Friday , September 24 2021

Digital currencies: the wind in their sails



It was published :

Bitcoin resumed colors on Monday, July 26. During Asian trading, the coin surged nearly 15% to over $39,500 in less than an hour and a half before losing some of its gains again. Then it took other virtual currencies like Ethereum or Dogecoin.

No information on Monday really explained this meteoric rise in Bitcoin. This new increase will be linked to a number of positive signs posted in the last days.

A website had announced that Amazon would soon accept Bitcoin payments, the information has since been denied by the company even though the company has confirmed its interest in the industry.

Also, last week, B word » At an event organized by American investment fund Ark Invest around Bitcoin, several big bosses reaffirmed their interest in virtual currencies. Among them are Jack Dorsey, the head of Twitter, and Elon Musk, the boss of Tesla. However, the eccentric billionaire is raining and shining on the Bitcoin price. After announcing in May, Tesla will no longer accept Bitcoin payments due to its environmental impactHe said that eventually the brand will come” most probably »Agree again. Tesla’s boss says that Chinese laws ” minors “. Bitcoin generating servers use a lot of energy, and in China some of that electricity comes from coal. These “mines” are becoming less and less concentrated in China. Even before Beijing’s last return, the Middle Kingdom’s market share had already collapsed.

But Elon Musk doesn’t do it all! ” The effervescent bitcoin price this morning was exaggerated with a significant number of downside bets losing. », Explains on Twitter James Bennett of cryptocurrency analysis firm ByteTree.

Clearly, a modest increase has prompted downside-betting investors to liquidate their positions to avoid losing any more money.

Institutional digital currencies

Digital currencies are also arousing the enthusiasm of central banks.

According to the Bank for International Settlements (BIS), sixty jurisdictions are working or already in the testing phase to create their own virtual currency. For now, this cryptocurrency race mostly exists on paper. Only the Bahamas officially has a national digital currency. But others have already made good progress on the project. Such is the case in China. he develops digital yuan : payment method by smartphone. The tests carried out locally over several months were practically completed. For example, Shanghai residents received yuan on their phones to be used in certain businesses. More than $5 billion in transactions have already been completed. Officially, there is no timetable for its deployment, but the e-yuan could make its debut during the Beijing Winter Olympics in 2022.

Other projects have been announced recently by the United Arab Emirates or the European Central Bank. The Frankfurt Institute said it launched a pilot project last week. The digital euro can be stored in accounts that can be opened directly at the Central Bank, currently only banks can do so. But the digital euro is not for tomorrow, and probably not before 2025 or 2026. Especially if France and Germany are in their favour, they want a political agreement and legal changes will be needed. .

Influence

Too much enthusiasm and also too much insecurity. That’s why some institutions embark on an adventure. This is the case of the European Central Bank. The ECB fears that the proliferation of these currencies, whether private or national, will eventually weaken the euro’s influence.

And then private, decentralized cryptocurrencies are appealing to some investors, but authorities much less so, especially since they make it easy to get under the radar. Cryptocurrencies were taken into account in Brussels’ plan to combat money laundering and terrorist financing. The EU wants to ensure traceability of financial transfers in bitcoin.

China has banned cryptocurrencies as they are not regulated by financial institutions and open to speculation. This month, China’s central bank even shut down a software company suspected of involvement in cryptocurrency transactions.

Also to listen: Bitcoin: Is a monetary revolution underway?


Source link