Circle co-founder Jeremy Allaire believes that crypto valuations will increase, and BTC will be worth “a great deal more” than it is now.
Jeremy Allaire, co-founder of crypto finance company Circle, told CNBC in an interview Friday, Dec. 14, that Bitcoin (BTC) will be worth “a great deal more” than it is now.
When asked about the Bitcoin price in three years, Allaire told Squawk Box host Andrew Ross Sorkin that he does not make “significant price predictions,” while adding, “I think it is certainly going to be worth a great deal more that it is today.”
Allaire also stated that while Bitcoin is attractive as a non-state store of value, a slew of other tokens will enter the space, and the bases of their valuations will be diverse. He further explained:
“I do not think it’s a winner-take-all [situation]. We have the phrase ‘the tokenization of everything,’ and we think cryptographic tokens are going to represent every form of financial asset in the world. There will be millions of them in years.”
Allaire claimed that the crypto sphere needs clearer regulation, while noting that the United States already has “more regulatory clarity than almost any other market in the world.”
The Circle co-founder cited the need for clarification of whether crypto assets are currencies or commodities, and which crypto assets should qualify as securities. Furthermore, he believes the industry needs to define whether it needs rules for secondary trading of digital securities or a “kind of commodity spot market supervision for the crypto space.”
Earlier this week, major crypto bull and co-founder of Fundstrat Global Advisors Tom Leeclaimed that the fair value of Bitcoin is “significantly” higher than its current price and should be somewhere between $13,800 and $14,800. Moreover, he still thinks that the fair value of Bitcoin could reach $150,000 after it has been more widely adopted.
As for crypto adoption, a commissioner of the U.S. Securities and Exchange Commission (SEC) Hester Peirce, dubbed “Crypto Mom” by the community for her pro-crypto stance, thinks that the process might take a long time. She urged the public not to ‘hold its breath,’ waiting for a Bitcoin ETF, as it could be “20 years away from now or it could be tomorrow.”
The Swiss Bundesrat has called for specific adjustments of existing financial laws in relation to the blockchain industry.
The Swiss Federal Council (Bundesrat) has said that existing financiallaw in the country suits the blockchain industry, but needs specific adjustments. The government suggested several amendments in an official statement by the Federal Department of Finance (FDF) published on Friday, Dec. 14.
In a meeting on Dec. 7, the Bundesrat adopted a report on the legal framework for blockchain and distributed ledger technology (DLT) in the financial sector. The report analyzes relevant framework provisions, outlines the need for measures and proposes concrete steps for developing the necessary legal conditions in the blockchain sphere.
Specifically, the report recommend the development of a new and flexible authorization category for blockchain-based financial market infrastructures. It also advocates for better legal clarity for rights holders of digital registers, and ensuring that decentralized trading platforms are subject to the Anti-Money Laundering (AML) Act.
The Federal Council also mentioned the results of a cross-departmental working group on the money laundering and terrorist financing risks of cryptocurrencies. The recent report is based on the work of the blockchain/initial coin offering (ICO) working group by the Federal Department of Finance that was reportedly set up in January 2018.
Following the report adoption, the Bundesrat has instructed the FDF and the Federal Department of Justice and Police to prepare an adjustment plan for the first quarter of 2019. The Bundesrat has also commissioned the FTF to research whether money laundering law should be reconsidered in accordance with certain types of crowdfunding.
The European Parliament has called for an increase in the adoption of blockchain technology in trade in a new resolution.
The European Parliament has called for measures to increase the adoption of blockchain technology in trade and administration with a provisional resolution published on Dec. 13.
The resolution, dubbed “Blockchain: a forward-looking trade policy,” generally considers blockchain “as a private, permissioned distributed ledger technology (DLT)” but also admits that “various case studies and industries will derive different utility from a mixture of private/public, permissioned/permissionless blockchains.”
The resolution notes that Free Trade Agreements (FTAs) in the EU are underutilized — only 67 percent of EU exporters and 90 percent of EU importers make use of the preferential tariffs — and that blockchain could help improve these trade policies.
The authors of the resolution state that “exporters could upload all their documents to a public authority application underpinned by blockchain, and demonstrate their compliance with preferential treatment granted by an FTA.”
