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Cryptocurrency roundup: bitcoin continues to slide as Lords say no need for a digital pound

Cryptocurrency roundup: bitcoin continues to slide as Lords say no need for a digital pound
Written by publishing team

Bitcoin extended its decline this week and fell below $40,000 for the first time since September 2021, as many cryptocurrencies tumbled amid “risk-off” sentiment triggered by the more hawkish Federal Reserve.

The week was full of developments in this sector. The House of Lords has suggested that Britain does not need a central bank digital currency to US television as Kim Kardashian faces a lawsuit over the issue of cryptocurrency “pumping and dumping”.

Here are the most important news that caught our attention.

The House of Lords says Britain does not need a digital pound

The House of Lords – the second chamber of the UK parliament – said this week that there was no merit in the Bank of England’s efforts to develop the digital pound because it believed concerns about financial stability and protection of privacy outweighed the potential benefits that could accrue in sterling.

Disturbed by the growth in digital currencies in 2021, the Bank of England is one of several central banks around the world, including the European Central Bank and the People’s Bank of China, that are exploring the possibility of launching a central bank digital currency (CBDC). Central Bank Digital Currency is a digital form of a country’s fiat currency. Unlike traditional money, it is not in physical form.

But the Lords report complicates Britain’s ambitions for a central bank digital currency. “The introduction of a central bank digital currency will have far-reaching consequences for households, businesses and the monetary system,” said Michael Forsyth, who sits in the House of Lords as Lord Forsyth of Drumlin and chair of the House of Lords Economic Affairs Committee.

There are two main security risks posed by a CBDC, Lords says. The first is the risk that individual accounts will be compromised by taking advantage of vulnerabilities in cybersecurity, and there is the risk of a central ledger being hacked by hostile and non-state actors.

The report also noted that digital central bank currencies would infringe on people’s privacy as it would give the state greater control over people’s financial decisions.

However, the committee was not all pessimistic about the digital pound. She said the issue of the digital pound could change in the future and suggested that the government and the Bank of England take action “to shape global standards commensurate with UK values ​​and interests, for example in relation to privacy, security and operational standards”.

China plans to deploy infrastructure to support NFTs

China may have banned cryptocurrencies last year, but that didn’t stop it from moving away from non-fungible tokens (NFTs).

The state-backed Blockchain Services Network (BSN) in China plans to launch infrastructure at the end of the month that will support non-fungible tokens, the South China Morning Post reports. He Yifan, CEO of technical support company Red Date Technology, the company behind the launch of the NFT infrastructure, told the newspaper that the NFT market will not face any legal problems as long as the sector distances itself from cryptocurrencies.

The infrastructure, called the BSN-Distributed Digital Certificate (BSN-DDC), provides APIs to both individuals and businesses and paves the way for them to design their own user portals or applications to manage NFTs.

The Chinese yuan is the only currency that can be used to make purchases and pay service fees.

Red Date Technology announced in October last year that it would launch its infrastructure in China by the end of January.

China took drastic measures last year including labeling all crypto transactions illegal and banning cryptocurrency mining.

NFTs are encrypted tokens – much like cryptocurrency – that are registered on the blockchain and can be used to prove the authenticity, ownership and provenance of anything – physical or immaterial – such as artwork or collectibles.

2021 was a record year for NFTs, with nearly $41 billion spent on them, according to an estimate by blockchain analysis firm Chainalysis.

Kim Kardashian faces lawsuit over ‘injection and dump scheme’ for cryptocurrency

Media star, socialite and entrepreneur Kim Kardashian has been sued by cryptocurrency speculators for her alleged role in promoting the cryptocurrency EthereumMax, which eventually lost 98% of its value, according to a collective complaint. Other accused include boxer Floyd Mayweather Jr and basketball player Paul Pierce, according to the BBC.

However, do not be fooled by the name of the cryptocurrency; It has nothing to do with ether, the second largest cryptocurrency in the world. The lawsuit likened the association of the name EthereumMax to ethereum as “akin to marketing a restaurant in the name of ‘McDonald’sMax’ when it has no affiliation with McDonald’s other than the cognate name and the fact that the two companies sell food products.”

The legal action claims that the cryptocurrency is running a “pump and dump scheme,” in which the price of an asset is artificially inflated through misleading or excessively bullish marketing and then sold off once it is high enough.

Kardashian posted an ad on Instagram promoting the cryptocurrency to her 250 million followers.

The class action complaint was filed on behalf of investors who purchased EthereumMax between May 14 and June 27, 2021.

markets

Here’s what happened to five of the largest cryptocurrencies by market capitalization – according to data collected by Coinmarketcap – in the past seven days:

  • Bitcoin fell 0.8% to $42,029.
  • Ether fell 1.2 percent to $3,206.
  • Binance Coin rose 4.4% to $476.
  • The rope rose three points to $1.00.
  • Solana stock rose 2% to $144.

What you need to pay attention to

Cryptocurrency may have started 2022 on a slow note, but Bank of America thinks it’s worth looking for Solana, which is largely expected to go beyond the ether to become a “digital asset ecosystem visa.”

“Its ability to provide high throughput, low cost, and ease of use creates a blockchain optimized for consumer use cases such as micropayments, DeFi, NFTs, decentralized networks (Web3) and gaming,” said bank digital strategist Alkesh Shah as reported in Forbes.

Solana’s rate increased by about 4300% last year.

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