5 Countries that Use Crypto and Bitcoin the Most

There’s no denying that our world has gotten rapidly more digital. From how we connect with friends via social media to controlling our appliances with mobile apps to, you guessed it, the way we handle our money. The world seems to be sprinting to a digital horizon, and leading this charge is bitcoin, the flagship […] There’s no denying that our world has gotten rapidly more digital. From how we connect with friends via social media to controlling our appliances with mobile apps to, you guessed it, the way we handle our money. The world seems to be sprinting to a digital horizon, and leading this charge is bitcoin, the flagship of digital currency. A Brief History of Bitcoin In 2008, a computer scientist using the pseudonym Satoshi Nakamoto published a paper outlining the workings of a peer-to-peer electronic cash system. This was the beginning of Bitcoin, a cryptocurrency that, despite skepticism and criticism, has already left an indelible mark on the world’s financial panorama. Bitcoin is decentralized and stored in digital wallets, making use of blockchain technology to ensure secure and transparent transactions. Its revolutionary features have drawn people from walk of life into the world of digital currency. Bitcoin’s Impact on the U.S Economy The United States stands unique in its approach to Bitcoin. It recognizes cryptocurrency as a lawful way of payment and creates an environment where companies and individuals can mine, trade, and utilise the virtual currency. Challenges and Traditional Markets: An Earliest Test Bitcoin’s journey into the economy began roughly. The highly volatile nature of cryptocurrencies and lack of substantial regulation posed significant challenges, enough for traditional financial markets to remain skeptical. However, this so-called “digital gold” started attracting the attention of adventurous investors and early tech adopters, and slowly, its value began to rise. With digital enterprises and businesses beginning to recognize Bitcoin as a legitimate form of payment, the cryptocurrency started worming its way into the mainstream finance sector. Despite its hurdles, Bitcoin has proven itself to be resilient. The Rise of Crypto Economy The advent of Bitcoin ushered in the increasingly vibrant crypto economy, a digital financial realm where cryptocurrencies like Bitcoin play the role of traditional fiat currencies such as the US dollar. Just as it happened in traditional economies, businesses started recognizing Bitcoin as a form of payment alongside conventional money. Neutralizing Online Services Websites from various sectors, from retailers to online services, started to incorporate Bitcoin into their payment systems. To further illustrate this point, one such online service is Bitcoin Casino. The platform provides an insight into how Bitcoin is being utilized as a new form of currency, representing a great step forward in the evolution of digital money. The U.S Regulatory Environment The United States has taken a proactive approach in regulating Bitcoin and other cryptocurrencies, recognizing them as legal assets. Federal agencies like the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have begun outlining guidelines and regulations surrounding digital currency. Currency, Property, or Commodity? The U.S Internal Revenue Service (IRS) considers Bitcoin as property for federal tax purposes, highlighting the unique status of the cryptocurrency within U.S law. This stance deviates from the views of some countries which identify Bitcoin as a form of currency or commodity. The Financial Industry’s Reception to Bitcoin Imagine the days when gold was the dominant form of currency; it’s understood worth backed by its indisputable value. Despite the initial skepticism towards Bitcoin, its growing influence in the financial sector is undeniable. Bitcoin’s siege on Wall Street has seen the financial hub begin to adapt to the revolution BTC has triggered. A Financial Revolution or a Passing Fad? For a digital invention that started as a niche interest among tech enthusiasts and futurists, Bitcoin is pushing against the bulwarks of the traditional financial system. Traders and investors are beginning to recognize its potential as a lucrative asset, with major U.S banking institutions allowing Bitcoin trading and futures contracts linked to Bitcoin prices. Bitcoin Prices and Volatility As with any investment, there are risks. Bitcoin’s infamous volatility is a primary concern. Investors have been subjected to exhilarating highs and terrifying drops as the value of Bitcoin has demonstrated drastically unstable behavior, prompting fears of a crypto bubble. The Future of Bitcoin in the U.S Despite the hurdles and volatility, the trajectory of Bitcoin in the U.S appears to still be on the upswing. Its influence in the financial sector continues to grow, and as the U.S regulatory environment gets increasingly clear, Bitcoin will continue to wield significant power in the country’s finance sector and beyond. Embracing the Digital Age Bitcoin and other cryptocurrencies represent the vanguard of the incoming digital age. As they continue to impact economies, traditional finance sectors and online platforms alike are jumping on board. The U.S seems poised to ride this wave right to the shores of the future. Conclusion The impact of Bitcoin on the U.S economy and its subsequent reshaping of various sectors signify an era of digital revolution in the financial realm. Although it’s still in its formative years and has many hurdles left to cross, the influence of this digital currency is undeniable, proving it to be a revolution in its own right......»»

In this article, we will be talking about the 20 countries that use crypto and Bitcoin the most. We will also discuss the recent trends in the crypto market along with the major players in the industry. If you wish to skip our detailed analysis, you can move directly to the 5 Countries that Use […] In this article, we will be talking about the 20 countries that use crypto and Bitcoin the most. We will also discuss the recent trends in the crypto market along with the major players in the industry. If you wish to skip our detailed analysis, you can move directly to the 5 Countries that Use Crypto and Bitcoin the Most. Will Bitcoin Grow to an All-Time High by 2024? On September 7, Forbes analyzed what the future holds for Bitcoin. According to the report, Bitcoin has witnessed significant price improvements in 2023. After a rough period for the crypto market in 2022, Bitcoin reported a strong comeback in 2023. In July, Bitcoin climbed to $31,000. While the price for one Bitcoin slightly deteriorated to $25,956 on September 13, experts expect a recovery soon. According to the report, Bitcoin seems to be under inflationary pressure. Inflationary pressures forced the Fed to raise interest rates. Such has contributed to a major resistance in the trade of Bitcoin at the price of $28,900. The report informs readers that, as per the Indian government, all transactions of digital assets would be regulated by the Prevention of Money Laundering Act (PMLA). While crypto laws are necessary, stringent regulations may limit the growth of the cryptocurrency market. Despite the turmoil surrounding the current status of Bitcoin, the reports hint at 2024 being a game-changer for the cryptocurrency. The Bitcoin halving event is expected in 2024, which brings the hope of a boost in the price of Bitcoin. The halving event takes place every four years. During the halving event, the price reward to Bitcoin miners is cut by 50%. Such helps contract the supply and is a positive sign for Bitcoin’s price. Uncertainty and volatility surrounding Bitcoin have been a common trend this year. Stringent regulations in countries and a worsening global macroeconomic condition limit the ability of experts to predict the future of Bitcoin. Nevertheless, experts hold high expectations for the coming year. Take a look at the most valuable currencies in the world. What Do the New Crypto Regulations Mean? The United States is home to one of the most crypto owners. However, this does not exclude the American market from the wrath of uncertainty and volatility of currencies. On August 25, Reuters reported new crypto regulations introduced by the Biden administration. According to the new tax reporting rules, crypto brokers must report sales and exchanges of all digital assets to the Internal Revenue Service (IRS). The new tax reporting regulations were primarily aimed at countering tax evasion. On the bright side, the new tax regulation makes processing easier for regular crypto taxpayers. The regulation aligns with the administration’s efforts to bring in more money from taxes. With the new bill in action, the estimated tax revenue for the next decade is almost $28 billion. To shed light on the importance of tax regulations for the future of the economy, the treasury reported: “This is part of a broader effort at Treasury to close the tax gap, address the tax evasion risks posed by digital assets, and help ensure that everyone plays by the same set of rules.” While regulation is a prerequisite for the mass acceptance of crypto or Bitcoin as a mainstream payment method, stringent laws may limit user’s willingness to invest in cryptocurrencies. The impact of the new tax regulations can only be judged in the coming months. Are Large Corporations Withdrawing Interest in Crypto? Are large companies with significant stakes in the crypto market distancing themselves from the crypto industry? Is this because of stringent laws or the falling prices of Bitcoin? On August 25, CNBC reported that Mastercard Incorporated (NYSE:MA) recently ended its partnership with Binance. Mastercard Incorporated (NYSE:MA) will not offer branded Binance cards in Latin America and the Middle East anymore. Users used these cards to purchase commodities directly with their crypto assets. Visa Inc. (NYSE:V) also ended its partnership with Binance in July. Such indicates the growing concerns of holding partnerships with companies currently surrounded by intense regulatory scrutiny. However, this does not mean that companies are withdrawing interest crypto as a mainstream payment method. Mastercard Incorporated (NYSE:MA) and Visa Inc. (NYSE:V) still offer a range of crypto cards, allowing people to make hassle-free payments using their crypto assets. Mastercard Incorporated (NYSE:MA) offers prepaid cards funded by Tap, Nexo, and Gemini. The company’s efforts in transforming the crypto landscape continue, regardless of the scrutiny around the crypto market. On August 17, Mastercard Incorporated (NYSE:MA) announced its new Central Bank Digital Currencies (CBDCs) Partner Program. To kick-start the program, the company involved a group of leading blockchain providers to join the program. These include Ripple, Consensys, Fluency, Idemia, Consult Hyperion, Giesecke+Devrient, and FireBlocks. The company understands the importance of having a government-mandated public digital currency. Raj Dhamodharan, head of digital assets and blockchain at Mastercard Incorporated (NYSE:MA), spearheading the program, stated: “We believe in payment choice, and that interoperability across the different ways of making payments is an essential component of a flourishing economy. As we look toward a digitally driven future, it will be essential that the value held as a CBDC is as easy to use as other forms of money.” Similarly, Visa Inc. (NYSE:V) is also making leaps in the crypto market. On September 5, Visa Inc. (NYSE:V) announced it is expanding its stablecoin capabilities. The company will now introduce the USDC stablecoin on the Solana blockchain network. The company has been experimenting with the USDC stablecoin since 2021 and has now integrated the Solana network due to its efficient and speedy systems. Cuy Sheffield, Head of Crypto, Visa, stated: “By leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum, we’re helping to improve the speed of cross-border settlement and providing a modern option for our clients to send or receive funds from Visa’s treasury easily. Visa is committed to being on the forefront of digital currency and blockchain innovation and leveraging these new technologies to help improve how we move money.” Block, Inc. (NYSE:SQ) is a leading financial technology and software firm based in the United States. The company formerly began the development of Bitkey, a crypto product. This product is made to store all your digital assets in a physical wallet. The company is making leaps in the industry and reports strong earnings, which reflects that the crypto industry is far from declining. On August 3, Block, Inc. (NYSE:SQ) reported results from the second quarter of 2023. The company reported earnings per share of $0.39 and outperformed EPS estimates by $0.02. The company’s revenue for the quarter jumped 25.67% year over year and amounted to $5.53 billion, ahead of market consensus by $433.36 million. Jack Dorsey, head of Block, Inc. (NYSE:SQ), also discussed the company’s plans and important partnerships to boost the integration of cryptocurrencies in the business. He stated: “Earlier this year, we shared plans for the public beta testing of our bitcoin wallet, Bitkey. And in June, we announced our first two global partners, Coinbase and Cash App, to allow customers to buy and immediately transfer bitcoin from those custodial platforms into Bitkey’s self-custody wallet.” Large corporations investing in the development of crypto is a positive sign for cryptocurrencies, especially Bitcoin. However, crypto-friendly laws are essential to boost crypto ownership and establish crypto as a primary payment method. With that, let’s take a look at the 20 countries that use crypto and Bitcoin the most. Photo by bitcoin executium on Unsplash Our Methodology To determine the countries that use crypto and Bitcoin the most, we integrated three different metrics. These included the total population from the World Bank, the percentage of the total population that owns cryptocurrencies by Triple A, and the crypto adoption index by Chainanalysis. We considered data as of 2022 for consistency across all our metrics. The crypto adoption index by Chain Analysis is based on five different metrics. These metrics are a combination of the retail value of the cryptocurrencies, the value of cryptocurrencies at centralized exchanges, and trade volume. We shortlisted the top 50 countries from each of the three data sources. The crypto adoption index and percentage of the total population that owns crypto were given a higher priority. Of the two databases, we chose the first 20 common countries for our list. The figures for the total population were included as reference figures to add credibility to our data. According to our hypothesis, high crypto usage will translate as high bitcoin usage. We have ranked the 20 countries that use crypto and Bitcoin the most in ascending order. 20 Countries that Use Crypto and Bitcoin the Most 20. China Total Population as of 2022: 1.41 Billion Percentage of Total Population That Owns Crypto as of 2022: 4.08% Crypto Adoption Index as of 2022: 10  China ranks 20th as the country with the highest crypto and Bitcoin usage. The country has a crypto adoption index of 10 and a crypto ownership rate of 4.08%. Companies that are forging partnerships with crypto platforms and companies include Visa Inc. (NYSE:V), Mastercard Incorporated (NYSE:MA), and Block, Inc. (NYSE:SQ). 19. Germany   Total Population as of 2022: 84.08 Million Percentage of Total Population That Owns Crypto as of 2022: 4.19% Crypto Adoption Index as of 2022: 21 Germany is among the countries that use crypto and Bitcoin the most. The country is one of the most crypto-friendly countries in the world. It is no surprise that almost 4.2% of Germans own crypto. 18. Indonesia  Total Population as of 2022: 0.28 Billion Percentage of Total Population That Owns Crypto as of 2022: 4.55% Crypto Adoption Index as of 2022: 20 Indonesia ranks 18th with the highest crypto and Bitcoin ownership. Of the total population, 4.55% people in Indonesia own crypto. The country boasts a crypto adoption rank of 20. 17. United Kingdom Total Population as of 2022: 66.97 Million Percentage of Total Population That Owns Crypto as of 2022: 6.2% Crypto Adoption Index as of 2022: 17 The United Kingdom is among the countries that use crypto and Bitcoin the most. The country is one of the most crypto-friendly countries in the world. It is no surprise that almost 6.2% of people in the United Kingdom own crypto. 16. Kenya  Total Population as of 2022: 54.03 Million Percentage of Total Population That Owns Crypto as of 2022: 10.71% Crypto Adoption Index as of 2022: 19 Kenya ranks 16th with the highest crypto and Bitcoin ownership. Of the total population, 10.71% of people in Kenya own crypto, and the country boasts a crypto adoption rank of 19. 15. Nepal Total Population as of 2022: 30.55 Million Percentage of Total Population That Owns Crypto as of 2022: 4.43% Crypto Adoption Index as of 2022: 16 Nepal ranks among the countries with the highest use of crypto and Bitcoin. The country still has a long way to go in terms of introducing crypto-friendly regulations and accepting it as a mainstream form of payment. 14. Colombia Total Population as of 2022: 51.87 Million Percentage of Total Population That Owns Crypto as of 2022: 4.81% Crypto Adoption Index as of 2022: 15 Colombia ranks 14th with the highest crypto and Bitcoin ownership. Of the total population, 4.81% people in Colombia own crypto and the country boasts a crypto adoption rank of 15. 13. Morocco Total Population as of 2022: 37.46 Million Percentage of Total Population That Owns Crypto as of 2022: 4.90% Crypto Adoption Index as of 2022: 14 Morocco ranks among the countries with the highest use of crypto and Bitcoin. However, the country still has a long way to go in terms of introducing crypto-friendly regulations and accepting it as a mainstream form of payment by the government and the public alike.  12. Turkey Total Population as of 2022: 85.34 Million Percentage of Total Population That Owns Crypto as of 2022: 5.46% Crypto Adoption Index as of 2022: 12 Turkey ranks 12th with the highest crypto and Bitcoin ownership. Of the total population, 5.46% of people in Turkey own crypto, and the country boasts a crypto adoption rank of 12. 11. Argentina  Total Population as of 2022: 46.23 Million Percentage of Total Population That Owns Crypto as of 2022: 5.56% Crypto Adoption Index as of 2022: 13 Argentina is among the countries that use crypto and Bitcoin the most. The country is growing to become one of the most crypto-friendly countries in the world. It is no surprise that almost 5.6% of people in Argentina own crypto. 10. Nigeria  Total Population as of 2022: 0.22 Billion Percentage of Total Population That Owns Crypto as of 2022: 10.34% Crypto Adoption Index as of 2022: 11 Nigeria is slowly growing to become a crypto-friendly state. With a crypto adoption rank of 11, it is not a surprise that 10.34% of Nigerians own crypto. 9. Philippines  Total Population as of 2022: 0.12 Billion Percentage of Total Population That Owns Crypto as of 2022: 6.13% Crypto Adoption Index as of 2022: 2 The Philippines ranks 9th on our list of countries with the highest crypto and Bitcoin ownership. Of the total population, 6.13% of people in the Philippines own crypto, and the country boasts a crypto adoption rank of 2. 8. Russia Total Population as of 2022: 0.41 Billion Percentage of Total Population That Owns Crypto as of 2022: 5.87% Crypto Adoption Index as of 2022: 9 Based on our methodology, Russia ranks among the countries with the most crypto and Bitcoin users. Almost 6% of the population owns any form of crypto and boasts a crypto adoption index of 9. 7. Pakistan Total Population as of 2022: 0.24 Billion Percentage of Total Population That Owns Crypto as of 2022: 6.40% Crypto Adoption Index as of 2022: 6 Pakistan ranks among the countries with the highest use of crypto and Bitcoin. However, the country still has a long way to go in terms of introducing crypto-friendly regulations and accepting it as a mainstream form of payment. 6. Brazil  Total Population as of 2022: 0.22 Billion Percentage of Total Population That Owns Crypto as of 2022: 7.8% Crypto Adoption Index as of 2022: 7 Brazil is among the countries that use crypto and Bitcoin the most. The country is one of the most crypto-friendly countries in the world. It is no surprise that almost 7.8% of Brazilians own crypto. Some of the leading companies innovating in the digital payments and digital currencies space include Visa Inc. (NYSE:V), Mastercard Incorporated (NYSE:MA), and Block, Inc. (NYSE:SQ). Click to continue reading and see the 5 Countries that Use Crypto and Bitcoin the Most. Suggested Articles: 25 Countries with the Highest Cryptocurrency Ownership Most Valuable Currencies in the World in 2023 13 Best Cryptocurrency Exchanges and Apps in the US in 2023 Disclosure: None. 20 Countries that Use Crypto and Bitcoin the Most is originally published on Insider Monkey......»»

