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How unlike cash will CBDCs be?

In this post I discuss several differences between physical cash, and what I imagine retail Central Bank Digital Currencies might end up looking like.

The post How unlike cash will CBDCs be? appeared first on Bits on Blocks.

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In this post I discuss several differences between physical cash, and what I imagine retail Central Bank Digital Currencies (CBDCs) might end up looking like. The main differences between CBDCs and cash are accessibility, anonymity, and interest.

Accessibility means “who can use it?”. Pretty much anyone can use cash.

Anonymity describes how much information about the payer and recipient’s identity is needed to make a transaction. Cash doesn’t require the payer or recipient to provide any identity information.

Interest describes how much the number goes up if you leave it sitting in its natural state without lending it to anyone. Physical cash does not have interest.

Accessibility – who can use it?

Here is a version of my favourite flower: the money flower, from the Bank of International Settlements (sometimes described as the central banks’ central bank). I’m a big fan of their research.

Source: https://www.bis.org/publ/qtrpdf/r_qt1709f.pdf

I love how in one chart you can see various types of money, differentiated by accessibility (who can use it), form (physical/digital), issuer (who created it), and transmission (whether payments are account based or peer-to-peer).

But I have a quibble with the “Universally accessible” bubble. How can Cash (physical banknotes issued usually by the central bank) be in the same bucket as bank deposits? (Later I will argue that CBDCs will be closer to bank deposits than cash)

Bank deposits are nowhere near as accessible as physical cash. Just ask any 5 year old if they can open a bank account. Ask any homeless person if they can open a bank account. Ask a North Korean (or whatever other country is bad-actor-of-the-day). Ask someone with a name identical to a terrorist. Ask a foreign tourist. And so on and so on.

Clearly, accessibility lies on a dimension – or even a grid, with “technological capability” as the other axis:

Any form of money that is digital or requires any form of identity makes it less accessible than physical cash. Less financially inclusive than cash.

CBDCs will probably not be as accessible as physical cash. But they can come close, if they can be loaded onto tap-to-pay cards such as Octopus cards (Hong Kong), Oyster cards (London) and so on.

A question you can ask is “Can a charitable 5 year old give some CBDC to a homeless person as easily as they can give some cash?”

Anonymity – how much identity information?

When you pay in cash neither the payer or the recipient needs to know anything about the other. And no spying eyes see or monitor the transaction, nor can they block it.

Central banks issue cash, but they can argue that there’s nothing they can really do to prevent cash’s use in the grey and black economies. Can we imagine that central banks will issue completely anonymous digital money? With digital comes the tools to log, monitor, and censor.

We live in a world with increasing focus on anti-money laundering (AML) and countering the financing of terrorism (CFT). This has come hand in hand with an erosion of personal financial privacy and increased state surveillance of all parts of our personal lives.

Will any central banks have the ability and political will to fight for the individual’s right to financial privacy?

It’s hard to know how central banks think, and how they will act. One proxy for the right to privacy of “self vs state” is internet privacy. Here’s a graphic by bestvpn.org showing countries ranked for personal internet privacy:

Source: https://bestvpn.org/countries-ranked-by-privacy/

The tension between national security / state surveillance vs personal privacy may impact how CBDCs are designed. This is a fascinating and important area, and one where the Americans and Chinese are probably quite aligned with each other, with perhaps the Europeans leaning slightly more towards the rights of the individual. They remember the Stasi.

At any rate, it is hard to imagine that CBDCs will be as anonymous as cash. It would be a brave central bank who offers a digital form of money that leaves as few traces of identity as physical cash.

Interest – will number go up or down?

Cash sitting in your wallet or under your mattress does not have an interest rate. A £10 note does not become £11 (or £9) however long you leave it. (Here it is important not to confuse interest with price inflation and its consequent reduction of purchasing power where your money now buys you less stuff than it did last year)

Today, central banks typically have two levers to pull to affect the economy. One is what they say, and the other is what they do.

What they say is sometimes called “forward guidance” – economic markets react when central bankers make speeches.

What they do is have direct or indirect control of some form of interest rate that they offer or charge to commercial banks. Commercial banks transmit this interest rate to businesses and households.

