👉 IMF Says Crypto Deserves Policy, Not Blanket Ban

Monday, December 20th, 2021

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TL;DR

The Metaverse Will Be The Next Frontier For Gaming.
‘Global Policy Ought To Be Prioritized Over A Blanket Ban’, Says IMF Chief Economist
Bitcoin Breaks Below Ascending Wedge, But On-Chain Metrics Remain Strong
Altcoin Dominance Tests 60% Dominance For 4th Time in 8 Months
Cryptocurrency Taxation: Nuts, Bolts And Tax Law | December 22 | Virtual

MACRO NEWS

The Metaverse Will Be The Next Frontier For Gaming

Anyone who has recently paid attention to the world of DeFi would know that when it comes to providing an immersive digital consumer experience, the metaverse is indeed perhaps the next big thing. As such, not only are an increasing number of organizations actively searching for ways to capitalize on the craze surrounding it (which also includes Barbados planning to open up a digital embassy in the metaverse), but numerous gaming industries and P2E (Play To Earn) projects have also become more involved.

There is one problem however, which is that the metaverse as it currently stands is still a bit of a hazy, high-concept idea which has not yet been completely defined or characterized. Some have defined it as a collection of digital experiences, places, and materials that grew in popularity during the ongoing pandemic's 'contactless era' and its corresponding transition in mainstream society. Others, such as Facebook CEO Mark Zuckerberg, view it as a virtual world in which individuals may interact with one another. He had thus recently referred to Facebook as a ‘metaverse corporation', which presumably had a lot to do with its recent rebranding to 'Meta'.

Metaverse and gaming

Gaming has become an extremely popular way to pass the time over the last few decades. Fast forward to today, and you have some of the most realistic games that are built using innovative technologies such as Unreal Engine which provide amazing lifelike graphics and visual effects. Nevertheless, one common issue for gamers worldwide is that there wasn’t a mainstream way to earn money through gaming until fairly recently thanks to platforms such as YouTube and Twitch. Now though, gamers are targeting the metaverse.

One of the biggest reasons as to why so many gamers are becoming increasingly attracted toward the metaverse is the existence of P2E projects. It is now possible to play all sorts of games and earn passive income through them simultaneously. This is made possible by purchasing certain NFTs and using them as in-game characters through which completing various missions, quests and objectives will reward the users with the native token of that project, which can then be sold at any supported exchange for real money. Moreover, gamers often feel the need to be a part of different digital worlds where they have control, and what better way to accomplish just that than with the metaverse.

Limitless potential

The metaverse's potential is limitless. Every new experience, be it an event, an NFT, or gaining player support, may be duplicated in-game to boost consumer engagement. It doesn't have to be difficult either, as according to Barbara Messing, Roblox's Chief Marketing and People Experience Officer, this is not a static advertisement, as instead it is a terrific method for people to connect with their audience and convey a compelling narrative about their company, business or organization.

Furthermore, according to Matthew Ball, a venture investor and one of the primary futurists promoting the new concept, the metaverse requires new technologies, protocols, firms, breakthroughs, and discoveries in order to grow. He added that there shall hence be no clear indication of a 'Before’ and ‘After’ when it comes to the metaverse. Instead, it will quietly develop over time as diverse goods, services and skills integrate and melt together to help create the next iteration of digitalization.

Whatever the case may be, it is becoming abundantly clear that the metaverse has already become a highly discussed topic in 2021. If the gaming industry wants in on this, then reliable technology and a strong community are both essential aspects that must be provided, in addition to the aforementioned P2E concept.

‘Global Policy Ought To Be Prioritized Over A Blanket Ban’, Says IMF Chief Economist

The International Monetary Fund's Chief Economist, Gita Gopinath, recently stated that developing economies must avoid outlawing cryptocurrencies. Instead, she referred to global industrial regulation as a need that must take precedence. She has therefore recommended regulating the industry rather than introducing a complete ban, given the latter's practical problems associated with its real-life implementation.

Gita’s comments are in line with the growing sentiment that the cryptocurrency sector has grown so much that a ban may in fact no longer be feasible. As such, numerous regulators and governmental authorities are actively moving towards heightened regulation instead.

‘Regulations to be preferred over a ban’

Arguing for a worldwide strategy, Gita, who will shortly take over as the IMF's deputy managing director, warned that if several nations banned crypto in its entirety, they would lose control over various offshore exchanges which are not subject to the rules of their respective country. This, she added, would then perhaps lead to them being disregarded completely.

Furthermore, Gita explained that there are obstacles to fully banning crypto due to the fact that many exchanges are based overseas, which would make it difficult to implement a ban on a global scale. This once again has to do with the fact that not every nation would be subject to following the same rules of another country or regulatory authority.

The Chief Economist's statements come at a time when governments around the world are debating how to regulate cryptocurrencies. The People's Bank of China for example formally announced a number of new efforts to prevent cryptocurrency adoption within their country back in September, including increased inter-departmental collaboration in suppressing cryptocurrency-oriented activities. More recently, the Russian central bank had officially outlawed mutual funds from being able to invest in Bitcoin (BTC) earlier in December.

Crypto keeps growing

As aforementioned, the cryptocurrency industry continues to grow at an exponential rate. New tokens, protocols and projects are emerging seemingly every other day, and the current market capitalization of Bitcoin is $892,158,622,767.

With such unprecedented growth, many regulators are becoming increasingly worried that if left unchecked, the rapid expansion could have unforeseen consequences. However, many entities believe that this is only the beginning for cryptocurrency’s dominance, as companies like Grayscale keep purchasing more BTC.

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TECHNICAL ANALYSIS

Bitcoin Breaks Below Ascending Wedge, However On-Chain Metrics Remain Strong

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Altcoin Dominance Tests 60% Dominance For 4th Time in 8 Months

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EVENTS

Cryptocurrency Taxation: Nuts, Bolts And Tax Law | December 22, 2021 | Virtual

Blockchain technology and cryptocurrencies, such as bitcoin and ether, are two trending topics in the fin-tech world. Yet, few business professionals can grasp the intricacies, opportunities, and challenges posed by this new technology. This session intends to give you a high-level, non-technological understanding of cryptocurrencies’ history and the taxation of everyday cryptocurrency-related transactions. This session also covers current developments surrounding this topic.

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👉 IMF Says Crypto Deserves Policy, Not Blanket Ban

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