Category Archives: USD

Auto Added by WPeMatico

Marshall Islands National Crypto Also Issued as Physical Cash

Marshall Islands National Crypto Also Issued in Physical Cash

The Marshall Islands’ national cryptocurrency, Sovereign (SOV), will reportedly also be issued in the form of physical banknotes backed by blockchain technology.

The announcement came from decentralized smart card wallet manufacturer, Tangem, with the company saying the cash will be launched in a scheme alongside the Marshall Islands government to order to provide ”fair and equal access to their digital currency, whether or not they have [an] internet connection”.

In a press release, Tangem stated it would create cards containing a blockchain-enabled microprocessor that will visually appear as unique banknotes, offering zero-fee transactions for processing the cash with ”immediate” transaction verification.

The Pacific island nation became the first jurisdiction to offer a legal cryptocurrency in February 2018, issuing SOV alongside the existing tender, USD. The new cryptocurrency ”cash” is the latest development as the Marshal Islands realizes the practicalities of having a national digital currency that is expected to be useable across the island by all residents.

While the country’s efforts set an appealing standard for the cryptocurrency community, not all reaction has been positive. In August last year, the International Monetary Fund warned that SOV put the nation’s relationships with foreign banks at risk, even requesting the country to reconsider its decision.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Marshall Islands National Crypto Also Issued as Physical Cash appeared first on BitcoinNews.com.

Tether Reopens Direct USD Redemption

Tether Limited has announced that it has re-enabled direct redemption of its native token USDT for US dollars through its own wallet. It expects this to help stabilize the price of USDT after two months of volatility. This announcement is due to the new banking relationship between Tether Limited and Deltec Bank in the Bahamas.

Tether (USDT) is currently the top stablecoin with a market cap in excess of USD 1.8 billion and has the 7th highest cryptocurrency market cap overall.

Throughout most of 2018, the price of USDT was stable at parity with the USD, an optimal condition for a stablecoin. However, in early October 2018, USDT became unpegged from the USD and slid lower after severing ties with the Noble Bank of Puerto Rico. The average price of USDT across all cryptocurrency exchanges briefly dipped as low as USD 0.925 due to fears of insolvency. Since then, Tether has remained below parity with the USD and has been quite volatile. In this period, the circulating supply of USDT shrank from 2.8 billion to as low as 1.7 billion, indicating USD 1.1 billion of the tokens being redeemed.

Currently, USDT is hovering above USD 0.98 and continues to be volatile but the restoration of the direct USD redemption service should restore stability. There will be many companies and exchanges where USDT users can redeem and high volume traders could even redeem individually, which should restore the global arbitrage mechanism that previously kept USDT’s price stabilized. It will take some time for this to go into effect since users have to go through a verification process for redemption.

Soon, users will be able to acquire USDT through the Tether wallet as well for a minimum trade of USD 100,000. Withdrawal fees may cause USDT’s price to stabilize slightly below parity in the long term. That being said, Tether volatility should dissipate after this move.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Tether Reopens Direct USD Redemption appeared first on BitcoinNews.com.

NZ’s “Friendliest” Exchange Launches Country’s First ICO

New Zealand is finally about to launch its first ICO with cryptocurrency exchange Coingrid planning to begin a USD 3 million fundraiser in the next two weeks.

Although New Zealand’s Minister of State for Trade and Export Damien O’Connor is positive there is a real desire in the government to be in the vanguard of promoting new technologies in the region, cryptocurrency has not had such an easy ride. SBS Bank’s group chief executive Shaun Drylie reflects the current feeling that while blockchain is here to stay, cryptocurrency still needs to convince New Zealand’s traditional financial community:

“We think, and the common consensus is, that it [blockchain] has real merit. Cryptocurrencies, we’re not too sure, and if you look at the volatility of cryptocurrencies that would suggest the market is not too sure as well.”

Despite New Zealand being one of the strictest countries in the world regarding cryptocurrency, this hasn’t stopped Coingrid forging ahead with their plans to break new ground with plans for a domestic ICO launch on 23 November.

Coingrid says that it is the country’s “friendliest cryptocurrency exchange” although it is not exactly clear what it’s based its self-description on. However, to avoid New Zealand’s still somewhat unclear regulations regarding the trading of cryptocurrencies, Coingrid have been dealing directly with regulators. ICOs are generally registered overseas to avoid government regulations, which still lack clarity.

The approach by Coingrid is an, as yet, untested approach by other cryptocurrency exchanges. By dealing directly with New Zealand’s Financial Markets Authority (FMA), the exchange is now able to launch New Zealand’s first domestic ICO.

Despite the county’s crypto caution, stablecoins continue to attract attention. There are plans to peg the New Zealand Dollar (NZD) to the NZDT, a stablecoin issued by the country’s leading exchange Cryptopia which has a daily trading volume in excess of USD 2 million.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post NZ’s “Friendliest” Exchange Launches Country’s First ICO appeared first on BitcoinNews.com.

Kim Dotcom Says USD in Death Spiral, Buy Crypto

Kim Dotcom, who has been under siege by the New Zealand and United States governments since the 2012 closure of Megaupload, says the USD is in an irreversible death spiral due to the United States federal debt. Therefore, according to the internet entrepreneur, now is the time to buy crypto and gold.

US Empire now pays half a trillion dollars in interest payments per year to service its debt.

US debt increases by a trillion per year. It’s a death spiral that cannot be undone.

Self destruction and USD collapse are unavoidable. Get out of USD and US stocks. Buy gold & crypto.

