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• Crypto asset XRP rose by as much as 5% on Saturday, following declines of a similar amount during yesterday’s session.
• Litecoin (LTC) was also higher to start the weekend, as prices remained close to a multi-week high.
• The move came as bullish momentum increased at the price floor of $0.4250, after bears failed to sustain an earlier breakout.

Overview

This article looks at the biggest crypto movers from Saturday’s trading session, with both XRP and LTC showing signs of strength against the US dollar.

XRP Climbs 5%

The crypto asset XRP rose by as much as 5% on Saturday, following declines of a similar amount during yesterday’s session. This rebound took place as the relative strength index (RSI) moved away from its own support level of 58.00 and towards 60.77, while the 10-day moving average crossed over its 25-day counterpart.

Litecoin Nears Multi-Week High

Litecoin (LTC) was also higher to start the weekend, climbing to an intraday peak of $93.97 – just below a three-week high of $96.11 and close to a resistance level at $94.00. Bullish momentum increased here due to a crossover between the 10-day and 25-day moving averages, while RSI moved marginally above 56.00 – suggesting that further gains could be possible if this level is breached in the coming days.

Crypto Market Cap Falls

Despite these gains for certain tokens, however, overall market sentiment fell on Saturday – with global crypto market cap dropping by 0.51%. This suggests that investors remain hesitant about making larger commitments in this sector despite recent signs of recovery from some assets such as XRP and LTC .

Conclusion

In conclusion then it appears that while some individual tokens are performing better than others in terms of price action right now, overall investor confidence has yet to fully return into this space

• Johan Van Overtveldt, former finance minister of Belgium and a Member of the European Parliament, has urged authorities to impose a ban on cryptocurrencies citing the current crisis in the banking sector as a reason.
• This call comes amid a crisis sparked by the failure of several banking institutions, including two crypto-friendly banks in the U.S.
• Van Overtveldt is a Belgian journalist and politician from the New Flemish Alliance (N-VA) party who serves as chairing the Committee on Budgets and represents the European Conservatives and Reformists (ECR) group in the Committee on Economic and Monetary Affairs (ECON).

Chair of EU Parliament’s Committee on Budgets Calls for Crypto Ban Amid Banking Turmoil

Johan Van Overtveldt, former finance minister of Belgium, Member of European Parliament and chair of Committee on Budgets has urged authorities to impose a ban on cryptocurrencies citing current crisis in banking sector as a reason. This call comes amid financial turmoil sparked by failure of several banking institutions including two crypto-friendly banks – Silvergate Bank and Silicon Valley Bank – located in US.

Belgium’s Ex-Finance Minister Suggests Ban on Decentralized Digital Currencies

Van Overtveldt is also an ex-finance minister from Belgium belonging to New Flemish Alliance (N-VA) party who serves in ECON representing European Conservatives and Reformists (ECR) group. ECR is soft Eurosceptic political group advocating free enterprise, minimal regulation, lower taxation along with small government catalyzing individual freedom & national prosperity. His statement regarding cryptocurrencies follows collapse of three US banks out of which two were involved with crypto space mentioned earlier.

Europe Yet To Comprehensively Regulate Its Crypto Economy By Enforcing MiCA

European Union yet to pass any comprehensive legislation regulating its crypto economy known as Markets in Crypto Assets (MiCA). Such legislation should outline rules related to customer protection, investor protection & market integrity providing legal clarity associated with digital assets trading & investing within Europe’s jurisdiction & beyond it globally too.

Why Is A Ban On Cryptocurrencies Unnecessary?

Cryptocurrencies have been around for more than 10 years now but are yet to become mainstream form money or asset being used by most people regularly due to lack education & awareness around them among masses along with regulatory uncertainty creating confusion among investors & traders alike whether they should be investing/trading or not legally speaking globally speaking.. A ban would not only stifle innovation but could also lead towards further financial instability when compared against regulated cryptocurrency trading/investing environment where users can trade/invest without any fear or concern about their investments getting compromised due to lack transparency or regulatory compliance issues hampering financial stability eventually leading towards bad economic environment affecting everyone negatively especially financially weaker section majority population already struggling financially due COVID pandemic induced economic recession globally impacting all economies severely..

