Bitcoin becomes legal tender, and the global macroeconomic pattern is quietly changing.
According to ZB Research Institute on June 11, the Congress of El Salvador voted to approve the proposal of bitcoin as legal tender submitted by the president, making El Salvador the first country in the world to recognize bitcoin as legal tender. Although the Salvadoran President explained to the International Monetary Fund on the policy of bitcoin becoming legal tender, the adoption of bitcoin will not change the macro economy of El Salvador. The International Monetary Fund (IMF) still believes that the adoption of bitcoin as legal tender in El Salvador will cause a series of macroeconomic, financial and legal problems.
According to the ZB Research Institute, the president of El Salvador has released relevant information to provide volcanic geothermal energy for bitcoin mining and reduce the energy consumption of bitcoin. In addition to El Salvador, Lord fusitua, a member of the upper house of Tonga, an island country in the southwest Pacific, said he and Jackmallers wanted to use the country’s $750 million reserves to buy bitcoin, accounting for 37% of its GPD. It is likely to be the second country to use bitcoin as legal tender.
ZB Research Institute believes that for a long time, the global dollar system has affected the currency value of most small economies and economically underdeveloped regions by the dollar, and the appreciation and depreciation of the dollar has almost become the lifeblood of small economies. El Salvador is located in Central America, with a population of 6.345 million. Its own currency is not enough to support its international trade, and the use of the US dollar must bear the devaluation caused by the release of US dollars. Based on the above reasons, El Salvador was forced to carry out a legal currency transformation of Bitcoin.
On a global scale, more small economies are facing the same dilemma as El Salvador. When more and more small economies are not satisfied with the reality of the dollar and cannot carry out economic reforms based on their own legal currency, cryptocurrencies such as Bitcoin have become the best choice.
When small economies begin to accept cryptocurrency as legal currency due to various demands, international trade with small economies will inevitably use cryptocurrency, which further promotes the formation of the global cryptocurrency application market, and forms a more authoritative use scenario at the level of the central bank’s foreign exchange reserves. It not only has an impact on the global macro-economy, but also has a significant impact on the long-term development of the currency market. The global macroeconomic pattern may change quietly with the legalization process of bitcoin by Salva team.
Affected by the above news, according to statistics of ZB Research Institute on June 11, the number of BTCs held by purpose bitcoin ETF was 19692.14, an increase of 36.31 BTCs over the previous day; The number of ETH held by purpose ether ETF was 55211.08, a decrease of 61.85 ETH compared with the previous day.At present, bitcoin’s market value accounts for 42.4%, while Ethereum’s market value accounts for 17.6%.
In terms of China’s market, according to the survey data of ZB Research Institute, there are 75100 existing blockchain enterprises in China. The number of blockchain enterprises will increase by 10900 in 2019 and 24900 in 2020, with a year-on-year growth of 128%. In the first half of 2021, the number of blockchain enterprises will increase by 15600, with a year-on-year growth of 155%. The blockchain market is still in the stage of rapid development.
According to the news on June 11, the technical personnel of the Central Bank of Nigeria (CBN) said at a news conference on Thursday that the Central Bank of Nigeria has conducted two years of research on the central bank’s digital currency (CBDC) and Nigeria may launch the cryptocurrency CBDC before the end of 2021.
On June 11, the Texas Department of banking approved state chartered banks to hold crypto assets. According to the relevant documents, the Bank of Texas has the right to choose what virtual currency custody service to provide will depend on the bank’s expertise, risk appetite and business model. ZB Research Institute believes that banks may encourage customers to transfer their cryptocurrency directly under the control of banks, create new private keys, and then hold them on behalf of customers.
State Street Digital established a new digital financial department, focusing on cryptocurrency, central bank digital currency, blockchain, DeFi and other fields. State Street Chairman and CEO Ron O’Hanley said that the financial industry is transforming to digital finance, and we believe that digital assets are one of the most important forces affecting our industry in the next five years. Digital assets are rapidly being integrated into the existing financial service framework. We must have the appropriate tools to provide customers with solutions that meet their traditional investment needs and growing digital needs.
On June 11, according to the ZB Research Institute, the Indian government’s position on cryptocurrency is tending to ease. The Indian government has given up its previous plan to ban bitcoin completely and plans to classify cryptocurrency as an alternative asset. In addition, the securities and Exchange Commission of India, in cooperation with the Ministry of finance of India, will be jointly responsible for supervising the development of the country’s cryptocurrency regulations.
