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Russia, China, BRICS Plan New International Reserve Currency

Jamie Redman wrote . . . . . . . . .

During the last month, the West has been struggling with red hot inflation and energy prices skyrocketing higher. Politicians in the UK, Europe, and the US have been trying to blame the economic calamity on a number of things like the Ukraine-Russia war and Covid-19.

Data from last month’s consumer prices in America and Europe have climbed to all-time highs and many analysts say Western countries are in a recession or about to experience one. Meanwhile, at the end of June, members of the BRICS nations met at the 14th BRICS Summit to discuss world affairs.

During the BRICS Summit, Russian President Vladimir Putin announced that the five-member economies — Brazil, Russia, India, China, and South Africa – plan to issue a “new global reserve currency”.

“The matter of creating the international reserve currency based on the basket of currencies of our countries is under review,” Putin said at the time. “We are ready to openly work with all fair partners,” he added. Additionally, Turkey, Egypt, and Saudi Arabia are considering joining the BRICS group. Analysts believe the BRICS move to create a reserve currency is an attempt to undermine the US dollar and the IMF’s SDRs.

“This is a move to address the perceived US hegemony of the IMF,” ING Global Head of Markets Chris Turner, explained at the end of June. “It will allow BRICS to build their own sphere of influence and unit of currency within that sphere.”

While the news of a reserve currency created by BRICS may be a surprise to some, specific accounts about the member countries countering the US dollar have been reported on for quite some time. At the end of May 2022, a Global Times report noted members were urged to end their dependence on the dollar’s global dominance.

Putin explained the following month that “contacts between Russian business circles and the business community of the BRICS countries have intensified”. The Russian President further noted that Indian retail chain stores would be hosted in Russia, and Chinese cars and hardware would be imported regularly. Putin’s recent statements and commentary at the BRICS Summit have made people believe the BRICS members are not “just a ‘talk shop’ anymore”.

In addition to South Africa, Russia has also increased foreign aid and has delivered weapons to Sub-Saharan African countries. Furthermore, Putin and other BRICS leaders have been targeting US hegemony and exceptionalism in specific statements published by the media.

At this year’s St. Petersburg International Economic Forum, Putin addressed the crowd with a 70-minute speech and talked about the US ruling the world’s financial system for years. “Nothing lasts forever,” Putin said. “(Americans) think of themselves as exceptional. And if they think they’re exceptional, that means everyone else is second class,” the Russian President told the forum attendees.

Speaking with Russian ambassadors in a biennial speech, Putin said the West was weakening a great deal in terms of economic power.

“Domestic socio-economic problems that have become worse in industrialised countries as a result of the (economic) crisis are weakening the dominant role of the so-called historical West,” Putin remarked to the ambassadors. “Be ready for any development of the situation, even for the most unfavorable development.”

Russia and Putin have been saying that the US dominance in the world of finance has been dying for years now. In October 2018, speaking at the Valdai forum, Putin said the US sanctioning specific countries (including Russia) would undermine trust in the US dollar.

The Russian President noted that most of the fallen empires have made the same mistake. “It’s a typical mistake of an empire,” the Russian leader declared at the time. “An empire always thinks that it can allow itself to make some little mistakes, take some extra costs, because its power is such that they don’t mean anything. But the quantity of those costs, those mistakes inevitably grows.” Putin continued:

“And the moment comes when it can’t handle them, neither in the security sphere or the economic sphere.”

Moreover, in June, Bloomberg published a report about the BRICS Summit and noted that China’s President Xi Jinping suggested that the North Atlantic Treaty Organiaation (NATO) was responsible for antagonising the Russian Federation. Xi also said that certain countries that bolster exceptionalism will falter by suffering from security vulnerabilities.

“Politicising, instrumentalising, and weaponising the world economy using a dominant position in the global financial system to wantonly impose sanctions would only hurt others as well as hurting oneself, leaving people around the world suffering,” Xi detailed. “Those who obsess with a position of strength, expand their military alliance, and seek their own security at the expense of others will only fall into a security conundrum.”