Conclusion

Cryptocurrencies have been gaining popularity over past few years but still far away from becoming mainstream form money or asset being used by most people regularly due various reasons mainly lack education & awareness around them among masses along with regulatory uncertainty creating confusion among investors & traders alike whether they should be investing/trading or not legally speaking globally speaking.. A ban would not only stifle innovation but could also lead towards further financial instability when compared against regulated cryptocurrency trading/investing environment where users can trade/invest without any fear or concern about their investments getting compromised due lack transparency or regulatory compliance issues hampering financial stability eventually leading towards bad economic environment affecting everyone negatively especially financially weaker section majority population already struggling financially due COVID pandemic induced economic recession impacting all economies severely..

• Silicon Valley Bank recently suffered a $42 billion bank run, raising questions about the dangers of fractional-reserve banking.
• Fractional reserve banking is a system that only holds a fraction of deposits, with the remaining funds loaned out or invested.
• In the US, fractional-reserve banking has been linked to numerous financial crises and instability in the past century, culminating in the Great Depression.

What is Fractional Reserve Banking?

Fractional reserve banking (FRB) is a system of bank management that only holds a fraction of bank deposits, with the remaining funds invested or loaned out to borrowers. FRB operates in nearly every country worldwide and became widely prominent during the 19th century in America with the passage of the National Banking Act. There is debate on whether fractional lending occurs these days as some believe it is printed out of thin air.

History of FRB in USA

Prior to FRB becoming widely used, banks operated with full reserves meaning they held 100% of their depositors‘ funds in reserve. The practice spread significantly after 1863 when America’s banking charter system was created and later led to occasional bank failures and financial crises after World War I. To fix this issue, U.S. President Franklin D Roosevelt initiated the Banking Act 1933 to restore trust in the system resulting from multiple issues related to FRB prior to this time period.

Dangers Associated with Fractional Reserve Banking

The recent ordeal at Silicon Valley Bank (SVB) has brought renewed attention to risks associated with fractional-reserve banking such as economic instability and bank runs which were highlighted by popular movie „It’s A Wonderful Life“. Furthermore there are myths associated with modern banking based on a paper called „Money Creation in The Modern Economy“ written by Bank Of England which can be read here by economist Robert Murphy who also discussed these myths more broadly in his book “Understanding Money Mechanics” .

Conclusion

Fractional reserve banking continues to be used around the world but risks associated with it must not be underestimated as was seen recently at SVB where customers attempted to withdraw $42 billion from it causing significant panic among them leading many people realize how dangerous it can be for economy & financial stability if not managed properly & efficiently .

References

1) Murphy Robert: Understanding Money Mechanics 2) Money creation modern economy: Bank Of England

Summary of Silicon Valley Bank Under FDIC Auction

• The U.S. Federal Deposit Insurance Corporation (FDIC) has started an auction process for Silicon Valley Bank (SVB). Final bids are due by Sunday afternoon.
• The failure of SVB has sparked a debate over whether the bank will receive a bailout from the federal government. Billionaire Bill Ackman and hundreds of venture capitalists have called for a bailout.
• Treasury Secretary Janet Yellen has said that the banking system is “resilient” and “safe and well-capitalized”, making it unlikely that a bailout will occur.

Background Information on Silicon Valley Bank

Silicon Valley Bank (SVB) is a major financial institution that recently collapsed and was placed into FDIC receivership by California regulators on Friday. This collapse caused an uproar in the U.S., as many believe it revealed weaknesses in the nation’s banking system. As such, there have been several calls for a federal bailout of SVB. However, Treasury Secretary Janet Yellen has stated that the banking system is “resilient” and “safe and well-capitalized”, making it unlikely that any such action would be taken.

FDIC Auction Process

In response to this situation, the U.S. Federal Deposit Insurance Corporation (FDIC) began an auction process for SVB late Saturday night with final bids due by Sunday afternoon. Anonymous sources cited by Bloomberg say the FDIC is working swiftly to sell off SVB assets before branches open on Monday, with a final decision potentially not being announced until Sunday evening.

Calls for Bailout Grows

Amidst this crisis, billionaire Bill Ackman, CEO of Pershing Square Capital Management, warned of „more bank runs“ if action was not taken soon while hundreds of venture capitalists issued a statement expressing their hope that the bank would be „appropriately capitalized“. Notable figures such as Galaxy Digital’s Mike Novogratz, Y Combinator’s Garry Tan and Craft Ventures‘ David Sacks have also joined in calling for a federal bailout of SVB.

