Category: Finance

Sources Say Valkyrie Bitcoin Strategy ETF Set to Launch on Nasdaq This Week

Sources Say Valkyrie Bitcoin Strategy ETF Set to Launch on Nasdaq This Week

After the Proshares Bitcoin Strategy exchange-traded fund (ETF) listed and smashed records in the first two days of trading, Vaneck’s bitcoin futures ETF was given the green light to start trading next week. Furthermore, sources say that the Valkyrie Bitcoin Strategy ETF is set to launch this week with a possible listing on Friday.
Proshares Bitcoin ETF Smashes Records
October is the month of bitcoin exchange-traded funds as the United States approved the first ETF last week. Proshares Bitcoin Strategy ETF (NYSE: BITO) listed on Tuesday and saw close to $1 billion in volume on its first day of trading.
The following day, BITO continued to perform remarkably and bitcoin (BTC) spot markets tapped a new lifetime price high at $67,017 per unit.

If $BITO keeps up this pace of inflows it wont have any futures left to buy by the end of the month due to pos limits (via rough back of envelope calc w/ @JSeyff ). https://t.co/KauFuaPzhb
— Eric Balchunas (@EricBalchunas) October 21, 2021

In fact, the senior ETF analyst for Bloomberg Intelligence, Eric Balchunas, explained how the bitcoin ETF was one of the fastest in history to capture $1 billion in assets. Balchunas said:
RECORD BREAKER: BITO assets up to $1.1b after today, making it the fastest ETF to get to $1b (2 days) breaking [gold’s] 18 [year] old record (3 days), which is poetically apropos.
Chart shared by senior ETF analyst for Bloomberg Intelligence, Eric Balchunas, on Wednesday.
Two Sources Say Valkyrie Bitcoin Strategy ETF Set to Launch Friday
Balchunas is one source that has said that the Valkyrie Bitcoin Strategy ETF is set to launch this week. In addition to statements from Balchunas, crypto reporter Danny Nelson confirmed with a Valkyrie spokesperson that the fund will begin trading on Friday after it “cleared the final regulatory hurdles.” Bloomberg’s senior ETF analyst also explained the news on Twitter.
“Just got word Valkyrie is changing the ticker back to BTF 🙁 SEC prob wasn’t a fan of BTFD. Also odds [are] growing they will launch tomorrow. Not final yet [though],” Balchunas said.
Then he corrected his tweet and noted that the Valkyrie ETF would list on Friday. “I had said this was launching [tomorrow] it’s actually going to be on Friday. Sorry about that,” the analyst further detailed.

The Valkyrie fund will leverage the ticker symbol “BTF” but there was talk about the company adopting the ticker “BTFD.” Unlike Proshares and Vaneck, the Valkyrie ETF will list on Nasdaq rather than the New York Stock Exchange (NYSE).
Valkyrie’s ETF was originally filed in August and the operating expenses per year are 0.95%, according to the pre-effective amendment filed Wednesday morning.
What do you think about the possibility of Valkyrie’s ETF launching this Friday? Let us know what you think about this subject in the comments section below.

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Russia Considers Partially Replacing Dollar Reserves With Digital Assets in Future

Russia Considers Partially Replacing Dollar Reserves With Digital Assets in Future

