Čvn 08

Top 3 Cryptos, Not Named Bitcoin, Making Waves in June

As bitcoin price continues to hover around $8,000, some cryptocurrencies, namely Litecoin, LEO, and Binance Coin, have somewhat managed to steal the spotlight in recent days and are probably worth keeping an eye on in the short to medium term. 


Top 3 Cryptocurrencies: Litecoin (LTC)

Litecoin 00 managed to outperform all top 10 cryptocurrencies by means of market capitalization in the past 24 hours. Its price touched $120 which was an increase of around 12 percent.

However, Litecoin has since re-traced and is trading at around $115 at the time of this writing. Still, that’s about 5 percent increase on the day.

Litecoin’s performance throughout 2019 has been nothing but impressive so far. Since January 1st, LTC has gained around 300 percent.

More interestingly, the recent surge comes about 58 days prior to Litecoin’s halving event. It will cut the block reward from 25 to 12.5 coins per block, which could, in theory, catalyze a further increase in the cryptocurrency’s price.

LEO

LEO is relatively new on the market. It was issued through a private sale conducted by one of the popular cryptocurrency exchanges, Bitfinex. The event sold a total of $1 billion worth of LEO at the price of 1 USDT each.

At the time of this writing, LEO is trading at around $1.70, which is an increase of about 70 percent since its private sale. The cryptocurrency currently sits at a market cap of around $1.7 billion.

On the daily chart, LEO marks an increase of around 3 percent. According to LEO’s White Paper, iFinex will be doing regular repurchases and burns of the token on a monthly basis.

The company and its affiliates will buy back LEO tokens from the market equal to at least 27 percent of its gross revenues. The reducing supply, given the demand for the cryptocurrency remains the same, could also, in theory, keep its price moving higher.

Binance Coin (BNB)

This probably doesn’t come much as a surprise, but Binance Coin 00 continues to be on the watchlist of best-performing altcoins over the past year.

BNB has marked a slight increase of around 3 percent on the day. However, looking at the bigger picture, the cryptocurrency has surged more than 400 percent year-to-date.

Don’t be surprised if its increasing utility, particularly in Initial Exchange Offerings (IEOs), as well as the regular coin burns that reduce supply on the market, push its price to new all-time highs by the end of this year.

What do you think of these three altcoins and their performance so far? Don’t hesitate to let us know in the comments below!


Images courtesy of Shutterstock, TradingView

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Čvn 03

Will Bitcoin Price Finally Reach $10,000 This Week?

Bitcoin price saw a 3% move to $8,833 is bringing the digital asset closer to a retest of the weekly high. Will it happen before this new week starts?


 Bitcoin Price Must Overcome This Key Hurdle for $10K

Sentiment wise, bitcoin’s path to $10,000 remains strong and each week a number of positive media reports appear to be re-enforcing the bullish consensus for the top digital asset.

The growing premium on Grayscale Bitcoin Investment Trust (GBTC) and impressive data from CME Bitcoin futures show that there is a continuous rise in institutional demand for Bitcoin. In an email to clients, CME Group explained that:

“May is shaping up to be the strongest month ever for CME Bitcoin Futures.” And the exchange commented that “The number of unique accounts continues to grow, showing that the marketplace is increasingly using BTC futures to hedge Bitcoin risk and/or access exposure.”

cme bitcoin futures

Over the weekend Bitcoin consolidated in the $8,450 – $8,600 range for the majority of Saturday, then on Sunday the digital asset popped above the $8,530 support for a 3% move toward the $8,840 resistance before pulling back to $8,650.

The short profit taking was nothing like the 12% rejection at $9,081 that occurred last week and traders can take comfort in knowing that BTC remains in an uptrend. But it should be noted that the daily chart shows the digital asset trading within a rising wedge, which can be interpreted as a bearish signal.

Popular crypto-analyst Josh Rager tweeted that Bitcoin’s move above $8,530 and $8,731 shows the uptrend remains intact and Rager forecast that if BTC moves above $8,846 then a move to the “mid $9k’s” is on the cards.

A number of analysts are now suggesting that $8,200 represents a crucial support level and a dip below this point could see bitcoin revisit $7,000.

Recently Alex Kruger also shared his analysis of key support and resistance levels for BTC/USD 00 and similar to other forecasts, bitcoin has few immediate resistance points above $10,000.