The parliament also states that blockchain technology has potential in “providing trust in the provenance” of products and assisting and enabling customs authorities to obtain the required information for customs declarations.
Overall, the resolution proposes that DLT technology is as a way to “increase the efficiency, speed and volume of global trade by limiting the costs associated with international transactions.”
The document concludes by calling on the European Commission to “follow developments in the area of blockchain” and develop “a set of guiding principles” for its applications. It also urges the commission to set up an advisory group on the technology and conduct policy investigations into the technology. The European Parliament states:
“The EU has an opportunity to become a leading actor in the field of blockchain and international trade, and that it should be an influential actor in shaping its development globally, together with international partners;”
Still, the president of the European Central Bank (ECB), Mario Draghi, reportedly said in September that there are no plans to issue its own digital currency. Also, in mid-November, a member of ECB’s Executive board called Bitcoin (BTC) the “evil spawn of the  financial crisis.”
While total market cap threatens to break below $100 billion, new research shows that the amount of crypto users doubled by Q3 2018. Does this signal a recovery in the future?
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
A lot of crypto investors have lost a staggering amount of money this year. The total market capitalization of all cryptocurrencies is threatening to break down of the $100 billion mark. Unlike the traditional assets, there is no set standard to arrive at a fair value for cryptocurrencies. Various experts have proposed many different methods to determine the valuation.
One of the most popular Bitcoin advocates and a co-founder of Fundstrat Global Advisors, Thomas Lee, believes that the fair value of Bitcoin is between $13,800 and $14,800. He expects the price to rebound if the asset class is widely embraced and its user adoption increases.
After this year’s bear market, one would expect the hitherto existing owners to abandon the asset class. However, a study by the Cambridge Centre for Alternative Finance shows that the number of ID-verified cryptocurrency users has doubled in the first three quarters of this year — from 18 million to 35 million. Does this signal a likely recovery in the near future?
Let’s look at the charts and try to forecast whether the price will fall or rise from the current levels.
A weak bounce on a retest of either a low or a critical support is a bearish indication. It implies that the price has still not reached a level that is attractive to buyers. Today, Bitcoin easily slipped through the yearly low of $3,329.05 and made a new one of $3,307.02.
If the BTC/USD pair bounces off the current support and breaks out of the 20-day EMA, it will be a positive sign. Such a move can result in a pullback to $5,000.
However, if the bounce from the current level turns out weak, a break down of $3,307.02 is probable. The next support on the downside is $3,000. Though $3,000–$3,500 is a strong support zone, we are yet to see any signs of buying. If $3,000 breaks, it might invite further selling, sinking the digital currency further to $2,416.52.
The only bullish indication is the positive divergence on the RSI, but if the price doesn’t move up, it can turn into a bear trap.
Ripple has been holding the support of $0.28600 for the past seven days, but it has not been able to achieve a meaningful bounce.
Failure to rebound has increased the probability of a breakdown of the support. Both moving averages are falling, and the RSI is in the oversold zone. This suggests that the sellers have an upper hand.
The next level to watch on the downside is $0.24508. If this support also fails to hold, the downtrend can extend to $0.15. The first sign of a likely change in trend will be a break out of the 20-day EMA. Above this level, the XRP/USD pair might see some buying and can reach $0.4.
Traders who are long can hold their positions. We shall take a call on whether to keep holding or to sell in our next analysis.
Ethereum has been clinging to the bottom of the $83–$102.5 range. This shows a lack of buying even at the current levels. The failure to move up in the past three days is likely to attract sellers.
A breakdown and close (UTC time frame) below $83 will resume the downtrend and can plunge the ETH/USD pair to the next support of $66.
The first sign of an end to the incessant selling will be a sustained rally above the 20-day EMA. Until then, every pullback will be sold into.
After a two-day pullback, Stellar has resumed its downtrend and has made a new yearly low. The down sloping moving averages and the RSI in the oversold zone confirm that the path of least resistance is to the downside.
The next support on the downside is at $0.08. However, in a strong downtrend it is difficult to call a bottom as the price continues to slice through support levels with ease.
The first sign of a trend reversal will be when the XLM/USD pair sustains above the 20-day EMA. In such a case the pullback can extend to $0.184. Traders should stay away from long positions until the price confirms a bottom.