The strengthening of the BRICS nations has been going on well before the conflict in Ukraine began. For instance, in 2014, Russia fully developed ​​the System for Transfer of Financial Messages (SPFS), and later the Mir payment system was launched. That same year, in response to the annexation of Crimea, Russia started to stockpile gold in vast amounts.

China has been hoarding massive amounts of gold as well, as both countries hiked their gold reserve purchases a great deal a few years before the war. Russian banks also joined the China International Payments System (CIPS) making it easier for the two countries to trade. In April last year, China opened its borders to billions of dollars of gold imports, according to a report from Reuters.

Since World War I, the US dollar has been the world’s global reserve currency and America emerged as the largest international creditor. Fast forward to today, and the dollar is booming against a number of other currencies, and the US dollar is the most robust it has been in an entire generation. The US dollar currency index (DXY) gained over 10% this year and outpaced strong currencies like the Japanese yen.

Just recently, the euro met parity with the dollar, and other currencies like the Indian rupee, Polish zloty, Colombian peso, and the South African rand have faltered against the greenback in recent times. However, the Russian ruble has been a strong competitor to the dollar this year and has been one of the best-performing fiat currencies in 2022.

With inflation soaring and interest rates getting hiked by the Federal Reserve, Kamakshya Trivedi, the Co-Head of a market research group at Goldman Sachs stressed that it’s been a “pretty tough mix” to deal with. Despite the uncertainty, the analyst at Goldman Sachs thinks the dollar, at least for now, will remain robust. But in comparison to the greenback’s recent spike in value, most of that rise is in the past, Trivedi remarked.

“For now, we still expect the dollar to trade on the front foot,” Trivedi wrote on 16 July. “There might be a bit more to go, but probably the largest part of the dollar move may well be behind us.”

Source : The Morning

China Vows Privacy, Information Protection in Using Digital Yuan

China will fully respect privacy and protect personal information in using the digital yuan, state media quoted a senior central bank official as saying on Sunday, as Beijing encourages greater adoption of e-CNY.

Limited anonymity is a key feature of the digital yuan, Mu Changchun, director-general of the central bank’s Digital Currency Research Institute said, noting it ensures reasonable anonymous transactions.

“On the other hand, it also prevents and combats illegal activities including money laundering, terrorist financing and tax evasion, maintaining the need for financial security,” the Securities Times quoted Mu as saying at a forum.

The People’s Bank of China is a front-runner in developing and issuing a central bank digital currency (CBDC), which in the case of the e-CNY will be a traceable replacement for notes and coins.

Other central banks are looking at developing CBDCs to modernize their financial systems, ward off competition from cryptocurrencies such as bitcoin and speed up domestic and international payments.

China’s efforts are among the most advanced globally, and the country has been running various trials and pilot schemes of different payment scenarios in recent years.

Mu also said the e-CNY, which is the digital version of fiat currency issued by the PBOC, can be used to purchase anything that can be bought with banknotes and coins.

“Banknotes and coins can buy gold and convert foreign currency, so does the e-CNY,” he said.

In May, some cities distributed free digital cash to revive consumption and help businesses hit by pandemic curbs, with more e-CNY applications expected in future to boost transparency and effectiveness of government policies.

Source : Financial Post

Chart: Where Central Banks Have Issued Digital Currencies

Source : Statista

G10 Currency (Percentage Change) vs. USD since June 1, 2021

Source : Bloomberg and Trading Economics

Is the Chinese Yuan Beginning to Chip Away at Dollar Dominance?

China appears to be chipping away at dollar dominance.

While there is no indication that the dollar is in imminent danger of toppling from its perch as the global reserve currency, more central banks are warming up to the yuan.

According to UBS Asset Management’s annual reserve manager survey, about 85% of central banks said they are invested in or are considering investing in the Chinese yuan. That’s up from 81% a year earlier.

USB surveyed 30 top central banks.