— Kim Dotcom (@KimDotcom) October 25, 2018

Dotcom specifically mentions the United States government debt, which has been rapidly increasing due to a worsening federal budget situation. From 1997-2001, the debt was relatively steady in the USD 5.5-5.8 trillion range. The events of 11 September 2001 initiated a global war on terror, causing US debt to rise to USD 7 trillion by early 2004. In Iraq, the conflict became a war of attrition and to fund this, debt increased to USD 9 trillion around the beginning of 2008.

Then the Great Recession of 2008 began, the worst economic crisis since the Great Depression. Ultimately, trillions of US dollars were used to bail out banks and corporations, and this practice continues to this day. During early 2009, US debt exceeded USD 11 trillion. Notably, this acceleration of debt coincided with the launch of Bitcoin, and was referenced in the Bitcoin genesis block with the phrase “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks“.

By 2012, US debt had skyrocketed to USD 15 trillion. The pace of debt increase never slowed down, breaching USD 20 trillion in late 2017, coinciding with Bitcoin’s record highs of USD 20,000. As of 25 October 2018, this debt sits at USD 21.7 trillion, up USD 1.25 trillion in a year, or an increase of roughly USD 3.45 billion per day.

The Bitcoin market cap is USD 112.5 billion as of this writing on 28 October, which pales in comparison to the United States debt. It takes only a month for it to increase by the amount of the entire Bitcoin market cap.

Buried deep down in the United States budget for 2019 are tables showing that the budget deficit will be nearly USD 1 trillion in 2019, with projections of an increase through 2028. Interest paid out for debts will be USD 364 billion according to the estimate, with a year over year growth of USD 50 billion, yielding USD 869 billion of payments for debt in 2028. These are just estimates and do not account for emergencies like major wars or serious economic collapses.

Tying this data together with Dotcom’s statements, the United States debt has increased tremendously over the past two decades. Budget projections indicate the United States can not afford to slow down the deficit, let alone start paying back the debt. This will require the country to increasingly issue bonds, where people give the United States money in exchange for some slight long-term interest.

Depending on the length of bond maturity, current United States Treasury bond rates range from 2.3% to 3.3%. Historical 10-year bond interest rate data shows that after a long period of decline, rates for 10-year bonds have climbed from 1.5% in the middle of 2016 to 3.2% as of October 2018. Therefore, the amount of money the United States has to pay for bond interest has increased by over 100% in the past two years. This is likely due to decreasing demand for United States bonds versus the number of bonds the United States is trying to sell.

As bond interest rates rise, eventually investors will get spooked, and the United States will have to print money on a mass scale to keep the country running. This will drastically devalue the USD, and perhaps this is already underway. There has been 53% USD inflation since the year 1998 according to consumer price index (CPI) data, which is roughly 2.7% USD inflation per year.

Increasing budget deficits, which leads to increasing bond rates, which ultimately leads to printing money as a last resort once bond buying demand dries up, could very well cause hyperinflation of the USD. This would be catastrophic for most of the global economy.

However, Bitcoin and gold should hold their value relative to the USD, since they cannot be printed by the United States.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Kim Dotcom Says USD in Death Spiral, Buy Crypto appeared first on BitcoinNews.com.

Gemini Dollar, TrueUSD, USDC, and PAX Surge Above Parity With USD as USDT Struggles

Tether (USDT), the #1 stablecoin with a market cap in excess of USD 2 billion, has been struggling recently due to banking problems at Bitfinex, and its price has dropped below parity with the USD. Simultaneously other stablecoins including the Gemini Dollar (USDG), True USD (TUSD), USD//Coin (USDC), and Paxos Standard Token (PAX) have surged above parity with the USD, indicating that people are exchanging their USDT for other stablecoins.

Through early October 2018, USDT maintained parity with the USD, and there were roughly 2.8 billion USDT in circulation. Then the USDT gradually declined to about USD 0.99, before 320 million USDT were redeemed and taken out of circulation. This perhaps caused a run on Tether Limited, possibly making redemption temporarily impossible and removing the backing of USD cash reserves, which is the primary mechanism that keeps USDT at parity with the USD.

The price of USDT crashed on 15 October 2018 to USD 0.925, and temporarily went as low as USD 0.87 on at least one exchange. The drastic price movement serves as strong evidence that there was no USD backing USDT at that time due to banking troubles. In general, people should be able to redeem USDT at parity for USD through Tether Limited, and would not sell USDT for less than 1 USD unless Tether Limited’s redemption process stopped working. The price of USDT recovered to USD 0.98 within a day of this crash, but then another 250 million USDT were redeemed and taken out of circulation, and now as of this writing on 17 October USDT’s price is slowly declining and approaching USD 0.97. Since the Tether crisis began, the USDT market cap has declined USD 600 million from USD 2.8 billion to USD 2.2 billion.

Traders and investors have clearly been shifting their holdings from USDT to several other major stablecoins that are available. The USDG which is run by the Gemini exchange briefly surged to a high of USD 1.19 on 16 October, TUSD spiked to USD 1.08, USDC run by Circle hit USD 1.11, and PAX reached USD 1.08. Since then these stablecoins have declined to a consensus of USD 1.02 to USD 1.03 as of 17 October. It is interesting to note that as of this writing these stablecoins are 2-3 cents above parity with the USD, while Tether is 2-3 cents below parity with the USD.

While people who were holding TUSD, USDC, PAX, and USDG