Libra Vs The State: Will Regulations Ruin Facebook’s Stablecoin

Facebook’s Libra cryptocurrency has only been announced a day and regulators are eager to dip their claws in the upcoming stablecoin.
Digital currencies like Bitcoin transcend national borders and Facebook’s new Libra project is aiming to cash in on this aspect. Regulators are keeping a wide eye on Facebook as the network focuses on being the first global central bank.
Higher standards
Speaking at the ECB conference in Portugal, governor for the bank of England Mark Carney called on G7 nations to heavily scrutinise the launch of Libra.

“Anything that works in this world will become instantly systemic and will have to be subject to the highest standards of regulation. We will look at it very closely and in a coordinated fashion at the level of the G-7, the BIS, the FSB and the IMF. So open mind, but not open door.”

FDIC

Former chair for the Federal Deposit Insurance Corporation Sheila Bair recently sat down in an interview with CNBC. Bair expressed her worries on the launch of Facebook’s upcoming stablecoin saying:

“What are they doing with the money, if I give them some dollars to buy the Libra, they’re kinda being fuzzy about that in their whitepaper…The strength of the collateral is a question I would have about it.”

As reported by CCN:

“Facebook has 2.6 billion users worldwide. Those users exchange value in over 100 different currencies. Despite Libra’s claim as a future stablecoin, it’s unclear yet how Facebook will manage investment with its foreign reserves.”

Blair has called for a cryptocurrency backed by Federal entities. There is one glaring issue with this though. She noted in her interview:

“[FedCoin] would give people a very safe way to make payments. I mean you don’t have to worry about the Fed defaulting right, they can print their own money.”

The feds can very well print their money, sure. But the feds jurisdiction has a cut-off point and that is at the border.
Facebook has no borders.
Source: Crypto Daily

Bitcoin (BTC) Price Analysis: Breaks Winning Streak but Tom Lee Sees BTC at New Highs

Bitcoin completes an 11-months daily winning streak but sadly broke the trend on Tuesday.
“I think bitcoin is easily going to take out its all-time highs,” Tom Lee.

BTC/USD, the most popular trading pair closed the trading on Tuesday breaking the 11-months daily win. Bitcoin’s price posted losses of 2.87% yesterday after Bitcoin had recorded between 2-5% increase for the last six days before yesterday.
The six-day winning streak elevated BTC from the region above $8,100 to level around $9,480. Experts have connected the surge to the protests in Hong Kong due to the feared control by mainland China which has led to many individuals storing their funds in Bitcoin in addition to the hype surrounding the release of Facebook’s Libra cryptocurrency.
Bitcoin retreated from the highs around $9,480 (on Coinbase) and even failed to find support at $9,300. The losses continued below $9,200 amid the increasing selling pressure. It is clear that failure to break the psychological $9,500 caught the bulls unawares and investors rushed to take their profits.
BTC/USD 4-h chart
Chart Source: Tradingview 
In the meantime, BTC/USD changing hands at $9,070 amidst a growing bearish momentum. The drop below the broken support at $9,100 is likely to explore the area at $9,000. Marginally below the current market value the Bollinger Band 4-h lower is offering immediate support. Clearing this level result in declines testing $9,100 support.
Traders need to keep in mind that $8,800 is key support from the weekend trading. Other areas to cushion Bitcoin in case of extended reversal are $8,400, the 100 Simple Moving Average (SMA) 4-h, the two-months-long trendline, $8,000, $7,600 as well as $6,800.
In other news, the founder of Fundstrat Global Advisors, Tom Lee, a renowned Bitcoin bull reckons that Bitcoin has the potential to trend to new highs. Lee was speaking during an interview with CNBC and said that Bitcoin is becoming the reserve currency in the digital space. Lee in his opinion on Bitcoin’s potential said:
“I think bitcoin is easily going to take out its all-time highs.”
The post Bitcoin (BTC) Price Analysis: Breaks Winning Streak but Tom Lee Sees BTC at New Highs appeared first on Coingape.
Source: CoinGape

RippleNet’s new software update offers ‘bunch of functionalities’ to partners, claims Ripple executive

