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Cryptocurrency discussed by US treasury, financial industry

The U.S. Treasury Department met with a number of industry participants, for quiz. That was about the risks and benefits posed by stablecoins. Washington policymakers are alarmed at the rapidly expanding cryptocurrency market. The record exceeded $2 trillion in April. The market cap of stablecoins stood at roughly $125 billion. This is according to the industry data site CoinMarketCap.

U.S. financial regulators are working to understand the risks and opportunities of the cryptocurrencies. They said that they will report all the issues in the upcoming months. In July, Treasury Secretary Janet Yellen said that the government must move quickly to establish a regulatory framework for stablecoins. Treasury officials after meeting with financial industry executives, will discuss about the potential stablecoin regulation. Officials asked whether stablecoins would require direct oversight and also discussed how regulators should try to mitigate the risks. This also includes, whether major stablecoins should be backed by traditional assets.

About the structure of the stablecoins, usage, sufficiency of the framework, safety and other soundness issues were asked to the officials. Treasury officials also met with a group of banks and credit unions. That also involved to discuss similar issues. They are gathering further information. The information gathered from this meeting is likely to help shape a broad Treasury report on stablecoins. Treasury spokesman John Rizzo stated that the department is examining potential benefits and risks of stablecoins for users, markets, or the financial system. He also added that this work continues, and the Treasury Department is meeting with a broad range of stakeholders, including consumer advocates, members of Congress and market participants.

The rise in privately-operated currencies could undermine their control of the financial and monetary systems, increase systemic risks, promote financial crime, and hurt investors. The U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Reserve and the Office of the Comptroller of the Currency are also working on cryptocurrency projects.


Financial service providers falling short

PA Consulting (PA) has published new global research. That is revealing an overwhelming majority of people expect sustainable financial services to become the norm (93%). According to the research, consumers are currently facing a critical knowledge gap. This should serve as a wake-up call to financial services providers.

PA surveyed 3,500 consumers globally. Also, consumers of all age groups and geographies are looking to live, shop, and bank more sustainably. Most consumers do not realise how much of an impact their financial decisions can have on sustainability. A lack of education (57%), the research revealed that pricing (62%); trust (57%); availability (56%) and accessibility (55%) are key barriers to adoption of sustainable finance products. Financial service firms must urgently address gaps in knowledge and consumer trust to drive adoption. Mark Lancelott, sustainability expert at PA Consulting, says that their survey reveals a worrying gap between consumers’ expectations of their financial services providers and their confidence in, and understanding of, the products currently available to them.

Consumers don’t realise how big an impact their financial choices can have on their ambitions. Jason Hill, financial services expert at PA Consulting, added that the pressures to meet the challenge of making sustainable finance mainstream by 2025 will come not just from consumer demand. There will be new non-financial reporting requirements and rules to prevent green-washing coming into force imminently.

Their research highlights the pent-up demand for financial products and services. Failing to meet expectations will compromise customer retention. There are three core initiatives, such as build credibility, educate, and innovate. It will take investment and ingenuity, but it is critical the industry pivots, now.

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Eightcap Launches Impressive Award-Winning Crypto Derivatives Offering with Ultra-Low Spreads

Eightcap, a multi-award-winning CFD broker, has announced the launch of over 250 Cryptocurrency derivatives, allowing its clients to diversify their crypto portfolio via the MT4 and MT5 platforms. This new launch positions the broker as the new home of crypto derivatives.

Not only has Eightcap’s latest crypto launch surpassed what other derivative providers are currently offering, but the broker has recently been recognised as the Best Crypto Broker at the AtoZ Markets annual awards 2021, beating the likes of Robinhood.

The launch has been a much-awaited solution to the current struggles crypto derivative traders face at exchanges and brokers. For example, the reduction of withdrawal limits due to regulatory issues has meant crypto derivative traders have struggled to access their funds. With Eightcap, clients will be able to buy or sell a wide range of Cryptocurrency CFDs, including crypto-crosses and crypto indices. Its clients will also have multiple funding options and be able to make swift withdrawals.

