Central bank digital currencies on the way

Mike “Mish” Shedlock's Sitka Pacific Capital Management,Llc

Six countries have digital currency pilot programs in place. Canada is in development mode while the US lags.

The Central Bank Digital Currency Tracker shows the evolution towards central bank sponsored digital currencies.

Nearly 80% of central banks are engaged in work related to national digital currencies, according to a 2020 Bank of International Settlements survey.

Last month, China announced a pilot project of its digital Yuan in four cities. This month, the US is considering implementing a digital dollar.

Country specifics

Digital currencies are coming

There are advantages to digital currencies especially in terms of payments.

But the push for digital currencies is also nefarious. Once cash is banned, governments can and will track every penny of every person 100% of the time.

And I do expect a ban on cash, starting with Sweden.

Once in place, digital currencies open up new avenues of control especially in regards to negative interest rates and wealth taxes.

Author

Mike “Mish” Shedlock's

Sitka Pacific Capital Management,Llc

Mike “Mish” Shedlock is a registered investment advisor for SitkaPacific Capital Management.

GBP/USD stabilizes near 1.3200 following latest rebound

GBP/USD holds steady at around 1.3200 in the European session on Friday after closing in positive territory on Thursday. Still, the cautious market mood makes it difficult for the pair to gather bullish momentum as investors remain focused on US-Iran conflict and the volaility surrounding global technology shares.

EUR/USD rebounds to 1.1400 as USD corrects lower

EUR/USD gains traction in the European session on Friday and rises to the 1.1400 area. The US Dollar (USD) struggles to find demand and helps the pair edge higher as investors keep a close eye on headlines coming out of the Middle East and the action in global technology stocks.

Gold holds above $4,000 but Fed hike bets cap the upside

Gold moves sideways in a tight channel above $4,000 after posting modest gains on Thursday. Nevertheless, the precious metal finds it difficult to gather bullish momentum as markets grow increasingly concerned about a hawkish Federal Reserve policy outlook.

Ripple price clings to $1 as long liquidations deepen bearish trend

Ripple (XRP) trades near the key psychological support level of $1 after losing more than 8% so far this week. CoinGlass liquidation data shows that over 97% XRP long positions were wiped out over the past 24 hours. In addition, derivatives metrics continue to favor the bears.

Asian stock markets plummet as Apple price hike raises inflation concerns, KOSPI dives over 8%

Asian equity markets on Friday are significantly down as price hikes announced by Apple Inc. due to memory chip shortages have prompted fears of high inflation globally and concerns on earning projections of various companies that rely on these sophisticated chips for their final products.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.