In this article, we will take a look at the 11 crypto stocks with biggest upside. To see more such companies, go directly to 5 Crypto Stocks with Biggest Upside. Cryptocurrencies soared last month after a three-judge appeals panel in Washington vacated a decision by the U.S. Securities and Exchange Commission that blocked Grayscale’s attempt […] In this article, we will take a look at the 11 crypto stocks with biggest upside. To see more such companies, go directly to 5 Crypto Stocks with Biggest Upside. Cryptocurrencies soared last month after a three-judge appeals panel in Washington vacated a decision by the U.S. Securities and Exchange Commission that blocked Grayscale’s attempt to convert Grayscale Bitcoin Trust into an Bitcoin (BTC-USD) exchange-traded fund. Several cryptocurrencies rallied strongly after this decision, including Bitcoin, Ethereum, Dogecoin and Binance Coin. Analysts see this decision as a critical milestone for the industry. Another win for the crypto industry came last month when a US judge ruled that  Ripple Labs Inc did not violate federal securities law by selling its XRP token on public exchanges. However, many analysts believe the crypto industry is facing the same concentration of value problem that is seen in the stock markets: just a few cryptocurrencies account for most of the gains in the industry and the industry is littered with meme coins and coins that have no solid underlying projects. As a result analysts and experts keep cautioning investors, which creates skepticism and volatility in the industry. But what are the reasons behind the skepticism? Did the industry lose hope on the future of money and how digital currencies promise to change it with decentralization? Has the fundamental thesis that once made cryptocurrencies the darlings of the global markets shifted? Many mainstream analysts now believe cryptocurrencies have now gone in the background when compared to other truly disruptive technologies like AI and Cloud computing. For example, a Refinitiv report said that of the many technologies that changed our lives over the past few years, AI is the most disruptive. Other disruptive technologies include high-speed internet, Cloud computing and blockchain. But surprisingly, according to the report, analysts are not excited about crypto. “This stands in stark contrast to cryptocurrencies, where institutional traders of all ages remain largely unexcited despite the efforts of many to make these markets more accessible.” So that means the whole crypto chapter was a façade and cryptocurrencies do not promise any good for the world? A report by Oliver Wyman Forum on the crypto outlook for 2023 and beyond answers this question in detail. It says: “The short answer is no – and that’s a good thing. Many parts of the sector show real promise for useful innovations to provide more efficient and effective financial products and services for businesses and consumers. The calamities of the past year revealed major flaws in the business models and practices of many crypto ventures, notably in the exchange and lending spaces, but they did not reflect fundamental weaknesses in the industry’s underlying technology or its ability to transform many areas of financial services. The challenge ahead – for digital asset businesses, investors, developers, policymakers, and consumers – is to focus on that promise, identify and rectify the flaws, and develop rules of the road (both formal and informal) that offer protections for investors and users while fostering truly valuable innovation.” Just because the governments around the world initiated a crackdown against crypto and the industry is littered with scams and meme coins does not make the fundamental thesis behind crypto invalid. There are investors and major companies still betting on the future of digital money and they believe sooner or later the world will move to digital currencies, DeFi and related technologies. Last month, JPMorgan said in a report that it sees “limited downside” to the crypto markets in the near term. The bank said in a report that the reversal of crypto rally seen after the Ripple Vs SEC court decision could be because of a “broader correction in risk assets such as equities and in particular tech, which in turn appears to have been induced by frothy positioning in tech, higher U.S. real yields and growth concerns about China.” The Oliver Wyman report said that despite the problems, innovation continues to take place in the crypto industry. The report cited data according to which last year, during the peak of the crypto winter, the industry saw a rise in crypto developers. It also quoted data from Celent which says that 91% of institutional investors are “interested” in investing in tokenized assets. The report however warned that the speculative element in the industry will remain strong. It however advised investors to focus on crypto projects with solid underlying assets and technologies. The report said that the industry has taken the form of an ecosystem, strongly interconnected, causing regulators and outsiders to see it as a whole. The report said this is not the right approach: “Second, and more important, the world’s tendency to lump everything in digital assets together as crypto creates substantial indirect impacts. Policymakers are likely to accelerate the movement to bring digital assets clearly within the regulatory perimeter, and to do so by applying tougher regulatory standards than they would have prior to the recent debacles. Some of this policy action will fail to adequately distinguish between different parts of the digital assets ecosystem. Similarly, funding for digital assets projects of all kinds is likely to be tougher to find going forward than it was when crypto was spinning gold for investors.” source: pixabay Our Methodology For this article, we conducted a survey of mainstream financial media and consulted at least 12 finance websites to see which cryptocurrency-related stocks have the biggest upside according to these websites. We picked 11 stocks that appeared most frequently on these websites. Some notable stocks include Paypal Holdings Inc. (NASDAQ:PYPL), NVIDIA Corporation (NASDAQ:NVDA) and Block, Inc. (NYSE:SQ). Crypto Stocks with Biggest Upside According to Mainstream Financial Media 11. Aerohive Networks Inc. (NYSE:HIVE) Number of Hedge Fund Holders: 4 Canadian-based crypto mining firm Aerohive Networks Inc. (NYSE:HIVE) ranks 11th in our list of the best crypto stocks with upside potential according to financial media. Aerohive Networks Inc. (NYSE:HIVE) produced 274 bitcoins in August. 10. Canaan Inc. (NASDAQ:CAN) Number of Hedge Fund Holders: 4 Chinese firm Canaan Inc. (NASDAQ:CAN) is known for its Blockchain servers and ASIC microprocessors for use in bitcoin mining. As of the end of the second quarter of 2023, 4 hedge funds reported owning stakes in Canaan Inc. (NASDAQ:CAN). Canaan Inc. (NASDAQ:CAN)’s management talked about the challenges the company is facing and the expected obstacles in a latest earnings call and said: “We believe that the broader market lacks sufficient upward momentum. In addition, large scale miners financing capabilities remain constrained. The recent hash rate growth curve also indicates a notable decline in the overall industry’s incremental hash rate investment and deployment during the first three quarters of this year. This trend aligns with our market assessment. Furthermore, policy changes concerning crypto-currencies and mining in various countries introduced further uncertainty to both the industry and our operations. In some cases, these changes could present unforeseen challenged to our actual operations. Given all the factors I have just outlined, we have a highly cautious outlook for the third quarter of 2023. We expect that revenues from the — for the quarter will be approximately $30 million. This forecast reflects our current views on the market and operational conditions and actually results may be subject to change. Overall, as you might already be aware, we have navigated several Bitcoin cycles since our inception in 2013. Our task is to confront and resolve the challenges we encounter. Much like Bitcoin itself, where every day we create new history with each new day, we become more experienced and stronger than the day before. We remain fully committed to performing ahead of the market curve. Next month, on September 12, we plan to celebrate the company’s 10th anniversary in Singapore. Canaan stands out industry [voting] (ph) and proudly holds the distinction of being the first NASDAQ listed company in our industry. Over the past decade, our evolution from a project group into a multinational company with leading chief design capabilities has been remarkable.” 9. Hut 8 Mining Corp. (NASDAQ:HUT) Number of Hedge Fund Holders: 6 Earlier this year crypto mining company Hut 8 Mining Corp. (NASDAQ:HUT) announced that it will combine with U.S. Data Mining Group, Inc. in an all-stock merger of equals. As of the end of the second quarter of 2023, 31 hedge funds out of the 910 hedge funds tracked by Insider Monkey had stakes in Hut 8 Mining Corp. (NASDAQ:HUT). The biggest hedge fund stakeholder of Hut 8 Mining Corp. (NASDAQ:HUT) was Steven Tananbaum’s GoldenTree Asset Management which owns a $2.2 million stake in the company. Like HUT, hedge funds also like Paypal Holdings Inc. (NASDAQ:PYPL), NVIDIA Corporation (NASDAQ:NVDA) and Block, Inc. (NYSE:SQ). 8. Marathon Digital (NASDAQ:MARA) Number of Hedge Fund Holders: 10 Digital asset tech company Marathon Digital is engaged in crypto mining services. 7. Riot Platforms, Inc. (NASDAQ:RIOT) Number of Hedge Fund Holders: 18 Riot Platforms, Inc. (NASDAQ:RIOT) shares have been on an absolute tear this year as the stock has almost doubled year to date through September 11. As of the end of the second quarter of 2023, 18 hedge funds tracked by Insider Monkey had stakes in Riot Platforms, Inc. (NASDAQ:RIOT). The biggest stakeholder of Riot Platforms, Inc. (NASDAQ:RIOT) was Paul Marshall and Ian Wace’s Marshall Wace LLP which had an $18 million stake in the company. 6. Coinbase Global, Inc. (NASDAQ:COIN) Number of Hedge Fund Holders: 27 Coinbase Global, Inc. (NASDAQ:COIN) ranks 6th in our list of the crypto stocks with high upside potential according to mainstream financial media. Last month, Coinbase announced it would buy an equity stake in Circle, the issuer of dollar-pegged USD Coin (USDC-USD). Insider Monkey’s database of 910 hedge funds shows that 27 hedge funds out of the 910 hedge funds reported owning stakes in Coinbase Global, Inc. (NASDAQ:COIN). The most significant stakeholder of Coinbase Global, Inc. (NASDAQ:COIN) was Catherine D. Wood’s ARK Investment Management which owns an $867 million stake in the company. Like Coinbase Global, Inc. (NASDAQ:COIN), Paypal Holdings Inc. (NASDAQ:PYPL), NVIDIA Corporation (NASDAQ:NVDA) and Block, Inc. (NYSE:SQ) are some crypto stocks analysts believe will rise in the future.   Click to continue reading and see 5 Crypto Stocks with Biggest Upside.   Suggested articles: 30 Most Valuable Currencies in the World in 2023 12 Best Technology ETFs To Buy 25 Countries with the Highest Cryptocurrency Ownership Disclosure: None. 11 Crypto Stocks with Biggest Upside is originally published on Insider Monkey......»»

In this article, we will be taking a look at the 25 countries that mine the most Bitcoin. To skip our detailed analysis, you can go directly to see the 5 countries that mine the most Bitcoin. Bitcoin, and bitcoin mining in particular, has been one of the most controversial discussions in the past decade, […] In this article, we will be taking a look at the 25 countries that mine the most Bitcoin. To skip our detailed analysis, you can go directly to see the 5 countries that mine the most Bitcoin. Bitcoin, and bitcoin mining in particular, has been one of the most controversial discussions in the past decade, with arguments ranging from it being the savior of private finance to it being considered one of the biggest scams in history. Regardless of what one may think, and despite volatile fluctuations, Bitcoin started to become mainstream in 2017, 8 years after its creation, when the first Bitcoin bubble resulted in explosive popularity, which in turned led to many people losing their life savings after the crash happened. Amid the Covid-19 pandemic, Bitcoin then reached its best ever run in 2021, with an all-time high of around $68,000 in November 2021, only to crash spectacularly over the next year as well. However, by that point in time, the demand for cryptocurrency, not just limited to Bitcoin, had increased massively, with other cryptocurrencies growing even more and major cryptocurrency exchanges such as Coinbase Global, Inc. (NASDAQ:COIN) going public in 2021, and is among the best cryptocurrency exchanges and apps in May 2023. Companies driving Bitcoin mining For Bitcoin to be created, it has to be mined, a process which has a significant environmental footprint and has been called out for being damaging to the environment. As cryptocurrencies were seeing their values soar, more and more people started to mine Bitcoin due to higher potential margins, especially in the countries that mine the most Bitcoin, and an important component of possessing the firepower needed to be able to mine Bitcoin are graphics cards, which is where NVIDIA Corporation (NASDAQ:NVDA) came in. One of the only companies in the world with a market cap of $1 trillion, it’s known more for being a top AI company right now, but is also famous among gamers and cryptocurrency miners for its GPUs. With enthusiasm for cryptocurrency declining as the value of top such currencies fell amid scandals including the collapse of FTX (even though it isn’t among the biggest bankruptcies in American history) and the collapse of Celsius, there has been some impact on NVIDIA Corporation (NASDAQ:NVDA). However, the cryptocurrency, while still far away from all-time highs, has had a new lease on life in 2023, with Bitcoin’s value increasing and more people in the countries that mine the most Bitcoin once again increasing their mining operations, and while AI has been the biggest driver of NVIDIA Corporation’s (NASDAQ:NVDA) more than 200% YTD share price gain, cryptocurrency has played a part. At its peak, the use of GPUs were so in demand, even the SEC took notice with the regulator stating the company “failed to disclose that crypto mining was a significant element of its material revenue growth from the sale of its GPUs designed and marketed for gaming”, and resulted in a $5.5 million fine. One challenge that companies which produce equipment used in cryptocurrency mining is Ethereum’s shift form proof of work to proof of stake will significantly reduce mining requirements and hence, a huge part of demand for cryptocurrency will end as the second largest cryptocurrency will no longer require it. Cryptocurrency industry outlook While the top cryptocurrencies have performed brilliantly in the first half of 2023, it is important to remember that Bitcoin and Ethereum, the two biggest cryptocurrencies in the world, are nowhere near their all-time highs, and so far, have been a bit dismal in the second half of 2023 despite a court ruling against the SEC and in favor of the company which made XRP. Recently, another major cryptocurrency called Worldcoin was launched by the CEO of OpenAI, the company responsible for ChatGPT and the project focuses on identifying whether a person online is real or AI, something which is becoming an increasing concern in today’s world. Meanwhile, though cryptocurrency is currently mainly focused on trading even while providing various applications, it is expected to move more towards nontrading uses as echoed by Coinbase Global, Inc. (NASDAQ:COIN) in its Q2 2023 earnings call “The first 10 years in crypto were primarily about trading, but we’ve seen our customer base shift its activity over time where the majority of our active customers now do something with crypto other than trading. My belief is that the next 10 years in crypto will become predominantly about nontrading use cases. So, what could some of those be? Well, payments is a big one. As the scalability of blockchain improves by moving to Layer 2 solutions like Lightning, Optimism, and Base, we’ll see payments emerge as a larger use case. Getting more scalable blockchains will be as important as the internet moving from dial-up to broadband. We’ll also see the rise of decentralized identity systems with decentralized messaging and social apps that will accompany those connected right into those decentralized identities.” Coinbase Global, Inc. (NASDAQ:COIN) has had an excellent performance in the first two quarters, which has led to its share price increasing by 120% YTD. Methodology To determine the countries that mine the most Bitcoin, we referred a study carried out by Cambridge University which shows the percentage share of each country by month. We have considered statistics for both January 2022 and December 2021, and used the average of these rankings to determine our list. 25. Italy Monthly hashrate share in Jan 22: 0.11% Italy has one of the highest prices for Bitcoin mining, which is why miners are considering other countries, and if this continues, Italy will soon drop off our list. 24. Mexico Monthly hashrate share in Jan 22: 0.11% Mexico’s importance in cryptocurrency mining can be seen by the fact that the World Digital Mining Summit 2022 was held in Cancun where the focus was on proof-of-work power, not to mention exploring additional industry trends. 23. Iran Monthly hashrate share in Jan 22: 0.12% Iran has used Bitcoin mining as a method to evade sanctions, as earnings from cryptocurrencies allow it to spend hundreds of millions of dollars while avoiding embargoes posted by Western nations. 22. Libya Monthly hashrate share in Jan 22: 0.14% Despite being an attractive destination for Bitcoin miners, Libya’s government has also started imposing crackdowns in the country, with a recent one resulting in dozens of arrests. 21. Paraguay Monthly hashrate share in Jan 22: 0.15% One of the biggest Bitcoin mining countries in South America, Paraguay recently saw Bitfarms, a Bitcoin mining company, expand operations further after it managed to secure two hydropower contracts. 20. Ukraine Monthly hashrate share in Jan 22: 0.15% While Ukraine has benefited massively from cryptocurrency donations in the Russia-Ukraine war, but is likely to drop out of this list as Bitcoin mining operations have been hugely impacted from the war. 19. Netherlands Monthly hashrate share in Jan 22: 0.21% A giant greenhouse in the Netherlands is actually using heat from Bitcoin mining to grow cash crops including tulips, with both ironically being associated with financial bubble at their peak. 18. France Monthly hashrate share in Jan 22: 0.21% One month ago, the first fully-licensed cryptocurrency provider was formed as a subsidiary of Société Générale. 17. Georgia Monthly hashrate share in Jan 22: 0.23% One of the biggest Bitcoin mining companies in the world CleanSpark, Inc. (NASDAQ:CLSK) is purchasing 2 Georgian facilities for a total of $9.3 million, showcasing Georgia’s attractiveness to Bitcoin miners. 16. United Kingdom Monthly hashrate share in Jan 22: 0.23% The Department for Environment, Food and Rural Affairs recently gave out a contract to a company which will explore opportunities to carry out Bitcoin mining operations at UK landfill sites. 15. Japan Monthly hashrate share in Jan 22: 0.23% The biggest utility company in Japan, TEPCO, has agreed to mine Bitcoin from the excess energy it generates, partnering with a local semiconductor company in this project. 14. Brazil Monthly hashrate share in Jan 22: 0.33% Brazil is a major advocate of cryptocurrency, and in June 2023, the country’s central bank provided a payment provider license to Mercado Bitcoin, a cryptocurrency exchange in the country. 13. Indonesia Monthly hashrate share in Jan 22: 0.35% While many countries in our list are clamping down on Bitcoin mining, Indonesia is exploring ways in which Bitcoin adoption will provide benefits to the country, and hence, could likely see Indonesia’s rank improve in the coming years. 12. Australia Monthly hashrate share in Jan 22: 0.36% An Australian company Arkon Energy raised $22 million in November 2022 to further expand Bitcoin mining operations based on renewable energy, as Bitcoin miners try to shed their image of greatly damaging the environment. 11. Norway Monthly hashrate share in Jan 22: 0.74% There is abundant hydropower in Norway, which has contributed to many cryptocurrency miners forming their base in the Nordic country. 10. Sweden Monthly hashrate share in Jan 22: 0.84% While Sweden is among the countries with the highest Bitcoin mining rates, a major tax hike in 2023 is likely to further impact an already declining industry in the country. 9. Thailand Monthly hashrate share in Jan 22: 0.96% Bitcoin mining has been hampered by actions against miners by authorities across the world and Thailand is no exception, with thousands of cryptocurrency mining rigs seized in late 2022. 8. Ireland Monthly hashrate share in Jan 22: 1.97% The fall in Bitcoin prices has greatly reduced margins for Bitcoin miners especially in Ireland where the cost of mining Bitcoin is especially high. Globally, Bitcoin mining is said to consume more electricity in a year than the entire country of Ireland. 7. Malaysia Monthly hashrate share in Jan 22: 2.51% While Malaysia is a significant contributor to Bitcoin mining, Malaysian police destroyed over 1,000 Bitcoin mining rigs in 2021 with a steamroller, which happened after the miners stole more than $2 million worth of electricity for their mining operations. 6. Germany Monthly hashrate share in Jan 22: 3.06% Germany is considered to be the most crypto-friendly country in Europe and is unsurprisingly among the countries mining the most Bitcoin in the world. Click to continue reading and see the 5 Countries that Mine the Most Bitcoin. Suggested Articles: 25 Biggest Beef Producing Countries in the World 20 States that Produce the Most Craft Beer 12 Best High Risk Penny Stocks to Buy Now Disclosure: None. 25 countries that mine the most Bitcoin is originally published on Insider Monkey......»»

