Cryptocurrencies like Bitcoin have not reduced financial risks in emerging economies, but instead, have amplified them, according to a study conducted by central banks and published by The Bank for International Settlements (BIS).
Cryptocurrencies pegged to the dollar are posing a potential threat to Visa and PayPal, highlighting the potential in digital payments, although this trend is not yet reflected in the stock market.
A surge in global interest in acquiring Bitcoin has been observed, with Nigeria leading the way, as investors anticipate a potential rally driven by upcoming events in the crypto sphere and the approval possibility of the inaugural spot Bitcoin exchange-traded fund (ETF) by the SEC. Bitcoin's evolving role as a possible store of value is reflected in low exchange-held supplies, while technical analysis suggests a bearish sentiment but a potential reach of $26,500 and the $30,000 milestone.
BlackRock's entry into the crypto space with its application for a Bitcoin exchange-traded fund (ETF) marks a significant turning point that dispels the notion of cryptocurrencies as a passing trend, signaling the growing institutional interest in Bitcoin and the crypto industry.
Bitcoin and crypto could experience significant growth in the next few months, with September expected to be a particularly eventful period, including the potential impact of U.S. bitcoin ETF filings and China declaring crypto as "legal property and protected by law."
A joint policy paper by the IMF and FSB advises against blanket bans on cryptocurrency and instead recommends targeted restrictions and sound monetary policy to mitigate risks, highlighting that global stablecoins pose a greater risk to financial stability than other cryptocurrencies.
A policy paper prepared under India's G20 Presidency recommends licensing crypto service providers and implementing anti-money laundering standards in the sector, while cautioning against an outright ban on cryptocurrencies due to their borderless nature. The paper also addresses concerns about stablecoins and their potential impact on financial stability.
The International Monetary Fund (IMF) and World Bank have pledged to increase their cooperation in addressing climate change, debt vulnerabilities, and digital transitions, stating that they are well-positioned to contribute to tackling these challenges.
India will evaluate the recommendations made by the IMF and the FSB on regulating crypto assets before deciding its stance, according to Ajay Seth, the secretary of the department of economic affairs.
Incoming deputy governor of the Bank of England, Sarah Breeden, stated that while crypto currently poses minimal risk to financial stability, it could present a greater danger in the future, emphasizing the lack of value in unbacked cryptocurrencies and the risks highlighted by recent events such as the collapse of Terra and U.S. banks Silvergate and Signature. She also expressed support for a central bank digital currency and the potential benefits of blockchain technology.
Bitcoin's vulnerability to contracting global liquidity is highlighted by Bloomberg Intelligence's crypto market analyst Jamie Coutts, who suggests that the cryptocurrency will only turn bullish when global liquidity levels expand, warning that it is unlikely to rise until liquidity reverses and anticipating that institutional investors will only show significant demand for digital assets once liquidity rises.
The International Monetary Fund (IMF) has expressed concerns about the rampant smuggling of petroleum products in Pakistan, which costs the country Rs10 billion annually and is being used as a key source of financing for terrorists, calling for increased vigilance and security measures at the borders.
Crypto analyst Will Clemente suggests that the US economy's need to issue more dollars to service its debt will inevitably lead to significant currency debasement, making Bitcoin the most promising asset for investors looking to protect their wealth. With the growing digital trend and a wave of Bitcoin adoption, Clemente believes that alternative monetary systems will become increasingly favorable.
The Federal Reserve's decision to maintain interest rates and raise its long-term forecast for the Federal Funds Rate surprised many market participants, causing a slight pullback in the stock and cryptocurrency markets while highlighting the need for investors to focus on the actual health and viability of companies and the utility of the crypto ecosystem. Additionally, the article speculates on the impact of the U.S. Securities and Exchange Commission's ruling on Bitcoin spot ETF applications and the potential for cryptocurrency to become a mainstream alternative investment.
Brazil's central bank has observed a significant increase in crypto adoption in the country, leading to plans to tighten digital asset regulations, as imports of crypto rose by 44.2% from January to August 2023 compared to the previous year.
The International Monetary Fund (IMF) expects global economy to expand by 3% in 2023, but warns that growth remains weak and risks are tilted to the downside, with weaker recoveries expected in Europe and China, while inflation is projected to remain high and commodity prices pose a serious risk.
Around 5% of global banks are at risk if central bank interest rates remain high, while 30% would be vulnerable to low growth and high inflation, according to the International Monetary Fund (IMF)'s Global Financial Stability Report. The IMF emphasized the need for stronger bank supervision and increased capital levels to enhance resilience.
The International Monetary Fund (IMF) has described its engagement with El Salvador as "very productive," but no agreement has been reached yet for a new financing program, according to an IMF official. Discussions are ongoing, and important structural measures are still needed before an agreement can be reached. The size of the program will be determined towards the end of negotiations based on the balance of payments gap. The IMF is not supportive of El Salvador's adoption of bitcoin as legal tender and it is unclear if this issue is being discussed in the negotiations. El Salvador has an opportunity to implement necessary reforms supported by strong governance and popular support from President Nayib Bukele.
El Salvador's security policies, economic recovery, bond strength, and tourism boom are attributed to the country's adoption of bitcoin as legal tender, according to Vice-president Felix Ulloa, who also highlights the interest from Wall Street investors and collaborations with major companies like Google.
Prominent Bitcoin developers and market analysts emphasize the strong value proposition of BTC in comparison to other cryptocurrencies, citing its resilience and potential as a long-term store of value and means of wealth protection, particularly in the face of economic uncertainties and hyperinflation in various countries.
