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National cryptocurrencies will appear earlier than expected. The debate on Libra project is flaring up. Outlier Ventures study on investment in blockchain.
The Head of the Bank for International Settlements announced that in the nearest future a number of central banks could issue national cryptocurrencies. In addition, Agustin Carstens made it clear that his agency is ready to assist them in creation of these financial assets. In an interview for the Financial Times, it was said that such stablecoins would not be anonymous; all the transactions must be completely open to the controlling organizations.
Back in March 2019, Agustin Carstens stated that Central Banks should hold back from creating national cryptocurrencies. He argued that their release would introduce uncertainty into the global financial system, and would adversely affect stability. Looking ahead, they will supplant traditional money, and it is now impossible to calculate the consequences of such a step.
According to a survey by the International Monetary Fund, a number of countries are on the verge of creating national stablecoins. Moreover, there is China among these countries, which is very strictly related to the emergence of digital financial assets.
A study performed by the World Economic Forum showed that now 40 countries of the world are studying the technologies of creating state cryptocurrencies. The implication is that such a financial asset will appear in the coming years. Even the most ardent opponents of new technologies are forced to accept market opinion that the time has come for a fundamental change in the global financial system.
This is what the position of BIS Head is. While earlier he stated that markets are not interested in the appearance of the state cryptocurrency, now the situation has changed. Business and ordinary citizens are ready to use digital money in their daily payments.
Calibra, Facebook subsidiary in the United States, has received a permission from the US Treasury Department (FinCEN) to conduct cash payments. In addition, an application has been filed for the purpose of obtaining a license to carry out transfers. Calibra plans to get BitLicense in the New York State Department of Financial Services.
According to Reuters, Facebook representatives held talks and consultations with regulators in the UK and Switzerland. According to Sean Park, the Head of Anthemis, it is necessary to obtain thousands of permits from various regulators in order to launch Libra cryptocurrency. Moreover, not all of them are favorably disposed.
A number of US lawmakers require banning the implementation of a new project. In their opinion, the ability to buy Libra cryptocurrency will simplify the process of money laundering. Felix Hufeld, the Head of BaFin German regulator, called for the creation of rules for the turnover of a new monetary unit in the territory of the European Union.
In mid-July, US Senate and Congressional Committees will hold hearings on this issue. They received requests from 30 public organizations that are concerned about the fact of the emergence of a new Libra cryptocurrency by Facebook. The letter addressed to the legislators calls for a ban on the draft development until the situation is clarified.
A survey showed that now 80% of social network users are not going to use its cryptocurrency. Hence, it follows that 20% of users are ready to exchange money for Libra cryptocurrency and apply it in payments. This means that a new financial asset already has a potential audience of more than 300 million people. David Marcus, the Head of Calibra, tried to reduce the passions somewhat. He recalled that Facebook is only one of the 100 members of Libra association, and it will not keep the network under its control.
Despite the fact that at the beginning of the year the cryptocurrency market was in a difficult situation, investments in blockchain startups amounted to $ 822 million. It was reported in Outlier Ventures study. During the first half of the year, a total of 279 transactions were made 159 of which allowed investing in cryptocurrency projects at the initial stage.
Researchers note that the major players have become very cautious. This is largely due to the tightening of the rules for attracting venture capital investment for cryptocurrency companies. The greatest interest is the investment in IEO, the initial exchange offers. Basically, this is an analogous to ICO, the primary token offer. Nowhere else except here, investment in blockchain takes place through exchange platforms. Thus, Bithumb exchange was able to raise about $ 200 million in total.
Growing investors’ interest in cryptocurrency is taking place against the backdrop of improved technology support. For private and institutional investors, an access to trade is simplified and new custodial and trading services are emerging.
According to Coinsquare cryptocurrency trading platform, a number of cryptomats may double to the end of the next year. This was made possible through the acquisition of Just Cash, a software company.
This investment is hardly taken into account in Outlier Ventures study, but it can significantly change the balance of power. The acquisition will allow ordinary ATM users to buy cryptocurrency via usual debit cards. According to estimates, 170,000 devices in total will be connected to the system in the United States. By means of it, investment in cryptocurrency in 2019 may increase due to the involvement of individuals who have not previously had such an opportunity.