Recently, RippleDrop released an extended video of its latest episode, with the main focus being on RippleNet’s software update, the global payment settlement network. In the episode, Craig DeWitt, Director of Product Management, was asked how the software update on RippleNet improved customer service. To this, DeWitt stated that the software update offers a “bunch […]
The post RippleNet’s new software update offers ‘bunch of functionalities’ to partners, claims Ripple executive appeared first on AMBCrypto.
Source: AMB Crypto

Facebook’s Libra has the downside of volatility without the upside of investment, claims ex-Coinbase CTO

Primed as the “next big thing” in the intersection of the payments and technology industry, Facebook’s foray into the cryptospace took the market by storm, following its unveiling on June 18. As more and more layers of Project Libra are peeled off, the more positive does it look for the social media giant, with many […]
The post Facebook’s Libra has the downside of volatility without the upside of investment, claims ex-Coinbase CTO appeared first on AMBCrypto.
Source: AMB Crypto

Stock Indexes Do Not Reflect Economic Reality, Will it Boost Bitcoin Sentiment?

A survey of fund managers, conducted by Bank of America Merrill Lynch, found pessimism at a level not seen since the last financial crisis. The on-going trade war and the expectation of an incoming global recession are driving fears of an economic collapse, which may strengthen the image of bitcoin as an uncorrelated asset.
Nonetheless, despite the gloomy outlook, all three major US market indexes are close to their all-time highs. As such, this contrarian position has led some to label the economy a game of smoke and mirrors. Taking this into account, some look to Bitcoin an alternative, but as a niche product, is that justifiable?

“Investors haven’t been this pessimistic since the global #financialcrisis of 2008.. @BankofAmerica @MerrillLynch Lynch survey… #equity allocations saw the second-biggest drop on record… #cash holdings jumped by the most since the 2011 debt-ceiling” https://t.co/khcICiH53x pic.twitter.com/NxONuVlUIH
— Chris Versace (@ChrisJVersace) June 18, 2019

Fund Managers Go Defensive
The survey of 230 fund managers, who manage $645 billion in assets between them, showed 87% thought the economy is in “late cycle.” This refers to the third phase, of a four-phase cycle, that precedes a recession.
As far back as January this year, talk from Wall Street was all about the “late cycle” and how to trade it profitably. And now, halfway through the year, with the economy teetering on edge, the focus has turned to defensive trading.
Merrill Lynch Chief Investment Strategist, Michael Hartnett spoke about the move into safer, more liquid assets:
“Fund managers are propelling a “huge rotation” into bonds and defensive sectors like utilities and consumer staples…While others are simply stockpiling cash, which saw the biggest jump since August 2011.”
Despite this, US market indexes are booming. According to Market Watch, all three major US market indexes are closing in on all-time-highs as is bitcoin and the rest of the crypto market:
“the Dow Jones Industrial Average DJIA, +1.35% stands less than 2% from its Oct. 3 all-time closing high, the S&P 500 index SPX, +0.97% is 0.6% from its April 30 closing record, while the Nasdaq Composite Index COMP, +1.39% is about 2.1% short of its May 3 record.”
Mistrust In Government
All the same, the divergence between sentiment and market pricing has not gone unnoticed. Deutsche Bank’s Chief International Economist, Torsten Slok, said:
“Either markets have to come down to where growth expectations are, or growth and earnings expectations have to move higher to justify current market valuations.”
But others take a more candid approach. Fundstrat co-founder, Tommy Lee hints at market manipulation being the reason for the opposing indicators.

Isn’t it puzzling that:– institutions most bearish since 2008. – retail cash balances highest since early 2010
Yet, in the face is massive pessimism, S&P 500 up 17% this year and within 2% all time highs. #BTD https://t.co/UxB3uVyixu
— Thomas Lee (@fundstrat) June 19, 2019

And with that in mind, skepticism over the economic system, and by extension the government that administers it is rife. The Pew Research Centre found that only 17% of those surveyed trust the government. A historic low going back to 1958.

