Cryptocurrency Latest: EU and G20 move towards digital currencies
The G20 and EU move towards appropriate regulation, while celebrity endorsements don't seem to be paying off. The Tradefair team brings you the latest cryptocurrency roundup...
"The arrival of permissioned cryptocurrencies promoted by banks, even by central banks, will reshape the current competition level in the cryptocurrency market, broadening the number of competitors."
- European Parliament Committee.
Digital currency trading is still an area that many investors are unconvinced about, but for those who love the unpredictability the associated risk is just part of the fun. Here are some of the latest stories happening in the world of cryptocurrency:
EU moves towards cryptocurrency
A study has been released by the European Parliament Committee saying it would be possible for the central bank to release a digital currency in the future. This, it claimed, would reshape and could even stabilise the crypto market, as it would "remedy" problems caused by a lack of competition.
"The arrival of permissioned cryptocurrencies promoted by banks, even by central banks, will reshape the current competition level in the cryptocurrency market, broadening the number of competitors," it reads.
The EU has been at the forefront of cryptocurrency regulation, having already launched a new directive to set stricter rules for trading, in a bid to better protect itself from the shady side.
G20 recognises potential of digital currencies
Digital currencies have had another nod of support, as the G20 released a report highlighting the impact of cryptocurrency trading on the wider economy. It's part of a decision from the world's 20 largest economies to become as informed as possible on the topic before regulations are introduced.
The report states that "technological innovations", such as those supporting crypto-assets, can "deliver significant benefits to the financial system and the broader economy". It also points towards the volatility of the market, saying that it raises issues for "consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing".
Are celebrities doing crypto any good?
The Verge has taken a retrospective look at how cryptocurrencies that have been endorsed by celebrities have performed. Of course, they carry a lot of clout, putting attention and adding credibility to lesser-known digital currencies, but are celebs helping or hurting digital currencies?
Floyd Mayweather is perhaps one of the biggest stars to throw his weight behind cryptocurrencies. The boxer has backed a number of ICOs, but that hasn't saved them from falling into hot water. Centra, for example, was endorsed by Mayweather, but has since been subject to a fraud charge from the SEC after trying to align itself to Visa and Mastercard.
Heiress and socialite Paris Hilton is another famous face to have come out in support of lesser-known coins. Her endorsement of Lydian, although hashtagged with #NotAnAd, came across as exactly that and potentially triggered a statement from the SEC warning celebrities about the risk of backing cryptocurrencies.
Are regulators finally getting behind cryptocurrencies?
South Korean regulator the Financial Services Commission (FSC) has created the Financial Innovation Bureau to deal with cryptocurrencies, according to an article from Forbes.
It's doing so as part of a move to "proactively respond to financial innovation in the fourth industrial revolution era" and presumably make the most of potential investors looking to channel money into the area.
The Bureau will also take on responsibility for other fintech and services involving big data, the FSC said in a statement.