Category Archives: Cryptocurrency

The fate of Indias cryptocurrency ecosystem has been in limbo for a while.

In April 2018, the countrys central bank cut off the communitys ties with the financial system by barring banks from dealing with crypto exchanges. In July this year, an inter-ministerial panel, set up to study bitcoins, led by the top bureaucrat Subhash Chandra Garg, recommended imprisonment for those who even hold cryptocoins.

Yet, a steering committee report by the finance ministry, released in September, recommended a softer approach, citing the importance of blockchain technology, which powers cryptocurrencies, to fintech.

The uncertainty arising from the lack of a legal framework for the sector has taken its toll. It is important to take a fresh look at bitcoin, and see it not just as a cryptocurrency, but also a computer network and a technology protocol.

As crypto investor Meltem Demirors recently argued before the US Congress, in a hearing on Facebooks Libra, bitcoin is a store of valuea digital gold of sorts. Despite its volatility, it is being used as a medium of exchange in places such as Venezuela, Argentina, and Zimbabwe.

Its true nature, though, goes beyond that.

Bitcoin is an open source technology protocol, not controlled by a single entity. In that sense, it resembles some of the more enduring vignettes of our times, such as Wikipedia or, arguably, the Linux operating system.

Cryptocurrencies can also be thought of as a network formed by computers running this open source code. This networks computing power is 72 million TH/s (trillion hashes per second). To put that in perspective, the computing power of Googles 10 million servers would be less than 1% of this.

It is their brute computing power that makes bitcoins uncensorable, inviolable, and ultimately, valuable.

Given these three ways to interpret bitcoins, the pertinent question is: what exactly should Indias regulators be regulating?

Apart from some anodyne lip service to blockchain technology, are policymakers trying to clearly parse out the distinction between the currency, the technology, and the network?

The Garg panels document seemed to be exclusively concerned with bitcoin as a cryptocurrency, and its destabilising effect on monetary policy. To be sure, these are valid concerns, and there are no easy, near-term answers.

Yet, the Indian government would do well to keep in mind the other two perspectives on bitcoin, which has inspired many to invest in cryptocoins.

In the period between the first quarter of 2017 and the second quarter of 2019, venture capital funds worth over $6.2 billion was poured into over 400 companies in this space, most of them in the US.

The top 10 unicorns in this space, led by Binance and Coinbase, are collectively worth around $50 billion, and companies built on top of the bitcoin protocol collectively employ hundreds of thousands of the sharpest business and technology minds globally.

Large corporations such as Facebook, Google, JP Morgan and Goldman Sachs are investing heavily in research and developmental efforts in this space. Institutions such as MIT, Stanford, and Berkeley are also emerging as leading centers of bitcoin research.

The important thing is, these efforts are not just focused on bitcoin, the cryptocurrency. They are looking at making the bitcoin network more scalable and more reliable so that people can send money to each other faster, corporations can settle international transactions more efficiently, participants in a supply chain can collaborate to make it more efficient, and some of the most disenfranchised people in the world can access financial services in a safe, secure, and convenient manner.

The current stifling of crypto enthusiasts in India will only hasten the exodus of some of the sharpest minds to global centers like Singapore, San Francisco, and Berlincities where they are likely to be welcomed with open arms, funding, and a friendly regulatory framework.

Indias Garg panel had also recommended that India must consider introducing an official virtual currency, the Digital Rupee, to replace private cryptocurrencies such as bitcoin.

This is an impractical idea.

For one, there is the infrastructure hurdle. Some entity (usually from the private sector) needs to invest heavily to build out the payment gateways and the user and exchange interfaces that will be needed to drive adoption of a crypto rupee.

The public sector has limited resources to develop virtual currencies.

The public sector has limited resources to develop or manage projects at this scale. Most Indian governmental websites still use the older, insecure, HTTP protocol without the SSL encryption. A wallet to store the proposed crypto rupee, for instance, would be considered highly unsafe, and find little traction.

Designing and developing critical components and building blocks like these is typically best left to motivated, young, geeky engineers congregating in hacker houses in Powai and Palo Alto, than to an army of for-rent consultants hired by the governments IT department through archaic tendering processes.

