The digital currency in the proposal would be available to a limited group of financial entities. The BoE sees great benefits in a digital euro, these benefits and advantages include the automation of interest payments.

The Bank of Spain (BdE) published in its Financial Stability Magazine no. 40, an analysis of the improvements that a wholesale digital euro, based on what it calls bitcoin or blockchain (CBDC) technology, would bring to the financial system.

The publication clarifies that there would be greater efficiency, transparency, and traceability of all types of operations, in particular, multi-currency ones.

The text states that a wholesale sovereign digital currency (WCBDC) would be the most feasible option. “wholesale” means that it is a digital currency that would be available only to a limited group of financial intermediaries.

In the case of a retail sovereign digital currency (RCBDC), which would be accessible to all, it would imply a more complex process, with a high group of potential users, and with a wide variety of edges and implications in many areas.

The magazine states that the main goal of this digital currency would be to bring citizens a risk-free means of payment that meets their needs.

A WCBDC Would Impact the Eurosystem

The analysis clarifies that with the emission of a WCBDC, the Eurosystem, which is the monetary authority of Europe funded by the European Central Bank and the central banks of each country in the eurozone, would receive a direct impact on its functions since it is the responsible for monetary policy, supervisor, of financial institutions and promoter of the functioning of payment systems.

The Eurosystem is currently creating a campaign to promote efficiency, innovation, and greater integration between Europe’s financial markets. That is why the emission of a blockchain-based ‘digital euro’ is so important.

The bank’s analysis is also focused on identifying precisely how the emission of a currency of this kind would impact the current Financial Market Infrastructure (MFI). The text argues that international multi-currency transactions are manual processes, expensive, hard to handle and track. They are finding it hard to know both the actual date of availability of the funds at the destination, as well as the exact amounts of the operations.

Synchronizations of the Operations Represent a High Cost for the Entities

In contrast, the analysis shows how, with the use of a blockchain, this type of transaction would be possible, it would improve the user experience, reduce time, complexity, and costs with greater transparency; this by having more complete information that would allow knowing the status of transactions in real-time.

Also, the use of blockchain would represent a great chance in terms of reducing counterparty risk, since it can be settled directly in central bank money, and reducing the costs of international operations. Counterparty risk is the probability that one of those involved in a transaction may revert on its contractual obligation in credit, investment, and commercial transactions.

By: Jenson Nuñez

Biden’s plan calls for public debt of up to $ 8.2 trillion by 2031. The dollar has depreciated more than 3,600% against bitcoin, in just 4 years.

The policy of issuing debt in the United States of America could increase its intensity with Joe Biden leading the presidency. Leaked documents allude to a budget request for next year in the order of $ 6 trillion in public spending.

According to a New York Times report, Biden’s plan calls for higher public spending than levels not seen since the ’40s. In addition, the deficiency of the North American country would be around 1.3 trillion dollars during the next ten years.

The report extracts information from documents obtained by the New York Times editorial staff, which is why the official announcement of Biden’s request for a budget increase is still awaited, which would seek to increase public spending to cover its policy of expanding the scope of social security, and infrastructure improvements.

The spending levels foreseen in Biden’s measures would only make public spending grow even more in the years to come. The budget is expected to reach an even higher amount shortly, at about $ 8.2 trillion by 2031.

Although there is no direct correlation, the issuance of public debt, the chance for increasing inflation, and the fall of the dollar indices are features with potential upward momentum for Bitcoin’s price.

Since 2017, the highest point of the dollar index (DXY) was in early 2020. At that point, the DXY was above 99. Since then, the indicator of the power of the dollar has fallen again to its lowest levels of the last years, around the 90s, according to investing data.

Bitcoin, meanwhile, is facing a bull cycle that saw it break its all-time high of late 2017. Now, after a steep drop to over 25% in just a week, bitcoin remains 50% above that previous all-time high.

A Dollar in Full Depreciation against Bitcoin

The depreciation of the dollar becomes more visible when measured against bitcoin, taking into account that the US currency is still the main reserve currency in the world, and the cryptocurrency is being used as a store of value by large investors.