On average, central bank foreign exchange managers plan to hold about 5.8% of reserves in yuan within the next 10 years. That would represent a sharp increase from the 2.9% level of global reserve yuan holdings reported by the International Monetary Fund in late June.

Meanwhile, the average share of US dollar holdings dropped to 63% as of June 2022, according to the survey. That was down from 69% in the previous year.

According to Business Insider, the response to the invasion of Ukraine “has increased talk about a ‘multipolar’ world, in which the US is no longer the overwhelmingly dominant force.

There is some speculation that the weaponization of the dollar to punish Russia for the invasion of Ukraine has motivated some countries to diversify away from the dollar. Less exposure to the greenback means less exposure to diplomatic and economic pressure from Washington DC.

Declining confidence in the dollar started long before recent events in Ukraine. The Federal Reserve printed trillions of dollars out of thin air in response to COVID-19. This devalued the dollar as evidenced by the surge in prices over the last year. This was the predictable result of creating money out of thin air and handing it out to spend. More money chasing the same amount (or with governments shutting down economies fewer) goods and services will always lead to a general rise in prices.

The only reason the US can get away with this policy to the extent that it does is its role as the world reserve currency. There is a built-in global demand for dollars that helps absorb the money printing. But what happens if that demand drops? What happens if China and other countries decide they don’t want to hold a currency that is losing value every day?

After Russia invaded Ukraine, the US cut some Russian banks, including the central bank, off from the SWIFT payment system.

SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication. The system enables financial institutions to send and receive information about financial transactions in a secure, standardized environment. Since the dollar serves as the world reserve currency, SWIFT facilitates the international dollar system.

SWIFT and dollar dominance gives the US a great deal of leverage over other countries.

And the US went a step further. In an unprecedented move, the Federal Reserve froze Russia’s dollar reserves. In effect, Russia’s dollar assets are valueless to the country. It can’t use them at all.

Even if you think Russia deserves these draconian economic sanctions, it’s important to remember that they could come at a cost.

Recent dollar strength compared to other world currencies suggests that the dollar remains in a strong position. But things could shift quickly. How much more borrowing and printing will the world tolerate before they become wary of holding dollars? And will the US propensity to use the dollar as a foreign policy weapon undermine trust in the greenback?

The world is watching.

Source : Schiff Gold

Welcome to 1984

Jim Rickards wrote . . . . . . . . .

I’ve been addressing the war on cash lately, and for good reason. While everyone’s attention is focused on the war in Ukraine, inflation and the Supreme Court, government plans to eliminate cash are accelerating.

For example, central bank digital currencies (CBDCs) are coming even faster than many anticipated. The digital yuan is already here; it was introduced in China last February during the Winter Olympics.

Visitors to the Olympics were required to pay for meals, hotels, transportation, etc., using QR codes on their mobile phones that linked to digital yuan accounts. Nine other countries have already launched CBDCs. Europe is not far behind and is testing the digital euro under the auspices of the European Central Bank.

The U.S. was lagging, but is catching up fast.

The Federal Reserve was studying a possible Fed CBDC at a research facility at MIT. Now the idea has moved from the research stage to preliminary development.

Fed Chair Jay Powell said, “A U.S. CBDC could… potentially help maintain the dollar’s international standing.”

But this has little to do with technology or monetary policy and everything to do with herding you into digital cattle chutes where you can be slaughtered with account freezes, seizures, etc.

NOT Crypto

First off, CBDCs are not cryptocurrencies. The CBDCs are digital in form, are recorded on a ledger (maintained by a central bank or finance ministry and the message traffic is encrypted. Still, the resemblance to cryptos ends there.

The CBDC ledgers do not use blockchain, and CBDCs definitely do not embrace the decentralized issuance model hailed by the crypto crowd. CBDCs will be highly centralized and tightly controlled by central banks.

The CBDC ledger can be maintained in encrypted form by the central bank itself without the need for bank accounts or money market funds. Payments can be done with an iPhone or other device, with no need for credit cards or costly wire transfers.