Though EOS continues to be in a downtrend, it has been trading close to the overhead resistance of $2.1733 for the past five days. This shows some buying in the pair. However, if the bulls don’t scale the resistance quickly, it will invite selling.
A break out of $2.1733 can reach the 20-day EMA, which is likely to act as a stiff resistance. The recovery will gain traction if the bulls sustain above the 20-day EMA.
On the downside, a break down of the Dec. 7 low of $1.55 will resume the downtrend that can reach $1.2. The traders should wait for the EOS/USD pair to signal a trend reversal before attempting a trade in it.
After trading in a tight range for five days, Bitcoin Cash resumed its downtrend and made a new low on Dec. 18.
Both moving averages are trending down and the RSI is deep in the oversold territory, confirming a downtrend. There has not been a meaningful pullback since the downtrend gained momentum on Nov. 19. This suggests that the bears are in complete control. The BCH/USD pair can now correct to $72.39.
The traders should wait for the decline to end and a trend reversal to be signaled before establishing a long position in the pair.
Litecoin has slipped back to the low of $23.1. Though the bulls are defending the support level, if they don’t manage to push the price above $29.349 within the next few days, a new low is likely. The next lower support is at $20.
The downtrending moving averages and the RSI in the oversold zone show that the bears are in complete control. A small ray of hope for a bottom formation at the current levels is the positive divergence on the RSI. However, for that, the LTC/USD pair will have to sustain above the 20-day EMA. Until then, we suggest traders remain on the sidelines.
After trading inside the range since Nov. 26, Bitcoin SV broke below the support of $80.352 on Dec. 13. Unless the bulls quickly reverse and scale the previous support-turned-resistance of $80.352, the sellers are likely to pounce on it. The next lower target is a retest of the Nov. 23 low of $38.528, with a likely minor support at $57.
The first sign of strength will be when the BSV/USD pair climbs back into the range. Though the digital currency is currently trading way above its lows, it has a short trading history. Hence, we suggest traders wait for a new buy setup to form before buying it.
TRON continues to trade inside the symmetrical triangle. The bulls are defending the support of the triangle, whereas the bears are not allowing a break out of it.
The next leg of the move will be decided after a break out or break down from the triangle. A breakout can result in a rally to $0.0183, which is likely to act as a stiff resistance.
On the other hand, if the TRX/USD pair breaks down of the triangle, the downtrend will resume. Though the pattern target of the breakdown is $0.00554133, we expect some support at $0.00844479. The traders should wait for a breakout and close above the triangle to initiate any long positions.
The failure of Cardano to climb back into the previous range is likely to attract selling. The bears will now attempt to break down of the support at $0.027237 and plunge towards the next support of $0.025954.
On the other hand, if the ADA/USD pair bounces off the Dec. 7 low, it might remain range bound for a few more days. The first sign of buying will be when the price sustains above $0.035. We can expect the recovery to gain traction if the bulls scale the 20-day EMA and sustain it for three days. Until then, the path of least resistance is to the downside.
The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.
Atletico Mineiro, a Brazilian premier league soccer club, is launching its own fan token “GaloCoin” based on Ethereum blockchain.
Brazilian premier league soccer club Atletico Mineiro has launched a fan token dubbed “GaloCoin,” Cointelegraph Brazil reports Friday, Dec. 14.
The GaloCoin is named after Atletico’s mascot, a rooster (“galo” in Portuguese). It is based on Footcoin — a platform that allows to launch utility tokens on the Ethereumblockchain. The GaloCoin is tied to the national fiat currency exchange rate and is equal to one Brazilian real.
Atletico’s token will allow fans to purchase game tickets, official apparel, as well as participate in discount programs. To use the club’s cryptocurrency token, one has to buy at least 50 GaloCoins (equivalent to approximately $13).
Utility tokens are steadily increasing in popularity among soccer teams. In September, one of the best-performing French clubs Paris Saint-Germain (PSG) partnered with the blockchain platform Socios.com to launch its own Fan Token Offering (FTO).
One of Italy’s most famous clubs, Juventus soon followed PSG’s example and announced “Juventus Official Fan Token,” also in partnership with Socios.com. The coin is set to launch in early 2019.