Conclusion

Despite these calls for a bailout from prominent voices in finance, it appears unlikely at this time given Treasury Secretary Janet Yellen’s assertion that the nation’s banking system is safe and resilient without needing assistance from outside sources. The FDIC is currently working to close its deal promptly before branches open on Monday with final bids due by Sunday afternoon and results likely announced later in the day or evening

• Bitcoin (BTC) and Ethereum (ETH) have been volatile to start the week, as markets prepare for a big week of U.S. economic data.
• BTC/USD slipped to an intraday low of $22,331.31 earlier in the session, while ETH/USD fell to a bottom at the $1,557.36 mark.
• A downward crossover between the 10-day (red), and 25-day (blue) moving averages has also transpired in both BTC and ETH which could be a sign of further sell-offs to come.

Bitcoin Technical Analysis

Bitcoin (BTC) started the week in consolidation, ahead of a key week of economic data from the United States. Following a high of $22,497.00 on Sunday, BTC/USD slipped to an intraday low of $22,331.31 earlier in the session. As a result of the move, the world’s largest cryptocurrency sank closer to a recent support point at the $22,300 zone. Overall, the recent rise in bearish sentiment has caused bitcoin to fall by as much as 5% in the last seven-day period. A downward crossover between the 10-day (red), and 25-day (blue) moving averages has also transpired which could be a sign of further sell-offs to come. One positive comes in the form of 14-day relative strength index (RSI), which is currently tracking above floor at 42 mark.

Ethereum Technical Analysis

Similar to BTC, ethereum (ETH) remained mostly volatile during Monday’s session with prices remaining largely unchanged .ETH/USD fell to a bottom at 1,557 mark yesterday after trading at peak level 1 574 on Sunday.. This drop sees ethereum trade in red for fifth consecutive session with market cap down 5% within that period . The 10 day( red ) Moving average has moved below its 25 day( blue ) counterpart with support at 1560 preventing further falls simultaneously RSI collided with floor 44 , as writing index is slightly above this mark reading 4428 should this area eventually give way there is good chance that ETH can fall below 1500 this week .

Federal Reserve Chair Jerome Powell Speaking

Later this week nonfarm payrolls will be posted with Federal Reserve chair Jerome Powell also speaking during days . It will be interesting how market reacts against his speech as he may hint about any new monetary policy or outlook regarding economy .

Biggest Movers: ETC Remains Near 2 Month Highs

In other news Ethereum Classic remains near two month highs following its listing on Coinbase Pro recently , being only one out 7 assets available over there ETC gained lot attention among traders and investors alike who are trying capitalize huge upside potential associated with coin , meanwhile ICOs are becoming more popular than ever despite regulations imposed by authorities majority projects still able manage their funds through ICOs however government entities like SEC making it more difficult for them operate without proper authorization so it remain see what future holds for these type projects .

Conclusion

To sum up , Bitcoin and Ethereum have been volatile during start of week due upcoming economic data from US followed by speech from Jerome Powell later this will determine direction price action for coins like BTC and ETH take towards end week . On other hand Ethereum Classic made headlines due listing Coinbase Pro allowing people invest asset long term basis but caution must exercised when engaging any venture capital endeavors such ICOs due strict regulations imposed by certain governments around world .

• Trezor, the manufacturer of crypto hardware wallets, has announced that it will take control of its wallet chip production process by producing its own silicon chips.
• The new chip-making process enhances security significantly by eliminating third-party chipmakers and associated vulnerabilities, while also reducing lead times.
• The company is collaborating with Stmicroelectronics to produce a microcontroller and semiconductor technology called „TROPIC01“ for use in crypto hardware wallets.

Trezor Takes Control of Chip Production

Trezor, the manufacturer of cryptocurrency hardware wallets, has announced that it will take control of its wallet chip production process by producing its own silicon chips. This move will enhance device security and considerably shorten lead times for mass production.

Enhanced Security & Faster Production Time

The new chip-making process enhances security significantly by eliminating third-party chipmakers and associated vulnerabilities. It also reduces lead times by bypassing supply chain issues. Moreover, Trezor states that the newly designed „chip wrapper“ gives them more design freedom for future products.

Collaboration With Stmicroelectronics

Trezor is collaborating with Stmicroelectronics to produce a microcontroller and semiconductor technology called „TROPIC01“ for use in crypto hardware wallets. They are hoping this collaboration will make the manufacturing process as agile as possible so they can respond quickly to market changes or increasing competition in the crypto space.

Rise in Hardware Wallet Demand

Hardware wallets have experienced substantial demand since the collapse of FTX, as crypto enthusiasts have transferred billions of dollars worth of crypto assets from centralized trading platforms. In addition, several companies have unveiled new hardware wallet models such as Ledger Stax, 1inch Network’s hardware wallet and Coinkite’s Coldcard Q1 product. All these products utilize Trezors newly designed chipsets for enhanced security and faster production time capabilities.

