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Cryptocurrency

U.S Government to unveil Crypto nemesis before end of July

Leading financial brands and payments processors are anxiously watching the Fed’s push in creating an electronic alternative to cash.

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Credible reports reveal the Bank of Boston and Massachusetts Institute of Technology are jointly working on delivering a Central Bank Digital Currency prototypes before the end of July.

Such digital assets could fundamentally change US citizens’ use of capital, leading some financial brands to lobby the Fed and Congress to pause its creation.

Leading financial brands and payments processors are anxiously watching the Fed’s push in creating an electronic alternative to cash Americans carry in their wallets or what some people call the Fedcoin.

READ: SEC reacts to CBN’s ban on cryptocurrency transactions

“Everyone is afraid that you could disrupt all the incumbent players with a whole new form of payment,” Michael Del Grosso an analyst for Compass Point Research & Trading LLC said in a note to Bloomberg.

James Cunha who heads the CBDC project revealed that the Boston Fed and MIT hope to unveil some of their work in Q3 2021 including at least two prototype software platforms that could move, store and settle transactions made with digital dollars.

“Rushing anything of this potential magnitude could introduce unintended consequences that threaten the stability of the banking system without contributing meaningfully to economic inclusion,” said Steve Kenneally, senior vice president of payments at the American Bankers Association.

READ: Computers might steal Satoshi Nakamoto’s Bitcoin fortune

Unlike Bitcoin, Ethereum, Tether, the new Cryptos would be issued by central banks as an alternative to paper bills. Cash wouldn’t go away, but might likely plunge to record levels.

SSKOHN

The world’s largest economy got an extra push in February when Treasury Secretary Janet Yellen said such a project could help its citizens who don’t have access to the banking system.

Jerome Powell, the U.S Fed Chief however revealed why stablecoins were an improvement over traditional crypto. He said stablecoin tokens are much better than other cryptos because they are tied to specific fiat currencies.

READ: $119 billion valued investment bank, Goldman Sachs starts Bitcoin trading

“To an extent, a stable coin is backed by sovereign currencies of leading nations, that is certainly an improvement over crypto assets, I would say,” Powell revealed. “But nonetheless, where does the credibility come from? It comes from that sovereign currency that is the backstop.”

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The U.S Fed is taking note of the rising usage of stablecoins as powerful economies such as China, seem to trust the world’s fastest-growing stablecoin (Tether) a lot more in recent times, preferring to use it to meet most money transfer needs.

Approximately $50 billion cryptos had left China in 2019, showing a surge in how investors are dodging rules that limit how much capital they’re allowed to transfer from China.

“Stablecoins like Tether are particularly useful for capital flight, as their USD-pegged value means users selling off large amounts in exchange for their fiat currency of choice can rest assured that it’s unlikely to lose its value as they seek a buyer,” Chainalysis said in the report.

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Message Olumide on Twitter @tokunboadesina. He is a Member of the Chartered Financial Analyst Society.

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    Cryptocurrency

    Nigerian stocks that outperformed Bitcoin, Ethereum and Cardano in April

    According to data tracked on the NSE, the shares of Japaul Gold and Ventures Plc, Meyer Plc and University Press Plc delivered better returns than Bitcoin, Cardano, Ethereum.

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    Crypto

    The recent crypto-mania has presented investors who are nervous about the stock market with key opportunities to capitalize on, through alternative investments in cryptocurrencies.

    The attendant effect of this led to the move which saw the total market capitalization of Bitcoin, Ethereum, Litecoin, XRP and other crypto assets surge above the $400 billion mark in Q4 2020 to more than $2 trillion in recent times – the total market capitalization of all cryptocurrencies are valued at about $1.74 trillion as of the time of drafting this report.

    Despite the gains Bitcoin, Ethereum and Cardano delivered to their holders, the market performance of these digital assets since the beginning of April has been comparatively unimpressive. Of the three cryptocurrencies, only Ethereum maintains month to date gains in excess of 15%, while the month to date losses in others stand in excess of 12%.

    READ: Heavy sell-off in Guinness shares leads to N6.9 billion market value loss in a single day

    The performance of these digital assets so far in April

    Data tracked on Binance, a cryptocurrency exchange that provides a platform for trading various cryptocurrencies revealed that Ethereum’s month to date gains in the month of April is put at about 15% while the month-to-date loss of Bitcoin and Cardano is put at about 16% and 12% respectively.

