Japan to Prioritize Investments in the Metaverse to Revitalize Its Economy

Japanese Prime Minister Fumio Kishida, in his public policy speech, emphasized the need to expand the social integration of Web 3.0, including services involving the metaverse and NFTs.

Japan’s Prime Minister said the country would prioritize investments in digital technology, including non-fungible tokens (NFTs) and the metaverse, during an annual address to the country’s legislature.

Prime Minister Fumio Kishida discussed the current state of affairs in Japan, from its response to the pandemic to how it would deal with rising inflation and interest rates, in a speech outlining public policy at the 210th session of the National Diet of Japan on October 3.

Japan Will Prioritize Web 3.0 Development

One priority, the Prime Minister emphasized, would be to focus on supporting the social implementation of digital technology. He added that this would involve promoting the expanded use of Web 3.0 services using the metaverse and NFTs.

Highlighting these efforts, Kishida referred to “Summer Digiden Koshien 2022,” a competition held last month in which participants competed to solve local challenges using digital technology.

“A lot of people participated and it was a tournament where you could feel the growing expectations of regional revitalization through digital utilization,” said Kishida.

Ultimately, the idea is to compete with each other, in an effort to make the “National Digital Garden City Concept” a reality.

It should be remembered that during this award ceremony, attended by Prime Minister Kishida, five organizations were selected along with their respective proposals for the application of new digital technologies. The Japanese Prime Minister assured that the government would extend these initiatives throughout the country to promote its digital transformation.

New Administration Boosts Crypto Efforts

Upon taking office in 2021, Kishida made Web3 development one of the pillars of the country’s economic revitalization. In April, the Kishida Liberal Democratic Party released an NFT White Paper, outlining the country’s strategy for Web 3.0.

In addition to including policy recommendations that promote a national strategy for Web 3.0, the white paper also recognizes the importance of using the country’s distinctive intellectual property, such as animation and video games, to spearhead its Web3 efforts.

Subsequently, the Kishida administration established a “Web 3.0 Policy Promotion Office”, in collaboration with the Ministry of Economy, Trade, and Industry (METI), to integrate Web 3.0-related departments within the ministry. This Office, according to the METI website, “is responsible for the business environment such as funding, taxation, business entities (vehicles), content, sports, fashion, art, etc.”

One of the key objectives that the Japanese ministry pointed out in relation to the policy office dedicated to Web3, is to create workspaces that respond to technological changes and that stop the exodus of professionals and entrepreneurs who want to explore the opportunities of the new generation of the Internet, the Web3.

The administration’s recent efforts to advance its crypto-related goals even convinced Binance, the world’s largest cryptocurrency exchange, to try again to enter the market in the country, after failing to do so four years ago.

By Audy Castaneda

Bendik Norheim Schei Believes Bitcoin Will Reach USD 25,000 If It Remains above USD 22,500

Vetle Lunde believes that extreme volatility would hit Bitcoin in both directions, although its current volatility is low. Novogratz said that the rate hike campaign of the Fed had affected the status of Bitcoin as a hedge against inflation.

After suffering steady drops for several weeks, the price of the pioneering cryptocurrency found relief as it reclaimed USD 20,000. Over the last few days, the situation has been favorable for most crypto assets, which have accumulated significant gains.

Market participants believe that the price of Bitcoin (BTC) will rise further as the overall sentiment around it seems optimistic.

Bitcoin is trading at around USD 20,229 and has accumulated a 4.0% gain over the last week. While its daily trading volume is above USD 31.71 billion, its market capitalization is about USD 387.81 billion, according to CoinGecko.

Various Factors May Drive the Price of Bitcoin Higher or Lower

According to Bendik Norheim Schei, research leader at Arcane, Bitcoin might reach USD 25,000 if kept trading above USD 22,500. The well-known analyst told financial news magazine Barron’s that he maintained a bullish stance toward the crypto asset.

Contrary to Norheim, Vetle Lunde, another analyst from Arcane, believes that Bitcoin will undergo huge volatility soon. He said that extreme volatility would hit the cryptocurrency in both directions although its current volatility is low. Traders are managing leverage in a limited trading environment, which leads to expectations around that volatility level.

