Edited by: Bi LumingYesterday was still Little Sweet, today is Lady Niu?According to a report by the Securities Times on March 5th, the world's richest man, Musk, recently made a statement in the "coin circle", stating on social media that he was once obsessed with cryptocurrencies and is now very interested in AI. At the same time, the sudden "explosion" of cryptocurrency trading bank Silvergate has also sparked a panic storm in the currency industry
Yesterday was still Little Sweet, today is Lady Niu?
According to a report by the Securities Times on March 5th, the world's richest man, Musk, recently made a statement in the "coin circle", stating on social media that he was once obsessed with cryptocurrencies and is now very interested in AI. At the same time, the sudden "explosion" of cryptocurrency trading bank Silvergate has also sparked a panic storm in the currency industry. On March 3rd, the price of Bitcoin plummeted, plummeting by over 5% in just one hour, and its market value instantly evaporated by $22 billion (approximately 150 billion yuan). As of press release, Bitcoin is currently trading at $22348.41, up 0.0417%.
Coin Circle "Horror"
The world's richest man, who likes the new and dislikes the old, suddenly abandoned the currency circle. According to the Securities Times,On March 3rd local time, Tesla CEO Musk stated on Twitter on March 3rd, "I used to be obsessed with cryptocurrency, but now I am very interested in AI
At the same time, the sudden "explosion" of cryptocurrency trading bank Silvergate has also sparked a panic storm in the currency industry.On March 3rd, the price of Bitcoin plummeted, plummeting by over 5% in just one hour, reaching a two-week low of $22000 per coin, and its market value instantly evaporated by $22 billion (approximately RMB 150 billion).
At the same time, tokens such as ETH, Avalanche, and DOGE have also experienced varying degrees of decline. Some analysts believe that this plunge in the cryptocurrency market is related to the dispute over Silvergate's delayed submission of its annual financial report for the 10-K period.
On March 2nd local time, Silvergate stated in its filing with the US Securities and Exchange Commission that it was unable to submit its annual 10-K report in a timely manner and was evaluating its ability to continue operating. In addition, Silvergate's business partners have urgently announced the cutoff of their business dealings, and the cryptocurrency exchange Coinbase, cryptocurrency bank Galaxy Digital, and cryptocurrency company Paxos have decided to stop accepting or initiating payments through Silvergate.
It should be noted that Silvergate Bank provides a widely used payment network that facilitates real-time fund transfer between encrypted companies. The Digital Asset Exchange IndependentReserve stated that Silvergate is one of the major US dollar banking providers in the cryptocurrency industry. Any liquidity issue will have a direct impact on market conditions.
At the same time, US regulatory authorities are also increasing efforts to restrict connections between banks and cryptocurrency companies. The current market is concerned that US regulatory authorities are attempting to sever the business relationship between cryptocurrency companies and FDIC insurance banks.
Tesla CEO Musk Image source: Visual China
IMF: Cryptocurrency will not be a currency
According to a report by Fox Business News on February 24th, the International Monetary Fund (IMF) has formulated a nine point action plan on how countries should treat cryptocurrencies. The most important point is to "maintain currency sovereignty and stability by strengthening the monetary policy framework, and not grant cryptocurrencies such as Bitcoin official or legal tender status".
Other measures include preventing excessive capital flow, adopting clear tax rules and laws on crypto assets, and establishing and regulating regulatory requirements for all crypto market participants. The International Monetary Fund has stated that several cryptocurrency exchanges have gone bankrupt in the past few years and it is now necessary to take action.
According to Pengpai News, on February 23 local time, the official website of the International Monetary Fund released a press release stating that the IMF Executive Board has evaluated a document called "Effective Policy Elements for Cryptographic Assets" (hereinafter referred to as the "Document") and agrees with the proposed policy framework and elements in the document.
The document was prepared by IMF staff on January 4th and reviewed by the IMF Executive Board on February 8th. The document aims to solve the problems of IMF member states on how to deal with the expansion of crypto assets and related risks, and proposes a framework consisting of nine policy elements (or policy actions), involving macro finance, law, regulation and international coordination, to provide guidance for member states to formulate appropriate policies on crypto assets.
The IMF Executive Board emphasizes that significant potential risks to cryptocurrency assets have emerged, including macroeconomic risks, monetary policy effectiveness risks, capital flow volatility risks, and fiscal risks. In particular, the widespread adoption of encrypted assets may undermine the effectiveness of monetary policy, bypass capital flow management measures, and exacerbate a country's fiscal risks. In the long run, the widespread adoption of Bitcoin may also have a significant impact on the international monetary system.
Daily Economic News, Comprehensive Securities Times, CCTV Finance, and Pengpai News
Daily Economic News
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
