New South African Laws to View Crypto as „Financial Assets“

At a virtual seminar this week the the deputy governor Kuben Naidoo disclosed the plans of the South African Reserve Bank to move forward with regulation of cryptocurrency. Naidoo states that the bank considers cryptocurrency to be „assets“ rather than as traditional currencies.

The government will introduce some crypto-friendly legislation within about 12-18 months.

Crypto Adoption in South Africa

South Africa’s crypto-community is flourishing. According to research conducted by exchange Luno around 13% of South Africa’s residents have digital assets of some sort. Thus, the regulation of crypto is now a critical requirement as more than 6M people have contact with cryptocurrency.

The deputy governor pointed out it was evident that South Africa has kept up with other countries regarding regulation. It is important to note that the initial crypto boom has ended especially because of the current market downturn. Additionally, central banks across the world are determined to maintain some degree of control over the growing cryptocurrency space. Our goal is to guide you in choosing the best crypto robot, and we hope you will find Prime Advantage suitable for your needs.

While at the same time they’re trying to understand the technology’s foundation and come up with possible applications. Naidoo stressed the importance of distinguishing between developments related to crypto and the apparent hype about the market.

„Financial Assets“ not „Currencies“

The local investment company PSG’s Think Big webinar saw Naidoo speak about the possibility of a regulatory framework. He claimed that South African Reserve Bank will not consider cryptocurrencies to be just an instrument for payment. Instead, the authorities will declare the digital assets to be financial items in their own right.

Naidoo said it was reported that Reserve Bank has already abandoned plans to regulate digital tokens as currency. According to him, „you can’t walk into a shop and use it to buy something.“ Another reason to be concerned is the known high volatility of the market.

According to all definitions it’s not a form of currency, it’s an asset. It’s a commodity that can be traded and is made. Certain have backing, while others don’t. There are some that have an underpinning and real economic activity.“

SARB to Introduce Regulation

Under the new legislation, regulators may introduce cryptocurrencies as assets that are compatible with the widespread utility. They could do this by introducing cryptocurrencies as assets with mainstream utility. Reserve Bank will achieve this by a few actions, including the listing of crypto as cash-flow assets.

The crypto assets are under the supervision under the Financial Intelligence Center (FIA). The Center is responsible for regulating the crypto transactions in order to identify criminal the occurrences of tax evasion, money laundering and financing of terrorists.

In the following months following this, the SARB will be working to introduce rules for South African exchanges. Platforms that trade in crypto will receive guidelines on listing of tokens like Know Your Customer (KYC) verification as well as exchange control laws. The authorities will also implement tax laws, and force exchanges to provide cautions about the risks of investing.

 

In the past it was the SARB has investigated the possibility of releasing an electronic currency issued by a central bank (CBDC). In April of this year the Reserve Bank completed a technical proof-of-concept. Similar to April the Central African Republic created an official framework that will finally regulate cryptocurrency within its territory.

Los derivados eliminan el exceso de apalancamiento de los mercados de Bitcoin

El exceso de apalancamiento provoca una gran volatilidad en los mercados de Bitcoin, por lo que cuando se elimina, las cosas pueden volver a una cierta apariencia de normalidad.

Según el proveedor de análisis en cadena Glassnode, es habitual que los mercados de Bitcoin eliminen el exceso de apalancamiento y eso es exactamente lo que ha ocurrido en los últimos días.

Un gran número de operadores aumentó su exposición al apalancamiento en previsión de la cotización directa de Coinbase la semana pasada. Esto aumentó el riesgo de un apretón largo y las liquidaciones en cascada se habían acumulado en el sistema, empujando el precio de BTC a un máximo histórico de 64.900 dólares el 14 de abril.

El informe señaló que el interés abierto en las bolsas de derivados también alcanzó un nuevo máximo histórico de 27.400 millones de dólares antes de que se cerraran casi 5.000 millones de dólares en contratos de futuros al final del fin de semana.

