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Cryptocurrency
U.S Banks permitted to use Crypto for payments
The OCC has responded to questions regarding the application of stablecoin-related bank activities.
A powerful financial regulator through the Comptroller of the Currency (OCC) recently clarified details on American national banks’ and federal savings associations’ authority in taking part in using stablecoins to conduct payment activities and other bank-permissible functions.
This was made known in a press release which also highlighted key areas on the use of stablecoin-based financial infrastructure;
READ: New crypto gains 1,633% in four days, catches Ethereum creator’s eyes
While governments in other countries have built real-time payments systems, the United States has relied on our innovation sector to deliver real-time payments technologies. Some of those technologies are built and managed by bank consortia and some are based on independent node verification networks such as blockchains,” said Acting Comptroller of the Currency Brian P. Brooks.
READ: OUSD: Stablecoin that pays you interests like a bank
“The President’s Working Group on Financial Markets recently articulated a strong framework for ushering in an era of stablecoin-based financial infrastructure, identifying important risks while allowing those risks to be managed in a technology-agnostic way.
READ: U.S regulator invites Banking and Crypto industry leaders for partnership
“Our letter removes any legal uncertainty about the authority of banks to connect to blockchains as validator nodes and thereby transact stablecoin payments on behalf of customers who are increasingly demanding the speed, efficiency, interoperability, and low cost associated with these products,” Brooks added.
Recall some months back the U.S banking regulator permitted U.S national banks to hold reserve currencies for stablecoins (Tether, Circle).
READ: CBN introduces “Special Bills” as part of efforts to control money supply in the economy
The letter which was released by the Office of the Comptroller of the Currency (OCC) responds to questions regarding the application of stablecoin-related bank activities. It concludes that national banks and federal savings associations may hold “reserves” on behalf of customers who issue stablecoins, in situations where the coins are held in hosted wallets.
Brooks said further, “National banks and federal savings associations currently engage in stable coin-related activities involving billions of dollars each day. This opinion provides greater regulatory certainty for banks within the federal banking system to provide those client services in a safe and sound manner.”
READ: Within 72 hours USDC Treasury transfers over 50,000,000 USDC to wallets
What are Stablecoins?
Stablecoins are cryptocurrencies created to minimize the price swings that occur in a crypto asset. They are usually pegged to fiat currencies and often exchange-traded commodities.
- Stablecoins give owners a sense of security as users can store their assets whenever there is high volatility in the crypto-verse or other financial markets.
Cryptocurrency
Ethereum held on Crypto exchanges might run out of supply in 2 days
A crypto expert has released key details on why Ether coins on crypto exchanges could be all gone within 48 hours.
The amount of Ethers held on Crypto exchanges could go into extinction amid the high buying pressure seen in recent days.
Alex Saunders, a crypto expert, via Twitter, released key details on why Ether coins on Crypto exchanges could be all gone within 48 hours amid high buying pressure.
READ: Crypto: Financial market that never sleeps, or is under any central authority
- “Crypto Exchanges could be out of Ether within 48 hours. Demand has sky rocketed. Exchange reserves fell 20% from 10 million to 8 million in the last few hours. With targets of $5k, $10k & $20k long term, I doubt many HODLers will sell their ETH in the $1-2k range”
READ: Why Ethereum could make you rich
Exchanges could be out of $ETH within 48 hours. Demand has sky rocketed. Exchange reserves fell 20% from 10M to 8M in the last few hours. With targets of $5k, $10k & $20k long term, I doubt many HODLers will sell their ETH in the $1-2k range. 🌐🖥️👽 #ETH2 #DeFi #NFTs #Gaming #DAO pic.twitter.com/rYPOch2u7p
— Alex Saunders 🇦🇺👨🔬 (@AlexSaundersAU) January 14, 2021
READ: 5 rules that Dangote has Adopted from The 48 Laws of Power
Ether reserves held on crypto exchanges have not been this low for about two and a half years ago. At press time, just 7% of Ether’s circulating supply is presently held on Crypto exchanges.
Meanwhile, Crypto investors are buying into the world’s acclaimed utility crypto, over owning a stake in Ether amid the boom seen recently in Crypto markets. Although it has not been strange to many crypto experts in the crypto-verse, seeing Ethereum demand at a record high.
READ: Hackers, expose crypto wallets worth $150 million at Kucoin
Recent data obtained from Glassnode, a crypto analytic firm revealed a number of Ethereum based addresses holding 0.01+ coins just reached an all-time high of 10,997,708.
The previous all-time high of 10,997,003 was observed earlier today.
Metric description: The number of unique addresses holding at least 0.01 coins. Only Externally Owned Addresses (EOAs) are counted, contracts are excluded.