Who needs bank accounts, checks, account statements, deposit slips and the other clunky features of a banking relationship when you can go completely digital with the Fed?

CBDCs are a technological advance, but they do not replace existing reserve currencies.

Not a New Currency

It’s important to understand that a CBDC is not a new currency. It’s just a new payment channel. A digital dollar is still a dollar. A digital euro is still a euro. It’s just that the currency never exists in physical form. It is always digital, and ownership is recorded on a ledger maintained by the central bank.

You will have an account showing how many digital dollars you own. They are transferred by an app on a smartphone or a desktop computer.

Of course, in many ways, dollar transactions are already digital. Most people receive money by wire transfer, go shopping with credit cards and pay bills online. All of those transactions are digital and encrypted. The difference with CBDCs is that you don’t need banks or credit card companies or even PayPal.

Again, everything can be done through the Fed with a single account for payment and receipt. CBDCs could disintermediate the entire banking and credit card sectors to a great extent.

Welcome to 1984

The other big difference is that it will give the government control of your money and the ability to put you under constant surveillance. In a world of CBDCs, the government will know every purchase you make, every transaction you conduct and even your physical whereabouts at the point of purchase.

It’s a short step from there to negative interest rates, account freezes, tax withholding from your account and even putting you under FBI investigation if you vote for the wrong candidate or give donations to the wrong political party.

If that sounds like a stretch, it’s not.

China is already using its CBDC to deny travel and educational opportunities to political dissidents. Canada seized the bank accounts and crypto accounts of nonviolent trucker protesters last winter.

These kinds of “social credit scores” and political suppression will be even easier to conduct when CBDCs are completely rolled out.

How does this relate to what is sometimes called the Great Reset? This would be the movement toward a single global reserve currency.

CBDCs and the Great Reset

Displacing the dollar would involve a meeting and agreement similar to the original Bretton Woods agreement of 1944. The agreement could take many forms. Still, the process would conform to what many call the Great Reset.

Still, things don’t happen that quickly in elite circles. Even Bretton Woods took over two years to design and another five years to implement even under the duress of World War II. The transition from sterling to the U.S. dollar as the leading reserve currency took 30 years from 1914 to 1944.

As they say, it’s complicated. Still, there are some huge changes that could emerge from the Great Reset.

For example, a new global currency regime would be an opportunity to devalue all major currencies in order to steal wealth from savers.

All currencies cannot devalue against all other currencies at the same time; that’s a mathematical impossibility. Yet all currencies could devalue simultaneously against gold. This could easily drive gold prices to $5,000 per ounce or much higher to increase the “inflation tax” (I’m sure you agree that you’re paying more than enough already!).

The Surveillance State on Steroids

Another change would be that CBDCs make it much easier to impose negative interest rates, confiscations and account freezes on some or all account holders.

This can be used for simple policy purposes or as a tool of the total surveillance state. Surveillance of incorrect behavior as defined by the Communist Party is the real driver of the digital yuan more than any aspirations to a yuan reserve currency role.

All of these shifts are now underway. The U.S. won’t adopt its own CBDC overnight, but it’s coming sooner or later.

The endgame for CBDCs would closely resemble George Orwell’s dystopian novel Nineteen Eighty-Four. It would be a world of negative interest rates, forced tax collection, government confiscation, account freezes and constant surveillance.

You might not be able to fight back easily in the world of CBDCs, but there is one nondigital, nonhackable, nontraceable form of money you can still use.

It’s called gold.

Source : Daily Reckoning

Charts: The Euro Weakened Below US$1.02, the Lowest Level in 20 Years

Source : Trading Economics

China Creates Yuan Liquidity Reserve Pool With BIS, Five Others

The People’s Bank of China will create a yuan reserve pool with the Bank for International Settlements and five other regulators to provide liquidity to participating economies in periods of market volatility.

China along with Indonesia, Malaysia, Hong Kong, Singapore and Chile will each contribute a minimum of 15 billion yuan ($2.2 billion) or US dollar equivalent to so-called Renminbi Liquidity Arrangement, according to a PBOC statement on Saturday. The funds will be placed with the BIS.