    Stocks on NSE delivered decent returns in the month of April, outperforming some cryptos. Some stocks on the Nigerian Stock Exchange have delivered impressive returns for their holders in the month of April, despite the recent lacklustre state of key shares listed on the exchange.

    According to data tracked on the Nigerian Stock Exchange, the shares of the following companies have delivered better returns than Bitcoin, Cardano, Ethereum and some other cryptocurrencies so far in this month.

    Hotflex

    READ: America’s oldest bank set to accept Bitcoin

    SSKOHN

    Japaul Gold and Ventures Plc

    (JAPAULGOLD), MtD gains: 46.83%

    The rebranded and restructured mining company with a key focus on gold and other solid minerals exploration is the best-performing stock on NSE this month with a month to date gain of about 46.83%.

    Despite the fact that the stock is currently trading slightly below its open price of N0.62 per share for the year, it has risen from a YTD low of N0.41 to the current N0.60 per share price in recent times. Thus returning a gain of 46.8% for its holders.


    Meyer Plc (MEYER)

    MtD gains: 29.16%

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    The shares of the key player in the paint and decorative industry increased from N0.41 per share at the open of trade this month, to N0.53 per share as of the open of market this morning, to print a month to date gain of 29.16%.

    The stock of the paint manufacturer is presently trading about 6% higher than its open price of N0.50 per share for the month of April.

    READ: Bitcoin investment tips for 2021


    University Press Plc (UPL)

    MtD gains: 19.77%

    The shares of one of Nigeria’s foremost publishers of educational and general reading materials, University Press Plc have increased from N1.07 per share at the close of trade on the 31st of March, to N1.28 per share at the open of trade on the Nigerian Stock Exchange today.

    The recent surge in the shares of the company was triggered by buying interest on the floor of the exchange and this renewed interest in the shares of the publisher has seen its shares return an impressive 19.77% month to date gains to investors since the start of this month.

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    What you should know

    • The Nigerian Stock Exchange All-share Index “NGX ASI” is on course to deliver its first weekly gains after weeks of consistent depreciation in the market index and capitalization.
    • This decent performance can be linked to the renewed buying interest in the shares of some key companies with impressive fundamentals as Q1 2021 financial results start to trickle in.

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    Cryptocurrency

    Billions of dollars lost in Crypto market, as over 500,000 investors get wrecked

    The crypto market suffered heavy losses in the early hours of Friday with many traders liquidated as the flagship crypto dipped below the $50,000 price levels.

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    The crypto market suffered heavy losses in the early hours of Friday with many traders liquidated as the flagship crypto dipped below the $50,000 price levels.

    In the cryptoverse hundreds of billions of dollars were virtually wiped off in value as the global crypto market lost about $300 billion, trading at $1.77 trillion, a 12.29% decrease over the last day.

    As traders panicked, the world’s most popular crypto rout deepened, dropping below the $50,000 level to $48,400, its lowest levels in about seven weeks. Ethereum, the leading altcoin plunged as much as 10% before steadying at about 7% to trade at $2,240.65 on the FTX exchange.

    READ: Crypto Armageddon: Over $200 billion wiped off in the Crypto market 

    For the day about 582,578 crypto investors were liquidated. The largest single liquidation order happened on Huobi-BTC valued at $11.28 million.

    For Bitcoin, this is the biggest percentage loss since early January.

    The spiral fall in play at the flagship crypto market pushed its market value below $1 trillion or 51.45% of the total cryptocurrency market value. At its highest, Bitcoin’s market cap was $1,184 trillion.

    Amid the recent price correction, crypto pundits argue that the ever-changing crypto market was still in a long-term bull market, though in the near term, a market correction was long overdue since the market is over-heated among retail investors.

    SSKOHN

    READ: Why Bitcoin might likely hit $100,000 soon

    Other Crypto assets were also experiencing sharp sells with XRP, Polkadot, Cardano, BNB, EOS all suffering significant losses.

    Tax concerns may be weighing hard on the crypto- verse with reports showing U.S. investors in the Crypto market already face a capital gains tax if they sell the Crypto after holding it for more than a year.

    It’s fair to note that the crypto market is very volatile and some crypto experts are pointing out that it could be in a bubble considering that Bitcoin and Ethereum have recorded gains of over 700% respectively within a very short span.

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