Monthly Archives: June 2020

Here is what you need to know on Thursday, June 11, 2020

BTC/USD rejection from yesterday was continued today down to $9,100 but has recovered a little now and its trading at $9,350.

ETH/USD suffered a 9% drop today down to $226.2 holding the daily 26-EMA but losing the 12-EMA.

XRP/USD had one of the worst crashes today sliding below $0.20 and currently trading at around $0.191 although the low of the day was $0.184.

A lot of bearish action today in the market after yesterdays failed attempt to break $10,000 by Bitcoin. What initially looked like a mild rejection has turned into a significant crash but not everything is lost and some bullish sentiment is still active.

Bullish news from the United States, President Trump head of OCC seems to be a bitcoin bull according to a recent interview conducted by Forbes. Brian Brooks has recently become the new top banking regulator and is working for the Trump administration. Donald Trump is known for his strong stance against Bitcoin and cryptocurrencies in general.

A digital dollar might be closer than ever as the recent stimulus payments due to the COVID-19 have been quite disappointing. According to Christopher Giancarlo, co-founder of the Digital Dollar Project, digital dollars could help the financial system and make it really simple and accessible.

Binance, the most popular exchange by trading volume has just added a new Bitcoin Futures quarterly contract. Binance customers will be able to use 125x leverage on Bitcoin and benefit from 30 days of maker fee rebates and 0.02% taker fees until July 10.

Blockchain has potential to connect up, in a decentralized network, all kinds of data. It has the ability to create large, friction-free, decentralized networks of people. There is huge and great promise in blockchain and crypto.

Brian Brooks

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Cryptocurrency Market News: Bitcoin drops to $9,100, the rest of the market follows suit - FXStreet

[NEW YORK, June 12, 2020]

Chainalysis, the blockchain analysis company, and A&D Forensics, Africas leading blockchain and financial forensics firm, today announced a partnership that will further the adoption of Chainalysis Reactor, the companys investigative software, in the African market.

In April, Chainalysis announced the launch of its partnership program, which, among other initiatives, includes working with cryptocurrency training specialists who will help investigators, compliance officers, analysts, and regulators perform blockchain analysis to derive actionable intelligence using Chainalysis Reactor.

SEE ALSO:Paxful, Africas Largest P2P Bitcoin Marketplace, Partners with Chainalysis for Increased Transactions Overwatch

Chainalysis is dedicated to building trust in blockchains across the world, and Africa in particular is an exciting market with growing cryptocurrency adoption, said Jason Bonds, Chief Revenue Officer, Chainalysis.

By partnering with A&D Forensics, were continuing to expand our reach into new jurisdictions and responding to the increased demand for both cryptocurrency investigation and compliance solutions.

Both Chainalysis and A&D Forensics are committed to promoting the safe adoption of cryptocurrencies by building trust among financial institutions, governments, andcryptocurrency businesses, said Adedeji Owonibi, Senior Partner at A&D Forensics.

By partnering with Chainalysis, were providing the African cryptocurrency ecosystem with the investigative technology that it needs to fully understand blockchain activity.

A&D Forensics joins the program as Chainalysis first investigative partner in Africa,offering law enforcement customers investigatory services using Chainalysis Reactor to help identify and stop bad actors who are using cryptocurrencies for illicit activity such as ransomware, darknet markets, scams, money laundering, and more. This comes at a time when establishing proper compliance procedures and leveraging robust investigative tools is more critical than ever, as jurisdictions around the world scrutinize the cryptocurrency industry.

About ChainalysisChainalysis is the blockchain analysis company providing data and analysis togovernment agencies, exchanges, and financial institutions across 40 countries. Ourinvestigation and compliance tools, education, and support create transparency across blockchains so our customers can engage confidently with cryptocurrency. Backed by Accel, Benchmark, and other leading names in venture capital, Chainalysis builds trust in blockchains.

For more information, visit http://www.chainalysis.com

About A&D ForensicsA&D Forensics has been in the forefront of Financial and Blockchain Forensics Services helping to combat fraud within the Blockchain and Cryptocurrency ecosystem and trainings to law enforcement in Sub-Saharan Africa, The firm was part of VASP Inter-Messaging working group that came out with the recent IVMS 101 standard aim at helping VASP comply with FATF travel rule.