Bitcoin as a Hedge?
But, is Bitcoin the answer? As an uncensorable, borderless, non-inflationary monetary system, it does possess the qualities that are the antithesis to the status quo. But we should be reminded that cryptocurrencies are wholly underdeveloped. And in the case of a recession, have never been tested.
Indeed, JPMorgan analyst, Jan Loeys sees cryptocurrencies taking off only in the case of an extreme dystopian future. He said:
“We have long been skeptical of cryptocurrencies’ value in most environments other than a dystopian one characterized by a loss of faith in all major reserve assets.”
Loeys goes on to say that blockchain technology is more of a complementary system, rather than something to replace legacy systems entirely:
“Blockchain is unlikely to re-invent the global payments system, but instead can provide marginal improvements to various parts of the process.”
Of course, these comments were made before JPMorgan announced their own cryptocurrency. However, going back to Loey’s commentary on a dystopian scenario, as witnessed during the Venezuelan hyperinflation crisis, Bitcoin trading volumes surged as a result of loss of faith in the national currency, the Bolivar.

Incredibly bleak moment milestone for Venezuela. The cost of one cup of coffee just hit 1 million Bolivars. https://t.co/Fbv2NqnAFl pic.twitter.com/LvziiWUynI
— Joe Weisenthal (@TheStalwart) June 28, 2018

With that in mind, while no-one can predict the future, we do know that people will turn to Bitcoin in times of uncertainty.
The post Stock Indexes Do Not Reflect Economic Reality, Will it Boost Bitcoin Sentiment? appeared first on NewsBTC.
Source: New feedNewsBTC.com

Max’s Corner: Slouching Towards Silicon Valley

Coinspeaker
Max’s Corner: Slouching Towards Silicon Valley
This edition of Max’s Corner analyzes the controversy surrounding the changes to Google’s search algorithm, the plight of the Silk Road founder and the latest on Facebook’s crypto project.
Max’s Corner: Slouching Towards Silicon Valley

Continue reading at Coinspeaker
Source: CoinSpeaker

Crypto Exchange Bittrex Launches Decentralized Storage Project LAMB

Coinspeaker
Crypto Exchange Bittrex Launches Decentralized Storage Project LAMB
Bittrex, a global leader in the blockchain revolution announced to list Lambda – a data storage blockchain protocol, commited to creating a secure, reliable, and unlimited storage network for Value Internet.
Crypto Exchange Bittrex Launches Decentralized Storage Project LAMB

Continue reading at Coinspeaker
Source: CoinSpeaker

Brad Garlinghouse on Facebook’s Libra, CZ on Binance U.S and more

Crypto News – 19 June – Brad Garlinghouse on Facebook’s Libra, CZ on Binance U.S and more Don’t forget to follow us for our daily videos#facebooklibra #Binance #Ripple #cryptonews #cryptocurrency #Facebook #Crypto #Libra pic.twitter.com/2YRiEdpLw7 — AMBCrypto (@CryptoAmb) June 19, 2019 Crypto News – 19 June Bancor follows Binance, Bittrex’s footsteps: Decentralized trading platform, Bancor, recently announced […]
The post Brad Garlinghouse on Facebook’s Libra, CZ on Binance U.S and more appeared first on AMBCrypto.
Source: AMB Crypto

Central Bank of Russia will Hold Bitcoin [BTC] Reserves Predicts Analyst

Reportedly, Russian lawmakers, the State Duma is expected to finalize a bill on Digital Financial Assets within two weeks. They have already held discussions on the bill once and seem to have received positive votes from the house. Deputy Finance Minister of Russia, Alexei Moiseyev said,
“Now we are looking at the text [of the bill on digital financial assets] and within two weeks, I hope, we will come out for adoption in the second reading,”
As reported earlier on Coingape, the Russia Federation had passed a bill on digital currencies which introduced as a series of norms for the citizens to follow.
Currently, they are working on implementing the complete set of laws around cryptocurrencies and ICOs. Russia might be one of the few nations to allow ICOs under its crowdfunding laws. Moiseyev also added,
“Within the framework of this concept, ICO regulation was approved. second reading, “
Also Read: Report Reveals How Russian Operators Used Bitcoin to Interfere 2016 US Presidential Election
The Regulatory Environment in Russia around cryptocurrencies and Bitcoin has been quite receptive compared to other nations. France also keeps a neutral attitude towards cryptocurrencies and ICOs. US, India, China and many other nations are against ICOs as they are either Ponzi schemes or based on wrong fundamentals of being a security or a cryptocurrency. However, Russia has planned to allow them unobstructedly.
A country which promotes a range of cryptocurrencies and blockchain projects can soon be expected to be inclined to hold Bitcoin [BTC]. Mati Greenspan, the Senior Market Analyst at eToro noted,
“The CBR [Central Bank of Russia] will be holding BTC reserves within 2 years. Mark my words.”
Currently, Russia holds 4554 billion US Dollars in Central Bank Reserve. If Greenspan’s prediction holds true and Russia assigns even 1% of its reserve value to Bitcoin [BTC], it’s market capitalization would increase by $45.5 billion.
Do you agree with Greenspan’s views given the current regulatory environment in Russia? Please share your views with us. 
The post Central Bank of Russia will Hold Bitcoin [BTC] Reserves Predicts Analyst appeared first on Coingape.
Source: CoinGape