Amid ongoing sanctions, the government of Russia has been working to limit the country’s dependence on the U.S. dollar. The Ministry of Foreign Affairs now says it’s possible to partially replace the greenback in currency reserves and trade settlements with other currencies and even digital assets in the future.
Foreign Ministry Official Sees Russia Acquiring Digital Assets to Reduce US Dollar Dependence
In its efforts to counter the negative effects of expanding U.S. sanctions, the Russian Federation is putting an emphasis on “dedollarization,” Deputy Foreign Minister Alexander Pankin remarked in a recent interview with the Interfax news agency. The “purposeful work” aimed at limiting the influence of the U.S. dollar on the domestic economy and foreign trade operations is decreasing the “sanctions risks,” the high-ranking diplomat added.
However, challenges associated with these sanctions still remain, and Pankin stated that Russia’s “settlements with major trading partners need protection and stability in the context of the currency used.” For the time being, Moscow is not facing sanction threats with euro settlements and transfers, but U.S. dollar payments. Pankin explained these go through U.S. banks and clearing systems which allow authorities in Washington to block any transactions they view as suspicious.
Alexander Pankin
In these circumstances, Foreign Minister Sergey Lavrov’s deputy thinks the expediency of further reducing the share of the dollar in the nation’s foreign currency reserves as well as its use in international settlements is beyond doubt. Russia can replace the U.S. fiat money with other national and regional currencies “and in the future, probably, with some kind of digital assets,” Pankin pondered.
This would require significant efforts in bilateral, regional, and multilateral formats, noted Alexander Pankin, who oversees international economic cooperation at the Ministry of Foreign Affairs. Established models of cooperation between states and commercial structures would have to be reorganized and appropriate mechanisms to support the functioning of new settlement systems would need to be introduced, the government official elaborated.

Pankin’s comments come after President Vladimir Putin warned Washington that “the United States is cutting the branch it is sitting on” by undermining the dollar for the sake of momentary political gain. Speaking with CNBC’s journalist Hadley Gamble, the Russian leader admitted that cryptocurrency has value and “the right to exist.” In the interview, published by the Kremlin last week, he stated that crypto can be used for settlements in the trade of oil and other energy resources in the future.
Cryptocurrencies and related activities have been partially regulated with the adoption of the law “On Digital Financial Assets” which went into force this year, but Russia needs to further amend its legislation to ensure comprehensive regulation. While digital coins are viewed as money surrogates and prohibited as payment tools under current law (which affirms the ruble as the only legal tender), the government in Moscow has recently indicated it’s not planning to ban Russian citizens from acquiring cryptocurrencies.
Do you expect Russia to add digital assets to its currency reserves in the future? Tell us in the comments section below.

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Iran to Pilot ‘National Cryptocurrency,’ Amend Central Bank Law

Iran to Pilot ‘National Cryptocurrency,’ Amend Central Bank Law

The central bank of Iran is gearing up to begin the pilot phase of its digital currency project in the near future, its new head announced to representatives of local media. The monetary authority is also preparing to move forward with a plan to reform the legislation that governs its own activities.
Iran Preps Pilot for Sovereign Digital Currency
The “national cryptocurrency” of Iran will enter its pilot stage soon, the recently appointed Governor of the Central Bank of Iran (CBI) Ali Salehabadi has unveiled. Speaking to reporters after his first meeting with lawmakers, the high-ranking official said the regulator is now studying potential risks and benefits associated with the initiative. Quoted by IRIB News and the Financial Tribune, he explained:
The pilot trial will start, once the Money and Credit Council approves it.
Salehabadi, who has been heading the CBI since Oct. 6, did not provide any further details regarding the Iranian central bank digital currency (CBDC). According to the English-language business daily, the new phase of the project is likely to be in line with earlier plans for the development of a national crypto.
The report notes that three years ago the Informatics Services Corporation, CBI’s subsidiary operating the country’s banking automation and payment services network, was tasked to develop a sovereign digital currency. A CBDC prototype was designed using the Hyperledger Fabric platform, later statements by its representatives revealed.
It became clear that the digital version of the Islamic Republic’s national fiat, the rial, was being developed on a private blockchain. Unlike cryptocurrencies based on public blockchains such as Bitcoin, the Iranian state-issued coin is not going to be mined.
The public was never updated on the progress of this initial project until more recent announcements came out that a “crypto rial” plan is underway. Officials have emphasized that the Iranian crypto is going to be a digital currency circulated by the CBI and not a decentralized cryptocurrency that could be used for small, cashless transactions, the publication details.

