Chairman of the Russian State Duma Committee on the Financial Market Anatoly Aksakov stated that digital financial assets, issued by institutions regulated by the central bank, could replace fiat channels for international settlements. Aksakov also acknowledged that while not being controlled for this use case, digital assets were already being used to settle international payments. […]
Bitcoin News
Peter Brandt: Bitcoin Vying to Replace Fiat Currencies as Primary Store of Value
Veteran trader and renowned chartist Peter Brandt says bitcoin is “vying to become the Level 1 ‘store-of-value’ standard replacing fiat currencies and government bonds.” He explained that fiat currencies, like the U.S. dollar, “will still be used to buy groceries and pay for gas.” Moreover, he expects governments to “constantly be issuing new currency replacements.” […]
Bitcoin News
IMF Chief Says Central Bank Digital Currencies Can Replace Cash — Urges Public Sector to Prepare for CBDC Deployment
International Monetary Fund (IMF) Managing Director Kristalina Georgieva says central bank digital currencies (CBDCs) can replace cash. She has urged the public sector to “keep preparing to deploy CBDCs and related payment platforms,” emphasizing that these platforms “should be designed from the start to facilitate cross-border payments, including with CBDCs.”
IMF Chief Encourages CBDC Adoption
Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), discussed central bank digital currencies (CBDCs) Wednesday at this year’s Singapore Fintech Festival. The IMF also released a CBDC handbook as a reference guide for policymakers and experts at central banks and ministries of finance around the world.
The IMF chief detailed:
CBDCs can replace cash which is costly to distribute in island economies. They can offer resilience in more advanced economies. And they can improve financial inclusion where few hold bank accounts.
“CBDCs would offer a safe and low-cost alternative. They would also offer a bridge to go between private monies and a yardstick to measure their value, just like cash today which we can withdraw from our banks,” she added.
Georgieva explained that many countries “are developing regulation to guide digital money developments.” However, she admitted: “We have not yet reached land. There is so much more space for innovation and so much uncertainty over use-cases.” Citing various benefits of central bank digital currencies, the head of the IMF opined: “In some countries, the case seems dim today, but even they should remain open to potentially deploy CBDCs tomorrow.”
According to the Atlantic Council’s Central Bank Digital Currency Tracker, 130 countries, representing 98% of the global GDP, are exploring a CBDC, with 11 having fully launched a digital currency. In addition, 19 of the G20 countries are now in the advanced stage of CBDC development.
Emphasizing that “this is not the time to turn back,” the IMF managing director stressed:
The public sector should keep preparing to deploy CBDCs and related payment platforms in the future … These platforms should be designed from the start to facilitate cross-border payments, including with CBDCs.
Georgieva also said that artificial intelligence (AI) “could amplify some of the benefits of CBDCs.” She noted: “It could improve financial inclusion by providing rapid, accurate credit scoring based on various data. It could provide personalized support to people with low financial literacy.” However, the IMF chief continued: “To be sure, we need to protect personal privacy and data security, and avoid embedded biases so we don’t perpetuate inequality but aim to reduce it. Managed prudently, AI could help.”
What do you think about the statements by IMF chief Kristalina Georgieva about central bank digital currencies? Let us know in the comments section below.
Polygon Labs Unveils ‘Hyperproductive’ Token POL, Poised to Replace MATIC and Boost Ecosystem Rewards
Polygon Labs, the team behind the Polygon blockchain network, has introduced a third-generation token that could replace the native cryptocurrency, MATIC, with a “hyperproductive” digital currency named POL. If the POL concept gains approval, validators can earn rewards from staking and also accumulate rewards from multiple Polygon chains.
Polygon Labs Introduces Next-Gen Crypto With POL, a Potential MATIC Successor
Polygon Labs introduced a multipurpose token named POL on July 13, 2023, following the release of a white paper on the subject by a group of Polygon founders and researchers. The white paper outlines POL’s role as a potential successor to MATIC, becoming a crucial tool in fostering growth and collaboration within the Polygon ecosystem. One significant advantage of POL is that stakers will have the opportunity to accumulate rewards in POL as well as from other Polygon-centric networks.
