Cryptocurrency

The July 27 meeting aimed to strengthen the partnership between Saudi Arabia and Hong Kong and enhance their financial systems.The focus was also to agree on tokenization and payment infrastructure.SAMA and HKMA representatives discussed four key focus areas, mainly financial infrastructure development, open market operations, market connectivity, and sustainable development.They also explored supervisory technologies, such as artificial intelligence, machine learning, tokenization, and payment infrastructure. SAMA and HKMA signed a Memorandum of Understanding (MoU) to collaborate on financial innovation to facilitate joint deliberations.The agreement was signed by SAMA’s governor, Mr. Ayman Alsayari, and HKMA’s chief executive, Eddie Yue.Although the announcement covers financial trends, the press release did not specify whether the collaboration would encompass joint initiatives concerning cryptocurrencies such as Bitcoin (BTC).However, it still holds weight in crypto. This is considering HKMA’s partnership with the UAE central bank on May 30 aimed at strengthening cooperation on virtual asset regulations and developments.As reported by Bloomberg, Hong Kong plans to become a crypto hub. In late May, Christopher Hui, Hong Kong’s treasury chief said retail investors can engage in crypto trading since virtual assets are here to stay. Hong Kong is also actively involved in multiple cross-border tokenization projects, including the successful launch of a $28 million tokenized security in mid-June by BOCI, the investment bank subsidiary of the Bank of China, utilizing Ethereum. As a result, discussions of advancing Fintech naturally lead to conversations around decentralized finance and virtual currencies. Although Hong Kong is open to supporting crypto-assets, the government of Saudi Arabia has made it clear that they do not wish to promote the use of cryptocurrencies. Their most recent statement was issued in 2019, warning that Bitcoin does not hold official recognition by legal entities within the country. As a result, the extent to which these measures will affect the crypto community remains to be seen.This article was originally published on Crypto.news More

The proposal introduced the Enhanced Dai Savings Rate (EDSR), a mechanism that temporarily increases the effective Dai Savings Rate (DSR) available to users. The enhanced mechanism will be determined by the DSR utilization and will be reduced over time as the DSR utilization goes up. Continue Reading on Coin Telegraph More

Optimism fell behind Arbitrum based on volume in January, as season one of its “quest” feature ended. However, it recovered the top spot on July 25 as Worldcoin launched.Continue Reading on Coin Telegraph More

The bill, co-written by Republican members of the Agriculture Committee and Financial Services Committee, seeks to create a comprehensive regulatory framework for digital assets. It was debated in the Financial Services Committee along with several other bills a day earlier. Continue Reading on Coin Telegraph More

Cryptocurrency enthusiasts often monitor the performance of technology stocks as it significantly influences ethereum’s value more than bitcoin’s.According to Erik Norland, a senior economist and executive director at CME Group, ETH is likely to rise against BTC, on days when tech stocks surge. Source: CME GroupThe different effects on Ethereum and bitcoin are due to their distribution and utility.The analyst highlighted the practical use of Ethereum’s smart contract network, contrasting bitcoin’s main function as a highly fluctuating store of value and defense against fiat depreciation. While both coins are recognized for their volatile prices, their exchange rate appears fairly steady, with about 30% daily volatility over the past year, compared to bitcoin’s 42% and ethereum’s 59%.He further observed that Ethereum typically climbs even higher, and when Bitcoin descends, Ethereum usually drops more severely. However, the correlation between the two cryptocurrencies has been tight over the past year at 0.85.The report suggests that Ethereum is more vulnerable to fluctuations in the US dollar, and the ETHBTC rate is more affected by changes in bitcoin’s supply than ether’s supply.The analyst picks out that a stronger USD negatively impacts ETH more than BTC.The correlation between ETHBTC and interest rates, gold, and crude oil futures is minimal. Norland observed that Ethereum’s supply tends to increase after its price rises, indicating that price changes drive supply rather than the other way around.Lastly, if BTC price surges ahead of its next halving in April 2024, as it has trends in the past, this could further boost Ethereum’s relative price.According to the report, ETHBTC might react more strongly to changes in BTC’s supply than to changes in ETH’s supply. This is because changes in BTC’s economics greatly influence the ETHBTC exchange rate. The supply of BTC, which is perfectly inelastic and predetermined by its algorithm, along with its halving events, has resulted in significant price run-ups and subsequent bear markets.Additionally, the number of daily transactions on the BTC blockchain, a potential proxy for BTC demand, might also influence ETH prices.The Ethereum supply has not been a driving factor behind its price behavior during its proof-of-work (PoW) era. Instead, the ETH supply increased when prices were higher relative to BTC, and vice versa.This article was originally published on Crypto.news More

The document explores the risks stablecoins pose to the financial system, noting that current legislative proposals in the United States could incorporate crypto payment instruments into existing banking and securities frameworks. Malone argues that the risks posed by stablecoins are lower than bank deposits and different from money market funds. Continue Reading on Coin Telegraph More

On July 26, the majority of U.S. lawmakers voted in favor of the Financial Innovation and Technology for the 21st Century Act, as well as the Blockchain Regulatory Certainty Act.Continue Reading on Coin Telegraph More

On July 26, lawmakers voted in favor of FIT21 and the Blockchain Regulatory Certainty Act. The bills are expected to deliver clarity for crypto firms, including setting the differences in jurisdiction between securities and commodities regulators in the country. Continue Reading on Coin Telegraph More