In the literature I have read on CBDC research and design, it is usually the inclusion of an interest rate that results in economic benefits (GDP going up, etc).

And typically, the benefits come when negative interest rates are possible. Your £10 of CBDC can become £9 without you spending any money. This allows central banks to transmit deep negative interest rates directly to the pockets of households. Deep negative interest rates, or the threat of it, is designed to increase spending, keeping GDP numbers going up. (For this to work, you also have to make it hard for people to quickly switch to zero-interest physical cash).

It is hard to imagine that central banks will resist the temptation to add interest rates (negative as well as positive) to a retail CBDC. This would make CBDCs more like a commercial bank deposit than cash.

Conclusion

So what’s left? How cash-like will CBDCs be? I have argued that CBDCs are unlikely to resemble cash in terms of accessibility, anonymity, and interest. And they are unlikely to be as financially inclusive as cash.

So we should probably think of them more like safer bank accounts than like physical cash. But I’m not sure “Central Bank Accounts” (CBAs) sound as sexy as CBDCs.

Source: https://bitsonblocks.net/2019/12/17/how-unlike-cash-will-cbdcs-be/

Blockchain

NASCAR Driver Landon Cassil to be Paid in Bitcoin and Litecoin

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Popular NASCAR driver Landon Cassill will soon become the first auto racing driver to receive his salary in cryptocurrency via a new partnership with crypto brokerage firm Voyager Digital Ltd.

First Auto Racer To Receive Crypto Salary

In an official announcement today, the National Association for Stock Car Auto Racing, LLC (NASCAR), an American auto racing sanctioning and operating company best known for stock car racing, revealed that Cassill will be paid fully in cryptocurrencies, especially Litecoin (LTC) and the Voyager Token (VGX).

The partnership deal will see Cassil drive a purple No. 4 Chevrolet Camaro customized with a full Voyager-branded car wrap in 19 NASCAR Xfinity Series races this season across 16 states. The first race is due to start this Saturday at the Tennessee Lottery 250 at Nashville Superspeedway. 

A Crypto Proponent

Cassil admitted, via a telephone interview, that he had been a long-term crypto user and had only been searching for the right agency to partner with. He noted that many of his fans of late are crypto users, and the crypto industry has been seeing a lot of mainstream attention from retail investors. 

“I’m a crypto user, and I’ve been involved for several years. This is something I’ve wanted to do for a while, but it was about finding the right partner to do it. A lot of my fans are crypto users, and as of late, there’s been a lot of mainstream, retail attention on it. So from a community perspective and an athlete speaking for a space, timing was perfect this summer,” Cassil  said. 


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The NASCAR driver had allegedly met Steve Ehrlich, Voyager’s CEO, at a Litecoin summit two years ago, and they instantly hit it off due to a shared interest in cryptocurrency. 

Speaking on the partnership, Ehrlich said:

“Landon Cassill’s focus and determination on the race track translates across everything he does, which is why we’re honored to partner with him in this season’s Xfinity Series. Landon also shares our vision of widespread crypto adoption, and we’re proud to be the first company to secure a primary NASCAR sponsorship completely with crypto…I think it’s really important that the people you do business with have a crypto understanding.”

Crypto Salaries

Litecoin founder Charlie Lee, who also admitted that Cassil has been a strong supporter of Litecoin and the crypto industry for several years, believes that the “landmark deal shows the growing reach of the Litecoin community into the professional sports world and eventually beyond.”

While Cassil will be the first auto racing driver to receive crypto payments, cryptocurrencies for salaries in the sports industry are not entirely new. In April, CryptoPotato reported that employees and players of the NBA giant, the Sacramento Kings, would be able to receive a significant part of their salary in Bitcoin. 

