2023-11-08 19:27

Copyrighted Image by: Reuters. Today, the Central Bank of Nigeria (CBN) addressed public concerns over the legitimacy of old Naira notes and rumors of cash scarcity. Isa AbdulMumin, Director of Corporate Communications at the CBN, confirmed that all CBN-issued banknotes are legal tender, including redesigned ones. The confirmation is rooted in Section 20(5) of the CBN Act 2007. AbdulMumin directed CBN branches to ensure a continual supply of both old and redesigned banknotes to Deposit Money Banks (DMBs). He emphasized that there were ample banknotes for regular economic activities and should not be refused as a means of payment. To alleviate pressure on physical cash, the CBN endorsed the use of alternative modes of payment. The Central Bank reassured the public that there was a sufficient stock of currency to sustain normal economic activities and warned against panic withdrawals. The public was also encouraged to accept all circulating CBN-issued banknotes. This move by the CBN comes in response to rumors of cash scarcity and public concerns over the legitimacy of old Naira notes. https://www.investing.com/news/forex-news/central-bank-of-nigeria-refutes-cash-scarcity-rumors-affirms-legality-of-old-naira-notes-93CH-3227509

2023-11-08 18:11

Copyrighted Image by: Reuters. Today, Hungarian Foreign Minister Péter Szijjártó urged the European Union (EU) to adopt a realistic approach to the ongoing energy crisis at the 6th Romanian International Gas Conference. He emphasized that energy supply is a physical reality, not a political or ideological issue, and called for an end to the over-politicization and idealization of energy supplies in Europe. Szijjártó criticized the EU and certain member states for their opposition to expanding Southeastern Europe's natural gas transportation system. He identified Brussels and some member states as barriers due to their limited transport capacity from potential sources like Turkey, Azerbaijan, and Qatar. The Foreign Minister disputed Brussels' stance against pipeline expansion, advocating for each country's autonomy in managing its energy consumption. He also expressed Hungary's need for energy diversification, citing its reliance on countries selling resources and those involved in transit due to its geographical constraints. Szijjártó views diversification as involving new suppliers rather than replacing a reliable supplier. However, he named Brussels and some EU member states as significant obstacles to this diversification. The situation has been exacerbated by the European Commission's refusal to fund capacity upgrades in these countries based on a forecasted 15-year phase-out of natural gas. Szijjártó condemned Bulgaria's decision to hike transit fees on Russian gas transported via the TurkStream pipeline, warning of potential threats to Hungary and Serbia's energy security. He insisted on upholding the principle of European solidarity, emphasizing that no EU member state should compromise another's energy security. Hungary, a landlocked country without significant hydrocarbons, relies heavily on resource and transit countries. Despite linking its energy network with six out of seven neighboring countries and an annual import of 2.6 billion cubic meters of gas from Romania, a stable gas supply remains elusive without Russian sources. Hungary's domestic gas production is 1.5 billion cubic metres per year, necessitating an additional import of 8.5 billion cubic metres to meet its demands. https://www.investing.com/news/commodities-news/hungary-calls-for-eu-to-rethink-energy-policy-amid-crisis-93CH-3227466

2023-11-08 18:08

Copyrighted Image by: Reuters Crypto analyst Benjamin Cowen has issued a warning about potential negative impacts on Bitcoin (BTC) and the S&P 500 (SPX) due to possible Federal Reserve interest rate cuts, contradicting common beliefs that rate cuts lead to improved performance for risk assets. Today, Cowen drew attention to historical patterns suggesting both BTC and the SPX could likely face a downward trend following a rate cut. He referenced the period from 2016 to 2018 when rate hikes coincided with rises in both markets. He noted that the Bitcoin market bottomed out when the Fed paused rates in December 2018, followed by a market peak before the first rate cut in July 2019. Cowen also pointed out similar trends with the S&P 500, which experienced market peaks around times of rate cuts in 2000 and 2007. Challenging conventional wisdom, Cowen argued that markets typically worsen once rate cuts start. He predicts that both BTC and SPX will only rally once the Federal Reserve nears the end of its rate-cutting process, as initial cuts often fail to sufficiently stimulate a tight economy. Despite Cowen's warnings, positive Bitcoin price predictions have emerged in recent weeks, largely influenced by the acceptance of BTC ETF. Cathie Wood from ARK Invest holds a contrasting view to Cowen's, predicting Bitcoin will surge as soon as the Fed is required to pivot. https://www.investing.com/news/cryptocurrency-news/crypto-analyst-warns-of-potential-bitcoin-sp-500-downturn-amid-fed-rate-cuts-93CH-3227462

