Decreasing Faith in Conventional Monetary System to Fuel Gold and Crypto Adoption: Keiser Report

… is looming economic slowdown which according to many will wipe out older practices in the financial technology domain including the dominance of …

World over today the system of a monetary system based on fiat currencies is under severe pressure which people increasingly losing faith in the central banks and regulatory authorities. One of the reasons behind this situation is looming economic slowdown which according to many will wipe out older practices in the financial technology domain including the dominance of fiat currencies and central banks. The writing might not be very clear on the wall at this point but, experts agree that if this economic slowdown intensifies, we might reach a condition where gold and cryptocurrencies will slowly overtake the conventional monetary system. All these observations were part of the conversation that Russian International Television Network (RT) had with Mark Valek, an expert having expertise in the field of the global monetary system.

Crumbling Economic System

Elaborating his point, Valek emphasized that today the situation related to interest rates and yields are very disappointing – so much so that many have predicted that it is the end of the road for these two important aspects of a conventional monetary system. Now, most of the central banks and government bodies are trying to reflate the system by offering various incentives and bailout packages for different segments of industries. This new system of reflation, according to the Valek, will be based on the gold and cryptocurrency rather than underpinned by a conventional monetary system with fiat currencies at its heart.

The people today have started questioning the feasibility of system based on fiat currency and it will be wrong on our part to outrightly reject new technological progression which is happening in the monetary field in the specific form of cryptocurrency and blockchain technology. Valek contended that both gold and cryptocurrency are going to provide the next series of impetus to growth to countries and industries. He also opined that one of the primary reasons behind the growing popularity of cryptocurrencies is a lack of trust that people today have in the conventional monetary system. This observation is especially true for the younger generation where individuals are embracing cryptocurrencies with more confidence than other segments in the society. People in the younger bracket of age are buying Bitcoin in the hope that even is the conventional monetary system collapse at their time of retirement they will have some Bitcoin to ensure their living and sustainability in society.

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Tether Announces Its Future Plans to Launch Two New Stablecoins for Users

Zhao Dong, the Bitfinex shareholder, stated in an interaction that, its sister firm, Tether, is working religiously to come up with a trading option that …

Tether, the popular crypto-fiat hybrid stablecoin firm, is planning to come in the limelight of the financial sphere, with the launch of two new crypto assets.

According to the news, one coin of the controversial crypto firm will be secured with precious and lucrative commodities like gold and crude oil, while the other asset will be pegged to Renminbi, the official currency of the People’s Republic of China.

Zhao Dong, the Bitfinex shareholder, stated in an interaction that, its sister firm, Tether, is working religiously to come up with a trading option that would reduce the risk factor involved in the creation of stablecoins, that are solely secured in the ratio of 1:1 by fiat currency in the banks.

Mr. Dong also denied the reports which claimed that USDT is not fully secured by the US Dollar. Tether, gained a lot of negative popularity from the financial enthusiasts, when the rumors concerning its currency’s reserves, flooded the block.

Dong said,

Tether is fully backed by reserves, out of 4 billion existing USDT about 3.35 billion are now in securities, and 650 million are being lent to Bitfinex. Bitfinex has been raising 1 billion with its LEO token, IEO and could easily pay back Tether any time (as a matter of fact it already paid 100 million last month) … Even if you don’t calculate this 650 million as reserves, the total amount backed by USD is 83.75% (3,350/4000) and not 72% as fake news are reporting.

Tether launching the Renminbi-secured crypto coin gained a lot of attention from the people as it came just after the decision of China launching its digital asset in the market.

China’s cryptocurrency will be available for users and companies through a mobile wallet app. Also, it will allow the exchange of the digital coin for Chinese Yuan instantly.

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Stablecoin Says It Tackles Flaws of Rivals Pegged to Fiat Currencies

Stablecoin Says It Tackles Flaws of Rivals Pegged to Fiat Currencies … It is designed to offer an alternative to rival coins tied to the United States dollar …

A stablecoin provider says it shields consumers against daily market volatility in cryptocurrencies — preserving their purchasing power, protecting them against inflation and delivering long-term price certainty.

