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Bitcoin price crash likely wiped millions off Tesla’s balance sheet
Fund manager Nickel Asset Management said Elon Musk s decision to stop the electric car maker from accepting Bitcoin payments due to environmental concerns likely cost the firm US$370mln
This week’s Bitcoin price crash, widely attributed to Tesla Inc (NASDAQ:TSLA) boss Elon Musk’s decision to stop the electric car maker from accepting the cryptocurrency as a form of payment amid concerns over its environmental impact, has likely come back to bite the billionaire as new analysis showed the decline could have wiped as much as US$370mln off the company’s balance sheet.
CBDCs are essentially electronic cash.
Like traditional cash, they would give holders a direct claim on the central bank and allow businesses and individuals to make electronic payments and transfers.
Access to central bank money beyond physical cash has so far been restricted to financial institutions like banks.
Haven t we already been using digital cash?
Using a debit or credit card, or payment app, to purchase coffees or make payments in shops is a form of digital money.
But this is created by commercial banks, based on central bank money credited electronically to their accounts.
The difference is this form of digital cash is not as risk-free as a CBDC.
HODL your horses, cryptos face possible hurdles ahead, experts say Today 04:40 am JST Today | 06:30 am JST LONDON
Evolving rules, environmental concerns and competition from central banks threaten to undermine many of the world s fast-growing crypto assets, crypto and macro experts said, while creating opportunities for those able to adapt.
Europe and the United States are both working on regulating digital assets and their providers - moves welcomed by investors, who hope the new ground rules will encourage institutional investors to plunge in.
Anatoly Crachilov, co-founder and CEO of Nickel Digital Asset Management, which manages assets worth $200 million, told the Reuters Global Markets Forum that regulatory uncertainty was a drag on the development of the crypto space.