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Singapore’s central bank and state investment firm have created a prototype multi-currency blockchain-based payments network together with JPMorgan.

A Nov. 11 report from The Business Times indicates that the prototype is designed to enable payments denominated in different currencies to be completed on the same network.

Interfaces with other blockchain networks

The Monetary Authority of Singapore (MAS) —  the city state’s de facto central bank — led the development of the new solution, working in conjunction with state investment firm Temasek Holdings and the United States’ largest bank, JPMorgan Chase. 

The latter has acted in the capacity of infrastructure provider for the prototype’s development,  which forms part of the bank’s existing research project “Ubin.” Ubin is now in its fifth phase and has to date focused on applications such as the use of blockchain for clearing and settling payments and securities.  

MAS expects the new network to provide businesses with significant cost efficiencies. The prototype is reported to provide interfaces for other blockchain networks to connect and integrate without friction. 

In a statement, MAS chief fintech officer, Sopnendu Mohanty, has indicated the broader ambitions of the partners, noting that:

“We look forward to linking up with more blockchain networks to improve cross-border connectivity. This will be a big step forward in making cross-border transactions faster, cheaper and safer.”

Under the aegis of Ubin, the partners have proceeded beyond technical experimentation to investigate the prototype’s commercial viability, engaging with over 40 financial and nonfinancial firms to explore the network’s numerous potential benefits.

Major transnational consultancy firm Accenture has been commissioned to publish a report with the results of the prototype by early 2020, which will also indicate additional features that could be provided by the network in the future.

Long-term developments

This fall, JPMorgan Chase CEO Jamie Dimon said that Facebook’s prospective Libra stablecoin is “a neat idea that will never happen” — hardening his earlier opinion of the project’s prospects. JPMorgan itself is reportedly expecting to pilot its own digital token, JPM Coin, by the end of 2019.

In a report published almost a year ago today, MAS published an in-depth report together with the central banks of Canada and the United Kingdom, which argued that central bank digital currencies can help to improve counterparty credit risk for cross-border interbank payments and settlements.

Cointelegraph By Marie Huillet , 2019-11-11 08:03:00 ,

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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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