“When in need of liquidity, participating central banks would not only be able to draw down on their contributions, but would also gain access to additional funding through a collateralised liquidity window,” according to the statement.

The agreement marks the latest step from Beijing to push the internationalization of the Chinese currency, challenging a global financial system dominated by the US dollar.

Source : BNN Bloomberg

The Seven Pillars of Bitcoin

Sylvain Saurel wrote . . . . . . . . .

Bitcoin is a monetary revolution that will change the world of the future. Bitcoin will not only change the world of the future forever, but it will also change it for the better. The Bitcoin system will enable the construction of a fairer and simply better world for everyone.

When I explain this, some people seem dubious.

The fact that I am a Bitcoiner would prevent me from seeing things objectively. In reality, I think it’s quite the opposite. Being a Bitcoiner allows me to see things as they are.

I swallowed the famous metaphorical red pill that Morpheus has been presenting to Neo in the movie The Matrix for a long time. From then on, I discovered the ugly truth about the current monetary and financial system. This allows me to better appreciate all the characteristics of Bitcoin.

I am convinced that it is impossible to appreciate Bitcoin at its true value if you have not discovered the ugly truth about the current system.

You cannot appreciate the solution to a problem if you have not become aware of the problem yourself. This is obvious, but I like to repeat it because many people do things the wrong way around by first buying Bitcoin without trying to understand the problems it solves.

Without being aware of why Bitcoin is there, you can’t have complete confidence in Bitcoin and apply the best strategy when its price fluctuates sharply.

The Bitcoin revolution is made possible by the seven fundamental pillars on which the Bitcoin system is based. I will present them to you in the following without the order of appearance indicating a greater importance of one of the pillars over the others.

1. Open Source

The Bitcoin system is based on the open-source software Bitcoin Core. It is an essential pillar that has contributed to the incredible success of Bitcoin. Anyone can access the Bitcoin source code.

Everyone can check by himself how the Bitcoin network works. Even better, everyone can contribute to the evolution of Bitcoin. The community of developers who contribute every day to improve Bitcoin is one of the main strengths of Bitcoin in the face of all the competitors who claim to be able to supplant Bitcoin one day.

Bitcoin is above all a monetary revolution.

Its disruptive technology serves to give credibility to its monetary attributes that make all the difference. Many are mistaken in thinking that Bitcoin will one day be supplanted by more powerful technology. This is not where the real competition lies.

So there is no need to look for the next Bitcoin. The real revolution took place with the invention of Bitcoin. In the years to come, Bitcoin will evolve in the same way that the Internet has evolved since its creation.

Thanks to its developers, Bitcoin will become safer and more reliable every day to guarantee the security of the billions of dollars its users have invested in it. Even more than money, the security of the Bitcoin network is essential to ensure that the Bitcoin revolution can continue to progress smoothly.

2. Transparent

Bitcoin Blockchain is based on open-source code. This allows everyone to check what their source code does. In addition, its Blockchain is permissionless and trustless. Anyone can become a node of the Bitcoin network.

Any user can check all transactions validated on the Bitcoin network from the Genesis block mined on January 3, 2009, by Satoshi Nakamoto.

This transparency of Bitcoin allows all its users to form their own opinion about the truth. The consensus obtained gives weight to the Bitcoin network.

This ability to verify everything for yourself is reflected in Bitcoin’s motto:

Don’t trust, Verify.

Bitcoin will never impose on you a truth that is not yours as the current monetary and financial system does.

You will be free to determine what the truth is for yourself. When you become a Bitcoiner, you then get into the habit of developing an acute critical mind that pushes you to verify everything for yourself.

3. Neutral

In creating Bitcoin, Satoshi Nakamoto was well aware that he was inventing a technology capable of revolutionizing the current monetary and financial system.

Rather than wanting to benefit financially from his invention as all Altcoins founders do, Satoshi Nakamoto decided to offer Bitcoin to all the inhabitants of the Earth as a magnificent gift.

