The fall in the price of cryptocurrencies has led to the creation of an alternative digital currency aimed at helping users better understand this technology and its risks, as well as to issue a Visa credit card that allows converting cryptocurrencies into fiduciary currencies
The prices of cryptocurrencies fell slightly after having registered the maximums of 2019 on Wednesday last week, after it was disclosed that Visa (NYSE:V) is going to launch a card to operate with cryptocurrencies through the Coinbase stock exchange, according to investing.com.
The market is said to remain static whilst investors wait to verify if digital currencies will be able to keep their impulse.
Last Wednesday, the total market capitalization of cryptocurrencies registered historical maximums at US $186,000 million, according to Coin MarketCap, before reversing its course.
Bullish and Bearish Movements
The bullish tendency started in April, after the prices of Bitcoin soared without any apparent reason, and virtual currencies seem to cling to those gains.
Bitcoin has decreased a 1.2% to US $5,144.10 in the last seven days, after registering the maximums of 2019 at US $5,372, according to Wednesday’s investing.com index on Wednesday.
The total market capitalization of cryptocurrencies in general increased to US $176,000 million by the moment of writing these lines.
In the last seven days, Ethereum has plummeted a 6.8% to US $166.67 and XRP an 8% to US $0.32581, while Litecoin has dropped a 7.5% to US $82.54.
The bearish movement occurred after it was informed that the International Monetary Fund (IMF) and the World Bank (WB) had launched a digital currency to study the way that alternative currencies worked and that Visa had associated with Coinbase to offer a credit card to the users in the United Kingdom.
Visa Credit Card
The credit card issued by Visa is said to allow Coinbase users to change their balance into Bitcoin, Ethereum and Litecoin. The card works by converting the cryptocurrency into fiduciary currency at the moment of using it, so the trader receives the payment in the local currency.
“This is the first credit card that is linked directly with one of the biggest cryptocurrency stock exchanges, allowing people to spend their capital in digital currency directly from their Coinbase account,” said Coinbase in a communication. “Previously, the available cryptocurrency cards require users to load a specified quantity of cryptocurrencies onto their cards, which adds a point of friction to the process.”
LearningCoin
Meanwhile, the IMF and the World Bank have launched the currency LearningCoin, which the Bank will use to understand the technology that underlies behind these digital assets. The currency does not have any monetary value and only the IMF and the World Bank will have access to it, according to what the Financial Times has informed.
All the same, the news has been received very willingly by cryptocurrency enthusiasts, as it could help regulators and financial control bodies, respectively, to understand the risks associated with Bitcoin and other assets and to contribute to a more coherent regulation.
This trial currency would also result in smart contracts and it could help the bank to combat money laundering.
By Willmen Blanco
