The crypto asset analyst of the multi-asset investment platform eToro, Simon Peters, has commented on some aspects regarding the situation of the crypto asset market.addressing the debate on how China affects the development of the world economy, the impact of Elon Musk’s plans on the Dogecoin cryptocurrency, the increase in cryptoactive fraud in the United Kingdom and the experimental version of the digital yen that the BoJ will launch in 2023.
Regarding what he shared with Cointelegraph en Español, Peters, mentioned in the first place, about the price of bitcoin and its development during the past week. He highlighted that the BTC, despite having experienced a rise in its valuation last week, the digital asset, suffered a fall above USD 16,000. Going from trading its price below USD 15,500 to being above USD 16,500.
According to the analyst, this drop in the price of cryptocurrency is due to the events that China is currently experiencing due to closures due to a rebound in Covid19, where concern about this situation has increased protests. Which, in his opinion, will probably result in not only other economic markets being affected, but also the crypto asset market, since China has a great weight in the global economy.
On the other hand, The price of Ether also had a volatile experience over the past week, the digital asset rose from lows below USD 1.07 to trade above USD 1,200 at the close of last week. However, like bitcoin, it has “suffered a liquidation” that places it around USD 1,150.
Dogecoin rises on Musk’s side
After Elon Musk published the internal changes in the social media company Twitter, of which he owns, the price of the Dogecoin digital currency, suffered a rise in its price.
According to Simon Peters, the plans of the CEO of Twitter Inc. to turn the social platform into the “app for everything” They have provoked investors in this cryptocurrency, who, in turn, have served as a point of reflection in different opportunities for Musk for Twitter.
For its part, the price of the cryptocurrency, Dogecoin, after the owner of the social network published his presentation, suffered an increase, going from being quoted from less than USD 0.09 to more than USD1,105 in a few hours.
From Peters’ perspective, “Musk is one of the few people in the world with the power to move markets with his words, but the likelihood that he will send Dogecoin skyrocketing again is pretty slim right now,” he said.
Fraud with crypto assets increased by 32%
Fraud with digital assets in the United Kingdom is another of the aspects addressed by Peters in his weekly analysis. According to the data offered by the national center for fraud and cybercrime reports in the United Kingdom, Action Fraud, they show that fraud with crypto assets has reflected an increase of 32% in 2022.
Although these are worrying numbers, Peters believes there are some “clear actions” in the ecosystem that can be taken to protect customers and non-customers from these scams.
UK Finance statistics reflect that in the first half of 2022 there were approximately £609.8 million in losses due to scams, therefore, Peters considers that “scams are not exclusive to the crypto world”, financial fraud in In general, the region is already a problem.
Thus, the analyst asks how he should act and what steps the client should take to avoid falling for this type of scam.
“What can we do to reduce crypto asset scams? First of all, users should take any offer with skepticism. Like any scam, something that offers returns that are too good to be true, or that guarantees returns, is probably not trustworthy. But there is another step, which is already underway, that can protect users: regulation”, explained the crypto asset analyst of the multi-asset investment platform eToro.
He also made reference to how the cryptocurrency ecosystem is developing in terms of the regulatory framework, in his opinion, the direction that this sector is taking in this regard is more constructive.
“A regulatory seal of approval for crypto asset companies will help reassure consumers that the services they use are legitimate,” he noted.
The Bank of Japan will launch the digital yen in 2023
To conclude, Peters refers to the issuance of the digital yen in 2023 by the Bank of Japan (BoJ).
The Japanese financial entity plans to issue an experimental version of the digital yen for next year. Likewise, it is said that the institution works together with three banks of great renown in the region to carry out the development of the digital currency of the central bank (CBDC), specifically oriented in the entry and exit mechanisms (issuance and withdrawal ).
For now, The experiment will last for two years.then the Bank of Japan will make the decision if the project can be extended after 2026.
In addition, to finish, he stressed that CBDCs have been gaining supporters in the international and supranational financial sectors, “Border payments being an increasingly relevant area for this technology.”
Entities such as the Bank for International Settlements (BIS) have undertaken the task of studying in detail how the central bank digital currency (CBDC) works between regions, from which several experiments have successfully resulted that have been carried out between countries such as China, Hong Kong, Thailand and the United Arab Emirates
“CBDCs are an interesting area of crypto assets, as they are almost the antithesis of why much of crypto was created. Managed and controlled by central bank authorities, CBDCs have been the subject of much opprobrium, with many projects failing simply because the public is not as enthusiastic about central bank digital money,” he concluded.
The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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