2023-11-08 18:08

The legal skirmish between the U.S. Securities and Exchange Commission (SEC) and Binance, one of the world's largest cryptocurrency exchanges, escalated today as the SEC filed new accusations against Binance, its U.S. subsidiary Binance.US, and CEO Changpeng "CZ" Zhao. The SEC staunchly opposed Binance's recent plea for dismissal of the lawsuit, accusing them of security law violations and fraudulent activities. John Reed Stark, a cybersecurity expert, highlighted these developments in a post today, sharing a screenshot of the SEC's opposition to Binance's unlicensed U.S operations. Stark forecasted a legal defeat for Binance, given the compelling nature of the SEC's arguments. He pointed out that the SEC has accused Binance of intentionally violating federal securities laws while acting as a broker, dealer exchange, and clearing agency. Furthermore, the document alleges that Zhao and Binance orchestrated a scheme to falsely depict their non-operation in the U.S., while secretly profiting from its capital markets and exerting control over operations to such an extent that employees felt manipulated. The SEC's lawsuit against Binance, Zhao, and Binance.US originated in June 2023 over allegations of listing unregistered securities. It has since evolved into a complex dispute over access to U.S customer funds. Despite these accusations, Binance maintains that the SEC is overstepping its jurisdiction. https://www.investing.com/news/cryptocurrency-news/us-sec-intensifies-legal-battle-against-binance-and-ceo-zhao-93CH-3227461

2023-11-08 18:06

Copyrighted Image by: Reuters. The Bank of England (BoE) and the Financial Conduct Authority (FCA) have initiated a regulatory regime for stablecoins, particularly those denominated in sterling, and other systematic payment systems. The move aims to maintain trust in money and payments while addressing concerns over money laundering and de-pegging. The regulatory changes broaden both the bank's and the FCA's purview to include operators of systemic payment systems and service providers approved by HM Treasury (HMT), along with entities transferring 'digital settlement assets' such as stablecoins. Stablecoins are privately-issued digital assets designed to hold steady value against fiat currency. The BoE's and FCA's enhanced powers allow them to regulate “systemic payment systems” involving these digital tokens and associated service providers dealing with digital settlement assets. According to the BoE's report, there is substantial potential for UK citizens to use stablecoins in daily transactions. The proposed regulations operate on the principle of “same risk, same regulatory outcome,” suggesting comparable risks between systemic payment systems using stablecoins and conventional ones. Unbacked crypto-assets are deemed unsuitable for extensive retail usage in the UK. The BoE, along with the FCA, represented by figures such as Sarah Breeden and Sheldon Mills, is pushing for the integration of stablecoins into the UK payments system. This is part of a post-Brexit digital assets strategy aiming to fortify the UK's position as a leading digital assets hub. The two institutions plan to collaborate on regulating pound-backed stablecoins, with clearly delineated roles. These digital tokens, pegged to hard currencies, are being considered as a valid option for retail transactions rather than just cryptocurrency payments. Proposals include strict regulation and oversight, with the BoE supervising entities behind stablecoins. To ensure stability, these tokens should be fully backed by central bank deposits, and issuers must maintain robust plans for managing redemptions. The FCA, on the other hand, announced plans for strict stablecoin regulation, emphasizing high authorization standards. It is seeking industry feedback and issuing warnings about non-compliance penalties. The proposals also consider the role of 'payment arrangers' in assessing foreign stablecoins' suitability for use in the UK. Stablecoins offer potential benefits such as faster, cheaper payments but also face challenges, including some failing to maintain their value peg to hard currencies. No current stablecoin meets the BoE's and FCA's proposed criteria, but this could change with rapid company growth or partnerships between stablecoins and established firms with large customer bases for payments. https://www.investing.com/news/cryptocurrency-news/uks-bank-of-england-initiates-regulatory-regime-for-stablecoins-93CH-3227463

2023-11-08 18:02

Copyrighted Image by: Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect On Wednesday, both the S&P/TSX composite index and major New York indices, including the Dow Jones average, S&P 500 index, and Nasdaq composite, experienced a downturn due to weakening energy and base metal stocks, a consequence of falling commodity prices. The Canadian dollar also declined in value compared to its rate on the previous day, dropping to 72.48 cents US. The decline in commodity prices was reflected across several December contracts. Crude oil prices fell by US$1.63, settling at US$75.74 per barrel. Natural gas prices saw a decrease of three cents, coming to rest at US$3.11 per mm/BTU. Precious metals were not immune to the downward trend either. Gold prices experienced a reduction of US$14.50, bringing it down to US$1,959.00 an ounce. Similarly, copper prices dropped by three cents, settling at US$3.65 a pound. These adverse market conditions have had a significant impact on key sectors like base metal and energy stocks in Canada's S&P/TSX composite index and similarly in New York indices such as the Dow Jones average, S&P 500 index, and Nasdaq composite. This overall decrease in commodity prices demonstrates the interconnected nature of global markets and their susceptibility to market trends and conditions. https://www.investing.com/news/commodities-news/sptsx-composite-index-and-ny-indices-dip-amid-falling-commodity-prices-93CH-3227456