Its Founding Partner was also recently appointed by the Security and Exchange Commission of Nigeria as a member of its Virtual Asset Regulatory Framework Drafting Committee to help bring sanity to the cryptocurrency business and safeguard the interest of Nigerians who are keen to using the emerging Blockchain Technology and the benefits it affords.

For more information, visitwww.adforensics.com.ng

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Chainalysis Partners with A&D Forensics, Expanding Access to its Cryptocurrency Investigative Tools in Africa - bitcoinke.io

As a former investment professional, I am constantly asked about Bitcoin (BTC-USD) and various other coins in the cryptocurrency universe. In a nutshell, I am far from convinced. The analogy that Bitcoin is to the blockchain as email was to the internet seems apt - blockchain, not Bitcoin, is the key. Yet, following the bursting of the 2017 bubble, another mighty run-up has emerged this year.

Source: Coindesk

For the various reasons cited in this article, I have no intention of participating in the 2020 version of the Bitcoin boom. Instead, I see a prime opportunity to capitalize on Bitcoin's volatility without making a directional call via equity in Bitcoin-related futures exchanges (e.g., CME Group (CME) and Cboe Global Markets (CBOE)) or exchange tokens (e.g., Binance Coin (BNB-USD)).

Per the Satoshi whitepaper, the initial intent of the Bitcoin cryptocurrency was for payments at lower transaction costs in a decentralized manner (i.e., without the involvement of centralized, third-party financial institutions). Bitcoin was clearly built on libertarian principles - through the network, participants were provided with a means by which to bypass the fiat currency system while maintaining transaction security.

Source: Satoshi Whitepaper

Yet, Bitcoin does not quite live up to its intended use case as P2P cash based on a comparison with existing online providers (e.g., TransferWise (TWISE)), the cryptocurrency fails to hold its own in terms of cost, speed, and transparency.

On cost, Western Union (WU) and TransferWise remain the cheapest options by far at <1% on a $1,000 transaction. Money transfer through the Bitcoin network, on the other hand, costs ~4% (via Coinbase), which is above even PayPal's (PYPL). This seems far too high, in my view, to ever sustain mass adoption as a cash-like medium of exchange.

Source: FXCIntelligence

Speed is another key hurdle - Bitcoin transactions are settled in ~10 minutes. This simply does not cut it, in my view, given day-to-day transactions require seconds, not minutes, for settlement. Since Bitcoin is typically exchanged through a third-party, the compliance issue is also a hurdle, whether one transacts in Bitcoin or fiat.

Admittedly, having transactions recorded on a blockchain does make it easier to track, but conventional payment services sent through a centralized network also offer similar tracking capabilities today. Arguably, users of the latter system benefit more from having an accountable third-party that can manually ensure the payment has arrived by messaging the retail agent in the receiving country. Here's a sample flow chart depicting Western Union's remittance strategy:

Source: SlideShare

As Bitcoin does not provide a significant enough benefit compared to conventional methods of money transfer and does not have a clear pathway to matching existing options, I fail to see how it can live up to its intended use case at any point in the future either.

While Bitcoin has clearly failed to live up to its original use case (facilitating casual transactions at low cost), Bitcoin's pseudonymous nature has allowed it to emerge as the preferred currency of cyber criminals. Per Chainalysis, a whopping $2.8bn worth of Bitcoin was sent to exchanges (e.g., Binance and Huobi) in 2019 alone.

Source: Chainalysis via Yahoo Finance

Besides the clear value proposition for criminals, speculators have also been attracted to the wild price swings of Bitcoin. March, for instance, saw a staggering ~50% price drop in one day. Per Coinbase, the extent of the drop was attributable to the extent of the leverage being used, with >100x leverage not unusual in this realm. Here's Coinbase on the episode (note the mention of 5-30x leverage being "more sensible"):

Bitcoin has some offshore exchanges that offer 100x+ leverage, where $1 of Bitcoin could be used as collateral to back $100 in purchasing power. To be fair, this is very risky a position leveraged to 100x would get force-closed if the market moved just ~1% against you. So most traders hold positions at a more sensible 530x leverage, but still notably higher than 23x.