Some have termed cryptocurrencies as the Wild West of the financial world. Terrorists, pornographers, and money launderers can misuse it.

However, living in fear is to lose the battle to the neo-luddites and the rentiers reluctant to change the status quo. Given that bitcoin is here to stay globally, we might as well consider a progressive approach to a sector that is nascent, evolving rapidly and has transformational potential.

We welcome your comments at ideas.india@qz.com.

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India must note that bitcoin is much more than a cryptocurrency - Quartz India

It's been almost two years since cryptocurrencies went mainstream.

Back in the fall of 2017, the price of bitcoin rose over 500% in three months as investors all suddenly became aware of the apparent future of payments and saw a flurry of headlines like: As Bitcoin Scrapes $10,000, an Investment Boom Like No Other. But those highs were short-lived.

From "peak crypto" most actual cryptocurrencies are worth a fraction of what they were back in early 2018.

But some investors that played the craze without actually buying cryptocurrencies have done quite well. They've bought stocks that have beaten the S&P 500 by 30%, 60%, even 160%!

While crypto ripped through the hype cycle, the core trends pushing it forward are still incredibly strong and they continue to create interesting opportunities for savvy investors.

And so our analysts have been looking for more "backdoor" plays on cryptocurrencies and blockchain that offer big upside and stable core businesses, to boot. In this broadcast from our YouTube channel, they walk through their outlook on cryptocurrencies like Bitcoin and Ethereum, some interesting ways to play the future of payments, and a few cryptocurrencies investors should keep their eye on.

A full transcript will post after the broadcast is over.

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The Best Way to Play Bitcoin and the Cryptocurrency Market - The Motley Fool

It's a make-or-break moment for bitcoin ETFs.

The Securities and Exchange Commission has set an Oct. 13 deadline for approving a bitcoin-based exchange-traded fund from Bitwise Investments, a move that could mark a meaningful milestone in bitcoin's long-term growth story.

The digital currency has been volatile this year, falling by over 20% in one week in late September to its lowest level since July amid increasing skepticism and uncertainty. Bitcoin hit its 2019 high of over $11,000 in June, according to cryptocurrency exchange Bitstamp.

Interestingly, bitcoin is still 2019's best-performing asset, up almost 123% for the year.

That volatility isn't stopping Matt Hougan, managing director and global head of research at Bitwise, from being optimistic about the prospects for his firm's bitcoin ETF, which, if approved, would trade as the Bitwise Bitcoin ETF Trust.

"We're closer than we've ever been before to getting a bitcoin ETF approved," Hougan, former CEO of Inside ETFs, said Monday on CNBC's "ETF Edge."

"Sometime before Monday, the SEC has to give its decision: yes or no. They have no more ways to postpone it at this point," Hougan said. "We will hear clearly between now and Monday what they think, and then, depending on what we hear, we'll go forward from there. But it should be a very exciting week."

The road to bitcoin ETF approval has been a long one. The Facebook-famous Winklevoss twins first filed for a bitcoin ETF in 2013, launching a yearslong fight for approval with the SEC that ended in disappointment.

It's also come with a few casualties. In January, a government shutdown threw a wrench in many issuers' plans, with Cboe Global Markets withdrawing its application for a bitcoin-based ETF. In mid-September, VanEck and SolidX followed suit, pulling their proposal for a bitcoin-based ETF from SEC consideration.

But in the last few years, the outlook for Bitwise's proposal has improved significantly, Hougan said.

"The evolution of the bitcoin market over the last two years is from night to day," he said Monday, adding that some of the SEC's chief concerns about approving a bitcoin ETF mainly custody and proper regulation are starting to get resolved.

"Two years ago, there were no regulated, insured custodians in the bitcoin market. Today, ... there are big names like Fidelity and CoinBase [with] hundreds of millions of dollars of insurance from firms like Lloyd's of London," he said. "Two years ago, there were no regulated crypto exchanges. Now, six of the 10 big crypto exchanges are regulated by the New York Department of State with market surveillance technologies in place. And, most importantly, two years ago, it was a one-sided, inefficient market. Today, we have $200-plus million in volume and regulated futures every day."