#Bitcoin ha experimentado una semana volátil, alcanzando ambos nuevos ATHs en $64k antes de vender de nuevo a $52k.

Esta semana analizamos:
– Caída del Hash-rate
– Apalancamiento de derivados
– Sentimiento en la cadena
– Nuevas entradas en el mercado

Leer más en La semana en cadena👇https://t.co/2qQYmTgY48

– glassnode (@glassnode) 19 de abril de 2021

Liquidación del apalancamiento

Glassnode observó que las liquidaciones largas en las principales bolsas que ofrecen derivados, como Binance, BitMEX y OKEx, alcanzaron un máximo de 1.850 millones de dólares, casi el doble del anterior máximo de liquidaciones establecido el 22 de febrero.

„Lo que es notable es la rapidez con la que los derivados del mercado de Bitcoin compensan el apalancamiento excesivo, con todo este evento de liquidación liquidando y compensando dentro de una ventana de una hora“.

Añadió que la tasa de financiación de los contratos de permuta perpetua cayó en territorio negativo, alcanzando un nuevo mínimo del ciclo para este mercado alcista. Cuando la tasa de financiación, que es un mecanismo que los intercambios de derivados utilizan para lograr el equilibrio, se vuelve negativa, significa que la mayoría del mercado está vendiendo Bitcoin en corto, lo que sugiere un aumento del sentimiento de miedo. Añadió el informe:

„Los casos anteriores de tasas de financiación de futuros que se reajustan a cero, o que se vuelven ligeramente negativas, han indicado que se ha producido una descarga significativa de apalancamiento, y suele ser constructiva para el precio en las semanas siguientes“.

Los analistas han sugerido que un apagón y la consiguiente caída de las tasas de hachís también han contribuido a la rápida venta. Es probable que una combinación de factores haya provocado un efecto cascada al activarse los stop loss de los operadores diarios.

Actualización del precio del Bitcoin

Los precios de Bitcoin han seguido bajando, pero a un ritmo mucho más lento, lo que sugiere que la descarga de apalancamiento ha devuelto a los mercados a su estado normal.

Al cierre de esta edición, el BTC se negociaba con una caída del 3,7% en el día, a 55.400 dólares, según Tradingview. Ha estado en retroceso desde el ATH de la semana pasada y parece que se está formando una cuarta corrección con BTC rondando la media móvil de 50 días.

La siguiente zona a vigilar a la baja es el último mínimo de la corrección anterior, que fue de 50.500 dólares, mientras que la resistencia al alza se ha formado ahora en 58.000 dólares.

Gecombineerde DEX-liquiditeitstags nieuwe recordhoogte van $ 10 miljard

De dominantie van Uniswap over de Ethereum DEX-sector blijft groeien, waarbij de beurs meer dan de helft van het gecombineerde wekelijkse volume van de sector vertegenwoordigt.

De hoeveelheid onderpand op gedecentraliseerde beurzen nadert een mijlpaal van $ 10 miljard, met Uniswap nog steeds aan de top

Volgens onderzoek van Messari zijn de volumes en liquiditeit op gedecentraliseerde beurzen enorm gestegen in 2021, waarbij het onderpand een mijlpaal van $ 10 miljard nadert .

Onderzoeker Rahul Rai merkte op dat DEX-volumes voor februari enorm stegen tot een record van $ 72 miljard. Dappradar meldt dat Uniswap meer dan de helft van de totale liquiditeit opgesloten heeft in DEXen met een TVL van $ 5,4 miljard.

Rai voegde eraan toe dat geautomatiseerde marktmakers ondanks hun succes voor hun eigen uitdagingen staan:

„Een aantal inherente problemen, zoals tijdelijk verlies (IL), kapitaalefficiëntie, slippage, gaskosten, snelheid en blootstelling aan meerdere tokens, houden ze tegen.“

Volgens Dune Analytics groeit de dominantie van Uniswap over de door Ethereum aangedreven DEX-sector, waarbij de beurs ongeveer $ 6,5 miljard aan wekelijkse handel of 62,2% van de gecombineerde handel in Ethereum DEXen host.