Source: Coinbase

The process of mining new Bitcoin ("Proof-of-Work") also impinges on government territory. The rent from creating fiat currency (seigniorage), for instance, goes to governments, which indirectly allows for incomes to be taxed at a lower rate than otherwise. In this sense, the benefit of fiat issuance is shared. The prospect of a Bitcoin standard, on the other hand, would disrupt governments' seignorage revenue and the resulting shared benefit.

The mining process also wastes enormous amounts of electricity on solving complex computational tasks in the process, resulting in negative externalities from an environmental perspective. At this stage, Bitcoin mining has significantly impacted global electricity demand - mining already uses more energy than some developed nations.

Source: Forbes

This process seems wasteful, in my view, and I would not be surprised to see superior mining algorithms (e.g., Proof of Stake) eventually take hold. Perhaps more damning is the prospect of more restrictive government regulation - given Bitcoin mining will continue to impact electricity pricing, governments are increasingly incentivized to outlaw the practice.

Source: Cointelegraph

Admittedly, there has yet to be a full-fledged hack on the Bitcoin network itself but this does not mean Bitcoin is and will remain secure into perpetuity, in my view. Holders of Bitcoin, for instance, are constantly exposed to the risk of theft given the numerous well-documented hacks of well-established Bitcoin wallets and exchanges (see timeline graphic below). Note that once Bitcoins are stolen, there is no recourse.

Source: Fintechnews

The biggest risk, however, lies in the rise of quantum computing, which would make it very likely that Bitcoin private keys can eventually be generated from their corresponding public keys. Per MIT Technology Review, this could happen within the decade. In a best-case outcome, this could lead to additional forks, but in the worst-case outcome, this would entail a complete wipe-out of Bitcoin's value. Even if quantum computing does not spell the end of Bitcoin, it does introduce far too serious a risk to the Bitcoin story for it to emerge as a widely-adopted currency.

Source: MIT Technology Review

Another key stumbling block is custody - Bitcoin storage typically comes in the form of digital vaults, with holders storing sheets of paper on which the corresponding private keys are printed. This introduces a wide range of attack vectors, from physical theft to online hacking, which in turn, has led to the costs of Bitcoin storage eclipsing even some gold vaults. In some cases, Bitcoin custody can cost up to 15x that of gold. Even then, hacks continue to take place.

As an early-stage asset class, it is perhaps unsurprising that Bitcoin's price discovery is inefficient. What few account for, however, is the extent to which Bitcoin prices are manipulated - per a 2019 study, a single trader had manipulated the price of Bitcoin "sharply higher" during the 2017 run-up to $20,000 using Tether, a stable coin pegged to the USD. U of Texas' John Griffin calculates that Tether manipulation accounted for a whopping half of the increase in Bitcoin's price over the period.

I'll refrain from taking a stand on the study's findings, but I would note the credibility of the authors (both affiliated with credible academic institutions) and the fact that the paper was peer-reviewed (published in the Journal of Finance). It is also notable, I think, that the sharp price increase has tracked tether issuance fairly closely.

Source: Griffin/Shams 2019 Paper

These findings also, interestingly, come on the heels of the U.S. Justice Department's investigations into Tether's role (among other cryptocurrencies) in "a tangled web involving Bitcoin, Tether, and crypto exchange Bitfinex might have been used to move prices illegally."

Regardless of whether one thinks these investigations and studies are credible, negative news flow like this makes it much harder for regulators like the SEC to approve a Bitcoin ETF. It also complicates the private sector's efforts to enter the space while maintaining regulatory compliance (e.g., Facebook's Libra launch).

Asset bubbles are nothing new much like the California Gold Rush, some will hit it big here, and others will fail. I see the Bitcoin frenzy as a similar phenomenon. Yes, there is a chance one becomes an overnight millionaire; then again, there's also a very good chance it all goes up in flames. I'm inclined to side with the latter, but I do not think the right trade here is directional. Instead, I think the more favorable risk/reward lies in profiting from the volatility.

