New York launches an official taskforce to legitimise cryptocurrencies and blockchain, while Estonia turns its back on a national digital currency. The Tradefair team brings you the latest cryptocurrency roundup...
“We agreed in discussions with politicians that Estcoin will proceed as a means for transactions inside the e-resident community. Other options aren’t on the table. We’re not building a new currency."
- Siim Sikkut, Estonia's Chief Information Office
Cryptocurrency has been the subject on the tips of the tongues of investors around the world since its unprecedented spike at the end of last year. But where are digital currencies at now and will they ever gain the legitimacy many traders seek or will their volatility continue to be one the core draws for investors.
Here are some of the latest stories happening in the exciting but sometimes treacherous world of digital currency trading:
Estonia rules out national cryptocurrency
Estonia has u-turned on its plans to launch a national cryptocurrency after criticism from the European Central Bank (ECB). Reported by FX Street, the Baltic country came under pressure after its announcement because of its ties to the European Union, and the subsequent obligation to remain compliant with ECB monetary policies.
ECB Head Mario Draghi said the euro, which Estonia adopted in 2011, can be the only currency used. His sentiment was later backed by Estonia's central bank Governor Ardo Hansson who said reports about the country's intention to tie its own national cryptocurrency Estcoins to the euro, had been "misleading".
Estonia now plans to offer digital tokens to its so-called e-residents - foreigners who use Estonia's electronic identification method - instead.
"We agreed in discussions with politicians that Estcoin will proceed as a means for transactions inside the e-resident community. Other options aren't on the table. We're not building a new currency," Siim Sikkut, Estonia's Chief Information Office said.
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The cryptocurrency market is being manipulated, according to investors speaking out on social media. Reported by Forbes, the article challenged the idea that digital currencies are a fairer market than others because of their connection to a free market. However, one trader defended the controversial practise of pumping up trading volumes to attract buyers.
"With regards to fake volume, imo it's largely necessary. The majority doesn't want to buy when the price action dictates so and the volume is sparse. Sheep herd to volume. There is no significant leg up without the sheep."
Concerns lay in the fact that sheep - ordinary people who rely on nothing more than volume and price to buy or sell assets - may be taken advantage of by those who have the power to manipulate the market.
On Twitter, many people appeared to be confused by what they were reading, understanding the insinuation that asset holders need to pump up the volume price to give their currency more credibility to sheep.
This debate has once again highlighted the controversial practices that are banned in traditional security exchanges but are common in cryptocurrency trading, begging the question of whether or not it can ever be a legitimate investment.
New York initiates taskforce
A new article from Altcoin Buzz, focuses on how the New York Assembly has launched a new task force to investigate global cryptocurrency and blockchain legislation. The body announced that it was looking to establish rules and guidelines for digital currencies, after previously declaring that the Big Apple wants to be seen as the global leader in cryptocurrencies.
Specifically, the New York Assembly wants the taskforce to review of the impact of financial services' regulations on the development of digital currencies, and take a more detailed look at how traders are using them across the state. This will include investigating how cryptocurrencies affect local taxes and the transparency of the market.
It has given the taskforce until December 15 2019, to report its findings, which could offer traders more legitimacy in digital currency investments. In the meantime, Altcoin Buzz suggests that New York will continue to embrace cryptocurrency and blockchain activities.