Summary:
- Chinese central bank is reportedly close to issue its own cryptocurrency
- India likely to suffer once the govt bans cryptocurrencies
- Bitcoin keeps approaching the 75DMA
PBoC to issue its digital currency
Everybody who is fixated on cryptocurrencies has to be happy with the latest big news coming from China that hit the wires at the beginning of this week. Namely, according to Mu Changchun, deputy director of the People’s Bank of China’s payments departement, the institution is nearly ready to issue its sovereign cryptocurrency. Let us remind that the Chinese central bank has been working on its own digital currency for the latest five years. Moreover, it has not been alone in doing so as similar researches have been undertaken in other central banks in the world. The Sweden’s Riksbank could be a good example here (it mulls over such a solution due to the fact that the country is considered the most cashless in the world - more people have access to a payment card than to cas, according to CNBC). Getting back to the China’s topic let us notice that Beijing is likely to launch its cryptocurrency via a two-tier system (both the central bank and commercial banks would be legitimate issuers). What could be particularly important, a new cryptocurrency would not rely exclusively on blockchain, maintaining instead a more neutral stance when it comes to technology.
Possible blow to India
There is no doubt that Asian countries are on top when it comes to developing new technologies, thus their impact on those technologies (how quickly, if any, they would develop) might be significant. India is among those countries and it turns out that the country might suffer a big loss if digital currencies are banned altogether there. Namely, India might lose as much as $12.9 billion in this case, according to Sidharth Sogani, the CEO of crypto and blockchain research firm Crebaco Global. On the other hand, she claims that it is rather unlikely the country will ban crypto trading, instead the authorities would have to regulate it. She said, referring to what the authorities in India could do, “They will have to regulate it, because if they don’t, it will raise a question as how they will implement a ban on a population of 130 Crore people [...] They don't seem to have the mechanics of doing that, given India is country of 1.3 billion people.” Let us recall that a proposal to ban cryptocurrencies in India arose at the end of July. No decision has been taken until then.
Bitcoin trades lower
Bitcoin has been trending down in recent days and it is approaching its important support in the form of the 75DMA. This line along with $9500 could be the area where bulls might look for a change in the current short-term trend. Source: xStation5
