Venezuela tested keeping cryptocurrencies in the bank

Venezuela’s central bank conducts many tests to see if it can keep cryptocurrencies in the treasury, while Venezuela’s largest oil company wants to pay suppliers with bitcoin and ethereum.

According to Bloomberg, a source said it was an effort at the request of Petroleos de Venezuela (PDVSA), a state-owned oil and natural gas company. PDVSA is seeking to send bitcoin and ethereum to the central bank and wants the monetary authority to pay its suppliers in cryptocurrency.

In addition, Venezuelan central bank members also studied the proposal to allow cryptocurrencies to be included in international reserves. The international reserves of the South American nation are near the lowest level in three decades, at US $ 7.9 billion.

The sanctions imposed by the US on the regime of Venezuelan President Nicolas Maduro largely isolated Venezuela from the international financial system, exacerbating one of the world’s most severe economic crises, forcing gender. The organization must use skillful methods to transfer money.

Continued use of cryptocurrencies after a failed private cryptocurrency launch shows how desperate Venezuela is in finding a way to circumvent sanctions.

It’s unclear why PDVSA owns bitcoin and ethereum, and it’s unclear how much cryptocurrency the company holds. Oil producers have struggled to get customers to pay through regular channels because many large banks are reluctant to do business with a punitive entity.

Last month, the company received most of the $ 700 million payment in yuan after parties had difficulty finding financial institutions to facilitate transactions.

PDVSA may be hesitant to sell the cryptocurrencies they currently have on the open market as this requires businesses to register with an exchange and be tested. Therefore, it wants the central bank, where officials are less likely to be exposed to potential bans, to use cryptocurrencies to pay debt to the parties it owes.

Bitcoin and ethereum use decentralized, online ledgers called blockchains to verify and record transactions. In some cases, this practice allows for relatively anonymous transfers without intermediaries. Very few banks involve cryptocurrencies because of money laundering regulations and many other legal compliance issues.

As of early morning 27.9, the price of bitcoin was 7,960 USD while ethereum reached 160.5 USD, according to Coinmarketcap.

For Venezuela, in order to protect itself from sanctions, the government considers switching to Russia’s international payment messaging system, created to replace the Inter-bank Telecommunications Association and the national finance. (SWIFT) that most financial institutions are using.

Facebook’s “seismic” virtual currency

Facebook, on June 18, said it would release the Libra virtual currency, scheduled for official trading from early 2020. Described as a global financial-monetary infrastructure, Libra was affirmed by Facebook’s leader “not created for the purpose of replacing major central banks”. However, this currency is evaluated by analysts to create a global seismic in the financial industry.

With more than 2.4 billion Facebook users every month, Libra has the ability to change the face of the financial market, according to The Guardian. Bloomberg in the recent article said that if successful, Libra could turn Facebook into a ‘big player’ in the financial industry.

Compared to the rest of the money market built on blockchain technology, Libra has two distinct characteristics: how to manage and operate.

Unlike other virtual currencies that are also based on the Blockchain, Libra is not created by “digging”, but this currency is issued based on a real amount of collateral. Simply put, this digital currency is created in the same way that central banks around the world issue paper money.

In the newly published White Paper, Facebook claims Libra is a “stable currency”, due to its value attached to real assets. Basically, the only way to increase the number of circulating Libra is that users use other currencies, such as US dollars, euros, yuan or yen to buy Libra and this amount is considered “assets.” guarantee “the amount of Libra this person owns.

“Facebook introduced Libra at the moment as a turning point for the company’s operations and the money market,” said Mark Mahaney, an analyst at RBC Capital Markets. “In terms of size and importance, we believe this new financial platform may be similar to the time Apple introduced the IOS operating system for developers more than a decade ago.”

The amount of Libra collateral will be placed in banks or invested in low-risk lucrative assets, such as US government bonds, but the profits are not distributed to Libra owners. used for the operation of this currency management organization, such as funding for research activities or social activities.

This pre-system is also managed by an organization called Libra Association – an independent, non-profit organization based in Geneva, Switzerland. The organization has two main functions: authenticating transactions using Blockchain Libra and managing Libra volumes related to social purposes.

Companies that contribute at least $ 10 million are considered to be founding members of Libra Association, and there are now 27 technology companies that claim to be partners with Facebook, including some big names like Paypal, Ebay, Spotify, Uber, Lyft, Visa, Mastercard …

However, with the influence of social networks of 2.4 billion users, Facebook may face many barriers before bringing Libra to consumers.

According to Bloomberg, the new announcement from Facebook immediately faced opposition in Europe, with a call to adopt stricter regulations.