It is then up to its users to make Bitcoin a success or a failure.

This is an important concept in the Bitcoin world. There is no leader. All Bitcoin users have the same weight, and this is something truly revolutionary.

As long as you have the private keys to your Bitcoin, no one can take them away from you. Furthermore, no one can stop you from making the transactions you want to make.

While the U.S. dollar has been the world’s reserve currency for 100 years, more and more people are realizing that its life expectancy in this position is now counted. The incredible weakening of the U.S. dollar since 1971 seems never to stop and drives the value of the U.S. dollar towards zero.

Some believe that the U.S. dollar cannot be replaced because there is no alternative.

These people quickly forget that Bitcoin is precisely the only credible alternative to the U.S. dollar that is at the heart of the current monetary and financial system.

Many countries are beginning to no longer accept the exorbitant advantage that the U.S. dollar provides to the United States. Many are seeking to reduce their dependence on the U.S. dollar. Neutral politically, Bitcoin will be an increasingly preferred alternative in the years to come.

4. Decentralized

The Bitcoin network is decentralized. This decentralization is an incredible strength of Bitcoin. A real pillar that allows it to make a difference with all the existing Altcoins.

This makes Bitcoin unstoppable, no matter what Donald Trump or the other powerful people of this world may think.

This decentralization makes Bitcoin more resistant to potential attacks. Its network has an uptime of 99.985% since its creation.

This uptime has nothing to envy those of the Web giants. It’s incredible when you think that Bitcoin has developed only thanks to the will of its users to build a better world for everyone. Bitcoin has never received any financial help from private investment banks or States.

Its current market cap of 570 billion dollars is a phenomenal success, and this is only the beginning. The best is yet to come for Bitcoin.

Currently, Bitcoin remains the most efficient solution for transferring money quickly and borderless. Transaction fees are virtually zero compared to bank fees for such transfers.

Moreover, the 10-minute transfer time for the order is incomparable with the SWIFT interbank payment network, where it takes 2 to 5 days at best.

Bitcoin’s total independence allows you to transfer money without having to answer indiscreet questions that bankers or governments love to ask those who transfer money through the SWIFT interbank system.

Bitcoin gives you the freedom to live your life on your own terms.

5. Censorship-resistant

The absence of a leader has allowed Bitcoin to become a true democracy where all users are equal. Each user is free to use his Bitcoin as he wishes.

No one can force you to use your Bitcoin against your will. You can send your Bitcoin to whomever you want over the network.

Your Bitcoin can never be confiscated as long as you have the private keys. As a reminder of this necessity, please remember this golden rule that is enshrined in the heart of the Bitcoin Club’s rules:

Not your Keys, Not your Bitcoin.

Bitcoin, therefore, allows you to preserve your wealth over time in a censorship-resistant manner.

With today’s banking system, governments can put pressure on you by threatening to confiscate what you own. With Bitcoin, you no longer have that fear. It’s an incredible guarantee in a world as uncertain as to the one we live in currently.

6. Secure

The proper functioning of the Bitcoin network, as well as its security, is ensured by Bitcoin users. This is essential because it implies that without its users, Bitcoin would be nothing.

In the world of Bitcoin, you will discover a double dependence: Bitcoin needs you as much as you need Bitcoin.

Bitcoin miners make their computing power available to the network to validate blocks of transactions. A transaction block is validated every 10 minutes on average.

To encourage the miners to ensure the smooth operation of the network, Satoshi Nakamoto has planned two things:

  • A Bitcoin reward that halves every 210,000 blocks issued in an automatic operation called Halving.
  • A transaction fee.

New Bitcoin units are therefore predictably issued with each block successfully added to the Bitcoin Blockchain.
This allows everyone to predict the timing of new Bitcoin issuance until 2140 when all Bitcoin units have been issued.

Currently, Bitcoin is the most secure decentralized network in the world.

Its network is becoming more and more secure over the years as its Hash Rate increases.