Switzerland's Legacy Of Financial Freedom Makes It The Best Place For Bitcoin To Thrive Authored by Julian Liniger via BitcoinMagazine.,com, Switzerland values many of the core properties of Bitcoin and now the two are poised to create the future of financial sovereignty together... As a Swiss citizen, it didn’t take me long to understand why Bitcoin is unique. Switzerland is a country that values lots of the critical aspects that Bitcoin offers to people. The small country in the middle of Europe encourages self sovereignty, privacy and financial literacy. The pioneering Swiss banking secrecy was codified in 1934. This regulation, along with its political neutrality and enduring stability, makes the country a “safe haven” for companies and institutions that deal with money. However, there is one critical flaw: What’s the point of using the most trustworthy place in the world to store your money when the money itself is broken? Particularly in recent years, we have witnessed reckless behavior by governments and central banks across the globe. Tumbling from one crisis into the next one, it seems that no matter the obstacle, more liquidity has been (and continues to be) the solution from politicians. This is one of the reasons why price inflation is rising in developed nations, and is completely out of control in developing countries. Bitcoin is a solution to this problem. Bitcoin is the ultimate pristine asset, capped at 21 million units, not centrally controlled, genuinely neutral and global. It’s a monetary good that can be best described as “digital gold.” And, on top of that, it will act as a foundational layer for a new global financial system. I still remember my first real employment, which, ironically, was with one of the biggest national banks in Switzerland, called Raiffeisen. It was also when I first tried to understand how money and our financial system worked. I asked the bank employees and managers deep and intriguing questions, like probably no 21-year-old intern had before: Why can the bank just create money out of thin air and lend it out to people for a profit? What is fiat money backed by? Why can banks just speculate with the savings of their customers and then get bailed out when they fuck up? It always struck me how low on substance and high on bullshit the answers were and quickly, I realized that most of these bankers working for the money machine didn’t actually understand how it works. I came to the conclusion that the reason why it works in Switzerland was the high-quality standards, credibility and work ethics of the Swiss people, coupled with the country’s very stable regulatory and political system. These are clearly characteristics that set this nation apart from almost any other one in the world. And, for the same reasons, I think it is why Switzerland experiences among the lowest inflation rates and unemployment rates. So, it has built the most fertile ground worldwide for the Bitcoin industry — and, finally, sound money — to flourish. HOW SWITZERLAND IS BEATING THE EUROPEAN UNION While Switzerland is in the middle of Europe, it always opted to stay sovereign. This also shows up in terms of the different approaches to regulating Bitcoin. One of the biggest differences between Swiss regulation and the European Union’s Markets in Crypto-Assets Regulation (MICA) is the implementation of the Financial Action Task Force’s (FATF) “travel rule.” Switzerland’s travel rule, implemented by the Swiss Financial Market Supervisory Authority (FINMA), requires virtual asset service providers to verify the identity of the beneficiary of the transfer. Meanwhile, Europe’s version of the travel rule requires crypto asset service providers to apply enhanced due diligence measures when transactions involve self-custody wallets. What this means is that custodial services that operate in Europe will have to transfer huge amounts of data in order to comply with the much more demanding European travel rule. Another one of the advantages of Switzerland is the “kassageschäft” framework. Originally used for exchanging physical coins and banknotes of national currencies, it also applies to Bitcoin. Therefore, you don’t need KYC/AML registration to exchange cash in Switzerland, and luckily it fits the digital age as well. In recent years, FINMA has lowered kassageschäft limits for bitcoin compared to physical coins and banknotes from 5,000 CHF per day to 1,000 CHF per day and now is trying to push the limits to 1,000 CHF per 30 days, a move that has been met with skepticism by Bitcoin companies in Switzerland. But, compared to other countries, the Swiss government has shown time again that it’s willing to talk and collaborate with Bitcoin companies to find the best solution for all. WHY MANAGING RISK MATTERS MORE THAN EVER One person’s asset is another person’s liability. This basic rule in the world of finance became very real for a lot of cryptocurrency investors in 2022. Some of the biggest (and in terms of marketing, the loudest) names in the industry collapsed last year, taking customer funds with them into the abyss. But it was not only FTX, BlockFi and other crypto platforms that showed us that your assets are only yours as long as the respective third party says so. The banking crisis in Lebanon, rampant inflation combined with financial repression in Argentina and the loss of access to banking services because of political reasons around the world are very real. This all shows us one thing: counterparty risk matters, especially in the uncertain geopolitical future that we are heading into. We’ve seen that USD treasuries can be quickly frozen and sanctioned. The same goes for stocks or any other asset, including real estate, that people hold in other countries. While this has been the U.S.’s soft power of choice, investors have surely taken notice of the downsides of counterparty risks. It matters more than ever that Switzerland is the most trusted place for money on the planet. It has always been open to innovation, technology and international finance. Furthermore, it is, both from a regulatory and political perspective, very decentralized and community driven. Switzerland consists of 26 autonomous cantons and offers its citizens true direct democracy. When taking a closer look, the similarities between Switzerland and Bitcoin are striking: Any Swiss citizens can start an initiative to change the federal constitution, and if they manage to collect at least 100,000 signatures, the whole country will vote for it, almost like a Bitcoin Improvement Proposal (BIP). It should come as no surprise then that Switzerland plays a crucial role in the Bitcoin market today, known as a “crypto nation,” with Zug as the “Crypto Valley” and Lugano with the “Plan ₿” initiative, hosting hundreds of companies and thousands of employees working in this space. Particularly Lugano, Switzerland’s ninth-largest city with a population of over 60,000 located in the Italian-speaking southern region, shows how Bitcoin innovation and adoption should be done: in a curious, open and grassroots way. Lugano Mayor Michele Foletti is not afraid to take the leap here, to show the world firsthand why the decentralized Swiss governance model enables projects like the advent of a bitcoin-focused city. More than 100 merchants, restaurants and bars accept bitcoin in Lugano. It’s expected that soon, taxes can be paid in bitcoin (and other cryptocurrencies), which means that it’s very easy to seamlessly delve into a new, open monetary network. THE TRUST CRISIS IS AN OPPORTUNITY FOR BITCOIN AND SWITZERLAND Public trust in institutions like (central) banks, politics and legacy media outlets is at its lowest point in decades. In particular, younger people are looking for new answers. According to a recent survey, 45% of millennials said they prefer bitcoin to stocks, gold or real estate. More than half (51%) of millennials said they have more faith in Bitcoin than in financial institutions. This is bullish for Bitcoin. However, there are still obstacles. The tedious onboarding process, complicated user interfaces, lousy customer support and lack of self-custody solutions are still a reality for newbies interested in buying their first bitcoin. It’s clear what we have to do to get bitcoin in as many hands as possible: make buying and selling it easier. Get rid of all the hindrances, and allow anyone to stack sats in their own, self-hosted wallet, directly. Bitcoin is about long-term thinking, about saving. And people are desperate for ways to save money that they can genuinely trust again, solutions that don't get eaten away by inflation or high fees, solutions that are ready for the digital age and that can’t be frozen or censored in any way. I believe that Bitcoin is a force for good that can accelerate financial and, therefore human, freedom. Going forward, Satoshi Nakamoto’s invention will play an integral role not only as an asset without counterparty risk but also as an alternative financial layer that can host a wide range of services. THE FUTURE OF BITCOIN-ONLY IS BRIGHT, IN SWITZERLAND AND BEYOND True to its history as a place that fosters financial innovation instead of killing it, Switzerland will thrive in a world that is increasingly embracing Bitcoin. But despite the growing recognition and adoption of Bitcoin by the financial industry, it remains a bottom-up movement driven by its community of users, developers and enthusiasts. They are committed to the principles of decentralization, privacy and financial freedom and work to promote the use and adoption of bitcoin as a digital currency. The community is active in organizing meetups, forums and events where it can share its experiences and knowledge with others and work together to improve the technology. Even in the European Union, where the will to innovate with Bitcoin seems less determined, Nakamoto’s innovation will thrive. With a coherent regulatory framework on the horizon, Bitcoin is set for a bright future in Europe — no matter how hard some politicians want to fight it. Despite an ongoing energy crisis and attacks on Bitcoin’s energy consumption, it’s clear that there will be demand for an asset like bitcoin. High price inflation, financial repression and a looming euro-based central bank digital currency will drive adoption and demand. Tyler Durden Wed, 08/30/2023 - 03:30.....»»

Despite Weak Global Data, We Have Stagflation... We Also Have Leninist Policy Shocks By Michael Every of Rabobank "Just One Damned Thing After Another" History, some say, is “Just one damned thing after another.” So is most financial markets coverage, just with post hoc ergo propter hoc. Yet serious historians look for patterns; Marxists see it as pre-written; and Leninists want to speed it up with bullets. In markets there are also serious thinkers looking for patterns; and Marxists; and even Leninists. Take the death of Wagner mercenary leader Prigozhin, whose plane just ‘crashed’ in Russia. Even market analysts see the Leninist pattern there. If only they could apply the same analytical rigour more broadly though. In “just one damned thing after another” terms, yesterday saw appalling PMI data. UK manufacturing printed 42.5 and services 48.7, Europe 43.7 and 48.3 (with Germany worse), and the US 47.0 and 51.0. Yet the surveys also showed signs of inflation picking up again – so stagflation. The result: US 2-year yields -8bp to 4.97% and 10s -13bp to 4.20%, UK 2s -17bp to 4.97% and 10s -18bp to 4.47%, and German 2s -13bp to 2.96% and 10s -12bp to 2.51%; stocks closed up; the dollar DXY index spiked then slipped; oil dropped, then bounced; and gold and bitcoin rose. In market ‘ergo-ing’, the single worst take I saw was ‘people bought bonds because stagflation fears are rising’. But in stagflation bonds are the last place you want to be! Either the central bank raises rates, yet it does nothing; or they don't raise rates and you get financial repression. Those data were just what central banks didn’t want to see ahead of Jackson Hole, where the message is still likely to be ‘Higher For Longer’ under the umbrella of “Structural change”. They will need to show new thinking that grasps economic history. Relatedly, the BRICS just met in South Africa, as Prigozhin was taken out in the ‘R’, the ‘I’ landed a moon rover for a budget less than a bad Hollywood movie about the same, and President Biden cancelled an upcoming trip to BRICS applicant Indonesia, once again abandoning ASEAN as a foreign policy priority. Indeed, the BRICS meeting was frustrated with the US and G7, as those obsessed with microaggressions are blind to their macro transgressions. Xi Jinping’s speech noted: “Changes in the world, in our times and in history are unfolding in ways like never before, bringing human society to a critical juncture. Should we pursue cooperation and integration, or just succumb to division and confrontation? Should we work together to maintain peace and stability, or just sleepwalk into the abyss of a new Cold War? Should we embrace prosperity, openness and inclusiveness, or allow hegemonic and bullying acts to throw us into depression? Should we deepen mutual trust through exchanges and mutual learning, or allow hubris and prejudice to blind conscience? The course of history will be shaped by the choices we make.” And I was told it was all about when we get rate cuts! A lot of states now want to join BRICS: Algeria, Bangladesh, Bahrain, Belarus, Bolivia, Cuba, Egypt, Ethiopia, Honduras, Indonesia, Iran, Kazakhstan, Kuwait, Morocco, Nigeria, Palestine, Saudi Arabia, Senegal, Thailand, UAE, Venezuela, and Vietnam. That runs like the Welsh village with the longest place name in the world. This unpronounceable group has a GDP larger than the G7. However, as I warned 18 months ago, just looking at the world map and adding up populations and GDPs does not make a functioning ‘New World Order’. As a parallel, if you ‘add’ a gorilla to a great white shark, you don’t get the king of the sea AND the jungle without a lot of evolution – you just get digestion. In BRICS+, China is larger than all other members combined, and it exports ever-more value-added goods to them while only importing raw commodities from them. Yet the BRICS+ want to industrialize, not just sell raw materials to rich countries, as to the G7. Something doesn’t add up. Also note there was no BRICS+ launch of a promised common currency backed by gold or crypto, just the sensible goal of more development lending in their own currencies. Which, by the way, the G7 should also be embracing at Jackson Hole if they have a brain, even if it’s bad for inflation near term. Yet if it’s hard to create a new global system, it's easier to destroy one. If BRICS+ trade invoicing shifts from the dollar to local FX bilateral barter, and then goods flows shift too, it will mean a gradual global 1930's-style fragmentation of supply chains and capital flows, exacerbated by tech and clearing systems schisms. One key way the West can push back against this trend is via higher rates offering a decent rate of return on the US dollar, or Euro, etc. Capital can be hoovered out of rival political blocks with higher rates. Commodity prices can be pushed lower, or at least capped. We don’t talk about this, focusing instead on data now apparently screaming for rate cuts despite stagflation, but it’s true, and it’s clearly working. Of course, Wall Street hates it. Then again, it also hates dedollarization and being shut out of the BRICS+. Zoltan Pozsar thinks the US fears dedollarisation because, as quoted in the Financial Times, “The West dreamed of the BRICS as a lapdog, that they would accumulate dollars and recycle them into Treasuries, but instead of that they are renegotiating how things are done.” What he means is Wall Street, not the West. After all, post a serious economic bump, the US economy would do fine in a more fragmented world because it has all it needs – Wall Street wouldn't. Zoltan’s new ‘Ex Uno Plures’ --Latin for 'Exit Through the Gift Shop’-- offers 50% Fed liquidity and 50% on new ‘dollar-rival’ views. Yet the only Fed plumbing we need to know about is which acronym will be used to fund the Pentagon while rates stay high – again let’s see what Jackson Hole might say; and on the ‘gorilla-shark’ side, Hand-of-Godley Michael Pettis just pointed out that Zoltan misunderstands how the global balance of payments works, saving me doing it again. 2/12 I don't think he understands at all how the international balance of payments works. If he were the only one, it wouldn't matter, but he repeats a very common confusion. To say that the west (which, I think, here means the US) wants BRICS to accumulate dollars and... — Michael Pettis (@michaelxpettis) August 22, 2023 Frankly, Zoltan could just have listened to both Donald Trump and the Republican Party presidential debate, where there was universal agreement that the US doesn’t want to keep receiving recycled dollars via larger trade deficits, and wants mercantilism and/or industrial policy instead. (Alongside rather too much talk about washing machines and shower head pressure.) In short, despite weak global data, we have stagflation, which rate cuts would make worse. Moreover, we also have Leninist policy shocks for markets to deal with. In response, former Goldman CEO Hank Paulson just wrote an open letter to Xi and Biden (‘A deep crisis in China would pose a choice for two leading powers’) that basically begs for a policy U-turn to him bail out: “The decisions that Chinese and US leaders make in the months ahead could have enormous implications - for the global economy, global security, business and the future of the US-China competition. First, China… Whether we are witnessing a short-term blip or the beginning of the country’s long-term stagnation will ultimately depend on choices Beijing’s leadership makes…. It could continue on the path of greater Communist Party involvement in business and the allocation of economic resources, limiting access to economic data and arbitrarily enforcing vague legislation such as the national security law. Or it could pivot, making necessary changes to place more reliance on markets and the private sector, competition, and openness. The choice it makes matters greatly for the security of the world. A failed or low-growth economy has the potential to heighten geopolitical tensions if China opts to stoke nationalism and blames outside forces for its domestic challenges. If nationalist fervour results, the US-China relationship could further spiral toward conflict. The test for US policymakers will be whether we lose confidence in our own system by continuing to attempt to beat China at its own game - or whether we trust in the economic principles that have made our economy and our companies leaders in the world… Once and for all, China’s economic challenges should put to rest the belief that to compete, Washington should adopt more statist economic and industrial policies. Instead, US policymakers need to do more to reduce our national debt and address our looming fiscal crisis, which is the primary threat to our economic and national security. And we need to resist the impulse to adopt more top-down, bureaucracy-implemented approaches and avoid populist bullying of private businesses. For the sake of global growth, geopolitical security and our continued prosperity, we should hope China pivots toward policies that encourage competition and openness. And, here at home, we should remember that our national security depends upon our economic strength and stay focused on what has made our country strong.” To summarise, "A Greenspan Put for the Greenspan Putz, puh-lease" as Paulson expects China and the US to both cut taxes, cut state spending, cut rates, and cut regulation. Do you think this is what we are going to hear from Beijing? Rate cuts aside, as George Magnus just put it, “Such moves do not sit comfortably with the Leninist hew of Xi’s China, which is now crossing a river where the stones are too deep to feel.” Do you think this is what we are going to hear from Jackson Hole either? Will we really see a U-turn from the speech Lagarde gave earlier this year about the fusion of fiscal and monetary policy, of national security with economic security, and of the importance of the supply side in terms of PRODUCTION, just because of a weak set of PMI data? Will Powell throw everyone a big juicy bone? Maybe, because as Paulson shows, the ‘smartest guys in the room’ are staggeringly ignorant of how the world actually works. However, that he had to write the op-ed at all shows the pattern of history has now changed, and so will that of central banks, and then markets. In short, the odds of a rates policy pivot are very low – even if the PMI readings are too. Tyler Durden Thu, 08/24/2023 - 11:40.....»»