French Finance Minister Bruno Le Maire said Libra should not be considered a replacement for traditional currencies. At the same time, the head of the French financial agency called on the group of 7 central bank governors to prepare to report on this project right in the July meeting.

“Libra has undoubtedly become a legal currency,” Le Maire said in an interview with Europe 1. “This is an impossible and impossible problem.”

In the context that Facebook is suffering from numerous criticisms of privacy violations, the new move in the financial sector also draws attention from regulators and privacy advocates worldwide. gender. According to The Guardian, the US and UK authorities have expressed concern about the plan to encroach on Facebook’s financial sector.

In May, members of the US Senate Committee on Banking, Housing and Urban Issues wrote to Facebook CEO Mark Zuckerberg asking for questions regarding privacy and regulations. finance.

“It is important to understand how large social platforms use data available in ways that affect the financial life of consumers,” the content of the letter is written. “More importantly, understand how large social platforms use financial data to profile and select target customers.”

Facebook plans to release GlobalCoin cryptocurrency in 2020

Facebook’s virtual money is expected to help users pay across borders safely and at a cheap cost without a bank account,.. .

According to BBC sources, Facebook plans to release its own cryptocurrency called GlobalCoin in the first quarter of 2020, after internal testing later this year. This cryptocurrency will be released in dozens of countries around the world, helping users to make payment transactions securely and at cheaper costs without having a bank account.

To be able to launch, this virtual money will need to overcome many technical and logical barriers. Last month, Facebook’s chief executive Mark Zuckerberg met with central bank governor Mark Carney to discuss the opportunities and risks of issuing virtual currency. Facebook also works with the US Treasury and money transfer companies like Western Union, to discuss legal and operational issues related to crypto.

Facebook plans to release cryptocurrency for the first time at the end of last year. Accordingly, Facebook will partner with banks and brokers to allow users to convert dollars and other legal currencies into virtual currency. ? Facebook is also negotiating with online providers to accept this virtual currency, in exchange for lower transaction costs.

In March, Barclays’ Internet analyst Ross Sandler forecast GlobalCoin cryptocurrency could bring in revenue of up to $ 19 billion by 2021 in Facebook.

GlobalCoin marks Facebook’s second attempt at virtual currency, nearly 10 years later, Facebook Credits – cryptocurrency allows users to buy products on the system of this social network. Facebook Credits was “killed” after only 2 years of operation due to the failure of liquidity.

However, to launch GlobalCoin, Facebook has many problems to be solved in the context of the scandal of user data and regulations from authorities in recent years. The question posed by officials is how Facebook’s cryptocurrency will work and how the company will protect its customers and their personal information.

Information about GlobalCoin helped price many cryptocurrencies on the market increased on 24/5. Bitcoin rose 5% in value, trading at about $ 7,960, Bitcoin Cash and Ethereum copper both rose 7%, and Litecoin increased 11%.

The largest US bank issued virtual currency

JPMorgan Chase, America’s largest bank, has just released a virtual currency called JPM Coin. According to CNBC, this is the first virtual currency backed by a leading bank in the world’s No. 1 economy.
Every day, the wholesale banking department of JPMorgan Chase moves the amount of money up to 6 trillion USD on a global scale for corporate customers. JPM Coin was launched to make quick payments between JPMorgan Chase customers.

Testing this virtual currency into payments in the wholesale banking segment will be carried out in a few months. Initially, JPM Coin will only take a very small part in the amount of money that JPMorgan Chase moves every day.

The release of the virtual currency is part of JPMorgan Chase’s effort to prepare for the future where many financial-banking operations from cross-border payments to corporate debt issuance, will done based on block chain technology. This is the technology behind digital currencies, the most famous of which is Bitcoin.

When JPMorgan Chase tested using JPM Coin for international payments, this would be the first real-world application of a virtual currency in the banking sector.
Until now, JP Morgan Chase still holds a cautious view on virtual money investment, considering it an investment channel with a high level of risk. Last year, JP Morgan Chase and two other US banks banned the use of credit cards issued by them to buy virtual money.

Also with a cautious view, another big US bank, Goldman Sachs, is said to have shelved plans to open Bitcoin trading.

There are some important differences between JPM Coin and Bitcoin – the virtual currency that CEO Jamie Dimon of JPMorgan Chase once called a “trick” for investors. While skeptical about Bitcoin, Dimon and his subordinates always argue that blockchain technology and regulated digital currencies are promising.

The main difference of JPM Coin is that each virtual currency can be converted into 1 USD, so its value will not fluctuate. JPMorgan Chase customers will be granted JPM Coin after depositing money in JPMorgan Chase. After using the virtual money used for payment, the bank will cancel the virtual money and return it to the customer an amount of equivalent USD.