Now, bitcoin is "among the most efficient institutional markets in the world" because of its narrow spreads and the involvement of major market makers like Jane Street Capital and Susquehanna, Hougan said.

All of those factors could bring Wall Street one step closer to welcoming the first-ever bitcoin ETF, a long-awaited event that would open up the crypto space to many more buyers, Hougan said.

"The opportunity that's taking place in bitcoin, crypto and blockchain today is one of the most exciting wealth-generation opportunities in the world," he said. "The problem is while big institutions have safe, secure ways to buy bitcoin today in private funds that are available only to the ultra-high-net-worth people, regular investors don't have a safe way."

A bitcoin ETF would change that layout entirely, the research pro said.

"What the bitcoin ETF would allow everyday investors to do is have safe, simple, secure access to the wealth generation taking place in bitcoin and crypto. It would let financial advisors give it to their clients easily instead of them going rogue," Hougan said. "It's just trying to solve that problem of simple, secure access to what is emerging as a very important technology and a very important asset class in the market."

Bitcoin was up by about 5% by Monday's stock market close, according to Bitstamp.

Disclaimer

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'We're closer than we've ever been' to bitcoin ETF approval, says Bitwise head of research - CNBC

Over the past few years, cryptocurrencies such as Bitcoin have been the subject of much debate among regulators around the world. While a few critics of the technology have long held the position that cryptocurrency cannot compete with fiat currencies due to their decentralized and distributed nature, many are now realizing its sheer potential in use-cases such as cross-border trade and global financial inclusion. Governments are no exception to this, with many now suggesting, and even already developing, state-backed digital currencies to compete with the likes of Bitcoin.

Governments Take a Positive Stance on Cryptocurrencies

China famously termed initial coin offerings illegal in September 2017 and proceeded to clamp down on cryptocurrency exchanges operating in the region. Prior to the ban, the Chinese Yuan accounted for almost 90% of global cryptocurrency trades. In 2018, however, The Peoples Bank of China (PBOC) announced that the Yuan was being used in a mere 1% of Bitcoin transactions. Since then, however, several rumors surrounding the PBOCs plan to launch a state-backed digital currency have emerged. The central bank digital currency (CBDC) will likely be backed by the Chinese renminbi fiat currency and may even replace notes and coins in the future.

Countries like Japan, France, and Portugal, on the other hand, have made cryptocurrency trading much more attractive and accessible to the general public. Japan, for one, was the first nation to allow cryptocurrency to be used as a payment method and has since regulated the ecosystem to curb rampant fraud and hacks at various exchanges operating in the region. France and Portugal, meanwhile, have announced that crypto-to-crypto trades will not trigger a taxable event. The latters government has even exempted cryptocurrency from capital gains taxation.

Banks Embrace Blockchain, Tokenized Future

Even at the institutional level, banks, hedge fund management firms, and individual investors have reversed their cynical approach to the cryptocurrency market and are now actively embracing the technology.

On several occasions, JPMorgan Chase CEO, Jamie Dimon, claimed that cryptocurrencies, including Bitcoin, were fraudulent schemes that would eventually blow up. Dimon even went as far as stating that he would personally fire any JPMorgan trader who was trading Bitcoin. A few short months later, however, Dimon backpedaled in an interview with Fox Business, stating that he regretted making those comments and that he was aware of the potential implications of blockchain technology and the cryptocurrency ecosystem.

In 2019, JPMorgan Chase announced that it was developing its own digital currency called JPM Coin. Each token will reportedly be pegged to the value of one US dollar. In its JPM Coin announcement post, the bank echoed Dimons sentiment by stating, We have always believed in the potential of blockchain technology and we are supportive of cryptocurrencies as long as they are properly controlled and regulated.

Bitcoin: A Hedge Against Geopolitical Turbulence

Individual traders that typically deal with stocks, precious metals, and other traditional asset classes have also taken a keen interest in the crypto market. American investor, Anthony Pompliano, has repeatedly voiced support for Bitcoin, stating that 100% exposure to fiat assets is a bad idea due to the risk of hyperinflation or central bank failure. Given that countries like Greece, Zimbabwe, and Venezuela have experienced significant financial turmoil over the past few years alone, many believe that Bitcoin serves as the perfect diversification tool.

