The United States is considering creating a central bank for cryptocurrency with the support of financial entities in the country

The United States is considering creating a central bank for cryptocurrency with the support of financial entities in the country

Government United State studying the possibility of creating Central Bank of Cryptocurrency urging Federal Reserve To continue investigation and experimentation in this regard, as indicated by White House It is a statement.

Management Joe Biden It will also launch a multi-agency task force to support the Federal Reserve’s efforts and consider the implications of creating a central bank-backed digital currency.

In March of this year, the US President ordered his officials to evaluate the creation of an American digital currency.

Will be Central bank digital currency (known as CBDC, for its English acronym), which differs from cryptocurrencies because they are protected by the country’s financial entities.

no Federal Reserve Such as Treasury Department They have repeatedly warned in recent years about the risks associated with cryptocurrencies, which they consider to be highly speculative and volatile assets.

Earlier this week, US inflation came in at 8.3% YoY in August, higher than expected. Expectations of a strong path to an interest rate hike by the Federal Reserve have had an impact on those assets that are considered riskier, such as cryptocurrencies. The Bitcoin sank 6% to $21,000. Terra Classic fell 10%, followed by Uniswap (-8%), Avalanche (-8%), Polkadot and Cardano (-7%). Ethereum is down 9%, below $1,600.

Earlier this week, US inflation came in at 8.3% YoY in August, higher than expected.  Expectations of a strong path to an interest rate hike by the Federal Reserve have had an impact on those assets that are considered riskier, such as cryptocurrencies.
Earlier this week, US inflation came in at 8.3% YoY in August, higher than expected. Expectations of a strong path to an interest rate hike by the Federal Reserve have had an impact on those assets that are considered riskier, such as cryptocurrencies.

The long-awaited announcement Inflation in the US was not as positive as expectedThis led to an immediate reaction in financial markets, with declines touching 4% in Wall Street indexes, as well as in the cryptocurrency market.

Where the expectation of the inflationary adjustment was greater, and the market was coming from a promising upward movement, This drop surprised traders From the world of “coding”. As evidenced by the data from Queen GlassS, leveraged traders betting on the market rally saw very high liquidations in a matter of hours.

One of the cryptocurrencies that left the biggest liquidation of the day was Ethereum ClassicAs shown crypto news. This coin has been in the eye of a storm lately, as its network could be one of the preferred alternatives for miners who will be left without this activity in Ethereum after merge: The term describes the moment in which there is The Ethereum blockchain will be integrated with a system called Beacon Chain.

a) yes, merge It will mark the end of mining in raised. But in the eyes of the market, this event will not only affect the future of ETH, but also have an even greater impact on the behavior of cryptocurrency prices.

In addition to this event, there are three other events expected with a potential impact on the cryptocurrency market. One of them, in particular, was Tuesday’s inflation announcement in the US. With better news expected, the impact of this case has been on the downside.

(With information from EFE)

Read on:

Wall Street opened sharply lower after negative inflation data
Year-on-year inflation in the US fell less than expected: it was 8.3 percent

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