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Bundesbank Says Central Banks Should Monitor Facebook’s Libra

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  • Bundesbank Says Central Banks Should Monitor Facebook’s Libra

Since Facebook released its whitepaper for Libra cryptocurrency project, central banks, IMF and other global financial experts have demanded more scrutiny and transparency in what they perceived as global game-changer considering Facebook reach.

While International Monetary Fund had said activities of global tech companies should be monitored to curb excessive disruptions to conventional system that might hurt not just job creation but exposed users data to abuse, central banks are saying given Facebook trust issue and recent lawsuits it should not be trusted with such project despite admitting its a unique idea necessary to further bring the world together.

Another top bank in Europe, Bundesbank, on Monday, said Facebook digital currency Libra could have a sustainable and significant effect on the global financial system and central banks.

In the monthly report released on Monday, the bank stated: “So far, important technical, organizational and regulatory questions about the proceedings of the Libra consortium are still open. Considerations of the potential effects are therefore speculative. At the same time, it seems appropriate that supervisory bodies and central banks closely watch and asses the plans. Innovations that increase wealth and reduce transaction costs should be supported. But important goals like monetary and financial stability and payment security must not be compromised.”

This was after French Finance Minister, Bruno Le Maire, said private companies like Facebook shouldn’t “have the possibility to create a sovereign currency.”

While Bundesbank called for caution, the bank seems more supportive than others. However, Facebook continues to face regulatory barriers as it works on perfecting and launching Libra in the first part of 2020.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Cryptocurrency

Cryptocurrency Traders Can Now Trade Stocks on Binance

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Stock Tokens - investorsking.com

Binance, a global cryptocurrency exchange platform, announced it will launch zero-commission, tradable stock tokens on its platform today, 12 April 2021.

The exchange firm said investors can now trade cryptocurrency and traditional stock markets, all from their Binance account.

It explained that each stock token on Binance will represent one share of equity stock, which is fully backed by shares stored in a depository portfolio of underlying securities, in cooperation with investment firm CM-Equity AG and asset tokenization platform Digital Asset AG.

The first stock tokens on the platform will be Tesla Inc, according to a statement released by the management on Monday.

Binance said “The first stock tokens on Binance will be of Tesla Inc., the largest automaker by market capitalization. Tesla stock tokens on Binance will have a minimum trade size of one-hundredth of a stock token, representing the same fraction of a Tesla share. Stock tokens are priced and settled in Binance USD (BUSD), a regulated stablecoin pegged to the U.S. dollar and issued by Paxos Trust Co.”

Advantages of Stock Tokens on Binance

Stock tokens make it easier for cryptocurrency traders using the Binance platform to access highly sought-after assets like stocks.

* Liquidity. Adding stock tokens to Binance makes it possible for investors to trade both crypto and traditional assets, straight from the world’s biggest crypto exchange by trading volume.

* Flexibility. We are making it possible for users to trade fractions of a unit of publicly tradable equities, turning them into more affordable units that have lower barriers of entry.

* Access to Traditional Stock Benefits. Holders of stock tokens qualify for capital returns on the underlying equity, including potential dividends and stock splits, as they would from holding traditional shares.

* Access to our Crypto Financial Suite. Aside from trading benefits, we also offer a wide-ranging suite of crypto financial services that augment your trading experience, from loans and savings products to liquidity pools and token launch platforms.

Binance serves many users around the world and we are very pleased to be able to help them participate in the equity market. Stock tokens demonstrate how we can democratize value transfer more seamlessly, reduce friction and costs to accessibility, without compromising on compliance or security. Through connecting traditional and crypto markets, we are building another technological bridge for a more inclusive financial future,” said Changpeng “CZ” Zhao, CEO of Binance.

During the first quarter of 2021, Binance recorded a 346% growth in users, fueling a 260% growth in total trading volumes. As the total market value of cryptocurrencies shoots past $2 trillion, indicating accelerated crypto adoption, the launch of stock tokens opens up another avenue of growth for both Binance and its users.

