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US Treasury Stance on Stablecoins a ‘Vote of Confidence in Crypto’

The crypto exchange, which has its fingers in the USD Coin and Facebook’s Libra, welcomes regulatory input on stablecoins.

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In brief

  • The Office of the Comptroller of the Currency issued stablecoin guidance this week.
  • Coinbase’s Chief Legal Officer praised the move in a series of tweets today.
  • Banks were given the go-ahead to hold reserves for stablecoin issuers.

The Office of the Comptroller of the Currency (OCC), which is part of the United States Department of the Treasury, issued fresh guidance this week that authorized national banks and federal savings associations to hold reserves for stablecoin issuers. The SEC’s FinHub division chimed in as well.

And leading US-based cryptocurrency exchange Coinbase, part of the Centre Consortium that mints the USD Coin (USDC) stablecoin and a founding member of the Facebook-driven Libra Association, is unsurprisingly pleased with the news. 

Paul Grewal, Coinbase’s Chief Legal Officer, tweeted out a statement in praise of the guidance today, and hopes that it will lead to adoption by banks of the stablecoins themselves.

“The recent news from OCC and SEC FinHub addressing national banks’ authority to hold stablecoin reserves is a welcomed vote of confidence in crypto, providing both clarity and certainty for stablecoin issuers, banks, and consumers alike,” Grewal wrote.

“We’re happy to see regulators embrace innovations like stablecoins and provide much-needed guidance on how they fit within current banking frameworks. We hope this will lay the foundation to national banks being able to custody and transact in the stablecoins themselves,” he added.

“As founding members in the Centre Consortium (USDC) and Libra, we welcome engagement from regulators like OCC and look forward to more to come.”

Regulation might spook some crypto die-hards, but given the potentially mainstream appeal of stablecoins, it makes sense that Coinbase sees it as a positive. Not only does it give banks the comfort and peace of mind to handle stablecoins, but the OCC’s move could also be seen as legitimizing the whole concept of stablecoins.

Stablecoins are digital assets backed by another currency, typically fiat currency—and in the case of USD Coin, Tether, and Binance’s BUSD, for example, it’s the US dollar. That keeps the price relatively steady, and each digital dollar is backed in reserve by the real thing. According to Coinbase, there are now 2.5 billion USD Coins in circulation, with a 24-hour volume of $475 million.

In general, the crypto market has seen a massive uptick in stablecoin use throughout 2020. For instance, Tether, the market’s first and still most popular stablecoin, grew its market cap by more than $10 billion this year. USDC, meanwhile, has grown its supply by 250% in 2020, partly because of its use within the emerging decentralized finance (DeFi) sector, which has grown by $8 billion since June.

The OCC’s guidance on stablecoins this week follows previous guidance in July, which gave banks the go-ahead to take custody of crypto assets for customers and develop banking products around cryptocurrency. That move was also widely hailed by the industry as a positive step towards mainstream adoption of crypto.

Blockchain

The central bank of New Zealand has no plans for CBDC.

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The central bank of New Zealand has no plans for CBDC. – Coinnounce




























A senior executive at New Zealand’s central bank has said they have no imminent plans to launch a central bank digital currency in the country.

The assistant governor of the Reserve Bank of New Zealand, Christian Hawkesby, said in his speech earlier this week that the country was not ready to consider developing and launching a CBDC of its own. In his speech, the assistant governor said that the bank remains open-minded about the possibility in the future and will continue to monitor developments in payments and other emerging technologies. Central banks across countries are currently experimenting with CBDCs. 

“We must take a new and holistic approach to issue a digital currency.”

“To issue a digital currency that meets the needs of the public, we must take a new and holistic approach. We acknowledge there is much work to be done. We do not yet have all the answers, nor do we expect to find them alone. However, by working together with New Zealand, we want to be ‘on the money’ now and in the future,” Christian Hawkesby said in his speech. Speaking to the benefits of cash and existing payment systems, the assistant governor said these “have so far been not well replicated by electronic money.” 

Central banks across countries continue to explore CBDCs. 

As reported earlier, the Philippines’ central bank plans to look into how to improve the country’s existing payment system and draw upon other central banks’ CBDC research worldwide. The People’s Bank of China (PBoC) recently finished its national digital currency’s biggest trial and is now planning to issue it to the general public soon. Central banks of many countries are actively working on digital currencies. As reported earlier, Binance CEO Changpeng Zhao said that CBDCs could threaten bitcoin in the future. US Federal bank has also revealed that they are exploring the option of having a national digital currency.

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Jai Pratap

Jai Pratap

A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.