Moreover, seven United Kingdom premier league clubs — Tottenham Hotspur, Brighton & Hove Albion, Crystal Palace, Cardiff City, Leicester City Football Club, Newcastle United and Southampton — have partnered with local crypto trading platform eToro to integrate blockchain and cryptocurrencies in soccer stadiums.
As Cointelegraph reported in August, the Union of European Football Associations (UEFA) has implemented a blockchain-based ticketing system. The association has already conducted a successful trial during the 2018 UEFA Europa League final in Lyon this May, where 50 percent of the tickets were sold using a blockchain-based application.
According to Reuters “the central bank said it had issued for consultation draft rules for crypto asset platform operators, providing regulations for the licensing and supervision of crypto asset services.”
Bahrain’s central bank has reportedly stated that the proposed regulations include “measures to safeguard customer interests, technology standards, and cybersecurity risk management.”
Bahrain first announced its positive stance toward blockchain over a year ago. At the time, Khalid Al Rumaihi, the country’s chief executive of the Economic Development Board called the technology a “huge opportunity for Bahrain.”
As Cointelegraph reported this November, Bahrain’s Institute of Banking and Finance launched its own “Blockchain Academy.” The newly established academy will provide courses in three competency areas of blockchain technology: development, implementation and strategy.
Abdulhussain Mirza, Bahrain’s minister of electricity and water affairs demonstrated a positive outlook on the technology in September, saying that “Blockchain’s ability to protect user’s data is a true mark of progress.”
As Cointelegraph reported earlier this week, the Dutch central bank also proposed licensing cryptocurrency service providers.
CULedger, a U.S. credit union service organization-owned blockchain consortium, has joined enterprise software firm R3’s global blockchain ecosystem.
CULedger, a credit union service organization (CUSO)-owned blockchain consortium, has joined enterprise software firm R3’s global blockchain ecosystem. The partnership was officially revealed in a press release published Dec. 13.
Based in Denver, Colorado, CULedger reportedly delivers blockchain applications to credit unions and their members, using the technology to mitigate cybersecurity and fraud risks, as well as streamline administrative and operational processes to save time and costs. The firm also provides a specific blockchain-based identification solution for credit union members.
As the press release notes, the consortium joins the R3 global network, which has to date reportedly gathered over 200 financial services companies, tech firms, central banks, regulators, and trade associations to collaborate on or use its enterprise-grade blockchain platform “Corda.”
Corda has been designed to work within the financial services industry and uses a permissioned distributed ledger technology (DLT) system to restrict data access to the required participants only. This July, R3 released a commercial version of Corda, dubbed “Corda Enterprise,” aimed specifically at businesses.
The Corda platform has seen a wave of positive adoption news in recent months.
Just in December, R3’s Corda-based Euro Debt Solution was used by a German–French–Dutch triad of banks to successfully complete a live commercial paper transaction; major Japanese financial services company SBI Holdings announced its partnership with R3 to boost use of Corda in Asia; and 26 French companies and five major bankscompleted a know your customer (KYC) test using Corda.
Spain’s second largest bank, Banco Bilbao Vizcaya Argentaria, has closed a €150 million loan using blockchain technology.
Spain’s second largest bank, Banco Bilbao Vizcaya Argentaria (BBVA), has closed a €150 million loan using blockchain technology with Porsche Holding, the largest car distributor in Europe. The news was reported by financial news site Finextra Dec. 14.
The transaction is reportedly BBVA’s first blockchain-based loans deal with a non-Spanish borrower. The bank has to date arranged several blockchain-based loans with Spanish corporate customers, including a syndicated loan of $150 million for partly state-owned Spanish national electrical grid operator Red Eléctrica de España (REE) in November, and a €100 million long-term bilateral corporate loan with Spanish engineering firm ACS.
Finextra reports that the Porsche Holdings deal uses the “same mix of private and public blockchain technology” BBVA used in its prior blockchain loan transactions.
As reported, the REE loan had been conducted on a private Hyperledger-based network with participation from three funding banks (BBVA, BNP Paribas and MUFG), REE and two legal advisory firms; the unique document identifier for the signed contract was recorded on the Ethereum (ETH) public blockchain.