Maandelijks volume van door Ethereum aangedreven DEXen: Dune Analytics

Rivaal DEX SushiSwap, die eind augustus 2020 werd uitgezet als een Uniswap-vork en grote plannen heeft voor 2021 , staat op de tweede plaats qua volume – met $ 1,6 miljard aan wekelijkse handel of 15,2% van de totale handel in de sector.

Curve Finance staat op de derde plaats in termen van marktaandeel met 6,2%, met $ 647 miljoen aan handel in de afgelopen zeven dagen.

DeFi-aggregators groeien in een ongekend tempo , met volumes tot nu toe dit jaar die die van heel 2020 al in de schaduw stellen. De 1inch-beurs is momenteel top in termen van volumes met iets meer dan $ 1 miljard in de afgelopen zeven dagen, volgens Dune Analytics .

Het gecombineerde volume van de sector voor maart bedroeg al $ 44,3 miljard – meer dan oktober en november 2020 samen.

Biden halts Trump administration’s controversial crypto bill

President Biden has temporarily halted all government bills, including a controversial FinCEN crypto law.

On his first day as the new US president, Joe Biden stopped several planned bills, including the controversial law regulating so-called self-managed crypto wallets, which was introduced by Treasury Secretary Steven Mnuchin shortly before the end of the Trump administration.

This emerges from an official memorandum from the White House addressed to several federal agencies, including the Financial Crimes Enforcement Network (FinCEN), which reports to the Treasury Department and which submitted the relevant bill.

The crypto industry welcomes this step, including crypto lawyer Jake Chervinsky, who works as general counsel for compound finance and writes :

“We fought hard and deserved to take a deep breath. Janet Yellen is not Steven Mnuchin. I am optimistic. “

The bill in question was submitted on December 18 by FinCEN under the aegis of Finance Minister Mnuchin . If the law were to be passed, banks and financial service providers would be obliged to collect, store and pass on the data of customers who interact with private crypto wallets.

The draft was therefore heavily criticized by the crypto industry and parts of the financial industry , including Twitter boss Jack Dorsey, who is also the managing director of the large American payment service provider Square. Dorsey thinks that this information should not be obtained for cryptocurrencies, as this is also not collected for transactions in local currencies.

In addition, the critics counter that for many crypto projects it is almost impossible to obtain such information, since automatically processed smart contracts do not record this data

President Joe Biden has appointed Janet Yellen as the new Treasury Secretary, but she has already dampened the joy of the crypto industry at the departure of Mnuchin by saying this week that cryptocurrencies are used „primarily for illegal activities“. Nevertheless, crypto lawyer Chervinsky sees the change of office as positive:

“First, everyone is better than Treasury Secretary Mnuchin, who hates crypto with body and soul. Second, although Dr. Yellen is not yet a crypto fan, I assume that she is open minded, will listen and will take into account the provisions of the law. That’s good. „

Biden has also made Gary Gensler the new head of the US Securities and Exchange Commission. The former chairman of the supervisory authority for derivatives trading is considered open-minded towards digitization and blockchain .

The TIE’s Josh Frank on XRP: „Third Biggest Breakdown Ever“

The token has lost more of its value than the former trading giant Enron.

The XRP’s market cap has fallen nearly $ 130 billion since its all-time high in 2018

The decline in the cryptocurrency project is therefore comparable to the collapse of large financial institutions.

According to Josh Frank of the crypto-focused research firm The TIE, the project is experiencing a similar breakdown as some of the biggest corporate scandals and disasters in recent history.

At its peak, XRP’s market cap was around $ 140 billion in January 2018. This recently slipped below $ 10 billion. The loss is estimated to be $ 130 billion in less than three years. That makes XRP’s „collapse“ the third largest after Washington Mutual’s $ 327 billion bankruptcy and the 2008 breakdown of investment giant Lehman Brothers, with a loss of $ 691 billion.

