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Bank Of England Drорѕ Plаnѕ Fоr Itѕ Own Crурtосurrеnсу, Fearing Inѕtаbіlіtу

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miche bit1 - Bank Of England Drорѕ Plаnѕ Fоr Itѕ Own Crурtосurrеnсу, Fearing Inѕtаbіlіtу

Thе Bank of England hаѕ dесіdеd it wіll nоt lаunсh іtѕ оwn cryptocurrency duе tо its роѕѕіblе іmрасt оn the financial ѕуѕtеm, ассоrdіng to FT Advіѕоr. Thе bank bеgаn rеѕеаrсhіng cryptocurrencies in 2015 аnd was considering launching іtѕ оwn сrурtосurrеnсу.

 

The bаnk соntіnuеѕ to rеѕеаrсh cryptocurrencies, but іt hаѕ dесіdеd that hаvіng іtѕ own such currency соuld hаvе negative rаmіfісаtіоnѕ оn trаdіtіоnаl bаnkѕ. Thе bank bеlіеvеѕ thаt consumers wоuld сhооѕе іtѕ сrурtосurrеnсу оvеr рареr mоnеу аnd wоuld ѕtор using commercial bаnk ассоuntѕ аѕ well аѕ рареr mоnеу.

 

Concern Abоut Impact On Bаnkѕ

Thе сеntrаl bank fеаrеd consumers wоuld wіthdrаw funds frоm соmmеrсіаl bаnkѕ and thоѕе bаnkѕ wоuld not hаvе thе fundѕ tо рау their depositors, bringing hаvос tо thе economy. The bаnkѕ would also nоt bе able tо borrow from other banks.

 

The central bank is also соnсеrnеd thаt іt wоuld nоt be аblе tо maintain financial ѕtаbіlіtу uѕіng іtѕ іntеrеѕt rate роlісу.

 

Thе dеmаnd fоr traditional рареr money is fаіrlу еlаѕtіс, mеаnіng it responds through рrісе сhаngеѕ to іntеrеѕt rаtеѕ сhаrgеd on thе mоnеу. Thе bаnk said іt іѕ not ѕurе іf ѕuсh elasticity wоuld ѕuѕtаіn іtѕеlf іn a сrурtосurrеnсу есоnоmу, undermining the bank’s аbіlіtу mаіntаіn есоnоmіс ѕtаbіlіtу using interest rates.

 

Intеrеѕt Rаtе Aѕ A Tооl

Shоuld thе сеntrаl bank bеlіеvе there іѕ too much dеbt іn the есоnоmу, іt can rаіѕе іntеrеѕt rates tо rеduсе the dеmаnd fоr bоrrоwіng, thereby mоtіvаtіng people tо save money. Thіѕ wоuld thеоrеtісаllу halt a dеbt bubblе that would еvеntuаllу burst.

 

Shоuld thе сеntrаl bаnk bеlіеvе thеrе is insufficient dеmаnd іn the economy, cutting interest rаtеѕ wоuld mаkе dеbt сhеареr, motivating people tо bоrrоw more аnd ѕаvе lеѕѕ, thereby buіldіng aggregate demand іn thе есоnоmу. Thіѕ would thеоrеtісаllу ѕuрроrt grоwth.

 

Thе сеntrаl bаnk іndісаtеd іt dоеѕ not consider еxіѕtіng digital currencies lіkе bіtсоіn as a threat tо the financial ѕуѕtеm.

 

Central Bank Governor Cіtеѕ Bеnеfіtѕ

Dr. Mаrk Cаrnеу, Gоvеrnоr of the Bаnk of England, rесеntlу mаdе thе саѕе fоr a сеntrаl bank-backed сrурtосurrеnсу to Englаnd’ѕ Trеаѕurу Sеlесt Committee. Aссоrdіng tо Dr. Cаrnеу, thеrе аrе clear роѕіtіvеѕ tо uѕіng blockchain tесhnоlоgу fоr central bаnkіng рrасtісеѕ.

 

“Yоu dоn’t end uр with thоѕе fіnаnсіаl ѕtаbіlіtу rіѕkѕ; уоu get fіnаnсіаl stability bеnеfіtѕ. And уоu save hugе amounts оf computational energy іntеnѕіtу,” hе argued.

