Earlier this week, Bank of America analysts revealed that gold might reach ,000 in the next 18 months, pushed by central bank demand and a Federal Reserve dovish turn. “Achieving this would require non-commercial demand to pick up from current levels, which in turn needs a Fed rate cut to happen,” Bank of America analysts […]
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Bank of America: Younger Wealthy Investors Prefer Crypto Over Traditional Investments
Bank of America report shows younger affluent individuals favor crypto and alternative investments, differing from older generations’ traditional focus. “In fact, the most ‘conservative’ group is holding the highest average exposure to crypto,” the bank said. ‘Younger Groups Hold More Crypto and More Alternative Investments’ Bank of America released a report titled “2024 Bank of […]
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Bank of America Predicts Bullish Trend for Silver, Prices to Hit $35/oz by 2026
Bank of America (BOFA) forecasts a bullish trend for silver, anticipating an increase in prices through the latter half of 2024 into 2025. BOFA analysts project silver prices to average /oz by 2026, compared to the current spot price of .19/oz. This optimistic outlook is driven by expectations of an end to central bank interest […]
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ceτi AI Acquires Big Energy Investments Inc. to Boost Its High-Performance Computing Capabilities in North America
PRESS RELEASE. Vancouver, Canada — April 18th, 2024 – ceτi AI, a leader in decentralized artificial intelligence infrastructure, is pleased to announce its acquisition of Canadian company Big Energy Investments Inc., a firm specializing in strategic investment in high-performance computing infrastructure. This acquisition marks a significant first step in ceτi AI’s strategy to advance the […]
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‘Trust in Authority’ Sustains Popularity of Centralized Exchanges in Latin America, Says Ricardo Da Ros
According to Ricardo Da Ros, CEO of the crypto platform Patex, many crypto users in Latin America (LATAM) seem to prefer using centralized exchanges (CEXs) over decentralized ones. He attributes this preference to a culture in the region that “has been built on trust in authority.” Da Ros suggests that this culture, combined with the […]
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Bank of America Merrill Lynch and Wells Fargo Begin Offering Spot Bitcoin ETFs to Clients, Report
Bank of America’s Merrill Lynch and Wells Fargo’s wealth management arm have reportedly begun offering some clients access to spot bitcoin exchange-traded funds (ETFs). Other investment platforms that offer some clients access to spot bitcoin ETFs include Fidelity, Charles Schwab, Robinhood Markets, and UBS. Major Banks Embrace Bitcoin ETFs Bank of America’s investment arm, Merrill […]
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Economist Peter Schiff: Complete Separation of US-China Economies Would Be ‘a Disaster for America’
Economist Peter Schiff has warned that a complete separation of the Chinese and U.S. economies would be “a disaster for America, but a boon for China.” He explained: “Americans would be stuck with fewer goods and higher prices, while the Chinese would be rewarded with more goods and lower prices.”
Peter Schiff on U.S.-China Decoupling
Economist and gold bug Peter Schiff shared his thoughts on the U.S. economy and the dire consequences of the U.S. decoupling from China in several posts on social media platform X Friday.
Commenting on the remarks by Treasury Secretary Janet Yellen stating that a “full separation” of the U.S. and China economies “would be economically disastrous” for both countries as well as for the world, Schiff argued:
Janet Yellen is only half right. A complete separation of the Chinese and American economies would be a disaster for America, but a boon for China.
“Americans would be stuck with fewer goods and higher prices, while the Chinese would be rewarded with more goods and lower prices,” Schiff explained. “We can’t make stuff, that’s the problem. All China has to do is consume what they make. That’s easy.”
Yellen’s statements were made on Thursday during a bilateral meeting with China’s Vice Premier He Lifeng. Emphasizing that “the United States has no desire to decouple from China,” the Treasury Secretary stated: “We seek a healthy economic relationship with China that benefits both countries over time. When we have concerns about specific economic practices, such as those that prevent American firms and workers from competing on a level playing field, we will communicate them directly.”
This was not the first time Schiff sounded the alarm about the harmful effects of the U.S. decoupling from China. “We can’t afford to decouple because you have to recognize that China is both our biggest supplier and our biggest banker. The Chinese loan us the money to buy the stuff that they produce that we can’t, and our entire standard of living rests on the support of China,” the gold bug said in September.
