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A Series about Digital Investment Funds & Digital Currency exposure for South Africans

28 June 2019 Morne Olivier

#Block3

This was the message from Mark Carney, Governor of the Bank of England at the Mansion House Bankers and Merchants Dinner, London 20/06/2019 “New Finance for the New Economy”

First, to enable the digital economy.
The very nature of commerce is changing.
Last year, one fifth of all sales in the UK were online. Next year, it will be one quarter.
Over the past decade, the proportion of total payments made in cash has declined from two thirds to one quarter. The digital economy is more inclusive, offering easier and more cost effective routes to market for firms both large and small, and greater access for consumers both near and far.

This new economy is placing new demands on finance. Consumers and businesses increasingly expect transactions to be settled in real time, checkout to become an historical anomaly, and payments across borders to be indistinguishable from those across the street.”

The message from Mark Carney was clear

“These consortia, such as USC, propose to issue digital tokens that are fully backed by central bank money, allowing instant settlement. This could also plug into ‘tokenised assets’–conventional securities also represented on blockchain—and smart contracts. This can drive efficiency and resilience in operational processes and reduce counterparty risks in the system, unlocking billions of pounds in capital and liquidity that can be put to more productive uses.”

As the Market leader Bitcoin used the accumulation period from 4 –14 June at $7500?—?$8000 and turned it into a support level, using it to go test the $10 700 range. A strong indication of the Digital Currencies positive trend forward.

The much-needed market of Stablecoins is developing at a rapid pace. The main benefits that Stablecoins strive to create are price stability, scalability, privacy, decentralization, and redeem ability.

Binance, one of Cryptocurrencies largest exchanges by volume announced two weeks ago week it will be introducing its own Stablecoins to pair with a spectrum of world currencies.
Here is a full layout on the makeup of Stablecoins: Stablecoin Report

Certainly here in South Africa we saw the birth of ZAR Stablecoin and with Q3 launch around the corner will provide much-needed stability in the South African Digital Currency Market and this is exactly what Mr. Carney was taking leadership of. A new Finance model for a new Digital Economy.

The importance of a South African stronghold in this Digital Transformation era is invaluable to help us enter our economy into a new world economy. The likes of IBM, Apple, Microsoft, (Building their Blockchains) and Blockchains like Bitcoin, Ethereum, EOS.IO, Stellar Lumens, VeChain will force us into this new era and bring along with it Digital Currency with value. By curbing volatility we take away the elements of instability and uncertainty. Stablecoins are at the forefront of this safety net. The *Digital Rand or ZAR a prime example making it easy for E-commerce transactions or payments solutions across borders.

Why look at the ZAR Token? Stability and economic empowerment.

Two big reasons underlying our economy and two good reasons to start your research on how to enter the new Digital Economy.

• There is almost zero return on Risk-adjustments in comparison to emerging markets, we simply can’t afford the risk!
• *Regulation 28.

When I get paid in Ethereum I don’t want to cash out my ETH to fiat Rand, now I have a choice to keep it or swap it for other Digital Currencies for their value prospects or place it into Digital Rand pegged 1:1 with the Rand and if I’m not sure I simply purchase with it. That can all be done straight from my Digital Wallet on my phone and would, therefore, serve as the improvement from our current banking APP’ S.

Here is a great tool for advisors to use when advising on Bitcoin. It works out how your monthly investment over a period of time will accumulate and your returns. I think it will surprise you!

The Dollar Cost Averaging into Bitcoin (DCABTC)

DCABTC

Blockchain Investment
What to look at when you investigate Blockchains? Bitcoin is happening now, it is in a four-year timeframe with a Halving structure built into it due in 339 days. Litecoin has a similar makeup with its halving due on 5 August 2019.

BTC / LTC Halving You can read more on the “Halving of Bitcoin here”

If we look at the halving concept and history it gives us a good indication of timeframes to work out. Both these Blockchains has the potential for trading with a fair amount of certainty that they are now in their bull market trend on their Day Charts.

Lets take a quick look at a young Blockchain like Vechain. APPLE & MSFT had a starting period of 20–30 years before their prices started rising. VeChain (VET), a Blockchain solution unfolding with a large array of backing and partnerships was founded in June 2015. To me, the big differences lie with the Technology on the Blockchains and the need for that Technology to integrate into current business networks and the sign up of Leading Business brands for their Payment and Supply Chain needs. These relatively young Blockchains should halve the 20–30 year period as emerging Technologies today are far more superior than when Apple and Microsoft started out.

Partnerships include PWC and DNV-GL

To think the pathway of these Blockchains solutions will do more, but even in a shorter timeframe than APPL & MSFT. Blockchains are inherently needed to scope businesses. Hence the adoption phase turns into a necessity phase and the price is driven by demand.

This is exciting times with the financial world as it changes and starts adopting the Digital Future.


 

Find me on LinkedIn I share a lot of information there!

Morne Olivier

#morneolivier

#Block2: Investment Portals for Cryptocurrency in South Africa | The Rand and Digitalization

Freelance Content Marketing specializing in the Education of Blockchain Technology.

I am not a Financial Advisor

Disclaimer

Refrence:

https://www.bankofengland.co.uk/news/speeches



 

Glossary:

Blockchain

A Blockchain originally block chain, is a growing list of records, called blocks, which are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. By design, a blockchain is resistant to modification of the data.

Stable Coin

Stable Coins are Cryptocurrencies designed to minimize the volatility of the price of the stable coin, relative to some “stable” asset or basket of assets. A stable coin can be pegged to currency, or to exchange-traded commodities. Wikipedia

 

 

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