Described as a “hyperproductive” digital currency, POL has the capability to validate numerous blockchains, according to a blog post by Polygon Labs on POL’s tokenomics. “To attract more validators, some Polygon chains can choose to introduce additional rewards,” the post explains. “These rewards can be in any token, including but not limited to POL, stablecoins or native tokens of those Polygon chains.” Should it receive approval, POL’s supply is poised to match MATIC’s 10 billion, and users can exchange MATIC for POL at a 1:1 ratio.
Polygon Labs states:
The upgrade from MATIC to POL would require a simple technical action – sending MATIC to the upgrade smart contract, which will automatically return the equivalent amount of POL.
Furthermore, the team announced regular POL emissions as a means to finance a community treasury, the purpose of which is to encourage protocol development, promote protocol research, distribute ecosystem grants, and foster adoption incentives. “The community treasury should be governed by the Polygon community, via an agreed upon governance process,” the blog post elaborates.
MATIC holders will be accorded a time frame to exchange MATIC for POL, with Polygon Labs recommending a period of four years or more. Wrapping up, the team indicated that the transition could commence within a few months if the community endorses this proposal
What do you think about Polygon proposing to revamp MATIC with POL? Share your thoughts and opinions about this subject in the comments section below.
Nobel Laureate Paul Krugman Says US Dollar Dominance Won’t Last Forever but Doubts Chinese Yuan Can Replace USD
Nobel Prize-winning economist Paul Krugman says the U.S. dollar’s dominance “won’t last forever.” While recognizing the global de-dollarization trend, he expressed skepticism about the Chinese yuan’s ability to replace the U.S. dollar as the world’s dominant currency.
Economist Paul Krugman on U.S. Dollar Dominance and Chinese Yuan
Nobel laureate Paul Krugman discussed the U.S. dollar’s dominance and the potential for the Chinese yuan to replace the USD in an opinion piece published in The New York Times earlier this month. Krugman won the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel in 2008 for his analysis of trade patterns and location of economic activity.
Krugman acknowledged the growing de-dollarization trend worldwide and the potential decline of the U.S. dollar’s role in international trade, as more countries seek to de-dollarize. However, citing a Federal Reserve report that analyzed various indicators of dollar dominance, he stressed that the U.S. dollar’s dominance has remained steady over the past two decades, adding that “diminution of the dollar’s status seems unlikely in the near term.”
Regarding the decline of the U.S. dollar’s share in central bank reserves, which dropped from 71% in 2000 to 58% in 2022, the Nobel laureate explained: “This decline mainly reflects diversification into smaller currencies such as the Canadian and Australian dollars, rather than a move to serious dollar rivals.”
Noting that many people hold the view that the U.S. is weaponizing its currency through financial sanctions, Krugman further cited the Fed paper, stating:
Just about all prominent reserve currencies are issued by close U.S. allies, who have also participated in sanctions against Russia. As a result, geopolitical adversaries do not have many attractive alternatives to the U.S. dollar.
Krugman also discussed the possibility of the Chinese yuan displacing the U.S. dollar as the world’s dominant currency. While admitting that China is a major economic power, he questioned whether Mandarin will become the dominant language of international commerce or if the yuan will become a major international currency. The Nobel Prize-winning economist believes that it is unlikely that either will become dominant in international commerce in the near future, pointing to factors such as the limited use of Mandarin as a second language and China’s capital controls.
In conclusion, Krugman opined:
The greenback’s dominance won’t last forever, because nothing does. But the hype about de-dollarization is much ado about almost nothing. For now, the dollar dominates because there just aren’t any good alternatives.
Multiple people have warned about the end of the U.S. dollar dominance, including Rich Dad Poor Dad author Robert Kiyosaki, S&P Global economist Paul Gruenwald, and veteran trader Jim Rogers.
One currency that many expect to replace the U.S. dollar is the proposed BRICS currency which could be backed by gold. U.S. Treasury Secretary Janet Yellen, however, doesn’t see the proposed BRICS recurrency as a threat to the USD.
Do you agree with Nobel laureate Paul Krugman about the U.S. dollar dominance and the Chinese yuan? Let us know in the comments section below.
