Staying updated on the ever-changing cryptocurrency market doesn’t have to be as tough as keeping up with the Kardashians. I’ve rounded up the latest set of news to help y’all stay in the loop.
First off, here’s a snapshot of how bitcoin and its buddies have fared in the past seven days as of June, 3:00 am GMT. Are those rebounds in sight or just retracements?
More Coinbase developments
Coinbase is at it again, as the company added another set of developments under its belt. The latest of these is relay platform Paradex, which can allow their customers to trade “hundreds of tokens directly from their wallets.”
The exchange also announced the launch of Coinbase Pro, which levels up from their existing GDAX platform. According to their blog post, this includes new features such as:
- A completely redesigned platform that will make the trading experience easier and more intuitive
- Simplified deposit and withdrawal processes
- Improved charts that will allow customers to easily scroll and access historical data
- A new consolidated portfolio view called “My Wallets” that lets customers easily see an overview of their account orders and balances
For now, GDAX and Coinbase Pro will continue to operate side-by-side until all customers are seamlessly rolled over to the latter by June 29, 2018.
Fed to relax Volcker Rule
Dodd-Frank sound familiar to you? How about “too big to fail”? Have you watched The Big Short at all?
If you answered “no” to all those questions, then lemme give a brief rundown for ya. You see, large high-risk speculative trades by big financial institutions for their own gain were seen to have magnified the repercussions of the housing market crash back in 2007. Because of that, regulators decided to restrict these kinds of activity through the Volcker Rule.
Fast forward to this week, the Federal Reserve deemed that it’s about time to revise this regulation, possibly paving the way for banks to trade for their own profit or have their own stake in hedge funds under a tiered framework.
According to a study by Weiss Ratings, this could push more Americans away from traditional financial institutions into alternatives like cryptocurrencies. Distrust in banks that might be using clients’ hard-earned funds for self-serving speculative bets could lead the public to think that:
Cryptocurrencies do such a fundamentally better job as a safe depository, it’s difficult to envision a world in which this technology does not become a game-changer for money and banking.
South Korea to re-legalize ICOs?
Remember when South Korea decided to ban ICOs last year? Well, it looks like government officials are looking to reverse this move, acknowledging that cryptocurrency might be the “Fourth Industrial Revolution.”
A National Assembly committee has proposed to create a task force dedicated to improving transparency in the industry and establishing guidelines, citing:
“The administration also needs to consider setting up a new committee and building governance systems at its level in a bid to systematically make blockchain policy and efficiently provide industrial support.”
Haterade vs. government support
As with most weeks, cryptocurrencies have seen their fair share of naysayers while also getting some nods from a couple of government agencies.
This week, bitcoin took some hits from remarks by Nobel Prize-winning economist Robert Shiller who said that this particular digital asset might be extinct in a hundred years. In an interview with CNBC, he said:
“Bitcoin won’t look anything like it is today. It will have a different name, if it exists. There will have been many hard forks changing it and changing it. And, it’ll be a matter of dispute whether it exists or not.”
Meanwhile, Ripple CEO Brad Garlinghouse said that bitcoin’s influence over other cryptocurrency prices could end soon as markets become more rational. He even compared bitcoin to now-defunct Napster, citing that other companies that worked with regulators were the ones that lasted.
On the flip side, Russia and Spain appeared to take a more friendly tone towards cryptocurrencies and blockchain.
The Central Bank of Russia released a report that acknowledged that digital assets don’t pose a risk to global financial stability, although its reasoning was that the volume is relatively low for now. The report went on to say that the high price of cryptocurrencies prevents them from being a stable store of value and means of exchange.
The Spanish Congress focused more on the potential developments that could arise from blockchain and cryptocurrencies, releasing draft legislation for these technologies that received unanimous support.
In doing so, lawmakers agreed to promote blockchain as a cost-efficient and disintermediated system for payments and transfers while advocating the need to foster fintech startups.