While Bitcoin is emerging as the favorite asset of investors, the Bank for International Settlements (BIS) calls for caution. “Investors should be aware that Bitcoin could well collapse completely,” BIS Managing Director Augustin Carstens told the Hoover Institute. The Hoover Institute sees Bitcoin “more as an online community of gamblers who exchange real money for items that exist only in cyberspace.
Augustin Cartsens also issued a critical opinion on Diem, the new name of Facebook’s cryptocurrency project. Even if it is “certainly more credible than Bitcoin,” the private initiatives of stablecoins “cannot serve as a basis for a sound monetary system” and must be regulated and built on the “foundations and trust provided by existing central banks.”
For the BIS, digital currencies must be issued by central banks. To date, 86% of 65 central banks surveyed by the BIS are reported to be experimenting with digital central bank currencies (DCBMs). However, an IMF study shows that 80% of the central banks would not be able to issue digital currencies due to legal obstacles. “It is up to the different jurisdictions to decide whether or not they issue MDBCs. But if they do, issues such as ‘digital dollarization’ and the potential role of MDBCs in improving cross-border payments need to be addressed in multilateral fora,” Carstens said.
Find more details about the future of Bitcoin and why experts in the financial sector have so different opinions about it with the born2INvest mobile app. Our companion app brings you the most important business headlines in the world so you can stay on top of the market.
Coinbase wants to take advantage of soaring prices
In spite of the suspicious tone of the institution, the cryptocurrency sector continues to grow. On Friday, January 29th, Elon Musk sparked euphoria in the market by mentioning Bitcoin on his Twitter account, followed by 44 million subscribers. The price of Bitcoin jumped $8,000 before returning to its initial level of about $33,000.
“I think at this point Bitcoin is a good thing,” Tesla’s boss said in an interview on the Clubhouse application. It “is on the verge of being widely accepted by people in conventional finance,” he added.
For its part, Coinbase, a platform for exchanging bitcoin, announced that it would use a direct listing to go public. As a result, the company will not issue any new shares and existing investors will not be bound by sales restrictions. The date of this transaction has not been specified.
Last month, the company filed a Form S-1 with the Securities and Exchange Commission (SEC) for its proposed initial public offering. “Form S-1 is expected to become effective upon completion of the SEC’s review process, subject to market and other conditions,” Coinbase said.
Coinbase claims 43 million users and $90 billion in assets. This would be the first Wall Street entry of a cryptocurrency platform.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in L’AGEFI, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Invesco: Factor Investing Minimizes ESG Losses
The quantitative factor model is highly appreciated by investors. 66% of investors already consider this approach useful for implementing their...
Desafío Latam Raises US$ 660,000 to Enter Mexico
In its eight years of operation, Desafío Latam exhibits sustained growth figures and metrics that generate impact in the booming...
Dock Financial Acquires a Stake in Compeon – and Wants to Sell to Its Customers
According to Dock Financial and Compeon, the joint offering has already been tested in a pilot phase and will be...
Cardano (ADA) After the Vasil Upgrade – What Has Changed
Vasil for ADA will provide further improvements to the ecosystem this Tuesday (September 27th). That is because, as planned, it...
Corn Demand Needs to Hold to Keep Lower Ending Stocks Estimates in Play
Corn closed lower on Friday and near unchanged for the week as the US Dollar moved sharply higher and as...
Business2 weeks ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 37]
Business5 days ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 38]
Featured2 weeks ago
Fintech Company Yokoy Has Been Chosen as the Startup of the Year
Featured2 weeks ago
Algorand Partners with Bocconi to Establish Algorand Fintech Lab