Crypto Market Overview – January 24^th, 2022

 

“No Developed Nation Bans Cryptocurrencies”: Pavel Durov About Proposal of The RFs Central Bank

The founder of Telegram, Pavel Durov, in his messenger channel, reacted to the proposal of the Central Bank of the RF to completely ban the free circulation, exchange and mining of cryptocurrencies in the country, stating that “no developed nation bans cryptocurrencies,” since it “will inevitably slow down the development of blockchain technologies in general.” According to the developer, these technologies increase the efficiency and safety of many types of human activities, from finance to art. Durov stressed that distributed ledger solutions using cryptocurrencies as units of account are replacing what he called “obsolete centralized financial systems of the second half of the 20th century” based on central bank currencies. He cited Ukraine and Uzbekistan as an example for the RF, which follow the way of developed countries and adopt progressive laws for the blockchain space, not wanting to stay away from technological and economic progress. At the end of the post, Durov noted that "thoughtful regulation will allow the country to balance the distribution of forces in the international financial system and become one of the major players in the new economy." Will the authorities of the Russian Federation listen to the opinion of an experienced programmer? Well, if so, then it can be called a miracle.

“Crypto winter is coming”: Representatives of The Swiss Bank at The Ready

Financial analysts from the international investment bank and financial services provider UBS Group AG predict that the current downtrend in the value of Bitcoin could be the beginning of a new “crypto winter” and launch a full-blown bear market, as it already happened during the collapse of cryptocurrency prices in early 2018. The report of the bank’s representatives refers specifically to the global process of loss of confidence in digital assets, which should be followed by a series of price collapses of the main crypto-coins, which will most likely take years to restore record values. The document also indicates the main reasons for the current collapse, the main of which is the increase in the interest rate of the US Federal Reserve due to the high level of inflation in the country, which will make the crypto unprofitable. This process will draw the attention of investors to other "bugs" of digital assets, including low transaction speed, lack of scalability and the conditions of regional regulators, which are already hindering the development of cryptocurrency. UBS spokesman James Malcolm believes that the combination of these factors indicates a long-term and bleak outlook for the current crypto price correction.

JPMorgan Abruptly Closes Accounts of Uniswap Founder

The founder of the popular decentralized exchange Uniswap, Hayden Adams, tweeted that the American banking giant JPMorgan Chase closed his bank accounts without any notice or explanation, and also did the same with a number of other individuals and companies. Hayden asked Commodity Futures Trading Commission (CFTC) commissioner Brian Quintenz for clarification from the bank, to which he said that selective sanctions were likely imposed "with direction from the top." In turn, Chase customer support responded to the situation and asked the founder of Uniswap to use their bank chat and resolve the disagreements. But this happened clearly at the wrong time. It’s not a secret that most banks are frankly negative about cryptocurrency, since the principles of its operation indicate a bunch of technical and even logical problems with obsolete fiat money. This ideological conflict is not limited to the closure of accounts of crypto-developers, but these processes are the most significant and it is important to take them into account in order to notice progress in the collapse of the “old financial system.”