Bitcoin holds the title for the highest cumulative returns of any asset class over the past decade. Can crypto-centric stocks benefit this quarter? Bitcoin holds the title for the highest cumulative returns of any asset class over the past decade. While the Nasdaq 100 ETF (QQQ) has delivered annualized returns of ~15%, Bitcoin has delivered annualized returns of 150%.Bitcoin: The Trend is Far from OverDespite the massive gains Bitcoin has achieved over the past decade, the advance is still likely just beginning because:Institutional EntrantsBitcoin illustrates the quote, “First they ignore you, then they laugh at you, then they fight you, then you win”. For example, BlackRock (BLK) CEO Larry Fink once called Bitcoin a scam.Image Source: CNBCHowever, a few months ago, with Fink at the helm, the world’s largest asset manager ($12 trillion in aum) filed paperwork to launch a Bitcoin ETF. Other institutional giants, such as Fidelity, are following suit.Real-world AdoptionMore international citizens in countries like Argentina and Turkey are using Bitcoin to stave off hyper-inflation than ever before. The proof? While Bitcoin remains well off its highs domestically, BTC recently hit new highs versus Argentina and Turkey’s currencies – a sign that global, real-world adoption is real.Image Source: TradingViewMicroStrategy (MSTR) Earnings Due 8/1Zacks Rank #1 (Strong Buy) stock MicroStrategy Incorporated is a software company that specializes in business intelligence (BI) and analytics. MicroStrategy provides a comprehensive platform that enables organizations to analyze and visualize their data to make informed business decisions. The company’s tools allow for data discovery and exploration, interactive dashboards, data visualization, and reporting capabilities. Before its initial public offering (IPO) in 1998, MicroStrategy signed its most prominent client, the fast-food giant McDonald’s (MCD).Adopting the “Bitcoin Standard”For years, Michael Saylor had been concerned that the monetary system has been expanding by approximately 7% per year while inflation tends to rise at a clip of about 2% annually. In late 2020, Michael Saylor, MSTR’s founder and CEO at the time (now Executive Chairman), decided to take action and adopt what he refers to as the “Bitcoin Standard.” Michael Saylor, who is an eccentric MIT graduate, entrepreneur, and business executive, became fascinated with the uniqueness of Bitcoin and saw it as an alternative to the current monetary system. During an interview, Saylor reasoned, “What we (MSTR) were doing was that we were inverting the balance sheet such that we’re floating on a Bitcoin sail, on a crypto sail, if you will, and as the liquidity and the monetary system gets pumped up, we want it to float, rather than sink, on that pool of liquidity”. A lot has changed since Saylor’s initial Bitcoin-inspired epiphany. MSTR now owns more than 140,000 Bitcoin worth roughly $4 billion. In other words, MSTR has morphed into a Bitcoin proxy – which is not necessarily a bad thing. Despite Bitcoin being well off its all-time highs and the “crypto winter”, MSTR has outperformed the S&P 500 handsomely in the past five years.Image Source: Zacks Investment ResearchRecent OutperformanceWhile MSTR is known as being a Bitcoin proxy, the stock’s performance is showing why its so much more. Over the past year MSTR has gained 58.9% while Bitcoin is up just 27%.Image Source: MicroStrategyTo that point, on last quarter’s earnings call, management underscored the importance of the software business by saying “The core business is insulated from near-term bitcoin price volatility, and there is sufficient liquidity to cover debt service payments.”Coinbase (COIN) Earning Due 8/3Coinbase is the leading crypto exchange in the United States. The San Francisco-based company is facing a securities violation lawsuit from the Securities and Exchange Commission. However, since the SEC lawsuit was filed, shares have been on a tear.SEC Lawsuit Fallout & Price Action Versus NewsWhen in doubt, the best course of action for investors is to trust the price and volume action in a stock. Why? Price and volume represent real money being risked, while headlines in a vacuum can, at times, represent fear, uncertainty, and doubt. When a stock shrugs off bad news like COIN, it sends investors a clear message of strength.Regulatory ClarityBelieve it or not, the lawsuit may end up being a net positive for the company. While the case is an obstacle, it is short-term in nature. In the long term, COIN will benefit from regulatory clarity. Something CEO Brian Armstrong has pleaded with the SEC for years for.Strong Balance SheetSeth Klarman is a legendary value investor, billionaire, and one of the highest-earning money managers in the world. In a recent interview, Klarman stated that he avoids crypto but sees value in Coinbase, saying, “Coinbase is sitting on $5 billion in cash, has less than that in debt, and is doing some smart things.”Image Source: Zacks Investment ResearchBitcoin ETF Catalyst“Slowly at first, then all at once” seems to sum up the rush for big institutions to get a piece of the crypto space. Eight institutions have filed papers for a Bitcoin ETF in the past few months, including Fidelity and the world’s largest asset manager, Blackrock. Because Coinbase is listed as the custodian for these ETFs, the company benefits directly should any of the ETFs be approved.High Short InterestA quarter of Coinbase’s float remains short. In other words, if there are any positive surprises, the high short interest should act like fuel thrown onto a fire.Earnings will Take a Back Seat to SEC LawsuitThough earnings are important for investors to watch, any commentary about the ongoing SEC investigation should have the most impact on the stock.Bullish Chart Patterns Suggest Continuation is LikelyBoth MSTR and COIN are setting up in bull flags after their massive moves over the past few months. If earnings beat expectations as I expect, there should be fireworks to the upside.Image Source: TradingView  Top 5 ChatGPT Stocks Revealed Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion. Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”Download Free ChatGPT Stock Report Right Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BlackRock, Inc. (BLK): Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports MicroStrategy Incorporated (MSTR): Free Stock Analysis Report Coinbase Global, Inc. (COIN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

There's more bitcoin mining equipment flowing into Russia than anywhere else in the world as sanctions reshape the country's economy. People walk along closed empty Red Square with the Kremlin Wall in the background in Moscow, Russia, Tuesday, June 27, 2023. Life has returned to normal in the Russian capital after the abortive coup mounted by mercenary chief Yevgeny Prigozhin.(AP Photo/Alexander Zemlianichenko) Bitcoin mining machines are pouring into Russia amid its war in Ukraine, per CoinDesk. As the US market becomes saturated, mining-rig makers have expanded into Russia. According to the report, more mining machines are heading to Russia than anywhere else in the world. The bitcoin mining industry has proven to be an unexpected beneficiary of Russia's invasion of Ukraine and Western sanctions. Hardware manufacturers, according to CoinDesk, have been doing more business in the country, with more mining machines flowing into Russia than anywhere else in the world. Thanks to its cheap energy and cold weather, Russia has long been a hub for bitcoin mining, and after China banned it in 2021, Russia gained even more market share — all of which has continued amid the war. Although there's risk for foreign firms setting up shop in Russia, the conditions there and improving mining economics remain attractive, blockchain executives said at CoinDesk's Consensus 2023 festival.Not only that, but heightened regulatory scrutiny and taxes in the US and other countries have made previous options less enticing.To the crypto firm Cryptocurrency Mining Group, Russia will be the only nation to substantially accelerate hashrate growth, or the computational power being delivered to the blockchain."Russia had to divert its energy flow from EU in 2022 and being left with large excess capacity, bitcoin mining can be its new client," the company wrote in a report. With cheap energy being a major contributor to mining profits, the region looks poised to develop and attract more business.  Sources told CoinDesk that manufacturers Bitmain and MicroBT are active and participating in the Russian market, with Bitmain listing a Moscow office on its website. Both companies, according to the report, offer repair services for local miners in Russia.Meanwhile, it's possible that wartime sanctions have actually provided a boon to the crypto industry. First, bitcoin mining offers a different source of revenue for power producers hampered by the weakening economy. Not only that, but the sector facilitates exchanging rubles for bitcoin, which is accepted globally, unlike Russia's local currency. Read the original article on Business Insider.....»»

There's more bitcoin mining equipment flowing into Russia than anywhere else in the world as sanctions reshape the country's economy. People walk along closed empty Red Square with the Kremlin Wall in the background in Moscow, Russia, Tuesday, June 27, 2023. Life has returned to normal in the Russian capital after the abortive coup mounted by mercenary chief Yevgeny Prigozhin.(AP Photo/Alexander Zemlianichenko) Bitcoin mining machines are pouring into Russia amid its war in Ukraine, per CoinDesk. As the US market becomes saturated, mining-rig makers have expanded into Russia. According to the report, more mining machines are heading to Russia than anywhere else in the world. The bitcoin mining industry has proven to be an unexpected beneficiary of Russia's invasion of Ukraine and Western sanctions. Hardware manufacturers, according to CoinDesk, have been doing more business in the country, with more mining machines flowing into Russia than anywhere else in the world. Thanks to its cheap energy and cold weather, Russia has long been a hub for bitcoin mining, and after China banned it in 2021, Russia gained even more market share — all of which has continued amid the war. Although there's risk for foreign firms setting up shop in Russia, the conditions there and improving mining economics remain attractive, blockchain executives said at CoinDesk's Consensus 2023 festival.Not only that, but heightened regulatory scrutiny and taxes in the US and other countries have made previous options less enticing.To the crypto firm Cryptocurrency Mining Group, Russia will be the only nation to substantially accelerate hashrate growth, or the computational power being delivered to the blockchain."Russia had to divert its energy flow from EU in 2022 and being left with large excess capacity, bitcoin mining can be its new client," the company wrote in a report. With cheap energy being a major contributor to mining profits, the region looks poised to develop and attract more business.  Sources told CoinDesk that manufacturers Bitmain and MicroBT are active and participating in the Russian market, with Bitmain listing a Moscow office on its website. Both companies, according to the report, offer repair services for local miners in Russia.Meanwhile, it's possible that wartime sanctions have actually provided a boon to the crypto industry. First, bitcoin mining offers a different source of revenue for power producers hampered by the weakening economy. Not only that, but the sector facilitates exchanging rubles for bitcoin, which is accepted globally, unlike Russia's local currency. Read the original article on Business Insider.....»»

A new study has revealed the cryptocoins Americans want to sell the most, with Bitcoin taking the top spot. The ... Read more Bitcoin is the top cryptocurrency that Americans want to sell the most The second cryptocoin Americans want to sell is Ethereum XRP, Dogecoin and Shiba Inu all make the top five cryptocoins Americans want to sell  A new study has revealed the cryptocoins Americans want to sell the most, with Bitcoin taking the top spot. The Cryptocoins That The U.S. Want To Sell The Most The research was conducted by crypto gambling experts at cryptogambling.tv, who analyzed Google Trends data to establish the cryptocurrencies the US wants to sell the most out of the 24 largest cryptocurrencies by market cap, giving an average weekly search volume for the interest in selling each cryptocoin. Bitcoin The study revealed that Bitcoin has the highest number of searches from Americans looking to sell this cryptocurrency. Searches to ‘sell bitcoin’ were the highest at the end of July in the United States and worldwide. Many factors might sway someone to sell their Bitcoin, with the main reason being the current financial and economic strain many countries in the world are facing, prompting people to tap out and cut their losses. Last year the price of the cryptocoin dropped below $16,000, which highlights its downfall tremendously, and with Bitcoin’s value being based purely on speculation, it can be challenging for those who don’t know whether or not to stick with it. Ethereum Ethereum is the second cryptocoin Americans want to sell the most, with searches for ‘sell Ethereum’ being the highest in September worldwide. Although the currency is known for owning around 20% of the global crypto market, those wanting to invest tend to agree that it is one of the safest long-term coins. The current price of Ethereum is $1,458, and with the cryptocoin shifting its process from PoW to PoS, it’s predicted its supply may reduce. XRP XRP is the third cryptocoin Americans want to sell the most, as it is predicted that its price will be near $0.198 by the end of this year. XRP runs by RippleNet and is a low-cost coin which is excellent for those who want to begin investing; however, due to the current lawsuit proceedings with the SEC, there is a significant decrease in interest for the currency, which has undoubtedly urged investors to act fast and sell. Dogecoin The fourth cryptocoin Americans want to sell the most is Dogecoin, which, although it has remained one of the top cryptocurrencies in the industry, is still not a solid investment for many investors. The coin rose over 15,000% over 2021, and for a cryptocoin which was created as a joke when it first began, it has truly exceeded expectations. Many avoid investing in Dogecoin due to its price volatility, no supply limit, and not being as widely accepted as other competing coins; these are reasons why many also want to sell. Shiba Inu Shiba Inu is the fifth cryptocoin that Americans are looking to sell, and while the coin is top-rated, it is advised that those looking to invest should not use it as a long-term investment. The coin is down almost 92% since 2021, but many investors hope it will still go up in time as it is currently at over 589 trillion. An expert at cryptogambling.tv  commented: “The cryptocurrency market is forever fluctuating, and with the increase in economic stress worldwide, it can be an uncertain and nerve-racking time for those hoping to make sound investments in the crypto world. “This study offers an interesting insight into which cryptocoins Americans currently want to sell, with Bitcoin being the most popular to sell.” The Cryptocoins Americans Want To Sell The Most RankCryptocoin1Bitcoin2Ethereum3XRP4Dogecoin5Shiba Inu6Avalanche6Solana7TRON8Monero9Uniswap9Polygon10Tether.....»»