The largest cryptocurrency by market capitalization has held its price above USD 18,000, indicating the support level is robust. The price of Bitcoin has risen above USD 20,000 mainly due to the profit pattern of US stocks over the past few days.

Market participants expect the US Department of Labor to release the Non-Farm Payroll figures in the coming days. That report provides data on the number of people employed in the previous month, which may influence upcoming Fed rate hikes.

The Bitcoin Price May Pull Back If the Fed Eases Its Policy

The price of Bitcoin will rise if the US Federal Reserve (Fed) refrains from aggressively raising rates to fight inflation. That was a recent statement by Mike Novogratz, the head of digital asset merchant bank Galaxy Digital.

The expert said that Bitcoin and other assets pulled back when Jerome Powell started hitting inflation on the head with a sledgehammer. He explained that the price of the leading cryptocurrency would unfold immediately after the chairman of the Fed gives up that fight.

Novogratz said that the rate hike campaign of the Fed had affected the status of Bitcoin as a powerful hedge against inflation. He added that their policy had a more significant influence through correlation with traditional financial assets than through inflation.

Anthony Scaramucci, the director of SkyBridge Capital, does not believe Bitcoin is a hedge against inflation. The expert considers the pioneering cryptocurrency first has to attract one billion users to obtain that status.

In August, Jim Cramer, the former Cramer & Co. hedge fund manager, said the tight monetary actions by the Fed would eliminate speculative cryptocurrencies.

George Soros, a former Quantum associate, and billionaire Stanley Druckenmiller predicted the rebirth of cryptocurrencies amid the collapse of the fiat-based economy. Besides, analysts at Grayscale said that the crypto winter might end at the end of March 2023.

Cryptocurrencies like Bitcoin are increasingly relevant in the global economy, which financial experts know very well. The recent recovery in its price provides hope to investors who view it as a hedge against inflation.

By Alexander Salazar

Regulatory Laxity in Italy Could Put EU Crypto Consumers at Risk

Italy could provide an entry point for riskier platforms to operate across Europe.

The Italian financial regulator is approving licenses for cryptocurrency exchanges without properly examining them, according to a report.

The Organismo Agenti e Mediatori (OAM), Italy’s financial agent supervisory body, registered 73 crypto firms as virtual currency service providers over the summer, having initially made it available in May.

At the time of registration, several major crypto firms including Coinbase, Binance, and Crypto.com announced that they had received regulatory approval to operate in Italy.

Although being registered theoretically means that these companies adhere to the country’s anti-money laundering regulations, none of them had been thoroughly investigated by the authority before receiving approval.

The OAM confirmed that it is still working to determine what relevant data it should collect from companies, which it probably won’t start doing until next year, meaning that Italian supervisory authorities are not currently monitoring any transactions that take place in these exchanges.

The registry does not imply that companies are actually setting up shops in Italy.

Binance, for instance, has an address in the southern Italian province of Lecce, according to the register, under the entity name Binance Italy LLC. However, the company does not have any big plans for Office.

Crypto.com and Coinbase both list the same local address in the OAM registry in the Italian city of Parma. OAM told CoinDesk that both companies have “permanent establishments” in Italy, so they comply with the registration requirements.

Registration in Italy: a “Light” Touch

Compared to other European Union countries, Italy’s registration process is “very light,” said Francesco Dagnino, managing partner of Milan-based law firm Lexia Avocati, which has handled 16 applications.

According to the lawyer, the registry does not require compliance with any special requirements, including operational integrity or anti-money laundering (AML) standards. “As far as I know, Italy is probably the jurisdiction with the simplest process. It’s just a record,” he said.

The OAM has been really busy. While regulators are commonly criticized by industry for delays in processing applications, Italy’s OAM has quickly added 73 crypto firms – including those listed above – to its new roster for virtual currency service providers, which only was opened in May.

Meanwhile, in France, Crypto.com’s recent approval process demonstrated the efforts other EU regulators go through before giving approval.

The company first had to receive authorization from the Prudential Control and Resolution Authority (ACPR), a financial regulator operating under the auspices of the Banque de France.

The Autorité des Marchés Financiers (AMF) then reviewed the application, largely focusing on anti-money laundering (AML) and preventing terrorist financing, before registering Crypto.com as a digital asset service provider. (DASP) in France.