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Bitcoin Price Shoots Past $60K, Ether Hits New All-Time High in Early Saturday Trading

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Bitcoin’s price neared its all-time high of $61,712 early Saturday while ether (ETH, -0.26%) set a new all-time high at $2,190.

According to CoinDesk’s Bitcoin price page, the leading cryptocurrency traded above $60,000 for the first time in nearly a month after spending weeks vacillating between $52,000 and the upper $50,000s. Bitcoin pulled back marginally after peaking around $60,900, though it remains above the psychological marker as of press time.

Bitcoin last hit an all-time high in mid-March, according to CoinGecko.

Meanwhile ether, the second-largest cryptocurrency by market cap, came close to $2,200, just days after breaching $2,100 for the first time.

While it’s unclear if there’s a causation, the price action comes just days before leading U.S. exchange Coinbase begins trading on Nasdaq in one of the crypto industry’s most anticipated events. A sign of the maturing market, the listing will likely give Wall Street traders their most accessible bet yet on growth in the space.

Some institutional investors have wasted little time. Friday, Daniel Loeb, CEO of $17 billion hedge fund Third Point revealed he was a hodler in response to a CoinDesk report. He’s hardly alone: institutional funds have flooded the markets and have been deemed at least partly responsible for the 2020-2021 rally.

Bitcoin bulls were further bolstered on Friday by the idea that an exchange-traded fund (ETF) with exposure to the digital asset space might be approved in 2021, after the Securities and Exchange Commission (SEC) confirmed it was reviewing ETF giant WisdomTree’s application.

The regulator previously began reviewing VanEck’s ETF application last month, and another six companies have filed initial registration forms declaring their own efforts to launch a regulated bitcoin (BTC, -0.99%) investment vehicle.

The broader digital asset space has seen tremendous froth over the past few months, with investors and industry participants trading heavily in decentralized finance tools, non-fungible tokens and altcoins like doge, which hit a peak of $0.08 in February, eight times its value a month earlier.

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Cardano’s Coming of Age – Will it Hit Bitcoin and Ethereum?

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Cardano’s recent full decentralization will fuel its appeal and price, better positioning it to take on rivals Bitcoin and Ethereum in the booming cryptocurrency market, predicts the CEO of one of the world’s largest independent financial advisory and fintech organisations.

The bold prediction from deVere Group CEO and founder Nigel Green comes as Cardano (ADA) last week became a fully-fledged community-run network.

Mr Green says: “The price of Cardano has exploded over the last few months – up around 600% since the beginning of the year, recently making it the third largest cryptocurrency by market capitalisation after Bitcoin and Ethereum.

“But now Cardano has come of age by becoming fully decentralized – meaning its parent company has handed control of the blockchain over to the community – we can expect it to attract more investors which will, of course, drive its price on an upward trajectory.”

He continues: “This milestone will help Cardano better position itself to challenge major rivals in the cryptoverse.

“Cardano is likely to be a challenger to Ethereum as not only can it be used as currency, but its blockchain – the tech on which it runs – can also be used to build smart contracts, protocols and decentralised applications. Plus, it is said to be significantly more scalable than Ethereum.”

Mr Green goes on to say: “It will also pose a challenge to the all-mighty Bitcoin.  This is because those who invest in digital assets already or are planning to do so, know that one of the secrets of successful investing is diversification.

“Therefore, these investors will want their cryptocurrencies diversified too and this is ultimately likely to eat into Bitcoin’s market share.”

Earlier this year Cardano (ADA) was added to deVere Crypto, the cryptocurrency exchange app, to join other major digital currencies including Bitcoin, Ethereum, Dash, Bitcoin Cash, XRP and Dogecoin.

At the time, Nigel Green noted: “The addition underscores our commitment to continually reviewing and expanding our cryptocurrency offering in order to give users of the exchange access to the opportunities and rewards of digital currencies.”

The deVere CEO concludes: “This landmark moment in Cardano’s development journey will further galvanise its position as a rising star in the crypto market.

“I wouldn’t be surprised if some celebrity investors soon publicly express their support on social media for Cardano as they have recently done with other cryptocurrencies.”

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