Looking Forward

Over the short-term, Bitcoin appears to have shifted to a new range of $8,600 – $8,800 and it could spend the remainder of Sunday consolidating within this zone.

The 4-hour MACD remains bullish and the RSI has turned down from 60 and currently at 53. Traders should keep an eye on the hourly RSI is oversold bounces near 42.5 have proven to be quite reliable.

Do you think Bitcoin price will reach $10k this week? Share your thoughts in the comments below! 


Images via TradingView.com, Twitter, Shutterstock

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Čvn 01

This IEO Crypto Token is Up 800% After Binance DEX Launch

Crypto figures were urging caution June 1 after the first token to trade on both Binance and Binance DEX saw suspiciously high trade volume.


Harmony Outperforms BNB Crypto Token

Harmony (ONE), which constitutes Binance’s latest initial exchange offering (IEO), saw over $600 million in volume in the 24 hours to press time, according to data from CoinMarketCap.

The token is the first to debut on both Binance’s regular platform and its newly-launched decentralized exchange, Binance DEX.

Executives had generated considerable buzz around the move through a concerted publicity campaign prior to the launch, which included a giveaway to promote ONE among prospective investors.

Analyzing the trade figures, however, veteran crypto social media voices appeared less than impressed.

“It’s up by 800%+ from (the) IEO. Wouldn’t recommend chasing this,” the Twitter account known as Squeeze summarized, noting ONE/USD trading at $0.025.

“I’ve been eyeing this for a while. This has very huge hype. But not gonna buy at this price. Will wait for dips in the coming weeks. If it moons hard, I don’t mind missing this. Plenty of other choices.”

Binance DEX Whirlwind

Harmony was little known before its Binance hook-up, with the launch of the DEX having already sparked major excitement among traders.

As CoinMarketCap confirms, Binance’s decentralized platform saw larger volumes in five hours than its biggest competitor, IDEX, achieved in 24.

“By tomorrow it will have done more volume than all DEX’s combined,” trader and journalist Dan Clarke forecast Saturday.

As Bitcoinist reported, Binance itself has seen a broad turnaround in its recent fortunes since recovering from a $41 million hack at the start of May.

Following a week of downtime, full functionality resumed May 15, with the platform’s in-house token, Binance Coin 00, forming the basis of a separate giveaway to reward users who stayed loyal during the platform’s difficulties.

BNB subsequently outperformed, reaching new all-time highs against the US dollar this week as it passed $35 for the first time.

The token, which can also be used against discounted trading fees on Binance, is now the seventh-largest cryptocurrency by market cap. 24-hour volume at press time was $560 million – still just short of ONE.

Separately, the exchange’s own research this week announced a changing trend in the crypto industry more broadly. After over a year of low appeal, non-crypto lay consumers were finally beginning to pay attention to Bitcoin 00 and altcoins again.

In addition, institutional investor interest was developing much more quickly, analysts said, a phenomenon which itself was contributing to the base of new Binance traders.

What do you think about Binance DEX and Harmony? Let us know in the comments below!


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Kvě 24

Weiss Ratings: Bitcoin Correction The Best Buying Opportunity Since 2015

Weiss Ratings believes that bitcoin price surging to $8,373 will open the doors to a once in a lifetime purchasing opportunity.


Weiss Says Buy the Dip

On Thursday Weiss Ratings tweeted that Bitcoin’s current technical setup presents the best purchasing opportunity for investors since 2015.

The independent rating agency based their assessment on analysis from their chief crypto analyst Juan Villaverde.

The analyst explained that Bitcoin’s recent surge to a 2019 high at $8,373 has primed the market for an impending correction that will represent the greatest purchasing opportunity since 2015.

According to Villaverde, similar price action occurred in 2012 and 2015 and the cryptoanalyst explained that:

In January 2012, for instance, after Bitcoin has rallied to $7 per token from its bottom of $2 just months earlier, Bitcoin suffered a 45% correction down to about $4. But that was a launching pad for a bull run that would take Bitcoin into four-digit territory for the first time in its history, hitting a high of almost $1,200 by December 2013.

Villaverde then pointed to an identical occurrence in 2015 when Bitcoin price notched $500 in November only to be followed by a sharp 40% sell-off to $300 a week later.

Will Bitcoin Pull Off a ‘Three-Peat’?

Naturally, investors will be concerned about whether history will repeat itself and the phrase “past performance is not indicative of future results” comes to mind.