Futures Rebound After Thursday's Tech Rout As Record July OpEx Looms US equity futures are higher as futures pointed to a rebound from yesterday’s selloff, while the yen weakened on a BBG report that the the Bank of Japan won’t make any changes to its yield curve control program. As of 7:45am ET, S&P futures were 0.2% higher while Nasdaq futures rebounded 0.4% from yesterday's 2.3% rout. Netflix and Tesla climbed in pre-market trading after leading the Nasdaq to sharp losses on Thursday on the back of disappointing results. The Bloomberg Dollar Spot Index traded near the day’s highs, pressuring most Group-of-10 currencies, with the yen suffering the biggest declines after Bloomberg reported that Bank of Japan officials see little urgent need to address the side effects of its yield curve control program. Treasury yields were little changed, mirroring lackluster trading in European and UK bond markets. Brent crude rose more than 1%, while gold fell and Bitcoin gained 0.2%. The Nasdaq rebalance will take effect after close today. Headlines remain quiet this morning; next week, we will receive key MegaCap Tech earnings, starting with GOOGL and MSFT on Tuesday (7/25), and the July FOMC on Wednesday. In premarket trading, American Express fell almost 3% after the company reported discount revenue for the second quarter that missed the average analyst estimate. Tesla led electric-vehicle stocks higher in US premarket trading after weighing on the sector on Thursday. The stock had slumped after the world’s most valuable carmaker warned of more hits to its already-shrinking profitability. Digital World Acquisition Corp, the SPAC working to bring Donald Trump’s media venture public, soared 21% in premarket trading on Friday after the SEC said it settled fraud charges against the SPAC. Here are some other notable premarket movers: Intuitive Surgical shares drop 4.9% in premarket trading. The medtech’s second- quarter earnings beat was overshadowed by a continued decline in growth rates for bariatric surgery in the US amid patient interest in the new class of weight-loss drugs as an alternative. The weakness in this area was the only “nitpick” in performance across the company’s procedures, Truist Securities said. Emergent BioSolutions rises as much as 20% in premarket trading on Friday after the company said it got FDA approval for its anthrax vaccine. Cowen analyst notes that the approval is an incremental positive as it was largely expected. Sirius XM falls 10% in premarket trading on Friday after Evercore ISI cut its rating on the satellite radio company’s stock to underperform from in line. The downgrade comes after a 42% rally on Thursday that was powered by a short squeeze rather than any fundamental change in the business, the analyst notes. Rayonier Advanced Materials obtains $250m term loan financing from Oaktree Capital Management funds. The stock jumped 9% in postmarket trading. Scholastic climbed 9% in postmarket trading as the distributor of children’s educational books reported adjusted earnings per share for the fourth quarter that rose over 30% from the same quarter a year earlier. Trading on Friday will be affected by a flood of expiring options before an out-of-cycle rebalancing in the Nasdaq 100. The index shuffle, which takes effect on Monday, is designed to reduce the dominance of megacaps and boost the presence of smaller members. The tech-heavy index’s rejig coincides with the monthly options expiration - which at $2.4 trillion is a record for the month of July (see our preview here)- at a time when traders are anxiously waiting for corporate earnings and next week’s Federal Reserve policy meeting for clues on the market’s outlook. Stocks slipped Thursday for the first time this week as fresh signs of labor-market resiliency bolstered the case for at least another Fed hike this year. Underscoring the risk-off mood, investors withdrew $2.1 billion from equity funds in the week to July 19, while adding $7.5 billion to money markets and $1.4 billion to bond funds, according to BofA's Michael Hartnett. The main focus continues to be whether the rally in a handful of megacap stocks and hype over artificial intelligence has staying power. The S&P 500 has already surpassed most estimates for where it would end the year, confounding strategists convinced that 2023 would be another bad year for markets heading into recession.  “So where we are right now, we are resting after the massive move over the course of many weeks,” Ken Mahoney, CEO of Mahoney Asset Management, wrote in a note. “A lot of stocks were creating and still are creating bases to break out higher from. No one could believe their eyes after being so conditioned to 2022’s nasty selling conditions when this market gained steam again.” European stocks were mixed, trading between gains and losses with the German DAX underperforming as SAP shares slump after cloud sales missed estimates. Here are the most notable European stock moves: Schindler shares climb as much as 6.9% to highest since March, after the Swiss elevator maker surprised analysts with a full- year net income guidance that beat estimates, thanks to an uptick in orders Wartsila gains as much as 15%, the most since April 2021, after the Finnish power and marine propulsion products maker positively surprised the market with better-than- expected margins and reassuring order intake Recordati gains as much as 3.6%, the most intraday since June 1, after the Italian drugmaker made an agreement with GSK to commercialize Avodart and Combodart/Duodart products across 21 countries Volvo Cars gained as much as 7.3% after being double-upgraded to outperform at BNP Paribas Exane, which shifts its focus in autos manufacturers to now favor “affordable premium” Babcock shares gain as much as 6.5%, as Citi analyst Samuel Burgess raised his recommendation on the stock to buy from hold, a day after the defense outsourcing company released strong full-year results. He also increased the PT by 35% Truecaller shares surge as much as 34%, the most since Oct. 2021, as the Swedish caller-ID platform delivered results which DNB expects will trigger a rise in 2024 Ebitda consensus by up to 10% Viaplay gains as much as 31% after France’s Canal+ Group said it has built a stake in the Swedish streaming entertainment group. The jump trims some of Thursday’s 49% drop SAP drops as much as 5.6%, the biggest intraday decline since 2022, after the software company reported second-quarter sales in its cloud unit that missed estimates. Jefferies says the miss is a surprise Lonza shares drop as much as 10% as the Swiss pharmaceutical company cut its core Ebitda margin forecast for the full year after posting “weak” 1H, Citi says. ZKB was also critical of communication toward investors Thales falls as much as 4.9%, after the French defense group posted results slightly above expectations but produced a revised assumption on the impact of currency swings SSAB shares plunge as much as 16% after the Swedish steelmaker reported weaker-than-expected second-quarter earnings and gave an outlook that pointed to a worsening environment Stora Enso shares dropped as much as 7.7%, the most in four months, after the Finnish paper & packaging company’s operating Ebit for the second quarter missed estimates Norsk Hydro shares fall as much as 3.9% after the aluminum miner reported 2Q results. Analysts say the firm’s decision to hike its capital expenditure guidance outweighs the earnings beat Earlier in the session, Asian stocks dropped, as tech stocks led losses following TSMC’s guidance cut while benchmarks in Hong Kong climbed.  The MSCI Asia Pacific Index slumped 1.5% mainly because of the sharp drop in Indian stocks. TSMC, Tokyo Electron and other chip stocks were the biggest drags on the gauge after TSMC cut its annual outlook for revenue and delayed production at a planned facility in Arizona.  The Hang Seng China Enterprises Index advanced as much as 1.4%, while other other Hang Seng gauges were also among the region’s notable outperformers. Their gains come after losses in the past several sessions amid disappointments over the second-quarter growth figures and underwhelming support pledges from Beijing. Investors said the valuations of Chinese equities remained cheap even as it may take time to see a comeback in investor confidence.  Japan's Nikkei 225 slumped at the open but was well off its lows amid currency swings and somewhat ambiguous CPI data which printed mostly in line with expectations but showed a slight acceleration for the headline and core inflation. Key stock gauges in India snapped a six-day winning run to end as the worst performing market in the region on Friday due to a sell off in technology stocks. The S&P BSE Sensex fell 1.3% to 66,684.26 in Mumbai, while the NSE Nifty 50 Index declined 1.2% to 19,745.00. For the week, Sensex and Nifty climbed about 0.9% on continued net buying from foreign institutional investors amid optimism for earnings growth. Global funds net buying of India stocks have climbed to more than $15 billion since February. The MSCI India index ended with a 9.2% drop after a sudden decline in the index around 1:20 pm with index provider MSCI saying it is looking into the movement. “We need to see evidence of economic data recovering,” Abhilash Narayan, senior investment strategist at Standard Chartered Wealth Management, said in an interview with Bloomberg TV. “But from a valuation perspective, Chinese equities are extremely cheap,” he said adding that there is “a fairly good likelihood” that they will outperform global peers over the next 12 months.  The main Asian equity benchmark is set for about a 1% decline this week, its worst weekly performance this month. Investors are monitoring corporate earnings reports with many heavyweights in Asia scheduled to report their quarterly results next week. In FX, the Bloomberg dollar index extended gains to a fourth day, its longest winning streak since May. The yen tumbled as much as 1.4% and led losses among Group-of-10 currencies after traders confirmed what we have been saying all along - that there is little chance for a hawkish surprise at the BOJ’s policy decision next week as Bloomberg reported that officials see little urgent need to address the side effects of its yield curve control at this point. SocGen: "BOJ Call change: we change our BOJ call to no YCC tweak in July; we still think that the BOJ could widen the YCC range in September" Spoiler alert: the BOJ won't change YCC band in either July or September. — zerohedge (@zerohedge) July 16, 2023  The currency traded at 141.81 against the dollar, its weakest level in almost three weeks, amid reduced odds for a hawkish surprise at the BOJ’s policy decision next Friday. In rates, treasury yields edged lower as US trading day begins, led by longer-dated tenors. Narrow ranges during Asia session and European morning include 2.4bp for 10-year yield. On the week, yields are likewise mixed with the curve flatter, after swaps fully priced in a Fed rate hike on July 26 while auctions of 20-year bonds and 10-year TIPS drew strong demand. Yields remain within about 2bp of Thursday’s closing levels, 10- year around 3.84%, holding above 50-day average level breached this week for the first time since May; most other sovereign debt markets also little changed. Inverted 2s10s curve slightly flatter on the day at around -100bp; Thursday’s low -105bp was deepest inversion since July 6. Fed swaps continue to fully price in a 25bp rate hike on July 26 and about a third of an additional quarter-point hike this year. The pound also jumped after UK retail sales topped estimates, although gains proved short lived with cable now negative. The Bloomberg Dollar Spot Index is up 0.3%. European stocks are little changed with the Stoxx 600 flat after a three-day rally. Wall Street looks set for a higher open with S&P futures up 0.2% and Nasdaq 100 futures adding 0.4%. Gilts are in the red while bunds and Treasuries trade close to unchanged. Crude futures advance, with WTI rising 1.2% to trade near $76.60 In bitcoin, US House Republicans introduced a new digital assets oversight bill that aims to establish a regulatory framework to protect crypto investors, according to CoinDesk. FTX sues Sam Bankman-Fried and other former executives to recoup hundreds of millions of dollars of alleged fraudulent transfers, according to Reuters. In commodities, Wheat fell about 3% as Ukraine made preparations to continue a grain-export deal, which Russia exited this week. The grain is still poised for a weekly gain of 7%, after prices surged on threats to ships arriving at Black Sea ports. The rise in prices could again stoke food costs and feed inflation. Looking to the day ahead, it’s a fairly quiet one on the calendar with nothing on the US docket. Global data releases include UK retail sales for June, which came in handily above expectations, while earnings releases include American Express which missed expectations. Market Snapshot S&P 500 futures up 0.2% to 4,574.75 STOXX Europe 600 little changed at 463.76 German 10Y yield little changed at 2.48% Euro little changed at $1.1136 MXAP down 1.5% to 164.63 MXAPJ down 1.7% to 519.09 Nikkei down 0.6% to 32,304.25 Topix little changed at 2,262.20 Hang Seng Index up 0.8% to 19,075.26 Shanghai Composite little changed at 3,167.75 Sensex down 1.1% to 66,806.37 Australia S&P/ASX 200 down 0.2% to 7,313.89 Kospi up 0.4% to 2,609.76 Brent Futures up 0.7% to $80.22/bbl Gold spot down 0.3% to $1,964.31 U.S. Dollar Index up 0.10% to 100.98 Top Overnight News from Bloomberg Japan’s BOJ is “leaning towards” keeping the YCC policy unchanged at next week’s meeting as policymakers want to see further data before making adjustments. RTRS Japan’s national CPI for June overshoots the Street at +3.3% on the headline (vs. the Street’s +3.2% and up from +3.2% in May) while ex-energy and ex-energy/food are inline at +3.3% and +4.2%, respectively (the ex-energy/food number of +4.2% ticked down from +4.3% in May, leading some to think inflation may have peaked in Japan). RTRS Chinese authorities announced measures on Friday intended to help boost sales of automobiles and electronics with the goal of shoring up a sluggish economy, but the steps failed to impress investors who have been clamoring for stronger stimulus. RTRS The Asian Infrastructure Investment Bank, Beijing’s answer to the World Bank, has approved one of its highest-profile international partnerships, just weeks after it was accused of being infiltrated by China’s Communist party. FT In the most detailed public account yet given by a U.S. official, the director of the C.I.A. offered a biting assessment on Thursday of the damage done to President Vladimir V. Putin of Russia by the mutiny of the Wagner mercenary group, saying the rebellion had revived questions about Mr. Putin’s judgment and his detachment from events. NYT Russia's navy conducted a live fire exercise at a training range in the Black Sea, escalating the war's risk to global food markets. Wheat headed for a weekly gain of more than 10% as the tensions added to concern about extreme weather. BBG Fed Vice Chair for Supervision Michael Barr has laid out a plan to increase capital requirements for the nation's largest banks in the wake of recent bank failures and is expected to unveil the broad proposal to implement new risk-based capital requirements on July 27, according to three industry officials. RTRS The potential strike by 340,000 UPS workers threatens to revive two of the US economy's biggest hurdles: inflation and supply-chain disruptions. A walkout would snarl the 19 million US packages UPS moves daily and enable competitors to raise prices. But meeting the Teamsters' wage demands may also spur inflation pressures. BBG FTX sued Sam Bankman-Fried and his top lieutenants over $1 billion in bad deals as it tries to recover cash for creditors. BBG A more detailed look at global markets courtesy of newsqquawk APAC stocks were mixed as further support efforts from China partially offset the headwinds from Wall St where the Nasdaq 100 suffered its second-worst day of the year on tech disappointment and amid a rising yield environment. ASX 200 was subdued amid losses in tech, financials and the mining-related sectors, albeit with downside limited amid the lack of catalysts from Australia. Nikkei 225 slumped at the open but was well off its lows amid currency swings and somewhat ambiguous CPI data which printed mostly in line with expectations but showed a slight acceleration for the headline and core inflation. Hang Seng and Shanghai Comp were underpinned by further supportive efforts from China in which the NDRC released policies to boost electronics products consumption and measures to promote automobile consumption. Top Asian News China's NDRC released policies to boost electronic product consumption and encourages scientific research institutes and market entities to apply domestic AI technology to improve the intelligence level of electronic products. NDRC also issued measures to promote automobile consumption and are to encourage regions with purchase restrictions to issue annual purchase targets as soon as possible, according to Reuters. China is to explain anti-espionage law and mineral export restrictions to Japanese, US, South Korean and EU company executives on Friday, according to Jiji. China's state planner NDRC is to hold a press conference on Monday at 10am local time (03:00BST) on private investments. European bourses are relatively steady after mixed APAC performance as Chinese support offset the subdued handover, Euro Stoxx 50 -0.1%; in Europe, Tech lags with SAP -3.9%. Sectors are somewhat mixed with Energy seeing upside on benchmark pricing, though off best as the USD picks up, while Tech and the DAX 40 -0.5% lag after SAP missed on top & bottom. Stateside, futures are little changed amid a sparse US-specific docket ahead, ES +0.1%; NQ +0.3% is the incremental outperformer after Thursday's marked pressure and as the dovish-BoJ reports lend support via lower yields. Top European News UK PM Sunak's ruling Conservative party won Boris Johnson's former parliamentary seat of Uxbridge and South Ruislip but lost the seat of Somerton and Frome, as well as the Selby and Ainsty seat in the by-elections, while the Selby loss broke the record for the largest Tory majority overturned at a byelection by Labour since 1945, according to The Guardian's Pippa Crerar. UK-India trade talks have gained momentum in the latest rounds, though there is still a long way to go, according to Reuters citing sources. VCI, German Chemical Industry Association's H1 update: Production -10.5% YY; Revenue -11.5% YY; Producer Prices +5% YY. 2023 guidance: Production -8% (prev. -5%); Revenue -14% (prev. -7%). FX Yen slides as UST/JGB spreads blow out amidst BoJ sources saying no inclination to tweak YCC next week. USD/JPY close to 142.00 after breach of Fib and psych levels on the way up from sub-140.00 low; subsequent remarks from Kanda pressured it back to 141.40 briefly. DXY boosted by Yen collapse as index tops 101.00 within 100.710-101.080 range. Kiwi and Aussie undermined by a downturn in risk sentiment and Greenback gains, with NZD/USD and AUD/USD under 0.6200 and 0.6750 respectively, while AUD/NZD cross eyes expiry at 1.0900. Sterling unable to appreciate better than forecast UK retail sales as Cable retreats from just over 1.2900 towards 21 DMA not far below 1.2850 in face of broad Buck strength. Euro clings to 1.1100 handle and Loonie underpinned by decent expiry interest around 1.3150 ahead of Canadian retail sales. PBoC set USD/CNY mid-point at 7.1456 vs exp. 7.1965 (prev. 7.1466) China's FX regulator said yuan flexibility is increasing and market understanding of two-way fluctuation and risk-neutral also increased. China will prevent sharp volatility in the exchange rate and will keep the yuan basically stable at balanced levels in a forceful manner, as well as comprehensively use policy measures to stabilise expectations. Turkey introduced a 15% reserve requirement for FX-protected Lira deposits and is to withdraw TRY 450bln-500bln liquidity from the market through the change in reserves, according to Reuters. Fixed Income Bonds see-saw in aimless fashion, beyond Gilts and JGBs that have a clearer sense of direction. Bunds volatile either side of 133.00 and T-note pivoting parity within 112-02/08+ confines. Gilts retrace more post-UK CPU upside between 96.70-11 parameters and JGBs rebound firmly from 147.73 to 148.74 at best on the back of dovish BoJ sources Commodities WTI and Brent September futures are firmer in the early European hours of Friday and hold onto the APAC gains which emanated from further Chinese economic support measures. Spot gold is pressured by the Yen-induced Dollar strength and dips from its intraday peak of USD 1,973.40/oz closer to its 100 DMA which resides around USD 1,960.55/oz today. Base metals meanwhile are broadly underpinned by the aforementioned Chinese stimulus measures. Russian Deputy PM Novak says Russia is not ruling out introducing oil export products quotas; says some domestic refineries postponed maintenance to a later date, via IFX. Asian refiners have booked near-record volumes of August crude for August shipping, replacing Middle Eastern oil, via Reuters citing sources; amid competitive prices and large supplies attracting substantial purchases. Source adds that recently US crude is being aggressively pushed to Asia. Russian missiles have hit the grain terminal of an agricultural enterprise in Ukraine's Odessa region, with two people injured, according to the Governor of the region cited by Reuters. Geopolitics US Central Command said the US is to deploy a marine unit following Iran's recent attempts to seize ships. Poland is to move military formations from the west to the east of the nation due to possible threats from Russia's Wagner group, according to PAP. Russian navy carried out live fire 'exercise' in Black Sea: defence ministry, according to AFP. Russia's Black Sea Fleet practices firing rockets at surface targets following a warning to Ukraine on ships, via the Defence Ministry. Warships and planes practised sealing off areas temporarily closed to shipping and seizing ships. US Event Calendar 07:00: Bloomberg July United States Economic Survey DB's Jim Reid concludes the overnight wrap After a pretty strong last couple of weeks for bonds and equities, both sold off yesterday in the US, with tech having one of the worst days of the year. Ironically, outside of disappointing tech earnings, the main catalyst was actually some positive US data, which shifted the debate back towards next week not necessarily being the last Fed hike in the cycle. Indeed, more hawkish expectations meant that the 2yr real yield hit a post-GFC high intra-day, though it was breakevens that drove the rates sell off at the end of the day. The rates environment was a setback for equities, while weak tech earnings releases weighed even more, with the NASDAQ falling -2.05% in its biggest post-SVB decline and the 3rd worst day of the year. In terms of the specific data releases, the most important were the weekly US initial jobless claims, which fell to 228k (vs. 240k expected) over the week ending July 15. That’s the lowest claims number we’ve had in a couple of months, and there are growing signs that this is a trend, with the 4-week moving average down for a third week running to 237.5k. It’s true that the continuing claims were above expectations at 1.754m (vs. 1.722m expected), but that was for the previous week ending July 8, and the broader trend downwards is also still evident from the chart. As well as the jobless claims, the Philadelphia Fed released their manufacturing business outlook survey, with the headline index up slightly to -13.5 (vs. -10.0 expected). But the much better news was on the expectations side, with the headline index for 6 months from now up to a 23-month high of 29.1. With those more positive releases in hand, investors moved to price in a growing chance of further hikes over the months ahead. For instance, futures raised the chances of a second further hike from the Fed after next week to 35%, having been at 30% the previous day. They also dialled back the chances of rate cuts in 2024, with the rate priced in for December up +10.4bps on the day to 4.03%. In Europe it was much the same story, albeit to a lesser extent, with pricing for a second ECB hike after next week up from 87% to 94%. All that led to a significant selloff among sovereign bonds, with yields on 10yr Treasuries up +10.3bps on the day to 3.85%. That’s their biggest increase in three weeks, and this was echoed across the curve, with the 2yr yield up +7.4bps to 4.84%. As mentioned at the top, there was a shift in the drivers of higher rates through the course of the day. The 2yr real yield hit a post-GFC high intra-day, but breakevens drove most of increase by the close with 10yr breakevens (+8.6bps) seeing their sharpest daily rise since January. Europe got some positive, albeit backward looking, economic news as well yesterday, as the latest data revisions showed that the Euro Area avoided a technical recession over the winter. That’s because growth in Q1 was revised up to 0.0% (vs. -0.1% previously), so the latest data now only shows one quarterly contraction in Q4, rather than the two consecutive contractions that are often used to define a recession. Alongside the US data, that supported a fresh rise in yields there too, with those on 10yr bunds (+4.6bps), OATs (+5.0bps) and BTPs (+2.9bps) all moving higher. This put a dent in US equities, with the S&P 500 (-0.68%) seeing its biggest decline in two weeks. That said, more than 50% of the S&P 500 actually posted gains on the day with the decline driven by tech stocks. Tesla (-9.74%) and Netflix (-8.41%) both lost significant ground following their earnings after the previous day’s close. This weakness among tech stocks meant that the NASDAQ (-2.05%) suffered its worst day in four months, whilst the FANG+ index (-4.60%) of megacap tech stocks had its worst day of 2023 so far. In other negative news on the tech front, leading chipmaker TSMC cut its 2023 outlook and signaled a delay on a new planned production facility in Arizona. TSMC shares are trading more than -3% lower in Asia this morning. Finally, the underperformance of tech megacaps may have been exacerbated by a special rebalancing of the NASDAQ 100 index, which will be effective as of next Monday (24 July) and will see a decline in the index weights of the tech megacaps. On the other hand, with utilities, energy and industrials outperforming, the Dow Jones (+0.47%) advanced for a 9th consecutive session for the first time since 2017. The European bourses also fared much better, with the STOXX 600 up +0.42% to a one-month high. In the geopolitical sphere, Ukraine said that ships heading to Russian ports may be military targets following the collapse of the Black Sea grain deal, which comes in response to Russia announcing a similar move regarding ships heading to Ukraine. Wheat prices initially spiked higher following the news, but they pared back their gains and ended the session -0.10% lower after a run of 5 consecutive gains. They are +17% up from their recent lows on 12 July. Asian equity markets are mixed this morning with the Hang Seng (+0.80%) leading gains while the CSI (+0.24%) and the Shanghai Composite (+0.08%) edging higher after the Chinese government announced detailed measures to support the private sector. Elsewhere, the Nikkei (-0.22%) is lower with the KOSPI (-0.08%) swinging between gains and losses. S&P 500 (+0.12%) and NASDAQ 100 (+0.11%) futures have seen a small rebound. Early morning data showed that Japan’s consumer inflation climbed by +3.3% y/y in June (v/s +3.2% expected), and slightly higher than May’s +3.2% increase while the core consumer prices rose +3.3% y/y in June, in line with market expectations and against the prior month’s gain of +3.2%. Core core was in-line at +4.2% y/y, down a tenth from last month, the first decrease in the y/y rate since January and likely marks the start of a trend lower. The pace of the decline will determine the BoJ's policy over that period though. Remember we have an important BoJ meeting next week with some whispers of policy change although the market will be once bitten twice shy on this. In UK by-elections, the Conservative government suffered a double by-election defeat after Selby and Ainsty (considered as a safe seat) voted against the government giving the Labour its largest swing since 1997 and its biggest ever reversal of a numeric majority in a by-election in history. The Government surprisingly held ex-PM Boris Johnson's seat in Uxbridge London, as an unpopular scheme by the Labour London mayor on expanding the ultra low emissions zone in the capital, put off voters. Before we look at the day ahead a quick wrap of yesterday’s other data. US existing home sales for June fell to an annualised rate of 4.16m (vs. 4.20m expected), which is their lowest level in 5 months. Separately, the Conference Board’s leading index for June posted a -0.7% decline (vs. -0.6% expected), marking its 15th consecutive monthly decline. Finally in Europe, German PPI inflation fell to just +0.1% in June, which is its lowest level since November 2020. To the day ahead now, and it’s a fairly quiet one on the calendar. Data releases include UK and Canadian retail sales for June, whilst earnings releases include American Express. Tyler Durden Fri, 07/21/2023 - 08:19.....»»

