updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131The European Investment Bank occupies a very pivotal position in driving the financial landscape of the industry in the European Economic Area.
The European Investment Bank (EIB) has launched the first Digital Sterling Bond on the blockchain as it deepens its use of the technology for more mainstream financial securities and products. As reported by Reuters, the EIB deployed a private blockchain to host the digital Sterling bonds, and it plans to float another copy on a public blockchain in a bid to foster transparency.
The launch of the digital sterling bond on the blockchain was achieved in partnership with the three financial services giants. These include French multinational banking giant, BNP Paribas SA (EPA: BNP), the British banking firm HSBC Holdings plc (NYSE: HSBC), and RBC Capital Markets.
Per the Reuters report, the digital Sterling bond is a 50 million pound ($61.60 million) floating rate bond that took its cue from the euro-denominated digital bonds that were previously launched by the European Investment Bank.
The new product is being hailed by industry experts and the EIB’s Vice President, Ricardo Mourinho Felix said the new product represents a new landmark in the financial services ecosystem.
“This new financial tool will provide additional capital flow that the EIB will invest in projects with global impact,” he said in a statement.
The European Investment Bank occupies a very pivotal position in driving the financial landscape of the industry in the European Economic Area. With targeted products, the bank is standing in the gap to offer support for both private and public entities with defined products and services in the EU.
In one of its related investment commitments, the EIB and HSBC entered into a partnership to finance trade for mid-caps and SMEs in Greece with the sum of €200 million. The financing was designed to assist export-oriented startups in Greece which are pivotal to stabilizing the economy as a whole.
“Our partnership with the EIB encourages the expansion of international trade by supporting small and medium-sized business to trade internationally,” adds Vinay Mendonca, chief growth officer for global trade and receivables finance at HSBC. “The expansion of the Trade Finance Facility by a further €200mn builds on the success of the previous agreements and will help even more Greek companies to grow and prosper.”
The global economy is experiencing a unique slump with the growing inflation that crippled many markets around the world in the past year. The European economy is notably being depressed more than the others as a result of the ongoing war between Ukraine and Russia which has precipitated an energy crisis in the region.
The efforts from investment firms like the EIB are helping to cushion the impacts of these global uncertainties across the board, a move that is projected to start yielding dividends in the mid to long term.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
The pound sterling is experiencing heavy turbulence. The dollar is eating it all. Bitcoin is in a deep slumber. What a time to be alive! Things are moving and shaking in the finance world and the general population can’t do much but watch the show. And place their bets. British people recently saw the pound sterling and the euro sink to all-time lows against the dollar. A percentage of the population reacted by acquiring bitcoin, the charts show.
Another important factor is that the pound sterling’s “volatility last week was highly unusual, creating opportunities and price discrepancies.” The currency crisis created potential possibilities, and British traders seem to have taken advantage of them. As a reminder, the pound sterling saw “a feisty week in the UK pending proposed and later abandoned tax cuts.” This is all according to Arcane Research’s The Weekly Update.
In Bitcoinist’s first report on the situation, our sister site said:
“The UK’s interest in Bitcoin (BTC) will expand “quite quickly” as fiat currency instability makes the flagship digital currency asset resemble a stablecoin, analysts said.
As one of several this week to highlight BTC’s attractiveness over the pound sterling, strategy adviser at financial firm VanEck Gabor Gurbacs came to that decision.
“Because of the instability of the pound,” Gurbacs warned, “the United Kingdom will get orange-pilled very rapidly.”
The last factor to analyze is this one, “most of the growth was concentrated in spiking volumes on Bitfinex.” Why was that? Keep reading to find out.
The headline is this one: the BTCGBP trading volume’s 7-day average reached an all-time high this week. Also, surprising no one, “similar tendencies occurred in ETHGBP.” How high was the all-time high, though? Back to The Weekly Update, “BTCGBP pairs saw trading volumes climbing above 47,000 BTC last Monday, after having experienced growth throughout the latter parts of September.”
BTCGBP Trading Volume (7d Moving Average) | Source: The Weekly Update
As for the reason for the pound sterling to bitcoin movements, Arcane Research’s analysts blame it on “market maker rebalancing.” Although they also recognize that bitcoin is “gaining mind share amidst declining trust in the British Pound.”
A similar thing happened to the Russian ruble at the beginning of the conflict with Ukraine. At the time, our sister site Bitcoinist reported:
“The new all-time high on the BTCRUB pair is the result of the Russian ruble falling more than 50% against the United States dollar since the start of the year. As the global reserve currency, most financial assets are priced in USD.”
Will the pound sterling rebound as fast as the ruble did? Or will the dollar continue to dominate for the foreseeable future?
BTC price chart for 10/05/2022 on Gemini | Source: BTC/GBP on TradingView.com
The analysts at Arcane Research identified another fascinating factor. An incentive, if you will. They named it a “prolonged structural mispricing” and it refers to a “dollar-adjusted premium or discount in Bitfinex’s BTCGBP pair last week.” All you have to do is adjust “the BTCGBP pair to USD,” to see that the pound sterling / bitcoin pair “traded at a significant discount to dollar spot.” This was an effect and not a cause. The market movements created this arbitrage opportunity. People who detected the incentive on time, profited.
“As the GBP bottomed vs. the USD, BTCGBP traded at a massive discount compared to BTCUSD. The discount turned into a prolonged premium with certain wicks deep into discount terrains as GBP traded in a highly volatile environment.”
Despite the significance of this factor, Arcane Research still believes that “the predominant force was market makers reducing their exposure” to the pound sterling.
Featured Image by Ewan Kennedy on Unsplash | Charts by TradingView and The Weekly Update