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November blockchain activity in Norway is hinting towards new CBDC

November blockchain activity in Norway is hinting towards new CBDC

Norwegian financial industry is facing some major news. Recently making a central bank digital currency (CBDC) has been one of the hottest topics of the country. This is not a big surprise because today there is a tendency in the world’s leading countries to digitize certain industries and financiers are among those industries. China, Sweden, and Denmark are among those countries that are currently discussing the creation of digital currencies. Probably Norway is going to join the list considering the great increase in blockchain activity of this month in Norway. 

The country is showing the biggest confidence in the use of cryptocurrencies even in the middle of the coronavirus crisis. The prediction about the blockchain space is becoming more and more optimistic in Norway as a result of the increased blockchain activity in November. The increase in crypto use is no surprise for Norway because the government in the country strictly regulates the cryptocurrency market and even more, they try hard to bring innovations to the market. For example, recently crypto mining company Bitfury developed a plan to upgrade crypto-related infrastructure in Norway that is worth $35 million. As Cointelegraph reports, the firm is going to launch crypto mining as a service and apply changes to existing cryptocurrency infrastructure which will probably push even more people to use cryptocurrencies. 

Besides, the increased activity in the blockchain space can be related to the growing popularity of the online gambling industry during the pandemic. Gambling in Norway is legal and harshly regulated. As a result, online casinos operating on the Norwegian market are known for their high secure measures and this safe gambling environment pushed many new customers during the lockdown to enter the industry. Therefore, the usage of cryptocurrencies increased even more and today most of the people involved in the gambling industry are actually aware of the many advantages of bitcoin and other digital currencies.

This is why it’s believed that introducing CBDC which is a completely new form of digital currencies can actually work in Norway and bring tons of benefits to the economy of the country as a result. 

Why is it a good idea to integrate CBDC in Norway?

Norway is among those countries that are believed to be at the top of the list of countries that will fully integrate CBDC in their practice. The main reason for this is probably a falling level of cash use. People in Norway tend to keep up with digital technologies, which is why they almost stopped using physical money. Specifically, recently it was announced that the cash usage in Norway has drastically decreased and in fact, today cash is used only by 4% of the Norwegian population. The decrease is especially notable since the lockdown started which has a number of reasons. First of all, during several months people were sitting at home, all the stores and places where the money is usually used were shut down and there was no need to use physical money. Besides,  holding actual money in hands and exchanging it with other people raises the risks of getting infected and personal contact with strangers is one of the most dangerous threats to our health these days. So, people started to switch to digital money almost completely, and as a result, cash usage has declined. 

Although the first wave of the pandemic has already passed, cash share today is approximately the same and even a little bit lower. What is more important is that this kind of low number hasn’t been observed in any other country and therefore, the cash usage is lower in Norway than in any other country. This means that Norwegian people are ready to say goodbye to a traditional physical krone and switch to digital money. However, the central bank prefers to start realizing its plan and launch CBDC instead of bitcoin and other cryptocurrencies because indeed, the digital krone legalized by the central bank will have more advantages than those benefits provided by cryptos. 

Is it necessary to integrate CBDCs in Norway?

Despite the fact that increased use of blockchain makes us believe that Norwegians are ready to start using CBDCs, studies prove the opposite. After four years of continued research, now Norway has finally concluded that there is no urgent need for launching the central bank digital currencies. Even if it’s certain that CBDC’s will bring certain advantages to the economy of China or Denmark, the CBDC system may not be so useful at the given moment for Norway. Like many other countries, Norway is in its developmental phase of this initiative as well and tries hard to design the most optimal system of digital currency and explore related technological solutions. But the central bank of Norway is concerned about disrupting the existing monetary system and its consequent impact on politics and the economy. 

To understand possible risks, let’s first make clear what CBDC actually means. A central bank digital currency is a digital type of national money that was inspired by bitcoin but pretty much differs from cryptocurrencies which are not issued by the government. Therefore, implementing this digital currency in the national financial system will cause great changes in the structure of the monetary and payment systems. This is why Norges Bank, the central bank of Norway tries hard to estimate whether it’s appropriate to issue CBDC in Norway to ensure an efficient and secure payment system in the country. 

For now, the central bank presumes that although introducing digital currencies will probably be beneficial for the country’s long-term economy, at the given moment there is no desperate need to take steps forwards right now. As they believe, it’s better to continue conducting research and analyze the consequences of this new payment method and take further steps only after maintaining confidence in the monetary system. Only after this, the central bank will start thinking about achieving the goal of introducing a central bank digital currency.

