Cryptography, towards institutionalization? Web Lights and Shadows 3

Many countries and finance giants like BlackRock are opening up to cryptocurrency. It is a race to see who will understand and be the first to exploit the potential of the crypto world, which remains an uncertain and fertile ground for scams. A brief overview of the latest moves

Amid the turbulent flows of global markets, shaken by the conflict in Ukraine and its consequences for commodities, supply chains and global trade, the volatility of Bitcoin is decreasing. Cryptocurrency is cross-border and neutral by definition, which increases its attractiveness to those who do not trust classic currencies. But he also points out that it is a sign of the growing interest in cryptocurrencies Bloomberg: The interest of the “heavy” actors will stabilize it.

Even a web of separate failures in Web 3, like a couple the pirate Millionaires and broken promises about decentralization, the audience of the convinced is expanding, which includes large financial institutions and national governments. On Thursday, the Central African Republic became the second country in the world – after El Salvador – to recognize cryptocurrencies as legal tender.

Analysts point out that these two poor economies want to attract international investment. By not fully controlling the money supply, they are struggling to get international loans backed by their own currencies, and cryptocurrencies can help bypass this predicament. But even the most economically stable countries – the United Arab Emirates, Germany, the UK, Singapore, Switzerland, and many states in the US – have already moved to make themselves more Coin friendly.

In general, their governments are convinced that the adoption of cryptocurrencies will increase, that regulation is required, and that this should be done in order to attract companies. “It is a race that has intensified since global authorities have recognized the scale of capital flows into crypto-related technologies, which can bring cheaper and faster transactions to consumers and displace relationships deeply rooted in the financial system,” he writes. financial times.

black rockAsset Manager He’s the Biggest in the World, He Definitely Agrees: In a Just-Published Report, He Refers to Cryptocurrencies as an Opportunity for Exponential Growth, and His CEO Larry Fink It tells its investors that a well-designed digital money system can cut costs across borders, improve global transaction settlements, and help reduce money laundering. He recently participated in a round of funding for Circle Internet Financial, the company behind one of them stablecoin “Hooked” on the value of the dollar and its appreciation by the most accurate investors.

Another major lender at Circle Fidelity is another massive asset manager, which has just opened a pension fund that also includes bitcoin. to me Bloomberg Swiss bank UBS will also explore investment alternatives to cryptocurrencies to offer to its clients. BlackRock this week launched an EFT (Exchange-Traded Fund) fund designed for beginners who want to invest: it exposes them to companies working in the cryptocurrency industry, or in general those working on blockchain projects.

EYE: The warning from these finance giants is that this isn’t a (digital) rush for gold at all, but a careful selection of web3 features with real potential and not “inflated.” how do you notice Jemima Kelly above FTin a recent interview it seemed so Sam Bankman FriedCEO of FTX (A cipher exchange), that one of the services it offers is actually a Ponzi scheme.

Cryptocurrency problems are still far from resolved: companies that start “decentralized” projects often control and profit from them, and Nft Markets itself admits that most of them Crypto assets Stolen or scammed, there are more than 20,000 cryptocurrencies worth little or nothing – often scams, with owners scrambling to increase their popularity and value and then selling them all at once when they think they can maximize the profit. Not to mention the environmental impact of verifying certain cryptocurrencies.

Institutional regulations and interests can support what remains the financial far west. The stability of bitcoin, in fact an indicator of the cryptocurrency market, indicates that this is the trend. But many countries haunt the world of cryptocurrency – and even those that you have identified must contend with the yearning for financial freedom (anarchy?) and the aversion to central regulation that innervates Web 3 ideology. How these elements converge will determine the evolution of finance in a key crypto and vice versa.

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