New Commission to Prepare Amendments to Iran’s Central Bank Law
Besides the digital currency announcement, Iranian media has also learned that the central bank’s new management and members of the Majlis agreed to establish a joint commission tasked to reform the legislation concerning the CBI. Its members will be expected to quickly finalize a long-awaited plan to update the law that governs the central bank’s activities.
Governor Salehabadi also said that a special working group will be formed to clarify the positions of the bank and the government regarding cryptocurrencies. While, executive authorities in Tehran have been going after crypto investing and trading, only allowing banks and licensed moneychangers to use coins minted in Iran to pay for imports, lawmakers have opposed the restrictive policies. They believe that friendlier regulations would help Iran to circumvent U.S.-led sanctions and boost its economy.
Mining has been the one crypto-related sector that has received more clarity in terms of regulation. Iran recognized the extraction of digital currencies as a legal industrial activity in 2019 and introduced a licensing regime for entities involved in the business. And although mining farms have been blamed for electricity shortages during the extremely hot summer this year, restrictions have since been lifted for authorized crypto miners which number over 50, according to the state-run power utility Tavanir.
Do you think Iran will eventually issue its own digital currency? Share your expectations in the comments section below.

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Grayscale Confirms Plan to Convert GBTC Into Bitcoin ETF

Grayscale Confirms Plan to Convert GBTC Into Bitcoin ETF

Grayscale Investments has confirmed its plan to file for its bitcoin trust (GBTC) to be converted into a bitcoin exchange-traded fund (ETF). “The NYSE Arca will file a document called the 19b-4 to convert GBTC into an ETF,” said Grayscale’s official.
GBTC to Become Bitcoin ETF
Grayscale Investments has confirmed that it will convert its flagship product, Grayscale Bitcoin Trust (GBTC), into a bitcoin exchange-traded fund (ETF). Jennifer Rosenthal, Grayscale’s communications director, tweeted Monday:
Today, I’m happy to confirm that Grayscale will file for GBTC to be converted into an ETF as soon as there’s a clear, formal indication from the SEC.
She described: “Grayscale’s position has always been clear: we are 100% committed to converting GBTC — and our product family — into ETFs, when the SEC has formally expressed their requisite comfort with the underlying bitcoin market.”
The Grayscale communications director added that there are positive developments within the SEC, including the approval of a futures-based bitcoin ETF that is expected to start trading Tuesday. The bitcoin futures ETF from Proshares will trade under the ticker symbol “BITO” on the NYSE.
Rosenthal explained that this means:
Once there’s official and verifiable evidence of the SEC’s comfort with the underlying bitcoin market — likely in the form of a bitcoin futures ETF being deemed effective — the NYSE Arca will file a document called the 19b-4 to convert GBTC into an ETF.

The company’s total assets under management (AUM) is $53.5 billion as of Oct. 18, with GBTC holding about $39.77 billion.
Grayscale CEO Michael Sonnenshein told CNBC Monday:
There is a lot of excitement for regulators finally allowing a bitcoin anything onto a national securities exchange … When you look at the structure of a bitcoin futures product, there is going to be an impact to investors.
What do you think about Grayscale converting GBTC into a bitcoin ETF? Let us know in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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President of Mexico Denies Having Interest in Adopting Bitcoin as Legal Tender

President of Mexico Denies Having Interest in Adopting Bitcoin as Legal Tender

The President of Mexico, Andres Manuel Lopez Obrador, denied having any interest in adopting cryptocurrencies as legal tender in the country. The statements, offered in a press conference in the National Palace this week, also confirmed that the Mexican government will keep dealing with the financial matters of the country in a traditional and orthodox way.
Mexico Won’t Adopt Bitcoin as Legal Tender
The President of Mexico stated his opinions about bitcoin and cryptocurrencies earlier this week. In a press conference offered at the National Palace, Lopez Obrador denied having any interest in adopting Bitcoin as legal tender, as El Salvador did earlier this year. When asked by a journalist about the matter, he stated:

No. We are not going to change in this aspect. We see fit to maintain the orthodoxy in managing finances. We are not going to try to innovate a lot in the financial system.

