Skip to main content

MLB Team Washington Nationals Partners With Terra Blockchain Community, Ballpark Plans to Accept UST

On February 9, the American professional baseball team based in Washington, D.C., the Washington Nationals, announced the team has partnered with Terra, the open-source blockchain platform and decentralized autonomous organization (DAO). The Washington Nationals detail that the team is a “leading innovator” and is “consistently introducing new technologies to enhance the fan experience.” Washington Nationals Ink Long-Term Deal With Terra Major League Baseball (MLB) team the Washington Nationals has partnered with the blockchain platform and DAO Terra, according to an announcement published by the team on Wednesday. The deal with Terra follows a slew of sports-related deals with crypto firms, but the MLB team will be the first to partner with an open-source blockchain project. In addition to the partnership, the algorithmic stablecoin UST that’s issued on the Terra blockchain will be “accepted as a payment method at Nationals Park as early as next season.” “The Nationals continue t...
Post a Comment

Bitcoinization: JPMorgan Sees No ‘Tangible Economic Benefits’ of Bitcoin as Legal Tender

Bitcoinization of El Salvador: JPMorgan Sees No ‘Tangible Economic Benefits’ of Bitcoin as Legal Tender

JPMorgan has offered its view on the bitcoinization of El Salvador, the country which recently made bitcoin legal tender alongside the U.S. dollar. JPMorgan says, “It is difficult to see any tangible economic benefits associated with adopting bitcoin as a second form of legal tender.”

JPMorgan on the Bitcoinization of El Salvador

JPMorgan & Chase’s Latin American research team published a report titled “The Bitcoinization of El Salvador” Thursday. El Salvador recently passed legislation making bitcoin legal tender alongside the U.S. dollar.

The JPMorgan analysts who authored the report wrote:

It is difficult to see any tangible economic benefits associated with adopting bitcoin as a second form of legal tender.

The report also points out that “Recent surveys suggest widespread skepticism and hesitance of bitcoin as a medium of exchange … with extreme volatility posing a particularly acute challenge in a bimonetary system alongside official dollarization.”

JPMorgan noted that bitcoin’s daily trading volumes often exceed $40 billion to $50 billion. However, a large portion of BTC is locked up in illiquid entities, with more than 90% not changing hands in more than a year, the analysts explained, adding:

Only a small fraction of circulating supply mobile and available for use in everyday transactions; daily payment activity in El Salvador would represent -4% of recent on-chain transaction volume and more than 1% of the total value of tokens which have been transferred between wallets in the past year.

The JPMorgan report further adds that the illiquidity and nature of the volume are “potentially a significant limitation on its potential as a medium of exchange.”

However, many bitcoiners were quick to point out that the JPMorgan report does not mention the Lightning Network. Bitcoin advocate and Avanti Financial Group CEO Caitlin Long commented: “‘The Bitcoinization of El Salvador’ written by its Latam research team & it doesn’t mention Lightning Network even once. It’s clear they don’t even understand the basics.” Three major bitcoin wallets used in El Salvador utilize the Lightning Network: the government’s upcoming Chivo wallet, the Bitcoin Beach wallet, and Jack Mallers’ Strike app.

The report continues: “A persistent imbalance on demand for BTC/USD conversions on the government platform (Chivo) could cannibalize onshore dollar liquidity and eventually introduce fiscal and balance of payments risk.”

In addition, the JPMorgan team believes that adopting bitcoin as legal tender “may imperil negotiations with the IMF” for El Salvador, stating:

We believe the Bitcoin Law is complicating talks around IMF aid which we continue to believe is necessary to put El Salvadorian debt on a more sustainable path.

The International Monetary Fund (IMF) has warned of “a number of macroeconomic, financial, and legal issues” surrounding El Salvador making bitcoin legal tender.

What do you think about JPMorgan’s view on the bitcoinization of El Salvador? Let us know in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Blockchain Software Firm Consensys Acquires Mycrypto Ethereum Wallet

On February 1, the blockchain infrastructure firm Consensys has revealed it has acquired the Ethereum-based wallet Mycrypto and plans to merge the wallet into Metamask. The price Consensys paid for Mycrypto was not disclosed but the announcement notes that the acquisition will “further improve the security of all the products.” Consensys Obtains Mycrypto Ethereum Wallet, Plans to Merge With Metamask in the Future Consensys has acquired the Ethereum-based wallet Mycrypto for an undisclosed sum according to an announcement released on Tuesday. The deal aims to strengthen the company’s Ethereum wallet Metamask and “enhance Web3 experiences.” The eventual merger between the two Ethereum interfaces will “provide users with a heightened experience that is even more extensive and secure,” according to Consensys. Consensys is an Ethereum software company led by one of the Ethereum co-founders Joseph Lubin. The Web3 wallet Metamask, with 21 million monthly active users (MAUs) is owned by C...
Post a Comment
Read more

The Congolese Mountain of Gold: Surprise Discovery in Africa Shows Metal’s Scarcity Is Hard to Prove

A myriad of gold bugs like to compliment the yellow precious metal for its ostensible scarcity, as estimates say only 2,500 to 3,000 tons of new gold is produced annually. While new gold discoveries have seemingly slowed, investigative studies also show that in some areas, gold is being smuggled into the economy by the ton, and often never accounted for as far as per annum issuance estimates. Recently, reports show a whole mountain of gold was discovered in the Congo, as the Democratic Republic of the Congo is well known for being a region that sees tons of smuggled gold filtered into the global financial system unreported. Surprise Gold Deposits Continue to Crack the Precious Metal’s Scarcity Proposition It has always been said that the precious metal gold (Au) is scarce, and some reports even say that gold mining on earth will end by the year 2050 . Additionally, estimates also show that there’s roughly 2,500 to 3,000 tons of new gold that is accounted for and enters into the fin...
Post a Comment
Read more

Bitcoin Legal Tender in 3 Days but Survey Shows 7 Out of 10 Salvadorans Want Bitcoin Law Repealed

Bitcoin is becoming legal tender in El Salvador in three days. However, a nationwide survey conducted by the University Institute of Public Opinion (Iudop) shows that seven out of 10 Salvadorans want the government to repeal the Bitcoin Law. El Salvador’s Bitcoin Law Goes Into Effect in 3 Days The University Institute of Public Opinion (Iudop) in El Salvador conducted a study between Aug. 13 and Aug. 20 of how the public views the country’s upcoming Bitcoin Law. The institute is a research center of the José Simeón Cañas Central American University (UCA). El Salvador’s Bitcoin Law is set to go into effect on Sept. 7 , when BTC will be legal tender in the country alongside the U.S. dollar. A total of 1,281 respondents ages 18 and over participated in this national survey that “represents the entire adult population residing in the country,” according to the institute. Out of all the respondents, 62.4% said they were aware of the approval of the Bitcoin Law by the deputies of the ...
Post a Comment
Read more