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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ETH/USD Bulls Eyeing 668.87 as Upside Target: Sally Ho's Technical Analysis 4 December 2020 ETH

ETH/USD Bulls Eyeing 668.87 as Upside Target: Sally Ho's Technical Analysis 4 December 2020 ETH

Ethereum (ETH/USD) extended its recent strong price activity as traders continue to eye the psychologically-important 650 level following the pair’s ongoing gains.  Notably, ETH/USD has appreciated approximately 77% since the beginning of October, and has appreciated approximately 64% since the beginning of November.  The pair has recently traded around its recently-established multi-year high around at the 636.53 level, an area that was reached after Stops were elected above another recent relative multi-year high around the 623.22 area.  This recent multi-year high also represented a test of the 637.79 level, an upside price objective related to buying pressure that emerged earlier this year around the 135.12 area.  Additional upside price objectives include the 668.87, 679.78, and 698.88 areas, levels that relate to buying pressure that emerged earlier this year around the 125.52, 122.15, and 116.25 areas.

Following the move to a recent multi-year high, traders are paying close attention to recent areas of upside buying pressure, including the 370.50, 423.00, 439.77, and 480.08 areas.  Some important retracement levels related to these ranges include 561.37, 534.91, 514.93, 503.52, and 472.12Below current price activity, additional areas of technical support include the 507.55, 474.77, 406.48, and 395.87 levels. Traders are observing that the 50-bar MA (4-hourly) is bullishly indicating above the 100-bar MA (4-hourly) and above the 200-bar MA (4-hourly).  Also, the 50-bar MA (hourly) is bullishly indicating below the 100-bar MA (hourly) and above the 200-bar MA (hourly).

Price activity is nearest the 50-bar MA (4-hourly) at 567.55 and the 50-bar MA (Hourly) at 596.14.

Technical Support is expected around 417.60/ 388.49/ 366.72 with Stops expected below.

Technical Resistance is expected around 637.79/ 668.87/ 679.78 with Stops expected above.

On 4-Hourly chart, SlowK is Bullishly above SlowD while MACD is Bullishly above MACDAverage.

On 60-minute chart, SlowK is Bearishly below SlowD while MACD is Bullishly above MACDAverage.

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BTC/USD Bulls Eyeing 20311 as Upside Target: Sally Ho's Technical Analysis 4 December 2020 BTC

BTC/USD Bulls Eyeing 20311 as Upside Target:  Sally Ho's Technical Analysis 4 December 2020 BTC

Bitcoin (BTC/USD) extended its recent strong price activity as traders continue to eye the psychologically-important 20000 figure following the pair’s ongoing gains.  Notably, BTC/USD has appreciated approximately 84% since the beginning of October, and has appreciated approximately 44% since the beginning of November.  The pair has recently traded around its recently-established all-time high around the 19915.14 area, a level that was established after Stops were elected above the previous all-time high of 19891.99.  Additional upside price objectives include the 20311.36, 20534.46, and 21909.24 areas, levels that relate to buying pressure that emerged earlier this year around the 6430.00 and 6854.67 areas.

Following the move to a recent all-time high, traders are paying close attention to recent areas of upside buying pressure, including the 13215.00, 14310.00, 15708.24, 16200.00, and 17610.77 areas.  Some important retracement levels related to these ranges include 18762.96, 18154.60, 17355.69, 17112.57, 16701.07, 16304.69, and 15935.90.  Below current price activity, additional areas of technical support include the 14273.50, 14259.01, 14101.50, 13989.55, 13892.29, 13705.50, 13663.43, and 13594.42 levels. Chartists are observing that the 50-bar MA (4-hourly) is bullishly indicating above the 100-bar MA (4-hourly) and above the 200-bar MA (4-hourly).   Also, the 50-bar MA (hourly) is bullishly indicating above the 100-bar MA (hourly) and above the 200-bar MA (hourly).

Price activity is nearest the 50-bar MA (4-hourly) at 18393.19 and the 50-bar MA (Hourly) at 19034.75.

Technical Support is expected around 16200/ 15996.17/ 15479.66 with Stops expected below.

Technical Resistance is expected around 19915.14/ 20311.36/ 21909.24 with Stops expected above.  

On 4-Hourly chart, SlowK is Bullishly above SlowD while MACD is Bullishly above MACDAverage.

On 60-minute chart, SlowK is Bearishly below SlowD while MACD is Bullishly above MACDAverage.

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Why the Philippines is in a unique position for crypto adoption

Why the Philippines is in a unique position for crypto adoption

Many countries in the world are still resistant to letting their citizens legally use cryptocurrencies. However, the popularity of blockchain technology rapidly increases, and more and more countries are aware of the benefits related to the implementation of cryptosystems in their national financial markets. Today the whole world is switching to online payments and needless to say that digital currencies like cryptos are the best option to conduct payments in a quick and effective manner. However, some countries find it hard to adopt cryptocurrencies. But still, there are many countries that are believed to have amazing opportunities for developing the crypto ecosystem and one of them is the Philippines.

