Russian President Vladimir Putin criticized the United States for its abandonment of the gold standard, remarking in a Sputnik-released video that the U.S. dollar is now a trust-based currency without tangible backing, a decision underscored by the absence of gold equivalence. This critique arrives during efforts by BRICS countries to diminish reliance on the U.S. […]
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Warren Buffett Sees No Alternative to US Dollar as Reserve Currency — Berkshire Holding $188 Billion in Cash
Warren Buffett, chairman and CEO of Berkshire Hathaway, asserts that there is currently no viable alternative to the U.S. dollar as the world’s reserve currency, suggesting that U.S. debt will remain acceptable “for a very long time.” Berkshire currently sits on a cash pile of 8 billion, which Buffett views as “quite attractive.” Insights From […]
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As Bitcoin Soars, Peter Schiff Offers Gold as the Prudent Alternative
With bitcoin climbing over 50% in the past month, the notable gold aficionado and economist Peter Schiff has thrown shade at the market’s recent rally. Schiff argues that this uptick in value is nothing but “speculative mania” and advises folks to funnel their risky investments into gold instead. Schiff Warns of Speculative Mania in Bitcoin, […]
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Bloomberg Strategist Sees Bitcoin as Global Alternative Currency — Warns Stock Market Drawdown Could Impact BTC
Bloomberg Intelligence’s senior commodity strategist, Mike McGlone, says bitcoin is “becoming an alternative currency on a global basis,” noting that “The world’s going towards intangible assets and bitcoin is the most significant in cryptos.” However, the strategist warned that as bitcoin’s price approaches ,000, a key test for the cryptocurrency may come “when the U.S. […]
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Bain and Company: Tokenization Can Unlock a $400B Yearly Alternative Investment Opportunity
A report issued in December by Bain and Company and JPMorgan executives recognized the impact that tokenization can have in bringing alternative investments (such as private equity, private credit, real estate, and hedge funds) to individual investors. The document states that this can be a 0 billion opportunity for players in the ecosystem implementing these technologies.
Bain and Company Believes Tokenization of Alternative Investments Can Bring Revenue Opportunities of 0B
Real World Asset (RWA) tokenization technology is starting to be considered a useful tool in financial markets. A report issued in December by JPMorgan and Bain and Company analysts remarks on the significance of tokenization tech for reaching individual investors seeking alternative investments, like private equity, private credit, real estate, and hedge funds.
The report discusses that alternative investments are seldom offered to individual investors due to their sophisticated traits and cumbersome management, traditionally only used to target institutions. However, tokenizing these alternatives can help automate and simplify the management of these investments, benefiting individuals and institutions in a way that current solutions cannot.
According to Bain and Company:
Tokenization and blockchain offer a potential solution to the challenges of fragmented, nonstandardized processes across multiple participants in the alternative value chain.
This would allow the alternative investments ecosystem to grow by 0 billion, adding more value to each part of the chain in different ways. Fund managers would increase their income by increasing their user base, reaching more investors due to this simplification of processes. Wealth managers would also increase their revenue due to their arrangements with fund managers.
Finally, wholesale platforms would increase their assets under management by differentiating from the rest by adapting these technologies to their solutions.
However, these analysts do not believe that tokenization will lead to a retail revolution as it is promised by several actors in the Web3 field. Instead, they predict that the effect of tokenization will allow investment firms to simplify the management of these alternatives for high-net-worth individuals.
What do you think about tokenization and its 0 billion opportunity for alternative investments? Tell us in the comments section below.
Terra Validator Opposes USTC Burning, Pushes Alternative Plan To Regain Dollar Peg
A Terra Classic community member with the X handle Rexyz has kicked against burning USTC tokens to enable the stablecoin to recover its dollar peg.
According to the X post made on September 18, Rexyz outlines an alternative solution that may lead to USTC being re-valued as well as push Terra Classic (LUNC) price to reach the price mark.
Since the collapse of the Terra ecosystem in 2022, the USTC stablecoin has lost its dollar peg and now trades at 98.8% below the mark.
Following this catastrophic event, members of the Terra Class community have continued to submit various proposals to burn more USTC contains as a deflationary mechanism that could result in the stablecoin recovering its dollar peg.
Currently, the Terra Classic community is voting on a proposal that aims to direct the Binance exchange to start burning 50% of USTC every month. It is believed that if the world’s biggest exchange aids in reducing the circulating supply of USTC, it could significantly boost the token’s rise to .
A Reverse Split Is More Efficient Than Buring Tokens, Community Member Says
According to Rexyx, burning USTC tokens may not be the best way of regaining the stablecoin’s dollar peg. The Terra Classic community member explains that there are currently 9.8 billion USTC tokens in circulation, and users will need to burn massive amounts of USTC to record any significant rise in value.
LUNC to reach ?
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Its a long post, but this 'could' rescue #TerraClassic, $LUNC and $USTC at speed.
Why I think burning $USTC is maybe not the best use of your money.