Risks Posed by MiCA Legislation

While this certainly poses a risk to consumers using these services in Italy, under upcoming European Union regulation, it could potentially affect other constituent countries as well.

Earlier this week, it was reported that the EU Markets in Crypto Assets Bill (MiCA) was finalized and left open for comment.

If passed, this legislation would only require crypto businesses to receive regulatory approval from a national authority to operate across the EU.

Consequently, if Italy does not strengthen its regulatory standards by the time the legislation is passed, it could provide an entry point for riskier platforms to operate across Europe.

By Audy Castaneda

There Have Been More Cryptocurrency Investments by Institutional Investors over the Last Two Weeks

Institutional investors had not bought USD 100 million worth of cryptocurrencies in one week for many months. Nobody expects the price of Bitcoin to rise now, but those actors show some activity in the market again.

Institutional entities like private and hedge funds had one of the busiest periods over the last two years. The activity recovered throughout September and still seems to accelerate, but it is still far from the frenzy in November and December 2020.

The unknown Windward Fund LP, owned by FirstWatch Crypto, focuses on the least wealthy of the wealthy. Forty-seven people have contributed USD 6 million to that company, according to Daniel McGlinn, one of its executives.

Slightly differently, Stronghold Digital Mining raised USD 9 million worth of stock and options from only two investors. Despite not being a direct purchase of Bitcoin (BTC), the sale of shares may allow holding the cryptocurrency, becoming an indirect investment.

The recent USD million increase to the Ethereum Index Fund of Fidelity may be more intriguing as only one client did it. That shows low demand, an intelligent person, or a Fidelity strategy to cause people to talk about it.

However, its Bitcoin fund raised USD 62 million, more than before NYDIG raised USD 720 million in its Bitcoin Institutional Fund. It is relevant to know that this started on September 22nd with a USD 20 million purchase of Bitcoin and Ether (ETH).

This type of investor had not bought USD 100 million worth of cryptocurrencies in one week for many months. That is also the first time they have purchased close to a billion in two weeks for two years.

Institutional Investors Return to Buy More Cryptocurrencies

After dropping for months until June, the following months have allowed assessing whether it is possible to invest in Bitcoin again.

Amid the turmoil of fiat currencies, a mini-frenzy in corporate bonds, and intense speculation in China, Bitcoin recently found some ​​calm. It even became a little more prominent than stocks, which led some to wonder whether Bitcoin is a hedge against inflation again.

That situation is not unusual, as institutional investors last emerged from late 2020 to the end of 2021 when Bitcoin reached record prices.

Nobody expects the price of Bitcoin to rise while it is bottoming out amid a quiet environment. However, those institutional investors seem to be showing some activity in the market again.

Those well-informed investors believe there might be further drops, but the price might recover in due time. At the current stage, many fall into the trap of waiting for Bitcoin to fall, although it is slowly rising.

Some sophisticated investors are willing to take further risks, especially since the second year of the bears is in a flat line. However, it is more of a slow rally, with some mini-bulls finishing above the low of that cycle.

No one can speculate that the train may leave soon as the bulls remain calm. However, the years of the Christmas bears are always a good time to go shopping.

Since the past does not predict the future, nobody knows whether this cannot occur again. However, the risk-reward calculus at this point may indicate it is doing well, although it seems dead. Of course, it is only a matter of time before seeing how the market influences the price of the pioneering cryptocurrency.

By Alexander Salazar

Elon Musk Decides to Buy Twitter, Causing DOGE to Rising by 10%

Musk may have decided to buy Twitter due to his unwillingness to face a lengthy legal battle. Shortly after rising, the price of DOGE increased buying pressure, moving toward the USD 0.065 barrier.

Elon Musk recently said he wanted to pay the agreed price of USD 54.20 per share for the social networking service Twitter. The billionaire entrepreneur had reversed the acquisition, which would cost him USD 44 billion, citing the number of bots on the platform.

However, Musk seems to have decided to buy Twitter because he did not want to face a lengthy legal battle. Although his trial with the company would begin on October 17th, the billionaire recently communicated this new takeover bid.

Musk has not officially commented on that change of mind, but he said the acquisition would allow the creation of the X.com Company.

Over the last few months, Musk has added fuel to the fire, pointing out that Twitter has some systemic problems. However, he did not seem to find a way to evade the situation, considering he had few chances to win the trial.