Villaverde addresses this valid concern by pointing out that that Bitcoin’s fundamentals have improved significantly over the past year and the fact that Bitcoin usage is near all-time highs, with daily transaction volumes nearly reaching levels not seen since late 2017 is encouraging.

According to him, Bitcoin’s 24-hour transaction volume recently reached a 2019 high of 450,000 and the previous all-time high occurred on December 13, 2017, just a few days before prices reached $20,000.

Weiss also pointed out that Bitcoin network fees remain at their lowest levels since August 2017 despite the consistent increase in transaction volume. Villaverde explained that there is a negative correlation between usage and fees and this is proof that upgrades like SegWit and the Lightning Network were paramount in making this possible.

Overall Villaverde encouraged investors to focus on the positives and reiterated that: the recent major rally confirmed the beginning of a bull market, Bitcoin’s fundamentals have improved the point of supporting increasing price and he cautioned investors to be attentive of an impending sharp correction, which could provide a fantastic purchasing opportunity.

Do you agree with Weiss Ratings advice to buy the next Bitcoin dip? Share your thoughts in the comments below! 


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Kvě 12

Parabolic Advance Halts For Now – So What’s Next For Bitcoin Price?

Bitcoin went absolutely parabolic over the weekend! After topping out at $7,500, traders are now wondering what is next.


Bitcoin Price: Market Overview

Last week brought an onslaught of bearish news that typically negatively impacts Bitcoin price 00. But surprisingly, it shrugged at the news and has gone bananas as its dominance rate rose to highs not seen since 2017.

At the moment, nearly every analyst is screaming “bull market” and making calls for what they believe the new all-time high will be.

Friday and Saturday’s amazing run firmly brought Bitcoin above $6,000 to the previous resistance zone where $6,800 and $7,300 held before the November 2018 40%+ correction and the icing on the cake was a quick blow off to $7,500. A number of crypto analysts have also pointed out that while Bitcoin has gone parabolic, the parabola has broken as the digital asset has not set a higher high after reaching $7,581?

It should also be noted that Bitcoin’s lightning quick ascension took place with few retracements and a pullback. In other words, consolidation could be imminent.

Bears are also likely closely eyeballing the current price action to establish short positions right at the current top so traders should exercise care and not FOMO into a position or play the upcoming retraces without some sort of stop loss.

The weekly RSI has entered the overbought zone and as other analysts like Dave the Wave have pointed out, the MACD is more extended now that it was during the peak of the 2017 bull run.

BTC-USD Daily Chart

The daily chart shows that the RSI crossed 85.3779, which is the point that traditionally marked a trend change in BTC price. BTC/USD first topped a$7,489 at this threshold was crossed and then ran a little further to $7,581 before cooling off and entering what is likely to be a period of consolidation.

Going into the weekly close, BTC looks set to close above the $6,300 if not the $7,300, which most traders believed would pose significant resistance. According to the daily and weekly chart, $8,165, $8,200 and $8,500 are the next levels which could pose resistance for BTC to overcome.

The general consensus is that after such an amazing run BTC needs to either consolidate and regain strength or retrace to previous supports as the RSI, MACD, and Stoch are becoming overextended on the daily timeframe.

BTC-USD 4-Hour Chart

Traders looking to catch the dip might set alarms at $5,900, $5,500, and $5,100 in order to play oversold bounces and following bull crosses on the hourly, 4hr, daily and weekly MACD seems to be the best method for putting traders into profit.

At the time of writing the 4-hr chart shows the MACD nearing a bearish cross and the RSI remains in bullish territory.

BTC has pulled back to nearly rest on the 20 MA of the Bollinger band indicator at $6,660. A drop below the 61.8% Fib retracement level ($6,586) is where things could get interesting.

Traders should also keep an eye on the BTC-USD Longs to Short ratio and BTC-USD shorts in general as bears are likely to set up positions at the recent top and additional rejection points like $7,000.

Happy trades friends!

Where do you think Bitcoin will go over the next 48-hours?

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by Bitfinex. The charts for the analysis are provided by TradingView.]

Trade Bitcoin, Litecoin and other cryptocurrencies on online Bitcoin forex broker platform evolve.markets.  


Images courtesy of Shutterstock, Trading View. Market data sourced from Coinbase.fkff

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Kvě 12

‘Facebook Coin’ Will Be More Like Bitcoin Than Starbucks Rewards, Says Analyst

Speculations about the purpose of Facebook’s planned digital coin are getting wilder. Ignoring key features like independence and decentralization, one analyst predicts that ‘Facebook Coin’ would look more like Bitcoin or Ethereum than your Starbucks reward points.


