Australian Senator and also Minister Jane Hume thinks that cryptocurrencies would eventually turn into a mainstream technology. She compares them to the internet in its early days.

Every favorable position on cryptocurrencies, especially from authorities related to the economy and finance, means good news.  Minister for Financial Services, Pensions and Digital Economy and Senator in Australia Jane Hume publicly endorsed digital assets highlighting that they are not just a temporary trend.

Hume responded to Tony Richards (Head of Payments at the Reserve Bank of Australia), who recently described cryptocurrencies as whimsical. Additionally, Richards warned investors that the asset class is a potential risk that could inevitably crumble down, and therefore people could lose a substantial amount of money.

Meanwhile, Hume, during an interview with the Australian Financial Review, disagreed with the statement. She believes that the cryptocurrency industry is a sensitive area, and the local government must approach with caution but without being afraid of it. In this regard, She stressed that the governing entity of Australia should also refrain from seeing Bitcoin and altcoins as a trend.

The official added that cryptocurrencies appeared over the years and have captured the hearts and minds of many Australians. A recent survey highlighted that roughly one in five Australians is a crypto holder. At the same time, Bitcoin (BTC), Ether (ETH), and Dogecoin (DOGE) are the most popular digital assets.

Hume and Her Position about DeFi

Hume also expressed her thoughts on the Blockchain-based form of financing that does not depend on central monetary intermediaries: decentralized finance (DeFi). She predicted that it would present many good opportunities in the future and, as such, Australia should not be left behind.

Likewise, the official dared to compare the cryptocurrency industry with technological developments of the recent past, such as the iPhone or Excel, which were irrelevant at some point.  According to Hume, digital assets also resemble the internet in early stages and may one day become a mainstream technology used by everyone.

Many experts see the volatile nature of the asset class as their main problem. Hume opined that the price fluctuations happen because the industry is still in its early stages.

It is not the first time that Hume sides in favor of cryptocurrencies. In May, she repeated these words highlighting that crypto was not a trend and that the government would not present any obstacle to block its development.

Australia will not get in the Way of Bitcoin

The official emphasized that the Australian government will not stand in the way of cryptocurrency traders. She said there is no problem with consumers investing in cryptocurrencies.

Hume’s comments on cryptocurrencies were part of his speech in which she described the approach of the Scott Morrison government to tackle a new wave of digital financial platforms and products. She stressed that she would reject requests for stricter market restrictions.

By: Jenson Nuñez

The president of the United States of America, Joe Biden, named Powell, and Lael Brainard as president and vice president of the Fed.

US President Joe Biden nominated Jerome Powell as Chairman of the Federal Reserve (FED) for the second year in a row. The White House made the announcement Monday morning, various news outlets reported.

Powell got appointed chairman of the Fed by the Trump administration and took office in February 2018. More recently, the Republican has led the nation’s economy amid the pandemic crisis. As part of its leadership, and the effort to respond to the COVID-19 pandemic, the US central bank implemented an unprecedented stimulus policy, notably doubling the size of the Fed’s balance sheet to USD 8.7 trillion to inject liquidity to global markets.

The success of Powell’s actions to cushion the impact of the pandemic and get the US economy back on track has led him to win a second candidacy. President Biden highlighted this information in the statement.

Powell Again for FED Presidency

The announcement about Powell’s nomination arrives after some spread rumors about the Biden administration considering Fed Governor Lael Brainard for the job. Although it is a more attractive option for progressives, the White House assured that it picked up Brainard to fill the position as vice chairman of the Federal Reserve board of governors.

Along with Powell as president and Brainard as vice president, Biden expressed that the duo would help keep the focus on low inflation, stable prices, and provide more employment for the American people.

The new staff would be taking rapid action to address the economic risks posed by climate change and anticipate emerging risks in US financial system.

Powell’s current four-year term as Fed president will reach its end in February 2022. The Senate would confirm the nominations of Powell and Brainard in the coming days.

The announcement seems to represent a positive impact on investors; the revelation coincided with a 0.7% rise for the S&P 500, as well as a modest boost to stock market futures. Meanwhile, government bond yields were higher across the board.

CoinDesk highlighted that both Powell and Brainard share similar perspectives on economic policies and cryptocurrency regulation, so the decision did not represent, according to economists, vast importance regarding the possible impact on the industry and the market. of digital currencies.

Both officials share the conviction that cryptocurrencies should not grow without restrictions to the point where they can threaten the existing financial system. On the other hand, the report says that both leaders seem to coincide with a tolerant stance in the face of inflation, which could be positive for Bitcoin.

The narrative around Bitcoin as a haven asset for inflation has gained strength amid this panorama. The top cryptocurrency quadrupled in price in 2020, and this year has reached new heights above $ 68,000.

Some analysts emphasized that this price mark above $ 60,000 is a sign that an increasing number of investors are relying on the adoption of Bitcoin to protect themselves from the effects of inflation.

By: Jenson Nuñez.

The pioneering cryptocurrency allows creating protocols that replicate the social structure in a programmed and open way. Gutiérrez believes it is possible to create objects that have their own life and economic management.

Diego Gutiérrez, CEO of IOVLabs and founder of RSK, recently said Bitcoin is not only a store of value. He explained it is the basis for creating protocols that replicate the structure of society in a programmed and decentralized way.

The Argentine executive commented that the development of Bitcoin is comparable with that of the Internet of information. The latter includes the communication between two computers, e-mail, websites, and social networks, among others. Concerning Bitcoin, it would be the basis of the Internet of value, on which layers such as economic coordination, RSK, and Ethereum grow.

Gutiérrez described Bitcoin technology as an open system of transfer and storage of value where any human being worldwide can participate. However, he considers that BTC can be a currency, a payment system, and a store of value better than gold. Besides, he said that it is a distributed network on which people can participate without permission.

The founder of RSK believes that there will be new significant developments around Bitcoin. He noted that emerging patterns that allow creating objects that have their own life and economic management.

He suggested that a community organized into a DAO (Decentralized Autonomous Organization) acquire an autonomous vehicle and turn it into a taxi. The car could have an associated wallet to receive the payments for the service. Besides, the self-management of operating expenses and the distribution of profits could be programmable through a smart contract.

Regarding the potential customers of such a service, he said that the only thing missing was trust.

Likewise, Gutiérrez stated it would be possible to create community money issuing systems with currencies belonging to a community, sector, or union. He highlighted that those technologies could allow communities to begin regaining control over money.

Technologies Such as Bitcoin Reduce Violence in Society

The Argentine developer considers that Bitcoin has essential advantages like the possibility of establishing trust bonds and providing transparency in agreements. He argued that those values generate social scalability and remove much of the violence existing in society.

IOVLabs CEO Diego Gutiérrez said it is possible to establish trust, agreements, and social contracts. He explained that this would allow showing the adherence to some principles and values on a scale never seen before. He added that there could be social contracts and agreements between thousands of people.

He also mentioned that reputational identities are a traceable record of an individual’s economic trajectory and social contributions, among other data. He said they allow individuals to access better markets or negotiate with people who do not know them.

Gutiérrez believes that this may be the key for half of the population worldwide excluded from the financial system to access them. Besides that, he concluded that the adoption of smartphones provides the opportunity to create an inclusive and open financial system for everyone.

By Alexander Salazar