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Impossible to Run Away From Cryptocurrencies Says Zimbabwe Finance Minister

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Zimbabwe’s increasingly pro-crypto finance minister, Mthuli Ncube, recently told his colleagues in government that it is now impossible to run away from cryptocurrencies. Ncube said this after revealing that some 30% of the country’s youth are now invested in cryptocurrencies.

Zimbabwe Ready to Make Concessions on Cryptos

According to a report by the Herald, Ncube also hinted that his ministry is now willing to make certain concessions on cryptocurrencies. However, unlike his recent comments in which he simply extolled cryptocurrencies, Ncube insists that these must not be treated as currencies. He explained:

But our view is that we do not want it to be a currency. Want this to be an investment class. So through the Victoria Falls Stock Exchange platform, we will try to create crypto-based products there, which are ring-fenced within the offshore zone.

By referencing the Victoria Falls Stock Exchange (VFSE) as the ideal platform for cryptocurrency transactions, Ncube is echoing sentiments that were previously expressed by Zimbabwe Stock Exchange (ZSE) boss Justin Bgoni.

As reported by Bitcoin.com News, Bgoni suggested at the time that the VFSE was open to listing cryptocurrencies. However, such listings would be subject to regulatory approval, Bgoni said.

Ministry Working on Crypto ETF

Indeed, in his remarks, while speaking at a business seminar in Dubai, Ncube appeared to suggest that this process of approving cryptocurrencies is already in the works.

“We have taken the first step already and created a sandbox, at the Reserve Bank of Zimbabwe (RBZ), where the idea and everything is being tested in a safe regulated environment where it will then migrate to this safe Victoria Falls environment,” Ncube said.

Meanwhile, the same report quotes Ncube revealing that the Ministry of Finance is working with an unidentified investor based in Dubai to create or develop a crypto index. According to the minister, such an index would eventually lead to the creation of a crypto exchange-traded fund (ETF).

Ncube added that Zimbabwe has engaged investors that are working with his ministry to create crypto ETFs.

Do you agree with Ncube’s remarks about cryptocurrencies being unstoppable? Tell us what you think in the comments section below.

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Emerging Markets, crypto etf, Cryptocurrency, investment class, Justin Bgoni, Mthuli Ncube, regulatory sandox, Reserve Bank of Zimbabwe, Victoria Falls Stock Exchange

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How The Bitcoin Market Reacted To Federal Reserve Comments On Ongoing Inflation

The bitcoin market reacted to comments by Federal Reserve Chairman Jerome Powell about the rising risk of persistently high inflation. The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox,::Listen

The bitcoin market reacted to comments by Federal Reserve Chairman Jerome Powell about the rising risk of persistently high inflation.

The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

In the Daily Dive #102, we highlighted the rising DXY (U.S. Dollar Currency Index) in 2021 and the negative impact it can have on bitcoin’s price. Today, with Federal Reserve Board Chair, Jerome Powell, talking about the rising risk of persistently high inflation in the United States and a potential accelerated taper, DXY, SPX and bitcoin markets immediately reacted. The DXY jumped over 1% with both the S&P 500 Index and bitcoin falling in tandem.

The $DXY and $SPX react to Powell’s comments regarding inflation and tapering.
The bitcoin market fell following Powell’s comments.

Over the last few days, we’re seeing rising and elevated market volatility as well with the VIX spiking over 54% last Friday, which is the fourth largest one-day percentage increase in its history. This is a cautious sign for investors to expect volatility in the near term.

$VIX saw one of its largest increases in history.
Source: Charlie Bilello, Compound

The Federal Reserve’s position is an incredibly difficult one: the choice between saving the bond market or sustaining the U.S. economy. An accelerated taper brings us closer to interest rate hikes which are the only way to help fixed-income investors saddled with real negative yielding U.S. debt, as inflation runs hot over 6%.

On the other hand, expectations of accelerated tapering with plans for interest rate hikes will drive down asset prices as extra liquidity in the system winds down and the cost of capital increases, negatively affecting current equity valuations. The SPX fell 1% in 15 minutes on yesterday’s announcement.

Impossible to Run Away From Cryptocurrencies Says Zimbabwe Finance Minister

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