The statements serve to continue the stance Mexico has taken on cryptocurrencies to date. Lopez Obrador instead stated they would pay special attention to the tax situation in the country, ensuring tax collection goes normally, without evasion happening.

We will ensure that there is no tax evasion and privileges in tax payments. This is enough.

Troubles With Crypto
The current government of Mexico has had a negative relationship with cryptocurrencies. The president of the Bank of Mexico, Alejandro Diaz, denied that bitcoin was money or a good store of value based on its volatility, back in September. In the same vein, Finance Minister Arturo Herrera stated that cryptocurrencies could not be used in the financial system of the country “in order to maintain a healthy distance between them and the financial system” in June.
However, this has not stopped people from trying to learn and include crypto in their investment portfolios and businesses. One of the richest men in the country, Ricardo Salinas, stated that Banco Azteca, his bank, was working to be the first to include bitcoin in the country. In fact, these statements prompted the Finance Minister to clarify that cryptocurrencies must exist separate from the traditional finance system, as explained before.
In September, Salinas, who is also the owner of Elektra, one of the biggest retail franchises in Mexico, hinted at the adoption of Bitcoin payments in their stores using the Lightning Network, a second-layer protocol designed to allow for transactions with lower fees.
What do you think about the opinion of the president of Mexico on not adopting bitcoin as legal tender in the country? Tell us in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Mark Cuban Won’t Invest in Bitcoin ETF, Prefers to Buy BTC Directly

Mark Cuban Won’t Invest in Bitcoin ETF, Prefers to Buy BTC Directly

The owner of the NBA team Dallas Mavericks, Mark Cuban, has said “no” to investing in bitcoin-based exchange-traded funds (ETFs), one of which could start trading next week in the U.S. The Shark Tank star does not see a reason for him to invest in a bitcoin ETF, emphasizing that he can buy the cryptocurrency directly.
Mark Cuban Says No to Bitcoin ETF
The Shark Tank star and owner of the NBA team Dallas Mavericks, Mark Cuban, has shared his thoughts on the heavily hyped bitcoin exchange-traded funds (ETFs). While the U.S. Securities and Exchange Commission (SEC) has yet to approve a bitcoin ETF, the first bitcoin futures ETF could begin trading in the country as early as next week.
However, Cuban is not planning to invest in a bitcoin ETF or a bitcoin futures ETF when one starts trading on an American exchange. Responding to a question in an interview with CNBC, published Friday, whether he plans to invest in any bitcoin-based ETF, the shark tank star bluntly replied:
No. I can buy BTC directly.
Cuban has been in the crypto space for quite some time. He previously called bitcoin “better gold than gold” due to its algorithmic scarcity, seeing the cryptocurrency as a store of value rather than a currency. He said in April:
That’s why I own bitcoin and why I never sold it.
The owner of the Dallas Mavericks also previously revealed that he had invested in ether (ETH), dogecoin (DOGE), non-fungible tokens (NFTs), and a number of blockchain companies. He and Tesla CEO Elon Musk see dogecoin as the “strongest” cryptocurrency for payments.
As for cryptocurrency regulation, Cuban believes that the rules are unclear and has publicly criticized the SEC for taking an enforcement-centric approach to regulating the crypto industry. “The problem isn’t that people are looking for grey areas, it’s that there rarely are defined rules. Regulation through litigation traps all the people who can’t afford a lawyer, accountant, or advisor,” he opined.

While futures-based bitcoin ETFs provide investors with some exposure to the crypto market without actually owning any coins, Todd Rosenbluth, director of ETF and mutual fund research at CFRA, explained:
The ETF price will not match the price of bitcoin. As such, it is likely better for short-term exposure than for buy and hold long-term investing.
What do you think about Mark Cuban’s comments? Let us know in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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G7 Finance Ministers and Bankers Adopt Guidelines for Central Bank Digital Currencies

G7 Finance Ministers and Bankers Adopt Guidelines for Central Bank Digital Currencies

