BoE Governor: cryptocurrencies of today are destined to fail long term

BoE Governor: cryptocurrencies of today are destined to fail long term

Bank of England Governor Andrew Bailey thinks it is unlikely that the current generation of crypto assets lack the design and structure needed to ensure long term regulatory survival. Speaking during the World Economic Forum’s Jan. 25 online panel “Resetting Digital Currencies” Bailey responded to a question on whether cryptocurrencies are here to stay for Ripple Price Prediction: XRP is on the edge of a massive fall below $0.20 Over the past two months, XRP’s total market capitalization has Right now, the most important underpinning facing cryptocurrencies is the outcome of the SEC vs Ripple court case.

January 26, 20210 Comments

Bank of England Governor Andrew Bailey thinks it is unlikely that the current generation of crypto assets lack the design and structure needed to ensure long term regulatory survival.

Speaking during the World Economic Forum’s Jan. 25 online panel “Resetting Digital Currencies” Bailey responded to a question on whether cryptocurrencies are here to stay for the long term with skepticism:

“Are crypto-currencies here to stay? Digital innovation in payments – yes. Have we landed on what I would call the design, governance and arrangements for a lasting digital currency? No, I don’t think we’re there yet […] I don’t think cryptocurrencies as originally formulated are it.

Bailey indicated the levels of transactional privacy afforded by crypto assets is a source of concern among regulators, asserting the establishment “a privacy standard for transactions” is in the public interest.

“The whole question of a privacy standard for transactions made in any form of digital currency, and where the public interest lies […] this is a big one that is coming on to the landscape,” he said.

Bailey also extended his concerns regarding privacy to stablecoins, stating:

“The whole question of people having assurance that their payments will be made in something with stable value […] ultimately links back to what we call fiat currency, which has a link to the state.”

However, not everyone at the BoE is alarmed by cryptocurrencies. In November, Andy Haldane, BoE chief economist and a sitting member of the Monetary Policy Committee, stated that crypto assets may be a key component of a ‘new monetary order’.

The Bank of England is among many central banks researching the development of its own fiat-backed digital currency, alongside the European Central Bank and more recently the Reserve Bank of India

Source: cryptolatest.d-hour.com

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Cryptocurrencies Price Prediction: Ripple, Chainlink & Vechain – American Wrap 26 January

Cryptocurrencies Price Prediction: Ripple, Chainlink & Vechain – American Wrap 26 January

Over the past two months, XRP’s total market capitalization has fallen from a high of $32 billion on November 24, 2020, to only $12 billion currently. The biggest reason for this drop was the SEC suing Ripple for the sales of unregistered securities. XRP is close to losing its fifth position in market capitalization ranking to Cardano.

Chainlink has been one of the best performing coins in 2020 and is trying to do the same in 2021. The digital asset has reached a market capitalization of $10 billion positioning itself rank seven. 

Vechain has been trading inside a rising wedge since January 7. The digital asset saw a 100% price increase since the beginning of 2021 peaking at $0.035. However, bears have taken control of the short-term trend and aim to drive Vechain price towards $0.02. 

Source: www.forexcrunch.com

Author: FX Street

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Bitcoin (BTC) Off 5%, Cryptocurrencies In The Red

Bitcoin (BTC) Off 5%, Cryptocurrencies In The Red

Following a strong open to 2021, it has been a challenging few weeks for cryptocurrencies. The past 24-hours have been no different as a majority of the cryptosphere has pulled back upwards of 5%. As we roll into the late-Wall Street session, Bitcoin BTC (-5.04%), Ethereum ETH (-5.69%), Ripple XRP (-2.92%), and Litecoin LTC (-5.90%) are all in the red.

When it comes to trading cryptos, rumor and regulation are the two premier market drivers. Over the past week, these issues have stimulated bearish sentiment throughout the asset class:

  • Ripple Litigation: Fallout from last December’s lawsuit regarding the U.S. Securities and Exchange Commission (SEC) on Ripple persists. The case is due to hit courts in the near future and it will be a precedent-setter. Basically, the SEC is trying to establish cryptocurrencies as securities; a huge step in regulating the entire cryptosphere. Since the litigation began, XRP is off more than 16%.
  • Institutional Participation: Reports are hitting newswires that America’s most prominent universities are acquiring cryptos. According to anonymous sources, Harvard, Yale, Brown, and the University of Michigan are buying cryptocurrencies directly from the U.S. Coinbase exchange. This is an interesting story as it illustrates that cryptos are continuing their march into the financial mainstream.

It’s still early, but it feels like 2021 is going to be a big year for cryptocurrencies ― one way or the other. If the SEC labels XRP a security, then more regulation is likely for the entire asset class. This will be a key story to watch moving forward.

The chart below is a look at January Bitcoin futures as of Monday’s close. BTC remains in bullish territory, holding just above daily downside support.

Overview: The key number for January Bitcoin futures is the 38% Fibonacci retracement at 32,787. If we see a daily close below this level, a further pullback may develop ahead of Friday’s closing bell.

Right now, the important underpinning for cryptocurrencies is the outcome of the SEC vs Ripple litigation. If XRP is deemed a security, get ready for major changes to sweep the cryptosphere as 2021 unfolds.

Source: www.fxleaders.com


BoE Governor: cryptocurrencies of today are destined to fail long term

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