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Source: https://coinnounce.com/the-central-bank-of-new-zealand-has-no-plans-for-cbdc/

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FinCEN and Federal Reserve tighten the screw on crypto transactions

FinCEN mandates crypto exchange firm to gather more user information  Transactions worth over $250 to be scrutinized  The United States Financial Crimes Enforcement Network (FinCEN) and Federal Reserves published a new notice on Friday. They stated they want to lessen the threshold to $250 for international transactions. These new regulations require that all financial organizations […]

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  • FinCEN mandates crypto exchange firm to gather more user information 
  • Transactions worth over $250 to be scrutinized 

The United States Financial Crimes Enforcement Network (FinCEN) and Federal Reserves published a new notice on Friday. They stated they want to lessen the threshold to $250 for international transactions.

These new regulations require that all financial organizations share their clients’ information and all of the transactions in crypto that are above $250, mostly for transactions that begin or end in the United States.

This Financial Action Task Force (FATF) proposed a new Travel Rule, mandating the financial institution to exchange such data with the federal agencies even for small transactions.

FinCEN and its sister agency, Federal Reserve, would require the institution to share information like the name and address of whoever initiates the transaction, the amount on the transaction, and the date of execution of the payment. Other required information from the financial institution is any instructions attached to the payment order and the receivers’ bank. 

According to this new rule, FINCEN ensures that the crypto exchange companies are storing quite a lot of information about their users on their database.

FinCEN looks to enforce new regulations. 

The FATF is looking at the possibility of enforcing these new guidelines, or a similar one, in countries with high cases of controversy in their dealings with cryptocurrency.

This new mandate stands at the extreme to what the white paper of Bitcoin had proposed. Bitcoin white paper had looked to keep users private and away from the limelight, but this new regulation would be forcing the exchange companies to gather information about their users.

Though presently, the guidelines are only still being proposed, FINCEN and its sister agencies are consulting the public and requesting inputs from all of those who might be affected by this new rule. The consultation would be open for the next 30 days.

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LINK Bulls Activate With 12% Daily Increase But Can They Break $12.5 Resistance? (Chainlink Price Analysis)

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LINK/USD – Bulls Form Ascending Price Channel

Key Support Levels: $11.50, $11, $10.50.
Key Resistance Levels: $12.33, $13, $13.50.

LINK bounced higher from the support at $8.77 at the start of October. From there, it started to form an ascending price channel. The coin recently bounced higher from the lower boundary of this price channel as it reversed from the $9.80 support on Wednesday.

Yesterday, LINK pushed as high as $12.33, where it met resistance at a bearish .5 Fib Retracement combined with the channel’s upper boundary. LINK is now trading at $12 as it faces the $12.33 resistance.

linkusd-oct23
LINK/USD Daily Chart. Source: TradingView

LINK-USD Short Term Price Prediction

If the buyers can break the resistance at $12.33 and push above the channel’s upper boundary, the first level of resistance lies at $13. Above this, resistance is expected at $13.50 (bearish .618 Fib), $14, $14.72, and $15.20 (bearish .786 Fib).

On the other side, the first level of support lies at $11.50. Beneath this, additional support lies at $11, $10.50, $10, and $9.80 (lower boundary of price channel).

There is some bearish divergence that could potentially be forming between RSI and the price. It will be important to watch this divergence to see if it plays out over the next few days as it could potentially send LINK toward the lower boundary of the price channel again.

LINK/BTC – Buyers Battling To Reclaim 0.001 BTC.

Key Support Levels: 0.0009 BTC, 0.000868 BTC, 0.00082 BTC..
Key Resistance Levels: 0.00094 BTC, 0.001 BTC, 0.00108 BTC.

Against Bitcoin, LINK is currently trading at the 0.0094 BTC resistance level. The buyers attempted to break above 0.001 BTC earlier in the month but failed miserably. A bearish .382 Fib Retracement level provides the resistance here, and it caused LINK to roll over until support was found at 0.00082 BTC a few days ago.

Since reaching this support, LINK has rebounded higher and is now facing resistance at 0.00094 BTC before it can make another attempt at 0.001 BTC.

linkbtc-oct23
LINK/BTC Daily Chart. Source: TradingView

LINK-BTC Short Term Price Prediction

Looking ahead, once the buyers break 0.00094 BTC, the first level of resistance lies at 0.001 BTC (bearish .382 Fib). This is followed by resistance at 0.00108 BTC (bearish .5 Fib), 0.00112 BTC, and 0.00116 BTC (bearish .618 Fib).

On the other side, the first level of support lies at 0.0009 BTC. This is followed by added support at 0.000868 BTC, the rising trend line, 0.0008 BTC, and 0.00075 BTC (downside 1.414 Fib extension – purple).

The Stocahstic RSI recently produced a bullish crossover signal that allowed LINk to rebound higher.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/link-bulls-activate-with-12-daily-increase-but-can-they-break-12-5-resistance-chainlink-price-analysis/

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