Iran Looking to Replace Dollar With Dinar in $10 Billion Trade With Iraq
Iran’s government considers employing the Iraqi dinar in bilateral trade with Iraq in a bid to further curtail the dominance of the U.S. dollar. The annual turnover between the two neighboring nations exceeds billion with millions of pilgrims and health tourists crossing the border each year.
Iran and Iraq Can Reduce Dollar Dominance by Using Dinar in Trade, Official Says
The government in Tehran is pushing for wider use of national currencies in foreign trade and is viewing the Iraqi dinar as an alternative to the dollar in transactions with Bagdad, regional media reported. Replacing the U.S. currency with the dinar in bilateral trade between Iran and Iraq would weaken the dollar’s supremacy, according to an Iranian official.
Speaking to Iran’s Mehr News Agency, the head of the Iran-Iraq Chamber of Commerce, Yehya Eshaq, made it clear that the transition to dealing in national fiats is a priority for the current Iranian government. “Most countries in the world are looking for breaking the American hegemony in their exchanges, and the use of national currencies can help accelerate this process,” Eshaq said and added:
By favoring the dinar over the dollar in trade operations with Iraq, we are actively undermining the dollar’s dominance in our import-export transactions as part of a wider governmental strategy.
Also quoted by the Shafaq news agency in Iraq, Eshaq pointed out that transacting in national currencies can speed up the ongoing shift away from U.S. control on global trade, a trend which, in his opinion, is gaining traction.
The annual exchange of goods and services between the two neighboring nations currently amounts to more than billion, the Iranian official highlighted. “The adaptation of a trade system pivoting on the national currencies of the two nations would further cement these relations and galvanize more robust trade ties,” he elaborated.
Iran and Iraq should be able to reduce the dominance of the dollar by maximizing trade exchanges with their national currencies, Yehya Eshaq emphasized, adding that both nations can benefit from this move and proper follow-up steps.
Eshaq’s statements follow recent remarks by Iran’s President Ebrahim Raisi who stressed the need for de-dollarization. Speaking during the virtual summit of the Shanghai Cooperation Organization’s Council of Heads of State earlier this week, he stated that any attempt to shape a fair international system requires the removal of the U.S. dollar as an “instrument of dominance in intra-regional relations.”
Do you think Iran and Iraq will soon switch to settlements in national currencies in bilateral trade? Tell us in the comments section below.
Chinese Yuan to Replace US Dollar as World’s Reserve Currency, Says Russian Banker
Russia’s second-largest bank’s chairman says there is every reason to expect the Chinese yuan to replace the U.S. dollar as the world’s main reserve currency. He highlighted that the central bank of Russia has already begun investing its reserves in yuan, and over 70% of the trade turnover between Russia and China is settled in yuan along with the ruble.
VTB Bank President Expects Chinese Yuan to Replace US Dollar as World’s Reserve Currency
Russia’s VTB Bank Chairman Andrey Kostin reportedly said at a Russian-Chinese business forum in Shanghai last week that the Chinese yuan will replace the U.S. dollar as the world’s reserve and settlement currency in the next 10 years.
“China is now the world’s second-largest economy and will soon become the first,” he was quoted by Sputnik as saying. The executive added:
There is every reason to expect that the Chinese yuan will replace the U.S. dollar as the world’s main reserve and settlement currency as early as the next decade.
“In fact, the central bank of Russia is already investing its reserves in yuan, and more than 70 percent of trade turnover between Russia and China is settled in yuan together with the ruble,” Kostin continued.
The VTB Bank chairman explained that the monetary and financial system that has been in place for decades ensures the hegemony of the U.S. and its Western allies, with the USD and the euro accounting for three-quarters of global settlements. He stressed that while the dollar is the world’s main reserve currency, the collective West, particularly the U.S., has been using the USD as a weapon.
In February, the U.S. Treasury Department announced “unprecedented” and “expansive” sanctions against VTB Bank and Sberbank — Russia’s two largest banks.
Russia and China have been increasingly strengthening their economic ties and using their national currencies in trade transactions. In April, the Chinese yuan surpassed the U.S. dollar as the most traded currency in Russia. This trend is expected to continue in the future as both countries seek to reduce their reliance on the U.S. dollar.