Much like the Gold Rush, when Levi Strauss made a fortune selling the picks and shovels, I think the exchanges are the way to play the Bitcoin theme. Thus, while the speculators bet on Bitcoin's rapid rise (or fall), I much prefer owning equity in exchanges such as the CME or CBOE, or exchange tokens such as Binance Coin all of which extract rent off the millions of Bitcoin-related volatility, activity, and volumes in the form of cash flows.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Bitcoin: A Value Investor's Take On This Asset Bubble - Seeking Alpha

VALLETTA, MALTA / ACCESSWIRE / June 13, 2020 / The relevance of cryptocurrency as a profitable investment channel has grown massively over the last few years. Especially in the current scenario, where the global health pandemic has caused immense economic distress, digital currency is arguably going to lead the next financial revolution. While established cryptocurrencies like Bitcoin, Ether, etc. have proved their importance, it is the right time to explore and invest in the newer ones, which will add real-life value and drive mainstream crypto adoption. In this context, CashTelex is one of the most promising projects in the crypto space.

About CashTelax

CashTelex is a financial platform based on blockchain technology, which offers complete financial independence and enables 100% ownership of one's own funds. The platform comprises a cryptocurrency exchange which is powered by its native token named CTLX. The exchange platform is equipped with several advanced trading tools, and also offers numerous other benefits to traders. Apart from the exchange, CashTelex is connected to several other systems, which form an inclusive financial ecosystem.

Benefits of Investing in CashTelex

Primarily, CashTelex adds real-life value, which is one of the most crucial factors in driving mainstream cryptocurrency adoption. CTLX holders will be able to pay for goods and services using this currency on ClashTelex's in-house e-commerce website - just like any other traditional shopping site, these goods will be delivered straight to the user's address. Being able to use crypto to pay for regular usage items contributes to the idea of adopting it as a serious currency, and CTLX serves that purpose seamlessly.

CTLX is directly pegged to physical assets like gold and real estate, unlike many other cryptocurrencies. Hence, it is expected to be much less volatile, and remain stable over a longer duration of time. This relieves users from constantly being concerned about fluctuating prices. On top of that, this enables token holders to store CTLX in their CashTelex accounts and earn regular dividends out of those. Moreover, the exchange also facilitates the buying and selling of these tokens on the same platform.

One more benefit of joining the CashTelex community is gaining access to its highly secure and easy-to-use wallet, through which one can make and receive payments at minimum transaction fee. The platform is further developing a feature using which users will be able to buy and sell gold using CTLX.

A few of the other CashTelex services include - CashTelex Loans, Gold Mining, Global Payments, Private Transactions, among other financial services.

Summing Up

As of now, the CashTelex ICO is currently live. The platform aims to achieve a million CashTelex holders in Africa and the Middle East alone. However, the larger objective is to develop and execute a technology-backed well-rounded platform that will enable financial inclusion for the people of Africa.

Story continues

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CashTelex Is Driving Mainstream Crypto Adoption Through Its Brand New Physical Asset-Backed Cryptocurrency CTLX - Yahoo Finance

As the Ethereum 2.0 upgrade approaches, users have been showing an increasing interest in the staking process, which would allow them to make a passive income by validating the new network.

This is evidenced by the growing number of Ether (ETH) wallets and ETH deposits on cryptocurrency exchanges. According to a recent report published by analytical company Arcane Research, the number of Ethereum wallets containing 32 ETH or more the minimum amount of coins needed to run the staking node have increased by 13% over the year, and the number of Ethereum 2.0 Google search queries have grown by around six times since March.

While some users have already opted to run their own validator node, others are still choosing among becoming an independent validator, joining a staking pool or using staking provider services. But is there actually any difference?

The upgraded Ethereum network will switch from the proof-of-work to the proof-of-stake consensus algorithm, replacing miners with validators who will bet their coins to verify transactions. Once validators verify honest transactions, they will receive the rewards in the form of passive income this process is called staking.

At the moment, the exact size of an annual reward for Ethereum stakers is still unknown. However, according to the projects roadmap, this value will vary from 1.56% to 18.1% and will be inversely proportional to the total number of validators: When the network increases, rewards contract.

On the one hand, a staking model can be attractive to a wide range of crypto users because there is no need for expensive mining equipment or special technical skills and might look as simple as having a bank deposit. All that is needed to receive annual interest on staked funds is to store ETH on a hardware wallet.

