David Bailey, CEO of Bitcoin Magazine and Trump campaign cryptocurrency aide, has announced that Former President Donald Trump will participate in a Presidential Roundtable on domestic bitcoin mining as part of its new cryptocurrency-friendly policy. He revealed that big miners from the U.S. would be present at the event without disclosing the list of assistants. […]
Bitcoin News
Russia to Enact a Ban on Domestic Operations Of Cryptocurrency Exchanges
Russia is preparing to enact a ban on the organization of cryptocurrency exchanges in the country via the approval of a bill that regulates mining activities. According to statements made by Russian Duma Financial Market Chairman Anatoly Aksakov, digital financial assets like the digital ruble will be allowed to circulate. State Duma to Enact Ban […]
Bitcoin News
Taiwan Acknowledges Binance for Cooperating With Domestic Law Agencies
The government of Taiwan has acknowledged the cooperation Binance has offered to domestic law enforcement agencies. According to local reports, Binance is the only offshore exchange that assists the government in dealing with virtual asset fraud cases, allowing authorities to access the accounts involved in these actions and deposit the assets derived from these schemes. […]
Bitcoin News
Bank of America: Threats to US Dollar’s Dominance Largely Domestic — Not BRICS Currency or Chinese Yuan
Bank of America has warned that the key threats to the U.S. dollar’s dominance are largely domestic, as opposed to competition from other currencies, including a BRICS currency. “U.S. fiscal brinkmanship, with risks for government shutdown, or even worse a default, keeps coming up during debt ceiling discussions,” the bank’s analysts stressed.
Bank of America on Threats to U.S. Dollar’s Dominance
Bank of America reportedly said in a note Thursday that despite recent de-dollarization headlines, the U.S. dollar is not in danger of losing its dominance anytime soon. However, the bank warned that the USD is at risk from domestic fiscal issues, such as the possibility of the U.S. defaulting on its debt obligations.
“Because much of the USD’s dominant role comes from standing in front of the TSY [U.S. Treasury] market, surprise defaults from a debt ceiling showdown would compromise the dollar’s attractiveness as a store of value,” Bank of America’s analysts detailed, elaborating:
Therefore, the key threats to the USD’s dominant role seem largely domestic, as opposed to competition from other currencies.
The analysts cautioned that the long-term risk to the U.S. currency is complacency regarding debts, noting that, apart from Japan, U.S. government debt as a percentage of GDP is the highest in the G10. Moreover, the International Monetary Fund (IMF) predicts that the U.S. debt-to-GDP ratio will increase from 122% in 2022 to 136% by 2028.
Bank of America described:
U.S. fiscal brinkmanship, with risks for government shutdown, or even worse a default, keeps coming up during debt ceiling discussions.
U.S. Treasury Secretary Janet Yellen recently revealed that the Treasury may not be able to pay all of the government’s bills by June 1 “if Congress does not raise or suspend the debt limit before that time.” She also warned: “If Congress fails to increase the debt limit, it would cause severe hardship to American families, harm our global leadership position, and raise questions about our ability to defend our national security interests.”
Alternative Currencies to USD
Despite the danger of the U.S. defaulting on its debt obligations and a rising de-dollarization trend, Bank of America believes that there are no viable alternative currencies to the U.S. dollar and the USD remains the dominant currency in trade, international invoicing, and SWIFT payments. Nonetheless, the analysts cautioned that the U.S. dollar has lost some market share among central bank reserves.
The analysts wrote:
USD not about to lose its exorbitant privilege … no single alternative has appeared.
Bank of America further noted that the use of the Chinese yuan could expand internationally but stressed that Chinese regulators would need to open up its capital account, which could make China vulnerable to outflow volatility and monetary policy interference.
In addition, the Bank of America analysts believe that a BRICS currency is unlikely to replace the U.S. dollar as the world’s reserve currency, as it would require cooperation among member countries that have limited trade with one another, aside from China, and whose relations can often be tense. The BRICS nations comprise Brazil, Russia, India, China, and South Africa. The economic bloc has been gaining influence globally. Nineteen countries have either applied to join or have expressed interest in joining.
