Bank of England (BoE) Governor, Mark Carney, in a meeting with central bankers worldwide in Wyoming, has predicted that a cryptocurrency backed by several nations could overtake the U.S. dollar as the world reserve currency. As such, it will end the fiat’s hoarding by governments and enhance global trade, reports The Guardian on August 23, 2019.
Global Cryptocurrency to Replace the U.S. Dollar
Per sources close to the matter, Mark Carney is of the opinion that a global digital currency could dethrone the dominating U.S. dollar as the world reserve currency, a scenario that would significantly help to improve global trade and reduce the volatility of capital flows in emerging markets.
The BoE governor says the dollar’s exclusive control of the international money markets and its level of dominance in these markets makes it a barrier to a sustainable recovery.
Also, governments around the world have stockpiled the dollars to protect against the swings in the U.S. economy, which has been on the rise of late.
On the other hand, hoarding the fiat has had an adverse effect on the economy, which is evident in a decade’s long low inflation rate, low-interest rates, and significant increment in the cost of borrowing.
Cryptos to Rescue World Economy
To that effect, Carney firmly believes that a possible solution that will reduce the domineering influence of USD on global trade, dampen its control on global financial conditions, and stimulate the economy is a global blockchain-based digital currency.
A virtual currency of this nature, according to Carney, will be one that is backed by several nations and it will help to unlock the USDs reserved as an insurance policy in times of economic turbulence.
“If the share of trade invoiced in a digital currency were to rise, shocks in the US would have less potent spillovers through exchange rates, and trade would become less synchronized across countries,” he said.
Reportedly, the crypto version of the Chinese currency, renminbi, and Facebook’s Libra, are being cited as the potential currencies that could replace the dollar.
However, the Carney has pointed out that neither of these can become an alternative to the dollar; instead, the use of new technologies to develop a new cryptocurrency could create a worthy rival to the U.S. dollar.
Furthermore, Carney noted that the world is rapidly advancing, thanks to DLT, and more retail payments are taking place online through electronic payments instead of the major use of cash as was the case in the past.
BitMEX CEO responds to Binance’s market maker slip up, offers CZ a “copy/paste” course
Arthur Hayes, the CEO of BitMEX, responded to Changpeng Zhao’s false accusations of a Binance futures market maker attack—satirically. Hayes offered him a “copy/paste” course for 51 percent of his equity, alluding to earlier plagiarism accusations. Zhao replied he’d be happy to buy-in.
CZ’s quick fingers get him in trouble, yet again
The rivalry between two of the biggest crypto derivatives platforms in the world shows no signs of stopping. The CEO of BitMEX, the first exchange to introduce a crypto futures trading platform, Arthur Hayes missed no opportunities to take a jab at their main competitor—Binance.
Changpeng Zhao, the CEO of Binance, has been known for his easygoing attitude towards slip ups and mistakes made by his company. But, this time Zhao’s attitude got the best of him when he hastily accused one of Binance’s clients of attacking its futures platform.
In a Twitter post, Zhao said that the attacker as a “well-known” account that attempted to use the sudden price drop in Binance’s Bitcoin futures to turn a profit and liquidate other clients. However, it quickly turned out that the sudden futures price drop wasn’t due to a malicious attack, but was caused by a “bad parameter” set by the client.
Zhao’s lighthearted way of dealing with situations like these wasn’t well-received by the crypto community, with many criticizing him for posting harsh accusations and lacking a fundamental understanding of how futures trading platforms work.
Hayes uses the opportunity to take a jab at CZ
Joining the slew of those criticizing Zhao was Arthur Hayes, the CEO of Binance’s main competitor BitMEX. He took the opportunity to continue his Twitter back-and-forth with him and criticize him for the incident.
In a tweet, Zhao said that no users were affected by the drop in the future’s price thanks to a supposed invention by Binance. The innovation, he explained, was setting off liquidations based on the exchange’s own index price, and not the futures price.
In response to a user who tweeted that liquidations tied to the index price were a long-time staple at BitMEX, Hayes offered to teach Zhao how to run a crypto derivatives platform.
This isn’t the first time a crypto-influencer used the old “Ctrl+c/Ctrl+v” hotkey hook and jab combo. Ethereum co-founder Vitalik Buterin used the same insult against Justin Sun when evidence surfaced that a significant portion of the TRON whitepaper was plagiarized from other projects.
Zhao seemed to have appreciated the joke, saying he would be happy to attend any class taught by Hayes in exchange for 49 percent of a venture he runs.
The jokes were well received by the crypto community, where (mostly) light-hearted insult-slinging between industry heavyweights is a favorite spectator sport among Crypto Twitter.
Crypto Analyst Outlines Short Term ‘Panic’ Level for Bitcoin (BTC)
The price of Bitcoin continues to move sideways in an extremely narrow range. And amid the low volatility, analysts are trying to gauge which direction BTC may pop next.
Analyst Nick Cote tells his 63,000 followers on Twitter he’s bullish on BTC after its next halving in May of 2020.
He points to BTC’s Bollinger Bands, which uses two lines of standard deviation to measure volatility, as a sign that traders should be cautious.
In the short term, Cote warns the leading cryptocurrency could suffer another significant drop.
“Week long consolidation has broken down to the downside. No need to panic unless $9,750 falls. Above $10,270 and I’ll be thinking this was a fakeout, but below, the course looks to be back towards the liquidity box below. Currently no position for me with volatility this low…
To clarify my position with Bitcoin: I’m a big bull post-having, but I believe there is plenty of room (and opportunity) for a pre-having shakeout to the tune of 30%.”
As for the altcoin market, Cote says Ethereum needs to remain above support levels around $182 to keep pushing forward.
“Ethereum has hit the $195 target and needs to hold above $182 to continue its recent bullish break from the FW, which if held, will push Ethereum to the $225 mark.
A move below will spell disaster and a high probability re-test of the $165 long term
Cryptocurrencies price prediction: Bitcoin, Ethereum & Litecoin – American Wrap
Bitcoin price in the session on Monday is trading with minor gains of some 0.10%.
BTC/USD bulls are trading ever so close to a critical barrier of resistance, as part of a narrowing triangular structure.
A game-changing barrier appears to be at the round psychological $10,500 mark.
Ethereum price is trading in negative territory, with losses of some 0.25% on Monday.
ETH/USD price action via the daily chart view has broken out to the upside from a descending wedge structure.m
A large barrier of resistance was observed at the $180 price mark, the daily break and closure above is attractive for further potential buying momentum.
There is a downtrend on the daily timeframe, and today there has been a break to the upside.
The trendline originated back in June and bounced off another wave high in August.
There has been a base forming with 62.11 the new support low.
On the upside 78.65 is now the main point of resistance and it was used as a big support zone on the 15th of July.