Facebook Coin Might Encourage Viewing Ads

With growing interest, many are trying to envision Facebook’s planned ‘FaceCoin.’ Lacking specifics from Facebook, speculations abound about everything from the coin’s name to what it will be used for.

Under the code name “Project Libra,” tech journalists say, Facebook, Telegram, and Signal are devising their own digital token, which would allow their billions of users to exchange money across the Internet, through their payment systems.

Others argue that Facebook’s coin will be more like one of the major cryptocurrencies. In effect, one analyst, Lisa Ellis, a MoffettNathanson partner, predicts:

The Facebook (FB) coin (Facecoin, perhaps?) would actually look more like one of the large public cryptocurrencies such as Bitcoin or Ethereum and less like the internal-payment or loyalty systems that companies like Starbucks(SBUX) use.

She adds that FBCoin will likely be a more-public coin that’s governed by an independent board such as Ethereum and its foundation.

Except That It Won’t…

But regardless of the type and number of predictions put forward, one thing is sure. Facebook’s digital coin won’t be anything like Bitcoin.

It will be issued, developed and controlled by a centralized authority. Its ledger will not be immutable, and access will likely require your Facebook account.

The social media giant has not explicitly denied or acknowledged any of these speculations too. The latest statement on the subject from the company was issued to Barron’s on May 10, 2019,

[Facebook is] exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications. We don’t have anything further to share.

Visa, Mastercard Would Welcome a ‘FaceCoin’

But while Ellis didn’t mention any specifics, Ellis believes Facebook’s coin probably will end up being a tool to encourage users to watch ads.

This is something Brave has been attempting with its browser and native BAT token though some haven’t been impressed and are working on a more bitcoin-friendly version.

Meanwhile, Ellis had also earlier warned clients that cryptocurrencies could pose an existential threat to Visa, Mastercard, and Paypal. In contrast, she argues that Facebook’s coin would actually benefit these payment giants. Ellis wrote,

If Facebook(FB) launches an open digital wallet and checkout button, the company will need to collaborate with Visa and Mastercard(MA) to enable a variety of card-based funding methods in its wallet (similar to Apple Pay, PayPal(PYPL), or Google Pay).

So how will it be like Bitcoin again?

Will Facebook’s digital currency be anything like Bitcoin? Let us know in the comments below!


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Led 29

Iran May Unveil State-Backed Cryptocurrency This Week

Iran is reportedly expected to announce its state-backed digital currency at the annual Electronic Banking and Payment Systems Conference which starts on January 29th. The move is an attempt to bypass US-imposed economic sanctions. 


Iran-Backed Cryptocurrency

Iran first announced its intentions to launch a state-backed digital currency in the summer of 2018.

The move was occasioned by the fact that the country was set to undergo renewed economic sanctions from the US.

Since then. the country was also kicked out of the Society for Interbank Financial Telecommunication (SWIFT), which has highlighted the need for an alternative way of moving money even more.

According to a new report by Al Jazeera, the country may be announcing the state-backed cryptocurrency on January 29 at the annual Electronic Banking and Payment Systems conference, which this year has a  “blockchain revolution” theme.

The cryptocurrency is expected to roll out in two different phases. The first phase will reportedly involve the issuance of a rial-backed digital token, which shall facilitate payments between local banks and other actively participating institutions.

The other phase will include the launch if an instrument that will enable retail use, i.e. currency.

Alternative to SWIFT?

While it’s currently unclear whether ‘IranCoin’ will be used to facilitate payments between Iran and other countries, it could be positioned by the Iran government as an alternative to SWIFT as Bitcoinist reported last year that Iran and Russia may use cryptocurrencies to bypass US sanctions.

It also wouldn’t be the first time countries are cooperating on creating a joint cryptocurrency. Recently, the UAE and Saudi Arabia announced a joint effort in this regard.

However, it’s questionable whether a state-backed cryptocurrency will provide regular Iranians with access to the global monetary system.

Additionally, the report notes that because ‘IranCoin’ will be nothing like Bitcoin and entirely centralized, it will likely fall short of circumventing any sanctions. This is because the US will guarantee it has no place in any credible international exchange just like the rial.