Due to the US-China trade war, many institutional investors are moving their funds away from the stock market into more stable asset classes. Founder and CEO of Digital Currency Group, Barry Silbert, said, Its certainly interesting that that price [of Bitcoin] started its acceleration, moving up and to the right, when the trade discussions broke down.

Adoption and interest in the cryptocurrency market has also been sparked by decentralized applications like Alluva that offer the ability to participate in the digital currency ecosystem without any investment. Alluva, for one, is building the worlds largest analyst network by incentivizing individual investors for accurately predicting the price potential of various cryptoassets, and providing institutional investors the data they need to boost transparency in investment within the sector.

As the cryptocurrency and blockchain ecosystem continues to grow, it remains to be seen if the next ten years will be just as influential and positive as the past. One thing is certain, however - governments and institutions have finally realized the true potential of decentralization.

Disclaimer: This article has been Produced on behalf of Alluva by Times internets Brandwire team.

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The World's View of Cryptocurrency and Blockchain Is Rapidly Changing - Times of India

Dont expect American tech powerhouse Apple to launch a cryptocurrency any time soon or ever for that matter.

Well, at least not while the companys chief executive officer Tim Cook is at the helm. The CEO noted in a new interview with French financial newspaper Les chos that he believes states, and not private entities like firms, should remain societys monetary masters.

Asked by the publication whether Apple was planning to launch its own money, Cook said No, adding:

I seriously think money needs to stay in the hands of nation states. I am not comfortable with the idea of a private group creating a competing money. A private enterprise doesnt have to strive for power like this. Money, like national defense, needs to remain the domain of nation states, its at the heart of their mission. We elect our representatives to undertake government responsibilities. Businesses or private groups are not elected, they dont have to enter this field.

Thats open and shut as far as sentiment goes, and many people in mainstream circles would agree with Cooks positions here. Could his thinking evolve on money in the coming years? Of course. But theres no debating where Cook currently stands on the matter.

To be sure, reasonable people can disagree on monetary subjects. Yet there is no question that with the advance of top cryptocurrencies like bitcoin and ether combined with Facebooks major Libra splash that money, what it is and what it can be, is now a matter that the largest organizations are increasingly taking positions on.

At Apple the buck stops with Tim Cook as far as the companys wider strategies go, so when he says money should remain in the realm of states, its a bright flashing signal that Apple isnt making its own rendition of the Libra for the foreseeable future.

Still, it appears the tech giant is keeping its ears to the ground where the possibilities cryptocurrencies are concerned, at least according to comments made by Apple Pay vice president Jennifer Bailey in September.When interviewed by CNN at a private event in San Francisco on September 5th, Bailey said:

Were watching cryptocurrency We think its interesting. We think it has interesting long-term potential, but were primarily focused on what consumers are using today.

The payments arm of the massive company, Apple Pay made waves earlier this year when it unveiled the Apple Card, a fee-less titanium debit card that users could link to their Apple Pay accounts.

Some saw the new product as a potential challenge to traditional banks. Yet combined with Cooks latest remarks, it seems that banks and not money itself marks the limit of what Apple is willing to shakeup right now.

Again, though, the company isnt totally burying its head regarding the possibilities around cryptocurrencies.

If you look at QR code payment solutions, if you look at the long-term potential of cryptocurrency, I think youll continue to see that change over time, Bailey told CNN.

Apple may not have to shakeup the money game itself if the central banking system of the United States does so first.

Theres nothing concrete on that front at the moment. But American lawmakers did notably send Federal Reserve Chairman Jerome Powell a series of questions this week that centered around any plans the Fed might have digitizing the dollar as a cryptocurrency.

While some Americans currently use cryptocurrency for speculative purposes, usage of digital assets may well increasingly align with that of paper money in the future, the congressmen said.

