Bitcoin in relation to real estate, banks and countries. Impact of discussions on the crypto market
Today we have interesting news. According to the forecast, the bitcoin rate is warming in Asian and southern countries. Let's also talk about accelerating the recognition of cryptocurrencies among the oldest banks in the United States and the Central Bank of Russia. How are Ethereum, Cardano, and RXP doing in the bear market?
Tonga, India, and El Salvador plan to legalize Bitcoin as an asset class or legal tender within their jurisdictions. El Salvador has the most serious intentions of anyone on this list
According to President Naib Bukele, El Salvador is drafting legislation to recognize bitcoin as legal tender. The bill still needs to be considered by the government, but the populist political party led by Bukele controls it and the issue is almost clear.
Thus, El Salvador will become the first country in the world with official bitcoin. The country will consider it as a world currency. El Salvador's budget will have a partial supply of bitcoin.
Tonga is doing similar things. Tonga is a small state in the Pacific Ocean with a population of 105,000. They plan to legalize Bitcoin and make it an official means of payment. On June 9, a Tongan MP announced his desire to buy bitcoin with $ 750 million in national reserves. Remittances to Tonga account for 37% of the country's GDP.
Similar news is related to India. The government of this country has abandoned the negative about cryptocurrencies. Now they plan to recognize bitcoin officially before the end of this year.
Representatives of the Indian crypto industry have already begun negotiations with India's Ministry of Finance. A new set of rules needs to be created, and a group of experts is studying this issue in detail. The new bill may be introduced during the rainy season session (June to September).
From the oldest US banks to the Central Bank of the Russian Federation. About the process of recognition and acceptance of cryptocurrencies among banks
State Street is one of the oldest active banks in the United States. Today, they form a cryptocurrency trading division to get the benefits from the current trend. This is a huge bank with more than $ 40 trillion of actives, and they make a special request to financial companies. The essence of the request is that they help clients trade cryptocurrencies and contribute to the development of industry rules in cooperation with regulators.
The head of the bank stressed that the digital capabilities of State Street Digital go beyond "just trading cryptocurrencies." They intend to use blockchain technologies to improve the efficiency of financial transactions.
Nadine Chakar is the head of State Street Digital. She recently said that the bank is looking to catch up with customers who have increased their cryptocurrency transactions by 300% in the past few months. According to her, the current period is very important. A large flow of donations from foundations comes in cryptocurrency. It is impossible to ignore it. The bank is looking for a solution.
The central banks of France and Switzerland intend to test cross-border transfers with cryptocurrencies. The pilot will be attended by banks UBS, Credit Suisse, and Natixis.
The Swiss National Bank and Banque de France will explore the possibility of cross-border settlement with two wholesale central bank digital currencies known as CBDCs on the blockchain. The bank attracts a private sector consortium led by Accenture, including Credit Suisse, Natixis, R3, SIX SDX digital exchange, and UBS.
Banque de France MP Sylvie Goulard strongly believes in CBDC benefits due to ensuring the safety and efficiency of financial transactions. The G20 has pledged to improve the quality of cross-border payments to discolor the CBDC.
The central banks of France and Switzerland are more cautious at the moment. At the same time, Sweden is already developing an e-krona for the general public, and the central bank of China is testing the e-yuan with might and main.
The Central Bank of the Russian Federation is officially interested to integrate the digital ruble with the yuan. The Bank of Russia is preparing a platform for the digital ruble. According to the statement, it will keep in touch with similar platforms in other countries. First of all, rapid integration with the digital yuan is expected after the launch of the Russian digital currency. "The digital ruble and the digital yuan also implies integration. We very much hope that our Chinese colleagues, as soon as we have this platform ready, will do it with us quickly enough," said Olga Skorobogatova, First Deputy Chairman of the Central Bank.
Ethereum and XRP strengthen positions amid a deep bear market
Ethereum and XRP are looking better and better as investors abandoned bitcoin funds over the past month. The CoinShares report shows a $ 141 million purchase in 7 days in late May / early June. And this is the highest amount in a week in history.
Over the past two weeks, investors have been actively interested in altcoin funds, including Ether, XRP, and Cardano. To date, they have invested over $ 33 million in funds focused on Ether, the proprietary Ethereum blockchain cryptocurrency. And the inflow to XRP funds amounted to $ 7 million, which is a record since April 2021. According to CoinShares, the inflow of Cardano and multi-asset products amounted to $ 4.5 million and $ 2.7 million, respectively.
Overall, digital asset funds have lost more than $ 94 million in the past two weeks.
Conclusion. How does all this affect the activity of investors?
Last week was marked by tons of news. The crypto market has been consistently bearish, but high interest in Bitcoin has persisted. For example, DJ David Guetta has put up for sale his luxury apartment in Miami Beach with the option to pay in Bitcoin and Ethereum. 2 weeks ago, Arte Surfside sold a penthouse in Miami for $ 22.5 million with full cryptocurrency payment.
News and statements of major politicians and public figures steadily excite the cryptocurrency market. It is not yet clear how the events of the past 2 weeks will affect the market. It is only obvious that the current bear market for cryptocurrencies will not be their end, but will only remain in history as one of its stages.
WARNING: Virtual currencies are highly volatile and novel instruments traded on unregulated exchanges with minimal or no regulatory supervision. Investing in virtual currencies is highly risky, and you can rapidly lose your entire invested capital. Before buying virtual currencies, you should consider whether you understand how the market in virtual currencies works and whether you can afford to take the high risk of losing your money.