Multiple people have warned that the weaponization of the U.S. dollar will lead to the USD losing its global reserve currency status. A growing number of countries are pushing for the use of national currencies to reduce their reliance on the U.S. dollar. The BRICS economic bloc has been ramping up its de-dollarization efforts and has proposed a common currency. Ten Southeast Asian nations have agreed to promote the use of national currencies and recently top officials of nine Asian countries met in Iran to discuss de-dollarization measures. However, the International Monetary Fund (IMF) does not see a “rapid shift” in USD reserves despite the rising de-dollarization trend.
Do you think the Chinese yuan will replace the U.S. dollar as the world’s reserve currency? Let us know in the comments section below.
Former US President Donald Trump States China Is ‘Trying to Replace the Dollar as Number One Currency’
Former U.S. President Donald Trump has acknowledged the push that China is making to dethrone the dollar as a reserve currency. In a post published on Truth Social, Trump stated that if this comes to happen, it would be the biggest defeat in the history of the U.S. in the last 200 years.
Donald Trump Alerts About China’s Push Against the U.S. Dollar
Donald Trump, former president of the U.S. has recognized the recent moves that China and other countries including Russia and Saudi Arabia are taking to undermine the influence of the dollar in worked markets. In a post published in Truth Social, the social platform founded by Trump, he acknowledged these developments, stating:
China is trying to displace the U.S. dollar as the number one currency throughout the world. If this happens, and under Biden’s leadership it probably will, this would be the biggest defeat for our country in its history.
Furthermore, Trump stated that if this comes to happen, the U.S. will be reduced to second-tier status. “Unthinkable three years ago,” he added.
Trump’s statements come after he openly criticized the economic policies of President Biden in a speech given after his arrest on Mar-a-Lago. He blasted the performance of the current administration, stating that the country was ‘going to hell,’ and that the economy was “crumbling” with inflation rates being “out of control.”
Trump also referred specifically to the U.S. dollar in its speech, stating:
Our currency is crashing and will soon no longer be the world standard which will be our greatest defeat frankly in 200 years; there will be no defeat like that. That will take us away from being even a great power.
China Making Moves
China and other nations like Russia and India have been making moves to either support the Chinese yuan as an international settlement currency or to power the use of national currencies for the same purpose. As part of the Xi-Putin meeting on March 22, Putin stated he supported the use of the Chinese yuan to settle payments with emergent economies in Latam, Africa, and other Asian nations.
Also, in its new trading guidelines, India introduced a new option for settling international payments in Indian Rupees to help countries facing a dollar crunch.
BRICS, a bloc in which China is present, is also working in a new currency that will be discussed in the next BRICS summit in August, according to State Duma Deputy Chairman Alexander Babakov.
What do you think about Donald Trump’s statements on China and its moves to substitute the U.S. dollar as world currency? Tell us in the comments section below.
MakerDAO Could Replace Governance Token, Will It Provide Enhanced Incentives?
According to a post on the MakerDAO Forum, the financial service protocol could replace its governance token MKR with a new token called stkMKR. The proposal was introduced to address the criticism around MKR’s tokenomics.
Related Reading | Will Ethereum Give In To Bears?
New MKR tokenomics could supplement and improve on previous benefits and incentives. The proposal emphasized that stkMKR will preserve MKR’s current burn mechanism and will allow users to claim their reinvest dividends and other payouts without spending funds on gas while keeping its tax efficiency.
On previous tradeoffs, stkMKR will attempt to attract more attention to the Maker and the MakerDAO by strengthening its narrative. This could potentially impact the price of its new governance token by attracting more users, and by updating some of its key components. The proposal claims:
A new token, stkMKR, will replace MKR as the core governance token of MakerDAO. stkMKR will be non-transferable, and represents MKR staked in governance. Staked tokenholders will receive a share of MKR tokens purchased through surplus auctions, so stkMKR will be backed by an increasing amount of MKR over time (automatically compounding like xSUSHI).
Moreover, the proposal claims the MakerDAO will become more resilient to potential bad actors and malicious proposals and improve incentives for investors. Currently, the protocol provides rewards to users via buybacks and burn returns, but the new proposal will try to create more incentives for those users “providing excess value”.
