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This Bank of Canada paper shows that when banks have no market power, issuing a deposit-like CBDC would would shift deposits away from the banking system, reducing bank lending. Otherwise, issuing a deposit-like CBDC with a proper interest rate would encourage banks to pay higher interest or offer better services to keep their customers, attracting more deposits and extending more loans. In fact, the CBDC would serve as an outside option for households, thus limiting banks’ market power, and improve the efficiency of bank intermediation.
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Grayscale Bitcoin Trust (GBTC) is now buying up about 21 percent of newly mined BTC monthly suggesting increasing demand from Wall Street.
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The crypto custodial service industry is booming. Institutional investors now have a way into the market and can pick from a multitude of solutions that allow them to secure crypto assets in a safe, secure, trusted, regulated way.
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European crypto firms are facing a double-pronged banking crisis. The handful of small, “crypto-friendly” banks are seemingly only friendly in name, accepting only a select-few firms, while “blockchain phobia” among mainstream banks continues. Many firms are now resorting to back-room deals or facing long, expensive delays to get banked via alternative institutionstags: CryptoAssets Fintech
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On-chain metrics suggest increasing use of the stable coin despite a decreasing circulating supply.
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The fake volume problem is getting worse. In the period from November 2018 to January 2019 BNC analysis identified 68% of reported market volume on the 240 exchanges it tracks as being suspect – up from 54% in the previous period.