Anchor says its two-token, algorithmic stablecoin is pegged to global economic growth. It is designed to offer an alternative to rival coins tied to the United States dollar and other fiat currencies, which can still suffer a weakened performance, and take a hit during recessions and market turbulence.

The peg used by Anchor is known as the Monetary Measurement Unit, which it describes as a “non-flationary financial index representing the real growth of the global economy.” The algorithm uses the latest macroeconomic data — including GDP from more than 190 countries, as well as forex indicators and premium sovereign bond yields from a “basket of 10 of the world’s strongest economies” — to create “a reliable financial standard and measure of value.”

While Anchor Tokens (ANCT) are primarily used for making payments, Dock Tokens (DOCT) are designed to ensure that ANCT remains stable and sufficiently pegged to the Monetary Measurement Unit — irrespective of external factors. The supply of ANCT is regulated by contraction and expansion mechanisms that see internal systems programmatically buy and sell tokens — as well as burn and mint coins — to achieve equilibrium.

ANCT listing unveiled

On Aug. 26, Anchor announced that ANCT had become available for trading after being listed on the Liquid exchange. ANCT was worth about $0.79 at the time of launch, with trading pairs for Bitcoin, Ethereum and XRP also available.

Daniel Popa, the CEO and founder of Anchor, says this marks the first time that an algorithmic stablecoin pegged to the global economy has become available for consumers to buy, trade and sell. He added that the company is committed to transparency and regulatory compliance — and delivering an easy on-ramp from fiat to crypto.

On Sept. 3, IDEX, a leading decentralized exchange for trading ERC-20 tokens, announced it will list Anchor (ANCT) by the middle of the month.

IDEX CEO Alex Wearn said: “As an exchange committed to providing traders with the best experience possible, we always aim to add high-quality projects. Anchor’s algorithmic stablecoin represents a unique approach to addressing the need for price-stable crypto assets. We’re thrilled to offer our traders the opportunity to trade the Anchor stablecoin via our platform.”

“Given the uncertainty plaguing the world’s fiat-driven economies, Anchor is providing an alternative to fiat-pegged stablecoins and offering crypto traders, businesses, organizations, and individuals long-term price stability, preservation of purchasing power, and protection against inflation while hedging against market volatility,” Anchor’s Popa adds.

Anchor is available here

According to Popa, the need for a truly stable cryptocurrency has never been so great. The worsening state of relations between the U.S. and China in an increasingly bitter trade war has prompted increasing numbers of consumers to turn to cryptocurrencies as traditional markets take a beating.

In its white paper, Anchor also points out an inherent flaw in pegging stablecoins to dollars, euros and pounds — citing research that suggests the U.S. dollar has lost more than 55% of its purchasing power over the past 25 years, with the euro losing 44% and sterling tumbling by 51%.

A new wallet

A beta version of the company’s eponymous Anchor Wallet was also recently launched. Described as a secure and stable store of value, it enables crypto to be transferred with ease to any Ethereum wallet address. The software also enables ANCT to be purchased with any fiat currency, as well as with BTC, ETH, USDT and USDC. The company says it is particularly keen to hear from crypto enthusiasts who are willing to offer feedback and enhance the user experience.

These milestones — in addition to other project developments in the pipeline — are set to be celebrated at a networking event and panel discussion co-hosted with crypto influencer and host of the Evolvement Podcast Michael Nye on the sidelines of Invest: Asia 2019 in Singapore on Sept. 12. Crypto traders, investors and exchanges — along with journalists and influencers — are being invited to attend.

Learn more about Anchor

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

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Argentina Imposes Capital Controls; Strong Case For Bitcoin Adoption

The government of Argentina has imposed capital controls on its citizens in a response to growing financial issues for the country. The South American …
argentina capital control bitcoin adoptionBreaking News


Matthew Hrones| Sep 01, 2019 | 17:07

The government of Argentina has imposed capital controls on its citizens in a response to growing financial issues for the country. The South American country has limited dollar purchases to only $10k per month after $3 billion was drained out of their foreign currency reserves on Thursday and Friday alone. Is it time to switch to Bitcoin?

