In this week’s update on the cryptocurrency market, both Bitcoin and Ethereum saw slight price increases, indicated by green candles on the charts. These positive trends can be attributed to the growing global adoption of cryptocurrencies. Read on to learn more about the latest developments in the world of digital currencies.
Title 1: Bitcoin and Ethereum See Modest Growth, Stellar Surges 10% in a Week
Bitcoin (BTC) and Ethereum (ETH) started the weekend with slightly higher prices compared to seven days ago, indicating modest growth. BTC is currently trading at $25,815, reflecting a 0.6% increase over the week, while ETH grew by 0.8% to reach $1,630. Other leading cryptocurrencies also saw similar small gains. However, there were no significant changes in the prices of the top thirty cryptocurrencies by market capitalization, except for Stellar (XLM). XLM holders experienced a 10% increase in their holdings, and the token is now valued at $0.124846. The surge in Stellar’s price can be attributed to a tweet from the Stellar team, which hinted at an upcoming exciting development in the next 10 days.
Title 2: Blockchain Gaining Ground in Traditional Financial Sectors, European Central Bank Criticizes Stablecoins
This week witnessed a resurgence of adoption announcements in the crypto space, although there were no notable advancements in crypto-related policies in Washington. On Monday, the London Stock Exchange Group (LSEG) made an announcement regarding the use of blockchain technology to establish an exchange that offers tokenized versions of traditional financial assets. LSEG is currently engaged in discussions with various regulatory bodies, including the UK government and HM Treasury. Additionally, Fabio Panetta, an executive board member of the European Central Bank, voiced his concerns about stablecoins issued by private companies like PayPal. He highlighted that such stablecoins lack incentives to limit their adoption or the range of services they provide, as their objective is to expand their customer base and gain market share.
Furthermore, Panetta expressed his support for the proposed European central bank digital currency (CBDC), the digital euro. He emphasized that the digital euro would address orderly adjustments in the financial sector while offering a platform for payment service providers to innovate across the entire euro area.
Other notable developments include a partnership between Hana Financial Group’s KEB Hana Bank and crypto custodian BitGo, scheduled for late 2024. This collaboration signifies a major connection between a prominent domestic financial conglomerate and the crypto industry. In addition, Visa, a crypto-friendly payments giant, expanded its settlement options by including USDC on the Solana blockchain. Visa also revealed its collaboration with merchant acquirers Worldpay and Nuvei, enabling them to settle transactions using USDC instead of fiat currencies.
The Financial Accounting Standards Board (FASB) unanimously voted on Wednesday to change how companies disclose their cryptocurrency holdings, aiming to enhance transparency in the trade. These new rules will take effect in 2025. Two influential financial regulators, the International Monetary Fund (IMF) and the Financial Stability Board (FSB), released a joint white paper on Thursday that outlines their coordinated plans to establish comprehensive policies and regulations for crypto-assets. While the paper acknowledges that crypto-assets do not currently pose a risk to the financial system, the authors argue that widespread adoption could undermine the effectiveness of monetary policies. They recommend measures to safeguard monetary sovereignty, strengthen monetary policy frameworks, manage capital flow volatility, and enforce clear tax treatments for crypto-assets to mitigate risks.
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