In reference to the Porsche Holdings loan, Frank Hoefnagels, head of BBVA CIB in Germany, emphasized that for acquisition finance transactions, for which speed is of the essence, blockchain is of particular relevance:
“This transaction is all about putting blockchain technology into meaningful practice in the interactions with our clients. Our aim is to improve clients’ experience by simplifying processes and enhancing the speed of execution”.
In April, BBVA claimed to have become the “first” global bank to conduct an entire loan process using blockchain, again in a part-private part-public configuration. Recognition of blockchain’s efficacy for lending continues to widen: this October, United Kingdom-based bank Natwest announced it would be integrating a new blockchain platform based on R3Corda technology for use in the syndicated loans market.
For its part, Porsche’s manufacturing arm began testing blockchain apps for its vehicles this February, claiming to be “the first automobile manufacturer to implement and successfully test blockchain in a car.”
After months of monitoring and observing the potential of blockchain, EU is finally making a turn into it
After months of monitoring and observing the “promising and challenging” potential of distributed ledger technology (DLT), the European Union (EU) is finally making a turn into the blockchain industry.
How it all started
Back in February 2018, the European Commission (EC) launched the EU Blockchain Observatory and Forum, aimed to support European cross-border engagement with the technology and its multiple stakeholders and to unite the economy around blockchain.
The second major step was taken in April when 22 countries — 21 EU member states and Norway — signed a Declaration that created a European Blockchain Partnership (EBP). During 2018, five more European countries joined the EBP: Greece and Romania in May, Denmark and Cyprus in June, and Italy — the last member to join — in September. The partnership’s main focus is on cybersecurity, privacy, energy efficiency and interoperability, all in full compliance with EU law.
As Mariya Gabriel, commissioner for the Digital Economy and Society, underlined welcoming the established of the EBP:
Blockchain is a great opportunity for Europe and Member States to rethink their information systems, to promote user trust and the protection of personal data, to help create new business opportunities and to establish new areas of leadership, benefiting citizens, public services and companies (sic)
Back in the fall, ResearchAndMarkets.com published a new report dubbed “EU5 Blockchain Technology Market (2018-2023).“ In the report, the EU is expected to increase its investment into blockchain- and DLT-related projects from $94 million in 2018 to $386 million by 2020. The positive view within the document toward the blockchain industry in Europe is based on several crucial facts: The EC is liberalizing the industry’s regulation and it creates a new task force entrusted with blockchain expertise.
Another move toward blockchain was made in October this year when the European Parliament formed a resolution titled “Distributed ledger technologies and blockchains: building trust with disintermediation.” The resolution states that DLT “could potentially affect all sectors of the economy,” but it focuses on several important spheres: finances, health care, transport, education, copyrights, public governance, data protection, and some others.
The agreement shows that the Parliament has set the plans for the EC to ensure that its proposed policies would be realized, taking into account benefits of the DLT implementations and warning about some of the related risks. This resolution is a crucial document, as it means that Parliament articulated several main features.
Health care sector
The potential of DLT implementation in the health care and medical sector was among the first initiatives discussed by the European Union. My Health My Data (MHMD), the EU-funded project, has been aimed “to use blockchain technology to enable medical data to be stored and transmitted safely and effectively.” The resolution signed in October highlighted that blockchain would “improve data efficiency and the reporting of clinical trials in the health sector, allowing digital data exchange across public and private institutions under the control of the citizens/patients.”
For the EU, the main focus of the implementation of blockchain technology is on the protection of personal data (followed by the General Data Protection Regulation, known as GDPR), which gives “people more control over how they store, manage and use personal data generated online,” says DECODE, another blockchain project funded by the EU. According to the document, blockchain “should protect the privacy of sensitive health data” and allow “citizens to control their health data and benefit from transparency thereon, and to choose which data to share, also with regard to their use by insurance companies and the wider health care ecosystem.”
It also underlines the importance of improving the health care sector with DLT “through electronic health data interoperability, identity verification and a better distribution of medication,” as well as improving the management of health care systems.
There are several major advantages of DLT implementation for the financial sector within Europe. One of them is, definitely, the significance of the blockchain technology in financial intermediation by “improving transparency and reducing transaction costs and hidden costs by better managing data and streamlining processes.”
