On March, 14th, EU to adopt the crypto legislation
This is the last date when the European Parliament will vote on the text prepared in the committee and has already undergone significant revision. Our readers probably remember how many discussions there were on the issue of Bitcoin, some even feared the possibility of its ban.
Then the possibility of a ban was removed due to a very negative reaction from enthusiasts and businesses, as a result of which a significantly shortened text remained regarding the bans, which, however, will need to be discussed in as much detail as possible.
In fact, it will be a framework agreement. In other words, if the bill is approved, it will be a text aimed at at least establishing the contours of the sector, without specific intervention. There will be no detailed rules regarding this or that way of doing business, no restrictions that will actually exceed those already in force (think about what exchanges should already do in order to remain compliant).
In fact, MiCA (the law on digital currencies) has been under discussion for almost two years, and the text has had a very long period of maturation in the committees. This is the text that the EU considers necessary in the field of digital finance. A long period of “gestation” has made this text what it is: a guiding rule, without strict restrictions, which will not have any impact on the market, at least in the short term.
No, there will be no ban on PoW
It would be good to repeat this, given that the amendment of the Greens and other parties could hint at the upcoming ban on PoW technologies, the very ones thanks to which Bitcoin and, at the moment, Ethereum work in the EU.
This position has been canceled, and it will not be discussed. Bitcoin is safe, just like the rest of the Pow-powered industry, and this is bullish news for the markets
You immediately naturally have a question: what will implement this law?
Not so much, and so much so that the markets that have known about this project for a long time have never thought to react to it with a sale, let alone a recession. The rules apply to those who issue non-cash tokens, that is, those securities of tokens that are also under the SEC’s sights, while the classical sector is minimally affected.
There are also rules regarding fair disclosure of newly issued tokens if they relate to structured companies that will have obligations similar to those currently affecting financial market participants.
A definition of supply will also be given for ESMA, the body that deals with financial markets in Europe. It also signals that the EU is ready to define the world of cryptocurrencies as an independent financial world.
There is also a restriction on marketing activities, which must be clearly identifiable, without misleading information and correspond to the information that will be contained in the White Paper. This strict regulation will not create problems for large groups (most of which have already fulfilled the requirements) and will leave many micro-projects in uncertainty, although they will continue to exist in parallel. On the other hand, according to Coinmarketrate.com to implement this in many protocols will simply be DeFi impossible, precisely because they are self-regulating.
This must not have escaped the attention of the EU, which with this bill seeks to normalize the situation of those who can easily get fined (the largest operators) rather than kill the sector. Those who prefer complete freedom will have to put on a brave face and “butt in” further, while others will consider the new regulatory framework an improvement on what they consider the jungle and the “Wild West”.
The fact remains that many expect that with greater clarity in regulation, even people who are usually far from this universe will eventually find it more concrete and more reliable. So yes, it will be bullish news for the markets. But what about the whole world?
Bitcoin in the New Financial Order
A new international monetary order will emerge from the current confusing market and geopolitical situation. This is not being said by some crazy person with sucked-out analyses, but by the Credit Suisse group, which is the second largest financial conglomerate in Switzerland after UBS, and which also takes the opportunity to talk about Bitcoin in connection with this situation.
And she does this with the help of a prophecy, which, yes, is certainly interesting, and, in our opinion, bullish for the Bitcoin forecast.
And so, what is it about. The point is, Bretton Woods III is coming, and Bitcoin will play a role if…
Stop, just make no mistake, we will be talking about CBDC as new money, not cryptocurrencies.
The opinion spread by Zoltan Pozsar, who is a first-tier investor in Credit Suisse Group, is certainly very eloquent. We are talking about the possibility of a new international monetary order, which, according to the aforementioned analyst, is now impossible to avoid. Not only because of the military special operation in Ukraine, but also because of what happened earlier in the era of the pandemic, when central banks dumped a huge amount of liquidity on the markets.
The transition to a new scheme is planned, when external money acts as collateral for internal money in the system, but this time based not on gold, but on a wider range of cryptocurrencies.
A crisis related to commodities is developing. Goods are collateral, and collateral is money, and this crisis is associated with the growing attractiveness of external money compared to internal.
If you want, add another element of anxiety to your gray hair: the commodity market has frighteningly higher leverage than during the last oil crisis. And this can cause a number of important chain effects that can accelerate the transition to a new monetary system.
What does this mean for Bitcoin?
In a document with a particularly apocalyptic tone, there was a place for Bitcoin, which, according to the analyst, will benefit from this new situation, if, of course, it continues to exist.
This is a laconic comment, which we interpret as “bullish”, since, after all, this is a very likely possibility: Bitcoin has once again proved over the last terrible week that it is an extremely resilient technology. And also the last hope of those who cannot access the traditional financial system, even in war conditions.
Regardless of whether a new world currency order is coming or not, many people believe that Bitcoin (and we believe this together with Credit Suisse) is in a favorable position. And even if it doesn’t make sense to talk about digital gold yet, it will still take its place in a new era that promises to be extremely difficult.