Russian invasion drops Singapore and Taiwan interest in Cryptocurrency.
As Russian President Vladimir Putin presented a forceful argument for invading Ukraine, bitcoin, ether, and most other major cryptocurrencies dropped.
Changes in the market
As a Russian invasion of Ukraine grew closer, the most significant cryptocurrencies plummeted on Monday. In a televised address to his audience, President Vladimir Putin of Russia declared that he would recognize two pro-Russia breakaway republics in Eastern Ukraine and outlined a case for invading Ukraine, claiming that the country’s pro-Western government constituted a threat to Russia.
Earlier in the day, a Kremlin spokesman said there were no “concrete plans” for a meeting between Putin and U.S. President Joe Biden, despite reports that 150,000 Russian troops were moving closer to the Ukraine border. Worried investors have been adopting more risk-averse tactics in recent weeks in expectation of rising oil prices, U.S. and European allies’ sanctions on Russia, and Russian retaliation, all of which will likely hurt a global economy already battered by inflation and supply chain disruptions.
After Putin’s address, the Biden administration slapped sanctions against the breakaway Ukraine republics. Brent crude oil’s per-barrel price soared beyond $97, and almost 4% increase.
Bitcoin was trading at over $37,500 at the time of writing, down over 3% in the preceding 24 hours. Ether has lost around 1.6 percent in the same time frame. Other significant cryptos were all in the negatives.
The FTSE 100, the DAX in Frankfurt, and the CAC 40 in Paris finished in the red, even though U.S. equities markets were closed for the national Presidents Day holiday. On Monday, most major Asian indices, including the Nikkei 225 in Japan, the Hang Seng in Hong Kong, and the Asia Dow, all lost territory.
Stablecoins are not available in every currency.
Because the digitization of fiat currency into tokens overwhelmingly benefits the greenback, stablecoins have been the most pleasing thing ever for the dollar’s reign.
However, since crypto is a haven for dollar skeptics, there must be a push to establish stablecoins with alternate denominations. There is a Euro-denominated version of Tether and stablecoin projects in Singapore’s currency and Indonesia’s Rupiah.
Singapore isn’t a fan of its currency’s internationalization either. Given its shortage of natural resources, Singapore seeks exchange rate stability and does not want international deals priced in its currency that have no ties to the country. Please denominate that in U.S. dollars.
However, these banks must first grow in size for stablecoins to be noticed by these banks. Much, much more significant. The TWDC has currently issued 7.8 million Taiwan dollars worth of tokens, or roughly $283,000; Singapore’s xSGD has a market cap of $185 million. Far from being a currency complement (as Bloomberg’s Mike McGlone thinks Tether is to the dollar), stablecoins are also far from being a threat to the economy, as the White House contends.