Seeds of Wisdom RV and Economics Updates Wednesday Afternoon 7-17-24
Good Afternoon Dinar Recaps,
OPEC Plus alliance agreement enhances the balance of the global oil market in the second half of 2024
Russia announced that the global oil market will be balanced in the second half of the year and beyond thanks to the OPEC Plus alliance agreement on production.
Russian Deputy Prime Minister Alexander Novak said that the OPEC Plus alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, has been implementing a series of production cuts since late 2022 to support the market.
The Alliance agreed on June 2 to extend the previous cut of 2.2 million barrels per day until the end of September and gradually remove it starting in October.
The US Energy Information Administration said last week that global oil demand will exceed production by about 750,000 barrels per day in the second half of 2024 due to the decline in OPEC Plus production.
The OPEC report last week also indicated a deficit in oil supplies in the coming months and in 2025.
Novak explained that the global oil market will be balanced thanks to Russia’s moves.
Source: National Iraqi News Agency
@ Newshounds News™
Read more: Iraq News Gazette
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TOKENIZED GOLD- WHAT IS IT?
" Tokenization of gold is one of the recent blockchain use cases quickly gaining popularity among crypto enthusiasts, investors, and businesses. The present-day market cap of tokenized gold has already reached 1.17 billion, which is a firm upward trend reflecting the rising prices of physical gold. "
" But is investing in a gold-backed cryptocurrency as safe as physical gold? What are the benefits of tokenized gold, and what risks are involved?"
"Investment in ETFs is a safer option in terms of pure gold investment. Yet, ETFs are not stocks, bonds, or other securities that you may hold in your bank account and exchange for physical gold. Like any other ETFs, gold-backed ones are only derivatives of the stock exchange instrument that an owner doesn’t actually own. That’s why such investments are also a risky strategy with limited investor control. "
"When it comes to investment in tokenized gold, things are much more transparent and simpler for investors here. The scheme works as follows: "
1. The project acquires a certain amount of physical gold and stores it securely in its deposits.
2. The company issues tokenized gold coins, the cumulative number and value of which equal the amount of gold in its vaults.
3. The coins get into circulation and are used by traders, project users, buyers, and sellers. Their price is stably pegged to the price of gold, and in some cases, the coins may be exchanged for the respective amount of physical gold at any moment the owner claims such a possibility.
"This way, you may perceive digital gold as gold ownership tokens – securities that verify your right to a specific amount of physical gold."
THE ROLE OF BLOCKCHAIN IN GOLD INVESTMENT
"All of the risks and challenges with digital gold security, liquidity, and fungibility have given rise and popularity to the tokenized gold market. Digital gold is equivalent to physical gold stored in a safe location by the coin’s issuer, which frees you from the need to take care of the gold storage solutions."
"At the same time, every coin you own comes with the ownership right for physical gold, giving you direct ownership rights, unlike those of gold ETF investments. These are the reasons why tokenization of precious metals has become so popular in the crypto space. "
"All in all, gold investments open many exciting opportunities for you.."
1. First, you can address inflation by investing in this conservative instrument with fewer risks and limitations.
2. Second, you can take advantage of the rising gold prices similar to traditional gold investments.
3. Third, getting some digital gold to your portfolio is always a great diversification measure that can protect your assets from rapid price turns in the crypto market.
@ Newshounds News™
Read more: 4 IRE Labs
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Study: Digital Wallets to Overtake Debit Cards for In-Store Payments by 2027
Digital wallets have revolutionized the payment space in recent years. They provide an easy, contactless and secure way to make purchases and transfer money through the convenience of smartphones.
The method is the fastest-growing payment option in the United States, which is especially true among younger consumers. Most Americans say they use digital wallets more often than traditional payment methods. Even more intriguingly, consumers who use this payment method tend to spend more than nonusers. According to a new Worldpay report, the payment method will overtake debit cards in transaction value in North America for in-store payments by 2027.
Digital wallets’ popularity and payment values make them a priority tool for businesses to incorporate into their payment suites. However, merchants have some catching up to do to keep pace with this unstoppable trend. Some notable stumbling blocks — including perceptions about security, complexity and legacy technology — are still holding many back.
The “Money Mobility Tracker®” examines the meteoric rise of digital wallets. It also looks at how payment providers can help small merchants overcome concerns about security, complexity and technology to offer this payment method to their customers.
—Convenience Translates to Higher Use — and Spending
—Broadening Merchant Adoption of Digital Wallets
—Consumers Crave Additional Uses and Features in Digital Wallets
@ Newshounds News™
Read more: PYMNTS
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HOW DO YOU INVEST IN TOKENIZED GOLD AND SILVER?
