On Wednesday, Nov. 30, 2022, a weblog put up revealed by the European Central Financial institution (ECB) discusses bitcoin and the authors Ulrich Bindseil and Jürgen Schaaf appear to imagine its “bitcoin’s final stand.” The ECB authors additional say that whereas bitcoin’s value has consolidated and stabilized, the central financial institution officers remarked that “it’s an artificially induced final gasp earlier than the highway to irrelevance.”
Two members of Europe’s central financial institution, Ulrich Bindseil, the director basic of the ECB’s market infrastructure and funds division, and Jürgen Schaaf, an advisor to the ECB’s funds sector, revealed a weblog put up in regards to the main crypto asset bitcoin (BTC).
The ECB weblog put up is named “Bitcoin’s Final Stand,” and the writers declare the crypto asset is changing into irrelevant. Bindseil and Schaaf clarify that BTC’s value has dropped 76% decrease than the $69K all-time excessive, and the authors have observed bitcoin proponents suppose BTC is taking a “breather on the way in which to new heights.”
The ECB authors don’t imagine this would be the case this time round. “Extra doubtless, nevertheless, it’s an artificially induced final gasp earlier than the highway to irrelevance,” the ECB weblog put up’s authors insist. “And this was already foreseeable earlier than FTX went bust and despatched the bitcoin value to effectively under USD16,000.”
The members of the European Central Financial institution additional opine that “bitcoin has by no means been used to any vital extent for authorized real-world transactions.” The ECB’s weblog put up provides:
Bitcoin can be not appropriate as an funding. It doesn’t generate money stream (like actual property) or dividends (like equities), can’t be used productively (like commodities) or present social advantages (like gold). The market valuation of Bitcoin is due to this fact based mostly purely on hypothesis.
The authors don’t essentially use the phrases, however Bindseil and Schaaf relate bitcoin to a Ponzi or pyramid scheme, because the authors stress that “speculative bubbles depend on new cash flowing in.”
“Huge Bitcoin buyers have the strongest incentives to maintain the euphoria going,” the weblog put up’s writers insist. Whereas regulatory coverage has grown round cryptocurrency property, the 2 ECB officers imagine that “regulation might be misunderstood as approval.” Bindseil and Schaaf are usually not too eager on the concept that the crypto area must be allowed to innovate “in any respect prices.”
Bitcoin’s progressive worth, the ECB authors say has been little or no in comparison with the dangers that allegedly outweigh innovation. The ECB paper states:
Firstly, these applied sciences have thus far created restricted worth for society – regardless of how nice the expectations for the long run. Secondly, the usage of a promising know-how is just not a enough situation for an added worth of a product based mostly on it.
Lastly, the central financial institution executives suppose that banks that promote bitcoin will bear reputational threat. The ECB members say that as a result of they imagine bitcoin is just not an acceptable funding nor a cost system, “it must be handled as neither in regulatory phrases and thus shouldn’t be legitimised.”
Bindseil’s and Schaaf’s weblog put up is similar to the opinions held by individuals like Peter Schiff, Charlie Munger, and the tons of of so-called bitcoin obituaries revealed through the years. Regardless of the ECB opinion put up, there are numerous people, educational papers, and corporations that wholeheartedly disagree with the 2 central financial institution executives.
The worldwide blockchain chief at EY, Paul Brody, not too long ago mentioned that this crypto winter is a “a lot milder crypto winter than the final one.” Brody additionally mentioned that crypto value fluctuations are impacting the trade’s progress loads much less lately. “For the primary time ever, value ups and downs don’t have that large of an impression on the long-term progress of the trade,” Brody opined.
Moreover, a paper revealed by Matthew Ferranti, a Harvard Ph.D. candidate in economics, says that banks ought to maintain just a little bitcoin. Ferranti mentioned that even central banks ought to take into account holding bitcoin, and extra particularly, central banks fighting monetary sanctions relying on the monetary establishment’s accessibility to gold reserves.
What do you concentrate on the ECB’s weblog put up about Bitcoin’s so-called ‘final stand?’ Do you agree with the officers from Europe’s central financial institution? Tell us your ideas about this topic within the feedback part under.
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BNY Mellon, the oldest and largest custodian bank in the United States, has officially announced its venture into Bitcoin (BTC) through investments in ETFs. The firm disclosed in a recent SEC filing its investments in BTC ETFs managed by BlackRock and Grayscale.
The SEC’s historic approval of 11 spot Bitcoin ETFs in January 2024 has reshaped the investment landscape for cryptocurrencies in America. The introduction of these ETFs brought a surge of enthusiasm, pushing Bitcoin to an all-time high of $73,737 in March. BNY Mellon’s involvement is a testament to the growing institutional interest in cryptocurrencies, a trend boosted by these new investment tools.
Moreover, the approval of Bitcoin ETFs in the U.S. has had a domino effect on global markets. Notably, Hong Kong has followed suit, approving its own Bitcoin and Ethereum spot ETFs, set to begin trading on April 30, 2024. This expansion in global financial hubs signifies a broader acceptance and integration of cryptocurrencies into mainstream financial systems.
Market Predictions
Market analysts predict a strong upward trajectory for Bitcoin, with forecasts suggesting a possible climb to $85,195 by late May 2024. This optimism is grounded in the increasing accessibility and investment flexibility provided by ETFs, making Bitcoin more appealing to both seasoned and new investors.
Furthermore, the potential approval of a spot Ethereum ETF in the U.S. could catalyze another significant rally, particularly as Ethereum currently trails its previous highs. The introduction of such a fund could invigorate the market, possibly driving Ethereum to recover and even surpass its former peak prices.
