InvestMacro

By RoboForex.com

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By RoboForex.com

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By George Prior

The UK’s plans for a digital pound to be launched later this decade underscore that digital currencies are the future of finance and strengthen the case for cryptocurrencies such as Bitcoin.

This analysis from Nigel Green, CEO and founder of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organizations, comes as the Bank of England and the Treasury announced that a digital pound could be used by households and businesses for everyday payments in-store and online.

The so-called ‘Britcoin’ would be used alongside cash, rather than replacing it, according to officials.

“While cash is here to stay, a digital pound issued and backed by the Bank of England could be a new way to pay that’s trusted, accessible and easy to use,” Finance Minister Jeremy Hunt noted.

He added: “That’s why we want to investigate what is possible first, whilst always making sure we protect financial stability.”

The central bank digital currency (CBDC) would use blockchain technology currently used by cryptocurrencies to record transfers on a central digital ledger.

The deVere CEO says: “The announcement reflects what we and many others have been saying for a long time: that digital currencies are an inevitability in the ever more digital world in which we live.

“If tech is increasingly at the core of how we live, work, do business and much more, it’s logical to have money that is also tech-driven too.

“It seems that this is now a view shared by the UK government.”

He continues: “As more and more countries introduce their own CBDCs, I’m confident that the case for cryptocurrencies, such as Bitcoin, will grow stronger.

“CBDCs might have many advantages, including convenience, efficiency and transparency, but what they do not offer the user is privacy.

“Of course, the government and other CBDC proponents will object to criticisms, saying that they are ‘alarmist’.

“But it is important to point out that these state-backed, programmable digital currencies will provide governments greater oversight of citizens’ transactions in real-time.

“They are going to be a game-changer in the financial system as they will be able to track and trace every purchase and monitor every penny of the money that’s being spent.”

This, says Nigel Green, is why Bitcoin and cryptocurrencies, will become increasingly attractive.

“They still have all the plusses of being digital, – speed, efficiency and convenience – but they are fundamentally different as they run on an open, immutable blockchain. They are global, borderless, tamper-proof and censorship-resistant.”

CBDCs are reportedly under development in more than 100 countries globally.

In the winter of 2022, the Beijing Winter Olympics were used to launch China’s new digital currency.

The digital yuan had already been trialled in various cities across China the year before, but the Games were the first time it was piloted on a global stage with mainly foreign users.

Nigel Green concludes that “we will have a multi-faceted system of currencies moving forwards. The mix will include fiat, CBDCs, and crypto.

“Whilst there are pros and cons to all, for many people programmable CBDCs will be unattractive due to the privacy and government tracking concerns.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

By RoboForex.com

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By George Prior

The UK’S plans to “robustly” regulate the cryptocurrency industry must be championed and highlight that “digital is the future of finance”, says the CEO of one of the world’s largest independent financial advisory, asset management and fintech organizations.

The comments from Nigel Green of deVere Group comes as the UK government plans to bring the cryptocurrency sector under the umbrella of mainstream financial services regulation.

The Treasury said late on Tuesday it would unveil a series of proposals to “regulate a broad suite of cryptoasset activities, consistent with its approach to traditional finance.”

It will also temporarily backtrack on a previous vow to align the regulation of crypto promotions with the regulations applied to stocks, shares and insurance products.

The deVere Group CEO notes: “The UK’s decision to regulate crypto must be championed as digital currencies, including Bitcoin, are set to play an ever greater role in the domestic and international financial system, and they should be held to the same standards as the rest of the system.

“The news that digital currencies are being brought into the regulatory tent in one of the world’s largest economies and most highly-regulated markets shows that crypto is now mainstream. It has come of age.

“A strong regulatory framework will help protect investors, tackle criminality, and reduce the potential possibility of disrupting financial stability.”

He continues: “It also offers a potential long-term economic boost to the UK as digital is the inevitable future of finance.

“This move will help further position Britain as a global hub for crypto, and fintech more generally.

“It will help attract the businesses of tomorrow – and the jobs they create – in the UK, as effective regulation gives them the confidence they need to think and invest long-term.

“We also expect this development comes as the government has expressed interest in launching its own ‘Britcoin’, or central bank-backed digital currency (CBDC).”

This news will further strengthen the case for cryptocurrencies and is likely to have a positive impact on prices of the major digital tokens, says Nigel Green.

“The move to regulate illustrates that retail and institutional investors are increasingly aware of the inherent characteristics of cryptocurrencies like Bitcoin which has the core values of being digital, global, borderless, decentralized and tamper-proof.”

According to the results of a study by deVere Group, 82% of high net worth clients, with between £1m and £5m of investable assets, sought advice on cryptocurrencies.

“Wealthy investors, a typically conservative cohort, also understand that digital currencies are the future of money, and they don’t want to be left in the past.”

The deVere CEO believes that this momentum of interest is set to build further as the bear market, or so-called ‘crypto winter’, of 2022 is thawing.

“Bitcoin is on track for its best January since 2013 based on hopes that inflation has peaked, monetary policies become more favourable, and the various crypto-sector crises including high-profile bankruptcies are now in the rear-view mirror,” he says.

“The world’s largest cryptocurrency is up over 40% since the turn of the year and this will not go unnoticed by investors and others who want to build wealth for the future.”

