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Crypto Threat: Global Bank Regulators Warn Bitcoin May Harm Traditional Financial Sphere

  • Yuri Molchan
    📰 News

    🔥🔥🔥A consortium of banks and financial regulators issues a public warning that crypto may disrupt current banks’ domination over the global economy ⚖💣


Crypto Threat: Global Bank Regulators Warn Bitcoin May Harm Traditional Financial Sphere
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On Wednesday, March 13, a group of the world’s bank regulators dubbed the Basel Committee published a statement spreading concern that the growth of the digital asset industry may have a tremendous impact on the conventional industry of finance.

BIS

 


Banks’ statement of fear of crypto

In particular, the statement tells of fear that the actual growth of platforms that trade crypto assets and new tools based on them are able to bring higher risks into the traditional banking sector and decrease overall financial stability in the world.

The Basel group believes that among these potential risks are the ones that can rise in the sphere of liquidity, loans and other financial operations, as well as higher chances of financing terrorism and laundering dirty cash. Besides, the group expressed concern that crypto can provide a great basis for new types of scams and fraud.

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No surprise for the crypto community

Numerous crypto fans and supporters of decentralized economy were hardly surprised by this stance. Major financial institutions and banks have been negative about mass crypto adoption since Bitcoin and altcoins only began their rise in the market and in minds of crypto supporters, showing a potential to change the economy and business for good.

Even though last year showed a high degree of volatility on the crypto market, which followed the collapse of the Bitcoin rate, the potential remains and many prominent investors and financial analysts and traders are expecting a bull run to start again this year.

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Stablecoins are leading the way

Still, despite the harsh 2018, stablecoins managed to receive quite high levels of adoption. Even such an IT behemoth as Facebook turned towards blockchain and is now about to launch its own stablecoin for WhatsApp. A US-dollar peg is expected to protect it against the high volatility level.

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Bitcoin's April 2 Breakout Was Reportedly Orchestrated by One Trader


Bitcoin's April 2 Breakout Was Reportedly Orchestrated by One Trader
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It’s been over two weeks since Bitcoin’s astronomical surge on Apr. 2, but new theories about what might have caused this bullish uptick continue to pop up. According to crypto-oriented analytical firm CoinMetrics, that epic surge was causes by a single trader.

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Mammoth-size trades

CoinMetrics claims that ‘a single committed trader’ concocted a plan to push the BTC price, and he successfully managed to do that by picking the time of the day when the global liquidity is at its lowest level.


(Source: CoinMetrics.io)

(Source: CoinMetrics.io)  

The report also suggests that the trader started to execute his plan on HitBTC (500,000 USDT were traded for Bitcoin prior to the price movement). After that, large trades were observed on Coinbase and Bitfinex.      

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Focusing on the future

Meanwhile, as reported by U.Today, another theory states that the rapid price surge was triggered by the expiration of the CME futures contracts and heavy spot and over-the-counter buying. One expert went as far as claiming that a simple April joke about the Securities Exchange Commission (SEC) could do the trick.

While no one is quite sure about what could have triggered the short-living rally, there is even a bigger disconnect when it comes to Bitcoin price predictions. While some share their bullish predictions for 2019, another report states that it could take 22 years for Bitcoin in order to match its current ATH of $20,000.

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