Any digital currency issued by a central bank must support financial and monetary stability, finance leaders from G7 member states have insisted. State-issued coins should also ensure privacy, transparency, and data protection, the officials stated. The forum adopted 13 public policy principles for retail digital currencies and stressed that “CBDCs are not ‘cryptoassets.’”
CBDCs Must ‘Do No Harm’ to Stability, G7 Finance Chiefs Say
Recognizing the potential benefits of innovation in digital money and payments, finance officials from the Group of Seven (G7) major economies addressed relevant public policy and regulatory issues at their latest meeting which also produced over a dozen guidelines for central bank digital currencies (CBDCs). In a released statement, the participants reaffirmed:
Any CBDC should be grounded in our long-standing public commitments to transparency, the rule of law and sound economic governance.
A sovereign digital currency designed to be used by households and businesses must “support and do no harm” to a central bank’s ability to maintain monetary and financial stability, the G7 finance leaders said after the meeting on Wednesday. “A CBDC would complement cash” and could serve as “an anchor for the payments system,” they added. It should also meet “rigorous standards” of privacy, transparency, and data protection and be resilient to various risks such as cyber threats, fraud, and illicit use.
The G7 finance ministers and central bankers acknowledge the role CBDCs could play in enhancing cross-border payments. At the same time, the high-ranking officials recognize their shared responsibility to minimize what they describe as “harmful spillovers to the international monetary and financial system.”
Discussing innovation in private digital money, the policymakers reiterate a commitment to ensure that developments there are safe and consistent with the group’s policy objectives. If not properly regulated, a stablecoin could pose significant risks to financial stability, they point out while also warning that volatile, unbacked cryptocurrencies could not be widely used as a means of payment.

G7 Issues 13 Public Policy Principles for Retail CBDCs
In a report published by the inter-governmental forum, the differences between digital currencies issued by central banks, on one hand, and cryptocurrencies and stablecoins, on the other, are further highlighted. “CBDCs are not ‘cryptoassets,’” the group’s financial leaders emphasize, noting that the latter are not issued by a central bank and that fiat-backed digital coins are a liability of private entities. The wider infrastructure of CBDCs, however, could involve participants from both the public and the private sector.
Pointing out that no monetary authority in G7 has yet made a decision to issue its own digital currency, the authors have organized their recommendations by formulating 13 public policy principles for retail CBDCs meant to facilitate policy deliberations. National governments and international organizations can refer to these guidelines which have been divided into two categories: “Foundational Issues and Opportunities.”
Monetary and financial stability is one of the foundational principles. By designing a CBDC that supports public policy objectives, central banks can use the digital currency as an instrument to enhance stability and manage the impacts on financial intermediaries, the report notes. Under legal and governance frameworks, G7 officials mark the need to observe the rule of law and maintain economic governance. Policymakers stress:
Appropriate national legal, regulatory, supervisory and oversight frameworks are essential to ensure trust, resilience, security and confidence in any CBDC.
Data privacy is another important principle that requires regulators to ensure accountability for the protection of users’ data and transparency in terms of how information is secured and used. This is considered essential for the trust and confidence in a CBDC. Operational resilience and cyber security is the fourth principle that calls for all entities involved in a CBDC ecosystem to adopt data security and cybersecurity strategies.
Competition is a key aspect and the G7 finance chiefs believe that “CBDCs should coexist with existing means of payment and should operate in an open, secure, resilient, transparent and competitive environment that promotes choice and diversity in payment options.” While state-issued digital currencies are expected to offer more accessible, faster and cheaper payments, the illicit finance principle puts an emphasis on the commitment to mitigate their use in facilitating crime.
Spillovers should be addressed to avoid risks of harming the international monetary and financial system, including the monetary sovereignty and financial stability of other countries. The energy usage of a CBDC is another major consideration. The energy and environment principle envisages the building of efficient digital currency infrastructures that support the international commitment to a ‘net zero’ economy.
According to the G7 report, CBDCs present a number of opportunities in areas such as payments to and from the public sector and cross-border functionality where the new digital fiat currencies can potentially reduce frictions. The Opportunities category of principles that the Group of Seven advises monetary authorities to consider also includes digital economy and innovation, international development, and financial inclusion.
The new G7 guidelines come after a meeting in June when the group’s finance leaders agreed to publish a set of common rules for central bank digital currencies. The U.S. Federal Reserve, the European Central Bank, and Bank of Russia are among dozens of monetary authorities currently working to develop and issue CBDCs. So far, the People’s Bank of China has the most advanced project, having already launched numerous trials with the digital yuan.
Do you expect monetary authorities to follow the public policy principles for CBDCs outlined by the G7 finance chiefs? Let us know in the comments section below.

