Seeds of Wisdom RV and Economic Updates Friday Afternoon 9-20-24
Good Afternoon Dinar Recaps,
BRICS POWER SURGE SPARKS ECONOMIC WARNING FROM JPMORGAN CEO—CRYPTO SEEN AS A HEDGE
▪️Jamie Dimon warned about the rising government deficits, elevated public spending, and geopolitical challenges like the growing influence of the BRICS bloc.
▪️The JPMorgan CEO expressed concerns over the U.S. economy, highlighting the risks of stagflation—persistent high inflation alongside stagnant growth.
JPMorgan Chase & Co. CEO Jamie Dimon recently raised alarms about a potential economic crisis in the United States.
He emphasizes the impact of rising inflation and geopolitical challenges as the BRICS bloc gains power. Speaking at the Council of Institutional Investors in New York this week, Dimon expressed concerns over the country’s economic outlook.
Dimon also hinted that the challenges could go far beyond a typical recession. On Wednesday, September 18, the Federal Reserve made its first interest rate cut in four years as inflation is inching closer to the Fed’s 2% target. Despite this reduction, Dimon cautioned that the economy remains on shaky ground.
Fed Rate Cuts Won’t Solve The Inherent Problems In US Economy
The decision to lower rates comes after interest rates had previously surged to a 23-year high, a measure taken by the central bank to curb inflation. However, many experts, including Dimon, worry that the country’s economy might not yet be in the clear.
One of Dimon’s primary concerns is the possibility of stagflation, wherein there is stagnant economic growth alongside high inflation. During the event in Brooklyn, Dimon said, “I would say the worst outcome is stagflation—recession, higher inflation. And by the way, I wouldn’t take it off the table.”
His remarks underscore the unease surrounding the U.S. economy, with inflation still out of control despite recent monetary policy changes. Dimon further highlighted that inflationary pressures could persist due to several key factors. On the other hand, the BRICS bloc poses different challenges while moving away from the USD.
These include rising government deficits and increased public spending, which could keep inflation elevated. Moreover, the high interest rates that persisted for years make it difficult to predict a swift recovery for the economy.
“They’re all inflationary, basically in the short run, the next couple of years,” Dimon said. He further added, “It’s hard to look at [it]and say, ‘Well, no, we’re out of the woods.’ I don’t think so.”
Recently, the world’s largest asset manager BlackRock stated that the spot Bitcoin ETF could be a good diversification tool amid the rising US debt, per the CNF report.
The BRICS Factor In-Play
Dimon’s warnings come at a time when the United States is facing growing competition on the global stage. The BRICS (Brazil, Russia, India, China, and South Africa) bloc has been pushing efforts to reduce reliance on the U.S. dollar, commonly referred to as “de-dollarization,” as reported by Crypto News Flash.
This shift could weaken the dollar’s dominance in global markets. Moreover, it could further strain the U.S. economy as the debt has risen to a whopping $35.27 trillion. In addition, the rise of blockchain-based financial solutions could pose an additional threat to the USD’s long-standing supremacy.
@ Newshounds News™
Source: Crypto News Flash
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TURKISH BANKS WANT TO STOP TRANSACTIONS WITH RUSSIA, TRANSFER THEM TO ONE BANK — SOURCE
The issue reportedly concerns private and state-owned Turkish banks that do not have foreign partners, mainly Western ones
ANKARA, September 19. /TASS/. Almost all Turkish banks are virtually trying to stop servicing transactions related to Russia and transfer them to only one local financial institution, an informed source in the field of Turkish financial consulting told TASS.
"Based on the current situation, almost all Turkish banks virtually want to completely withdraw from transactions with Russia and Belarus. They would like to leave all these transactions to Emlak Katilim Bank in order to protect themselves from possible future problems in the form of restrictions and sanctions," the source said.
The issue concerns private and state-owned Turkish banks that do not have foreign partners, mainly Western ones. Financial institutions with Western participation have already effectively stopped servicing transactions related to Russia.
The source noted that "only Emlak Katilim Bank carries out trading transactions in the Russian ruble/Turkish lira pair".
Earlier, Russian Ambassador to Turkey Alexey Erkhov, commenting on the situation in the interbank sphere, told TASS that Turkish banks are increasingly "squeezing out companies" involved in the transit of goods to Russia, blocking their transfers and closing their accounts.
@ Newshounds News™
Source: TASS
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GOVERNMENT BITCOIN RANKINGS: SURPRISING PLAYERS EMERGE IN 2024
▪️The US leads global Bitcoin holdings with $12.16B, primarily from law enforcement seizures.
