Bitcoin 

Brazil Central Bank Adopts IMF Guidelines for Crypto Classification

The Central Bank of Brazil has moved to classify bought or sold cryptocurrency assets per International Monetary Fund (IMF) guidelines. Brazil’s central bank announced its decision on Aug. 26. With the new classification under IMF standards, traded cryptocurrencies will be classified as non-financial products and as such, will be accounted as goods on the central bank’s balance sheet. A central bank balance sheet, just like a regular bank’s balance sheet, summarizes its financial position, and is made up of assets, equity and liabilities. Since purchasing and selling cryptocurrency involves the…

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Bitcoin 

Supreme Court Gives Central Bank 2 Weeks to Justify Crypto Ban

India’s supreme court has slammed the country’s central bank over its handling of a cryptocurrency business ban and ordered it to address complaints. Judge: RBI has not properly responded to representation In the latest session of an ongoing hearing into the actions of the Reserve Bank of India (RBI) on Aug. 21, the Court ruled officials had not appropriately responded to concerns from the cryptocurrency industry over its actions.  The RBI forbade banks servicing crypto operators such as exchanges in July 2018, effectively ending the ability for such platforms to…

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Bitcoin 

What’s Driving Up Bitcoin Price? Central Banks, Says FT Reporter

The Financial Times’ chief correspondent for international finance has argued that central banks can ironically be credited for igniting Bitcoin’s price. In a column for Nikkei Asian Review on Aug. 21, Henry Sender said that banks’ dovish policies are spurring an increasing recognition of cryptocurrencies as safe-haven assets.   Hedging big macro risks with Bitcoin Analysts anticipate more dovish announcements from the Federal Reserve at this year’s central banking meeting in Jackson Hole, Wyoming, later this week. In July, Fed Chairman Jerome Powell cut interest rates for the first time in…

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Bitcoin 

Buy Gold as Bitcoin Price Rises, Central Banks Cut Rates

Veteran frontier markets investor Mark Mobius suggested that cryptocurrencies will boost the price of gold.  Canadian finance news outlet BNN Bloomberg interviewed Mark Mobius on Aug. 20. The legendary investor believes cryptocurrencies will help the rise of gold. He explained:  “You have all these currencies, new currencies coming into play. […] I call them ‘psycho currencies,’ because it’s a matter of faith whether you believe in Bitcoin or any of the other cyber-currencies. I think with the rise of that, there’s going to be a demand for real, hard assets,…

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Bitcoin 

Can Central Bank Digital Currencies Be Used to Fight Financial Crimes?

Paper money today is a marginal part of the currency in circulation and represents a direct relationship between the end user and the central bank. Its use is, however, unknown to the central bank; in a certain sense, it can therefore be said that like cryptocurrencies, cash can be used for illicit purposes. Central banks could start the process of digitizing paper money and thus create their own digital currency. Such a solution would have the great advantage of combating the shadow economy and illegal activities, and could be a…

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Blockchain 

China’s Digital Currency Is Ready, Central Bank Says

The People’s Bank of China (PBoC) has claimed that its digital currency “can now be said to be ready.” According to PBoC deputy director Mu Changchun, a prototype that adopts blockchain architecture has been successfully developed after five years of research. His announcement, made at the China Finance 40 Forum, was reported by local news site Shanghai Securities News on August 10. Two-tier operating system Mu said issuing a digital currency using a pure blockchain architecture would be difficult to achieve in a country as big as China because retailers…

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Bitcoin 

Central Banks to Hedge Dollar Risks with Bitcoin, Pompliano Predicts

Every central bank will be buying Bitcoin (BTC) to hedge risks to the United States dollar, according to a forecast by major crypto bull Anthony Pompliano. In a tweet on Aug. 1, Pompliano, co-founder of asset manager firm Morgan Creek Digital Assets, noted the recent news that central banks made the largest historical acquisition of gold. As reported by The Financial Times, global central banks purchased a record of $15.7 billion in the first half of 2019 in order to diversify their reserves from the U.S. dollar amid global trade…

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Blockchain 

European Central Bank Policymaker Says Stablecoins Not Cause for Alarm

A European Central Bank (ECB) official has stated that users should be aware of the risks associated with the stablecoins use, but not to be alarmed. As Reuters reported on July 18, member of the ECB’s governing council and president of the Deutsche Bundesbank, Jens Weidmann said that stablecoins — digital currency designed to minimize price volatility by being pegged to another asset — offer users opportunities for prosperity, however users should be vigilant in regards of the associated risks. Weidmann delivered his comments at a news conference at a…

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Blockchain 

Iran Plans to Allow Crypto Mining, Central Bank of Iran Governor Says

Iranian authorities are planning to authorize cryptocurrency mining, as the governor of the Central Bank of Iran (CBI) declared, news agency PressTV reported on July 10. CBI governor Abdol Hemmati reportedly claimed that the Iranian government has approved some parts of an executive law that would authorize mining of cryptocurrencies such as Bitcoin (BTC) in Iran. Hemmati’s claim follows a lengthy back-and-forth on the legal status of cryptocurrencies in Iran. As Hemmati explained, the planned law will require crypto mining in Iran to abide with the price of electricity for…

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Bitcoin 

Turkey Puts Central Bank Digital Currency on New Economic Roadmap

The government of Turkey has included a central bank-issued digital currency in its 2019–2023 economic roadmap published on July 9. As per the 11th Development Plan from the Presidency of the Turkish Republic, “Blockchain-based digital central bank money will be implemented.” In addition to a central bank digital currency, the development plan lists blockchain adoption in the operations of transportation and customs. It further notes that public services and administration can be improved by emerging technologies such as big data, artificial intelligence and blockchain. Turkish Vice President Fuat Oktay presented…

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