BNY Mellon’s investment in Bitcoin ETFs is a clear indicator of the evolving landscape of financial investments, with major institutions now looking to digital assets as viable investment vehicles. As the landscape continues to evolve, the financial community watches closely, anticipating the next milestones in this digital finance revolution.
Also Read: ARK Dumps ProShares Bitcoin ETF Shares in Massive Sell-Off
The FBI in a Thursday warning emphasized the financial risks associated with using unregistered cryptocurrency transfer services, especially considering potential law enforcement actions against these platforms.
The focus of this public service announcement is on crypto transfer platforms that operate without proper registration as Money Services Businesses (MSB) and fail to comply with anti-money laundering regulations mandated by the U.S. federal law.
Such platforms are frequent targets of law enforcement operations, particularly when criminals exploit them for transferring or laundering unlawfully acquired funds, like in the case of ransomware payments.
FBI’s PSA, released on its Internet Crime Complaint Center, cautioned Americans that,
Using a service that does not comply with its legal obligations may put you at risk of losing access to funds after law enforcement operations target those businesses.
The FBI said it had recently conducted law enforcement operations against unregistered cryptocurrency transfer services “that purposely break the law or knowingly facilitate illegal transactions.” It added that these services will continue to be investigated by law enforcement.
For individuals considering the use of cryptocurrency transfer services, “a few simple steps can prevent unintentional use of non-compliant services,” the FBI said. The agency advised the following security tips:
The FBI’s warning comes in the wake of the recent crackdown on Samourai, an illicit cryptocurrency transfer platform that offered a crypto mixer service facilitating the laundering of funds obtained through criminal activities.
The Icelandic law enforcement authorities seized Samourai’s domains (samourai[.]io and samouraiwallet[.]com) and web servers. The Google Play Store also removed the Samourai Wallet Android mobile app that was downloaded over 100,000 times, before the seizure was initiated.
The U.S. Department of Justice charged Keonne Rodriguez and William Lonergan Hill, the platform’s founders and operators, with laundering over $100 million from various criminal enterprises through Samourai’s crypto mixing services, accruing approximately $4.5 million in fees.
According to the superseding indictment, “Since the start of the Whirlpool service in or about 2019 and of the Ricochet service in or about 2017, over 80,000 BTC (worth over $2 billion applying the BTC-USD conversion rates at the time of each transaction) has passed through these two services operated by Samourai.”
The DOJ stated, “While offering Samourai as a ‘privacy‘ service, the defendants knew that it was a haven for criminals to engage in large-scale money laundering and sanctions evasion.
“Indeed, as the defendants intended and well knew, a substantial portion of the funds that Samourai processed were criminal proceeds passed through Samourai for purposes of concealment,” the unsealed indictment said.
Media Disclaimer: This report is based on internal and external research obtained through various means. The information provided is for reference purposes only, and users bear full responsibility for their reliance on it. The Cyber Express assumes no liability for the accuracy or consequences of using this information.
In a stunning financial shift, the Japanese yen has reached a 34-year low against Bitcoin, which also hit all-time highs in 14 countries, fueled by optimism surrounding new spot Bitcoin ETFs.
Yen Hits 34-Year Low as Bitcoin Ascends, Spotlighting Global Shift Towards Cryptocurrency
According to Crypto.News, the Japanese yen plunged to a 34-year low as officials sought to contain the economy’s hyperinflation. According to Bloomberg, Japan’s sovereign fiat money suffers mostly from the disparity between local interest rates and those in the United States Federal Reserve rates.
While the Japanese government works through this problem, Bitcoin (BTC) has surpassed the yen in direct monetary worth. On April 25, Google Finance revealed that one Japanese yen equaled 0 Bitcoin.
In February, BTC soared against various fiat currencies, reaching all-time highs in 14 nations. The industry was propelled by optimism about the newly approved spot Bitcoin ETFs.
Following the revelation, many people on social media praised Bitcoin as “sound money” and an innovation capable of cultivating financial independence from the global traditional economic bubble.
Users reaffirmed what BTC maxi Michael Saylor calls “Bitcoin’s superior design,” referencing Satoshi Nakamoto’s protocol, which ensured that only 21 million BTC would exist.
It is impossible to surpass this limit because it is hard-coded into the Bitcoin blockchain. A halving controls inflation by lowering the number of new tokens in circulation. The halving occurred last week, with Bitwise CIO Mat Hougan opining that the event would largely benefit BTC’s market value in the long term.
Bitcoin Reaches New Heights in 14 Countries Amidst Currency Volatility and Economic Shifts
In a February report, Bitcoin has set an all-time high in 14 countries, including Turkey, Argentina, Egypt, Pakistan, Nigeria, Japan, and Lebanon, despite selling 25% down from its top of $69,000.
The contradictory position highlights the considerable devaluation of these countries’ currencies versus the United States dollar (USD) over the last two years. The global financial market has been extremely unpredictable in recent years, as cryptocurrencies such as Bitcoin have grown in many countries as a hedge against economic uncertainty.
For example, the Lira has devalued dramatically in Turkey, with the USD/TRY exchange rate rising from roughly 7.80 in November 2021 to 31.02. Similarly, the Argentine peso has fallen dramatically, from around 98 to more than 838 versus the US dollar in the same period.
The developments reflect these countries’ greater economic issues and inflationary pressures, contributing to Bitcoin’s growing popularity as an alternative investment and store of value.
Even in Japan, famed for its strong economy, the yen has devalued from roughly 104 to 150 versus the US dollar, indicating a loss of purchasing power.
Since Bitcoin’s birth, the USD has fallen six orders of magnitude versus BTC, showing cryptocurrency’s meteoric rise in the global financial scene. Once considered a digital curiosity, Bitcoin has evolved into a vital asset for investors seeking refuge from currency depreciation and economic uncertainty.
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