Schiff also regularly warns about the collapse of the U.S. economy and the dollar. “We are getting very close to a crash in Treasuries,” he cautioned last month. “The dollar will tank, taking the U.S. economy and the American standard of living down with it.” He also predicted a deep recession, an inflationary depression, and the collapse of the USD demand. In September, he warned of the biggest bond market crash and an “unprecedented” financial crisis.
Do you agree with Peter Schiff that the U.S. decoupling from China would be a disaster for America but a boon for China? Let us know in the comments section below.
North America Is Largest Crypto Market Despite Regulatory Uncertainty, Chainalysis Reports
North America leads in terms of cryptocurrency usage despite the ongoing regulatory uncertainty, blockchain forensics firm Chainalysis revealed. Meanwhile, stablecoin-related activity has been decreasing with users shifting away from U.S.-based services. The region’s share in decentralized finance (defi) usage has declined as well.
Institutional Crypto Activity Plays Bigger Role in North America Than Other Regions, Chainalysis Says
With around .2 trillion in value received on-chain between July 2022 and June 2023, North America is the world’s largest crypto market, according to Chainalysis. The conclusion comes from the company’s 2023 Geography of Cryptocurrency Report.
The estimated total represents 24.4% of the global transaction activity during the studied period. The authors also found that institutions move North America’s crypto market more than that of any other region with nearly 77% of the transaction volume driven by transfers of at least million.
The United States is the main driver of this activity with a significant contribution from Canada in terms of transaction volume, the blockchain analytics firm pointed out. The U.S. also ranks first overall worldwide, according to an excerpt from the report published Monday.
In general, North American crypto activity for the whole period has fallen. The trend, observed in other regions as well, developed after a string of negative events over the past year such as last November’s collapse of crypto exchange FTX and the troubles with crypto-friendly banks in the U.S. The overall decline has been attributed largely to institutional investors pulling back from the market.
Meanwhile stablecoin usage has also decreased. Between February 2023 and June 2023, stablecoins fell from over 70% to below 49% of North America’s on-chain transaction volume with activity shifting to non-U.S. licensed platforms.
While stablecoins remain the most widely used crypto asset on the continent and over 90% of stablecoin activity is associated with stablecoins pegged to the U.S. dollar, the United States may be losing regulatory oversight of the stablecoin market, Chainalysis noted, elaborating:
Though U.S. entities originally helped legitimize and seed the stablecoin market, more crypto users are pursuing stablecoin-related activity with trading platforms and issuers headquartered abroad.
North America is still a leader in defi usage but its share of the global activity in this space has fallen significantly during the examined period, the report revealed. The region’s on-chain activity has been split evenly between defi and centralized exchanges, the authors said.
On a positive note, Chainalysis has also found that on-chain crypto activity has started to gradually increase since June of this year. Its analysts believe that regulation will be a key factor for the continued growth of crypto in North America.
“As the region rebounds from crypto winter, regulation will play an important role in its recovery,” the company said. The statement comes amid criticism from the industry over the current regulatory approach by U.S. authorities which favors enforcing existing rules through courts rather than adopting crypto-specific regulations. This has already convinced major U.S. players to seek expansion elsewhere.
Do you think North America will remain the leading region in terms of crypto usage? Share your thoughts on the Chainalysis report in the comments section below.
Bank of America CEO Discusses Economic Slowdown and Fed Cutting Interest Rates
Bank of America CEO Brian Moynihan expects the U.S. economy to slow down in the middle of next year. The executive also noted that according to his bank’s research, the Federal Reserve will start cutting interest rates in the middle of next year to the latter half of next year.
Bank of America Boss Brian Moynihan on U.S. Economy
The chairman and CEO of Bank of America, Brian Moynihan, shared insights on the U.S. economy and the potential Federal Reserve interest rate cuts during an interview with Fox Business on Wednesday. Moynihan detailed that according to Bank of America’s research team:
The economy slows down in the middle of ’24 to about a half-a-percent annualized growth for the second and third quarter, and then works its way back out. And the Fed will start cutting rates, they believe, in the middle of next year to the latter half of next year.
“So that’s the basic thing, what would be called a soft landing,” he added. The Bank of America chief then cautioned that there is a geopolitical risk, such as if the Fed tightening goes too far.
