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Bitcoin ‘Direct Threat’ May Be Handled by Canada’s Central Bank Through Launching Its Own Crypto

  • Yuri Molchan
    📰 News

    Bank of Canada mulls creating its own centralized coin to collect personal data of citizens and handle the ‘direct threat’ coming from Bitcoin and other crypto currencies

Bitcoin ‘Direct Threat’ May Be Handled by Canada’s Central Bank Through Launching Its Own Crypto
Cover image via www.123rf.com
Contents

Many experts believe that within the next few years all national currencies will be digitized. China is the ‘pioneer’ in this industry as its central bank (the PBOC) is already testing its centralized, yuan-based CBDC (Central Bank Digital Currency).

In one of his recent interviews on CNBC, Anthony Pompliano stated that the USD must be digitized as soon as possible, otherwise the US risks losing its leadership in this area to China.

They could have used Libra to win this competition, said Pompliano. However, US regulators are raising more and more hurdles for Libra’s launch with major partners already backing out of the project.

Now, the Bank of Canada (BoC) is considering the launch of its own digital currency to replace cash and to eliminate a ‘direct threat’ coming from Bitcoin and other little-regulated crypto.

 

New crypto to co-exist with fiat paper currency

The Logic has reported that an internal presentation has been given to the BoC’s board and the head of the bank, Stephen Poloz. In theory, PoB’s cryptocurrency would allow collecting citizens’ personal data and track what they spend money on.

The presentation was titled “Central Bank Money: The Next Generation” and it was the result of a research that lasted two years. The goal was to offer reasons on why the central bank should or should not issue its own CBDC.

The presentation contains numerous benefits to the BoC from launching its CBDC. Those include convenient and secure wiring of funds.

The only drawback was that such a digital coin would impose risks on “stable, low-cost funding for (banks) (deposits).”

In the light of Bitcoin and other crypto being often used for illegal and criminal activities, the CBDC of the BoC could solve this problem inside Canada.

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Is users’ personal data to be collected?

As mentioned above, one of the goals of the potential launch of this currency would be to control the way Canadian citizens spend their cash.

However, in an e-mail to the Logic, while answering their questions, the spokesperson of the BoC said that the launch of the CBDC is not yet confirmed. he said that the issue of collecting personal data of users is still being widely assessed and discussed.

 

Do you believe that the BoC will launch its digital currency? Share your view in the comments section!

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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TOP 3 Price Predictions for BTC, ETH, XRP: Next Stop for the Bears?

  • Denys Serhiichuk
    📈 Price Predictions

    Analyzing the reasons for today’s cryptocurrency market decline

TOP 3 Price Predictions for BTC, ETH, XRP: Next Stop for the Bears?
Cover image via www.tradingview.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

November 22nd started with a huge market dump as Bitcoin, the top cryptocurrency, lost nearly 10% of its value since yesterday. The altcoins have also followed today's downward trend, as the top 10 coins are all located in the red. 

Top 10 coins by Coinstats

Here is key information about Bitcoin (BTC), Ethereum (ETH), and XRP (XRP).

Name

Ticker

Market Cap

Price 

Volume (24H)

Change (24H)

Bitcoin

BTC

$129,201,282,733

$7,153.53

$29,610,280,555

-9.95%

Ethereum

ETH

$16,292,927,175

$149.96

$10,741,686,263

-11.77%

XRP

XRP

$10,151,900,406

$0.234456

$1,818,796,100

-4.67%

BTC/USD 

Our BTC prediction from yesterday came true as the price has almost reached the expected $6,875 mark.

BTC/USD chart by TradingView

Today’s sharp price drop for the leading crypto has more to do with a fundamental reason than a technical one. This mainly happened because of China's policy to ban any providers of crypto transactions to its citizens.

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Looking the 4H chart, BTC has updated the bottom by touching the $7,000 mark. It is unlikely to go any deeper according to the Stochastic RSI and other indicators because they are showing that BTC is oversold. Meanwhile, the $7,500 mark will be retested soon as this previously served as a support level for BTC. A bounce back might occur through the end of the current week.

At press time, BTC is trading at $7,114.

ETH/USD

Compared to BTC and XRP, ETH has faced the biggest price drop (more than 11%) since yesterday.

ETH/USD chart by TradingView

Even though ETH has lost significant value from its shares, it is more likely to return to its previous positions faster than BTC. The last bearish candle has a long wick, which suggests that sellers could not fix the rate below $150 for a long period of time. Moreover, the coin is oversold on all time frames, especially the daily ones. Respectively, this chief altcoin could come back to the $155-$160 range soon.

At press time, ETH is trading at $149.74.

XRP/USD

XRP has shown the best price dynamics against the market decline. While the majority of altcoins have lost about 10%, the rate of the third most popular crypto has been reduced by 5%.

XRP/USD chart by TradingView

XRP has more than justified our previous scenario as the rate has gone far below the $0.24 mark. In terms of a short-term price projection, it is bullish as sellers have almost sold everything, giving a chance for buyers to accumulate positions before an additional decline against the bearish market. To sum it up, a bounce back could push the price up to $0.2450. 

At press time, XRP is trading at $0.2323.

Only the most important posts per day. Infographics, analytics, reviews & summaries. Join our Telegram channel!

About the author

With more than 5 years of trading, Denys has a deep knowledge of both technical and fundamental market analysis. Mainly, he has started his blog on TradingView where publishes all relevant information and make predictions about top coins.
Thus, his experience is backed up by working in top blockchain related companies such as W12, Platinum Listing & ICO Advisory, ATB Coin, and others.

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