Donald Trump and Fed Chairman Distrust is Bullish for Bitcoin: Billionaire Investor

Bitcoin is going to benefit from the growing distrust between the US President Donald Trump and Federal Reserve Chairman Jerome Powell, believes Mr. Michael Novogratz of Galaxy Digital, LLC.
The billionaire founder said on Wednesday that he is becoming “more bullish” on bitcoin after President Trump reportedly threatened to demote Mr. Powell if he decides against lowering interest rates. The Federal Reserve is set to announce its take on the said matter today at 1400 Eastern Time upon concluding a two-day meeting.

Makes me more bullish $BTC https://t.co/oePdtMT1GD
— Michael Novogratz (@novogratz) June 18, 2019

Bitcoin against Rate Cuts
Economists believe the Fed is not likely to cut interest rate in June despite May’s weak job data and softer consumer price inflation. But, the central bank’s likelihood of decreasing the rates after July 30-31 meeting is higher.
Meanwhile, with an 80 percent approval of a rate cut by traders, the sentiment in the US stock market has turned bullish for the near-term. The June session so far has witnessed the S&P 500 Index, Dow Jones Industrial Average, and Nasdaq Composite posting more than 6 percent profits each through Tuesday’s close.
On the other hand, bitcoin’s month-to-date gains are lower than that of the US benchmark markets — at 3.69 percent by Tuesday’s close. The cryptocurrency’s uptrend went silent on Tuesday after the announcement of Facebook’s token Libra. Nevertheless, bitcoin’s broader bias remains bullish owing to market catalysts like the Hong Kong protests, the US-China trade war, and news related to its potential adoption by mainstream institutions (Fidelity, TD Ameritrade, etc.).
Bitcoin Price has Surged More than 150% in 2019 | Image Credits: TradingView.com
Hand in Hand
The two diverse markets now meet at the crossroad constructed by the Federal Reserve. Investors who have both the US stocks and bitcoin in their portfolios are looking at rate cuts as a hedge against a potential economic slowdown. According to Barclays, the US benchmark markets could witness a surge of as much as 21 percent following the next rate cut. The same theory stands true for bitcoin, which could see an increase in buying sentiment if US dollar borrowing becomes cheaper.
But the interim sentiment holds if only Mr. Powell decides to cut interest rates. An opposite scenario, meanwhile, could hit the bitcoin market in the wrong way — at least according to Robert Leshner, the founder of Compound Finances.
“We’re finally starting to enter an environment of rising interest rates which crypto has never seen before and it’s going to be potentially challenging to the price of a lot of crypto assets just like it will be for a lot of assets in general, including equities.”
Long-Term Sentiment
The following rate cut scenario does not guarantee a soft landing for the US economy, according to Ryan Detrick of LPL Financial.
The senior market strategist noted that the Fed is going to cut interests at a time when a potential recession is looming around. He said the previous two times the Fed slashed the rates were in 2001 and 2017, which eventually cut the stocks cut by half.
“But the reality is if you go back further in time, you can also see explosive rallies after that first cut,” Mr. Detrick said.
Meanwhile, data collected by Barclays shows the S&P 500 records a loss of approx 17 percent when the Fed cuts rates ahead of an impending recession.
Bitcoin’s impressive performance in May against the backdrop of the US-China trade war has proved that investors would likely consider it a hedge under challenging times. US-based Grayscale Investments found plenty of evidence that showed the bitcoin price rising against a string of regional economic tensions, ranging from China’s capital control to the Greece debt crisis. The firm wrote in its report:
“While it is still very early in Bitcoin’s life cycle as an investable asset, we have identified evidence supporting the notion that it can serve as a hedge in a global liquidity crisis, particularly those that result in subsequent currency devaluations.”
That somewhat raises hopes of bitcoin behaving as a perfect hedge for handling a global economic crisis.
No wonder Mr. Novogratz is more bullish on the cryptocurrency.
The post Donald Trump and Fed Chairman Distrust is Bullish for Bitcoin: Billionaire Investor appeared first on NewsBTC.
Source: New feedNewsBTC.com