However, an in-depth analysis of the requirements for becoming a validator on the Ethereum network has shown that not everything is as simple as it might seem at first glance. The minimum entry threshold of 32 ETH is just one of such requirements.

Related: Ethereum 2.0 Staking, Explained

For example, given the ETH exchange rate of $250, the user will need to invest $8,000 to become a validator on the Ethereum 2.0 blockchain. But what about the reward? Taking into account the cost of validation of $180 and an average reward of 5% suggested by Ethereum developer Justin Drake, the annual profit from staking 32 ETH can be around $190. So, given the possible risks of Ethers price experiencing volatility and users being unable to withdraw funds, this reward model is unlikely to allow an average staker to hit a big jackpot.

Another task users will have to deal with to be a full validator is running their own validator node. As evidenced by a survey published by Consensys, 33% of the ETH users are ready to perform this task. But thats not all. Additionally, validators would be required to ensure the uninterrupted functioning of the hardware wallet. If users disconnect, they lose all their daily income. Even worse, if at some point their stakes drop below 32 ETH, users will lose the right to be a validator.

The Ethereum staking entry threshold is not as high as the cost of running a master node on other blockchain networks, such as Dash, and for many users, high barriers to enter may be unaffordable. That same survey conducted by Consensys also showed that 33% of ETH owners do not intend to participate in network staking, and 71% of those who refused said that they do not hold enough Ether to become a validator.

The above-mentioned limitations can be circumvented if joining a so-called staking pool or staking-as-a-service providers. Such third-party services either decentralized or centralized offer staking on the users behalf and relieve them of the need to worry about launching special software or keeping the network online during the life of the staking deposit. And if launching ones own node can be compared to opening a deposit account at a bank, then staking providers act as brokers, taking on all the risks and maintenance expenses for a certain fee.

The biggest advantage of such solutions is the ability to earn on staking with any amount of ETH, which becomes a way out for many users who cannot afford to keep their own node. According to Consensys, at least 33% of Ethereum users plan to use third-party services and 20% of the respondents who previously revealed the intention to run their own validator nodes said they would consider using a staking service instead. This raises the question: Which is the better option a staking pool or a staking-as-a-service provider?

Today, many crypto exchanges offer staking services for PoS-based coin owners with daily income payments. For example, Poloniex does not impose any requirements on the terms of deposits the user can trade and withdraw funds at any time. For this, however, users are charged a 25% fee on their rewards, which is said to cover operating expenses and risks associated with the management of the service.

Bitfinex, another major crypto exchange, claims that it doesnt charge a fee for its current staking programs, holding a small portion of staking rewards instead. Additionally, asstated on Bitfinexs website, in some cases, its staking service provider can also take a portion of the rewards collected through the exchange. Meanwhile, staking services provided by Bitfinex are available for any category of users since its enough to have as little as $0.10 to start receiving rewards on the platform.

Paolo Ardoino, the chief technology officer at Bitfinex, revealed to Cointelegraph that the cryptocurrency exchange has the biggest Ethereum cold wallet and is planning to be a key part of Ethereum staking. According to him, Ethereum staking will be quite profitable for users who keep their funds on exchanges:

Exchanges like Bitfinex will charge a tiny fee to cover operation costs, but the large majority of rewards will go directly into the pockets of the users. Not all users want to go through the process of custodying their own assets and learning how to stake properly.

Changpeng Zhao, also known as CZ, the CEO of Binance crypto exchnage told Cointelegraph that users who actively stake via Binance will be able to earn higher interest rates than those who simply hold cryptocurrency in their accounts:

Binance will stake a fractional reserve of the Ethereum held by our users, as we still require some funds to be liquid for users to withdraw at any time, while automatically distributing proportionately the rewards to our users.

Another convenience of centralized platforms and custodial services is that they undertake the conversion of the users ETH to ETH2. Cryptocurrency services provider Bitcoin Suisse, for instance,claims that it doesnt charge any commissions for such a conversion, however, it will take 15% from rewards received by its customers. The platform also promises to monitor the timely update of its own software so that the staking process remains uninterrupted and beneficial for the user.