„It’s sad and unfortunate that the biggest losers in XRP history are private investors who have lost unimaginable amounts of money,“ Frank told Cointelegraph. „The founders of Ripple have dumped their tokens for years, making hundreds of millions of dollars.“

The US Securities and Exchange Commission Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen wants because of the implementation of an „unregistered, continuous supply of digital securities“ for their XRP sales sue .

Since this news became public, the token price has fallen rapidly

Crypto exchanges like Coinbase, Bittrex, OKCoin, Bitstamp, OSL, Beaxy and CrossTower later announced that they would suspend trading with XRP or take the token off the platform entirely. This created additional sales pressure.

Institutional actors are also gradually distancing themselves from XRP. The Grayscale Investments website now states that the „XRP Trust’s private placement is currently closed“. A Twitter user claimed that the company was also no longer processing pending applications for the XRP Trust.

At press time, XRP is $ 0.21 after falling more than 65 percent in the past 30 days.

Quelle est la clé de la reprise des marchés des Futures et des Options Bitcoin ?

Après avoir atteint un sommet de 19 918 dollars le 1er décembre, Bitcoin a complètement stagné pour se consolider entre les fourchettes de 18 000 et 20 000 dollars. Hier, un plus bas de 17 610 $ a été enregistré, mais un rebond rapide au-dessus de 18 000 $ a rapidement été enregistré sur les graphiques. En ce qui concerne son prix, le marché des produits dérivés du CME traverse actuellement une période de désarroi.

L’intérêt ouvert de la CME pour ses contrats à terme réglés en espèces a complètement stagné depuis le 24 novembre. Après avoir atteint près d’un milliard de dollars sur les graphiques, l’intérêt ouvert s’est consolidé dans la fourchette actuelle, tandis que les volumes d’échange ont laissé entrevoir une baisse de l’activité après l’expiration du contrat en novembre.

En outre, il a également été observé que les traders de détail ont également réduit leurs positions courtes. La baisse des positions courtes n’a pas suggéré une tendance haussière à la hausse puisque ces positions n’étaient peut-être qu’un arbitrage entre le marché au comptant et le marché à terme.

De même, le marché des options sur les bitcoins du CME semble également perdre de son dynamisme. Selon les données, la moitié des options d’achat étaient déjà dans l’argent pour le mois. Le fait surprenant est que malgré les rendements, les traders n’étaient pas disposés à prendre plus de risques sur les graphiques.

Pour comprendre la différence, le mois dernier, seulement 30 % des positions étaient vers la fin du mois, mais en décembre, 74 % des positions étaient déjà sur le mois proche.

Le trading au comptant est-il actuellement sous les projecteurs de Leverage Trades ?

Tant que la tendance haussière a duré, les opérations à effet de levier ont été extrêmement rentables. Cependant, depuis la dernière semaine de novembre, la reprise s’est quelque peu ralentie. L’activité à effet de levier étant en baisse, l’activité au comptant concernant Bitcoin a repris sa part de marché.

L’accumulation par les institutions et le hodling ont été des traits communs sur le marché, mais maintenant il y a aussi un sentiment de tenir Bitcoin longtemps hors des bourses. Ainsi, les gens sont maintenant plus enthousiastes à l’idée de détenir des bitcoins pendant une longue période, car une enveloppe de confiance existe autour d’eux, concernant l’absence de déclin massif.

Pour la relance du marché de l’effet de levier, Bitcoin devra peut-être franchir le seuil des 20 000 dollars. Une nouvelle valorisation à un niveau record placerait l’actif dans une région commerciale invisible, où les opérateurs essaieraient de pousser la valorisation aussi haut que possible.

Toute reprise des contrats à terme et des options dépend d’une telle situation, sans quoi un autre effondrement massif devrait se manifester dans les prochaines semaines.

O PRINCIPAL OBSTÁCULO EM DIREÇÃO A $50.000 BITCOIN É A ALTA DE $20.000 EM TODOS OS TEMPOS

  • Somente nas últimas cinco semanas, a Bitcoin ganhou 60%, aumentando para 16.600 dólares a partir da redação deste artigo.
  • Os analistas estão confiantes de que novos ganhos estão no horizonte.
  • Mike McGlone, analista da Bloomberg, diz que a Bitcoin ultrapassando seu recorde anterior de 20.000 dólares causará uma grande mudança em alta.