Argentina On Brink of Default

Argentina’s national currency, the peso, has been in free fall the past few weeks as the government attempts to pay off their short term debts. The peso is down over 25% in the last month alone. Interest rates spiked heavily as the Argentinian central bank tried to control their debt, making the decision Wednesday to delay payments on the $7 billion of debt this year.

argentina bitcoin

The decision comes from President Mauricio, who ran on the promise to get rid of state intervention in the economy. He is now doubling back on his ideals by imposing currency controls. The current political landscape in Argentina is suggesting Mauricio and his party will lose power in the upcoming October election. This fact is scaring many investors in the country.

The opposition has been calling for currency controls, claiming that the government was in a “virtual default.” The reserves of the central bank fell nearly $12 billion due to political uncertainty

Bitcoin as a safe-haven

One of Bitcoin’s most attractive aspects is the fact that it isn’t controlled by any one party. Traditional fiat currencies are controlled by the state, allowing them full control over the country’s monetary policy. They can adjust inflation rates, change interest rates, and, in this case specifically, implement currency controls to tell their citizens what they can or can’t do with their money.

Argentina bitcoin activity rising

If the peso continues to drop, we may see another fiat currency undergo hyperinflation. The citizens will continue to lose confidence in their state currency and look for other alternatives. And if these restrictions stay in place or get worse, the dollar will not be an option.

Bitcoin and other cryptocurrencies might be the safe haven the Argentinian people need as they’re faced with this economic uncertainty. A plummeting currency won’t be accepted by very many people as there’s no guarantee that it’ll be worth anything the next day. Bitcoin could fill the void as people face more and more difficulties trying to secure their wealth.

What do you think about Argentina’s new policy? Could Bitcoin help its citizens? Let us know in the comments below!

Images courtesy of Shutterstock, Bitcoinist Media Library

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Bank of England Governor Recommends Replacing Dollar With ‘Libra-Like’ Digital Currency

The BOE Governor’s proposal would replace the U.S. dollar as the world’s reserve currency with a digital alternative. While it was unclear if Carney …

Bank of England Governor Mark Carney has made a radical recommendation for central banks that the U.S. dollar be replaced with a Libra-like digital reserve currency. 

Replacing the Dollar

Speaking at the Federal Reserve’s annual Jackson Hole Symposium on Aug. 23, Carney called for a dramatic shift in global monetary policy that would see central banks taking a greater interest in digital currencies such as Facebook’s forthcoming libra. 

The BOE Governor’s proposal would replace the U.S. dollar as the world’s reserve currency with a digital alternative. While it was unclear if Carney was actually suggesting that libra could be used to fill the void, his intent was to spur interest in a fiat alternative for global reserves. 

Carney argued that proactively replacing the dollar with a digital coin substitute would be preferable to allowing another national currency usurp its status–such as the Chinese renminbi. 

He pointed to the global economic uncertainty in part being generated by deteriorating U.S. trade relations, 

The combination of heightened economic policy uncertainty, outright protectionism and concerns that further, negative shocks could not be adequately offset because of limited policy space is exacerbating the disinflationary bias in the global economy.

He continued, 

When change comes, it shouldn’t be to swap one currency hegemon for another. Any unipolar system is unsuited to a multi-polar world. We would do well to think through every opportunity, including those presented by new technologies, to create a more balanced and effective system.

Cryptocurrencies Gaining Prominence

The introduction of a non-fiat currency could have the effect of devaluing the dollar, and most national currencies, which could be one way for central banks to introduce inflation to erode away the record levels of debt accumulating globally. 

Some have speculated that an alternative asset such as gold could be used as an intermediate. However Carney, who announced several months ago he would be stepping down as Governor of the BOE, has shown a route to fiat alternatives which includes the creation of digital currencies.

He lauded the technology for its efficiency in payments and cross-border transactions, 

The most high profile of these has been Libra – a new payments infrastructure based on an international stablecoin fully backed by reserve assets in a basket of currencies including the US dollar, the euro, and sterling. It could be exchanged between users on messaging platforms and with participating retailers.

While Carney’s suggestion to replace the U.S. dollar is one of the most radical proposals yet, it does give insight into the global trend in central banks to pursue digital currencies as an alternative to their outdated fiat counterparts. 

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