In a matter of 4 years of the mandate of Biden’s predecessor, Donald Trump, the dollar crumbled down more than 3,600% in comparison to bitcoin.  Last January, When Biden arrived at the White House; bitcoin was trading at over $ 34,500.

Now, after falling from its peak of $ 64,000 set in mid-April, the cryptocurrency is drifting around $ 40,000, still upon the previous value at the beginning of the year. Monetary emission policy accelerated as a result of the crisis caused by the virus. Still, with Trump leading, the United States of America went on a very aggressive pace of debt emission.

By Jenson

The regulators are analyzing at least 11 requests to approve that type of fund. Following the crash, Canadian ETFs issued alerts for the existing “market disruption.”

In recent days, the US Securities and Exchange Commission (SEC) again refused to authorize Bitcoin exchange-traded funds (ETFs). One of the reasons for rejecting the requests from mutual funds and managers could be the recent crash in the cryptocurrency market.

Jake Chervinsky, a lawyer and advisor to the Compound Finance platform, defends the hypothesis that the SEC made this decision. The executive considers that the resounding collapse of last week would be an ideal argument to reject the applications.

“The speed and seriousness of the drop is an easy excuse for the SEC to reject Bitcoin ETF proposals this year. Price action seems to drive the trading of derivatives on unregulated offshore exchanges, which has worried the SEC from the start. Although I am not ruling out an ETF yet, the chances are low,” Chervinsky explained.

The regulatory specialist believes that the SEC would not approve a Bitcoin ETF without trade monitoring of “regulated markets of significant size.” According to Chervinsky, the market crash was evidence that unregulated markets are still the most important.

Bitcoin ETFs Must Go Along a Thorny Path

The SEC has rejected and postponed decisions on Bitcoin ETFs for years. The market crash would not be the only scenario keeping the commission from approving such an instrument.

The crash in prices shook the recently approved Canadian Bitcoin ETFs, forcing their managers to issue alerts. The SEC would not approve the trading of these funds due to these types of situations.

The Securities and Exchange Commission is currently looking at around 11 applications for Bitcoin ETFs. This financial instrument could open the doors to the pioneering cryptocurrency among US retail investors. The SEC’s rejection of these funds has affected the price of the first cryptocurrency in the past.

The most recent case of requests for ETF approval is from investment manager VanEck. However, the US regulator postponed this decision until next June. The waiting list also includes Galaxy Digital, Grayscale, New York Digital Investment Group (NYDIG), and investment bank Morgan Stanley.

These companies hope that the new Chairman of the SEC, Gary Gensler, will change the policy that the regulator has maintained. In this way, the official would begin to approve these investment products in the United States. He has received training in new technologies and has called Bitcoin “the new form of gold”.

US regulators have been concerned about Bitcoin and other cryptocurrencies because of their anonymity and decentralized nature. The authorities fear that these types of assets facilitate illegal activities such as money laundering and terrorism financing. For that reason, they have always sought to regulate their use in the US territory.

Unlike what happens in the United States, Canadian operators of the Toronto Stock Exchange are already trading Bitcoin ETFs. In fact, the launch of an ETF for Ether, the Ethereum network’s native cryptocurrency, was already underway in February.

By Alexander Salazar

The main intention is to offset the carbon footprint that is associated with BTC. It is the ideal fund for investors that care about the natural environment.

The race for US bitcoin (BTC) ETFs keeps going on and on. This Monday, May 24, there is an announcement claiming that the digital asset hedge fund One River applied to the United States of AmericaSecurities and Exchange Commission (SEC) for permission to release an ETF.

The difference of this new bet from One River, with the other bitcoin funds that are awaiting the SEC, is that it does not follow the price of bitcoin, it instead follows a special index, named MVIS One Carbon Neutral Bitcoin Index. River, the company explains that the index takes into consideration both the price of bitcoin in the markets and the carbon credits.

One River explained that the sole intention is to balance the carbon footprint associated with bitcoin by purchasing and withdrawing the carbon credits necessary to account for the estimated carbon emissions associated with the bitcoins that the fund is currently holding, according to the document delivered to the SEC.

One River joined efforts with MOSS in April; Moss is a carbon credit platform. This union represents a set of financial instruments that will help to create a reduction in the carbon dioxide emissions made by the mining procedures. This move intends to establish order as well as to balance the emissions made elsewhere.