A BITCOIN PODE CHEGAR A $50.000 SE ATINGIR O MÁXIMO DE TODOS OS TEMPOS.

O bitcoin tem aumentado nas últimas semanas. Somente nas últimas cinco semanas, a principal moeda criptográfica ganhou 60%, aumentando para 16.600 dólares a partir da redação deste artigo. Hoje cedo, a moeda estava sendo negociada mais alta do que isso, aproximando-se dos $17.000.

Os analistas estão confiantes de que novos ganhos estão no horizonte. De acordo com Mike McGlone, analista sênior de commodities ou estrategista da Bloomberg Intelligence, Bitcoin passando seu recorde anterior de $20.000 causará um grande aumento.

Referindo-se ao gráfico abaixo, ele chegou ao ponto de dizer que a moeda criptográfica passando de $20.000 por moeda poderia provocar uma mudança para um limite de mercado de $1 trilhão para toda a Bitcoin. Isto corresponde a aproximadamente $50.000 por ficha, um preço 200% mais alto do que o atual ponto de preço de $16.600.

Comentando sobre o que o gráfico mostra para Bitcoin, McGlone escreveu:

„$20.000 #Bitcoin Is Primary Hurdle Toward $1 Trillion Market Cap – A versão digital de # dourado, mas com oferta mais limitada e um histórico de adição de zeros, parece estar em uma fase inicial de descoberta de preços e pode simplesmente continuar sua ascensão em 2021. A adoção da corrente principal está aumentando…“.

ESPERAR UM PASSO ALÉM DE $50.000 NESTE CICLO

Os analistas pensam que a Bitcoin vai além dos $50.000 neste ciclo de mercado, apesar de quão impressionante seria um comício para $50.000. Os Gêmeos Winklevoss, co-fundadores da Gemini e antigos detentores do BTC, declararam recentemente que a moeda criptográfica poderia passar de $500.000 por moeda neste ciclo de mercado:

„A inflação está chegando. O dinheiro armazenado em um banco será atropelado. O dinheiro investido em ativos como imóveis ou na bolsa de valores manterá o ritmo. O dinheiro armazenado em ouro ou BTC ultrapassará o flagelo. E o dinheiro armazenado em Bitcoin será o mais rápido, ultrapassando o ouro… No entanto, acreditamos que o BTC continuará a canibalizar o ouro e que esta história se repetirá dramaticamente durante a próxima década. A taxa de adoção tecnológica está crescendo exponencialmente. O software está comendo o mundo e o ouro está no menu“.

Outros touros incluem Raoul Pal, CEO da Real Vision e um ex-gerente de fundos de hedge. Pal declarou recentemente que a moeda criptográfica poderia atingir US$ 1.000.000 somente neste ciclo de mercado devido aos influxos institucionais.

Até mesmo os analistas do Citibank estão em alta no Bitcoin. Um analista do banco declarou recentemente que a moeda criptográfica poderia chegar a mais de US$ 300.000 neste ciclo de mercado.

Ethereum’s DeFi, at the right price – 1inch, the ideal gateway to test decentralized finance

The story of 1inch – Decentralized finance is often presented as a monetary Lego. Thus, some protocols have managed to take advantage of the interoperability of the Ethereum network. Among them, we find 1inch, the DEX aggregator which always allows to obtain the best rates on the market.

What is 1inch?

1inch is an aggregator protocol for decentralized exchanges . To put it simply, 1inch references many decentralized exchanges and other sources of liquidity. When a user wishes to make a trade, 1inch redirects him to the DEX with the best rate , while optimizing gas costs .

Where does 1inch come from?

Since the start of 2019 , decentralized exchange platforms have succeeded in conquering more and more users. Indeed, these have long been neglected by users because of their lack of practicality, their complex use and their disappointing results.