How Chairman Powell will respond remains to be seen, but it does look like the tides are steadily changing regardless.

eToro Risk Warning: 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

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Have at It, Libra: Theres No Apple Cryptocurrency on the Horizon - Blockonomi

Missouri-based cryptocurrency companyMavixbtc Limited has been handed a cease-and-desist order for allegedly misleading investors.

The company, based in St.Louis, misled the public through its website, which falsely claimed to be registered with the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation. Maxixbtc promised investors returns of up to 55 percent in as little as six days.

If this wasnt enough, the company also used the registration number of a legitimately registered investment adviser who had nothing to do with and no knowledge of Mavixbtc.

According to its website, Mavixbtc was founded in 2008 by Mavis Ann Lehr, a subsidiary of Benjamin F. Edwards & Company, Inc. a broker-dealer with over 2,136 financial professionals registered nationwide.

Securities Commissioner David M. Minnick said:The novelty and promise of quick profits by investing in cryptocurrencies can be enticing to investors.

But there are significant, real risks associated with these non-traditional investments, and scam artists are hard at work trying to defraud investors. Always check with our office before you invest, he added.

Want more Hard Fork?Join usin Amsterdam on October 15-17 to discuss blockchain and cryptocurrency with leading experts.

Published October 3, 2019 13:30 UTC

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Cryptocurrency firm slapped with cease-and-desist after impersonating registered financial adviser - The Next Web

Global exchanges are begging the UKs Financial Conduct Authority (FCA) not to ban the sale of cryptocurrency-based derivatives.

The World Federation of Exchanges said today that there is a need to find a balance between innovation and keeping consumers protected, Reuters reports. But it doesnt think banning cryptocurrency-based investment products is the right answer.

The WFE recognizes the volatility identified by the FCA in its consultation report and is supportive of ensuring that proper consumer protection is put in place as a priority for any new and relatively untested product on the market, the WFE said in a statement.

Earlier this year, the FCA proposed a blanket ban on cryptocurrency-related investment products in an attempt to protect retail investors.

In July, the FCA said thatcryptocurrency-based derivatives and exchange traded notes, were ill-suited to retail consumers who cannot reliably assess the value and risks.

Heres the thing, exchanges that are part of the WFE are regulated, and so, investors are protected. The issue lies with the unregulated exchanges offering cryptocurrency derivatives.

By banning these products, it immediately makes the act of selling them unlawful and in theory should protect investors. But even the regulated exchanges will be affected if this happens.

At the moment, the FCAs proposed ban is under consultation, meaning industry bodies have the opportunity to give their feedback.

According to Reuters, the FCA will announce the final rule changes in early 2020.

Want more Hard Fork?Join usin Amsterdam on October 15-17 to discuss blockchain and cryptocurrency with leading experts.

Published October 7, 2019 14:27 UTC

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International exchanges campaign against UK cryptocurrency derivatives ban - The Next Web

We have made a selection of 7 top cryptocurrency traders to follow on Twitter.

Whether youve been inside the cryptocurrency space for a longer time, or youve just decided to start looking around, this selection will be interesting for everyone. Weve made a fine selection of very credible, solid and established names, combined with some highly-skilled next generation traders. Be sure to check them all out and give them a well-deserved follow!

Twitter

Murad is a very reputable cryptocurrency trader from the Adaptive Capital fund, a cryptocurrency fund that is actively trading cryptocurrencies. As a renowned name in the Crypto Twitter world, Murad is best known for his charts, but he also often shines a very interesting light on cryptocurrency debates and regularly brings newsworthy information.

Twitter

Formerly known as @crypToBanger, PaTo has been a notorious Crypto Twitter trader for quite some time. PaTo is mostly famous for his elegant high time frame macro charts, often accompanied by flashy graphics and his sigNatuRe WriTing stYle.

But dont be fooled by his flashy appearance, PaTo really knows his trading and often spots wonderful buying opportunities and hidden small-cap gems.

Twitter

YoungTilopa will be a new name to many traders out there. Fortunately, the amount of followers doesnt say much about your trading skills and YoungTilopa is the living proof. Tilopa has very clean charts and often accompanies them with a very interesting order book analysis. Definitely someone to keep an eye on and a very interesting one to follow.