Currently there is nearly 9.8bn $USTC minted, to make a real difference to the price you need to…
— Rexyz (@RexYellerBelly) September 18, 2023
Alternatively, Rexyz proposes that the Terra community implements a reverse split of the USTC token, which leads to a revaluation of the stablecoin, albeit at some investment cost.
In this proposal, Rexyz gives an example, stating that if 100 USTC is the current equivalent of , a 100/1 reverse split would convert 100 USTC to just one USTC token, which will now be valued at . Through this mechanism, USTC holders retain their holdings’ current value, and there is no need to burn more tokens.
However, Rexyz notes that a reverse split would erase all existing network debt. This means that USTC investors will have to forfeit whatever losses incurred during the collapse of the Terra ecosystem.
Could A USTC Reverse Split Rescue The Terra Classic Ecosystem?
Interestingly, Rexyz also stated that the revaluation of the USTC token could initiate a recovery of the Terra Classic network. The community member explained that once USTC regains its dollar peg and the LUNC-USTC swap mechanism is tested with the implementation of improved capital controls, investors can start burning trillions of LUNC.
Related Reading: USTC Surprises With Nearly 60% Rally – What’s Going On?
Rexyx believes this will lead to a massive rise in LUNC’s value, and the altcoin may even record new all-time highs. Rexyz advises the Terra community to implement the reverse split of USTC and “pin” their hopes of recovering past losses by investing in LUNC, which also lost 99.9% of its market value in 2022.
However, the Terra classic community member states this initiative should executed upon research and approval by the relevant experts.
BRICS Discussing Single Unit of Account, Alternative to Dollar, Russian Finance Minister Says
The BRICS members are mulling over the possible launch of a common unit of account, Russia’s Minister of Finance Anton Siluanov unveiled. This would be an alternative to the U.S. dollar that can be used to denote the cost of some commodities, for example, but not a single currency like the euro, the Russian official explained.
BRICS States Focused on Trade in National Currencies, See Potential in Unified Settlement Systems
The BRICS countries (Brazil, Russia, India, China, and South Africa) are discussing the possibility of creating a common unit of account that would serve as an alternative to the U.S. dollar, Minister Siluanov told the Chinese state-run CGTN TV channel during the BRICS summit.
Leaders of the BRICS member states are meeting in Johannesburg on Aug. 22-24, with Russian President Vladimir Putin joining via video link, to discuss the future moves of the group. The prospect of issuing a single currency for the bloc, which unites leading emerging economies, is one of the topics of the talks.
Anton Siluanov pointed out, however, that the main emphasis, when it comes to the development of trade relations, is now placed on settlements in national currencies. “We see the potential to discuss the creation of unified settlement systems,” he said, also quoted by the Tass news agency, and elaborated:
This can be a unit of account for the BRICS member countries. Not a single currency like in the EU but an alternative to the dollar, in which the cost of commodity deliveries can be denoted as well as benchmarks for some goods so as not to depend on the single currency or an issuing center that issues banknotes in a no-one-knows-how manner.
Intensive consultations have been carried out in recent months within BRICS on launching a single currency, according to an earlier report by Tass quoting a representative of the South African Ministry of International Relations. However, there has been no decision to this effect yet, the official said, adding that a BRICS currency was being discussed as a concept.
During a meeting of the foreign ministers of the BRICS states in Cape Town in early June, the group’s top diplomats announced a plan to encourage the use of local currencies in international trade. At the end of April, South Africa’s ambassador to the group, Anil Sooklal, highlighted efforts to create a common currency but also noted that the bloc was focused on expanding the use of national currencies.
Do you think that BRICS will eventually issue a single currency? Share your expectations in the comments section below.
Argentina Allows Banks to Open Yuan Accounts — Economist Says It Could Boost Chinese Currency as Safe Haven Alternative to US Dollar
The central bank of Argentina has officially included the Chinese yuan as a recognized currency for making deposits in bank accounts. “Opening yuan accounts could attract more people and enterprises to exchange Argentinian peso to yuan, as more or less a ‘safe haven’ currency, instead of exchanging all of their local currency to U.S. dollars,” an economist explained.
Banks in Argentina Now Authorized to Open Yuan Accounts
Argentina’s central bank announced Thursday that it is now allowing Chinese yuan in bank accounts. The announcement states (translated by Google):
The Central Bank of the Argentine Republic has incorporated the renminbi yuan as an accepted currency for deposit-taking in savings banks and checking accounts. Financial entities will thus be enabled to open bank accounts denominated in renminbi yuan.
The decision by Argentina’s central bank to incorporate the Chinese yuan aligns with the country’s struggle against a dwindling supply of U.S. dollars. The move also coincides with China’s ongoing efforts to promote the internationalization of its currency.
In addition, Argentina’s National Securities Commission announced in June that it would allow dealing in renminbi-denominated securities. Earlier this month, China’s central bank, the People’s Bank of China (PBOC), and Argentina’s Central Bank signed an agreement for a 130 billion yuan (.9 billion) bilateral currency swap over three years.
BBVA Research’s senior China economist, Dong Jinyue, was quoted by the South China Morning Post as saying:
Opening yuan accounts could attract more people and enterprises to exchange Argentinian peso to yuan, as more or less a ‘safe haven’ currency, instead of exchanging all of their local currency to U.S. dollars.