As the post claims, stkMKR and its mechanism were inspired by the Cosmos governance model, and by the tokenomics around tokens stkAAVE and xSUSHI. The proposal added:
Withdrawing from stkMKR requires waiting through a pre-set unbonding period, which improves protocol resilience and governance security (similar to Cosmos and stkAAVE).
In addition, the proposal contemplates a portion of MKR in the protocol would be diverted from the burning mechanism directly into stkMKR holders, and combine with another pool that would “smooth out yield volatility” and support Maker in difficult times, as seen below.
Source: MakerDAO Forum
MakerDAO And The New Tokenomics
A lot of protocols have been trying to update and improve their tokenomics and governance model. The DeFi sector has seen a surge in competitive environments. From Solana to Terra, Avalanche, Cosmos, and others, veteran protocols like Maker need to remain competitive.
The proposal seeks to motivate users to participate in the new governance model by improving staking rewards and delegation rates. Also, the proposal seeks to increase the MKR’s value with “concrete APR figures and supply restriction” and increase protection against volatile periods in the market while preventing credit losses.
If approved, the proposal will change the following components of the MakerDAO governance model: migration, which involves voting and contract delegation, conditional delegation, and disaster recovery. The proposal claims:
These changes will reduce the overall buyback yield attributable to all circulating MKR, while offering a new yield source specific to staked MKR. This should increase stkMKR effective yield at the expense of unstaked MKR.
The proposal is currently being discussed by the Maker community and will proceed to more formal voting if it receives positive feedback.
Related Reading | Cake DeFi Launches A 0 Million Investment Arm To Foster Web3 And Gaming Development
At the time of writing, MKR trades at 2 with a 2.23% profit on the daily chart.
MKR trends to the downside on the daily chart. Source: MKRUSDT Tradingview
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Why Shar Pei Is Set To Replace Dogecoin And Shiba Inu
The popularity of meme coins like Dogecoin and Shiba Inu has triggered an influx of meme coins into the crypto space. For starters, there are hundreds, if not thousands, of small projects that have popped up to try to profit off the fame of these tokens. Some have succeeded, most have failed. However, one thing is certain, the Shiba Inu-themed coin market is oversaturated.
To this end, there has been the need for new themes to keep the meme coin space afloat. Cats have made their debut in the space as projects try to break away from dog themes. All this really means is that there needs to be a new dog in town and that dog is Shar Pei.
What Is Shar Pei?
A Shar Pei is a dog breed from southern China that is usually kept as a watchdog or a property guardian. The breed is distinguished by its incredibly wrinkly skin and muscular build. They make for adorable dogs while also being loving companions and guardians.
Deviating from the standard Shiba Inu dog breed that the meme coin space is known for, the Shar Pei project has taken on this dog breed to fly on its banner. Shar Pei has stayed as close to the original theme behind the leading meme coins but has found immense success in its differences. The project combines the fun of the meme coin community with the promise of a great future.
Shar Pei has also taken a different route with its team structure. For starters, the team does not intend to make any out of the meme token. This is why there was no private sale or a seed sale. Shar Pei was launched in a ‘free launch’ to give all investors a fair chance at making massive returns on their investments. The project is the embodiment of what a free and fair opportunity looks like.
$SHARPEI Tokens
Shar Pei was launched three weeks and four days ago and has found great success since it launched. There is a total supply of 100,000,000,000 (100 billion) tokens, with 50% (50 billion) of the tokens locked for five years. This greatly limits the supply available at launch in addition to the current circulating supply which will not go up in volume for the next five years.
There is no dev or team allocated tokens for Shar Pei when the tokens are purchased. Holders can hold millions or billions of $SHARPEI tokens as there is no limit on purchase.
At its current price, the market cap of Shar Pei sits at ,000,000, with over 5,000 holders invested in the token.
The token has recorded an uptrend of up to 20,000% since launch and is expected to continue its bullish trend as the project matures. Shar Pei is listed on CoinMarketCap and Coingecko and is available for purchase on PancakeSwap.
For more information, visit https://sharpeitoken.io