Conclusion

In conclusion, Trezor is taking control over their own wallet chip production to enhance device security and reduce lead times for mass production. Furthermore, the company is collaborating with Stmicroelectronics on a microcontroller and semiconductor technology called „TROPIC01“. Finally, hardware wallets are experiencing rapidly increasing demand due to their enhanced security features compared to centralized trading platforms like FTX

• South African startup Momint has launched a blockchain-powered solution to ease the country’s power generation challenges.
• Investors can buy non-fungible tokens (NFTs) linked to solar cells which are then leased to public institutions like hospitals and schools.
• Blockchain technology is used by Momint to make the project transparent and reduce risks.

South African Startup Seeks to Improve Electricity Generation

South African startup Momint has recently launched Suncash, an initiative that seeks to improve electricity generation in the country using a blockchain-based solution. For a minimum price of $9, investors have the chance to acquire non-fungible tokens (NFTs) linked to solar cells that are then leased out for use at public institutions such as schools and hospitals. The project has already been piloted at Delmas High School in Mpumalanga province.

Suncash Initiative Aims To Ease Country’s Power Challenges

Momint CEO Ahren Posthumus explains that his company’s goal is not necessarily financial gain but rather alleviating some of South Africa’s power woes: „We are a technology company that’s trying to build for the next 15 years, but what we realised is we can’t build a technology company in a country that doesn’t have electricity.“ He further states that blockchain technology provides transparency within the project while also lowering risks for Momint. This is achieved by creating smart contracts on the blockchain which represent ownership of each individual cell and its associated revenues.

Benefits Of Using Blockchain Technology

The advantages of using blockchain technology include increased transparency, improved trust between stakeholders, and lowered risk levels due to smart contracts being immutable on the blockchain. Additionally, due to its decentralized nature, blockchain networks are more secure than traditional systems since data stored on them cannot be changed or corrupted without consensus from all participants in the network. This makes it ideal for projects such as Suncash where there is no single entity controlling all aspects of operation.

Project Set To Make Positive Impact On Society

At present, Suncash does not appear set up for major profits but rather Posthumus sees it as an opportunity for his company „to help South Africa overcome its power generation challenges“. As such, it could potentially provide much needed electricity access throughout various parts of the country while also providing additional employment opportunities through installation and maintenance work related to rooftop solar systems.

Conclusion

Overall, South African startup Momint’s Suncash initiative appears well placed in helping reduce energy worries across the nation thanks to its use of advanced technologies such as blockchain and NFTs with investors having an opportunity take part in this innovative project by purchasing low cost NFTs linked directly with solar cells their underlying asset generates revenue from sale of energy generated from them .

• Ukrainian authorities are accelerating the development of the electronic hryvnia.
• The pilot project is expected to be launched this year, according to the Ministry of Digital Transformation.
• The National Bank of Ukraine has developed a „draft e-hryvnia concept“ and testing has already been conducted on the Stellar network.

Ukraine Speeds Up Digital Hryvnia Project

Ukrainian authorities are speeding up the development of the electronic hryvnia, with plans to pilot it as early as this year. Minister Mykhailo Fedorov from the Ministry of Digital Transformation wants to finalize its development sooner than planned, with first blockchain transactions already conducted on the digital currency based on Stellar’s product.

Central Bank Develops Draft E-Hryvnia Concept

The National Bank of Ukraine (NBU) presented a „draft e-hryvnia concept“ to members of the crypto industry, banks and other financial institutions in November 2022. Tascombank also carried out tests with it on the Stellar network in January 2021. This plan for introducing CBDC is included in NBU’s Strategy 2025.

Minister Insists on Speeding Up Development

Deputy Prime Minister Fedorov has written a letter to NBU insisting that they speed up the development of electronic hryvnia so that it can be piloted this year instead of waiting until 2024 as prescribed by current Ukrainian legislation. He believes digitalization will be essential for rebuilding during these times and aims to make Ukraine into one of the best crypto jurisdictions in the world within two years‘ time.

Partner Chosen For Building Virtual Assets Ecosystem

In January 2021, The Ministry Of Digital Transformation chose Stellar Development Foundation as its partner in building virtual assets ecosystem including infrastructure for Ukrainian Central Bank Digital Currency (CBDC).

