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Goldman Sachs Bank believes in bitcoin’s rapid growth, New Zealand allowed paying wages in cryptocurrencies. The Marco Polo Project has entered the real market.
A newsletter by the investment division of Goldman Sachs Bank reports that bitcoin is likely to grow in the short term. Based on Elliott wave theory, bank experts make a forecast that cryptocurrencies will receive a slight correction in the near future, after which the BTC/USD pair will rise to the level of $ 13,971. However, such a scenario may be broken by a drop in quotations below $ 9,084.
On the basis of the foregoing, analysts recommend opening long positions ranging from $ 10,000 to $ 11,000. A message about this newsletter was sent by Su Zhu, the Director General of Three Arrows Capital, who was somewhat surprised at the bank’s attention to cryptocurrencies.
This month, David Solomon, the Head of Goldman Sachs, gave a hint at the bank’s possibility to launch its own cryptocurrency. After the publication of the Libra White Paper, there is nothing strange in the fact that large financial corporations have begun to pay closer attention to cryptocurrencies.
By no means, the optimism of Goldman Sachs forecast is somewhat contrary to the current charts, which show bitcoin correction to the level of $ 10,000, however, there are more revolutionary forecasts on the market. So, investor Tim Draper confidently talks on $ 250,000 value of one coin by 2022.
However, if Draper can be attributed to cryptocurrency enthusiasts, then Goldman Sachs Bank has always taken a more conservative approach and its forecast may indicate a change in investors’ sentiment. This year, they have become more loyal to cryptocurrencies and their forecast for bitcoin is increasingly becoming more positive.
For example, Don Steinbrugge, Agecroft Partners CEO, in his interview for CNBS stated that cryptocurrencies have an amazing ability to hedge risks. Besides, Bill Miller, one of the recognized veteran investors, was able to increase the assets of his hedge fund by 46% in 2019 thanks to cryptocurrencies.
The New Zealand Tax Service has taken an important step in legalizing cryptocurrencies. Now everyone here has the right to receive wages in bitcoins or other coins and herewith he will deduct taxes at a predetermined rate. At the same time, self-employed citizens are completely exempted from all types of additional payments.
Even company employees are exempted from deductions in case they received income in cryptocurrency, which now cannot be converted into fiat money. With this step, the authorities are trying to attract companies working on high-tech solutions to the country. In fact, it will be possible for an investor in the country to collect a portfolio of assets without incurring additional costs.
The authorities of New Zealand explain the refusal of the requirement to pay tax by the inability to pay with cryptocurrency in everyday life. They acknowledge that income in cryptocurrency so far carries more inconvenience than income in fiat money. However, they are ready to take such a step to stimulate business.
The accompanying statement says that some day or other many residents of the country will receive wages in cryptocurrencies, and it is necessary to prepare in advance for this stage of economic development. The news came at a time when the Bank of China once again confirmed its readiness to launch a national cryptocurrency. The Deputy Director of the Payment and Settlement Solutions Division said that now it is actually ready to be launched.
It is already known that this will be a two-tier system, which will be available not only to banks and businesses, but also to ordinary citizens in the near future. Consequently, it is quite possible that wages payment on blockchain will be a quite ordinary decision for entrepreneurs. Since 2014, China has been developing its project, and now it is at the maximum level of readiness.
This March, a message was received with the information about the beginning of testing a trade finance platform based on the Marco Polo blockchain, and now the first deals have been made here. A payment for goods that were in transit from the buyer to the seller was made here for the first time.
In fact, this means that international trade and blockchain can provide business with completely new opportunities. For example, funds were transferred through the network for deliveries from Germany to Taiwan. That is, now the Marco Polo blockchain allows not only controlling the transportation process, but also organizing financial calculations.
The Marco Polo system is controlled by R3 international consortium, which includes, among others, the Austrian Raiffeisen Bank, the Japanese SMBC bank and the Brazilian Banco Bradesco. Commerzbank and LBBW as well as many worldwide largest insurance and logistics companies are also taking an active part in it.
However, the full capabilities of a new network have not yet reached mass use. For example, Martina Zimmerl, the Head of Raiffeisen’s department, said that it would be used to provide bank guarantees and approve payables. This can significantly reduce customer service time and increase the range of banking services.
Blockchain was developed by TradeIX, which was able to connect to the interbank network protocol and now provides compatibility with Microsoft Dynamics 365, Xero, and Oracle Netsuite. The work on its creation began in 2017. Based upon the first results, the control of financial transactions through blockchain is much more effective than the traditional paper workflow in trade.