Prospects of digital currencies in 2019

Some experts said that after a hot development period, the digital money market will have a reorganization and elimination of inappropriate currencies in the coming time.

Market is not quiet

The digital money market in general and Bitcoin in particular had 1 year of unfavorable transactions. The value of Bitcoin has fallen from the peak of nearly $ 20,000 / BTC in early 2018 transactions to $3,500 in the last trading session of 2018. Thus, within nearly a year, Bitcoin lost nearly 80% of the value.
Similarly, many other digital currencies also have strong corrections. The second popular Ether – electronic currency after Bitcoin also dropped from $1,432 / Ether in January 2018 to about $150 / Ether at the moment.

Besides, 2018 also witnessed the failure of Bitcoin Cash. Contrary to the expectation of outstanding growth in early 2018 with the ability to replace the Bitcoin, this digital currency also experienced a sharp decline in the last months of 2018.

The prospects

Judging by the prospects of digital currencies in 2019, many experts think this may be a year of growth again. However, the Bitcoin currency may continue to lose against other currencies. The recent lackluster development of Bitcoin and the lack of technical support in general will lead to the collapse of this currency. As technology companies invest in Blockchain technology and spend the time and energy needed to nurture new digital currencies, some experts believe that Bitcoin will not be able to grow in keeping with the growth of other digital currencies.
According to Samuel Leach, virtual money expert and founder of Yield Coin, Bitcoin may not be able to follow the upward trend of cryptocurrency in 2019, even when some countries recognize the value of money. The main reason lies in investors’ apprehension before the strong fluctuation of this currency in recent years.

The most likely possibility for Bitcoin is that the currency will continue to receive recognition from a number of portfolio swaps (ETFs) and futures markets. Bitcoin will remain a highly speculative trading instrument for some, but will not become a popular means of trading and storing value, Leach added.

Meanwhile, compared to Bitcoin, other currencies appear to be ripple, often with a team of solid engineers standing behind to support constantly, help develop and ensure the stability of currencies in the future.

In addition, in that context, stable currencies (stablecoin) that are designed to counter strong volatility and unstable prices in the electronic money market will quickly rise to dominate market share. Previously, Bitcoin failed to become a stablecoin due to unpredictable fluctuations and strong price fluctuations in a short period of time. The value of bitcoin fluctuates according to the speculation trend and the purpose that traders are willing to buy and sell.

What Crypto Market Needs To Pay Attention In The Last Few Months of 2018

When referring to the basic analysis of trade crypto, it is common to discuss only the basic characteristics of a project such as technology, platform, community, usefulness, etc. the market. However, catching a few basic trends will help a lot for investors. Here are some highlights in  the last quarter of 2018 in general.

1. Bitcoin ETF
Bitcoin ETF is one of the most talked about phrases recently, when the Securities and Exchange Commission (SEC) recently announced that it would review the Bitcoin ETF proposal from VanEck and SolidX. It is notable that the SEC has repeatedly rejected ETF proposals from twins WinkleVoss, Proshares, Direxion as well as GraniteShares, which totaled 9 singles were massacred by the SEC.


The cryptocurrency market in general is very much looking forward to this so-called Bitcoin ETF, as it is a great opportunity for institutional investors to keep an eye out for Bitcoin and pre-coding. The deadline for the SEC’s decision on the VanEck & SolidX proposal is September 30, but the SEC has said it will review it without giving a date. High probability will be in this October.

2. Bitcoin Futures Contracts
In the past, Bitcoin has been hit hard by the near maturity of Bitcoin futures on CME and CBOE, with CME taking on higher volume and contracts. So we have to be careful when trading Bitcoin in the near future maturity date.
In terms of futures contracts, the contract price will tend to run at the spot price so there will be a strong pump or dump, so trader avoids trading on these days – especially the last trading day (last trade). In October, we have the last transaction date is 28/10 and the due date is 31/10.

3. Binance launches decentralized trading platform (DEX)
This may be a major event affecting the cryptocurrency market, the likelihood is high. Binance is a decisive trading platform and it is capable of shaping the direction of the entire market. If it’s going to the decentralized floor, the rest of the floor will do the same, and indeed the decentralized floor is a milestone right from the start in Binance’s roadmap.

Binance is scheduled to release its beta at the end of this year or early 2019.