Speaking on the matter, blockchain and cryptocurrency developer, Yashar Rashedi explained:

They certainly can’t replace the likes of bitcoin due to their centralized nature, but their existence is harmless. […] Even as CBCCs may never find widespread everyday use among the general public, they may be able to offer some new features to startups and developers that had to work with centralized bank APIs before them.

Do you think a state-backed cryptocurrency will help Iran combat US-imposed sanctions? Don’t hesitate to let us know in the comments below!


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Led 10

Nick Szabo: Central Banks Might Switch From ‘Physically Vulnerable’ Gold to Bitcoin

Central Banks might resort to cryptocurrency reserves as means of supplementing national gold reserves according to veteran cryptographer Nick Szabo. He also holds that the use of digital currencies will rise in countries with distraught economies. 


Cryptocurrency Over Gold

Speaking at the Israel Bitcoin Summit at Tel Aviv University on January 8th, legendary cryptographer, Nick Szabo, said that national central banks might resort to cryptocurrency reserves as means of supplementing existing national gold reserves.

One of the reasons for this to happen, according to Szabo, is the potential lack of trust between foreign banks or governments:

There’s going to be some situations where a central bank can’t trust a foreign central bank or government with their bonds for example. […] One solution that’s been developed is to have the Swiss government hold it for you – that’s not a trust minimized solution. The Swiss government itself is subject to political pressures and so a more trust minimized solution is cryptocurrency.

In addition, Szabo also notes that gold reserves are “physically vulnerable,” saying:

The other problem with gold reserves is that they’re physically vulnerable. When the Nazis conquered countries in Europe, the first place they went to was a central bank’s gold reserves.

Bitcoinist reported on the uncanny resemblance in the historical performance of gold and Bitcoin in the past. Unlike gold, however, Bitcoin “has more utility” admitted US economist and Bitcoin-critic Paul Krugman.

The Winklevoss twins also recently stated that “Bitcoin is better at being gold than gold,” predicting that it should surpass the precious metal’s $7 trillion dollar market cap in the future.

Helping Distraught Economies

Another thing the Bitcoin pioneer shared was that censorship-resistant cryptocurrencies will grow in popularity in countries, which suffer from failed monetary planning, as well as those which have been blacklisted from trade.

There seems to be substantial merit to his thoughts. Venezuela, for example, is a country which is currently being torn by hyperinflation. In fact, the Director of the Western Hemisphere Department of the International Monetary Fund, Alejandro Werner, said that 10 million percent inflation rate is not out of the picture:

Yes, 10 million percent because prices in Venezuela are doubling or tripling every month. And that, when you take it to 12 months, generates an exponential inflation rate.

As Bitcoinist reported in late December, the country saw its biggest jump in bitcoin volume on LocalBitcoins.

What is more, a Russian university lecturer with ties to the government, Vladislav Ginko, has recently revealed that the country is planning to invest in Bitcoin as a means of avoiding US sanctions.

Whether this is true remains to be seen, but US sanctions indeed have little effect on a neutral global digital currency like Bitcoin

“Because of US sanctions, Russia’s elite is forced to dump US assets and US dollars and invest hugely into Bitcoins. The central bank of Russia sits on $466 billion of reserves and has to diversify in case there are limited opportunities to do it (in the future),” Ginko said.

What do you think of Nick Szabo’s statements? Don’t hesitate to let us know in the comments below!


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Led 09

‘It’s Quite Cryptic’: Normal People Explaining Bitcoin Shows It’s Still Very Early

This video by Naomi Brockwell of ‘normies’ explaining Bitcoin reminds us there’s still a long way to go taking cryptocurrencies to the masses.


Let’s be honest. Between wild price swings, sensational hash wars, Ethereum forks, 51% attacks, and bearish regulators, it’s easy to get caught up in the crypto space. And it’s equally easy to forget that there’s a whole other world out there that’s blissfully unaware.

Brockwell is a TV producer, MC, and host of NBTV blockchain/tech show. She’s been making videos about Bitcoin since 2013 and was a policy associate at the New York Bitcoin Center from 2013 to 2015.

In the following video posted on her YouTube channel, she admits that she didn’t realize how little people outside of crypto knew about Bitcoin until now:

During the trip so far I have discovered that no one outside the crypto world knows anything about Bitcoin.

