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Legally speaking, is digital money really money?

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Close to 80 percent of the world’s central banks are either not allowed to issue a digital currency under their existing laws, or the legal framework is not clear, according to research conducted by the International Monetary Fund.

The IMF paper reviewed the central bank laws of 174 IMF members, and found out that only about 40 are legally allowed to issue digital currencies. At 104 central banks, the law only authorises the issuance of banknotes and coins.

“Any money issuance is a form of debt for the central bank, so it must have a solid basis to avoid legal, financial and reputational risks for the institutions,” states the paper. “Ultimately, it is about ensuring that a significant and potentially contentious innovation is in line with a central bank’s mandate. Otherwise, the door is opened to potential political and legal challenges.”

To legally qualify as currency, a means of payment must be considered as such by the country’s laws and be denominated in its official monetary unit. Legal tender status is usually only given to means of payment that can be easily received and used by the majority of the population.

“To use digital currencies, digital infrastructure — laptops, smartphones, connectivity — must first be in place,” notes the paper. “But governments cannot impose on their citizens to have it, so granting legal tender status to a central bank digital instrument might be challenging. Without the legal tender designation, achieving full currency status could be equally challenging.”

An important design feature is whether the digital currency is to be used only at the wholesale level, by financial institutions, or could be accessible to the general public. Allowing private citizens’ accounts, as in retail banking, would be a tectonic shift to how central banks are organized, states the IMF, and would require significant legal changes. Only 10 central banks in the sample would currently be allowed to do so.

“The creation of central bank digital currencies will also raise legal issues in many other areas, including tax, property, contracts, and insolvency laws; payments systems; privacy and data protection; most fundamentally, preventing money laundering and terrorism financing,” the paper concludes. “If they are to be the next milestone in the evolution of money, central bank digital currencies need robust legal foundations that ensure smooth integration to the financial system, credibility and broad acceptance by countries’ citizens and economic agents.”

Source: https://www.finextra.com/newsarticle/37325/legally-speaking-is-digital-money-really-money?utm_medium=rssfinextra&utm_source=finextrafeed

Crowdfunding

Australia Is Home to At Least 733 Active Fintech Firms, Up from 629 in September 2019: Report

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Australia is currently home to at least 733 active Fintech firms, up considerably from 629 back in September 2019, according to the KPMG Fintech Landscape 2020 map. This represents an increase of 104 firms that joined the nation’s financial technology industry between September 2019 and… Read More

The post Australia Is Home to At Least 733 Active Fintech Firms, Up from 629 in September 2019: Report appeared first on Crowdfund Insider.

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Source: https://www.crowdfundinsider.com/2021/03/172737-australia-is-home-to-at-least-733-active-fintech-firms-up-from-629-in-september-2019-report/

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Blockchain

Bitcoin (BTC) Price Prediction: BTC/USD Hits $50,000 High and Retraces, May Find Support above $47,000 High

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Bitcoin (BTC) Price Prediction – March 2, 2021
Today, Bitcoin price has traded and reached the psychological price level of $50,000. However, after testing the resistance zone twice, the king coin was resisted. BTC price has retraced to $47,400 low. Bullish signals are indicating a possible upward move of the coin.

Resistance Levels: $58,000, $59,000, $60,000
Support Levels: $40,000, $39,000, $38,000

BTC/USD – Daily Chart

Before the upward move to the recent high at the $50,000 psychological price level, Bitcoin has been in a downward correction.BTC price was earlier confined and was fluctuating between $44,000 and $48,000. Sellers attempted to break the $44,000 support twice before the BTC price rebounded above the support level and resumed upward. As Bitcoin hit the $50,000 high and retraced, there is the tendency of a possible upward move of the coin. If the bulls break the $50,000 high, the market will rise to retest the $52,000 resistance. The bears may likely mount a stiff resistance at this level. Nonetheless, if the bulls can clear the $52,000 resistance zone, then the BTC price will rise to retest the $58,000 overhead resistance. In the meantime, buyers are still struggling to break above the $50.000 high.

