The European Central Bank has warned the global community about the risks of so-called “stablecoin runs.” Analogous to the term “bank runs” in the traditional financial system, stablecoin runs could occur if end users lose confidence in the issuer or its network, the ECB writes in a report released Tuesday. In traditional finance, a bank run occurs when a large number of customers withdraw their deposits simultaneously over concerns of the bank’s solvency. As more people withdraw their funds, the probability of default increases, triggering more withdrawals. The ECB goes on to say that, during such a run, some parts …

The world now has so much debt that, for the first time ever, it is impossible to add more, says Max Keiser. On the latest edition of his Keiser Report TV show on Sep. 22, the RT host warned that central banks were responsible for global debt reaching a new “inflection point.” Keiser on debt: “We’re at saturation point” Together with co-host Stacy Herbert, Keiser referred to comments from Singapore’s central bank, the Monetary Authority of Singapore (MAS), which last week warned that copying economic recovery methods after World War Two would not work in 2020. Central banks worldwide have …

Bitcoin (BTC) is getting its best “advertisement” once more as another major central bank floats the idea of charging people to save their money. As Bloomberg reported quoting minutes of a meeting held Thursday, the Bank of England (BoE) has become the latest central bank to discuss negative interest rates. Negative rates “would drive BTC adoption” According to the results of the meeting, the BoE will enter discussions with banking regulators over negative rates, which effectively mean lending institutions, and, hence, savers must pay to store cash. The reason is the impact of the coronavirus lockdown on the economy, along …

Bitcoin (BTC) will “crash” when the world finds a coronavirus vaccine that works, popular author Robert Kiyosaki claims. In a tweet on Sep. 15, Kiyosaki, famous for his book, “Rich Dad Poor Dad,” warned that a functional solution to Covid-19 would send safe-haven assets plummeting. Kiyosaki: vaccine “crash” will be Bitcoin buying opportunity “What happens when vaccine is proven? Gold silver Bitcoin will CRASH. Buying opportunity,” he wrote. Continuing, Kiyosaki argued that the virus was masking the “real” issues at stake for the United States economy in particular. With $26.7 trillion in debt according to monitoring resource U.S. National Debt …

China’s central bank digital currency (CBDC) known as the digital yuan should be regulated in line with cash-related laws, according to a senior exec at the country’s central bank. In an opinion article on Sept. 14, Fan Yifei, a deputy governor of the People's Bank of China (PBoC), outlined the major regulatory principles for the operation of the digital yuan. the digital representation of the official currency of the People’s Republic of China. According to Fan, the digital renminbi is legally compensatory to the traditional fiat currency. In the article, the deputy governor outlined that the digital RMB is “mainly …

The world’s largest exchange, Binance, is delisting its own token for trading against the Uganda shilling (UGX). According to a Sept. 9 announcement, the Binance Uganda platform decided to delist and cease trading on all trading pairs for Binance’s native token, Binance Coin (BNB). The BNB/UGX trading pair will be officially removed from Binance on Sept. 17, while BNB deposits will be terminated on Sept. 10, the exchange said. BNB withdrawals will be still available on Binance Uganda till Nov. 6, Binance noted. Binance provided little information about the reasons behind the delistings, only stating that the BNB/UGX trading pair …

Three to five nations worldwide will entirely replace their fiat currency with a central bank digital currency, or CBDC, by 2030, a European think tank predicts. Dutch fintech-focused non-profit think tank dGen released a report devoted to geopolitical trends of CBDCs on Sept. 9. Titled “CBDCs: Geopolitical Ramifications of a Major Digital Currency,” the 30-page report takes a deep dive on the status of major global fiat currencies like the United States dollar, the euro, and China’s yuan. Compiled with support from institutions like the European Central Bank (ECB), Standard Chartered Bank, and the Frankfurt School, the report makes some …

Huge gains in stock markets despite the dire economic consequences of coronavirus may soon be a thing of the past, one analyst warns. In a tweet on Sep. 4, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said that gold may soon get the limelight as markets reach an “inflection point.” Strategist: fiat markets may soon face day of reckoning “In a battle of the bulls, we see greater potential endurance favoring #gold over the #Nasdaq,” he wrote. “The conundrum of monetary and fiscal stimulus lifting most assets may be nearing an inflection point, where the increasing certainty of QE …

There are more U.S. dollars than ever, but the rate at which they move around the economy has never been so low. That was according to the Federal Reserve’s own statistics on Aug. 31, which showed that a collapse in M2 money supply velocity had come despite record money printing. The rise of the “cantillionaires” The M2 supply topped $18 trillion in 2020 thanks to coronavirus countermeasures, while velocity fell below 1.125 for the first time since at least the 1940s. This year marks a clear contrast to historical data, with sudden volatility in both metrics worryingly clear to see. …

Eswar Prasad, a professor of Trade Policy at Cornell University and a senior fellow at the Brookings Institution, believes that even though China’s digital yuan will enhance the renminbi’s role as an international payment currency, it will “hardly put a dent” in the US dollar’s status as the dominant currency. In an opinion piece published in Project Syndicate, Prasad states that the Chinese government should keep reforming the country’s financial markets and remove restrictions on capital flow to put both China’s CBDC and national cross-border payments system in the global sphere to strengthen its adoption. According to the professor, the …

Galaxus, the largest online retailer in Switzerland, could start accepting payments in a stablecoin issued by local cryptocurrency bank Sygnum. According to an Aug. 27 tweet by Sygnum, the companies have just completed an electronic commerce payment using Sygnum Bank’s stablecoin known as Digital Swiss Franc (DCHF). As officially announced, the e-commerce transaction was enabled by Denmark-based crypto payment processor Coinify. Launched in March 2020, Sygnum’s DCHF stablecoin is pegged one-to-one to with the Swiss franc, and intends to eliminate the need for card systems, reduce settlement costs and fraud, as well as provide instant transactions. As previously reported, Sygnum …

Cryptocurrency derivatives exchange Bybit has added support for the Japanese yen and South Korean won in a bid to expand its roots in Asian markets. In an announcement on Aug. 26, Bybit said the addition of these two new fiat currency payment options takes the total number of supported fiat currencies to 43. Bybit made a debut with fiat payments in June, allowing traders to buy Bitcoin (BTC) and Ether (ETH) using 20 different fiat currencies, Bybit CEO Ben Zhou told Cointelegraph. “With the latest update we now offer conversion to BTC, ETH, and USDT from 43 fiat currencies,” he …