Better Get Ready; Central Bank Digital Currency Is Coming Authored by Michael Maharrey via SchiffGold.com, You had better get ready for the world of central bank digital currencies (CBDCs) because they are coming. And they are coming fast... According to a recent survey by the Bank for International Settlements (BIS), as many as 24 CBDCs could be in circulation by 2030. This means even more government control over your money. According to the BIS, 93% of the 86 central banks surveyed said they are conducting work on developing a CBDC. Meanwhile, “The uncertainty about short-term CBDC issuance is fading.” The survey suggests there could be 15 retail and nine wholesale CBDCs circulating by 2030. CBDCs exist as virtual banknotes or “coins” held in a digital wallet on a computer or smartphone. The difference between a central bank (government) digital currency and peer-to-peer electronic cash such as bitcoin is that the value of the digital currency is backed and controlled by the government, just like traditional fiat currency. Central bank digital currencies are part of a broader “war on cash.” A cashless society is sold on the promise of providing a safe, convenient, and more secure alternative to physical cash. We’re also told it will help stop dangerous criminals who like the intractability of cash. But there is a darker side – the promise of control. The elimination of cash creates the potential for the government to track and control consumer spending. Digital economies would also make it even easier for central banks to engage in manipulative monetary policies such as negative interest rates. So far, the Bahamas, the Eastern Caribbean, Jamaica and Nigeria have issued retail CBDCs. Many other countries, including China, India, and the US have launched pilot programs. Based on the BIS survey, “More than half of central banks are conducting concrete experiments or working on a CBDC pilot.” Last year, the Federal Reserve released a “discussion paper” examining the pros and cons of a potential US central bank digital dollar. According to the central bank’s website, there has been no decision on implementing a digital currency, but this pilot program reveals the idea is further along than most people realized. Ultimately, it would take a congressional act to establish a digital dollar as legal tender. Impact Imagine if there was no cash. It would be impossible to hide even the smallest transaction from the government’s eyes. Something as simple as your morning trip to Starbucks wouldn’t be a secret from government officials. As Bloomberg put it in an article published when China launched a digital yuan pilot program in 2020, digital currency “offers China’s authorities a degree of control never possible with physical money.” The government could even “turn off” an individual’s ability to make purchases. Bloomberg described just how much control a digital currency could give Chinese officials. The PBOC has also indicated that it could put limits on the sizes of some transactions, or even require an appointment to make large ones. Some observers wonder whether payments could be linked to the emerging social-credit system, wherein citizens with exemplary behavior are ‘whitelisted’ for privileges, while those with criminal and other infractions find themselves left out. ‘China’s goal is not to make payments more convenient but to replace cash, so it can keep closer tabs on people than it already does,’ argues Aaron Brown, a crypto investor who writes for Bloomberg Opinion.” Economist Thorsten Polleit outlined the potential for Big Brother-like government control with the advent of a digital euro in an article published by the Mises Wire. As he put it, “the path to becoming a surveillance state regime will accelerate considerably” if and when a digital currency is issued. What Can We Do About It? We probably can’t stop governments from issuing CBDCs, but we can avoid using them. Initially, they will coexist with cash. Simply rejecting CBDCs and sticking to cash will slow down implementation. Individuals can also begin to establish barter relationships. If the government begins to restrict the use of cash, you can still do business using barter metals or non-government cryptocurrencies. We should also encourage steps toward creating currency competition. The US states are in a position to do this by incentivizing the use of gold and silver as money. Gold and silver have served as money for thousands of years. Digital platforms make it easier than ever to transact business using either metal. This opens the door to creating an environment of currency competition, and the states are in a position to lead the way. For instance, a bill introduced in Texas this year would have created a state-issued gold-backed digital currency. The bill didn’t advance, but it started the discussion and opened the door for future action. As Allain L. de la Motte argues, “While the dollar won’t be displaced overnight, fostering a competitive environment where it needs to compete with sound money backed by gold is the best option for all 50 states.” States may also be able to hinder the use of CBDCs. For instance, laws recently enacted in Florida and Indiana ban the use of a central bank digital currency (CBDC) as money in those states by explicitly excluding a CBDC from the definition of money. How such legislation would play out in practice against a CBDC, should the federal government attempt to implement one, is unknown. “A Roadblock” is likely the way this legislation to oppose a CBDC would play out, and it’s part of James Madison’s four-step blueprint for how states can stop federal programs. Ultimately, we will only beat CBDCs through human action. And it’s important to start now – because the CBDC train is hurtling down the track. Tyler Durden Tue, 07/18/2023 - 16:20.....»»

Argentina's presidential election may determine if the country adopts the dollar as its own legal tender, joining these other countries. Andrew Jackson portrait on $20 bill.Elizabeth Fernandez/Getty Images Argentina's presidential election may determine if the country adopts the dollar as its own currency. But a top analyst said that is unlikely to happen due to nationalism around its currency. Several other countries, including Panama and Zimbabwe, have adopted the greenback. Argentina's presidential election may determine if the country adopts the US dollar as its own currency, potentially becoming the biggest economy to do so.It's a notable contrast with the de-dollarization trend among countries trying to reduce their reliance on the greenback in global transactions and reserve holdings.  But don't hold your breath, according to Marc Chandler, chief market strategist at Bannockburn Global Forex."If Argentina uses the dollar, they're basically outsourcing their central bank and monetary policy to the US. And my sense is that few countries, especially few large countries, really want to do that," he told Insider. "Local nationalism seems too strong."Still, other countries are doing it. Here are nations that use the US dollar as local currency. GDP and population estimates come from 2021 World Bank data.EcuadorGDP: $106.17 billionPopulation: 17,797,737The Latin American nation went through a number of currencies before landing on the sucre. However, when this became worthless, many citizens began accumulating dollars on their own, unofficially dollarizing the nation. Ecuador eventually adopted the US dollar in 2000. PanamaGDP: $63.61 billionPopulation: 4,351,267The Central American country uses the dollar alongside its local currency. The Panamanian Balboa is pegged 1-for-1 to the greenback and only issued in the form of coins. This structure has been established since 1904 after Panama claimed independence.El SalvadorGDP: $28.74 billionPopulation: 6,314,167The US currency replaced El Salvador's colón in 2001, as a method of stabilizing its economy. More recently, the nation moved to also recognize bitcoin in 2021.ZimbabweGDP: $28.37 billionPopulation: 15,993,524The greenback was used in 77% of transactions this year after the US dollar was reintroduced to rein in inflation caused by the local Zimbabwean dollar. This is the second time since 2009 that the US currency was brought in.Earlier this month, the International Monetary Fund pushed Zimbabwe to take further action on its currency reforms, such as allowing the local tender to become free-floating.Democratic Republic of Timor-LesteGDP: $3.62 billionPopulation: 1,320,942The US dollar became this country's legal tender in 2000, after a popular referendum in 1999 to decide the Southeast Asian country's independence. The Federated States of MicronesiaGDP: $404 millionPopulation: 113,131The island nation in the western Pacific adopted the dollar after gaining independence in 1979.Marshall IslandsGDP: $260 millionPopulation: 42,050The South Pacific nation of islands has used the dollar since 1979. Despite urging from the IMF to reconsider the move, the country also passed legislation to establish a national cryptocurrency in 2018, known as Sovereign. Republic of PalauGDP: $218 millionPopulation: 18,024The Pacific archipelago nation has been using the US dollar since its inception in 1994. More recently, it partnered with crypto firm Ripple in December to develop a stablecoin. Meanwhile, other territories and jurisdictions that also use the US dollar include Puerto Rico, Guam, the US Virgin Islands, the British Virgin Islands, Bonaire, American Samoa, and Turks and Caicos.Read the original article on Business Insider.....»»

Argentina's presidential election may determine if the country adopts the dollar as its own legal tender, joining these other countries. Andrew Jackson portrait on $20 bill.Elizabeth Fernandez/Getty Images Argentina's presidential election may determine if the country adopts the dollar as its own currency. But a top analyst said that is unlikely to happen due to nationalism around its currency. Several other countries, including Panama and Zimbabwe, have adopted the greenback. Argentina's presidential election may determine if the country adopts the US dollar as its own currency, potentially becoming the biggest economy to do so.It's a notable contrast with the de-dollarization trend among countries trying to reduce their reliance on the greenback in global transactions and reserve holdings.  But don't hold your breath, according to Marc Chandler, chief market strategist at Bannockburn Global Forex."If Argentina uses the dollar, they're basically outsourcing their central bank and monetary policy to the US. And my sense is that few countries, especially few large countries, really want to do that," he told Insider. "Local nationalism seems too strong."Still, other countries are doing it. Here are nations that use the US dollar as local currency. GDP and population estimates come from 2021 World Bank data.EcuadorGDP: $106.17 billionPopulation: 17,797,737The Latin American nation went through a number of currencies before landing on the sucre. However, when this became worthless, many citizens began accumulating dollars on their own, unofficially dollarizing the nation. Ecuador eventually adopted the US dollar in 2000. PanamaGDP: $63.61 billionPopulation: 4,351,267The Central American country uses the dollar alongside its local currency. The Panamanian Balboa is pegged 1-for-1 to the greenback and only issued in the form of coins. This structure has been established since 1904 after Panama claimed independence.El SalvadorGDP: $28.74 billionPopulation: 6,314,167The US currency replaced El Salvador's colón in 2001, as a method of stabilizing its economy. More recently, the nation moved to also recognize bitcoin in 2021.ZimbabweGDP: $28.37 billionPopulation: 15,993,524The greenback was used in 77% of transactions this year after the US dollar was reintroduced to rein in inflation caused by the local Zimbabwean dollar. This is the second time since 2009 that the US currency was brought in.Earlier this month, the International Monetary Fund pushed Zimbabwe to take further action on its currency reforms, such as allowing the local tender to become free-floating.Democratic Republic of Timor-LesteGDP: $3.62 billionPopulation: 1,320,942The US dollar became this country's legal tender in 2000, after a popular referendum in 1999 to decide the Southeast Asian country's independence. The Federated States of MicronesiaGDP: $404 millionPopulation: 113,131The island nation in the western Pacific adopted the dollar after gaining independence in 1979.Marshall IslandsGDP: $260 millionPopulation: 42,050The South Pacific nation of islands has used the dollar since 1979. Despite urging from the IMF to reconsider the move, the country also passed legislation to establish a national cryptocurrency in 2018, known as Sovereign. Republic of PalauGDP: $218 millionPopulation: 18,024The Pacific archipelago nation has been using the US dollar since its inception in 1994. More recently, it partnered with crypto firm Ripple in December to develop a stablecoin. Meanwhile, other territories and jurisdictions that also use the US dollar include Puerto Rico, Guam, the US Virgin Islands, the British Virgin Islands, Bonaire, American Samoa, and Turks and Caicos.Read the original article on Business Insider.....»»