Crypto Users Can Buy Hyundai with Bitcoin, Not Just a Lambo
Crypto holders in North America are privilege to purchase their next vehicle with BTC. The auto dealer is located in Quebec and Florida, and the company accepts digital asset payments in its daily operations. According to reports, over 500,000 vehicles have been sold by the company for the past 25 years. The company maintains a warehouse in Miami that has a stock of over 1,000 cars. The company sells a wide variety of used cars, from Hyundais to Lamborghinis. Crypto users can use their funds to buy practical cars in addition to luxury vehicles. The company claims to have the largest inventory of vehicles in Canada. In terms of accepting crypto payments, the dealership said: “We’re pleased today to be at the forefront of technology, giving our customers another payment option. We also believe it will be advantageous to keep some of our assets in cryptocurrency.”

BTC/USD – 4 Hour Chart

Meanwhile, buyers have been able to push the BTC price to $50,000 high. In the same vein, the Fibonacci tool has indicated an upward movement of the coin after a retracement. On March 1 uptrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement implies that the BTC price will rise and reach level 1.272 Fibonacci extension or the high of $52,029.50. The BTC price will reverse after attaining the recent high.

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Source: https://insidebitcoins.com/news/bitcoin-btc-price-prediction-btc-usd-hits-50000-high-and-retraces-may-find-support-above-47000-high

The post Bitcoin (BTC) Price Prediction: BTC/USD Hits $50,000 High and Retraces, May Find Support above $47,000 High first appeared on CoinGenius Hosts Virtual Crypto Event. Checkout PrimeXBT
Source: https://coingenius.news/bitcoin-btc-price-prediction-btc-usd-hits-50000-high-and-retraces-may-find-support-above-47000-high/

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Blockchain

SEC Chair Nominee Gary Gensler: Crypto a ‘Catalyst for Change’

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In brief

  • Gary Gensler, President Biden’s pick for SEC Chair, testified before congress today as part of his confirmation hearing.
  • And Gensler had some positive things to say about crypto.

Gary Gensler—President Biden’s nominee for chairman of the SEC—said today in his Senate confirmation hearing that cryptocurrencies “have been a catalyst for change.”

“Bitcoin and other cryptocurrencies have brought new thinking to payments and financial inclusion, but they’ve also raised new issues of investor protection that we still need to attend to,” Gensler told Senator Mike Rounds. He went on to say that, if confirmed, he’d work to “both promote the new innovation, but also, at the core, ensure for investor protection.”

Gensler, who spent nearly 20 years at Goldman Sachs before pivoting to public sector work, was chairman of the Commodity Futures Trading Commission during the Obama administration. He’s also a professor at MIT, where he teaches a course on blockchain tech and cryptocurrencies.

The SEC has played an important role in regulating cryptocurrencies over the past decade. While it’s been the commission’s view that Bitcoin isn’t a security, and so isn’t regulated by the SEC, other coins (like XRP) have faced legal action for that very reason. 

Gensler said in 2018 that he thought XRP was a security; late last year, the SEC took legal action against the coin’s issuer, Ripple Labs, alleging the company knew XRP was an unregulated security all along.

I believe financial technology can be a powerful force for good,” said Gensler in his opening statement, “but only if we continue to harness the core values of the SEC in service of investors, issuers, and the public.”

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Source: https://decrypt.co/59961/gary-gensler-senate-hearing-crypto

The post SEC Chair Nominee Gary Gensler: Crypto a ‘Catalyst for Change’ first appeared on CoinGenius Hosts Virtual Crypto Event. Checkout PrimeXBT
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Source: https://coingenius.news/sec-chair-nominee-gary-gensler-crypto-a-catalyst-for-change/

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Fintech

VC-backed Klarna strikes mammoth $31bn valuation to become highest-valued private fintech company in Europe

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