The Price of Twitter Stock Skyrockets after the Announcement

Shortly after the announcement, the price of TWTR stock rose by 18% before the suspension of the trade. The stock has appreciated by 23% over the last 24 hours.

However, Musk recovered a recently abused social networking service. Besides the legal battle, it has faced statements from the whistleblower Peiter Zatko, who said the company had misled the public and politicians.

The acquisition of Twitter might not occur, as Elon Musk might make another reversal. However, things seem to be going all right for the billionaire to become the new owner.

The Price Action of the Meme Coin DOGE after the Announcement

After dropping significantly at the end of September, the price of Dogecoin (DOGE) has remained stable. Its support was initially around USD 0.059, but its attempt to go higher failed.

The price of DOGE challenged its previous low of USD 0.059 again. In addition, a slightly higher low suggests a further bullish move might be approaching soon. Therefore, the meme coin started trading steadily higher and returned above USD 0.06.

The bullish move continued until it forked at the USD 0.061 level. Shortly after rising, the price action of DOGE increased buying pressure, moving toward the USD 0.065 barrier.

Meanwhile, DOGE is trading at around USD 0.064357 and has accumulated a 6.4% gain over the last 24 hours. While its daily trading volume is above USD 836.19 million, its market capitalization is about USD 8.54 billion, according to CoinGecko.

Investors should research cryptocurrencies like DOGE before buying them to know their all-time high, behavior, and possible future price. That will allow them to find the most convenient investment opportunity to minimize the risk of losing their money. It is a matter of time before seeing how the market influences the price of the popular meme coin.

By Alexander Salazar

Apple Pay to Start Operations in Chile End of October

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Apple has highlighted that one of the most important aspects of its wallet will be operational security.

Apple Pay is preparing to debut in the Chilean financial system. The North American giant’s new commitment to digital payments has the support of at least half a dozen Chilean banks.

The president of Banco Santander Chile, Claudio Melandri, indicated the possible date of the debut of the multinational’s digital wallet. However, the premiere of Apple Pay will not be limited to a single entity, six other banks will also offer the service, leaving the financial program just a few steps away from becoming a reality.

Apple Pay is the new bet of the North American technological giant for the business of means of payment; Apple Pay’s goal would be to replace physical cards and cash in stores. According to information from FinteChile, -the main FinTech Hub in the country-, Apple would have been working with several Chilean banks for several months to make its debut and only the approval of the US firm would be missing for the official launch.

In addition, when asked by a user on LinkedIn regarding when this digital wallet could start operating at Banco Santander; Claudio Melandri, president of the entity replied that “They have it scheduled for the end of October.”

The project seeks to establish itself as the new and best option in terms of payment technologies in the country and the region. For now, it can only be said that the project has considerable support; having the collaboration of at least seven banks in the country. Customers of these banks will be able to have the option of enrolling their cards in Apple Pay.

Apple Pay Seeks to Be the New Option in Chile

The general manager of Scotiabank Chile; Diego Masola, is one of those who support the initiative and called on those interested to wait.

“Apple Pay is a great means of payment for Chile. We have to wait.”

Mauricio Méndez is of the same opinion; digital payments lead by Cencosud Scotiabank, who stated that Banco Santander will not be the only entity to start operating with Apple Pay. Indeed, several financial industry executives are working with technology teams to enable the option of operating their cards through Apple Pay.

Among the entities that would offer the possibility of storing their cards in the Apple wallet would be Banco Santander, Banco de Chile, Bci, Scotiabank, Itaú, Banco Falabella, and BICE. Some banks such as Bci and Banco de Chile have even gone ahead and have already made public the terms and conditions of the use of credit and debit cards in Apple Pay.

Bci specified similar details in its terms, since by enrolling its cards in Apple Pay, the function of “making face-to-face payments in Chile and abroad will be available; compatible with contactless or contactless technology through your mobile phone or smart watch”.

In Latin America, there are several banks with a presence in Chile that operate with Apple Pay. This is the case of Itaú in Brazil and Scotiabank in Costa Rica and Peru. Apple has highlighted that one of the most important aspects of its wallet is operational security; since when a purchase is made, a specific device number and a unique transaction code are used.

By Audy Castaneda