Bitcoin’s true colours shine in stampede to safety 23 Feb 2022 The cryptocurrency fell 5% as conflict in Ukraine flared, undermining the case for it to be a gold-like refuge. Even earlier, it moved too closely in synch with equities to be much use as a hedge. It comes into its own, however, as an amplifier of ups and downs in riskier assets.
Spending bitcoin is harder than stealing it 9 Feb 2022 Cryptocurrency crime is soaring. But the seizure by U.S. authorities of bitcoin worth $3.6 bln, six years after the theft, shows it’s difficult to turn stolen tokens into cash. Anonymous transactions leave a clear trail. Even if the boom fades, the pursuit of thieves will go on.
MicroStrategy is storing up bitcoin bother 1 Feb 2022 The $4 billion company’s digital currency holdings now account for almost all of its enterprise value. CEO Michael Saylor may be happy running what increasingly looks more like a crypto vehicle than an analytics and software business. But he is inviting more regulatory scrutiny.
Breakdown: Real profit and loss in the metaverse 28 Jan 2022 Mark Zuckerberg is on the case, and nascent virtual spaces like Decentraland could be the next social-networking hit. Breakingviews unpacks the metaverse, what it offers users and investors, and the risks.
Facebook’s crypto demise is a missed opportunity 27 Jan 2022 The social network’s digital asset group is winding down under regulatory pressure. Though Diem Association’s links with Facebook proved toxic, ex-member firms like Visa could have made cryptocurrencies respectable. Meanwhile, watchdogs have done little to rein in riskier coins.
Financial products we’d rather not see in 2022 4 Jan 2022 Breakingviews is readying a new metaverse-based buy-now-pay-later digital-asset trading platform. Here are a few of the shiny new opportunities that could pop up in the coming year, from a melding of SPACs with NFTs to a new crypto-churn account.
Macau watchdogs will double down on digital yuan 3 Jan 2022 As casino operators prepare bids for new licenses in the $37 bln gambling hub, investors fear regulators will tighten their grip on Sands, Wynn and MGM. One clever way to start would be by forcing them to adopt China’s new virtual currency.
Wall Street will find ways to satisfy crypto envy 3 Jan 2022 Banks have mostly been shut out of the $2 trln digital asset craze. Many want in, but they will have to deal with murky regulation, a 24/7 market and patchy legal protections. A fight for profit and customers may also obscure other risks in a market untested by the mainstream.
Capital Calls: Software AG logs onto buyout boom 26 Nov 2021 Concise views on global finance: A subdued valuation and eager bidders increase the 3 billion euro German company’s chances of a possible sale.
Chancellor: U.S. bull market can’t go on forever 24 Nov 2021 Stein’s Law dictates that “if something cannot go on forever, it will stop.” Timing is another matter. “Nowcasting” looks at macroeconomic and market indicators, and finds little cause for concern. But it’s just another model. And, as Box’s Law states: all models are wrong.
Bitcoin miner’s green patina is fool’s gold 17 Nov 2021 In a somewhat novel twist for the power-sucking cryptocurrency business, Iris Energy relies mainly on renewables. That probably helped boost its valuation in a $1.6 bln IPO, but it feels like style over substance. And the climate hype cannot mitigate some serious risk factors.
Gensler crypto crackdown would be gift in disguise 12 Nov 2021 The SEC chair’s push to add investor defenses to a $2.8 trln industry might dampen digital assets first, yet should over time make them more attractive. But Gensler’s to-do list is long, from SPACs to hedge fund fees. Getting overlooked is a risk for crypto, not an opportunity.
African telcos finally get their big fintech prize 8 Nov 2021 After years of delay, Nigeria’s central bank is letting phone firms offer basic banking via handsets. For the regulator, it’s a way of staying relevant as consumers dabble in cryptocurrencies. For operators like MTN and Airtel Africa, it’s a multibillion-dollar payday.
Crypto is next fintech battle for India’s Gen Z 1 Nov 2021 CoinSwitch Kuber makes buying and trading bitcoin and ethereum easier than ordering a pizza. The $2 bln Coinbase-backed group is rapidly luring users who are new to financial investing. It’s a dicey path to building the next super-app, even if demographics are on its side.
First bitcoin ETF is test for fans and watchdogs 19 Oct 2021 ProShares’ new U.S. fund based on bitcoin futures lacks the direct holdings enthusiasts might prefer. But it's a way to get tradable exposure without the hassle of digital wallets and such. An orderly debut could ease regulators' resistance to ETFs that buy crypto directly.
Crypto puts U.S. and El Salvador in the same boat 18 Oct 2021 Hispanic and Black people are top American owners of digital currencies. Discrimination and lagging access to financial services are drivers and are among the better reasons why the Central American nation turned to bitcoin. It’s a lost opportunity for traditional banks.
Capital Calls: OCC, China crypto ban 23 Sep 2021 Concise views on global finance: Biden’s pick for the U.S. bank regulator would be a square peg in a round hole; Beijing regulators declared all cryptocurrency activity to be illegal underlining the cons and a pro of the digital assets.
Crypto gives watchdogs a new risk checklist 20 Sep 2021 The SEC boss wants to regulate the $2 trln market. Standard financial dangers like inadequate liquidity or capital exist. But 51% attacks, chain splits, hacks and such could cost people cash and confidence. Policing cryptocurrencies requires more than calling them securities.
Capital Calls: Fake crypto news summons regulation 13 Sep 2021 Concise views on global finance: Litecoin's value jumped more than 30% after a phony press release about a partnership with Walmart.
Viewsroom: Bitcoin, El Salvador and Roger Federer 9 Sep 2021 As the Central American country adopts the cryptocurrency as a coin of the realm, Richard Beales and Gina Chon discuss the merits of stablecoins and the scramble by regulators to catch up with the market. Karen Kwok takes a slice at Roger Federer-backed running shoe outfit On.