Kicking off this week’s edition of Overbit News, we’re going to discuss two significant themes happening in the global markets this week: Crypto Banking and Central Banks Stimulus Policies. With Crypto Banks looking to bring “power to the people” and Central Banks looking to keep power for the 1%, these two topics are heavily intertwined and something interesting to follow, so let’s dive right in.
The first topic is crypto banks, a topic which Cointelegraph recently covered in regards to Kraken’s new crypto bank making it “the first-ever cryptocurrency business in the United States to become a bank.”. It’s impossible to understate this development. This is a BIG deal.
Kraken is reportedly partnering with Silvergate Bank to provide US consumers lending solutions for SWIFT and FedWire. In the near future, more and more of these types of alliances connecting the old world of finance to the new, digital age will become the status quo. That is why now is the time to begin paying attention to conventional banks that are lagging behind.
As mentioned in the report, the author noted that in three years or even less, crypto banks will swallow fiat banks whole, as a younger generation of banking customers will expect access to crypto products and services built into their native experience. We can see the race to add crypto to banks has just begun.
Jumping over to the second topic of today, we’re going to cover the Forex markets where we’ve seen the US Dollar edge lower on Monday.
Investors seem to be losing a bit of faith that Washington DC will reach a stimulus package between now and the Nov. 3rd US election. From a technical perspective, the US Dollar Index ranged between 93.207 to 93.767 and is likely to continue to trade in this range as more talks in DC unfold regarding year-end fiscal packages.
Across the pond, we saw a 0.22% rise in the GBP/USD pair, jumping to $1.2952 as hopes that negotiators between the UK and EU would be able to salvage some type of Brexit negotiation. However, as mentioned in a report by ANZ research, “It could well be the case that an agreement will be reached at the last hour, as markets appear to be expecting, but the lack of progress seen recently highlights the distinct possibility that no deal is achieved,”.
Aside from GBPUSD, the forex, commodity, and precious metal markets continue to look shaky. It seems the underlying theme across all markets right now is “What is happening with COVID?” and how are central bankers going to respond. This makes pandemic-driven inflation a real concern for all investors. Take COVID out of the equation, though, and it seems that cryptocurrencies - especially Bitcoin - are the real existential threat facing the entire banking system right now.
Depending on how hard or soft of a stand global regulators take against or for crypto is still to be determined, but this is a major theme that will continue to play out over the coming months, and probably years to come.
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