However, according to some users, staking programs offered by crypto exchanges can lead to the centralization of the Ethereum blockchain. In a conversation with Cointelegraph, Sergey Zhdanov, the CEO of cryptocurrency exchange EXMO, explained that although the exchanges will definitely become the biggest network validators, the influence will be inseparable:

Data from Arcane Research and Nansen AI shows that Ethereum wallets with at least 32 ETH, the amount required for ETH 2.0 staking, have grown by 13% this year. The amount of these wallets are more than 120K, so the exchange wallets are taking just 1% of them.

Alongside the crypto exchanges, custodian services provided by some institutional players also appear to be willing to offer such services. According to a PricewaterhouseCoopers report, 42% of crypto hedge funds are also involved in cryptocurrency staking.

Related: ETH Miners Will Have Little Choice Once Ethereum 2.0 Launches With PoS

Zhdanov also pointed out that many big players will likely be staking ETH by themselves as a tool to hedge the risks of their portfolio and that the popularity of ETH among other altcoins working on PoS will help reduce the centralization risk.

Speaking about the probability of centralization, Bitfinexs Ardoino told Cointelegraph that this threat can be possible only in the early phases of the upgrade, adding: Education on the importance of staking from own wallets will be a key factor in order to reduce centralization.

Besides, according to CZ, staking is particularly effective in helping stabilize cryptocurrency prices, as it encourages users to make market buys when purchasing tokens, as well as rewards limit sell orders rather than market sell orders, as users continue to earn staking rewards while their order hasnt filled yet. He added:

Thus, during panics, users are incentivized to set limit orders to sell rather than dump on market, and during bullish periods, users are incentivized to get in faster.

Staking pools or decentralized exchanges can be an alternative for those who are concerned about possible centralization and penalties incurred, for example, for going offline. As the decentralized nature implies, everything from rewards to risks is shared among the members of such pools.

For example, decentralized staking pool Rocket Pool claims that a user deposit cannot be assigned to a bad node since all the pool members share the risk of nodes being slashed and, therefore, the size of the penalty. Thus, if one node fails, each pool member will lose a small number of funds. However, in the case of running a node, its the user whos at risk of losing everything.

In addition to so-called socialized losses, Rocket Pool introduced its native token that represents a tokenized staking deposit and allows stakers to instantly receive a reward and withdraw it at any time. In addition, the pool does not charge fees for staking. However, in order to join the pool, users will need to have a minimum of 16 ETH half as much of the minimum amount needed to run an individual validator node, but a lot more than what crypto exchanges would require.

The entry threshold to become an Ethereum validator has become the most discussed issue among users interested in staking. Many of themargue that 32 ETH is too much and noted that if the required amount was smaller, there would be many more validators on the new network.

Others said that they wouldnt lock up 32 ETH just to secure the Ethereum network unless the staking rewards were higher than 10% per year, given that the possible profit could be negligible compared to losses in the event of a coin price drop. Although the exact staking reward size still remains unknown, many users who have revealed their plans to use third-party provider services already said they would choose the platform that offered at least 7.6% in revenue.

There are also those in the crypto community who appeared to be concerned about the threat of Ethereum centralization, rather than the cost of staking. They, however, appeared to be in the minority. Notably, a significant part of users spoke out in defense of the entry threshold of 32 ETH, comparing this amount to tens of thousands of dollars needed to own master nodes in blockchain networks, such as Dash.

While the launch date for Ethereum 2.0 is still open, users have time to decide whether they want to participate in the stake or not and how exactly they want to do it. As the examples discussed in this article show, almost any crypto user can become a validator of the new network and receive passive income regardless of their financial and technical capabilities.

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Ethereum 2.0: The Choice Between Ones Own Node and a Staking Service - Cointelegraph

Jun 13, 2020 at 12:52 // News

Who would ever think that coins can be used to halt the spread of diseases? Most of the people used to think that cryptocurrencies are only used for payments and investments purposes.

However, the global financial crisis as well as the outbreak of Covid-19 did much to change the financial space and fundamentally peoples trust in the banking structure. The invention of Bitcoin (BTC), the original cryptocurrency, by Satoshi Nakamoto back in 2009, has now caused more of a positive effect that it might have been expected.

