19.01.202207:04 Forex Analysis & Reviews: Banks are preparing to issue their own stablecoins

Bitcoin, ether, and several other altcoins from the top hundred by capitalization continue their decline. The heated debate on the need for a more aggressive monetary policy in the United States is pushing investors away from investing in cryptocurrencies to protect against inflation. The US bond market is starting to become more attractive again, which is forcing large traders to shake up their portfolios.

Meanwhile, there is also talk about when the digital dollar will appear and how it will affect the entire financial system. Yesterday, in his interview, the executive director of Silvergate Capital Corp. Alan Lane said that the launch of a digital currency supported by the US central bank is likely to take place in a few years. He also noted that commercial banks are not very worried about this, because, despite all the concerns, many are already developing their stablecoins, which they plan to launch into circulation.

"If the US CBDC (central bank digital currency) is launched, and it is a consumer— and retail-oriented CBDC, it will create significant competition to any other existing stablecoin," Lane said.

However, it is unlikely that the Federal Reserve System will launch its digital dollar in the near future, since it takes much longer: it is necessary to eliminate all risks, from digital fraud to the split of the financial and banking system.

Recently, stablecoins tied to traditional currencies have become a vital part of the cryptocurrency industry, as investors often use them to buy and sell other digital assets. The Fed and US regulatory authorities have previously stated that stablecoins need regulation and should be issued only by banks. More recently, Fed Chairman Jerome Powell noted that the central bank plans to publish a report on digital currencies in the coming weeks, which only fueled the interest of market participants in this issue.

Executive Director of Silvergate Capital Corp. Alan Lane also noted that his company intends to become an issuer of a US dollar-backed stablecoin in the near future. Most recently, Silvergate Capital Corp. updated the application in the Department of Financial Services of New York for the creation of a trust company to store dollar reserves, under which the stablecoin will be issued.

More recently, I drew attention to the fact that the Singapore authorities have largely taken up cryptocurrency advertising campaigns. According to yesterday's reports, cryptocurrency ATMs - one of the visible reminders of the growing appetite of Singaporeans for digital tokens - are closing. All this is the result of the authorities' struggle with the serious marketing of cryptocurrencies.

Daenerys & Co., Singapore's largest operator of cryptocurrency ATMs has discontinued its services following the order of the Monetary Authority of Singapore. This was announced by the company yesterday. "MAS's new recommendations regarding ATMs came as a surprise," Daenerys & Co. noted.

Five ATMs, mostly located in shopping malls in Singapore, offered people a convenient way to buy cryptocurrencies such as bitcoin and ether for fiat currency.

As for the technical picture of bitcoin

Although trading is conducted above the support of $ 40,520, apparently the bulls will not soon reach the resistance of $ 44,300. The lack of activity of traders in recent years gradually leads to the increase of another panic and the closure of several long positions by speculative traders. Only going beyond the range of $ 44,300 will open a direct road to a maximum of $ 47,840, from which $ 51,800 is at hand. If the pressure on the trading instrument persists in the near future, and we see a breakdown of $ 40,520, in this case, it is better not to wait for anything good in the near future. I advise you to be patient, waiting for the update of the lows: $ 37,380 and $ 33,830.

As for the technical picture of the ether

The bulls' goals did not materialize and the pressure on the market began to gradually return. While trading will be conducted below the $ 3,220 range, the pressure on the trading instrument will remain quite high. To return demand, a breakdown of $ 3,220 is needed, which will open the way to $ 3,430, with the prospect of recovery to the highs of $ 3,670 and $ 3,880. In the event of a further decline in the trading instrument, all that buyers can count on is $ 2,990. A break of this range, a direct path to the lows: $ 2,720 and $ 2,440.