Around the Blockchain with Huobi Learn (8 Dec 2021)

Welcome to Around the Blockchain, Huobi Learn’s daily rundown of the crypto markets.

Zimbabwe’s central bank Governor John Mangudya has ruled out allowing cryptocurrencies as legal tender but is considering a CBDC e-Zimbabwe dollar. He said that the government’s fintech group is “working very hard” on the CBDC and is “almost there”. The Zimbabwean dollar has lost nearly 30% of its value this year, and stability is such a significant concern that the government is paying civil servant annual bonuses in USD.

Australia is introducing new regulations to modernize payment systems and will take crypto payments into account. The reform includes a licensing scheme for firms that buy and sell crypto. Treasurer Josh Frydenberg also announced work on a digital currency, even though the Reserve Bank of Australia recently said that there was no strong case for a CBDC down under.

“Every bank should have a crypto strategy,” says Visa. The payments company has set up a global crypto advisory practise for financial institutions and wants to be a “bridge between banks and the crypto ecosystem”. A recent Visa study showed that between 18% to 40% of consumer segments would be likely to switch banks in order to access cryptocurrency services.

Binance Asia Services, which operates out of Singapore, has purchased an 18% stake in Hg Exchange. Hg Exchange is a private exchange and has a “recognized market operator” license from the Monetary Authority of Singapore (MAS). On the other hand, Singapore authorities placed Binance on an investor alert list earlier this year, leading to an exodus of users from the platform. The acquisition may mean that Binance itself might not be so concerned about getting a license to operate in the Singapore market.

Iceland’s national power company has limited the supply it can provide to bitcoin miners and aluminium smelters because of power generation and grid issues. Hive Blockchain Technologies, Genesis mining and Bitfury Holding are among the major miners operating in Iceland, a destination favored because more than 99% of its energy is green.

Show Me the Money

Huobi’s market research team maintains a long-term downward outlook for BTC. Volumes are tapering off and while there are short-term uptrends, Huobi analysts expect the 50,000 support to be tested during the day. If it holds, prices may push to the 51,100 and 52,000 levels.

BTC and ETH derivatives are holding steady, although contract volume is falling, signaling generally stable markets ahead.

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