PBOC Soften – Bitcoin Prices Recovered
PBOC Soften – Bitcoin Prices Recovered

PBOC Soften – Bitcoin Prices Recovered

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  • Pages: 2 (710 words)
  • Published: June 29, 2018
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People Bank of China Position

Mr. Zhou, Governor of the PBOC and speaking at a conference in Boao, Hainan, said “it is out of the question of banning Bitcoin as it is not started by central banks.”

His statement is significant. Stories about China banning Bitcoin have been floating around for the past month, but the People’s Bank had not made any public pronouncements. So having the bank’s leader actually address Bitcoin, and say something vaguely supportive, is enough to drive up the price of the beleaguered cryptocurrency.

However, it appears to be a very carefully crafted statement. The issue, as evidenced by yesterday’s news, has not been whether the PBOC would ban Bitcoin, but whether the PBOC, through unofficial rule-making, would prevent Chinese banks from handling bitcoin-denominated business. Even if Mr. Zhou meant what he said, the central bank could still order banks to distance themselves from bitcoin-related business.

Still, a more friendly stance from the PBOC, or any official-type agency, in whatever form it takes, is welcome news for cryptocurrencies in general.

Bitcoin Prices Slight Recovery

After having broken the $400 support on thursday, BTC prices have recovered and stabilized to evolve around $420 according to the Winkdex.

Chinese Media reported that the Governor of the Chinese Central Bank PBOC said the government is not going to ban Bitcoin.

Since friday prices have increased about 15% following the announcement.

BTC/USD on Huobi even overperformed most of the other exchanges at $430 (eq. RMB 2,700).

Bitcoin Vox Analysts did raised their recommendation to NEUTRAL on friday, considering the current trading prices to be at

...

tractive.

Indeed, even with this recovery, Bitcoin is down about 50 percent over the last three months and more than 60 percent since it reached $1,100 last year.

Bitcoin in Wall Street

Last week, New-York welcomed many major Bitcoin Events, with the Inside Bitcoin NY 2014 edition and the Crypto Currency Convention.

Furthermore, Wall Street benefits from the presence of the Bitcoin Center New-York City, which brings additional human factor into Bitcoin, just next door to the NYSE (on 40th Broad Street).

But Bitcoin took some more baby steps toward recognition on a skeptical Wall Street this week, when it showed up as payment option for attendees of the Security Traders Association of New York’s annual dinner and conference.

Getting a newfangled, little understood virtual currency on the agenda was no small feat for those who pushed for it. STANDY has been holding these dinners, which on all accounts are liberally accompanied by alcohol, for 78 years.

Much of its membership is comprised of guys like Aldo Parcesepe, who ran Bear Stearns’ Nasdaq trading operations for 25 years in a career that spanned four decades – a “legend,” according to Albert Fried & Co. floor broker Christopher Cornette, who’d engaged him in an impassioned argument about Bitcoin after the pair had listened to a panel discussion on the matter.

So, it’s perhaps not surprising that the Bitcoin payment option was met with “some hesitation, especially from the bulge bracket participants,” as STANDY board member Bill Karsh, who pushed for it, put it.

Part of the thinking behind the Bitcoin idea was “to bring in a younger group of participants,” said Karsh, who is chairman of

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bitcoin exchange operator Atlas ATS and has held senior management positions with various stock exchange operators over the years. “I’m on the back nine. I’d like to bring in the twenty-somethings and the thirty-somethings,” he said, gesturing to baby-faced 33-year bitcoin entrepreneur Brock Pierce, who’d just made his pitch for the digital currency in a panel discussion.

At the start of that panel, SecondMarket CEO Barry Silbert, whose firm has created the Bitcoin Investment Trust, asked for a show of hands for audience members to define themselves as either “Bitcoin believer” or “Bitcoin skeptic.” His count came up with 5% for the former, 95% for the latter — pretty much as he’d expected, he said.

But afterwards, Mr. Pierce said the questions he’d gotten nearly all came from guys who described themselves as skeptics. He counts that as progress. Just don’t ask Aldo Parcesepe to buy in. “I don’t understand who’s going to back that currency. I don’t see a store of value in it,” he said, shaking his head.

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