The EC and local regulatory authorities are to monitor trends of DLT implementation in the finance industry and are encouraged to do “the research and experimentation that major financial institutions have undertaken in the exploration of the capabilities of DLT.”
The European Parliament also expressed its concern about the “volatility and uncertainty” of cryptocurrencies. It requires the EC and the European Central Bank (ECB) “to provide feedback on the sources of volatility of cryptocurrencies, identify dangers for the public, and explore the possibilities of incorporating cryptocurrencies in the European payment system.”
There are certain risks related to initial coin offerings (ICOs), and the resolution stresses the “lack of clarity with regard to the legal framework applicable to ICOs,” that could negatively affect the investment and funding potential of ICOs. The Parliament asks the EC and national regulatory authorities “to identify criteria that enhance investor protection and articulate disclosure requirements and obligations for the initiators of ICOs” to avoid risks and dangers related to ICO projects.
The certainty and clarity of the crowdfunding in the crypto space could increase investor and consumer protection and reduce “the risks stemming from asymmetric information, fraudulent behaviour, illegal activities such as money laundering and tax evasion.”
How bright is the blockchain future in Europe?
Meanwhile, the Distributed ledger technologies and blockchains resolution has more political significance than legal, as the EC is not required to do anything in response to these requests.
Last week, four major blockchain companies — including Ripple, the NEM Foundation, Emurgo (based on the Cardano blockchain) and “smart ledger” development firm Fetch.AI — formed “Blockchain for Europe” Association. It is aimed to help the EU “shape the global agenda” on blockchain by providing education on the technology’s potential and by developing “smart regulation” of the blockchain industry.
The EC does not appear to be fully involved in promoting a global regulatory framework for the blockchain and cryptocurrency ecosystems. The general idea is to focus on promoting the regulations of the technology on national levels.
A vivid example of it is another declaration signed on December 4 between seven southern European countries — including France, Italy, Cyprus, Portugal, Spain, and Greece. It was reportedly initiated by Malta, commonly known as the “Blockchain Island” of Europe. This declaration calls the EU for help to “promote DLT that is most associated with cryptocurrencies but is increasingly being used by governments to offer services to citizens.”
Switzerland is another European country, but not a member state, that has friendly regulation on the blockchain and crypto industries.
Europe has the ambitions to become “the global leader in the field of DLT,” which can be seen from the number of initiatives taken place over the 2018 year. Still, it might want to consider bringing more legal power to them rather than just “raising the awareness.”
Major crypto exchange Binance has added Circle’s USD-pegged stablecoin USD Coin as a quote asset in its combined Stablecoin Market.
Crypto exchange Binance has added Circle’sUSD-pegged stablecoin USD Coin as a quote asset for several new trading pairs in its combined Stablecoin Market (USDⓈ). The exchange has announced this in an official post published Dec. 14.
This November, Binance, currently the world’s largest crypto exchange by daily trade volume, had rebranded its Tether (USDT) Market as the combined USDⓈ market to allow for the support of more trading pairs with different stablecoins offered as a base pair.
Today’s latest development will add six new trading pairs with USDC as a quote asset: native exchange token Binance Coin (BNB/USDC), Bitcoin (BTC/USDC), Ethereum (ETH/USDC), Ripple (XRP/USDC), EOS (EOS/USDC) and Stellar (XLM/USDC). In addition, Binance is also adding a USDC trading pair with fellow stablecoin Tether.
According to the announcement, the exchange will replace and delist its former USDC/BNB and USDC/BTC trading pairs, which had just been launched mid-November.
Just ahead of Binance, major United States’ cryptocurrency exchange Coinbase had made USDC the first stablecoin available for trade on its platform in October.
With the proliferating issuance of fiat-backed stablecoins, major exchanges have stepped in to list the new coins: both OKEx and Huobi recently opted to list four USD stablecoins at once.
Earlier this week, Binance launched a collection of educational content comprising almost 500 articles in order to provide “unbiased” information about crypto and blockchain, as part of its Binance Academy initiative, which launched this summer.
According to CoinMarketCap, the exchange has seen $464,404,519 in trades over the 24 hours before press time.