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Crypto Industry Pushes For SRO

Crypto Industry Pushes For SRO

The crypto industry is finally taking initiative to shape regulations with one proposal gaining pace being the establishment of a crypto self-regulating organization (SRO).

“The organization would have a code of conduct for all members. Priority topics would include prevention of market manipulation, sound custody practices, robust AML/sanctions requirements and consumer protection, including prohibition of deceptive trading practices,” Michelle Bond, head of the Association for Digital Asset Markets (ADAM), says before adding:

“Members of the organization would commit to establishing a system where market data of the highest caliber is made freely accessible to all market participants and regulators.

The organization would routinely perform oversight and examinations of firms in coordination with the SEC and CFTC and market surveillance.

The organization would be provided enforcement authority for cases of noncompliance, with the ability to refer enforcement cases to the SEC and CFTC as well.”

Numerous other industries, including stocks, have their own self-regulating organization with the authority to enforce compliance. Crypto is now fighting to establish its own. Bond says:

“Such an organization would define the regulatory perimeter of digital asset securities and commodities in coordination with the SEC & CFTC, and have established processes to whitelist a digital asset as a security or commodity through a written review process approved by the SEC & CFTC and in line with their formal definition.

Following the whitelisting of a certain digital asset, the SEC or CFTC would have a 90-day window to object to a classification.”

The Securities and Exchanges Commission (SEC) lacks the expertise for an indepth and nuanced analysis of the ever growing crypto sector where some are clearly securities, but something like a stablecoin or the Olympus token that has a soft peg, are clearly not securities.

To gain clarity throughout the crypto space from an organization with the right expertise, this proposal has now gained the attention of even Congressmen.

Connecticut Democrat Jim Himes raised the suggestion of a crypto SRO at a House Financial Services Committee hearing with SEC Chair Gary Gensler last week.

As you might expect Gensler said it is not necessary, to his ambition to expand the SEC jurisdiction and budget presumably because otherwise it isn’t clear why for other industries it is necessary, but not for cryptos.

That’s especially when the Whitehouse itself admits they lack the expertise, but want a wholistic and strategic approach to cryptos which a crypto regulator can provide.

Apparently executives from Andreessen Horowitz plan to meet lawmakers and administration officials this week to discuss the proposal for a crypto SRO, with this clearly being a serious suggestion of how the establishment and this space can potentially work together.

That’s after SEC has lost the trust, especially after Gensler responded with threats of lawsuits to requests for clarification, an approach other SEC officials have stated they found highly unusual.

That hostility due to the regulators being from a completely different background that lacks the nuances of developments in crypto, has led to some projects firewalling the United States, including its citizens alongside North Korea and Iran.

That has led to considerable anger from American investors who ultimately blame the government for being denied some very lucrative opportunities, including the $1 billion dYdX airdrop.

A clean slate through a crypto SRO can be one way to mend relations as then at the very least it would be regulators that we can’t blame they don’t know what they’re doing or don’t know what they’re getting into. Bond says:

“Digital Assets are the future of finance – it’s time that the U.S. has market governance and standards which reflect that. ADAM remains committed to working with industry firms, lawmakers and regulators to develop standards that facilitate fair, orderly and efficient markets.”

