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European Central Bank (ECB) board member Benoit Coeure has warned that global stablecoins remain untested and raise potential risks across multiple policy domains.  

Coeure, a member of the ECB’s Executive Board, made his remarks at the Joint Conference of the ECB and National Bank of Belgium on Nov. 26, in a speech entitled “Crossing the chasm to the retail payments of tomorrow.”

Global stablecoins pose broad policy risks

Coeure’s speech was focused on the failure to establish a pan-European, market-led solution for digital retail payments. 

Notwithstanding progress with back-end initiatives like SEPA and the TARGET Instant Payment Settlement (TIPS) system, no pan-European solution has made equivalent progress in point-of-sale and online payments, he said. 

The EU is thus “at risk of losing its economic edge,” with national fragmentation paralyzing competition and stifling innovation on the pan-European level, in his view.

Twenty years after the introduction of the euro, this failure to harmonize cross-border payments services has spurred consumer interest in faster and cheaper alternatives and new ecosystems. Here he warned against the potential risks of Europe’s reliance on new global initiatives:

“Global stablecoin arrangements […] raise potential risks across a broad range of policy domains, such as legal certainty, investor protection, financial stability and compliance with anti-money laundering requirements. Public authorities have made clear that the bar will be set very high for these stablecoin initiatives to be allowed to operate.”

Couere continued to underscore that dependence on non-European global players generates a strategic risk to the “autonomy and resilience of European payments systems.”

Central banks should not stifle private sector

Coeure further noted that central banks will need to adapt their policies and instruments to respond to new consumer protection and monetary policy transmission challenges as emerging technologies reshape consumer payment behavior. 

He noted that the ECB is investigating whether central bank digital currencies could ensure that citizens “remain able to use central bank money even if cash is eventually no longer used,” but noted the need to remain mindful of their broader impact on financial intermediation.

Potential central bank-led initiatives, however, should not crowd out private-sector players seeking to develop fast and efficient retail payments in the euro area, Coeure stressed.

As Cointelegraph reported, Couere has consistently taken a circumspect line regarding global stablecoin payments systems, the discussion of which has intensified since Facebook unveiled its Libra project.

Libra has received a frosty response from multiple European lawmakers, including French finance minister Bruno Le Maire, who has warned that Libra should not be authorized on European soil as it would imperil the monetary sovereignty of states.

Cointelegraph By Marie Huillet , 2019-11-26 14:50:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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