavdoran President was currently on a spreeof adding more Bitcoin to its country funds.

CNBC conducted a survey and found that 83% of the millennial millionaires have cryptocurrency. Survey respondents were asked to identify investors with assets of $1 million or more. This excludes primary residences. 53% of millionaires surveyed have at least 50% in crypto assets such as bitcoin and ethereum. Nearly one-third of participants polled had at least three quarters of their investable assets in crypto currencies.

CNBC’s survey reveals that older millionaires are more successful than younger millionaires. Only 4% of baby boomers own crypto, while three quarters of generation X participants don’t have any cryptocurrencies. The millennial millionaires are the leaders in leveraging crypto assets to create investable wealth.

When discussing the results, George Walper, president of Spectrem Group, said that there was a significant difference in wealth between generations. CNBC and Walper’s survey suggest that crypto assets will be’remain central in their investing in the future,’ especially for millennial and generation Z investors.

President of Spectrem Group Says Millennials Seem to be Comfortable with the Volatility’

Despite crypto’s decline in USD value, “millennial millionaires” plan to add crypto in 2022. Walper says there are two types millennial crypto investors: those who have made millions out of crypto and those who add crypto assets to their existing investable wealth. A majority of millennials stated that they had inherited funds. Millennials with more than $5 million in investable wealth said that inheritance was a major factor.

CNBC also notes that there are many millennials who have made millions using crypto and have been referred to as’self-made millionaires’. CNBC also asked Walper if millennials would continue to invest in crypto markets if the crypto economy declines. Walper stated that they seem to be comfortable with volatility.

Blockchain.com raised $300m in March and its post-valuation jumped to $5.2 Billion. Blockchain.com’s CFO Macrina Kgil spoke about the company’s $1 trillion worth of cryptocurrency transactions. Kgil also revealed that Blockchain.com had BTC as well as Ethereum on its balance sheets. The crypto company was founded by Nicolas Cary and Benjamin Reeves in 2011. On Tuesday, described that they have acquired the Latin American crypto investment platform .

Blockchain.com stated that the company has made an impact in Brazil, Chile and Colombia. Blockchain.com is similar to the Coinbase announcement that said Unbound Security’s acquisition would result in a presence in Israel. It also notes that there will be a physical presence’ in Latin American countries through local opening of offices and hiring. In its announcement, the Luxembourg-based company stated that their goal is to make cryptocurrency solutions more accessible and easier for the unbanked.

In a statement, Peter Smith, Blockchain.com CEO, stated that Latin America offers one of the greatest growth opportunities in crypto in the next decade. “Millions of people have seen inflation at its worst and new currencies emerge from thin air. They also experienced political instability, which created a favorable climate for crypto. Smith said that the Sesocio team aims to give every Latin American access to a global cryptocurrency platform.

The acquisition of Blockchain.com follows the deal the company made with Griid Infrastructure, a bitcoin mining firm. Griid stated to the media that it had secured a $525m credit facility from Blockchain.com on November 23. Blockchain.com also acquired Storm Inc., an investment firm Magic Carpet and Aix, a consumer startup.

Guido Quaranta (Sesocio’s CEO and co-founder) said that they are proud of the achievements in Latin America and the business growth. “I am confident that Sesocio can thrive in the next chapter of this journey. We will create a new era of crypto accessibility in Latin America, and beyond, together with Blockchain.com.

Sundar Pichai (Google and Alphabet CEO) recently spoke out about his experiences with cryptocurrency during an interview at an economic forum held in Singapore. Pichai was asked about his company and what cryptocurrency he has.

Pichai, who admitted that he didn’t have any cryptocurrency, said, “I wish I did.” It’s something I’ve tried out, but not in any serious way.

This revelation might seem surprising, as Pichai revealed in 2018 that his 11-year-old son was mining cryptocurrency Ethereum on the family’s home PC.

During a New York business conference, he stated, “Last week, I was at dinner and we were talking about Bitcoin. My son clarified that I was talking Ethereum, which is slightly more different.” Pichai said, “He’s eleven years old.” He told me that he was mining it.

During his speech at the Sydney Dialogue, Modi, the Indian Prime Minister, called on all democratic countries to ensure cryptocurrency does not get into the wrong hands and ruin the youth. In his speech, the PM stated that there are new risks and new forms conflict with diverse threats.

These range from cyberspace to seabeds to cyberspace. Technology is already a key instrument in shaping the future international order and a major tool for global competition.