Plan To Pilot Digital Currency This Year

Ukraine is aiming to launch its e-Hyrvna pilot program this year instead of waiting till 2024 as initially planned, according to Mykhailo Fedorov from Ministry Of Digital Transformation who believes digitalization will be essential for rebuilding during these times .The first blockchain transactions have been conducted using digital currency based on Stellar’s product and Tascombank carried out tests with it on Stellar network earlier this year.

• Coinbase CEO Brian Armstrong expressed concern about rumors that the SEC may ban cryptocurrency staking for retail customers in the US.
• Armstrong said staking is not a security and allows users to participate directly in running open crypto networks.
• He argued that new technologies need to be fostered, not stifled, in the US and called for clear rules for financial services and Web3 industries for national security reasons.

Coinbase CEO Expresses Concern Over Rumors of SEC Ban on Crypto Staking

Brian Armstrong, CEO of Coinbase, recently expressed concern about rumors that the U.S. Securities and Exchange Commission (SEC) may eliminate cryptocurrency staking for retail customers in the United States.

Armstrong: Staking is Not a Security

Armstrong insisted that “staking is not a security” and that it allows users to “participate directly in running open crypto networks” such as scalability, increased security, and reduced carbon footprints.

Coinbase CEO Vocalizes Worry Over US Stifling Crypto Staking & Innovation

The Coinbase CEO argued that new technologies need to be fostered, not stifled, in the US and that it is important for the country to have clear rules for financial services and Web3 industries – such as decentralized finance (DeFi) – for national security reasons. He believes regulation by enforcement does not work as it encourages companies to operate offshore which he believes happened with FTX.

Criticism of DeFi & Staking

Not everyone agreed with Armstrong’s views on DeFi or staking as some quickly criticized both concepts on Twitter thread when he shared his opinion on them . Some poked fun at SEC Chairman Gary Gensler with a quote saying: „Guess it’s time for more protection.“ Another individual tweeted,“Realistically, the Howey test is so broad that pretty much everything is a security.“

Armstrong Calls For Clear Rules & Sensible Solutions

Armstrong hopes that industry members will work together to establish clear rules and “sensible solutions” which protect consumers while also preserving innovation and national security interests in America.

• A former adviser to the People’s Bank of China has called on the Chinese government to reconsider its ban on cryptocurrencies.
• He cautioned that a permanent ban on crypto-related products could result in missed opportunities in technologies such as blockchain.
• Despite the ongoing crackdown by the Chinese government, a significant number of cryptocurrency investors are still active in China, and mining activities have increased.

Chinese Economist Urges Government to Reconsider Crypto Ban

A former adviser to the People’s Bank of China (PBOC) has called on the Chinese government to reevaluate its cryptocurrency ban, warning that banning crypto activities could result in missed opportunities that are „very valuable“ to regulated financial systems. Huang Yiping served as a member of the Monetary Policy Committee at the PBOC between 2015 and 2018.

Government Warned of Missed Opportunities Due To Crypto Ban

Huang Yiping cautioned that a permanent ban on crypto-related products could result in missed opportunities in technologies like blockchain, which are „very valuable“ to regulated financial systems. In September 2021, the Chinese government declared all crypto activities illegal, claiming that crypto disrupted the country’s economic and financial order while providing a breeding ground for criminal activity.

Crypto Adoption Persists Despite Ban

Despite the ongoing crackdown by the Chinese government, a significant number of cryptocurrency investors are still in China according to blockchain analytics firm Chainalysis. In addition, FTX’s bankruptcy filing in November last year shows that Mainland users accounted for 8% of its customer base; FTX had over 5 million active users before it imploded. Furthermore, cryptocurrency mining activities have increased in China according to data from Cambridge Centre for Alternative Finance (CCAF). Traffic from China accounted for approximately 20% of bitcoin’s total hash rate from September 2021 to January 2022.

China Promotes Blockchain While Cracking Down On Crypto

The Chinese authorities have supported blockchain technology even as they cracked down on cryptocurrencies and related activities. Last October, President Xi Jinping said that blockchain was an important breakthrough application with far-reaching implications for future technological innovation and applications such as digital currencies and digital finance. The country is also currently developing its own central bank digital currency (CBDC), dubbed DCEP or Digital Currency Electronic Payment (DC/EP).

Conclusion

It remains unclear how China will approach regulation toward cryptocurrencies going forward. However it may have positive effects if done correctly; while there may be risks associated with cryptocurrencies, they can also bring opportunities if used responsibly and properly regulated by governments around the world