READ: U.S Central Bank leader says no rush into crypto dollar
📈 #Ethereum $ETH Number of Addresses Holding 0.01+ coins just reached an ATH of 10,997,708
Previous ATH of 10,997,003 was observed earlier today
View metric:https://t.co/XXb0u19ouH pic.twitter.com/KYPPpuCtFM
— glassnode alerts (@glassnodealerts) January 15, 2021
What you should know
- At the time of drafting this report, Ether traded at $1,219.35 with a daily trading volume of $34.1 billion. Ethereum is up 11.13% for the day. The world’s leading utility has a market value of $139.3 Billion.
- Breaking the $1,300 resistance level represents a dramatic shift for Ethereum, which stood at around the $112 price level in March 2020 following the market carnage that occurred as a result of the ravaging COVID-19 virus.
- Ethereum is a decentralized system, fully independent, and is not under anybody’s authority. It has no pivotal point, and its platform is connected to thousands of its users through their computing system around the world, which means it’s almost impossible for Ethereum to go offline.
READ: WhatsApp to share users’ personal information with Facebook
Cryptocurrency
U.S Central Bank leader says no rush into crypto dollar
Jerome Powell recently spoke on why the U.S central bank had no reason to rush into central bank digital currencies.
The world’s most powerful monetary policy chief, Jerome Powell, recently spoke on why the U.S central bank had no reason to rush into central bank digital currencies.
In a YouTube webinar organised by Yahoo Finance and conducted by highly revered economist, Markus Brunnermeier, the U.S Fed Reserve Chairman stated that the US central bank desires to get it right and hence doesn’t feel an urge or need to be the first.
READ: Central banks digital currencies pose a threat against the U.S dollar
“Since we are the world’s reserve currency, we actually think we need to get this right, and we don’t feel an urge or need to be first,” he said. “We effectively already have a first-mover advantage, because we’re the reserve currency.”
Powell also revealed that stablecoins were of high-level priority.
READ: Crypto usage absolutely certain – Standard Chartered
“We’ve been very focused… on potential regulatory answers for global stablecoins, in particular,” said Powell in response to a question about CBDCs, or central bank digital currencies.
“So that’s been a high-level focus, and that will continue to be a high-level focus because they could become systemically important overnight and we don’t begin to have, you know, our arms around the potential risks and how to manage those risks, and the public will expect we do and has every right to expect that… It’s a very high priority.”
READ: Gold prices up on U.S Central Bank’s will to keep interest rates low
Recall many months ago, the world’s largest economy considered the use of digital dollars, following slow COVID-19 stimulus payments to its citizens. The U.S Congress recently heard testimonies on the usage of digital dollars to facilitate the U.S’ legacy financial infrastructure.
Just yesterday, America’s Congressional Fintech Task Force examined Federation Accounts and the use of digital dollars in expanding financial reach in the United States.
READ: Naira gains at NAFEX window as CBN squashes early devaluation thoughts
What you need to know about Digital Dollar: The U.S government considered a framework in creating a U.S. central bank digital currency, which would be mined through the blockchain protocol, transferred between users, and recorded in a public ledger.
- The digital dollars would be stored in a distributed database via the internet, on an electronic computer database, within a stored-value card or virtual files.
Cryptocurrency
Betting on Bitcoin is better than investing in PayPal, Google, Facebook, Amazon
MicroStrategy CEO has disclosed why betting with Bitcoin is much better than investing in leading technology brands.
Michael Saylor, CEO of MicroStrategy, in a recent Youtube interview with Chris Jaszczynski of MMCrypto, revealed why betting with Bitcoin is much better than investing in leading technology brands.
Saylor has been very vocal about Bitcoin and its potentials since his company gained exposure late last year. It is worth stating that MicroStrategy was the first public-listed company to purchase Bitcoin as part of its treasury policy.
READ: $100 billion wiped in crypto market amid profit taking
- “I’ve invested in everything. I was an early investor in Apple, Facebook, Amazon, Google, OpenTable, eBay, and PayPal. I made huge amounts of money. I made 10x, 20x my money in those things, and let me tell you, none of them looks as good as this looks to me.”
The basis for such bias is based on the record inflows of funds comprising of “cash, debt, equities, [and] commercial real estate indices,” that are expected to shift at one point into Bitcoin.
The highly revered Chief Executive Officer of America’s leading business intelligence company further added that $300-$400 trillion could flow into the world’s flagship crypto.
This is nearly 60 times the prediction of $600 billion that was given by the world’s most valuable bank, JP Morgan Chase.
READ: Google, Facebook, Twitter stocks drop, investors ponder if big techs have become too powerful
What you should know
- MicroStrategy is listed on an American Stock exchange and has deployed about $250 million into Bitcoin in August and then added $175 million a month after.
- These two investments represented the first and second time a publicly-traded corporation bought Bitcoin for investment purposes.
- MicroStrategy increased its buying pressure subsequently by investing an additional $50 million and even going as far as to raise $650 million in the debt market.
- By the end of 2020, MicroStrategy had confirmed it had spent $1.125 billion to purchase 70,470 bitcoin, implying a cost basis of $15,964 per Bitcoin.
READ: Bitcoin jumpstarts strongly, daily trading volume hits $25 billion