Follow @BeInCrypto on Stocktwits for the lastest trading news!

Twitter

FilbFilb might just be the most productive trader of the lot. Not only does he tweet on a very consistent basis, but filbfilb also has a very active Telegram channel, where he further elaborates on his trades and ideas. As a bonus, filbfilb also gives out a weekly report/newsletter for free. His charts are a great way to help get a grasp of what is going on with the markets.

Twitter

NebraskanGooner is a cryptocurrency entrepreneur and highly-skilled short term trader/scalper. Being on the Glassnode Trade Advisory Board, he also often shares very interesting on-chain metrics with his followers. With 32k followers, hes already made quite a name for himself, but he definitely deserves a lot more.

Twitter

We couldnt make this list without mentioning CryptoCred. For anyone trading cryptocurrencies, whether youre a beginner or an experienced trader, CryptoCred has great content for you. With several trading guides and immensely valuable trading videos, hes probably the go-to for every cryptocurrency trader that wants to learn something new. Apart from this, he also tweets very interesting charts, instantly helping you to understand current price action.

Twitter

D4rkEnergY is another highly-skilled cryptocurrency trader that made a name for himself on Tradingview, where his excellent charting used to earn him a spot among the All-Time top-ranked traders. His Twitter timeline is filled with interesting charts and great trading set-ups.

D4rkEnergY is also currently leading a very profitable cryptocurrency signals trading group, called Aedge. All his trade signals are well-documented and available for everyone to see.

BeInCrypto is the first fully transparent cryptocurrency news and trading platform no hidden, unlabelled sponsored articles masquerading as real news. We bring you high-quality content and are on top of things to bring you breaking news before anyone else. If you havent done so before, have a look around on our website and make sure to follow us on Twitter!

Images are courtesy of Shutterstock, Twitter.

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7 Top Cryptocurrency Traders to Follow on Twitter - BeInCrypto

Cryptocurrency buying and selling got a boost with the recent decision by Starbucks to accept cryptocurrencies as payment for food and drink which only adds to the pressure for more businesses to do the same.

Its not an easy decision to make, especially for anyone without strong instincts for digital technology; and there are risks as well as advantages.

Cryptocurrencies are a digital invention, an asset created, held and traded entirely online without any underpinning by Governments. They are not a fiat currency, one issued by a Government with all the security, regulation and visibility that implies. Quite the reverse. Cryptos exist because people have willed them into being and find them useful enough to value accordingly. Furthermore, they rarely come up for air to be converted into real money, so our collective experience of them is low.

Their value is also volatile, swerving alarmingly from dizzying highs to uncomfortable lows since Bitcoin, the first and most famous, arrived just over 10 years ago.

There is also an invisibility to crypto that can be unsettling, with some iterations turning out to be more risky than others.

But there are solid commercial benefits. Crypto allows for instant, borderless payments. This can be an advantage for businesses that trade globally and particularly those with an e-commerce platform.

They are also not bound by a single countrys exchange rate or even location, making it easy for companies entering a global market to accept payments from anywhere in the world. In addition, they avoid banking transaction charges.

And there is the marketing edge. The very fact of accepting crypto communicates something dynamic and engaged about a business; and being able to offer several payment options, including this one, helps secure trade as well as to stand apart from rivals.

There are certainly plenty of cryptos out there, but Bitcoin and Ethereum are the most well-known and understood. This make them arguably the most sensible to work with, at least initially, if you take the plunge.

It is perfectly possible to set up digital wallets and accept crypto payments directly. But that means also accepting all the associated risk and technical know-how required.

Few businesses will want to get that involved in the infrastructure associated with holding the coins, let alone working out what they are worth at the crucial moment an invoice is raised. Fortunately, there are now a number of large, well-regarded exchanges. These essentially absorb the risk of accepting digital payments and make the necessary transfers, including translating the crypto into the fiat amount billed.

BitPay, for example, is a payment processing provider that will convert a traditional fiat currency fee into a Bitcoin equivalent as soon as it is issued.

That Bitcoin price is then fixed for 15 minutes before being automatically renewed using the same process. This is necessary because of the value fluctuations.

