Bitcoin Draws Premium in Argentina and Hong Kong Amid Sell-Off
The turmoil in Argentina and Hong Kong is prompting local investors to pay a premium for Bitcoin, with the leading cryptocurrency proving to be less of a refuge for everyone else than advertised. In Argentina, where the peso plunged on election uncertainty, Bitcoin was recently trading for as much as $12,000 on LocalBitcoins.com, a peer-to-peer platform, or 10% higher than on many international crypto exchanges. The token was trading at about a 4% premium in Hong Kong, where continued anti-government protests are raising fears of retaliation.
Venezuela may not just be using its own cryptocurrency to dodge the consequences of international sanctions. Bloomberg tipsters say the country's central bank The firm reportedly has troves of bitcoin and ethereum, and moving that money to the central bank might let it pay suppliers and
Venezuela ’s central bank is running internal tests to determine whether it can hold cryptocurrencies in its coffers, according to four people with direct knowledge The efforts come at the behest of state-run Petroleos de Venezuela SA, which is seeking to send Bitcoin and Ethereum to the central bank and
Venezuela may not just be usingto dodge the consequences of international sanctions. Bloomberg say the country's central bank is testing the possibility of holding on to cryptocurrencies in order to help the state-controlled oil company Petroleos de Venezuela SA. The firm reportedly has troves of bitcoin and ethereum, and moving that money to the central bank might let it pay suppliers and avoid "potential blocks" from conventional channels that would come with either direct crypto payments or regular money.
The bank is likewise considering proposals to count cryptocurrencies toward international reserves that have plummeted in recent years.
Carney’s Dollar Question Has an Obvious Answer to Bitcoin Fans
Bank of England Governor Mark Carney’s radical pitch to put a digital currency at the heart of the global monetary system instead of the dollar may still be behind the curve. The politically incorrect answer to his question is already out there, says Richard Galvin, a former investment banker at JPMorgan Chase & Co. who made the leap into cryptocurrencies.
Venezuela ’s central bank is exploring the possibilities of holding Bitcoin and Ether in its coffers, at the request of state-owned oil In the hope of overcoming its isolation from the global financial system, the Venezuelan central bank is reportedly studying proposals that would see cryptocurrencies
The central bank of Venezuela is reportedly running test to find out whether it can add bitcoin and ether to its international reserves. How the PDVSA has obtained bitcoin and ether, the report reads, is unclear. As the country has been under U.S. sanctions it has been struggling to do business with
It's not certain where Petroleos got the bitcoin and ethereum, let alone how much it has. There's also no guarantee that companies would accept such a move when crypto's relative anonymity and the potential forleads many other banks to hold off. That's not even including the potential for further . This is a Hail Mary effort to sustain Venezuela's economy (and thus the Maduro government), and it may ultimately amount to a risky experiment even if it goes ahead.
A head of the ECB has found the way to "break the Bitcoin"
Object of all speculation, many central bankers expressed their reservations on the sulfur cryptocurrency. It is the turn of one of the members of the Governing Council of the European Central Bank (ECB) to propose the solution to regulate Bitcoin.
Austrian Ewald Nowotny, a member of the ECB's Governing Council, has come out in favor of a regulation of Bitcoin, "a purely speculative object that masquerades as a currency," he said on Wednesday. interview.
"It would be enough to apply the basic rule of any financial transaction: each participant must disclose his identity.That would break Bitcoin," said Nowotny in an interview with German daily Süddeutsche Zeitung. "We need a VAT on Bitcoin which is not a currency," he also outlined.
The governor of the Central Bank of Austria takes over the credo of the ECB, which considers Bitcoin, this virtual and decentralized currency, as a bubble rather than a potential competitor of the euro, but points the risks of money laundering posed by the development of blockchains and cryptocurrencies.
"We have just decided not to print 500 euro banknotes for this reason and we are witnessing a vast recycling of this dirty money in Bitcoin," he laments.
A price too volatile for
payments Bitcoin, the virtual currency that burst onto the international financial scene in 2017, rose from around $ 1,000 in January to over $ 16,000 in mid-December, a dizzying ascent making one fear a bubble, even in financial circles that are ripe for speculation and volatility.
The president of the Austrian central bank believes that Bitcoin is above all a fashion and emphasizes the impossibility in the long run to generalize payments with a currency whose price is also volatile.
"When I take the metro on weekends with my grandchildren there are always some people who come to talk to me about it, before they asked me if you had to buy gold," says Nowotny.
US Federal Reserve (Fed) officials have also recently raised concerns, while the Central Bank of Singapore has warned investors to be "extremely cautious" about bitcoin.
>> Read also
Bitcoin treads water around $8,000 after its worst week of the year .
The price of bitcoin struggled to remain above the $8,000 level Sunday, following its worst weekly price loss of the year. Bitcoin (BTCUSD) was above $10,000 as recently as last Sunday, but has since fallen about 20%. As of Sunday night, bitcoin was around $8,020, according to CoinDesk.The leading cryptocurrency has fallen about 34% over the past three months. In June, bitcoin topped the $10,000 mark for the first time since early 2018.“Bitcoin’s recent price drop is a result of technical and fundamental factors,” Bitbull Capital CEO Joe DiPasquale wrote last week, according to Barron’s.