Futures Flat With S&P On Cusp Of Bull Market, Oil Jumps After OPEC Production Cut Futures are flat with oil jumping after OPEC+ cut output by an extra 1mm bpd in a unilateral move by Saudi Arabia taking its production to the lowest level for several years.At 7:30am ET, S&P futures were flat, while Nasdaq futures were down 0.2% with some artificial-intelligence exposed stocks like Nvidia Corp. and C3.ai Inc. trading down. In contrast, Apple Inc. surpassed its previous closing record in premarket ahead of what’s expected to be its most significant product launch event in nearly a decade. Oil rose 2%, with oil giants such as Chevron and Exxon up in premarket trading. The Bloomberg dollar index is up as are 10Y yields now that the market's attention turns to the $1+ trillion deluge in new debt issuance. Gold dropped, as did bitcoin after the crypto currency got its usual Asian session rugpull. Oil-related stocks rose in US premarket trading after Saudi Arabia announced it would scale back oil output by a further 1 million barrels a day in July, taking the OPEC+ member’s production to the lowest level for several years after a slide in crude prices. Saudi Energy Minister Prince Abdulaziz bin Salman said he “will do whatever is necessary to bring stability to this market”; with oil prices being weighed down by relentless shorting by hedge funds amid a softer economic outlook.  The rest of the 23-nation OPEC+ group offered no additional action to buttress the current market, but did pledge to maintain their existing cuts until the end of 2024. Chevron, Exxon Mobil and Occidental Petroleum all rise more than 1%, as do Phillips 66 and Schlumberger. Also in premarket trading, Apple rose 0.6% putting the shares on track to reach a new record high. The company is expected to launch a mixed-reality headset at the Worldwide Developers Conference on Monday, marking its most significant product launch in nearly a decade. Here are some other notable premarket movers: Bellerophon Therapeutics shares slid 74% Monday after the company said its phase 3 rebuild study of INOpulse to treat fibrotic interstitial lung disease failed to meet its primary endpoint. Day One Biopharmaceuticals shares rise as much as 35% after the biotech company provided updated data for its drug for the treatment of pediatric low-grade brain tumors that was “highly impressive,” according to a Wedbush analyst. Epam Systems falls as much as 11% after the IT services company cut its adjusted earnings per share forecast for the second quarter. ImmunoGen shares gain as much as 19% in premarket trading on Monday, after the biotech company provided full results from its late-stage trial for its treatment of ovarian cancer. Oil-related stocks rise after Saudi Arabia announced it would scale back oil output by a further 1 million barrels a day in July, taking the OPEC+ member’s production to the lowest level for several years after a slide in crude prices. Palo Alto Networks Inc. (PANW) shares gain 4.9% on Monday, following a Friday announcement that the stock is set to replace Dish Network Corp. in the S&P 500. Southwestern Energy Co. (SWN) rises 2% as it looks like a “logical target” for either Coterra Energy Inc. or Chesapeake Energy Corp., according to Citi. With the debt ceiling now behind us, markets will now prepare for a deluge of issuance; BBG reports that bearish positioning in the S&P is highest since 2007 while bullish bets on NDX are near last year’s highs. Meanwhile, the steamrolling of the bears continues with S&P 500 is just 0.2% short of a 20% gain from its October low in the previous trading session; the Nasdaq 100 is already firmly in a bull market, as traders anticipate a pause in the Federal Reserve’s rate hiking cycle. Expectations that any slowdown in the US would be mild and optimism about developments in AI have also fueled the gains. James Athey, investment director at Abrdn, said the advance toward a bull market focused on the small number of important but highly backward-looking economic readings that suggest the economy is doing well. “The broader data set shows much less strength and much more volatility and vulnerability,” he said. “But until jobs crack, I’m sure equities will choose to ignore.” Strategists are split about the path forward for stocks from here. A Morgan Stanley team led by Michael Wilson said the likelihood of Fed rate cuts in 2023 and durable growth playing out simultaneously is low and they expect a tactical correction in equities before a durable recovery and a real bull market. UBS Global Wealth Management strategists also said the risk-reward balance for stocks, especially in the US, remains unfavorable. On the flip side, Evercore ISI strategists raised their S&P 500 target as inflation easing likely signals a Fed pause. Meanwhile, frustration among bears has rarely been greater with more stocks making new 52-week lows in the S&P 500 than 52-week highs in May.  “Breadth is awful,” Athey said, referring to the limited number of stocks contributing to the rally. “There’s very narrow leadership. It doesn’t look too healthy to me.” In Europe, the Stoxx 50 is little changed while FTSE 100 outperforms peers, adding 0.6%, FTSE MIB lags, dropping 0.3%. Consumer products, tech and travel are the worst-performing sectors. The region continues to lose momentum from being the proxy for China’s reopening boom; do investors buy the dip with China looking to add stimulus? PMIs continue to slow and are at 3-month lows. Value is leading, Momentum is lagging; Defensives over Cyclicals. UKX +0.5%, SX5E -0.0%, SXXP +0.1%, DAX +0.0%. Here are some of the most notable European moves: Energy stocks were among the strongest gainers in Europe Monday as crude advanced following Saudi Arabia’s pledge to make an extra 1 million barrel-a-day supply cut in July, taking its production to the lowest level for several years. Shell rises as much as 1.6%. Shares of European telecom operators rise across the board, rebounding from a selloff on Friday when Bloomberg News reported that Amazon is planning to provide low-cost mobile phone service to Prime members in the US. Deutsche Telekom and Vodafone gain respectively as much as 3.5% and 3.4%. UBS shares gain 1.3% on Monday after the banking giant announced it expects to complete its acquisition of Credit Suisse as early as June 12. ZKB sees this as a positive development, initiating what it sees as a “protracted integration process.” Credit Suisse rises as much as 2.3%. Asos shares jump as much as 14%, the most since Jan. 12, after the Sunday Times reported that the online fast fashion retailer received a takeover approach from Turkish online retailer Trendyol in December. Indivior shares surge as much as 13%, to highest in 15 weeks, after the drugmaker announces it has reached an agreement to resolve antitrust claims brought by the Attorneys General of 41 states and the District of Columbia. Red flags that pricey luxury shares have hit a peak are piling up as conviction on the China reopening trade takes a hit. LVMH shares fall as much as 1.2% Viaplay shares fall as much as 59% to a record low after the Nordic media firm slashed its 2023 guidance, scrapped 2025 targets and said CEO Anders Jensen stepped down with immediate effect. Bollore shares fall as much as 3.7%, after Kepler Cheuvreux cut its recommendation on the French conglomerate to hold from buy, noting the stock’s recent outperformance and the simplified offer. Earlier in the session, Asian stocks were mostly positive amid momentum from Friday's post-NFP gains on Wall Street and as participants digested stronger Chinese Caixin Services and Composite PMI data. Hang Seng and Shanghai Comp. were kept afloat following the encouraging Caixin PMIs but with gains capped amid US-China frictions and after China’s Cabinet noted that the foundation for the economic recovery is not solid, while property names were also pressured despite reports that China is mulling a support package for the property sector and bolster the economy. Australia's ASX 200 was led higher by gains across nearly all sectors with early tailwinds in energy names following Saudi Arabia’s additional 1mln bpd output cut, while the RBA is seen to keep rates unchanged at tomorrow’s meeting. The Nikkei 225 climbed above 32,000 for the first time since 1990 with exporters propelled by a weaker currency. Key stock gauges in India ended with gains mirroring a board-based rally across Asian markets on Monday as investors assess prospects of a pause in rate hikes by the Federal Reserve and easing concerns over a US recession. The S&P BSE Sensex rose 0.4% to 62,787.47 in Mumbai just shy of its all-time closing high levels, while the NSE Nifty 50 Index advanced 0.3% to 18,593.85. Strong automobile sales data triggered buying in auto stocks in India with the Nifty Auto index climbing 1.3%, its best day since May 8. In FX, the Bloomberg Dollar Spot Index gained as much as 0.3%, taking gains into a second day, after last week’s jobs data added to the market’s view that the Fed will raise rates by 25 basis points next month. CAD and EUR are the strongest performers in G-10 FX, with the Canadian currency receiving some support as oil prices advance; SEK and GBP underperforms. BRL (1.1%), COP (1.1%) lead gains in EMFX, TRY (-1.1%) lags. In rates, Treasuries were cheaper across the curve, following bigger losses in core European rates with S&P 500 futures steady near Friday’s highs.  The two-year Treasury yield rises 4 basis points to 4.54%, rising toward a 2-1/2-month high of 4.64% touched just over a week ago. Yields higher by 4bp-6bp on the day with 2s5s30s fly wider by 2bp as belly underperforms; 10-year yields around 3.74% with bunds and gilts cheaper by 2bp and 1.5bp in the sector. Traders are pricing in a near 90% possibility that the Fed will hike rates to 5.5% in July; they see just the prospects of a June rise at around 30%. Elsewhere, gilts bear-flatten, Bunds bear-steepen. Peripheral spreads are mixed to Germany; Italy widens, Spain widens and Portugal tightens. In commodities, Crude oil futures remain higher by about 2% after a 4.6% advance sparked by Saudi Arabia’s output-cut pledge at weekend’s OPEC+ meeting. Spot gold falls roughly $6 to trade near $1,942/oz. US session includes factory orders data and ISM services gauge and Durable Goods/Cap Goods, while Fed speakers are in quiet period ahead of June 13-14 FOMC meeting.   Market Snapshot S&P 500 futures little changed at 4,289.00 MXAP up 0.6% to 163.41 MXAPJ up 0.2% to 514.82 Nikkei up 2.2% to 32,217.43 Topix up 1.7% to 2,219.79 Hang Seng Index up 0.8% to 19,108.50 Shanghai Composite little changed at 3,232.44 Sensex up 0.5% to 62,885.07 Australia S&P/ASX 200 up 1.0% to 7,216.27 Kospi up 0.5% to 2,615.41 STOXX Europe 600 up 0.1% to 462.66 German 10Y yield little changed at 2.36% Euro down 0.2% to $1.0689 Brent Futures up 2.5% to $78.06/bbl Gold spot down 0.3% to $1,941.52 U.S. Dollar Index up 0.24% to 104.26 Top Overnight News 1) Inflation is pushing Japan into a new era that could lift equities by spurring more households to move savings out of low-yielding bank deposits, the head of the country’s stock exchange operator has said. Hiromi Yamaji, president of the JPX group that controls the Tokyo and Osaka exchanges, said he expected many Japanese to stop sitting on so much cash — the country’s households have amassed ¥1 quadrillion ($7tn) in bank savings — and look to stock markets for better returns in response to rising living costs. FT 2) China’s defense minister attacked the US policy in the Pacific, accusing the Pentagon of stoking confrontation (and a Chinese navy ship sailed within 140 meters of a US Navy guided missile destroyer). Worth noting China will soon account for less than 50% of US imports from low-cost countries in Asia as Western firms shift supply chains out of the mainland.  London Telegraph / FT 3) China’s Caixin services PMI for May was strong, coming in at 57.1 (up from 56.4 in April and ahead of the Street’s 55.2 forecast). Also, Indonesia’s CPI for May undershot the Street, coming in at +2.66% (down from 2.83% in April and below the Street’s 2.81% forecast). RTRS 4) Ukrainian President Volodymyr Zelensky said he was now ready to launch a long-awaited counteroffensive but tempered a forecast of success with a warning: It could take some time and come at a heavy cost. “We strongly believe that we will succeed,” Zelensky said in an interview in this southern port city as his country’s military girded for what could be one of the war’s most consequential phases as it aims to retake territory occupied by Russia. WSJ 5) Banks in the US could see their capital requirements jump as much as 20% under new rules being formulated at the Fed (the rules would apply to institutions with assets >$100B, and fee-based activities, such as wealth mgmt. or interchange revenue, will be punished under the new framework). Also, Banks in the US are preparing to sell commercial property loans at a discount even when borrowers are current on their payments as firms rush to reduce their exposure to this segment of the market. WSJ / FT 6) With a debt ceiling deal freshly signed into law Saturday by President Joe Biden, the US Treasury is about to unleash a tsunami of new bonds to quickly refill its coffers. This will be yet another drain on dwindling liquidity as bank deposits are raided to pay for it — and Wall Street is warning that markets aren’t ready. BBG 7) Yesterday’s OPEC+ meeting was moderately bullish, on net, with three main developments. First, Saudi Arabia pledged to deliver an additional 1mb/d unilateral “extendible” output cut in July (bullish). Second, the voluntary cuts from the 9 OPEC+ countries are scheduled to extend until December 2024, from December 2023 previously (somewhat bullish). Third, output baselines will be redistributed in 2024 from countries struggling to reach their targets to those with ample spare capacity (somewhat bearish output effect, but bullish cohesion). GIR 8) Hedge funds accelerated selling in US Energy amid price declines last week. Last week’s notional net selling in US Energy was the largest in 10 weeks and ranks in the 97th percentile vs. the past five years. Info Tech was the most notionally net bought global sector on the Prime book for the 4th straight week. Last week’s net buying in Info Tech was the largest in 5+ months and ranks in the 92nd percentile vs. the past five years. GS PB 9) AMZN wireless story met with skepticism as firms deny involvement (Amazon, T-Mobile, and Verizon all said nothing is in the works) and analysts suggest economics/logistics don’t make sense. Barron's 10) More bank insiders are buying shares in their own companies, a vote of confidence in the industry after a crisis sparked by the collapse of four regional lenders earlier this year. The number of buyers has already jumped to 778 in the second quarter through May 26 from 524 in the first three months of the year, according to research firm VerityData, which said the surge is being driven by small and midsize banks. More purchasers stepped up even as share prices sank to multiyear lows in early May. BBG A more detailed look at global markets courtesy of Newsquawk APAC stocks were mostly positive amid momentum from Friday's post-NFP gains on Wall Street and as participants digested stronger Chinese Caixin Services and Composite PMI data. ASX 200 was led higher by gains across nearly all sectors with early tailwinds in energy names following Saudi Arabia’s additional 1mln bpd output cut, while the RBA is seen to keep rates unchanged at tomorrow’s meeting. Nikkei 225 climbed above 32,000 for the first time since 1990 with exporters propelled by a weaker currency. Hang Seng and Shanghai Comp. were kept afloat following the encouraging Caixin PMIs but with gains capped amid US-China frictions and after China’s Cabinet noted that the foundation for the economic recovery is not solid, while property names were also pressured despite reports that China is mulling a support package for the property sector and bolster the economy. Top Asian News on Friday, while the meeting was said to be candid, constructive and part of ongoing efforts to maintain open lines of communication, according to the Treasury. China is soon to account for less than half of US low-cost imports from Asia in 2023 for the first time in over a decade, according to an annual reshoring index from Kearney cited by the FT. Wuhan Commerce Bureau said initial talks have started with Disney (DIS) for the US firm to start a project in the city, according to Reuters. European equities trade flat with not much in the way of weekend newsflow to guide prices following Friday’s solid session for the region, whilst the FTSE 100 narrowly outperforms. Equity sectors are a mixed bag with Telecoms top of the leaderboard, followed closely by Energy and Real Estate, while Tech, Travel & Leisure, and Consumer Products & Services reside at the bottom. US equity futures are flat following Friday’s session of gains (ES -0.1%, NQ -0.2%, RTY +0.1%) Top European News BoE is looking to broaden reform of the deposit guarantee scheme after the collapse of SVB's UK arm highlighted the weakness of the current regime, according to FT. ECB's Vujcic said Eurozone inflation risks are tilted to the upside; wage pressures are "still very lively", according to Bloomberg. Fitch affirmed the Bank of England at AA-; Outlook Negative. S&P said France's "AA/A-1+" ratings affirmed; outlook remains negative; says tighter financial conditions and still-high core inflation will restrain France's economic activity in 2023 and 2024 FX DXY maintains a bullish momentum above 104.00 in the wake of Friday’s strong US payrolls gain which resulted in a hawkish tilt in Fed pricing. USD/JPY rebounds sharply towards 140.50 from just shy of 140.00 overnight amidst higher Treasury yields and wider spreads to JGBs after slowdowns in Japan’s services and composite PMIs. Euro extends declines against its US counterparts and against the backdrop of mostly sub-prelim or expected Eurozone services and composite PMIs. Aussie straddles 0.6600 on the eve of the RBA that could be a very close call. Yuan weakens irrespective of a firmer than forecast Chinese Caixin services PMI that boosted the composite number along with the manufacturing PMI, as China-US/Canadian/NATO tensions overshadowed the encouraging surveys. PBoC set USD/CNY mid-point at 7.0904 vs exp. 7.0918 (prev. 7.0939) Fixed Income Bunds are off worst levels having pared some losses from 134.81 amidst more mixed Eurozone macro releases including soft PMIs, PPI, Sentix readings vs a healthier-than-expected German trade balance. Gilts have slipped to a new intraday base, albeit marginal at 96.25 in recent trade and probably in recognition of minor upward revisions to the final services and composite PMIs US Treasuries remain underwater, but the curve is a bit more stable after post-NFP flattening in advance of the final PMIs, services ISM and a speech from Fed’s Mester. Commodities WTI and Brent contracts gapped higher upon the return of futures trading following the weekend OPEC+ deliberations (see below). Spot gold is subdued under USD 1,950/oz as the Dollar index remains firmer on the session – with the yellow metal finding support at its 100 DMA (1,939/oz) earlier. Base are mostly subdued but to varying degrees amid the aforementioned APAC growth concerns, although the complex has trimmed losses. Iron ore continued rising overnight. OPEC+ Meeting Saudi Arabia announced it is to cut an additional 1mln bpd of oil output for July in which its output will drop to 9mln bpd and all other OPEC+ producers agreed to extend earlier cuts through to the end of 2024. OPEC+ agreed to a new output target of 40.4mln bpd from 2024 with the output target for 2024 lowered by 1.4mln bpd and said Russia, Angola and Nigeria are to see significant production cuts in 2024, while the next OPEC+ meeting is to take place on November 26th, according to Reuters. Saudi’s Energy Minister said they are not targeting prices and that the extra voluntary cut is a precautionary measure, while they will keep the markets in suspense on whether the additional voluntary cut for July will be extended and will review the extra voluntary cuts every month. Saudi’s Energy Minister said Russia is delivering on its oil output commitments, while the UAE’s Energy Minister said there are some discrepancies in Russian production numbers and they don’t want politics involved in how they look at Russian production numbers, according to Reuters. Russian Deputy PM Novak said OPEC+ agrees total oil output cuts of 3.66mln bpd and that the oil market is more or less balanced, while he added they are seeing oil demand rising and they have the possibility of tweaking decisions. Furthermore, he said they will take decisions so that the oil market is stable and that Russia is fulfilling its obligations in full, according to Reuters. White House officials said they will continue to work with all fuel producers to ensure energy markets support US economic growth, according to Reuters. Tyler Durden Mon, 06/05/2023 - 08:19.....»»