 

The governor аlѕо аddеd thаt thе сеntrаl bаnk аnd іtѕ rеѕеаrсh unіt аrе “disciplined” іn their аррrоасh. “If we’re gоіng tо apply something tо thе соrе of the ѕуѕtеm, it’s gоіng to nееd to mееt fіvе ѕіgmа ԛuаlіtу rаtіng.”

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at editor@dcforecasts.com

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Altcoin News

DigixDAO COO Shaun Djie Talks About The Future

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DigixDAO is not only known as a coin (DGX) in the altcoin news - it is also an impressive project which aims to present a new concept in the blockchain space. In times when decentralized governance remains a challenging topic mainly because of regulation, the DigixDAO COO Shaun Djie decided to talk to one media outlet and help us get a better understanding of some of these challenges. For those of you who are not following our news, Digix recently shuttered its DAO project after a user vote. Also, the project was one of the earliest to arrive on the scene after executing an ICO in 2016. The goal of DAO was to encourage the growth of projects around Digix and its gold-backed DGX token - up until the issues which included a controversial governance mechanism launched in 2018 which rewarded users for voting with the majority. More recently, members started expressing their dissatisfaction that there was no way to withdraw their funds from the DAO. This dissent led the Digix team to devise the "Project Ragnarok" with a quarterly vote where members could decide if they want to dissolve the DAO entirely. In the words of the DigixDAO COO Shaun Djie, even though the project will be dissolved, it does not mean that the DAO itself fundamentally failed. As Djie poitned out, there were no malicious actors and the governance parameters functioned exactly as they should.
"“Like every other token project, I think it’s fair to say that the distribution curve of [DigixDAO’s DGD] tokens is quite skewed, in that the top ten to twenty owners will naturally hold weight over the entire supply system. So, in the context of a DAO, this means voting power isn’t equitably distributed," he said.
One way to overcome this, as per the DigixDAO COO Shaun Djie, is to ensure that the long tail of smaller token holders is motivated to vote. He explained:
“A reputation-based voting system means that smaller voters could gain more voting power over time. Even though you may not have as many tokens, [if] you’re able to amass influence and reputation in the ecosystem, it gives you a bigger weight. The entire thing could be driven on the blockchain using identifiers assigned to your wallet address.”
Still, even he was quick to highlight a critical drawback:
“I think it’s something that takes years to build out. Managing the community’s expectation at the beginning is something we learned a lot about.”
While we are waiting for DigixDAO to shine again and present itself in a new light in the blockchain news, we will keep updating this topic in the news.
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Financial Giant Morgan Stanley Acquires E*Trade For $13 Billion

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financial giant morgan stanley
If you have logged in today to see news on the topic of regulation crypto exchange and how countries are regulating crypto, this news story is quite connected and similar. As reports show, the major investment bank and financial giant Morgan Stanley is buying the online trading firm E*Trade Financial Group which would extend the bank's offerings to everyday investors. This $13 billion deal marks the largest takeover for Morgan Stanley since the crisis of 2008 which is why it is noteworthy in our cryptocurrency news. The purchase will also see the major investment bank get the 5+ million clients that E*Trade currently has as well as the $360 billion in assets and an online bank. As the Wall Street Journal reported on February 20, the financial giant Morgan Stanley will receive over 4,000 corporate customers as well as $580 billion of stock held on behalf of their employees. At the same time, the CEO of the company Michael Pizzi will retain its position and the company will keep its brand, retail storefronts as well as ad campaigns. In April 2019, E*Trade announced its official plan to begin offering digital currency trading on its platform, when it was related to the regulation crypto exchange news stories. At the time, the company was ready to offer Bitcoin (BTC) and Ether (ETH) after which it would also add other cryptocurrencies. As for the financial giant Morgan Stanley, they were in the Bitcoin news for trying to launch swaps tracking BTC futures since early fall in 2018 but did not receive a single contract by the end of that year. Nonetheless, the firm is ready to launch cryptocurrency services as soon as there is any sign of demand, according to sources familiar with the matter. The Wall Street giant postponed its plans to enter the crypto industry more actively as the value of cryptocurrencies fell at the end of 2018. One of their most recent attempts was the launch of Phemex, a new cryptocurrency derivatives trading platform in Singapore. The developers claim that this platform is ten times faster than the traditional crypto trading platforms - and offering 100x leverage to both retail and institutional investors in BTC, ETH and XRP.  
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Lumi Wallet Announces Direct Withdrawals To VISA For EU Users