It is also an indicator of the network’s good health, protecting it from potential attacks such as a 51% takeover of the network’s Hash Rate.

Such a secure network reassures users and investors alike that the Bitcoin revolution will be a success in the years to come.

7. Monetary policy

With the decentralization of the Bitcoin network, this last pillar is probably the most important. Bitcoin’s monetary attributes make it a species apart in a world where everything is going digital.

This is what will prevent Bitcoin from disappearing in the future.

While the U.S. dollar, and all fiat currencies, can exist in unlimited quantities since the establishment of the current monetary and financial system in August 1971, Bitcoin exists in finite quantities.

There will never be more than 21 million BTC in circulation.

This gives an incredible guarantee to all Bitcoin users. When you buy a Bitcoin, you know that you will still own 1 Bitcoin out of 21 million in 10, 20, or 50 years. Bitcoin thus avoids devaluing what its users own.

Aside from time, you will find nothing scarcer on Earth than Bitcoin. It is the most scarce thing ever created by humans.

Bitcoin’s monetary policy is also distinguished by the fact that the issuance of new Bitcoin units is predictable. It is automated in the Bitcoin source code and does not depend on any arbitrary human decision. No one can decide to accelerate the rate at which new Bitcoin units are issued.

The inflation of the supply of new Bitcoin units inevitably reduces over time. For every 210,000 blocks issued, the reward for miners is halved. The last Halving took place on May 11, 2020. Since then, the inflation of the supply of new Bitcoin units has been only 1.8% per year.

At the next Halving, at a block height of 840,000, this inflation will drop below zero for the first time in history. Bitcoin will become the most scarce asset in the world ahead of gold and its annual inflation of 1.6%.

This inflation will reach zero in 2140 when all Bitcoin units have been issued.

Bitcoin’s monetary policy is to be contrasted with the quantitative easing practiced by central banks. In the case of Bitcoin, we speak of quantitative hardening. This is an incredible virtue of Bitcoin that protects all its users.

Final Thoughts

Bitcoin is the biggest technological disruption since the Internet. Bitcoin’s technology is there to give credibility to its monetary attributes. These attributes make Bitcoin a true monetary revolution.

Based on the seven pillars that I have just presented to you, Bitcoin builds day after day a fairer and better world for all its users.

It is only a matter of time before the greatest number of people realize this. Bitcoin adoption will explode in the coming years. With a limited supply, and with inflation decreasing over time, the Bitcoin price is promised to reach $1 million within the next 20 to 30 years.

Those who choose to support Bitcoin sooner will naturally be the ones who will get the biggest reward. The good news is that we are still early for Bitcoin, and you still have the opportunity to enjoy it to the fullest.

It’s up to you.

Source : In Botcoin We Trust

HKMA Buys Hong Kong Dollar at Record Pace as Peg Gets Tested

Hong Kong’s de facto central bank bought the local dollar at the fastest pace on record to defend its currency from crossing the weak end of its trading band.

The Hong Kong Monetary Authority bought HK$78.1 billion ($10 billion) so far this month, including its HK$25.6 billion purchase last week, which was the largest for a single day as per Bloomberg data going back to 2003. The currency still continues to linger near the weak end of its 7.75-to-7.85 per greenback trading band.

Despite the heavy intervention, the Hong Kong dollar continues to remain weak as the city’s aggregate balance — a gauge of interbank liquidity — remains high. This means its still relatively cheap for traders to short the currency against the higher yielding greenback.

This is likely to keep the downward pressure on the Hong Kong dollar and interventions are likely to continue, said Frances Cheung, rates strategist at Oversea-Chinese Banking Corp. in Hong Kong.

HKMA Chief Executive Eddie Yue had said earlier this week that the HKMA may accelerate purchases of the local currency until the city’s interest rates approach the US level, Sing Tao Daily reported.

Source : BNN Bloomberg

Traders are borrowing against the low Hibor, selling the Hong Kong dollar to buy the US currency for investments in high-yielding US assets.