Highlights of the past crypto week that may indicate upcoming rough patches for cryptocurrency:
PayPal has officially given up on Libra Association
PayPal has ditched the Libra Association which is the governing body of Libra, Facebook’s embattled digital currency and is now official. Though the payment processing company agrees with remaining supportive of Facebook’s digital currency’s hopes, but it was not present in the meeting that was attended by 28 other Libra supporters on Thursday.
Now Facebook is worried whether others would follow suit. In a Wednesday report, it is suggested that Visa and Mastercard are also uncertain about if they want to become paid-up participants. A few companies believed exaggerated claims of Facebook about regulators being comfortable with the concept of Libra – Which evidently doesn’t seem to be the case given the recent fallout. These companies also fear that the regulatory scrutiny directed at Libra could end up affecting their businesses as well.
In the meantime, American banks that are members of the Federal Advisory Council have warned that Libra could potentially create and operate a “shadow banking” system- which could significantly reduce bank payment volumes.
BTC has been stagnant for $8,000 for a while whereas altcoins observe mixed movements
Crypto traders who were aspiring to see some signs of recovery in crypto prices have been, again, left utterly disappointed in the past week. Although Bitcoin has witnessed a little volatility but is has ultimately struggled to reach beyond the $8,000 price point that was established in the crash before last week. In a fake breakout, BTC leapt from $ 7,746, the seven days low directly to the height of $8,480 during 29th Sept and 1st Oct.
However, the gains did not last and the most dominating crypto token retracted to its primary price level. Bitcoin needs to gain momentum upwards prior to altcoins can start to outperform it. Additionally this week, Bakkt’s institutional launch has been considered as a factor in the price slip of Bitcoin in a market overview.
Prime crypto exchanges based in the U.S. to jointly determine which crypto tokens are securities
Kraken, Coinbase among other established crypto exchanges in America have teamed up to initiate a launch of a rating system which will categorize digital assets that can be considered as securities. This Crypto Rating Council has been designed to offer more clarity on the choice of tokens that can be exchanged without needing the supervision from regulators.
The assets will be scored on a scale of 1-5 with 5 or highest score depicting that the certain crypto token can be considered as a security not to be issued, traded via trading systems or sold by unregulated firms. There is hope among executives that the U.S. Securities and Exchange Commission might receive this as a positive step. However, critics have been quick to claim the council’s assessments as compromised by conflicts of interests.
Apple declares it won’t create a digital currency as Facebook
Tim Cook, CEO of Apple, has clearly stated the company’s thoughts on the notion of Apple intending to create a digital currency. Cook stated while speaking with French media about how he thinks cryptocurrency is best handled by the hands of the state. He personally isn’t comfortable and thinks that a private commodity like crypto tokens are the modern currency.
This remark of Tim could be can be considered a diss at Facebook’s Libra. It is also a take on his executives too, as last month vice president of Apple Pay, Jennifer Bailey, confirmed Apple saw a long-term potential in the crypto business.