The invoicing firm then receives its payment electronically through BitPay, but as fiat money.

The advantage for the invoicing business from using a reputable exchange is reduced risk and the likelihood of prompt payments, particularly as clients respond to the 15 minute conversion windows. And for some, who bought Bitcoins when they were cheaper that current prices, there is the prospect of goods or services costing them far less to actually pay for. A win-win.

Although paying for services by crypto may seem something of a niche currently, it is hard to think that will remain the case for much longer, especially as the world moves to paperless transactions in fiat currencies.

Issues around risk are also likely to diminish. Governments are fully engaging with the highly complex task of trying to regulate an essentially invisible, stateless currency; and with regulation will come oversight and a reassuring legitimacy. In fact, something to bank on.

Jon Wedge is a financial services partner at accountancy firm and business advisers BKL.

Further reading: The cryptocurrency investors guide

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Cryptocurrency buying and selling and how it works - What Investment

Public retail adoption of stablecoins might occur more rapidly in countries without a strong banking infrastructure.

The 2017 Global Findex database, launched with funding from the Bill and Melinda Gates foundation, points to advances in digital technology that are key to achieving the World Bank goal of universal financial access.

Stablecoin initiatives are developing at a rapid pace.Adoption of stablecoin, a form of collateralized cryptocurrency pegged to a stable fiat currency like the yen or dollar are being debated by central banks.This is a good signregulators are discussing how blockchain style coins can become mainstream payment options.However in developed economies where the banking sector is more established, regulators are still cautious of risks.

While the basic use-case for the mass adoption of stablecoin is as a potential fiat-currency replacement, how those coins are implemented is hotly debated.Coins collateralized by traditional currency, like the euro, United States dollar or the pound can be structured in different ways.

Based on the European Central Bank (ECB) paper In Search For Stability In Crypto-Assets: Are Stablecoins The Solution? (August 2019), stablecoin adoption, particularly in well-regulated countries, for example counties in the European Union, would need definitive rules governing the accountability of the issuer, decentralization responsibilities, and clear guidelines for what underpins the value of the asset before widespread implementation can occur. Last months statement by the French finance minister regarding the intention to block Libra development in France makes it clear that stablecoin adoption has challenges.

At the same time institutions like the Financial Markets Authority (AMF), part of the French financial regulatory system, announced in July 2019 plans to create a voluntary regulatory framework for crypto firms.

While Libra may face an adoption risk among European nations, it seems clear that coin development will continue.

Recently the president of the ECB said in a letter, dated September 26, 2019, that it is exploring the potential of crypto assets and assessing their impact to monetary policy and retail implications.In the letter the ECB president, Mario Draghi, said that new stablecoin arrangements (such as Libra) backed by large technology companies could have potential for widespread adoption.

However in the same letter a number of concerns were cited where stablecoin initiatives were untested and gave rise to a host of risks and issues.

For proponents of stablecoin adoption, central bank media coverage combined with Facebooks determination to create Libra suggest collateralized coins will have a future, especially in retail payments, sometime in the coming years.

But where can stablecoin trading and exchange find a foothold as a true monetary option in the short term?

Potential adoption can have a competitive advantage in countries where currency volatility, compounded by a poorly regulated banking system or nonexistent financial infrastructure, is the norm.Stablecoin trading can provide access to banking with less volatility, compared to economies where the financial system is viewed with a lack of trust. Venezuela is a good example.

The 2017 Global Findex database, lunched with funding from Bill and Melinda Gates foundation, points to advances in digital technology are key to achieving the World Bank goal of universal financial access. The same report highlights that 1.7 billion people lack a bank account.Stablecoin can become a path for the unbanked to create a stable store of monetary value and exchange. If access to digital technology increases across all nations, the implication for the unbanked and poor may well be widespread crypto adoption over local and less resilient financial systems.

An adoption strategy to watch is where stablecoins can offer an alternative to hyperinflation, offer price stability and financial access to the public.

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How Adoption Of Cryptocurrency Stablecoins Can Open Access To The 1.7 Billion Unbanked and Poor - Forbes