Cryptocurrency provides another effective option of storing money and conducting payments minus depending on the traditional banking system and other central bodies. Most people have hidden their wealth in cryptocurrency in fear of inflation and the economic recession that has happened during and after the Coronavirus pandemic.

People no longer walk long distances to line up in banks to deposit or withdraw their funds, hence saving time and money. This has also helped to observe the social distance by avoiding the long lines on the money ATMs and inside banks, since financial transactions can now be conducted from home using cryptocurrency and other digital payment methods.

Many financial regulators, governments and central banks (CBs) have realised the benefits of digital currencies as they are exploring the potential of designing their own stablecoins and central bank digital currencies (CBDC) to replace traditional cash. For instance the US is developing the digital dollar and China is soon launching the digital yuan.

However, as per the report by the European Central Bank Eurosystem, if cryptocurrencies are used to totally substitute traditional money, it could lead interest rates to go under the zero-lower bound. By helping it to dodge the zero-lower bound (ZLB) and thus freeing negative interest rate policies (NIRP) of its prevailing limitations, a globe with only CBDC would allow for strong financial stimulus in a severe recession and/or economic crisis.

CB digital money brings a couple of alternatives for monetary policy, basically since variable interest rates on CBDC would offer for a new, non-redundant financial policy instrument that would enable the improvement of the entire efficiency of monetary policy.

Some cryptocurrencies such as Bitcoin and Ethereum are possible alternatives to fiat money. Nevertheless, public blockchains dont have enough processing power. In order to use it in the public sector, the control of regulators must also be strengthened.

The real alternative is the CBDC issued by the CB. The CB can distribute money through commercial banks or issue it directly to individuals. Experts including Tommaso Mancini-Griffoli, Deputy Chief in the MCMD at IMF, want the CBs to jointly issue and circulate the CBDC with private companies and commercial banks. The direct connection between the CB and the general public is a feasible model and the ripple effect will be significant.

But, if the central banks and other financial regulators dont amend their monetary policies to include digital currencies, most people especially those who have tested the sweetness, convenience and benefits of cryptocurrencies, are more likely to ignore using traditional banks, hence cryptocurrency digital wallets and CBDC-accounts replacing the need for bank accounts in the near future.

Most governments and the World Health Organisation (WHO), have been advising people to reduce the use of cash in order to stop further spread of Coronavirus. Infected money notes can easily spread the virus from person to person. That means that people will have no other option but to use available, secure, transparent, effective and fast digital payment methods, of which cryptocurrency has all those qualities that the public want.

People have also been advised to stay and work from home. The cryptocurrency has helped people and the quarantined population to order goods and services online, and then pay using BTC and other accepted digital currencies. Some of the top countries/places that have seen an increase in the use of coins during this global crisis include Singapore, Australia (Brisbane), United States (California), Sweden, New Zealand and Liechtenstein. Generally, cryptocurrency has been a free vaccine that helps to maintain social distancing and thus shields people from acquiring this deadly disease.

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Cryptocurrency Can Become a Medicine to Treat the Challenges Caused by Covid-19 - Coin Idol

Binance, a cryptocurrency exchangeand blockchain company focused on crypto infrastructure, announced the launch of BTC/USD Quarterly Futures with leverage up to 125 times.

The contracts come as an extension of Binances already diverse portfolio of financial instrumentsand will offer increased trading efficiency.

"Since launching Binance Futures in September 2019, we worked hard to provide a stable, fast, and low-fee futures platform for our users," said Changpeng Zhao, founder, and CEO of Binance. "Today, we are pleased to announce our first quarterly settlement futures contracts, which complements our existing range of financial products."

The contracts will be settled in BTC tokens and expire on the last Friday of the corresponding three-month period.

Delivery futures have a significant role in commodity trading and hedging, so we are ensuring we are ready as the crypto market matures and users adopt similar trading strategies," said Zhao.

To learn more about leveraged exposure to cryptocurrency products, please visit binance.com/en.

Photo by Bongkarn Thanyakij from Pexels.

2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Binance Launches Quarterly BTC/USD Futures With Up To 125x Leverage - Benzinga