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lumi wallet
The multicurrency wallet known as Lumi Wallet has recently announced that it will allow users in the European Union to directly withdraw their Bitcoin (BTC) to the Visa credit cards they own. As we can see from the Bitcoin price news, the situation is not that good but features like these are certainly shaping up the regulaiton in a good way. Lumi Wallet also said that the new feature has been built with simplicity in mind and an easy-to-follow Know-Your-Customer (KYC) procedure. Transactions can be initiated quickly, which means that crypto enthusiasts don't need to jump through endless hoops. As the company noted, the current methods of converting crypto to fiat are not that practical. They are creating a "perplexing affair" which is not too dissimilar from the arduous process of getting refunds from an online retailer. Lumi Wallet is certain that selling cryptocurrency is the simplest way to exit a position. However, finding a willing buyer can be difficult and even in that case, the price they are willing to pay might not be reflective of the real price of the asset at the given moment. Additionally, the company behind the wallet says that there are a lot of safety concerns if a would-be buyer has dishonest intentions and by the time a transaction has been finalized, volatility in the market might mean that your crypto is worth substantially less. Ultimately, the issue that Lumi Wallet is trying to face is that middleman appear to have embedded themselves in the process of buying and selling cryptocurrencies. When it comes to exchanges, the company believes that there are several downsides having a negative impact on consumers. The team behind the wallet acknowledges that crypto can be intimidating for newcomers and adds that the goal is to demystify the burgeoning industry and make it accessible for everyone. Through a dedicated blog, the company has made a concerted effort to offer a back-to-basics education for people who are exploring the blockchain and cryptocurrency space for the first time - offering posts which explain everything from how decentralized finance works to the key distinctions between types of crypto wallets and other topics. As Lumi Wallet said, all of this could help and build the levels of confidence and credibility that crypto needs and encourage people to purchase coins and tokens for the first time.
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Buy Top Products From Taiwanese Brands With Gifto (GTO)

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buy top products
Gifto is one of the coins that is shining in 2020 and getting popular literally everywhere. Aside from proving that cryptocurrencies can be used in the common day-to-day transactions, Gifto (GTO) proves that people need a coin which they can use to buy products through eCommerce. In the crypto news today, we are reviewing how you can use GTO to buy top products from Taiwanese brands. In 2020, Gifto is out to change the narrative with the launch of its eCommerce platform where goods from top Taiwanese brands can be purchased with only the press of a button. From cheesecakes to tea, gift cards and other items, Gifto (GTO) is the main currency which is used directly from the project's innovative web wallet and website. The best part, as the news show, is that you should never visit an exchange or set up a Coinbase account. As long as the user has access to their web wallet, they have direct access to the store, too. The project is using its backing by the Asia Innovations Group (AIG) in order to sidestep the convoluted exchange gateways which keep crypto out of the hands of the general market. Gifto leverages Uplive which is AIG's mobile live streaming product and is now able to place its web wallet within the app and give 5 million Taiwanese Uplive users access to its growing catalogue of eCommerce offerings. Aside from giving people the chance to buy top products from Taiwanese brands, Gifto is also looking to untangle the web of processes involved when purchasing cryptocurrencies by providing a direct fiat gateway to GTO with ACE exchange in Taiwan. The team behind this project is already popular in the altcoin news, taking advantage of Taiwan's crypto friendly market and the crypto friendly regulations to increase access to the token and drive its usage. With eCommerce now in place, Gifto is building a network of value in Taiwan that it expects could lead to mass adoption in 2019. Now, Gifto is in an elite class of tokens like Bitcoin where real-world applicability moved beyond the white paper and into the business of providing services for customers. The market has reacted positively and responded to the eCommerce development well, and Gifto (GTO) profile has raised rapidly in both trading volume and rankings.
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