Storecoin’s Third Milestone Token Offering Launching, Ari Paul and BlockTower Capital are Early Backers

June 20th 2019 Milestone Token Offering [MTO] Planned for Storecoin This Regulation D and Regulation S securities offering sets out to bring in over 500 new wallets, and up to $4.97 Million of Treasury into the project. Storecoin is a zero-fee payments and p2p cloud computing platform with early backing from Ari Paul of BlockTower, […]
The post Storecoin’s Third Milestone Token Offering Launching, Ari Paul and BlockTower Capital are Early Backers appeared first on AMBCrypto.
Source: AMB Crypto

CFTC busts fraudulent Bitcoin trading scheme; charges accused of swindling BTC worth $147 million

In sync with rising crypto-adoption, government bodies have stepped up and implemented stricter regulations, in light of the space’s history and susceptibility to fraudulent activities. The Commodity Futures Trading Commission (CFTC) has been making a lot of effort in this regard and recently, caught a Bitcoin trading and investment company for fraudulent activities. According to the civil […]
The post CFTC busts fraudulent Bitcoin trading scheme; charges accused of swindling BTC worth $147 million appeared first on AMBCrypto.
Source: AMB Crypto

Ethereum (ETH) Could Kick Off A Mini Altcoin Season As Early As This Week

Ethereum (ETH) is struggling to break out of the symmetrical triangle it has been trading in since the beginning of the month. The price started to rally significantly around June 10 and topped out around June 16. However, it is once again ready to climb towards the top of the triangle having just tested the bottom of the triangle recently. ETH/USD has also found support on the 50 EMA on the 4H time frame. The price has also yet to break the ascending channel it has been trading in for the past few months. This gives the bulls more hope that the price could take off from here to kick off a mini altcoin season as early as this week.
The 4H chart for ETH/USD shows that the price is ready to rally from here and the RSI shows that there is ample room to do that. It is still hard to say if the price will eventually end up testing the top of the ascending channel it is trading in but we are certainly going to see a break out of the symmetrical triangle in the near future. Considering that Bitcoin (BTC) has yet to rise further before it tops out, we expect Ethereum (ETH) to follow suit and the price is therefore more likely to break above the symmetrical triangle than below it. That being said, traders should account for both eventualities and manage their risk accordingly. The symmetrical triangle on the chart can also be interpreted as an ascending triangle which would give the bulls more reason to be bullish short term.

Trading is like a war and there are different sides. One side has to lose in order for the other side to win because it is a zero sum game. This is why it is important to know the enemy because there is one. The ‘enemy’ is the whales or market makers. Now, both of them serve a very important purpose in this market because without them there would be no liquidity but when someone has this much control without adequate accountability, it leads to corruption. This is what we have seen in this market in the form of pumps and dumps.

So, while it is important to spot patterns on a chart, it is more important to understand the working behind those patterns and to ask yourself how and why you might be seeing these patterns. The 4H chart for ETH/BTC shows the price trading within a falling wedge inside a large bull flag. This is a very strong bullish setup and it suggests that we might see a breakout in Ethereum (ETH) in the near future. However, it is important to understand the limitations of each time frame. It would be unreasonable to use the 4H time frame to deduce that ETH/USD is going to keep rallying for the next few months. While this is a good setup for a bullish entry short term, it is important to realize that the price remains overbought on larger time frames and is due for a major correction long term. 
Source: Crypto Daily