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BIS: CBDC Research Gaining Steam but Widespread Issuance Years Away

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The monetary revolution will be digitized … but for the vast majority of earthlings likely not anytime soon, according to central bank digital currency (CBDC) research published Wednesday by the Bank for International Settlements (BIS).

To get there, though, 86% of the central banks surveyed in BIS’ third annual CBDC questionnaire said they were at least considering the pros and cons of issuing digital-first fiat, up from 80% last year. This year’s survey featured 65 central banks.

Even more telling was the share of central banks moving beyond mere table talk. BIS said 60% of central banks are now conducting CBDC experiments or proof of concepts. Just 42% said the same in 2019. 

Emerging market central banks are driving CBDCs forward with more gusto and purpose than their counterparts in advanced economies, citing financial inclusion and payments efficiency as top motivating forces. They’re also participating in higher numbers: seven out of eight CBDC projects are in emerging markets.

“A testament to these motives is the launch of a first ‘live’ CBDC in the Bahamas,” BIS wrote. “This front-runner is likely to be joined by others: Central banks collectively representing a fifth of the world’s population are likely to issue a general purpose CBDC in the next three years.”

Although BIS did not provide a country-by-country issuance plan breakdown, that staggering figure could only be representative of China, home to over 18% of the world population and also one of the most advanced CBDC projects. China is already one year into pilot testing its DCEP. 

Still, global CBDC adoption is likely still years away, BIS said. Countries are just not backing their heightened CBDC research with definitive plans to roll a project out. Tellingly, half of the central banks that in 2019 said they were “likely” to issue a CBDC in the short term downgraded their sentiment to “possible” or “unlikely” in the 2020 survey.

Advanced-stage projects are also hedging their go-live windows, BIS said.

Most central banks are more interested in a “retail” CBDC (consumer and day to day use) than a “wholesale” CBDC (systemic payments; transfers between banks). Some countries that once considered both models now focus their research on retail, perhaps seeing more value in digital fiat for the people than digital currency for the banks.

CBDC legality remains a largely unanswered question among the surveyed central banks. Forty-eight percent were not certain they had the authority to issue digital currency and 26% were certain they didn’t. 

Central banks continued to view cryptocurrencies as a largely irrelevant force with limited if any appeal in the 2020 survey. Strong majorities ranked cryptocurrencies as “trivial” for the domestic payments space for the third consecutive year. Notably, over 40% said crypto could have “nice” appeal in the cross-border payments space, a rare bright spot in the otherwise crypto-minimalist data. 

Central banks, and especially those in emerging markets, indicated more concern in the threat posed by stablecoins. Over two-thirds of central banks are studying the issue, BIS said.

But the respondents were nonetheless adamant that private stablecoin arrangements (read: Facebook’s libra/diem) are not a driving force behind their CBDC projects. Competition from stablecoins and cryptocurrencies fail to provide them with a compelling CBDC rationale.

“When it comes to cryptocurrencies, central banks continue to see them with no widespread use as a means of payment,” the report said.



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HODLCommunity: Holy Grail of FinTech

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Despite the substantial gains that HODLC guarantees, the project is not for gambling investors seeking the coveted “lambos on the moon” or anything else pie in the sky, it is for sensible investors who want a secure asset to preserve wealth and hedge against inflation.

The recent GameStop saga brought to the minds of many people the manipulation of markets. This standard practice, typically on the part of the exceedingly wealthy, can spell death to companies and can leave struggling retail-investors drained. The need for an alternative to preserve and grow wealth is keenly felt by many.

HODLCommunity provides a unique asset in a world where market manipulation and uncertainty are the norms. The fundamentals of HODLC not only let us predict value over time, but know the trajectory without leaving anything to chance. Predictable wealth is built within the smart contract.

The principle is simple but profound. The value increases with every transaction. Moreover, every 24 hour period also is auspicious as an upward movement in valuation is made.

HODLC grants us a holy grail in the realm of finance, as it has the best features of stablecoins and traditional cryptocurrencies, both price stability and the possibility (though in HODLC’s case, the actuality) that one’s asset will increase in value.

HODLC offers a substantial and secured return on investment, Essentially doubling in value in the first year with a 100 percent ROI, and gradually decreasing the percentage by which it increases 5% every subsequent year until reaching a 5 percent annual ROI. This will be a 30-year process that begins with a token predictably and substantially increasing in value and ending with a prime asset that maintains sensible growth.

Despite the substantial gains that HODLC guarantees, the project is not for gambling investors seeking the coveted “lambos on the moon” or anything else pie in the sky, it is for sensible investors who want a secure asset to preserve wealth and hedge against inflation.

Moreover, given its predictability, gains can be readily calculated, and at an opportune moment liquidate a portion of one’s profits without loss of capital. This is a simple but transformative principle.

As awareness of the innovation HODLCommunity has introduced to finance continues to grow, we shall see not only the success and security conferred on retail investors but an enormous benevolent impact on a multitude of industries. As HODLCommunity founder Jean-Philippe Beaudet stated, “the core feature of HODLC makes it the perfect instrument for disrupting industries such as payments, loans, financing, insurance, mutual funds, even charities.”