However, multiple economists expect a common BRICS currency to erode the U.S. dollar’s dominance. A Swedish university professor recently said that Saudi Arabia joining the BRICS group would accelerate the use of the Chinese yuan as a trading currency.
Do you agree with Bank of America about the U.S. dollar’s dominance? Let us know in the comments section below.
3.5 Million Traders: Japan Releases Domestic Cryptocurrency Statistics
Japan’s Financial Services Agency has published domestic cryptocurrency trading statistics for the first time.
CoinDesk
Ripple Powered App to Revolutionize Domestic Payments in Japan
Ripple makes the news almost every couple of days however the price of its cryptocurrency, XRP, just cannot gain traction at the moment. Partnerships keep coming and the San Francisco company’s network keeps expanding. This week’s announcement is a new smartphone application to enable on-demand payments for Japanese banks and their customers.
The announcement was made yesterday on the company blog. It stated that the Japan Bank Consortium, already RippleNet partners, will be releasing an app called ‘MoneyTap’ later this year. The app is a first of its kind operating with multiple banks; it will allow bank customers to make transactions instantly, 24 hours a day, seven days a week.
Bank Transfers Revolutionized
SBI Ripple Asia heads the 61 member bank consortium which accounts for 80% of all banking assets in Japan. The Ripple blockchain powered app will revolutionize domestic payments within the country which are currently limited to office and banking hours on weekdays only.
MoneyTap will work with a bank account, phone number, or QR code and will offer high speed, low cost transactions, eliminating much of the time and expense with existing transfer protocols.
Takashi Okita, CEO of SBI Ripple Asia said;
“We are proud to leverage Ripple’s blockchain technology through our new mobile app, MoneyTap, to improve the payments infrastructure in Japan. Together with the trust, reliability and reach of the bank consortium, we can remove friction from payments and create a faster, safer, and more efficient domestic payments experience for our customers.”
RippleNet has over 100 partners already utilizing the xCurrent transfer system and several others using or testing the XRP powered xRapid system. Director of joint venture partnerships at Ripple, Emi Yoshikawa, said;
“The release of the MoneyTap mobile app shows Ripple’s continued commitment to provide its partners across Asia and the world with blockchain-powered solutions that dramatically improve the customer payments journey. We’re proud to provide this production-ready technology that not only improves the international payments experience, but also have applications for domestic payments infrastructure.”
As with previous partnership announcements and company developments XRP’s price has not reacted and is still in decline with all of its crypto siblings. The altcoin enjoyed a fomo induced spike back to .05 a couple of days ago when the Coinbase listing rumors appeared again but has since tumbled back to its previous level at just over .90. Investors have been left wondering why Ripple’s cryptocurrency is not performing as well as the company is.
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Report: South Korea Mulls Closure of Domestic Crypto Exchanges
South Korea is considering to ban all cryptocurrency exchanges or just those that have violated the law, and vows to make a decision today.
CoinDesk
South Korea Moves to Regulate Domestic Bitcoin Trading, Exchanges
Since late November 2017, South Korea has looked to regulate cryptocurrency trading in domestic exchanges, including Bithumb, Coinone and Korbit, The Korea Herald reports. Now, trying to tame the wave of wild cryptocurrency speculation in the country, South Korea is imposing trade bans for minors and looking for ways to impose taxes on investment returns.South Korea is the worlds third largest market in bitcoin trading, after Japan and the U.S., and the largest exchange market for ether, acco
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Zimbabwe Coup Could Spike Bitcoin Price Even Higher on Domestic Exchanges
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OKCoin Suspends Domestic Trading, Receives Extension to Operate for Another Month alongside Huobi
Chinese news reports that two of the country’s largest exchanges have been given an extra month to operate domestically. It appears OKCoin and Huobi will be allowed to continue offering services until October 31, 2017. This corresponded with an instant upswing in crypto markets with Bitcoin alone gaining 0 in just minutes. However, there is … Continue reading OKCoin Suspends Domestic Trading, Receives Extension to Operate for Another Month alongside Huobi
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