Cryptocurrencies: Mastercard’s CEO calls digital currencies "junk"

Summary:

• Banks from BRICS countries plan to explore the blockchain technology potential

• Ajay Banga, CEO of Mastercard, addressed virtual currencies

• The Iranian state-backed cryptocurrency is nearer and nearer

Early trading on Friday can be described as sluggish when it comes to the cryptocurrencies. Bitcoin is erasing a part of its gains, whereas altcoins are trading rather flat on the weekly basis. Over the past 24 hours cryptocurrency market took a step back. The capitalization of the whole market stands a notch above $290 billion while the Bitcoin market cap sits around $135 billion. Today’s major topics concern CEO of Mastercard’s critical remarks as well as Iranian state-backed virtual coin.

Firstly, let’s mention Mastercard’s CEO as he criticized virtual currencies. Ajay Banga named cryptocurrencies “junk” due to their high volatility and degree of anonymity they present. On the other hand, Mastercard’s boss expressed interest in the state-backed digital currencies. While Banja may be an opponent of virtual currencies it should be noted that his company explores the potential of the blockchain technology. One of the biggest payment firms in the world has filed for some patents related to this modern technology in the past. 

The recent Bitcoin bull run may have already finished. The cryptocurrency has pulled back from $8400 to nearly  $7800 in the past two days. BITCOIN is trading around the $7900 handle at press time, where the 33-period moving average on the H4 interval can be localized (a purple line on the chart). A clear break below the mentioned average could result in an extended downward move. Source: xStation5

What’s more, a group of development banks from BRICS countries is planning to explore the potential of the blockchain technology. Banks consider using blockchain in eg. international transactions. Given that these banks are state-owned a success in this field could bring us closer to the development of the first digital economy in the world. However, we do not know when this idea could be implemented. BRICS is a group of five emerging economies. The abbreviation stand for Brazil, Russia, India, China and South Africa. 

LITECOIN is trading slightly above its prior swing level around the $80 handle. The digital currency has broken below the 33-period moving average recently(a purple line, H4 interval). The prevailing downward pressure may cause the coin to test the short term support zone ranging $79.40-$80.60 in the nearby future Source: xStation5

Last but not least, the Iranian Government is preparing to issue a state-backed digital currency. The Iranian governmental coin may help the country at least partially ease worsening economic condition resulting from renewing of the US sanctions. The coin could be used as both, the domestic currency and mean of international payments. However, as this is just the idea we will have to wait to see whether and how it impacts the country’s economy.