The President of Argentina has not ruled out adopting cryptocurrency, he said in a televised interview this week.
Alberto Fern?ndez said that while cryptocurrency was a sensitive issue, in his view, digital assets could help to curb inflation in the South American country.
Fern?ndez was speaking to Filo.news editorial director Julio Leiva. The full interview is available on Youtube here.
??"La discusi?n sobre el funcionamiento de las criptomonedas es mundial y debo confesar que es un tema de cuidado, en mi caso, por lo desconocido. Pero no hay que negarse, tal vez es un buen camino". El presidente @alferdez con @juleiva en #CajaNegra de @filonewsOK. pic.twitter.com/tRCcnFA3pm— Alberto Fern?ndez Prensa (@alferdezprensa) August 12, 2021
“The discussion about the operation of cryptocurrencies is global, and I must confess that it is a matter of caution. But there is no denying it, perhaps it is the way forward (for Argentina).” [translated from Spanish] Alberto Fernández, 11 August 2021
Annual inflation has topped 50% this year, well above the government's 29% target.
Argentina's runaway inflation has made consumer prices soar, damaging the economy, drastically cutting spending power, forcing struggling businesses to close and hurting savers and investors.
While the IMF carries no current statistics for Argentina, the countr's official INDEC agency said in July 2021 that consumer prices climbed 25.3% in the first half of the year, and were 50.2% higher than in 2020. That makes Argentine inflation one of the four worst in the world, after Sudan, Zimbabwe and Venezuela.
“Taming inflation is key to restoring economic stability after three years of recession, heading off social upheaval as poverty levels rise and for the Peronist government to avoid painful defeat in midterm elections at the end of the year.” Hernan Nessi, South America correspondent, Reuters
Goldman Sachs (NYSE:GS) analyst Alberto Ramos said that price rises had come despite soft domestic demand, high unemployment and depressed real wages.
“High inflation remains one of the key macroeconomic challenges facing the government, and a significant political liability for the government coalition.” Alberto Ramos, Latin American research lead, Goldman Sachs
In separate comments on 10 August 2021, Miguel Pesce, president of the Central Bank of the Argentine Republic (BCRA), said that while Bitcoin does not constitute an asset in his view, the bank was preparing to regulate cryptocurrencies where they intersect with payments systems and the exchange market.
Pesce was speaking at the opening of the Digital Finance Forum, organized by the Argentine Institute of Finance Executives (IAEF). At the same event, Pesce categorically ruled out creating a Central Bank Digital Currency, which has happened in China with the e-CNY and is being actively explored in Europe, the UK and the US.
Latin America remains one of the largest regions for cryptocurrency adoption. In a world first in June 2021, El Salvador made Bitcoin legal tender.
In a newly-published research paper, Microsoft said it was using the Ethereum blockchain for combating online piracy. The 11-page paper outlines the system - called Argus - and notes how it uses smart contracts and cryptographically provable security to prevent copyright theft. Cointelegraph was first to report the news, on 16 August 2021.
“We see this as a distributed system problem. In the implementation, we overcome a set of unavoidable obstacles to ensure security despite full transparency.” Microsoft, Argus: A Fully Transparent Incentive System for Anti-Piracy Campaigns
The world's second-largest public company, Microsoft (NASDAQ:MSFT) has a market cap currently larger than the entire cryptoasset sector at $2.2 trillion.
In December 2020, Microsoft said it had adopted Ethereum to solve complex business challenges around gaming royalties for its Xbox platform.
EY partnered Microsoft for that particular announcement. It's perhaps no surprise given that the Big Four audit firm has invested heavily in Ethereum in recent years. Its developers began releasing zero-knowledge protocols into the public domain in June 2019, and just last month, published an open-source layer 2 scaling solution for Ethereum called Nightfall 3. That codebase uses a technology called zk-Optimistic rollups to aggregate transactions into groups, vastly reducing the often high fees needed to process Ethereum transactions.
In March 2020, EY debuted Baseline , another Ethereum-centred project with Microsoft, a package of public domain blockchain tools allowing enterprises to build and deploy procurement on Ethereum using offchain storage, zero-knowledge proofs and distributed identify, so that businesses do not have to store sensitive information on the blockchain itself. The protocol supports smart contracts and tokenisation standards, which means purchase orders and receivables can be tokenised and integrated into the DeFi ecosystem.