Opening an account with the broker is a seamless and straightforward process and can be done in three easy steps. Once the crypto derivatives trader has verified their account, they can fund their account via BTC, Tether, PayPal, Skrill, Neteller, Credit/Debit Card, Bank Wire Transfer, and more.

“Our vision at Eightcap is to provide a new home for Crypto derivative traders by providing an unparalleled offering that includes the largest crypto derivative library paired with ultra-low spreads and fast withdrawal options,” said Joel Murphy, CEO, Eightcap. “The regulatory issues crypto exchanges such as Binance are facing means traders are left with unnecessary worries about their funds and if they can withdraw them. With us, Crypto derivative traders can have a seamless experience from the moment they open an account to when they want to withdraw their funds.”

What makes this offering even more attractive is the broker’s competitively low spreads on over 250+ crypto derivatives. For example, crypto derivative traders can start trading coins such as Bitcoin from 12 p/coin, Ether from 0.45 p/coin, Cardano from 0.004 p/coin and Dogecoin from 0.0002 p/coin.

Marcus Fetherston, Director of Operations at Eightcap, added, “The Eightcap offering focuses solely on creating regulated leveraged derivative trading opportunities for Cryptocurrency traders, that offers more security than traditional offshore exchange platforms. We are thrilled to provide a solution that meets the needs of crypto derivative traders so that they can gain the best possible trading experience.”

Crypto derivative traders currently with other Crypto exchanges and brokers have access to a limited range of Crypto derivatives with wide spreads. When switching to Eightcap, Crypto derivative traders will choose from the most extensive Cryptocurrency offering, experience tight spreads, and deposit and withdraw with ease, with a regulated broker.

Retail traders can rest assured that they are trading with a reputable broker. Eightcap has been operating since it was founded in Melbourne, Australia, in 2009. The broker offers its clients access to over 400 financial instruments across Forex, Indices, Commodities and Cryptocurrency CFDs. This year Eightcap has launched several new tools and products and, as a result, has been awarded Best Forex Educational Resources – Global and the Best Trading Support in Europe.

About Eightcap

Eightcap is an online financial trading company based in Melbourne, Australia. Eightcap is regulated by the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CYSEC) and the Securities Commission of The Bahamas (SCB). The rapidly growing broker provides online Forex and CFD trading solutions via the award-winning MT4 and MT5 trading platforms. Supported with competitive pricing, outstanding client support, and superior execution technology, Eightcap offers trading to retail and institutional clients across Forex, Indices, Commodities, and Shares markets.

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Cryptoization threatens financial stability

The International Monetary Fund said that the advent of digital currencies in emerging markets could spark cryptoization of local economies. This is upsetting financial stability. Bitcoin and its kin have soared in price and popularity over the last year. This can be seen in economies such as Vietnam, India and Pakistan. U.S. blockchain researcher Chainalysis summarized this.

Cryptocurrencies offer a cheaper and quicker way of sending money across borders. Digital tokens such as stablecoins helps in protecting the savings from high fluctuations in local currencies. El Salvador became the first country in the world to adopt bitcoin as legal tender. This happened in last September, and that too because of the backers. They tipped the experiment to lower costs for billions of dollars of remittances, which were sent to the Central American nation. The IMF said that unsound macroeconomic policies and inefficient payment systems are among the drivers of cryptocurrency adoption.

The exact level of adoption of crypto in emerging economies was hard to gauge. Low credibility of central banks and weak domestic banking systems also contribute to growing crypto use. Dollarization is where a foreign currency is used instead of a domestic currency. The instability of a domestic currency is the driver of this process. Wide adoption of stablecoins could also pose significant challenges. This is by reinforcing existing dollarization forces as per the IMF statement. It mentioned that the dollarization can impede central banks’ effective implementation of monetary policy. This also leads to financial stability risks through currency mismatches. The IMF added that the Cryptoization could also become a threat to fiscal policy.

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