Archive: September 12, 2020

Top Indian Central Banker Says Cryptos Have a Future But Fears Monopoly

Raghuram Rajan, the former governor of the Reserve Bank of India believer neither private nor central digital currencies should come under monopoly. He believes the private digital currencies including Bitcoin and Facebook’s Libra have potential. He says that these digital currencies will remain popular even when central banks roll out their digital currencies.

However, the only concern of Rajan is the monopoly. Rajan, who was also working as a Chief Economist and Research Director at the International Monetary Fund during 2003-2006, said that the digital currencies may have a problem if they hold a monopoly. The platform of Bitcoin and other cryptocurrencies is entirely different from fiat currency.

The private digital currencies will give a tough competition to the digital currencies launched by the government. Although he believes Bitcoin is not just a mere medium of exchange instead, it is a valuable asset just like gold. Facebook’s digital currency Libra will be used as an everyday medium of transactions.

Rajan says if the central banks issue the digital currencies, each transaction may require many types of information. This information can be collected through CBDCs but Rajan has a concern about whether or not people will be willing to share so much information.

There are many sorts of personal payment information involved in banking too. The banks, however, may need to decide which information they want to collect and how they will use this information. Rajan added just the way private digital currencies cannot work efficiently under monopoly, the central bank digital currencies may have no safeguards.

Customer data can be used by central banks and their management without any privacy control. Both types of digital currencies will play a significant role in the market despite being issued by different mediums.

The thought of having digital currency is still an idea among the central banks of India. But it will soon be materialized and there will be a digital version of the fiat currency. While Bitcoin is a decentralized currency unlike the fiat currencies, the idea of having a centralized digital currency can bring many changes in the world of digital currencies.

Rajan concluded that to make the idea of centralized digital currency and still competing with the decentralized one, will be a challenge in itself. There should be some protocols to handle the data of every transaction, he added. To propel the global usage of digital currencies, proper implementation of the digital currency is what banks need to focus on.

Bitcoin Is Ahead Of Bank Of America And New Zealand Dollar At Present By Market Capitalization

The present market-capitalization of Bitcoin (BTC) is just a little higher than a billion USD, having raised 3.2% in the past 2 days. For the time being, the market-capitalization of the Bank of America has shown an unfortunate downfall, around more than 2% that reached down to 224.4 billion USD.

This optimistic behavior coming from BTC shows one thing and that is that the analytics website places Bitcoin in the 25th rank position of the most treasured asset by market cap, just after Paypal that holds the market-capitalization of 230 billion USD.

Bitcoin is Running Ahead

There is a site called FiatMarketCap and it operates to track the rise of Bitcoin against some leading fiat currencies. It has made the statement that the market-capitalization of Bitcoin now has put it ahead of the same as the NZ Dollar. To be exact, at present BTC is ahead of the estimate of the site for the complete count of NZ Dollar in motion at 346.4 billion, which is approximately equal to 227 billion USD. As a consequence, this has made Bitcoin the 34th most precious among all the fiat currencies in the world.

In 2020, the value of BTC has shown a steep rise. The raise was for the Federal Reserve pushing away numerous controversial approaches. It happened for the reduction of the economic effect of the Covid-19 pandemic, giving rise to highlighting figures in finance to take crypto under consideration for the first time.

Popular Billionaires on Crypto

There are famous billionaires who expressed their views on cryptocurrencies. For instance, Warren Buffett has made a statement that cryptocurrencies do not hold any significance basically.

On the other hand, billionaires like Jason Williams made a prediction that Warren Buffett’s company called Berkshire Hathaway has the chance of making a huge investment in cryptocurrencies, BTC to be specific. The “hedge fund Tudor” Investment Corporation’s founder Paul Tudor is also pretty optimistic about BTC as in May, uncovering that the crypto-asset was a part of his portfolio.

There is another probable face in the crypto realm and he is none other than Dave Portnoy, founder, “Barstool Sports”. He recently got connected with the Gemini exchange’s founders, Cameron and Tyler Winklevoss. He took the help of the twin-brothers buying 200000 USD in BTC and 50000 USD in LINK (Chainlink). These are some of his very first cryptocurrency purchases.