Crypto News: Canada building a CBDC, Monero in demand, and Cars on the Tezos Blockchain

The Bitcoin charts have been awesome to watch
this week as they treated us to some early halloween eye candy with a tease to almost
$14,000. The bear market was long and painful but it
looks like we really might be putting that unpleasantness behind us. This week, we look at how Bitcoin is breaking
its correlation with the stock market, what’s happening with Monero and how the JP Morgan
coin is getting used. Stay tuned as we cover all of these topics
and more in this week’s Exodus Crypto News! Welcome back everyone this week has been a
nail biter, From the financial point of view the news of the week is that Bitcoin appears
to be breaking its correlation with the stock market. Since March,  Bitcoin has been trading more
or less in sync with stocks, leading many to question the narrative of Bitcoin as an
uncorrelated asset.  That appears to be changing though… In the last couple of weeks Stocks are down,
down, down and Bitcoin is holding its ground quite nicely.

In fact, if you look at the charts what you’ll
see is that Bitcoin made its beautiful run to just under $14,000 at the same time that
stocks were going down on a daily basis.  Breaking its correlation to the stock market
is definitely a good thing for Bitcoin. Fidelity Investments even pointed out that
Bitcoin can serve as a risk diversification asset since it doesn’t tend to trade in
tandem with other assets. Even the institutional investors know Bitcoin
trades on fundamentals which would suggest a price far higher than where we’re at now.  More and more countries are piling on the
CBDC bandwagon.

This stands for Central Bank Digital Currency
and the latest to join the party is Canada. To be honest though, if Canada is someone
at the party, they’re the guy standing in the corner, drinking ice water. They showed up but that’s about it.  What do we mean by this?  So, Canada’s announcement is quite soft. They say that while they’re drafting a plan
to launch a CBDC, they don’t actually have a strong need for a digital Canadian dollar
right now. Canada is calling for a global approach and
for other G7 countries to develop their own CBDCs in unison.  Basically, Canada seems to think that a CBDC
is a good idea, but they’re not quite sure. They’re willing to create one, but they
don’t want to do it first. This is in marked contrast to China or which
has been working on its CBDC for four years and clearly expects a big benefit from having
the first digital currency.

France also has entered the race to the first
out of the gate with a CBDC seeing a tremendous economic advantage of being a first mover
in the global market for CBDCs. For you long term crypto enthusiasts, you’ll
remember that the JP Morgan coin goes all the way back to 2018. At the time there was some concern that a
JPM coin could somehow threaten other cryptocurrencies, but nothing much ever came of it.

For two years the JPM coin was only used internally,
to make transfers between different JP Morgan branches and subsidiaries. That’s changing now though…  For the first time a JP Morgan customer, a
technology client apparently, is using the stablecoin for a commercial transaction. From a surface level this just doesn’t seem
to amount to much of anything. A JP Morgan client is using their stablecoin
to send some cash around, so why should we care?  W hen you dig deeper there’s actually something
really, really important happening here.  As any XRP hodler will tell you, the international
payment system is called SWIFT and it’s controlled by, guess who, the United States. The United States government controls who
can send payments, they can reverse payments, freeze payments and cut entire countries out
of the global financial system. Forget nuclear weapons, SWIFT is America’s
greatest source of power.  Now with that backstory, this is important.

The JPM coin subverts SWIFT. JPM clients who use the stablecoin don’t
have to use SWIFT and are not under the direct control of the United States government. How very interesting.  To be sure, JP Morgan is highly regulated
and is expected to conform to American laws, however, banks have a curious habit of breaking
laws and paying fines later on. If JP Morgan can make $10 billion by facilitating
money laundering, and only pay a $5 billion fine, history has shown us that they’ll
take the deal.  Anyways, this may all be years away. JPM coin is still in its infancy but as long
as the trials go well we’re definitely expecting usage to grow quickly. Will there be another Libra-style reckoning? Only time will tell.  Shout out to all Monero hodlers! While Alts have been struggling the last few
months, XMR has been on an awesome run. Besides price, what we’re also seeing is
an increased demand for Monero as a currency.

In terms of total fees, Monero has now surpassed
both Bitcoin Cash and Litecoin, two cryptocurrencies which sit well above XMR in the market cap
rankings.  What this tells us is that there is a real
demand for Monero transactions, and that Monero reclaiming its spot in the top 10 crypto rankings
is definitely not out of the question.  Privacy is becoming all the more important
as people wake up to the fact that Bitcoin transactions are there for anyone to see.

New blockchain analytic tools can easily link
a BTC wallet to its owner, which removes all traces of anonymity.  We can’t be sure that Monero transactions
will never be tracked, however, as of right now it seems like they’re safe. Just last month we saw the IRS announce a
half million dollar bounty to anyone who can crack Monero and de-anonymize transactions. This definitely had the unintended consequence
of giving Monero a nice bump, as it shows that Monero is still anonymous. A conglomerate of large automakers, including
BMW AG, AUDI and Porsche, have started working with Tezos. The automakers claim that the main reason
that they’re chosen the blockchain platform is that Tezos has the ability to easily make
changes to the code without a hard fork.  In fact this has traditionally been one of
Tezos’ biggest selling points, it has an on-chain governance system which makes updating
the code easier than on a platform like Ethereum.  The automaters also mentioned that they like
the fact that Tezos is fast and capable of supporting hundreds of transactions per second.

The need for a scalable smart contract platform
has never been more apparent, since we’ve seen Ethereum get so congested and fees go
through the roof.  Tezos will be used to validate the firmware
installed in cars, which seems like a great use case for a blockchain network. One of blockchain’s key advantages over
a database is that blockchains are immutable, nobody can change data that’s been recorded
to the chain. We’re happy to see that these automakers
have found a cryptocurrency that works for them, and we wish them and Tezos all the best.  Just another indication of the potential of
the crypto ecosystem, Is there a problem crypto cant solve? Hit us up in the comments to join the discussion
and hop over the the Exodus Blog to learn more about how crypto is impacting our everyday
lives in ways we may not even know.     Make sure to hit that like button and subscribe
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Thanks for joining us and Until next time, HODL on! .

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