Summary:

• George Soros, who called cryptocurrencies a bubble in January, plans to trade digital currencies
• Chinese PBoC is reportedly aiming to terminate a crypto crackdown begun last year
• Pakistani central bank briefs banks and other financial services providers to stop supporting virtual currency transactions

During the last year there were several businessmen and the most prominent people from the business world including Jamie Dimon who expressed their stern remarks with regard to cryptocurrencies. The beginning of this year brought the similar story, this time from George Soros who called virtual currencies a bubble in January. However, a few months later he (to be precise his $26 billion family office) is reportedly going to trade digital coins. The report could have stood behind a bounce in Bitcoin at the start of the week. Currently, it’s trading 8% higher on the day albeit the major obstacle remains in place, and until the price stays below $7300 bears seem to still hold an advantage. According to Adam Fisher, who oversees macro investing at NY-based Soros Fund Management, the company got approval to trade cryptocurrencies already several months ago, but it has yet to make a bet. Finally let’s remind that Soros said during the World Economic Forum in Davos that “digital coins cannot function as actual currencies because of their volatility”.

Although Bitcoin broke above its downward trend line but the pace was lacklustre. That said it seems to be too early to claim bulls’ victory. Nevertheless, once the price manages to move above $7300 it would open the way toward $9350. Source: xStation5

Chinese PBoC is reportedly aiming to terminate a crypto crackdown begun last year

The Chinese authorities began its crackdown on digital currencies last year when it stopped all domestic cryptocurrency exchanges from dealing with the China’s currency. Several months later China is purportedly aiming to finish this move by introducing new reforms and supervision. The China’s central bank revealed last week that it will undertake a two-step measure. The first one will be aimed at intensifying reforms and innovations to promote the central bank’s digital currency research and development. In turn, the second one is to strengthen and rectify all types of virtual currencies. Earlier this month the PBoC general director for financial research explained that traditional fiat currencies have adverse effects on the economy’s interest rates, and that’s the reason why the bank keeps working on its own digital coin. However, it does not mean the bank has taken a favourable approach to cryptocurrencies in general. It’s actually the other way around, thanks to having its own cryptocurrency the bank could be interested in promoting it worldwide rather than easing its stance on public blockchains such as Bitcoin.

Ethereum moved above an upper limit of a descending channel and it keeps gaining momentum. The first hurdle may be localized at around $675 giving bulls quite vast room to keep moving. Source: xStation5

Pakistani central bank briefs banks and other financial services providers to stop supporting virtual currency transactions

The Pakistan’s central bank briefed banks and other financial services providers to halt supporting cryptocurrency transactions citing an array of risks. The bank underlined that they (digital coins) are highly volatile, unstable and the prices are primarily based on speculations. On top of that it added that risks include failures and closures of virtual currency exchanges and businesses for any reason as well as the dubious security system (exchanges, wallets). Do notice that the Pakistani central bank followed the move undertaken by its Indian counterpart.