Featured image courtesy of The Podium FInisi

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Source: https://cryptopotato.com/nascar-driver-landon-cassil-to-be-paid-in-bitcoin-and-litecoin/

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Blockchain

WAVES Technical Analysis: Price Can Move Either Ways

WAVES Technical Analysis: Price Can Move Either Ways

Rate this post Waves.tech is a blockchain-based ecosystem that supports the development of innovative applications for everyday-use practical implementation. It leverages the power of three robust blockchain protocols to provide user-friendly development infrastructure and easy-to-use tools. WAVES is the prime governance token of this open-source protocol. The technical analysis for WAVES is as below. Past Performance On Jun 11, 2021, WAVES opened at $14.04. On Jun 17, 2021, WAVES closed at $18.35. Thus, in the past week, the price has increased by roughly 31%. In the last 24 hours, WAVES has traded between $17.34-$18.95. https://platoblockchain.net/wp-content/uploads/2021/06/waves-technical-analysis-price-can-move-either-ways.png Day-Ahead and Tomorrow Currently, WAVES is trading at $17.76. The price has decreased from the day’s opening price of $18.35. Thus, the market seems bearish. The MACD and signal lines are negative. Thus, the overall market momentum is bearish. However, a bullish crossover by the MACD line over the signal line has occurred. Plus, both the lines are close to the zero line and may turn positive again. Hence, we can expect the price to start rising. Currently, the RSI indicator is at 48%. It faced rejection at 55% and fell to the current level. Hence, selling pressures are high. Heavy offloading of crypto will push WAVES prices further down. Besides, the OBV indicator is downward sloping. Thus, selling volumes are higher than buying volumes. High selling activity will exert downward pressure on the WAVES price. As of now, all three indicators have shown a bearish market momentum. However, the MACD oscillator has given indications of an impending trend reversal or temporary price correction amidst an overall bearish trend. WAVES Technical Analysis Currently, the price is below the Fibonacci pivot point of $18.21. It may soon fall below the first Fibonacci pivot support level of $17.60. Thereafter, we have to wait and watch if the price starts rising or continues to fall further. The price has tested and fallen below the 61.8% FIB retracement level of $17.95. The price may soon fall below the 76.4% FIB retracement level of $17.72 as well. Thus, by day end, if the price retests and breaks out of these levels, then probably a price uptrend has set in. In that case, the price may continue to increase tomorrow as well.

The post WAVES Technical Analysis: Price Can Move Either Ways appeared first on Cryptoknowmics-Crypto News and Media Platform.

Republished by Plato

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Table of Contents

Rate this post

Waves.tech is a blockchain-based ecosystem that supports the development of innovative applications for everyday-use practical implementation. It leverages the power of three robust blockchain protocols to provide user-friendly development infrastructure and easy-to-use tools. WAVES is the prime governance token of this open-source protocol. The technical analysis for WAVES is as below.

Past Performance

On Jun 11, 2021, WAVES opened at $14.04. On Jun 17, 2021, WAVES closed at $18.35. Thus, in the past week, the price has increased by roughly 31%. In the last 24 hours, WAVES has traded between $17.34-$18.95.

https://platoblockchain.net/wp-content/uploads/2021/06/waves-technical-analysis-price-can-move-either-ways.png

https://platoblockchain.net/wp-content/uploads/2021/06/waves-technical-analysis-price-can-move-either-ways.png

Day-Ahead and Tomorrow

Currently, WAVES is trading at $17.76. The price has decreased from the day’s opening price of $18.35. Thus, the market seems bearish.

READ  WAVES Technical Analysis: Expected to Fall Below $19.45 and $18.72

The MACD and signal lines are negative. Thus, the overall market momentum is bearish. However, a bullish crossover by the MACD line over the signal line has occurred. Plus, both the lines are close to the zero line and may turn positive again. Hence, we can expect the price to start rising.

Currently, the RSI indicator is at 48%. It faced rejection at 55% and fell to the current level. Hence, selling pressures are high. Heavy offloading of crypto will push WAVES prices further down.

Besides, the OBV indicator is downward sloping. Thus, selling volumes are higher than buying volumes. High selling activity will exert downward pressure on the WAVES price.

As of now, all three indicators have shown a bearish market momentum. However, the MACD oscillator has given indications of an impending trend reversal or temporary price correction amidst an overall bearish trend.