Bitcoin Touches $58,000 as China’s Bond Crisis Spreads

Bitcoin Touches $58,000 as China’s Bond Crisis Spreads

Bitcoin rose to $58,000 to touch a new recent high of $58,500 with it currently trading at $57,500 as the crypto tries to overtake resistance.Ethereum has also jumped to above $3,700 with it significantly lagging behind bitcoin as the latter seemingly takes the show.

What exactly is driving it is not clear. Some say the eight years and one trillion dollars delayed bitcoin ETF is what might explain the price rise, but bitcoin began rising before any suggestion of its approval.

Some say it might be a hedge of sorts for gas and oil rising prices, with the continued crisis in China potentially being another explenation.

The bond market crash there is seemingly expanding with S&P Global Ratings downgrading Greenland Holdings, one of China’s biggest property developer that has built some of the tallest buildings.

They have a yearly revenue of circa $22 billion and total assets of $114 billion, making them the biggest after Evergrande to come into the spotlight.

Crypto prices, Oct 2021

SP also downgraded E-House (China) Enterprise Holdings, a smaller company that claims they are “China’s largest real estate agency and consulting services company.” Kim Eng Tan, a credit analyst at S&P Ratings, said in a report:

“We see a risk that a disorderly correction in the property market could cause sharp price declines, hitting the personal wealth of homeowners.

Such an event could also contribute to large-scale losses by investors in wealth management products, and the contractors and service firms that support the developers.”

Bonds issued by developers including Shanghai Shimao, China Aoyuan Group, and Country Garden Properties fell between 1.6% and 7.4% in a continued market rout.

All these are new names as concerns expand much beyond Evergrande, with stocks in China remaining in destress while elsewhere they’re green for once.

Just how much this bond crisis is affecting bitcoin is not clear as crypto data from China are now sparse but by some estimates about $20 billion in bitcoin went from mainland China to global exchanges in the first half of 2021.

That would be based on a lot of guess work you’d think, especially if cryptonians in China are now regularly using VPNs, but it may be the sort of data that goes into informing policy there and it is a clear indicator that people in China keep on bitcoining.

G7 leaders issue central bank digital currency guidelines

G7 leaders issue central bank digital currency guidelines

Group of Seven advanced economic nations has been discussing central bank digital currencies (CBDCs) this week, concluding that they should “do no harm” and meet rigorous standards.Finance leaders from the G7 met in Washington on Oct. 13 to discuss central bank digital currencies and endorsed 13 public policy principles regarding their implementation.The G7, which comprises Canada, France, Germany, Italy, Japan, the U.K., and the U.S., mandated that any newly launched CBDCs should “do no harm” to the central bank’s ability to maintain financial stability. In a joint statement, G7 finance ministers and central bankers said:“Strong international coordination and cooperation on these issues helps to ensure that public and private sector innovation will deliver domestic and cross-border benefits while being safe for users and the wider financial system.”It added that CBDCs would complement cash and could act like liquid, safe settlement assets in addition to anchoring existing payments systems. Digital currencies must be energy efficient and fully interoperable on a cross-border basis, the statement added.Leaders from the G7 nations confirmed that they had a shared responsibility to minimize “harmful spillovers to the international monetary and financial system.”CBDC issuance should be “grounded in long-standing public commitments to transparency, rule of law, and sound economic governance,” the statement continued. A G7 nation has yet to issue a CBDC but several such as the United Kingdom are actively researching the technology and economic impacts.Related: Cointelegraph predictions for the first 5 CBDCs of 2021–2022Echoing a similar statement made by the larger G20, they reiterated that no global stablecoin project should begin operation until it addresses legal, regulatory, and oversight requirements. The comments may be in reference to Facebook’s planned Diem cryptocurrency which has raised red flags for financial leaders and central bankers. The U.S. has been dragging its feet with CBDC plans and the Federal Reserve remains highly skeptical about digital dollars. As reported by Cointelegraph in September, America is in danger of being left behind technologically and financially if it doesn’t start seriously considering its own CBDC.China is already way ahead of the pack with its digital yuan, and its latest crackdown on crypto is likely to be part of its grand plans to further promote and control central bank monetary flows.

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