HODLCommunity comes as a welcome chapter in the history of finance, with all the necessary elements to transform global commerce and finance, as our world continues to move nearer to the obsolescence of fiat currencies and towards widespread adoption of digital assets.

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Author: John Ryan

John is an independent writer and an avid enthusiast of blockchain technology. He received his University education at Northern Michigan University, as a history major, where he was inducted into the Phi Beta Kappa Society for academic excellence. While in Michigan, he also trained as an athlete at the United States Olympic Education Center, where he achieved the status of a multiple-time University All-American in Greco-Roman wrestling. He has authored several plays and a collection of poetry. Some of his major areas of interests includes: Finance, Literature, and Religious Studies.



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GameStop (GME) Surges by Over 50% Now amid C-suite Shake-Up

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GameStock (GME) stock has started its way higher again, gaining over 100% yesterday.

GameStop Corp (NYSE: GME) saw its share price surging by 103% on Wednesday as investors reacted positively to the resignation of the financial chief officer of the company. The shares also took another 83% surge in the after-hours trade of Wednesday according to the available data. The investors proceeded to push the price of the premarket trade on Thursday with a 44% surge. As the trading is going on today, GME stock is rising by 51% now.

It is said that investors and traders are hoping for a resurgence amid the expected resignation of the financial Chief Officer Jim Bell. It was disclosed that the decision was forced by the board and Ryan Cohen, a GameStop Corp investor and the co-founder of Chewy, an online pet and food retailer. This is expected to be done on March 26.

In a filing with the Securities and Exchange Commission (SEC), the company denied all allegations of forcing Bell out due to a disagreement on something related to the company’s operation. They stated emphatically that the resignation has nothing to do with contention relating to GameStop’s policies, operation, or practices which include accounting principles and practices. This is contrary to the reports that Cohen spearheaded an attack to get him out of the company to execute the transition online.

Cohen owns over 12% of the stocks of GameStop Corp through his company RC Ventures. Somewhere in November 2020, Cohen allegedly wrote a letter to the board of GameStop criticizing the executive team to force them to build a perfect e-commerce platform. In the letter, he stated that GameStop (GME) needs to evolve into a technological company that delights investors. Not just that, it should also deliver a top-notch digital experience instead of priding itself in being just a video retailer that only focuses on a brick-and-mortar footprint. Bell was the first casualty of Cohen’s leadership shakeup.

Jeffery Equity Thinks Bell Have No Issue with GameStop (GME)

Jefferies Equity analyst, Stephanie Wissink in a statement to the client’s acknowledged the effort of Bell during his tenure in the administrative setup of the company. It can be recalled that there was a sharp fall in sales during the late stages of the final hardware cycles. During that period, Mr. Bell led a series of actions that helped to protect the GME equity.

Wissink believes that the expected resignation of Bell was mutual, none Immediate, and not a product of misunderstandings or disagreement between him and the board as activist settlement mostly follows leadership changes. It was also disclosed that instead of looking for a CFO replacement with a retail background, the company will consider someone with a tech background as their primary focus is on e-commerce growth.

Bell refused to comment on the reports of his resignation. Currently, the company has consulted an executive search firm to find a Financial Chief who has the ability and the qualification to drive the company to its expected transformation.

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Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.



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Nash: Bridging Gap between Fiat and Crypto

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Nash Link is a solution for merchants to accept cryptocurrency without setting up a blockchain wallet.

Nash specializes in providing the best fiat/crypto gateway services for both retail and business customers, combining the lowest prices and fees with high-security wallets. This exchange service is fully licensed to operate in Europe.

For BTC, ETH, NEO and USDC, Nash offers 0% fees. This is possible because Nash operates its own crypto-crypto exchange. Nash’s unique Layer-2 exchange provides the same performance as centralized exchanges without taking custody of funds.

For other crypto assets, tradeable on Layer 1 user wallets, Nash charges just 1% fees, with no hidden slippage fees.

What’s more, Nash provides the safest software wallet by using secure multi-party computation (MPC) technology. MPC ensures a user’s full private key is never used to sign transactions and allows for security policies like address whitelists. Nash never has control over user funds.

On the business side, Nash offers its fiat gateway services as a white-label solution for third parties. Fees remain as low as 1%, with no tricks like huge asset mark-ups. Nash is a highly competitive solution for projects seeking a licensed fiat gateway for their platform and token.

Nash Link is a solution for merchants to accept cryptocurrency without setting up a blockchain wallet. Nash pays merchants the exact fiat price they set in their preferred national currency (€, £ or $) with 0% fees, managing risk around price volatility This is also possible thanks to Nash’s Layer-2 exchange.

In 2021, Nash will expand into digital banking services. High-interest DeFi-staking products will go live in Q2. In Q3, Nash will offer national currency checking accounts (with IBANs) on its platform. These will enable an even simpler savings product where users can easily deposit cash and lock it in a DeFi-powered crypto savings account. With a debit card arriving in Q4, Nash will seamlessly integrate traditional and crypto finance by the end of the year.

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