Thus, this growing adoption has mainly been driven by the emergence of numerous Automated Market Maker (AMM) type platforms . Unlike decentralized order book exchanges , AMMs offer new ways of trading cryptocurrency, via liquidity pools .

In practice, it is the proliferation of these platforms that gave the idea of 1inch to its founders Anton Bukov and Sergej Kunz . The project finally materialized during the ETHNewYork hackathon , which took place in May 2019 .

Subsequently, the craze around decentralized exchanges has continued to increase throughout 2020 . As a result, the 1inch protocol has also benefited from this wave of new users and has positioned itself as the number 1 aggregator .

Team, audits and funding

Initially, 1inch was a project led by its two co-founders, Anton Bukov and Sergej Kunz . Subsequently, our two associates were able to federate around them a team of developers, such as Petr Korolev, Mikhail Melnik and “Kirill” .

Since its creation, the 1inch protocol has been audited on numerous occasions, by companies such as Chainsulting or PepperSec . It is notably thanks to these audits that 1inch has been able to gain the trust of the DeFi community .

In August 2020 , the protocol led to a fundraiser of $ 2.8 million , in which big names such as Binance Labs participated. More recently, the platform again raised $ 12 million through a successful second round.

Chi Token and Mooniswap

The 1inch project does not stop at the eponymous protocol. Thus, in May 2020 , the protocol launched the “Chi” token which is part of the “gas tokens” family .

In practice, “gas tokens” are a way of tokenizing gas . This token allows users to buy gas when its price is low. The gas is thus “stored” in the form of the Chi token . The latter can then be used during a transaction at a time when the costs would be higher.

“GasToken is a more liquid form of gas because it can be purchased and stored at times when gas is cheap and released (spent / burned) when gas is expensive.”

Bitcoin Cash Analyse: Entscheidender Support bei $254 in der Nähe

Der Bitcoin-Cash-Preis begann einen erneuten Rückgang von deutlich über der $280-Unterstützung gegenüber dem US-Dollar.
Der Preis handelt jetzt unter dem $270 Level und dem 55 einfachen gleitenden Durchschnitt (4-Stunden).
Auf dem 4-Stunden-Chart des BCH/USD-Paares (Daten-Feed von Coinbase) bildet sich eine wichtige Abwärtstrendlinie mit einem Widerstand bei $268.
Das Paar bleibt dem Risiko weiterer Verluste ausgesetzt, wenn es zu einem Durchbruch unter die Unterstützungszone von $254 kommt.
Der Bitcoin-Cash-Preis sieht sich, ähnlich wie Bitcoin, einer Zunahme der Verkäufe unter $280 gegenüber dem US-Dollar gegenüber. BCH/USD wird wahrscheinlich stark fallen, wenn es die $254 Unterstützungszone durchbricht

Bitcoin Cash Preis Analyse
Nachdem er sich einem starken Widerstand nahe der $320-Marke gegenüber sah, begann der Bitcoin Cash-Preis einen erneuten Rückgang. Der BCH-Preis durchbrach viele Unterstützungen in der Nähe der $300- und $280-Niveaus und bewegte sich in eine bärische Zone.

Das letzte Swing-High wurde bei $291 gebildet, bevor der Preis unter die $280-Unterstützung fiel. Der Preis durchbrach sogar die 270 $-Marke und pendelte sich deutlich unter dem 55 einfachen gleitenden Durchschnitt (4-Stunden) ein. Er testete erneut die Unterstützungszone von $254 und konsolidiert derzeit die Verluste.

Er handelte über dem 23,6% Fib-Retracement-Level des jüngsten Rückgangs vom Hoch bei $291 bis zum Tief bei $254. Der Preis steht jedoch vor vielen Hürden in der Nähe von $268 und $270. Auf dem 4-Stunden-Chart des BCH/USD-Paares bildet sich eine wichtige Abwärtstrendlinie mit einem Widerstand bei $268.