▪️Bhutan leverages BTC mining for income, holding $782.46M in cryptocurrency reserves.
Arkham Intelligence has published its newest government Bitcoin holdings leaderboard, which provides an intriguing view of global cryptocurrency strategy among nation-states. The United States leads the pack, with a stunning $12.16 billion in BTC.
This vast hoard, totaling around 203,239 BTC, is mostly the result of law enforcement seizures, most notably the Silk Road case. The US government’s approach to managing these assets is not static; regular transactions suggest active management with the goal of leveraging the portfolio.
This position, along with other digital assets such as Ethereum, demonstrates a diverse approach to optimizing returns from their cryptocurrency portfolio.
Also, the United Kingdom is second, with $3.67 billion worth of Bitcoin, or around 61,245 BTC. Unlike the United States, the UK government has taken a more passive approach to management. There have been no large cryptocurrency transactions in the recent few years, with the last substantial shift coming three years back.
This shows that the UK is more interested in holding its Bitcoin as a long-term investment than trading or diversifying into other digital assets.
Bhutan and El Salvador: Contrasting BTC Strategies with Global Impact
Bhutan’s ranking on the leaderboard is surprising and impressive. As we previously reported, with $782.46 million in Bitcoin, or 13,047 BTC, the little Himalayan country is the third-largest government BTC holder. Bhutan’s plan is unique in that it is actively involved in Bitcoin mining operations.
The cash earned by mining pools such as “Foundry USA Pool” and “Ant Pool” benefits the country’s economy, making cryptocurrencies an important component of Bhutan’s financial ecosystem.
Bhutan also holds smaller amounts of Ethereum, valued at roughly $1.51 million, as well as other altcoins, demonstrating a more diverse portfolio than El Salvador, which focuses only on Bitcoin.
Further, El Salvador, which is well-known for using Bitcoin as legal tender, is ranked fourth on the ranking. Its government has $351.75 million in Bitcoin, which equates to 5,877 BTC. Unlike other countries, El Salvador’s plan relies entirely around Bitcoin, which is consistent with the country’s overall economic policies.
The Salvadoran government carefully controls its Bitcoin holdings and conducts daily trades. Over the last year, its portfolio has fluctuated, but it has recently steadied at around $350 million. Despite the inherent dangers and volatility associated with Bitcoin, El Salvador remains completely committed to the cryptocurrency experiment.
One of the most notable adjustments in the rankings is Germany’s decline from possessing $3.56 billion in BTC to having none. This significant reduction in ownership indicates a total exodus from Bitcoin; however, the reasons for this shift remain unknown.
@ Newshounds News™
Source: Crypto News Flash
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KOREA PREPS TOKENIZED DEPOSIT, WCBDC PILOT WITH 100,000 USERS THIS YEAR
Today the Korea Times reported that 100,000 individuals will participate in large scale pilots of tokenized deposits later this year, citing sources.
However, it said the deposit tokens will be “akin to using vouchers”, consistent with previously announced plans. A year ago the Bank of Korea announced plans for a wholesale central bank digital currency (wCBDC) to support the interbank settlement of tokenized deposits from banks.
It subsequently said there would be trials involving up to 100,000 people starting in September or October this year.
In June, two government institutions announced funding for a voucher project being developed by the central bank where the deposit tokens can be used for welfare, culture, education and other services.
However, today’s report states the vouchers in the pilot will be used to buy goods at convenience stores.
Last year the Bank of Korea said the voucher trials, which sound similar to Singapores’s Purpose Bound Money concept, would have two parts. All banks will participate in one trial. Another test will allow banks more leeway in the programmability.
The central bank said the Korea Financial Telecommunications and Clearings Institute will be the smart contract management agency.
So far six major commercial banks are involved, but there’s no final decision on which institutions will take part. NH NongHyup Bank was mentioned as one of the participants.
“While the timeline seems slightly delayed compared to our initial expectations, we are working to launch the CBDC test involving 100,000 participants using deposit tokens by the end of the year, which would be a globally significant milestone,” a banking industry official told Korea Times.
Korea’s cross border CBDC work
Meanwhile, the Bank of Korea is also involved in Project Agorá, the BIS cross border payment initiative to tokenize correspondent banking that involves seven central banks and 41 institutions.
That initiative also involves six Korean banks, Hana Bank, Industrial Bank of Korea, KB Kookmin Bank, NongHyup Bank, Shinhan Bank and Woori Bank. Additionally, Korea is an observer of mBridge, the other BIS cross border payment initiative.
@ Newshounds News™
Source: Ledger Insights
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What is Money Explained Simply! Youtube
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Source: Seeds of Wisdom Team Currency Facts
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