Moynihan discussed how interest rate hikes have changed consumer and business decision-making. The Federal Reserve has raised its key interest rate 11 times since March of last year, pushing it to the highest level in 22 years. Furthermore, the executive stressed that inflation remains a concern, with the Labor Department’s recent report indicating a 0.4% rise in the consumer price index for everyday goods, including essentials like gasoline, groceries, and rents, during September.
The Bank of America CEO emphasized: “The higher interest rates affect the most rate-sensitive of activities, so homes, and you saw mortgage applications were low today just because a higher interest rate makes everybody step back and adjust. Car purchases, same thing.” Tesla CEO Elon Musk recently raised a similar concern regarding high interest rates affecting car purchases.
Moynihan noted: “People are forgetting on the commercial side, there’s a huge impact of higher rates in terms of people’s willingness to borrow … And so lending conditions are tight, and that’s what the Fed wanted to achieve.” He concluded:
The point is that all the impacts of everything going on have led the consumer to slow down their activity. Whether it’ll be bounced around in retail sales, this is across all the things they do with their money.
Do you agree with Bank of America CEO Brian Moynihan about the U.S. economy and when the Fed will start cutting interest rates? Let us know in the comments section below.
Bank of America Assesses Significance of Paypal’s USD Stablecoin and Fednow System
Bank of America has provided its analysis of Paypal’s U.S. dollar stablecoin and the Fednow payments system. The bank does not expect the widespread adoption of PYUSD to occur in the near future, noting that the introduction of Paypal’s stablecoin will not lead to “accelerated regulatory clarity.” Nonetheless, Bank of America believes that stablecoins have the potential to provide a more efficient payment solution.
Bank of America on Paypal’s US Dollar Stablecoin
Bank of America published a Global Digital Asset Strategy report last week covering its view on Paypal’s U.S. dollar stablecoin and the Fednow payments system. The report was written by Alkesh Shah, head of global crypto and digital assets strategy at Bank of America Global Research, and Andrew Moss, the bank’s global digital asset strategist.
Paypal (Nasdaq: PYPL) is launching a U.S. dollar-denominated stablecoin, called Paypal USD (PYUSD), which will be available to U.S.-based Paypal customers. According to the payments giant, the stablecoin will be compatible with select third-party digital asset wallets and backed by traditional assets, including the U.S. dollar, short-term Treasuries, and cash equivalents.
Noting that Paypal, with 435 million users, is the first global company “to launch a stablecoin with regulatory approval,” Bank of America stated:
We expect PYPL’s PYUSD launch to drive payments efficiencies and an improved customer experience over time, but PYUSD adoption is unlikely to be significant in the near term, given lack of wallet compatibility, exchange trading pairs or new functionality.
“Over the longer term, we expect PYUSD to experience additional adoption headwinds as competition from CBDCs [central bank digital currencies] and yield-bearing stablecoins increases,” Bank of America continued. “Investors may have been fine holding non-yield-bearing stablecoins, such as USDT and USDC, when rates were close to zero, but yield-bearing stablecoins will likely become increasingly available and attractive with short-term rates above 5%.”
Regarding crypto regulations, Bank of America stressed:
We do not expect PYUSD’s launch to lead to accelerated regulatory clarity, given the stablecoin’s issuance does not alter systemic risk for traditional markets, but the stablecoin may face regulatory headwinds if non-banks are ultimately barred from stablecoin issuance.
Bank of America on Fednow
The Bank of America report also provides an analysis of the Fednow service, which went live on July 20 to “enable financial institutions, specifically banks and credit unions, to facilitate bank account-to-bank account transfers of customer funds in (near) real-time,” the bank described. Shah and Moss detailed:
We view Fednow as a needed and innovative solution to a problem – inefficient domestic payments and transfers – that other countries have already solved.
The analysts explained that Fednow’s infrastructure does not leverage blockchain technology, stating: “Instead, Fednow uses traditional payment rails to produce an interbank settlement system.”
They emphasized: “As the digital asset ecosystem evolves, we see the potential for stablecoins and, ultimately, CBDCs to provide an even better solution that would be faster and cheaper, especially for cross-border payments and transfers, which Fednow does not support … We note that the efficiencies Fednow enables are unlikely to be fully captured without financial institution adoption and resulting network effects, as well as development of end-user interfaces and applications.”
Do you agree with Bank of America on Paypal’s USD stablecoin and the Fednow system? Let us know in the comments section below.