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Governments Need to Start Accepting Crypto Revolution and stop Dismissing it as Illicit Payments and Reckless Speculation, Says El-Erian

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Mohamed El-Erian, president of Queens College, Cambridge University, and also an adviser to Allianz and Gramercy Funds Management has urged the crypto world and western governments to cooperate.

 “The time has come for more western governments to stop dismissing the crypto revolution as some mix of illicit payments schemes and reckless financial speculation,” he said

The Egyptian-American businessman is also chief economic adviser at Allianz, the corporate parent of PIMCO, one of the largest investment managers, where he was CEO and co-chief investment officer. Last year, he was also appointed chair of Gramercy Funds Management, a dedicated Emerging Markets investment firm.

In an opinion piece which he authored in the Financial Times published Thursday, El-Erian wrote:

The time has come for more western governments to stop dismissing the crypto revolution as some mix of illicit payments schemes and reckless financial speculation.

“Instead, they should be more open to embracing the innovations of crypto and channeling them in a better direction for finance, the economy, and society at large,” he advised.

In an interview with Yahoo Finance Friday, he elaborated on this topic. “Both the crypto world and governments need to come together and talk a common language,” he began. “We have in the crypto revolution really important innovations that have to do with the payment system. And, we have to take that seriously.”

He continued: “Why do we have to take it seriously? For two reasons. One it can make financial intermediation more efficient. Second, if we’re not careful, China, which is taking a very top-down approach may start defining the agenda.”

The advisor also said that crypto supporters need to deepen their engagement on regulatory and energy issues. “They need to shift away from a ‘zero-sum’ mindset where their gains can only come from the losses of the established financial system,” he suggested, noting:

Absent a more co-operative approach, both sides of the crypto world in the west may find their future being determined by what a faster-moving China is doing and intends to do.

El-Erian advised that the crypto world “has to take seriously concerns about illicit payments, concerns about money laundering, and concerns about energy use.”

Since many governments, including the U.S., are skeptical about cryptocurrencies, he explained that there are two risks if governments and the crypto world do not cooperate. The Allianz advisor detailed:

The internal risk is that the government will see greater adoption by the private sector. We are seeing it every single day, so it’s not something that’s going to disappear. The second more important issue is that China is not waiting.

Noting that China has already decided what digital money should look like, El-Erian warned: “It [China] has decided it should have a top-down approach and it has decided that it wants to export its approach. Why? Because it gives it access to payment platforms regionally. It gives it access to data. So, we have to take it seriously otherwise we are going to lose the narrative completely.”

Do you agree with Mohamed El-Erian?

Dogecoin Blew XRP Away to Become the Top-4 Valuable Crypto as Price Finally Tops 69 Cents,

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Dogecoin Unseat XRP to Become the Top-4 Valuable Crypto as Price Finally Tops 69 Cents,

A season of mind-blowing moments in the world of Cryptocurrency as the Shiba Inu-represented Crypto (Dogecoin) soar higher which didn’t occur on a Dogeday, but “ruffly” two weeks after the price of the Dogecoin (DOGE, -1.57) slightly surpass 69 cents, the target the DOGE army had set for April 20- 4/20 or “National Stoner Day”.

Dogecoin is the fourth-most valuable crypto in the world with a staggering 13,611% year-to-date and is up 1,016% over a 30-day period and a sensational change in hands for around $0.66 after climbing to a record high of around 0.696 at 05:00 UTC on Wednesday, up over 38% in the last 24hours.

The Doge project appears to have “remarkably strong fundamentals and powerful forces supporting its rise, and according to report there were over 3.6 million addresses holding some amount of DOGE, with around 60% of total supply having moved in 2021.

Its surging popularity now means DOGE has unseated XRP (+14.28%) as the fourth-largest cryptocurrency by market capitalization on Messari and CoinMarketCap.

DOGE is now valued at around $84.2 billion in total, while XRP is placed sixth at around $55.9 billion, per Messari. For comparison, bitcoin (BTC, +3.76%) remains king with a capitalization above $1 trillion.

By this metric, Dogecoin is now worth more than U.S. multinational delivery services company FedEx.

The Shiba Inu-represented Crypto (Dogecoin) which started in the year 2013 as a joke, has blew most serious coins away as “People love a good joke.”

Growth and user adoption in the project have come from multiple angles this year. Multi-asset brokerage platform eToro added support for the cryptocurrency on Monday following strong demand from its clients. Gemini followed suit by announcing the coin’s listing on Tuesday.

The supports from a Multi-asset brokerage platform eToro on Monday following a strong demand from its clients, and Gemini who followed suit by announcing the coin’s listing on Tuesday, have made Dogecoin to thrive beyond imagination while the effects of Tesla’s Elon Musk and billionaire investor Mark Cuban have continued to spur on its price.

eToro Support Elevates Dogecoin To Hit New All-Time High

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Dogecoin Hits New All-Time High After eToro Listing

Dogecoin (DOGE) tapped fresh lifetime highs on Tuesday in the wake of a new exchange listing.