The goal is to allow climate-conscious investors the chance of getting advantages and benefits from exposure to Bitcoin and Ethereum while offsetting their carbon footprint, they stated in a statement.

One River and MCO2 Tokens Purchase

 One River also mentions in the announcement an agreement established with a company located in Uruguay, called LIRDES. The association intends to purchase MCO2 tokens that represent certified reductions in greenhouse gas emissions.

One River explained to the SEC that the MCO2 tokens issued by Moss are encrypted and tokenized assets using blockchain and are remaining into a registry managed by Verra, which is an organization that sets and administers standards and programs related to carbon credits.

As highlighted in the document, with each MCO2 token in circulation, a claim can surgeon a certified carbon credit kept in an aggregated group of carbon credits within the Moss account in the Verra Registry.

Bitcoin Miners Propose to Offset CO2 Emissions

After a series of tweets and statements made by the billionaire Elon Musk a few weeks ago about the digital mining of Bitcoin and how these activities create a serious environmental impact, many companies have released interesting proposals that could benefit the environment in parallel with bitcoin mining and marketing.

The company Greenidge Generation announced that, as of June 1, it will compensate 100% of CO2 emissions resulting from Bitcoin mining. In that sense, they indicated that they will buy voluntary carbon offset credits from a portfolio of polluting gas reduction projects.

By: Jenson Nuñez

Miller considers that Bitcoin is secure and advised the community not to withdraw as the drop in its price is something normal. He was initially skeptical about Bitcoin, but he has been supporting it since the current global economic crisis started.

The recent drop in the price of Bitcoin led many investors to share negative thoughts about its future. However, Bitcoin proponent Bill Miller showed his support for the cryptocurrency in an interview for CNBC.

Miller commented that Bitcoin is secure regardless of its current price and advised the community not to withdraw. He noted that events like the recent drop in the price of the pioneering cryptocurrency are something normal. Furthermore, he said that investors should find it more attractive as its value decreased significantly.

The founder of investment management firm Miller Value Partners admitted that he does not normally talk about the value of Bitcoin. However, now the market is under great pressure due to obstacles that used to be quite unusual.

Bitcoin and the Other Cryptocurrencies on the Market Collapsed

On May 19^th, the cryptocurrency market returned to the high volatility that made it famous. The prices of major cryptocurrencies dropped but they recovered some of the loss on the same day.

In addition to the high volatility, there were also opinions from big investors who said that it was not worth investing in the sector. However, other renowned investors took advantage of the moment of volatility to justify the belief in digital assets.

Bill Miller’s Position on Bitcoin in the Past and Now

Although Bill Miller was initially skeptical about Bitcoin, he has recently been supporting the first cryptocurrency on the market. That has happened since the COVID-19 pandemic caused the current global economic crisis.

In 2020, Miller highlighted that institutional and corporate demand for Bitcoin is growing faster than the supply of the crypto asset. He also predicted that major banks would own a portion of the cryptocurrency. Likewise, he noted that Bitcoin has outperformed all major asset classes over the past 10 years.

The American philanthropist also opposed Warren Buffett, who compared Bitcoin to “rat poison”. In this regard, he said that Buffet could be right as Bitcoin is the poison to kill the rat called “cash”.

Miller noted that the fall in the price of Bitcoin could have “extreme consequences” for the financial world. However, he is confident that it will reach its previous levels very soon and calm will return.

He said that the current movement of Bitcoin can also be extreme for the stock market. However, he explained that it is a routine pullback for the main cryptocurrency on the market. Some analysts have also mentioned that Bitcoin suffered numerous drops during its huge 2017 bullish market.

Another billionaire who spoke in favor of cryptocurrencies was Michael Novogratz from Galaxy Digital. Regarding the drop in the price of Bitcoin, he told CNBC that Bitcoin could take a while to recover. In this regard, he agrees with the opinion of renowned analyst Willy Woo, who believes that Bitcoin will recover “within several weeks.”

Novogratz also highlighted that the cryptocurrency market is undergoing capitulation. This is a pessimistic scenario where investors get rid of their positions and sell their crypto assets near their lowest value.

By Alexander Salazar