"In recent years, the concept of tokenizing real-world assets (RWAs) has gained significant traction in the world of finance and investment. RWAs refer to the process of representing physical or financial assets on a blockchain through the use of tokens. This innovative approach has opened up new opportunities for investors, particularly in the realm of precious metals."
REMEMBER THIS TERM- (RWA) Real World Assets)
"By incorporating tokenized precious metals into a well-balanced investment portfolio, investors can potentially mitigate risk and protect their wealth from the erosive effects of inflation."
The Process of Investing in Tokenized Precious Metals
"Investing in tokenized precious metals is a straightforward process, but it requires careful consideration and due diligence."
1. The first step in investing in tokenized precious metals is selecting a reputable platform or issuer. It is crucial to choose a provider with a proven track record, strong security measures, and transparent operations.
2. Understanding the custody and storage of the underlying physical assets is another critical factor when investing in tokenized precious metals. Reputable issuers should provide clear information about the location and security of the vaults where the physical precious metals are stored.
3. Once you have selected a reputable platform and evaluated the regulatory compliance, the next step is purchasing and storing the tokenized precious metals. Investors can typically buy tokenized precious metals directly from the issuer or on secondary markets, such as cryptocurrency exchanges.
4. Finally, some tokenized precious metals platforms offer the option to redeem the tokens for physical precious metals. This feature provides investors with the flexibility to convert their digital holdings into tangible assets if desired.
"One of the primary risks associated with tokenized precious metals is regulatory uncertainty and the evolving legal landscape. As highlighted in The Legal Roadmap: Tokenizing Commodities within Regulatory Frameworks, the regulatory environment for tokenized assets varies across jurisdictions, and there is a lack of clear global consensus."
@ Newshounds News™
Read more: Block Apps
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Why is XRP price up today?
XRP has outperformed the broader crypto market, boosted by its underbought RSI and whale interest.
Crypto market rebound boosts XRP higher
On July 17, XRP price jumped by nearly 7% to $0.618, its highest in three months, despite the sell-off fears led by the ongoing Mt. Gox reimbursement. The XRP/USD pair has climbed by around 62.20% when measured from its local low of $0.381 established on July 5.
Interestingly, the crypto market capitalization has vastly underperformed XRP’s rebound, rising by about 24.50% in the same period. In fact, XRP/USD is still down 1.71% year-to-date compared to the crypto market’s 40% returns.
This puts XRP holders in a good position to benefit from such a catch-up rally, particularly with growing interest rate cut chances in September.
"We might be on the verge of witnessing one of the most significant breakouts in crypto history," stated pseudonymous crypto trader Crypto Michael on X. He highlighted a bullish pennant pattern forming on XRP’s price chart over seven years, a rare occurrence where the price consolidates within a triangle pattern following a strong upward movement.
@ Newshounds News™
Read more: Coin Telegraph
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Hong Kong to Prepare Stablecoin Legislation as Public Consultation Ends
Hong Kong authorities plan to introduce a bill into the Legislative Council before year-end.
—Hong Kong's regulators published the conclusions from their consultation on a stablecoin regime.
—The next step is to prepare a bill for the Legislative Council.
Hong Kong's financial regulators said they plan to present a bill on fiat-referenced stablecoins to the Legislative Council later this year.
The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) published the results of a consultation, and concluded that the stablecoin regime would "primarily focus on representations of value which rest on ledgers that are operated in a decentralised manner" in which "no person has the unilateral authority to control or materially alter its functionality or operation."
The consultation paper for stablecoin guidelines published at the end of last year received 108 submissions from stakeholders. The regulators plan to take suggestions from respondents before finalizing the bill for the legislative process.
The regulators confirmed their initial proposal that any person who issues a stablecoin in Hong Kong must obtain a license. While they say keeping reserve assets with banks licensed in Hong Kong could provide greater user protection, they are open to considering proposals on placing reserve assets in other jurisdictions.
Foreign entities intending to apply for a license will be required to establish a Hong Kong subsidiary and have key management personnel, including a CEO, in the territory.
After considering the responses, the HKMA said it is "inclined to reduce the frequency of public disclosure." It had proposed monthly attestation by an independent auditor, and will continue discussions on the matter.
Hong Kong is trying to keep pace with other major jurisdictions in becoming a leading crypto hub. Europe's MiCA stablecoin regime came into force this month and members of Congress in the U.S. are actively attempting to push forward stablecoin bills.
In March, the HKMA started a regulatory sandbox to give potential stablecoin issuers immunity in testing certain operations. In today's announcement, the HKMA said it is processing the applications for the stablecoin issuer sandbox and will announce more shortly.
@ Newshounds News™
Read more: Coindesk, HKMA, Coindesk Policy
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