Bitcoin’s current market cap is quadruple that of the second-most-traded Ethereum. In total, there are more than 5,000 cryptocurrencies worldwide, but Bitcoin, the first blockchain-based cryptocurrency in the world, by far tops the crypto ranking of cryptocurrencies in terms of market capitalisation. Since Bitcoin launched, many new cryptocurrency companies have been created, including Litecoin (2011), Ripple (2012), Ethereum (2015), and Bitcoin Cash (2017). Since 2011, she adds, cryptocurrencies have gained momentum from investors and captured media attention, particularly after Bitcoin’s price rose dramatically in 2013. “The asset is a digital “token” with no backing or intrinsic value.” In her 10 March report, Bitcoins: Can the Tinkerbell Effect Become a Self-Fulfilling Prophecy? she explains that a cryptocurrency is a digital “asset” using peer-to-peer networking, is decentralised and widely accessible. “Cryptocurrency is a type of cryptoasset, which typically does not provide rights, but is used as a mean of exchange – for example, to enable the buying or selling of a good provided by someone other than the issuer of the cryptocurrency, or for investment purposes or for the storage of value.” 4ĭeutsche Bank Research Macro Strategist Marion Laboure also provides some useful background to Bitcoin and other privately operated cryptocurrencies (in other words those not issued by a central bank, government, economy or territory). 3Īs for what a cryptocurrency actually is, the European Banking Authority’s explanation in its January 2019 position paper remains helpful. Two years ago, when Deutsche Bank published Regulation Driving Transformation Second Edition (September 2019) 2 the white paper explained that there was no single agreed definition of crypto-assets other than the umbrella terms of cryptoassets from the Financial Conduct Authority “to define cryptographically secured digital representations of value or contractual rights that are powered by forms of distributed ledger technology (DLT) and can be sorted, transferred or traded electronically”. This article provides a snapshot of the current landscape of tokenised assets, with a closer look at Bitcoin. With Bitcoin having surged past US$1trn in market capitalisation three months ago before its most recent dip, regulators, governments and financial institutions are ensuring they are ready to manage and engage with the potential widespread adoption of digital assets and currencies, despite the current volatility and difficulties in setting a target price. Nayaib Bukele, President of El Salvador on the outcomes of making Bitcoin legal tender 1 “This will generate jobs and help provide financial inclusion” “This is not something the World Bank can support given the environmental and transparency shortcomings," its spokesperson told Reuters. However, when El Salvador’s Finance Minister Alejandro Zelaya asked the World Bank for technical assistance with the implementation of the cryptocurrency as an official method of payment, this was not forthcoming. In three months, all businesses must accept payment in the cryptocurrency unless they have technological restrictions,” explains Deutsche Bank Research’s Marion Laboure in her paper, Bitcoin: The End of the Beginning? (10 June 2021). “ use as legal tender will go into law in three months and the bitcoin-dollar exchange rate will be set by the market. “This will generate jobs and help provide financial inclusion to thousands outside the formal economy,” he pledged. If the customer has problems using it, please contact the nearest branch.When El Salvador’s 39-year-old President Nayib Bukele revealed on 5 June in a videotaped announcement that he is submitting a bill to congress for the leading crypto currency Bitcoin to become legal tender, a threshold of widespread use was crossed.
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