He concludes:  “Regulation will further shore up the crypto sector and further instil trust and confidence for investors. This will have a beneficial impact on the price trajectory long-term.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

By George Prior

The World Economic Forum (WEF), which starts today in Davos, Switzerland, will “spectacularly fail” unless it advances cryptocurrency regulation, warns the CEO and founder of one of the world’s largest financial advisory, asset management and fintech organizations.

The stark warning from Nigel Green of deVere Group comes as business, financial, economic, political, media, academic and civic leaders head to the Swiss mountain resort for the annual four-day conference.

It’s returning to its traditional timeslot and destination after two years of pandemic-triggered disruption.

Its return coincides with Bitcoin, the world’s biggest crypto by market capitalisation, recording a staggering 28% jump in value since the beginning of January.

The deVere CEO says: “The leaders assembled in Davos at the WEF must next week return home to their governments who then need to insist that their financial regulators must stop ‘talking the talk’ and begin to up the ante on regulating the cryptocurrency market.

“The time for endless platitudes on greater regulatory scrutiny is over. Action is required.

“Should those in attendance at the WEF not advance the agenda of crypto regulation as a result of the 2023 summit, they will have spectacularly failed.”

Nigel Green, who has long been an internationally high-profile champion of digital currencies such as Bitcoin, cites three key reasons why regulation is needed.

“First, as more and more institutional investors – including pension funds, mutual funds, investment banks, commercial trusts and hedge funds – as well as individual investors, increase their exposure to crypto, and as mass adoption increasingly takes hold, inevitably cryptocurrencies will play an ever-greater role in the international financial system.

“Yet crypto remains a relatively young market and, therefore, a volatile one.

“As such, in the interests of avoiding wide-scale disruption to the safety and soundness of the broader global financial system, crypto must be brought into the regulatory tent and held to the same standards as the rest of the system.”

He continues: “Second, after a year of significant crypto firm collapses, accusations of top-level fraud and prison sentences for insider trading, there’s no denying that greater scrutiny would help protect investors.

“Third, regulation could provide a potential long-term, sustainable economic boost to those countries which introduce it as crypto is widely regarded as the future of finance.”

What is needed now, says Nigel Green, is a workable internationally agreed and recognised regulatory framework that “is sensible and doesn’t hamper innovation or compromise the inherent nature of the digital assets and market.”

After Bitcoin reached above $21,095 on January 13 for the first time since November 8 2022, he told the media that: “The ‘crypto winter’ is thawing amid growing signs that inflation is beginning to cool. Of course, the crypto market will not go in a straight line – no market ever does – but we expect the bears to go into hibernation and bulls are ready to run!”

He concludes: “Cryptocurrencies are here to stay and the market is only set to grow exponentially.

“There can be no doubt that regulation of the crypto ecosystem is required, and it should be a priority at this year’s WEF in Davos.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

By George Prior

The Bitcoin price rally demonstrates that cryptocurrency investors are pricing in more favourable market conditions in 2023 as inflation looks set to peak, affirms the CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organizations.

Nigel Green of deVere Group, a high-profile crypto entrepreneur, is commenting after Bitcoin reached above $21,095 on January 13 for the first time since November 8 2022, before falling back slightly.

At the time of this release, the largest crypto by market capitalisation is $20,890, according to the exchange deVere Crypto.

He says: “We are technically still in a bear market, but the signs are the bulls are beginning to take back control.

“Bitcoin price has jumped yet again– another 3.8% in the last 24 hours – on top of gains made through the week.  It’s estimated that around $70 billion has been traded in crypto over the last day alone.”

He continues: “The relief rally began on the back of the latest U.S. inflation data which was released on Thursday. It revealed U.S. CPI slowed to 6.5% in December from 7.1% the previous month.

“As inflation in the world’s largest economy is, it seems, being brought under control thanks to the Federal Reserve’s aggressive interest rate hikes, it makes it more likely that the central bank will begin to take its foot off the brake of the economy by slowing the hikes.

“The Fed will continue hiking rates for a while yet (albeit at a slower pace) as they can’t afford to slide backwards. Officials will continue to sound hawkish too in order to avoid over-excitement in the markets and wider complacency.”

The asset classes that have fallen hardest due to central banks’ policy tightening in 2022 may be the strongest performers during the unwinding of the rate hike programmes, predicts the deVere CEO.

“These include cryptocurrencies, such as Bitcoin, which alongside tech stocks, were hit hard.

“As the central banks begin to stop tightening the screws, and the cyclical upturn gets underway, these asset classes could outperform others.

“Knowing they are likely to be rewarded for doing so, many crypto investors are positioning themselves now for the pivot.”

The developments will be welcomed by crypto enthusiasts after Bitcoin lost over 60% of its value in 2022, with many other tokens experiencing similar losses, due to the bleak macro outlook, the collapse of several crypto firms, and greater regulatory scrutiny.

Nigel Green concludes: The ‘crypto winter’ is thawing amid growing signs that inflation is beginning to cool.

“Of course, the crypto market will not go in a straight line – no market ever does – but we expect the bears to go into hibernation and bulls are ready to run.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

By RoboForex.com

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By RoboForex.com

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

By RoboForex.com

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.