The use of Ethereum by the world's largest tech companies is testament to its revolutionary architecture, and wide-scale adoption across industry. Amazon Web Services, the most profitable and fastest-growing division of of Amazon (NASDAQ: AMZN) announced the general availability of Ethereum on Amazon Managed Blockchain in March 2021.
Austrian cryptocurrency broker Bitpanda, the latest company in the space to reach unicorn status, has tripled in value with its latest funding round, Reuters reported on 17 August.
The retail-focused Vienna-headquartered exchange claims 3 million users worldwide, and is a platform where people can trade fractional stocks, crypto and commodities in one place.
Founded in 2014, it is now one of the fastest-growing fintechs in Europe, with over 500 employees.
The funding round was led by Paypal co-founder Peter Thiel's Valar Ventures, a VC fund that has invested heavily in European fintech. Its portfolio companies include German neobank N26, Spotify and British AI tech developer Deepmind.
This proves that a strong regulatory focus in crypto brings the biggest institutional cheques to the table.
Bitpanda has succeeded where other cryptocurrency brokers have failed, because of its commitment to regulatory compliance. The venue is licenced as a MiFID II investment firm and as a PSD2 payment institution, and is AMLD5 compliant, as well as being registered as a Virtual Asset Service Provider (VASP) with the Austrian Financial Market Authority and France's Autorit? des March?s Financiers.
The Financial Action Task Force, the world's leading anti-money laundering intergovernmental organisation, brought in guidelines for digital asset markets in 2020. In its second 12-month review, it noted that the crypto sector had made great strides to institute strong KYC and AML reporting in line with its controversial 'Travel Rule'. 58 out of 126 jurisdictions have implemented revised FATF standards into their national law, it said.
“The report finds that many jurisdictions have continued to make progress in implementing the revised FATF Standards. While the supervision of VASPs and implementation of AML/CFT obligations by VASPs is generally emerging, there is evidence of progress.” Financial Action Task Force, 5 July 2021
Among the other investors in the current Bitpanda round were famed British hedge fund manager Alan Howard, whose $13bn hedge fund Brevan Howard began to invest in digital assets in March this year.
Bitpanda is not currently seeking to go public, Reuters said, quoting chief executive officer Eric Demuth, but added that sources suggested when it did occur, it was likely to be via a direct listing, following the likes of Coinbase (NASDAQ:COIN), Wise(LSE:WISE) and Robinhood (NASDAQ:HOOD).
“We will take our time in that regard. We are profitable for five years now, every year.” Eric Demuth, CEO, Bitpanda
Bitcoin had a steady 7-day trading session after the euphoria of the past couple of weeks. Bullish sentiment remains strong and the cryptoasset appears ready to make the next leg up to test $50,000 for the first time since its record-breaking climb to $60,000 and beyond earlier this year. The low point of the week's trading came in a brief 4.2% dip to $43,653.88, but that level was quickly snapped up. BTC now looks to be in an ascending triangle, with the top of the range at $48,112.80 some 5.5% higher than at the start of the week.
Ethereum's trading week was consistent, if unspectacular, but the programmable money blockchain continued its unbroken winning run that began around 20 July 2021. A double bottom formed right on the $3,000 line, creating the low point of this week's trading activity, at $2,984.55, just 3.7% below the week's starting price. That, however, was quickly rejected before ETH resumed its upward climb. Ether moved as high as 7.6% above its beginning point to hit $3,338.04, but backslid a little to $3,222.61, adding a total of 3.9% across the week.
This week Litecoin hit its highest point in more than two months, as positive sentiment continues to filter through to the payments blockchain. From a starting point of $163.53, LTC climbed a total of 15.5% to reach the heady heights of $188.89. That's not the near-20% jump we witnessed last week, but it is a strong double-digit showing for a protocol that has seen adoption for its fast, cheap cross-border payments spike in the past six months. Now all eyes are on what happens if and when Litecoin retests the psychologically-important $200-level.
Disclosure | Copyright © 2021 ETC Group. All rights reserved
Terms of Website Use
If you continue to use our website, you are deemed to have read and accepted our Terms and Conditions as set out below:
This website is for information only. It does not provide investment, tax or legal advice or recommendations. According to the applicable laws and regulations in your jurisdiction, some contents on this website or the access to certain contents on this website might be restricted.
Disclaimer: The material and information contained on this website is for informational purposes only and ETC Management Ltd, its affiliates, and subsidiaries are not soliciting any action based upon such material. The material and products do not represent or shall not be inferred as an offer or a recommendation to buy or sell a security, nor shall it be considered or treated as investment advice. Additionally, the material accessible through this website does not constitute a representation that the investments described herein are suitable or appropriate for any person. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on any information.
