Bitcoin Jumps Above $4100 Post ECB’s Claims of “No Power To Regulate Cryptocurrencies

This month has been quite a bumpy ride for Bitcoin and other cryptocurrencies overall. However, after suffering the woes of the major Chinese crackdown on local Bitcoin exchanges, it seems that the overall market sentiment is again turning positive after almost a week of consolidation.

The prices of Bitcoin are back above $4100 mark, which is its key support/resistance as per the technical charts, and it seems that are many news and factors that are catalysing this upmove. Former president of European Central Bank (ECB) , Mario Draghi, made some startling claims during his presentation at the Hearing of the Committee on Economic and Monetary Affairs.

While commenting on the recent bans and regulations on cryptocurrencies, Draghi said that regulate Bitcoins or even for the sake ban it. He said:

“It would actually not be in our powers to prohibit and regulate them. We have to ask what effects cryptocurrencies have on the economy.”

 However, he also said that cryptocurrencies are still far behind and have miles to go before being considered as a viable payment method.

Japan’s shift to Virtual Currency Adds More Stimulus

 Another factor that is attributed to the recent price stabilization of Bitcoins is that Japan is aiming to streamline its digital payment process and is creating its own digital currency, J-Coin, as an alternative to the cash option. The proceedings for J-Coin have been initiated under the consultation of Japan’s financial regulatory bodies and is planned to be introduced before the Olympics 2020 in Tokyo.

As-on-date, Japan has a 50.75 market share of the overall Bitcoin exchange. However, the underlying fact is that it is still functioning as 70 percent of cash economy which is much more in comparison to other developed nations who have made a considerable shift towards a digital economy.

It is said that J-coin will work in co-ordination with Yen instead of replacing it. The coin is expected to be available at one-to-one ration with the price of Yen. The major intent of such move is to track all the transactions which become difficult in cash economy.

More details pertaining to this are still not available as on which technology infrastructure the J-Coin would be based. Probably, we can get to see some efforts in this direction in times to come.

A similar news was coming from India where the central bank of India, RBI is planning to launch India’s own fiat cryptocurrency called Lakshmi Coin.

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