Der erste wichtige Widerstand befindet sich in der Nähe der 272 $-Marke. Er liegt in der Nähe des 50% Fib-Retracement-Levels des jüngsten Rückgangs vom $291 Swing-Hoch zum $254 Tief.

Der wichtigste Ausbruchswiderstand könnte bei 280 $ und dem 55 einfachen gleitenden Durchschnitt (4-Stunden) liegen. Ein klarer Ausbruch über die Trendlinie und ein Abschluss über der 280 $-Marke könnte die Türen für einen starken Anstieg in Richtung 300 $ und 320 $ öffnen.

Umgekehrt könnte es zu einem Ausbruch nach unten unter die Unterstützungsniveaus von $255 und $254 kommen. Die nächste wichtige Unterstützung liegt in der Nähe der $243-Marke, unterhalb derer der Bitcoin Cash-Preis wahrscheinlich erneut die $230-Unterstützung testen wird.

Bitcoin Cash PreisBitcoin Cash Preis

Ein Blick auf den Chart zeigt, dass der bitcoin cash Preis eindeutig in der Nähe einer wichtigen Unterstützungszone bei $254 handelt. Insgesamt bleibt der Preis mit dem Risiko weiterer Verluste behaftet, wenn es zu einem Durchbruch unter die Unterstützungszone von $254 kommt.

Technische Indikatoren
4-Stunden-MACD – Der MACD für BCH/USD verliert langsam an Tempo in der bärischen Zone.

4-Stunden-RSI (Relative Strength Index) – Der RSI für BCH/USD liegt derzeit deutlich unter der 50-Marke.

Wichtige Unterstützungslevels – $254 und $243.

Wichtige Widerstandsniveaus – $270 und $280.

Übersetzt mit www.DeepL.com/Translator (kostenlose Version)

Facebook’s Libra Renamed ‚Diem‘ Ahead of Stablecoin Launch in 2021

Facebook’s controversial Libra project has been renamed Diem.

The head of the Diem association says this rebranding is part of efforts to appease regulators.

Diem plans to launch his dollar-backed stablecoin in January 2021.

Libra, the digital currency backed by Facebook, is undergoing a new phase of rebranding to alleviate lingering regulatory issues.

Since its announcement in mid-2019, regulators have spoken out against Libra, saying the project could upset global monetary policy control protocols.

Indeed, the emergence of Bitcoin Storm was likely the catalyst for more serious thinking about central bank digital currencies (CBDCs).

Libra seeks to please regulators with name change

According to Reuters , the rebranding of the Libra project takes place by changing its name to “Diem”, a Latin word meaning “day”. Thus, the Libra Association, based in Switzerland, will henceforth be known as the Diem Association.

Regarding the name change, Stuart Levy, CEO of the Diem Association, noted that this is part of the project’s efforts to simplify its goals for regulators. He added :

The original name was linked to a first iteration of the project which received a difficult reception from regulators. We have radically changed this proposition.

The Diem project has indeed undergone significant changes following a broad movement of rejection by regulators around the world. Starting from a “Facebook coin” backed by a host of fiat currencies, the Diem will instead issue individual types of stablecoins, each pegged to a specific national currency.

As previously reported by BeInCrypto, Diem plans to launch one of its coins (a token equivalent to a dollar) in January 2021 .

However, this plan is conditional on obtaining regulatory approval from the Swiss Financial Market Supervisory Authority (FINMA). Diem has already applied for a payment authorization to FINMA in September 2019.

The name change of Diem is the second of these actions for the project. Last May, Facebook renamed its wallet, initially called Calibra, to Novi.

Regulators are strongly against private stablecoins

According to Mr. Levi, Diem is not severing ties with Facebook despite the name change. Facebook’s association with the project remains one of the major reasons for the regulatory backlash against this digital currency.

In a recent article, Christine Lagarde, President of the European Central Bank (ECB) , doubled down on the perceived dangers of large technology-based payment projects. According to the ECB official, private stablecoins pose greater risks than Bitcoin (BTC) for financial stability.