Hong Kong Set To Become Crypto Trading Hub, Opens Exchange Licensing Ahead Of Retail Trading After years of brutal crackdowns, crypto trading is coming back to China... or at least Hong Kong for now. On Thursday, Hong Kong took a step toward becoming a cryptocurrency hub with the start of applications for licenses to run trading platforms and exchanges, Nikkei reported. Trading of cryptocurrencies in the Chinese territory has been restricted to institutional investors and other professionals since 2018, but Hong Kong's new regulations will allow retail trading as soon as the second half of 2023, which means that HK will soon emerge as the conduit by which billions in Chinese retail savings mysteriously disappear into the outside world, a function that until not too long ago was served by Macau. Officials said the city's move to welcome crypto, which comes amid global regulatory headwinds for the industry, is backed by safeguards for investors. "Hong Kong's comprehensive virtual assets regulatory framework follows the principle of 'same business, same risks, same rules' and aims to provide robust investor protection and manage key risks," said Julia Leung, CEO of the Securities and Futures Commission. "This will enable the industry to develop sustainably and support innovation." Requirements for obtaining a license include capital of at least 5 million Hong Kong dollars ($638,000), measures to combat money laundering and the appointment of experienced managers. "Operators of virtual asset trading platforms who are prepared to comply with the SFC's standards are welcome to apply for a licence," the commission said in a May 23 notice. "Those who do not plan to do so should proceed to an orderly closure of their business in Hong Kong." More than 80 companies have expressed interest in obtaining a license, authorities say. Mainland Chinese companies are particularly eager to enter the Hong Kong market, because they face a total ban on providing cryptocurrency-related services at home. A subsidiary of Chinese state-owned property developer Greenland Group plans to apply for a license, local media report. Online lender ZA Bank said on May 24 that it would partner with licensed companies to offer trading services for individuals. "We welcome the licensing guidelines issued yesterday by the Hong Kong SFC, and we are excited to offer the new investment opportunities brought by virtual assets to our users," ZA Bank CEO Ronald Iu said. In Asia, South Korea and Singapore have taken the lead in regulating the crypto market, attracting some businesses that fled the U.S. and other countries. Hong Kong was regarded as being tough on the industry after China's move to ban related services in 2021, but the city has reversed its stance. In October, Hong Kong announced a policy of promoting virtual currencies. An exchange-traded fund (ETF) tracking bitcoin listed on the Hong Kong exchange in December. "The fact that an international finance hub like Hong Kong is setting out to create and support a crypto trading environment means a boost of investor confidence in the industry," said Eddie Chou, a blockchain lecturer and fintech consultant. A cloud has hung over Hong Kong's status as an international financial hub since China imposed a national security law in 2020 that critics say erodes the city's autonomy. "Without Beijing's approval and backing, there can be no policy change in Hong Kong," an asset management executive here said. "They may intend to treat it as an exception like Macao, the only place in China where casinos are allowed, and use it as a testing ground" for crypto. That is precisely what Beijing is doing, because even in China the local elite understands that as a result of the massive Chinese capital account monetary firewall, the country needs some way to transfer some of those trillions in savings offshore. For now, Hong Kong regulators are promising a firm hand. "Our regulations will be tight," Eddie Yue, chief executive of the Hong Kong Monetary Authority, said at the Bloomberg Wealth Asia Summit in May. "We will let the industry develop and innovate. We will let them create the ecosystem here, and that actually brings a lot of excitement. But that doesn't mean light-touch regulation." Tyler Durden Fri, 06/02/2023 - 23:20.....»»

The deal to prevent the United States from defaulting on its debt will affect the White House’s plan to impose stiff taxes on cryptocurrency mining. The deal between President Biden and senior Republicans to prevent the US from defaulting on its debt will affect the White House’s plan to impose stiff taxes on cryptocurrency mining. If passed, the debt deal would block a tax rule that called for a 30% tax on the electricity Bitcoin and other crypto miners use. Crypto Mining Tax Excluded by Debt Deal President Joe Biden and Republican lawmakers have agreed to raise the US debt ceiling and avert a default. On Monday, Republican congressman Warren Davidson shared a link to the “Fiscal Responsibility Act of 2023,” a draft bill allowing the US to raise the country’s debt ceiling. The bill does not mention the proposed crypto mining tax bill, as noted by Pierre Rochard, vice president of research at Bitcoin mining firm Riot Platforms, who asked for confirmation that the energy excise tax had been ditched. “One of the victories is blocking proposed taxes,” Davidson responded. Yes, one of the victories is blocking proposed taxes. — Warren Davidson (@WarrenDavidson) May 29, 2023 The White House introduced the Digital Assets Mining Energy excise act, also known as the DAME Act, in early May, which proposed a tax on the electricity used in bitcoin and other crypto mining. The initial bill suggested a 10% tax beginning in 2024, increasing to 30% by 2026. According to the Biden administration, the proposed tax bill was intended to target cryptocurrency miners due to the negative impact their activities have on the environment. The White House said miners’ impact is high even when using clean energy as their electricity consumption “reduces the amount of clean power available for other uses, raising prices and increasing overall reliance on dirtier sources of electricity.” Additionally, the statement claimed that cryptocurrency mining does not have the same benefits as other businesses that consume similar energy rates. The White House dismissed the concern of digital assets operations moving abroad by noting that other major economies, such as China, have also imposed restrictions on the industry. The text said that the act would represent a key part of the administration’s effort to curb the damage caused by climate change and tackle increasing energy prices affecting Americans. The White House estimated the DAME Act would raise around $3.5 billion in revenue over a decade. US Debt Deal Goes to Congres Amid Impending June 5 Default Despite the efforts of Biden and McCarthy to promote the bill, they must still address the doubts of both Democrats and Republicans in Congress, who remain divided on the issue. The bill must be approved by Congress ahead of the Treasury’s projected June 5 default. To pass in the House, the bill requires at least 218 votes, with at least 111 Republicans and 107 Democrats supporting it, according to the Washington Post. McCarthy’s allies have reportedly said that the majority of Republicans are in favor of the bill. A US debt default would be bad for the global economic system because the US is the world’s largest economy and a major player in international trade and finance. A default would undermine confidence in the US financial system and the global market, leading to higher borrowing costs and potential market disruptions. Furthermore, a default could lead to a downgrade of the US credit rating, making borrowing more expensive for the government and US corporations. Higher borrowing costs in the US could also lead to global economic turmoil. US Treasury bonds are considered a safe-haven investment for many investors and are widely used as a benchmark for other investment products. A default would also significantly affect countries and companies heavily invested in the US, such as China, Japan, and Europe. It could also adversely affect emerging markets and increase volatility in financial markets, ultimately leading to a delay in economic recovery worldwide. Meanwhile, Treasuries and US stock futures have increased in hopes that Congress will pass the debt deal. On Monday, Dow futures and Nasdaq futures rose around 0.35%, with S&P 500 futures up 0.3%. This article originally appeared on The Tokenist Sponsored: Find a Qualified Financial Advisor Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now......»»

Tokyo, Japan, May 29th, 2023, Chainwire Bitcoin.com’s ecosystem token, VERSE, has been listed on Kucoin, a top-tier cryptocurrency exchange platform ... Read more Tokyo, Japan, May 29th, 2023, Chainwire Bitcoin.com’s ecosystem token, VERSE, has been listed on Kucoin, a top-tier cryptocurrency exchange platform known for being the home of crypto gems. Trading is open now, with the initial pair being VERSE/USDT. A milestone moment for Bitcoin.com, this first exchange listing for VERSE is significant because it amplifies the token’s reach and accessibility to millions of users around the globe. VERSE fuels Bitcoin.com’s ecosystem by gamifying and incentivizing onboarding and engagement. The goal is to bring the advantages of cryptocurrency to more people and to fast-track the world’s transition to a more inclusive financial system. Bitcoin.com CEO Dennis Jarvis said, “At Bitcoin.com, we believe in creating economic freedom and expanding access to opportunities by providing the tools people need to buy, sell, and use cryptocurrencies. We are proud to introduce VERSE, a token that supercharges our mission. And by listing on Kucoin, we’re making it easier than ever for people to trade VERSE and harness its potential.” By facilitating rewards and serving as a utility token, VERSE enhances users’ experiences within the Bitcoin.com ecosystem and beyond. “VERSE reduces hurdles, making the onboarding experience for newcomers seamless, fun, and rewarding,” said Corbin Fraser, Head of Financial Services at Bitcoin.com. He added, “We’re in the process of making VERSE a multichain token, which will increase its utility. This is something that exemplifies our commitment to freedom of choice, a core value that permeates everything we do.” Since its inception in 2015, Bitcoin.com has evolved from pioneer to established leader in the crypto industry, hitting the 40 million self-custody wallets milestone earlier this month. The Bitcoin.com Wallet supports over a hundred cryptoassets across Bitcoin, Ethereum, Polygon, Avalanche, and Bitcoin Cash, with more chains coming soon. By providing 24/7 support, vast educational resources, and an award-winning news portal, Bitcoin.com has proven itself as the world’s gateway to Bitcoin and beyond. Kucoin, a platform where 1 out of 4 crypto holders worldwide trade, has consistently been a preferred choice for discovering hidden gems. Its 27 million registered users across 207 countries and regions demonstrate its widespread popularity and credibility. In celebration of the VERSE listing, Kucoin is hosting a VERSE trading contest with a lucrative $40,000 prize pool. For more information about the VERSE listing and trading contest, visit Kucoin’s official website. About Bitcoin.com Bitcoin.com is committed to making Bitcoin and other cryptocurrencies accessible to everyone. From offering educational resources and timely news to providing intuitive self-custody products, Bitcoin.com empowers individuals to explore the possibilities of cryptocurrencies and the future of finance. Follow Bitcoin.com on Twitter for more information. About VERSE Launched in December 2022, VERSE is Bitcoin.com’s rewards and utility token. By incentivizing and gamifying engagement in the Bitcoin.com ecosystem, VERSE supercharges Bitcoin.com’s mission to onboard the world to crypto and accelerate the transition towards a more inclusive financial system. VERSE also powers Bitcoin.com’s decentralized exchange Verse DEX, where anyone can trade permissionlessly and earn yield by contributing to liquidity pools and with Verse Farms. Follow VERSE on Twitter and Join VERSE’s official Telegram channel for more updates and additional information. About Kucoin  Kucoin is a global cryptocurrency exchange that supports over 750 projects with 1,300+ trading pairs. Known as the “People’s Exchange,” Kucoin boasts an extensive user base, with 70% of its users hailing from Europe, the Middle East & Africa, and SEA. Recognized for its excellence, Kucoin has received accolades from TokenInsight, CoinMarketCap, Forbes Advisor, and The Ascent. Contact Head of MarketingAndrew ToddBitcoin.comandrew@bitcoin.com.....»»

"It would be nice if the US were leading this movement, but we're losing it because of our regulatory system." ARK Invest founder Cathie Wood.Photo by PATRICK T. FALLON/AFP via Getty Images The US is losing out on the bitcoin movement, according to Ark Invest's Cathie Wood. The vocal bull on bitcoin pointed to US regulators driving firms to operate in other countries. "And, very interestingly, it took another two crises within the last year to prove the concept." The US is losing its grasp over the bitcoin movement, thanks to regulators pushing major firms in the industry to operate in other countries, according to ARK Invest founder Cathie Wood."It would be nice if the US were leading this movement, but we're losing it because of our regulatory system," Wood said last week at the Fortune Most Powerful Next Gen Conference, referring to crypto firms that have begun to shift their operations outside of the US. That's largely due to US regulators, Wood said, which have begun to tighten the screws on the crypto industry after the implosion of FTX in late 2022.She pointed, for instance, to Coinbase, which recently received approval to operate in Bermuda while the firm is being investigated in the US by the Securities and Exchange Commission.Wood also said the collapse of FTX as well as regional lenders like Silicon Valley Bank and Signature Bank backed up the case for bitcoin."The reason it's adopted is, first of all, many people like the idea of a decentralized, transparent, auditable monetary system. It was born out of the 2008/2009 crisis, when people just lost all trust in financial services," she said, according to CoinDesk."And, very interestingly, it took another two crises within the last year to prove the concept. FTX failed because it was centralized, opaque, and not auditable."Wood, for her part, has scooped up large volumes of Coinbase in investment arm, Ark Invest, over the past year. The crypto firm is now the fourth largest holding in Ark's overall portfolio, with $647 million worth of shares split among its exchange traded funds.She has also been a vocal bull on bitcoin, and predicted earlier this year that the cryptocurrency could rally to $1.5 million by 2030, implying around a 5500% increase from the current price.Bitcoin traded $26,295 on Thursday, having rebounded 59% since the start of the year. Its price is still well below its all-time-high of $64,000 reached in late 2021.Read the original article on Business Insider.....»»

Crypto Calm Before The Smile By Marcel Kasumovich and Kartikey Sinha of One River Asset Management 1. Adapt or die. It’s clever, even if overused. The finite nature of life is what makes it so precious. Embracing adaptation over comfort, the joy of the struggle. Hundreds of brainy quotes are at your fingertips to give credibility to the mantra. Maya Angelou is my mom’s personal favorite: “If you don’t like something, change it. If you can’t change it, change your attitude.” There is no try in adaptation – you either do or you don’t. Crypto asset markets choose “do.” 2. Adaption is evident in natural cycles, naturally. Biodiverse ecosystems strengthen the resilience of cycles. Of course, the same is true of economic systems and financial markets. But our instincts are to resist. Intervening to stop forest fires that are disruptive to homes that probably shouldn’t be there. Intervening to guard against losses of banks that probably shouldn’t exist. Intervention leans against natural cycles, lessens diversity, and weakens resilience. 3. Intervention requires great humility. We don’t know what we don’t know. Yet, intervention is often executed with a force of certainty. If banks were not bailed out, we were certain to enter a Great Depression. The unintended consequence of intervention must be less than the social strains of soup kitchens in Central Park. Intervention centralizes debt to government balance sheets, leaving rich countries with unsustainable obligations. It brings generational fragility. 4. The crypto asset ecosystem stands in sharp contrast. It demands adaptive resilience. Take US dollar stablecoin. Total assets are roughly $130 billion today, on par with October 2021. Dollars chose to stay in the digital ecosystem despite a sharp rise in US interest rates, a crash in crypto asset markets, and the annihilation of poorly designed stablecoin. Resilience. Then, strains in the US banking system led to a rapid shift of stablecoin to USDT and away from USDC, raising Tether’s share to 46% of the Ethereum stablecoin supply. Adaptation. 5. Why has US dollar stablecoin been so durable? Its velocity demonstrates it is well designed and useful. A total of $1,952 billion stablecoin transactions settled on the Ethereum blockchain in the first quarter. Ethereum US dollar stablecoin assets averaged $95 billion over the same period. So, the entire stock of stablecoin turned over 20 times in the quarter, or roughly once every 4-5 days. And that doesn’t include off-chain transactions. It makes USD stablecoin the most efficient collateral in the global financial system. Bank runs are for banks. 6. Now, resilience also changes the nature of cycles. We know that cycles of the weather are simply defined – hot in the summer, cold in the winter. But the amplitudes and timing are highly nonlinear. No two cycles are the same. Crypto asset prices and activity have surged this year. Bitcoin was up more than 80% at its peak this year, transaction volumes have leapt to record levels, and bitcoin mining fees have garnered the third-highest share of revenue in its history. Historically, these would be signs of excess. 7. But derivative markets are clearly not flashing red. On the contrary, the signals are remarkably bland. Bitcoin’s three-month volatility expectation is near historic lows at 47%, the skew in option markets is neutral, and the cost of futures leverage is near-zero versus more than 10% annualized during past periods of rapid price gains. Surprised? It’s the benefit of no intervention and increased resilience. Last cycle’s crypto crash is bringing far more discipline to the current cycle. 8. It got us thinking – the “Royal us” in this case, including Kartikey, a member of our Digital Labs. How does bitcoin’s price and volatility adjust to the demand for leverage? We take funding rates implied by the bitcoin perpetual futures from 2018-2022, partition them into percentile ranges, and then evaluate bitcoin’s volatility. Figure 1 shows a happy smile relationship, a dream for risk managing a portfolio. There’s information content on both extremes – risk rises when the cost of leverage is extremely low and extremely high, in the boom and bust respectively. 9 . The same smile emerges with the absolute move in bitcoin price returns across different stages of the leverage cycle from 2018 to 2022 (Figure 2). But the return profile is more of a jump in the extremes. When bitcoin funding rates are in the 0-10 percentile range, the average daily bitcoin return is (1.02%), roughly seven-times the sample average. On the other extreme in the 90-100 percentile range, bitcoin’s average daily return is 2.11%. Outside of those extremes are long phases of calm, like the current one. 10. The resilience of digital asset markets ensures the previous cycle won’t be repeated. A surge in economic transactions can occur without speculative excess – we’ve already seen it this year. This is encouraging for developers as price signals are more valuable when not polluted by excess speculation. A virtuous cycle emerges. But we can’t extrapolate the calm. Extremes can be identified by funding rates and volatility markets – analytics when integrated to systematic strategies will leave any crypto asset manager smiling, just like bitcoin’s volatility curve. Tyler Durden Sun, 05/21/2023 - 19:00.....»»