Distribution of Information:
The distribution of the information and material on this website may be restricted by law in certain countries. None of the information is directed at, or is intended for distribution to, or use by, any person or entity in any jurisdiction (by virtue of nationality, place of residence, domicile or registered office) where publication, distribution or use of such information would be contrary to local law or regulation.
You must inform yourself about, and observe any such restrictions in your jurisdiction and by accessing this website you represent that you have done so. The information on this website is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof).
By accepting these Terms and Conditions, you hereby confirm that according to the applicable laws and regulations of the relevant jurisdiction (be it the jurisdiction of your nationality, residence, incorporation of the company you are representing or current physical location) you are allowed access this website.
Use of this website does not result in a contractual relationship between the user and ETC Issuance GmbH. To that extent, no contractual or quasi-contractual claims arise against ETC Issuance GmbH as a consequence of visiting this website.
No content of this website should be considered as an offer to purchase any product or securities as described on this website. The prices and valuations published on this website are indicative and are for information purposes only, as is other information displayed on this website. Any person making offer of securities described on this website shall observe and strictly comply with restrictions on the usage of information pursuant to these Terms and Conditions, as well as any restriction imposed by a prospectus published with respect of any securities described or applicable laws and regulation, including without limitation restrictions imposed by the EU Prospectus Regulation (REGULATION (EU) 2017/1129 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 14 June 2017).
Any securities described on this website are not permitted to be offered for sale in all countries and are in each case reserved for investors who are authorised to purchase the securities. Selling restrictions applicable to specific products are set out in the relevant prospectus and should be read carefully by investors. Any restrictions imposed by the relevant prospectus are in addition and without prejudice to any restriction or prohibition established by laws or regulations of any jurisdiction.
United States Persons and legal entities resident in the United States
Securities issued by ETC Issuance GmbH or its affiliates have not been registered under the U.S. Securities Act of 1933, as amended, (the "Securities Act"). The Bonds are being offered outside the United States of America (the "United States" or "U.S.") in accordance with Regulation S under the Securities Act ("Regulation S"), and may not be offered, sold or delivered within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
The information provided on this website is not directed to any United States person or legal entity or any state thereof, or any of its territories or possessions.
U.S. PERSONS (AS DEFINED IN REGULATION S) AND LEGAL ENTITIES RESIDENT IN THE UNITED STATES MAY NOT ENTER THIS WEBSITE.
Information from this website may not be distributed or redistributed into the United States or into any jurisdiction where it is not permitted.
Exclusion of liability for content
Some documents displayed on the website and its content are restricted to ”Professional Investors” only and are not intended for retail or private investors. By making use, opening, or downloading such documents, you agree that you are an “Institutional Investor” as defined here: https://www.handbook.fca.org.uk/handbook/COBS/3/5.html, and have read, understood and accepted the conditions.
Certain documents made available on this website may have been prepared and issued by persons other than ETC Issuance GmbH. This includes any prospectus and additional documents thereto. ETC Issuance GmbH is not responsible in any way for the content of any such document. Except in those cases, the information on the website has been given in good faith and every effort has been made to ensure its accuracy. Nevertheless, ETC Issuance GmbH shall not be responsible for any loss which is a direct or indirect result of reliance placed on any part of the website and it makes no warranty as to the accuracy of any information or content on the website. The terms and conditions of securities applicable to investors will be set out in the relevant prospectus, available on the website and should be read prior to making any investment.
You should always bear in mind that:
Investors should refer to the section entitled “Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in the securities offered by the Issuers before investing.
Changes of terms and conditions of website use
ETC Issuance GmbH reserves the right to modify or amend these Terms and Conditions at any time without prior warning.
Content and design of this website are protected by copyright and other applicable laws. Any copying of the website or of its content requires the prior written consent of ETC Issuance GmbH.
Some of the hyperlinks contained on this website may lead the user to external websites that are not under the control of ETC Issuance GmbH and for the content of which ETC Issuance GmbH is not responsible. When the user clicks on such a link, the user will leave the ETC Issuance GmbH website. ETC Issuance GmbH is not responsible for the content of any websites reached by means of such a link.
Governing Law and Jurisdiction
ETC Issuance GmbH is a subsidiary of ETC Management Ltd, company number 12165332, with registered office at Gridiron, One Pancras Square, London, England, N1C 4AG. These Terms and Conditions and your access to and use of this website and the content are subject to the laws of England and Wales.