The ongoing COVID-19 pandemic has accelerated the development of digital currencies by central banks in a bid to encourage people to turn to cashless payments.

One such project is being led by Lithuanias Central Bank, which will open a pre-sale for the worlds first digital collector coins - dubbed "LBCOINs" - on July 9 as part of its trial of blockchain technology and digital currencies.

The Bank of Lithuania (BoL) has been developing the project since March 2018 and is now entering the final phase of the trial.

The project is more of an experiment rather than the official launch of a tradeable currency. 24,000 digital LBCOINs will go on pre-sale this week, sold in packs of 6 for 99. Each token will feature a portrait of one of the 20 signatories of Lithuania's declaration of independence signed in 1918, which have been divided into six categories: priests, presidents, diplomats, industrialists, academics, and municipal servants.

Collectors will be able to trade tokens then exchange a specific set a token from each of the six categories for a physical silver coin worth 19.18. The BoL explained that their use as a means of payment will not be encouraged as it is meant to engage more people, especially the youth, in coin collecting while gaining valuable experience and knowledge in the field of digital currencies.

Decentralised, secure, and encrypted, a blockchain is a time-stamped series of data that is shared and authenticated by a cluster of computers. The technology is considered to be revolutionary because it helps reduce risks, affords transparency, and is not owned by one single entity.

According to Sinop Conseil consultant Florence Presson, the need for blockchain originates from the loss of trust between citizens and institutions. People tend to trust a stranger more than an institution, says Presson. She advocates for trust devolution based on blockchain technology and believes both administrations and citizens could really benefit from it when it comes to official records: birth certificates, deeds of sale, and so on.

Blockchain Partner co-founder, Alexandre Stachtchenko argues that blockchain also tackles other shortcomings of the Internet: how to transfer value and depict something as rare when it is not unique. Unlike an e-mail, once youve sent out a bitcoin, you cannot access it anymore, he explains. The blockchain expert notes with regret that the monetary discussion has been overshadowing the technical one, with blockchain often being associated with cryptocurrencies with much-publicised bitcoins.

Stachtchenko believes that the BoL's interesting, unpretentious initiative will fuel the debate about cryptocurrencies and deal with the elephant in the room. With developments like Facebooks cryptocurrency Libra, which should be launched by the end of the year, governments sovereignty is now being challenged with one of their main prerogatives: the establishment and the management of currency.

There is no doubt that other countries will be following this experiment closely as the race for a central bank digital currency (CBDC) is accelerating. In a report published on July 2, the Bank of Japan announced moving towards a testing phase aiming at introducing a CBDC eventually.

A survey conducted in January 2020 among 66 central banks by the Bank for International Settlements showed that more than 80 per cent of them were developing a central bank digital currency.

In a speech at the Consensus 2020 virtual conference on May 11, Vice-Chair of the Supervisory Board of the European Central Bank (ECB), Yves Mersch recognised that Europe will need to be ready to embrace financial technological innovation which has the potential to transform payments and money faster, and in more disruptive ways, than ever before."

This represents a sea change with ECB leaders, particularly given that former President Mario Draghi stated in 2017 that no member state can introduce its own currency; the currency of the eurozone is the euro in response to Estonian government's proposition to promote the circulation of a new cryptocurrency.

Read more here:
Explainer: What is 'LBCOIN,' the new Lithuanian state-backed cryptocurrency? - Euronews

One of cryptocurrencys main benefits is the ability to conduct trusted transactions swiftly. However, the anonymous and decentralized nature of these transfers can be leveraged by fraudsters to wash money or trick legitimate crypto investors. In order to keep their customers investments truly clean, exchange service Indacoin has adopted Kaspersky Fraud Prevent to halt this foul practice.

Many fraudsters launder funds from stolen cards or using leaked card details before they transfer them to their bank accounts and it is estimated that around three-quarters of laundered cryptocurrency in 2018 was washed with an exchange service. They are also able to manipulate crypto exchange users to transfer money into another account by impersonating security service members and using tools for remote access. As this software is legitimate, traditional security solutions may not be alerted to any risks and mark it as dangers. These cases not only put users investments at risk but also negatively impacts the reputation of exchange services.

It is critical to identify and block these damaging transactions, without affecting the speed of legitimate transfers of funds. The cryptocurrency exchange rate is known to be quite erratic. which means investors rely on their payments being processed very quickly.

Indacoin, a leading fiat-to-crypto exchange, provides a simplified verification process, which allows customers to use its partners services without any additional difficulties. To eliminate risks of the platform being misused, Indacoin has turned to the Kaspersky Fraud Prevention service. The Automated Fraud Analysis uncovers fraudulent transactions in real-time. It also can detect fraudster groups through global device reputation and extended fingerprinting analysis, so it is capable of detecting suspicious activity before the act of fraud has actually damaged the business.

As a result of Kaspersky Fraud Prevention being integrated into Indacoins antifraud system, its efficiencies rose by 38%. The most noticeable improvement was the ability to identify operations when operations were conducted on a clients computer or phone via remote access.

