5/20/2021 11:26:36 AM GMT | By FXStreet Insights Team
The value of Bitcoin fell sharply yesterday to just above $30,000 at one point, losing more than half since it reached an all-time high of nearly $65,000 in mid-April. What Is Happening to Bitcoin? According to economists at Deutsche Bank, this sharp drop mostly occurred for two reasons. Last week, Elon Musk tweeted that Tesla would not accept Bitcoin as a means of payment, and on Tuesday, the People’s Bank of China (PBoC) reiterated that digital tokens cannot be used as a form of payment. What’s more, as cryptocurrencies begin to seriously compete with regular currencies and fiat currencies, regulators and policymakers will crack down.
The Situation: Non-fungible tokens are an emerging digital asset class that present a unique set of commercial, regulatory, and other legal considerations. The Result:.
European Investment Bank Issues Digital Bond on Ethereum. Will Bond Tokenization Become the Norm?
This past week, the
European Investment Bank (EIB) issued a €100 million digital bond offering on the Ethereum blockchain. The EIB worked with Goldman Sachs, Santander, and Societe Generale on the issuance along with the support of the Banque of France. Notably, the payment of the issue monies from the underwriters to the EIB has been represented on the blockchain in the form of a central bank digital currency (CBDC).
The EIB states that it believes that the digitalization of capital markets may bring benefits to market participants, including a reduction of intermediaries and fixed costs, better market transparency through an increased capacity to see trading flows and identity asset owners, as well as a faster speed of settlement. Much of the interest in the issuance, or tokenization of, securities via blockchain is due to the ability to remove intrinsic friction along with aff
In Short
The Situation: Non-fungible tokens are an
emerging digital asset class that present a unique set of
commercial, regulatory, and other legal considerations.
The Result: The current U.S. regulatory and
legal framework is slowly catching up to the developing technology.
Key legal issues include how NFTs can be categorized, intellectual
property rights, anti-money laundering and sanctions implications,
cybersecurity concerns and state laws governing virtual
currencies.
Looking Ahead: As the asset class matures, U.S.
regulations and laws are catching up to the developments and
increased interest in the technology with other applicable
global regulatory regimes already in place. Investors, financial
April 27 2021
Distributed ledger technologies
(DLT) first made an appearance in 2008 aiming at the disruption of the global
financial system. Fast forward to 2021, and the global economy is faced with a
similar scenario, affected by travel restrictions and social distancing measures,
and where consumers and businesses’ habits seem to be favouring digital over
analogue as the potential of DLTs – including its crypto-assets – are
uncovered. Such social changes have not gone unnoticed.
On September 24 2020, a
proposal for the regulation of crypto-assets was published by the EU Commission
– via the Markets in Crypto-Assets Regulation (MiCA) –specifically targeting
digital representations of value or rights which may be transferred and stored