Another FinTech Company to Invest in Bitcoin 0 422

The Crypto-Blockchain Firms to Gain Investment Boost in Switzerland and South Korea

The year 2020 has proven to be the best and essential for the cryptocurrency industry. In the running, almost every major and mediocre cryptocurrency has benefitted from this year. The main reason behind this has been none other than the COVID-19 pandemic.

As a result of the virus outbreak, the entire world’s population went under extreme lockdowns and curfews. The companies/industries had to shut down their product units, which led to millions of people becoming unemployed in a matter of days.

As the lockdowns and curfews went on for several months, it became impossible for such people to leave their houses and look for employment. When it comes to the economy, this year has proven out to be the worst in the 21st century.

It should the entire world how weak the financial and economic sectors and showed us the true colors of the cryptocurrency industry. This year alone has observed an influx of millions of desperate investors who wanted to achieve monetary gains from investing in cryptocurrencies.

In a matter of 10-11 months, the number of investors in the cryptocurrency has tripled and more investors are expected to join in the running year. Among all the digital-assets being traded in the entire crypto-industry, Bitcoin (BTC) has been considered as the dark-horse in the world economy.

Just a few years back, almost all the financial institutions from around the world opposed Bitcoin (BTC) and its market worth. On several occasions, Bitcoin (BTC) was targeted by the regulatory authorities and major financial institutes.

However, Bitcoin (BTC) managed to fight off all the odds and has shown an upward trend throughout the year. Now, the majority of the major financial institutions have started changing their opinion about Bitcoin (BTC) and the rest of the crypto-industry. The perception of BTC and other cryptocurrencies has changed significantly due to their contribution to the world economy.

The biggest announcement was made by PayPal back in October when it revealed that BTC will be integrated as one of its payment methods. That is when the price of BTC went sky-rocket and at the time of publishing, Bitcoin (BTC) is at its all-time high price of $27,000.

Looking at the potential of Bitcoin (BTC), another financial technology company known as Mogo Inc. has also expressed its intentions of investing in Bitcoin (BTC). Mogo Inc. also operates as a Canada-based Bitcoin (BTC) trading service under the name MogoCrypto. The firm recently revealed that it is planning to make its first Bitcoin (BTC) for $1.5 million.

The company revealed that in the year 2021, it plans on making another investment of around $17 million. The company has confirmed that the $1.5 million investment would represent Mogo’s 1.5% worth of assets from its entire portfolio.

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IMF Says Russia and Iran May Use Crypto Mining for Monetizing Energy 0 60

The April 2022Global Financial Stability Report of the IMF has highlighted the consequences of the ongoing Russian invasion of Ukraine. The document said that the role of the US dollar was bound to be affected because of the conflict, as it would lead to the introduction of central bank digital currencies (CBDCs) and the global financial system’s resiliency would also be put to a test. The climate transition goals could also be put at risk because of the priorities associated with energy security. Another issue that would have to be dealt with in the coming years by lawmakers is the ‘cryptoization’ which is likely to occur because emerging markets are experiencing a widespread use of crypto.

IMF cited an increase in crypto trading volumes seen after the introduction of sanctions on Russia to back their statement. This included the financial penalties that had been imposed by Western nations on Russia because of its military invasion. The report said that such cross-border transactions were increasing in the long-term, which means that there would be challenges when it comes to imposing sanctions and managing capital flow. The IMF noted that crypto transactions have increased in both Russia and Ukraine because of the capital restrictions that have been imposed.

However, it is important to note that there has been a fall in liquidity in centralized exchanges where the hryvnia and ruble trading pairs are concerned. Therefore, using crypto exchanges for making large transfers has become rather impractical due to reduced liquidity. But, the IMF admitted that users do have the option of evading some measures via the crypto ecosystem because the identity verification requirements are quite lax in this industry. Hence, the international organization said that blocking new deposits of ruble and freezing crypto assets meant that users could have shifted to non-complying or less transparent crypto platforms and service providers.

Experts at IMF believe that both Russia and Iran could circumvent their respective sanctions via crypto mining. The nations could use their energy resources for generating revenue via crypto mining outside of the traditional financial system. Currently, the countries have a limited share of crypto mining activities, but there is a possibility that it could be increased, considering the size of the mining industry. The IMF quoted estimates showing that almost 11% of the mining revenues of bitcoin could have gone to Russia, which was around $1.4 billion per month, while Iran’s share had been 3%.

Bank of England Says Crypto Assets have Financial Stability Risks 0 100

On Thursday, the Financial Policy Committee of the Bank of England disclosed that they are working on developing a regulatory framework for digital assets. The central bank also made a reference to the sanctions that have been imposed because of the war between Russia and Ukraine in the statements. Bureaucrats and financial regulatory authorities all over the world have become increasingly concerned in recent times that Russia could take advantage of crypto assets to bypass the economic sanctions that have been imposed. The press statement of the BOE said that it was unlikely for crypto assets to provide Russia with a feasible way to get around sanctions at a large scale for now, but there was a possibility they could do so.

Therefore, it is a must to ensure that there are effective public policy frameworksthat can accompany innovation in crypto assets for maintaining the integrity and trust in the financial system. The crypto economy has been highly criticized by some members of the Bank of England for quite a while. Last year in mid-November, Andrew Bailey, the Governor of the Bank of England, had expressed his concerns about the adoption of bitcoin as legal tender in El Salvador. Sir Jon Cunliffe, the deputy governor for financial stability for the central bank, said in the following month that prices of crypto assets could drop to zero.

On Thursday, the report of the FPC talked about financial stability. The committee of the central bank noted that the FPC is assessing the risks to the financial system’s stability and it has concluded that these are currently limited. This is because their size remains limited for now and they are not that connected with the wider financial system. However, the FPC said that if they continue to grow at the same pace, and if they become interconnected with the overall financial system, then these crypto assets could pose a risk to the stability of the financial system.

Since the conflict between Russia and Ukraine began, politicians and lawmakers all over the globe have been discussing, developing, or even proposing laws aimed at regulating and researching digital currencies. The FPC’s statements on Thursday show that the BOE wants to classify crypto assets in the same category as it does traditional financial assets. Not only does the FPC plan on developing a regulatory framework that would govern digital assets, it has also mentioned stablecoins.

The FPC said that a major stablecoin that does not have a reliable deposit guarantee could turn out to be a risk to the UK’s financial system. According to the committee, if they introduce a systemic stablecoin, which is backed through a deposit mad with a commercial bank, it would result in significant risks to the stability of the financial system. All of this talk about crypto has been brought forward because of the Russian-Ukraine conflict and the possibility of the former using cryptocurrencies to evade the tough economic sanctions that have been imposed by Western nations due to its actions.

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