Anvar Sidorov, Director of Partnerships at Indacoin, provided his commentary: The crypto exchange has many unique features, but in general, we share the main risks of financial institutions: security of cards and payment information, as well as security of personal accounts and safety of clients funds. The implementation of Kaspersky Fraud Prevention helped to identify highly targeted fraud schemes, identify dishonest users with advanced precision and implement machine learning in the verification system.

We are delighted to be chosen by Indacoin, and it is always great to see a business take cybersecurity seriously. Fraudulent transactions are common on crypto exchange services and this has the potential to damage investor loyalty in this new sphere. By integrating Kaspersky Fraud Prevention with their exchange, Indacoin is positioning itself as a trusted partner for cryptocurrency investors in what is a highly competitive market, comments Claire Hatcher, Head of Business for Kaspersky Fraud Prevention.

If you have an interesting article / experience / case study to share, please get in touch with us at editors@expresscomputeronline.com

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Kaspersky Fraud Prevention helps Indacoin halt fraudulent operations with cryptocurrency - CRN.in

As many institutional investors and globalbanks search for regulated crypto assets to investin,Arcoincreated byArcaLabs seemsto solve suchneeds.

TheArCoinisbuilton theEthereumblockchainand represents stakes inArcas U.S. Treasury Fund, which is regulated by the American Securities and Exchange Commission. Also, it ismade up of 80% U.S. Treasury securities.

TheArcasU.S. Treasury Fund can be traced through a customizedplatform, which enables peer-to-peer transactions. However, for the time being,ArCoinis unavailable on any major securities exchanges.

READ MORE: Tether market capitalization surges close to $10 Billion

In a prospectus filed with the SEC in April 2019 for the then-developingArCoin,Arcaexplained that:

In the future,ArcaUST Coins may betradeableon a public decentralized or centralized electronic exchange platform that is registered with the SEC as an alternative trading system (ATS), although there is no guarantee any such systems or platforms will be available.

Quick fact;The Funds shares (ArCoins or shares) can be transferred in peer-to-peer transactions onEthereum, an open, public, distributed ledger that is secured using cryptography (referred to as a blockchain).

READ ALSO: Zilliqa, the fast-rising cryptocurrency that has gained more than 845% since March

Ethereum records transactions between two parties in a verifiable and permanent way referred to as immutability.

There are no share certificates, and because the shares can be transferred in peer-to-peer transactions using Ethereumstechnology, the shares are characterized herein as digital securities. For more information, including the costs and risks of effecting transactions onEthereum, see Peer-to-Peer Transactions, About the Digital Securities and Risks of Digital Securities.

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Inaddition, JeraldDavid, president ofArcaCapital Management, which overseesArcaLabs, explained to Cointelegraphof theirintentions inusing Treasury-based assets:

We wanted to create an instrument that invests in traditionally lower-volatility assets and the U.S. Treasurys were an ideal choice from that perspective.

More:
There are now 13173 BTC millionaires around the world - Nairametrics

We have seen investors and consumers alike deliberate about what the economy will look like post-pandemic. As the world emerges from the crisis, industries that have been shut down will be left surveying the widespread damage, some of it permanent. Consumers will likely be split between the fortunate ones that have been able to work and others whose livelihoods have been compromised as a result of the shutdown.

To mitigate the sever economic impact, governments and central banks globally are printing and distributing extra money to prop up parts of the economy which can no longer function at pre-Covid capacity levels. In the UK alone, an estimated 123bn has already been plugged into the economy and there are estimates that Bank of England stimulus levels could peak at 1 trillion.

Despite the argued necessity of these measures, it is almost impossible not to question the impact on inflation. This massive increase in governmental quantitative easing will have an impact on the global economy, and for asset prices in particular. While inflation is defined as the rate at which the average price level that particular goods and services increase over a period of time, its easier in this context to regard it as the result of a decrease in purchasing power.

As a result, investors will often look safe-haven assets that could provide a hedge against rising prices and avoid the destructive impact of inflation. Gold price is one indicator, and at the time of writing it is seeing a ten-year high while Londons FTSE 100 tumbled 2.8 per cent, and the Eurex Exchange reported a 59 per cent month-on-month decline since April volume. Historically gold had been used as a hedge to protect against economic events including inflation or currency devaluation. Although we can expect this use to continue as a popular option, the pandemic has shown a shift in consumer interest to other safe haven asset classes.

Cryptocurrency is an alternative method of inflation protection which should not be overlooked. Although previously appearing as counterintuitive due to perceived volatility, digital assets have held their own against the stock market, unlike other commodities such as oil. The value of oil has crashed due to vanishing demand and a resulting supply excess causing the price to fall to negative value.