READ  Why Litecoin’s Ambitious Surge to Dethrone XRP Was Short-Lived

WAVES Technical Analysis

Currently, the price is below the Fibonacci pivot point of $18.21. It may soon fall below the first Fibonacci pivot support level of $17.60. Thereafter, we have to wait and watch if the price starts rising or continues to fall further.

The price has tested and fallen below the 61.8% FIB retracement level of $17.95. The price may soon fall below the 76.4% FIB retracement level of $17.72 as well. Thus, by day end, if the price retests and breaks out of these levels, then probably a price uptrend has set in. In that case, the price may continue to increase tomorrow as well.

#WAVES

Source: https://www.cryptoknowmics.com/news/waves-technical-analysis-price-below-the-fibonacci-pivot-point-of-1821can-move-either-ways/

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Blockchain

MTI Co-Owner Repels Liquidation on Their 1600 Bitcoin (BTC) Scam

MTI Co-Owner Repels Liquidation on Their 1600 Bitcoin (BTC) Scam

The co-owner of MTI, Clayton Marks owns about 50% of the Mirror Trading Investment (MTI). He reluctantly repels and is defensive on the latest liquidation put upon MTI for their Bitcoin (BTC) scam. The MTI BTC Scam The Mirror Trading Investment (MTI) based in South Africa, is a cryptocurrency trading investment firm. Their main trading …

The post has appeared first on thenewscrypto.com

Republished by Plato

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The co-owner of MTI, Clayton Marks owns about 50% of the Mirror Trading Investment (MTI). He reluctantly repels and is defensive on the latest liquidation put upon MTI for their Bitcoin (BTC) scam.

The MTI BTC Scam

The Mirror Trading Investment (MTI) based in South Africa, is a cryptocurrency trading investment firm. Their main trading schemes are based mostly on Bitcoin (BTC)

Speculations rose massively upon their Bitcoin (BTC) scam between 2019 and 2020. The scam accounted for about 1600 Bitcoins. Besides, all these 1600 BTCs acquired by MTI are based on funds sourced by the investors. MTI started this scam scheme marketing it as extreme high returns of 0.5% on daily basis on the investment by the investors. Also, depicting yearly gains of almost 500%. In addition, they portrayed their scheme and justified it showcasing the use of artificial intelligence-powered algorithm trading software sourced from exile. 

By the year 2020, MTI accumulated about 1600 BTCs and started to collapse before August 2020. By July 2020, the Texas State regulators officially announced that the MTI BTC scheme and overall MTI is a scam. Once branded a scam, the funds of the MTI platform of 1600 BTCs were transferred to a brand new FX trading platform. However, the MTI denies any such transfer of accounts. In Spite of this, complaints from the investors started to rise upon them being unable to withdraw their funds deposited. On the other hand, as soon as complaints started to flow in, the CEO of MTI, Johann Steynberg disappeared and went anonymous. 

Nevertheless, citing all this, the MTI BTC scam has been ranked the biggest cryptocurrency scam of the year 2020.

The Liquidation and Clayton’s Disapproval

Meanwhile, by the end of 2020, investors started to protest cases for the complete liquidation of MTI and release whatever funds they could get back on their investments. Ever since then, the case is still going on for the final judgment for the judiciary.  The court’s final judgment is yet to appear upon liquidation of MTI. Yet, many liquidators are fighting profusely for the court to grant it. 

On the other hand, Clayton Marks who owns about 50% of MTI opposes the put forth of the liquidators. Adding to this, Marks propagates the liquidation process has not been carried out properly by the team of liquidators. Furthermore, Clayton insists, he and his wife, Cheri Marks, who is actually the head of communications of MTI, were not served the notice for it. 

In addition, Marks exclaims by recovering the 1200 BTCs which is the actual presence in the FX platform account which is from MTI, would solve the entire liquidation. 

However, Marks persists liquidating MTI wouldn’t help in pacifying the investors. Also, he remarks the best solution for this is to find Johann Steynberg and rightfully ask him to rectify his 

wrong-doings.

As of now, the judgment has been reserved. Yet, the legal team of liquidators is confident in passing the final judgment for the liquidation of MTI.

Source: https://thenewscrypto.com/mti-co-owner-repels-liquidation-on-their-1600-bitcoin-btc-scam/

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