The Shiba Inu dog-branded cryptocurrency rose to $0.4876 during the European trading hours, topping the previous record price of $0.47 registered on April 16, according to CoinDesk data.

The latest leg higher comes a day after multi-asset brokerage platform eToro announced support for the cryptocurrency, citing strong client demand. The new listing opens dogecoin to some 20 million users spread across the globe.

The quick recovery from a 40% April 23 flash crash shows a strong “buy the dip” mentality in the market. The cryptocurrency has rallied more than 9,000% this year, outperforming the likes of bitcoin and ethereum by a large margin.

With the staggering rally, DOGE’s market capitalization has surged to over $59 billion, according to Messari, making it the fourth-largest cryptocurrency in the world. Daily miner revenues recently rose to new record highs above $3 million.

The project, which started as a joke in 2013, has gained mainstream acceptance this year with the likes of NBA team Dallas Mavericks, medical supplier CovCare and several others adding support for dogecoin as a payments alternative. Tesla CEO Elon Musk has also been prone to tweeting about the coin, often prompting price rises as a result.

At last, Russian Parliament make cryptocurrencies a property in the country

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In the world today, where digitalization has gradually taken over, Russia’s parliament has moved ahead of all many countries to accept the use of digital currency (cryptocurrencies) as a property in the country.
The proposed law will provide legal protection for cryptocurrencies but income from their activities will also be subject to taxation.
Cryptocurrencies to Be Considered Property in Russia


On December 1, 2020, a document was submitted to the parliament by the Russia’s State Duma, the l’ower house of Parliament, RIA Novosti reported last week that they have adopted a bill that recognizes cryptocurrencies as property and subjects income from them to taxation in the first reading.
The Prime Minister Mikhail Mishustin has explained, the purpose of the bill is which recognizes digital currency as property is for the application of the tax code, and as well to defend the stability of the digital currency, the various owners of the cryptocurrencies will be subjected to defend rights and legal proctection in court.
A country with vision and right mind to fight the pandemic outbreak of coronavirus, earlier in November, Prime Minister Mishustin mentioned the initiatives, which includes cryptyocurrency regulation and the vision of the Russian government’s to recognize and accept cryptocurrencies as property.
The State Duma Committee on Budget and Taxes are yet to clarify which crypto transactions are exempt from VAT when finalizing the draft for the second reading. In addition, it will specify the declaration requirements for disposing of digital currency and submitting reports on transactions.


Lets us know in the comment box below on what you think about Russia recognizing cryptocurrencies as a property.

RECENT MOVE IN DOGE COIN

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The ‘Elon Musk Effect’ caused a shift in investing pattern

Musk’s tweets have brought  some wild moves in the financial markets recently, sparking a new wonder

Musk has long been a prolific user of social media and has a strong familiarity with the online culture. The electric-car pioneer has been known to stir up some trouble with his tweets — In 2019 Musk had to pay a high price for a settlement with SEC (Securities & Exchange Commission) after his infamous “funding secured” tweet to take Tesla private at $420 a share. One thing’s for sure, that saga hasn’t stopped him from being “himself” on Twitter.

Coming back to some of the most volatile moves in the recent financial market were precipitated by the World’s richest person tweeting to his 44 million users — although the messages this time were much more subtle than the 2019 event. First the most shorted stock on the U.S market GameStop, then Bitcoin, and eventually DOGE coin.

But Musk might not be the pioneer in moving financial markets with his tweets. If you haven’t forgotten already, the ex-US President Trump used to be fixated on the performance of the stock market and used to tweet a lot! And being the President of the U.S, his tweets used to have a major impact on markets. So much so that JPMorgan came up with the Index to measure the market reaction to Trump’s tweets. I wrote about the Volfefe Index, back in 2019.

The aftermath has been horrendous — big hedge managers lost billions of dollars, trading apps halted trades, regulators & lawmakers got involved and in the end, the stock eventually lost most of the gains. Then Musk said that he was a “supporter” of Bitcoin in an interview carried on an audio-based social media app, Clubhouse. All he had to do was add #Bitcoin to his Twitter profile and the BTC price ticked up a few thousand dollars in a matter of hours.

And finally, Dogecoin’s price rose by 50% on 4 February shortly after Musk, tweeted that “Dogecoin is the people’s crypto” — along with this picture of himself and dogecoin in Disney’s The Lion King. The volume of trading more than tripled over the course of the day. DOGE coin that was started in 2013 as a joke to imitate Bitcoin has caught on and now has a market cap of $5.8bn, at the time of writing (14th largest crypto).

Anyways, Cryptos are used to this kind of volatility and hype that stirs the digital space every now & then, but the mayhem that the legacy financial markets witnessed was something out of the ordinary. The digital disruption caused by the use of the latest technology (smartphone, commission-free apps & social media platforms) has made retail traders a force to reckon with. Days of big money managers & institutional traders running the show might be numbered.

Something considered unfathomable a few years ago might be the new reality with the paradigm shift that’s happening. And as I like to call it, the ‘Elon Musk Effect’ might have proved to be the catalyst in bringing about this change.