“The diversification of foreign currency exchange will surely help alleviate the US dollar shortage in Argentina because US dollars become not the only foreign currency to exchange,” he opined.
Stephen Olson, a senior research fellow at the Hinrich Foundation, described:
Given rising geopolitical tensions, China is growing increasingly uncomfortable with the pre-eminent role of the U.S. dollar in conducting international trade.
Some people believe that the Chinese yuan has the potential to erode the dominance of the U.S. dollar in global financial markets, including TD economist Vikram Rai. Russia’s VTB Bank Chairman Andrey Kostin, who is sanctioned by the U.S., said in May that the Chinese yuan could replace the U.S. dollar as the world’s main reserve and settlement currency as early as the next decade. In addition, many people expect a proposed common BRICS currency to challenge the USD’s hegemony.
What do you think about Argentina’s central bank allowing banks to open accounts in Chinese yuan? Let us know in the comments section below.
US Treasury Secretary: No Alternative Reserve Currency Can ‘Replicate’ Role Played by the Dollar
United States Treasury Secretary Janet Yellen recently told members of the U.S. Congress that while some countries are seeking to create alternatives to the greenback, no country, including China, can create a currency which replicates the dollar’s role in the global financial system. The U.S. Treasury secretary also claimed that it will not be easy for any country “to devise a way to get around the dollar.”
Using an Alternative Reserve Currency to Skirt U.S. Sanctions
United States Treasury Secretary Janet Yellen has told members of the Financial Services Committee of the U.S. Congress that the ongoing trend of countries seeking to establish an alternative reserve currency to rival the greenback “is something that we simply have to expect.” In her June 13 appearance before the committee, Yellen claimed that countries championing the creation of an alternative to the dollar are doing so because they want to avoid the effects of U.S. sanctions.
Yellen’s apparent admission that some countries are not happy with the United States’ alleged weaponization of the dollar came amidst increased calls for de-dollarization of the global economy. As has been reported by Bitcoin.com News, some Asian and South American countries have agreed to use local currencies when settling cross-border transactions. In addition, many countries including those sanctioned by the United States government, have signaled their support for the Brazil, Russia, India, China and South Africa (BRICS) currency.
Absence of Capital Controls
While she acknowledged that the United States’ rivals are seeking to de-dollarize, the Treasury Secretary insisted that the greenback’s role in the global financial system is unparalleled and therefore toppling it is not going to be easy.
“The dollar plays the role it does in the world financial system for very good reasons that no other country is able to replicate, including China. And that is we have deep, liquid and open financial markets, a strong rule of law and an absence of capital controls that no country is able to replicate,” Yellen said when responding to a question from Ohio U.S. House representative Warren Davidson.
The Treasury Secretary also claimed that it will not be easy for any country “to devise a way to get around the dollar.” However, in her earlier remarks, Yellen reiterated her belief that Congress’ inability to raise the debt ceiling limit in time is harming the United States’ reputation as a country that pays its bills on time.
What are your thoughts on this story? Let us know what you think in the comments section below.
Brazil Sees BRICS Bank as Alternative Financial Institution, President Lula Says
The government of Brazil views the development bank established by the BRICS bloc as an alternative to traditional financial institutions, the country’s head of state told African diplomats. President Lula da Silva also vowed that the bank will improve cooperation with its African counterpart.
Brazil Wants the New Development Bank Under BRICS to Strengthen as Financing Instrument
Authorities in Brasilia consider the New Development Bank (NDB), created by the BRICS nations (Brazil, Russia, India, China, and South Africa), as a promising alternative to traditional financial institutions, Brazilian President Luiz Inacio Lula da Silva was quoted as saying by the Tass news agency.
Lula made the statement during a meeting with ambassadors from African countries. “We want the BRICS bank to strengthen as an alternative instrument for financing, and we will reinforce our cooperation with the African Development Bank,” he emphasized.
Current international financial and banking institutions ignore the needs of developing nations and are not suitable for them, because many of those countries are being “strangled by overwhelming debt burdens,” he elaborated on Thursday.
The BRICS countries established the NDB, formerly called the BRICS Development Bank, after signing an agreement in Fortaleza, Brazil, in the summer of 2014, when Dilma Rousseff was President of Brazil. In March 2023, she was elected president of the bank.
The BRICS’ development bank funds infrastructure and sustainable development projects in the bloc’s member states and developing countries. In 2021, the NDB admitted Bangladesh, Egypt, the United Arab Emirates, and Uruguay to the scope of its activities.
Nearly 100 projects for almost billion have been approved by the bank since its launch in areas such as transport, water supply, clean energy, digital and social infrastructure, and urban construction, the report noted.
In April of this year, the Shanghai-headquartered bank announced it has issued its first “green” bonds in U.S. dollars in the amount of .25 billion. The proceeds from the placement will be used to finance or refinance eligible “green” projects in participating nations.
Do you think the role of the NDB will continue to expand in the coming years? Share your thoughts on subject in the comments section below.