The landscape for crypto adoption is much more promising in the Philippines compared to many other developed countries. For years, the country has been trying hard to become crypto-friendly and this is why cryptocurrencies were legalized in the country in 2014. However, the most popular crypto, Bitcoin isn’t on the list of the digital currencies that are regulated by the Central Bank of the Philippines, and therefore, after that, the country still had to do a lot in order to fully integrate cryptos into their market. 

IMF sees huge potential in the Philippines

Now the Philippines is widely considered as a unique position for crypto adoption. Recently the International Monetary Fund (IMF) has released a report where it’s said that the crypto conditions in the Philippines are very favorable at this moment. According to the report, the Philippines should work on the way to the crypto adoption process because the country attracts more and more customers to the crypto sector. They encourage the officials to take more steps forwards in increasing the usage of blockchain technology because, considering the monetary and financial data, the Philippines has a real potential to become an effective market for these digital assets. 

Besides the fact that the customers of the country are more interested to use cryptocurrencies in daily transactions and also the number of crypto exchanges has increased, one more important reason why the Philippines has this much potential for integrating cryptocurrencies is their politically favorable atmosphere. The Philippines has really good relations with the US which is the biggest investor in the country. Specifically, the U.S. Securities and Exchange Commission (SEC) successfully performs its activities in the Philippines and the majority of SEC verified forex companies in the Philippines are US brands, meaning that there is space for further financial cooperation. Usually, the SEC ensures that investors that operate with local forex traders are protected and are responsible for maintaining fair functioning of the securities markets. 

However, it’s important to note that SEc is not the only leading investor in the Philippines, and as a result of their unique location, it’s a popular option for foreign investors from China and Japan, both very strong crypto countries. This is why the IMF believes that all it takes is just regulatory clarity for the country to thrive.

The increasing number of crypto exchanges

The increased number of crypto exchanges is another important reason why the Philippines is becoming more crypto-friendly. Recently Bangko Sentral ng Pilipinas, a central bank of the Philippines has announced that they plan to register more crypto exchanges, after already registering 13 of them. Also, the Securities and Exchange Commission has been working hard to develop crypto guidelines. These crypto projects play an important role in boosting the number of crypto exchanges. 

Besides, the country is known for its special economic zone where various crypto exchanges from overseas are officially allowed to operate as the authorities gave them a license recently. Specifically, it was revealed in June that 27 crypto exchange operators are licensed from the Cagayan Economic Zone Authority (CEZA) which has been establishing a “Crypto Valley of Asia” for firms that are operating in Cagayan Special Economic Zone. However, they are still not allowed to sell securities to Filipinos or to exchange tokens into fiat money. 

Many changes are still yet to come and this is why the Philippines is considered as one of the most optimal places for crypto adoption. However, it’s important to validate the practical need for cryptocurrencies among the local workers. Today a lot more has to be done because still, about 77% of Filipinos don’t have bank accounts because of the inaccessibility of some necessary documents and inadequate funds. But more than 10% of adult residents of the country are turning to cryptocurrency as a payment method. 

The need for the adoption of cryptocurrencies has become even more obvious after the lockdown because during this whole time people have been making digital money transactions and everybody realized the advantages of digital currencies. Now even more research is being conducted in order to identify how effective the crypto policies are in the country and what are advantages of traditional payment methods. But one thing is certain - people are already finding it practical to use cryptos despite the doubts and speculation surrounding digital currencies.

 

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Gary Cohn, a former member of the Trump administration, criticises BTC due to the lack of transparency

Gary Cohn, a former member of the Trump administration, criticises BTC due to the lack of transparency

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  • Gary Cohn, a former economic chief who worked from 2016 to April 2018 under the Trump administration has recently criticised the bitcoin industry.
  • Gary quit his job in the administration after disagreeing with numerous people within the position who oppose his proposals about tariffs.

Gary Cohn, a former economic chief who worked from 2016 to April 2018 under the Trump administration, has recently criticised the bitcoin industry.

Gary left his job in the administration after disagreeing with numerous people within the position who oppose his proposals about tariffs.

The President of Goldman Sachs, as he was before joining the administration, has said that transparency is one key reason as to why bitcoin may fall in the future.

He goes on to highlight that a good asset class is an asset class that can maintain its integrity by not keeping any secrets about its holders.

Many people would argue that the secrecy and mystery surrounding bitcoin is what makes it so alluring but because bitcoin doesn’t have an audit log, it is a big reason as to why it performs poorly in this area.

Interestingly, the comments from Gary come when bitcoin is getting ready to reach its all-time high of $20,000 by the end of the year. As to whether it will reach such a level is unknown but many analysts are predicting a bullish year for 2021 nevertheless. That being said, it is worth noting that we are not financial advisers and this is not financial advice. Investing in a cryptocurrency like bitcoin can be risky so it is always worth doing your research before putting your money into a digital asset. 

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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