High 5: Discover the top news in crypto for the week!
Institutional investors worldwide plan to invest in digital assets in the future, while experts envision a Bitcoin dominance across asset classes by 2050. At the same time, more regulations for stablecoins are in place, while Blockchain technology sees more use-cases. Read more about the top crypto news of this week.
Decentralized Finance will transform Banking.
The World Economic Forum explores how Decentralized Finance (DeFi) will shape the banking system in future years, particularly for small and medium businesses (SMEs).
Recent reports suggest that the intersection of DeFi with traditional players can bring “efficiency gains and democratization” to banking processes.
DeFi can break “barriers to entry” to smaller-sized businesses in accessing baking services and creating synergies until now only reachable by larger corporations.
Experts see Bitcoin replacing FIAT currency by 2050.
A new survey by Finder.com reveals that 50% of its participants believe that Bitcoin will overtake traditional FIAT currencies and Central Bank Digital Currencies (CBDCs) in the future.
Experts in the crypto industry believe that “hyperbitcoinization” could happen in the next 20 years, with Bitcoin and crypto replacing traditional financial systems.
Moreover, experts believe that Bitcoin will become the dominant currency in developing countries, triggered by El Salvador’s move to adopt Bitcoin as legal tender.
Institutional investors back crypto for the future.
A new study conducted for Fidelity Digital Assets reveals that 70% of the institutional investors surveyed will invest or buy digital assets in the future, showing the continued interest in this new asset class.
Between December 2020 and April this year, half of the investors in the study already owned crypto, while 90% of those interested expect their companies to buy or offer crypto exposure.
Furthermore, a new report by CoinShares shows that inflows into the digital space occurred mostly with Ethereum, XRP, and DOT in the past week.
Bitcoin mining is over 50% green-powered.
CNBC interviewed Hut 8′s CEO, Jaime Leverton, to find her insights about crypto’s current market state and Bitcoin’s mining transition to green energy sources.
Leverton believes that Bitcoin’s carbon footprint will keep reducing as more than 50% of the energy used currently is already “renewable or sustainable,“ based on previous reports by the Bitcoin Mining council.
Meanwhile, Bitcoin miners are moving to new locations with cheap electricity and renewable energy sources.
Stablecoins and CBDCs rise in interest.
Do you know the differences between all types of digital money? Business Insider explains the differences between cryptocurrencies, stablecoins, and Central Bank Digital Currencies (CBDC).
While Bitcoin resembles safe-havens like gold, stablecoins are tokens pegged to FIAT currencies with low volatility. In contrast to stablecoins, governments issue CBDCs as a complement to physical cash (e.g., digital dollar). Recent research suggests that stablecoins and cryptocurrencies will face more regulation worldwide.
This document is purely for educational purposes and has been issued by Sygnum Group. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a marketing communication. It does not constitute an offer or a recommendation to subscribe, purchase, sell or hold any security or financial instrument. It contains the opinions of Sygnum Group, as at the date of issue. These opinions and the information contained herein do not take into account an individual‘s specific circumstances, objectives, or needs. No representation is made that any investment or strategy is suitable or appropriate to individual circumstances or that any investment or strategy constitutes personalized investment advice to any investor. Therefore, you must verify the above and all other information provided in the document or otherwise review it with your external advisors. Some investment products and services, including custody, may be subject to legal restrictions or may not be available worldwide on an unrestricted basis. The information and analysis contained herein are based on sources considered as reliable. Sygnum Group uses its best efforts to ensure the timeliness, accuracy, and comprehensiveness of the information contained in this document. Nevertheless, all information indicated herein may change without notice.