Cryptocurrency 10 years after Bitcoin

Cryptocurrency 10 years after Bitcoin

Cryptocurrency 10 years after BitcoinThe value of money is controlled by the Central Bank, you can physically see it and hold it and you can exchange it for services and commodities. Even though you can also send and receive it digitally, the fact remains that it is physical currency. Bitcoin, originally meant to be a peer-to-peer electronic cash system to prevent double spending, and not currency per say, was launched in late 2008, early 2009, by its inventor Satoshi Nakamoto, though not his real name. Bitcoin is not controlled by any entity or server, it does not have a physical form so you cannot hold it or see it, but it can be exchanged for goods and services digitally. It is digital currency and it is the world’s first form of cryptocurrency.

The turn of the 21st century brought the new age of digitalizing every aspect you can think of, seeking new ways to become untraceable. Cryptocurrency created just that. An anonymous way to transact business, virtually untraceable in most cases due to its uncrackable code, and secure enough that it may be the new future for money. The blockchain technology used for cryptocurrency transactions is basically a digital ledger which cannot be hacked, has no single point of failure and it is completely transparent. The question is, how is blockchain so secure in a world where hacking is becoming an increasingly popular career choice for most, bringing down entire economies at times?

Blockchain technology uses cryptography keys which creates your digital signature in the form of a private key that identifies with you, allowing you to digitally sign and authorize transactions, as well as a public key which does not give away your identity, only pointing the person you are conducting the transaction with to the address of your wallet where your cryptocurrency is stored, to be used for completing the transaction. Of course, if anyone has access to both your keys, then they can access all your digital assets, so private keys are meant to be kept safely.  Once a transaction is completed, it is added to the digital ledger of the blockchain and includes a digital signature, a public key, a unique ID and a timestamp. The public key is always random and it changes each time you do a transaction, making your identity virtually untraceable.

Transacting currency digitally is becoming progressively popular where persons now pay bills directly from their bank accounts, purchase commodities and transfer funds, all in the digital realm. With cryptocurrency, there is no middle man, that is, the banks. You are responsible for your own assets and you transact business with the person directly, albeit, without knowing who exactly you are transacting with. Nevertheless, blockchain technology would reduce costs and boost efficiency dramatically, and may even be the answer to reducing global poverty. All transactions are recorded and cannot be duplicated or changed since it is broadcasted to every node, thus lowering the rate of cyber-fraud and hacking. A cashless society is emerging and it all started from the Bitcoin invention a decade ago.

Bartering System to Cryptocurrency

Bartering System to Cryptocurrency

Bartering System to CryptocurrencyTrading first existed as bartering, where goods were exchanged for other commodities, with no significant value equivalence, merely for purposes of exchanging based on need. For instance, if I was a farmer and wanted to eat fish, I would visit a fisherman and exchange some of my provisions for some of his fish. Then man started mining metals. Metals were considered valuable due to its scarcity and was first traded in its raw form.

Eventually, in the third millennium BC, gold and silver were traded as currency and by the 7th century, the first mint was built in Turkey, to produce coins. Other nations followed suit and by the 10th century China began printing paper money causing inflation to skyrocket, and by the 15th century, paper money was abolished during the Ming dynasty. By the 16th to the 17th century, shells were minted as currency but by the 17th century, bank notes started to become the new way to trade, causing bankruptcy in addition to inflation.

The first banking systems were the temples that existed in the 18th century BC. Preciousmetals were stored in the temples because temples represented a sacred place and it meant to deter thieves from stealing. Throughout the 19th and the 20th centuries, money existed as gold and silver coins. When governments took over the banking responsibilities, paper money was used and coins were manufactured from other metals such as copper. The value of the paper money was determined by the Government and eventually, banking institutions started forming.

Banks looked for more innovative ways to carry around currency and eventually, checks were created. Customers could write large sums of money on these paper forms which acted as a promissory note for the exchange of money at banks. Then came the electronic age. Customers would be able to access their monetary assets held at the banks, via electronic machines that operated 24/7 once they had an access card. Telebanking also became famous whereby consumers can transfer funds, pay bills and find out the balance of their accounts, all through a telephone.Soon enough, Internet banking and online transactions became possible. Money could be transferred digitally to anywhere in the world but you could still physically withdraw money from your bank accounts.

In 2008 to 2009, the world’s first digital currency was created and called Bitcoin. This digital money could not be seen physically and could only be transferred via the Internet. Its value then was $0 but today it is worth over $6800 and growing. Bitcoin gave rise to cryptocurrency, known as the digital gold. There are more than 10 types of cryptocurrencies existing today, Bitcoin of course, being the most valuable. Unlike regular currency, banking systems do not exist for cryptocurrency, yet it is secure and maybe more valuable, created out of code and using blockchain technology.

Cryptocurrency would change the future of money which is constantly being devalued every day. The currency is still new but it is steadily gaining popularity and value. Sometime in the future, we may have a 100% paperless currency.