While the comparison between gold and crypto has some nuances the broader theme of Bitcoin as a protective hedge against inflation has broken through especially after the BTC halving we saw in early May. This event has brought attention to Bitcoins controlled supply, with only 21 million max tokens being permitted. At a time when more paper currency is being created in circulation, the amount of Bitcoin halving is causing investors to look away from government-backed paper. While also highlighting the use of cryptocurrency generally as a means of exchange within a more digitally oriented world economy.

In contrast, digital assets have seen a different story. Without the worry of political interference and variable supply rates, cryptocurrencies can benefit from being a less vulnerable investment in times of crisis. We have seen that Bitcoin is still up 22 per cent from a year ago. Newer coins like Tezos are up around 30 per cent so far this year. Both digital currencies highlight that crypto volatility is potentially a sign of the past, especially when compared to the volatility in traditional asset markets.

With crypto trading operating 24/7, 365 days a year with instantaneous settlement while traditional equities still have fixed trading hours and have a settlement cycle of T+3, crypto can provide even more perceived security and flexibility for investors. Cryptocurrencies can also be used as a tool for portfolio diversification and as a method of protection against the economic and political uncertainties to come.

We have witnessed economic disruption before, across ongoing periods of hyperinflation in Venezuela and Zimbabwe more recently, and in Weimar Germany in the 1920s. While it is not helpful to draw comparisons across these countries or their respective banking systems, it is worth taking note of the value crypto offers in terms of being an alternative to unstable national currencies.

Well-known investors such as Paul Tudor Jones are buying bitcoin, saying that his fund may hold as much as a low single-digit percentage of assets in bitcoin futures a measure to protect against a rise in inflation. While Mike Novogratz stated that 2020 will and needs to be Bitcoins year, underlining further investor confidence in digital currencies. Data reinforces this view, by looking at results from the crypto asset manager Grayscale. In Q1, inflows north of $500 million, more than doubling its previous best quarter. Almost a third of this capital came from new investors and most being institutions. Almost every indication that inflationary fears shall add to the tailwinds already powering fresh investment in cryptocurrency, among them institutional involvement and improving regulation.

Bitcoin is inherently structured to encourage a deflationary approach and a relatively stable store of value acting as a true alternative to hedge against inflation, as well as the policies that precede it.

While digital assets emerged out of the embers of the 2008 financial crisis, we can only speculate what technological innovations will rise post-pandemic. Hopefully, the global economy will allow cryptocurrencies to solidify their place in future investment portfolios as it currently demonstrates strong performance and price sustainability.

We are beginning to see the early signs are already there, that investors are turning to cryptocurrencies both as a key tool for diversification and a hedge against uncertainties to come. Ultimately, we are just at the tip of the iceberg when it comes to truly understanding the vast opportunities that digital assets and blockchain for transforming the global economy and we are ready for this challenge.

Stephen Stonberg, COO and CFO, Bittrex Global

Original post:
Cryptocurrency as an alternative during times of inflation - ITProPortal

Here is what you need to know on Tuesday, July 7, 2020

BTC/USD is under consolidation after a move towards $9,400 on July 6. Bulls are trying to defend the daily 26-EMA at $9,265.

ETH/USD is doing the same but remains far stronger with both daily EMAs crossing bullishly. The daily MACD has also crossed positively and buyers are still eying up $250 next.

XRP/USD has dropped the most today after having a slightly better move on July 6. The resistance level at $0.19 is still the most crucial for now.

Seele-N is one of the biggest gainers ever with a 46% price surge in less than 24 hours, climbing to rank 142nd. Next is Flexacoin which is up 17% and almost 50% in the past seven days. Cardano takes spot three with a 15% price increase following its recent bull rally.

Crypto exchanges have seen a significant decrease in trading volume in the past month. According to the most recent statistics, spot exchanges have seen a decline of 36% in June just like crypto derivatives, going to a 2020-low of $393 billion. Overall trading volumes have been going down mostly because the market has been flat for the past two months.

After announcing the partnership with Swipe, Binance has actually just acquired the platform for an undisclosed sum of money. The price of Swipe (SXP) exploded once more but hasnt been able to breach the last high after the initial announcement.

Changpeng Zhao, CEO of Binance commented:

To achieve our mission of making crypto more accessible to the masses, off-ramps are a key component as well. By giving users the ability to convert and spend crypto directly, and have merchants still seamlessly accept fiat, this will make the crypto experience much better for everyone

Torus has recently announced a new service that allows users to interact with Blockchains through Twitter, AppleID, GitHub, Line, and Linkedin. According to the announcement, users can basically send tokens to any Twitter user even if they dont have a Torus wallet.

Much of the crypto community resides on Twitter, and we are excited to provide the functionality of using those accounts for various use cases. These include simple sends, but also potentially more complex cases such as sybil resistance/quadratic funding.

You cant stop things like Bitcoin. It will be everywhere and the world will have to readjust. World governments will have to readjust. - John McAfee

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Cryptocurrency Market News: Twitter users can send Bitcoin and crypto to each other thanks to a new service - FXStreet