Here are some of the main takeaways:

There’s a Lot of Confusion About Bitcoin

Most people have heard of Bitcoin. But despite its price hovering around $4,000, that still doesn’t mean they know what it is. There’s still plenty of confusion generated upon hearing the word. “You can put any word in front of “coin” and you’ll get bitcoin,” said one interviewee.

He knew that it was money “on the internet,” but was unsure about how to send it, asking whether you could fax or email it to people. Perhaps his most interesting question of all was:

How do you get more than one bitcoin? Do they stack? Can you have more than one type of bitcoin?

There Are Plenty of Misconceptions

One of the participants in the car knew that Bitcoin is mined. However, he thought that you mined it through hitting blocks on the internet, like a Mario game. In fact, he believed that popular video game Minecraft was the way in which bitcoin was mined.

Another interviewee said “Bitcoin is like an IOU with no legitimate promise to be fulfilled,” and that the coin’s appearance was very Mario-esque; “there’s even a David Hasselhoff coin with a picture of his head on it!” he exclaimed… “These are all types of bitcoin.”

His answers began to sound almost plausible to the other passengers until he blew his cover revealing that he actually knew nothing about what he was saying with the words:

It is a cryptic currency meaning that currently, it’s quite cryptic.

When everyone began to shake their heads, he said that no one knew anything about Bitcoin:

It’s like a puzzle which has no answer inside.

All these responses lead Brockwell to conclude:

It is very clear that most people in the world are incredibly confused about Bitcoin and what it is and what cryptocurrency is.

However, People Want to Learn More

That there’s confusion among the mainstream should come as no surprise. Many people in the actual space are still grappling with their own learning curves. The media has played a helpful role in getting the word about Bitcoin and crypto out there.

However, it has also served to add to the confusion with incorrect facts and unclear statements, images of bitcoin as an actual coin, rather than a string of numbers and letters. 

But the encouraging takeaway from the video is that people want to learn more. When Brockwell asked, “what’s your interest level in Bitcoin?” one of the respondents replied that it was a 7. 

I feel like if someone taught me about Bitcoin I’d be really interested… But when I google Bitcoin I never get any answers.

Another added:

I’m really curious now, I’d like to know more about Bitcoin.

It’s pretty clear that there’s a lot of work to be done explaining Bitcoin to the masses. Although, we can also take some encouragement from the fact that Bitcoin has gotten so far without most of the world knowing what it is.

Perhaps while the community works on scaling solutions, technology upgrades, and security, Bitcoin educators should also work on tightening the narrative. 

What’s the best way to get started with Bitcoin? Share your thoughts below!


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Led 08

BIS Reports 70% of Central Banks Are Studying Cryptocurrencies

A new report published by the Bank of International Settlements (BIS) shows that the majority of central banks are studying central bank digital currencies (CBDC). However, most of them are unlikely to issue any type of digital currency in the near future. 


CBDC ‘Unlikely’ in The Short Term

BIS published the results of a new survey on central banks studying the technology behind Bitcoin and cryptocurrencies. A total of 63 banks have responded. They represent jurisdictions, which cover about 80 percent of the population of the world and more than 90 percent of its entire economic output.

The intention of the survey was to find out whether central banks currently are developing their own central bank digital currencies (CBDC) and how likely they are to issue them.

Of the 63 banks, 70 percent said that they are either currently working or will soon be engaged in work on CBDC.

However, this includes conducting conceptual research on the matter, sharing studies and views of developing a “common understanding of this new field of study.” According to the report, half of the respondents have moved to a more “hands-on” proof-of-concept activities in order to test new technologies.

The report reveals that 85 percent of the central banks are unlikely or very unlikely to issue any type of CBDC in the short term (1-3 years).

Back and Forth

In September, Bitcoinist reported that the European Central Bank (ECB) has no intentions of issuing a central bank digital currency.

ECB

It’s also arguable whether a central bank issued digital currency will even fit the mold of decentralized cryptocurrencies. In December, a couple of researches at the St. Louis Fed, outlined that:

Once you add a central bank and remove the “permissionless” network—with nodes that can leave and join as they wish, there isn’t much left to the cryptocurrency you started with.

Nevertheless, some central banks remain open to the idea of CBDC. The BIS report outlines that the Central Bank of Uruguay has completed a pilot programme on a general purpose CBDC.

At the same time, the governor of UK’s central bank Mark Carney has previously said that the Bank of England is open to the idea of a central bank issued digital currency.

What do you think of CBDCs? Don’t hesitate to let us know in the comments below!


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