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8:00 AM MORNING IN THE MORNING
Hello and welcome to our continued coverage of everything related to cryptocurrency, including price, regulation, innovation and financial crime.
Bitcoin is priced at $ 7,686 this morning. According to a new report by the Committee on Economic and Monetary Affairs of the European Parliament, which is the decision-making branch of the European Central Bank, the adoption of Bitcoin could be stopped by central banks around the world. (ECB).
The report – Competition Problems in the Field of Financial Technology (FinTech), written by the Police Department for Economic, Scientific and Quality of Life Policies, concluded that if banks and banks Central to their own crypto-currencies, tokens like BTC and ETH would be strangled by state-backed currencies and "predatory pricing plans".
The report says: "The arrival of authorized crypto-currencies promoted by banks, even by central banks, will reshape the current level of competition in the cryptocurrency market, expanding the number of competitors."
"However, the market power of banks in traditional banking could be used to limit competition in the cryptocurrency market through preventative acquisitions or predatory pricing plans."
In short, guarantee the success of their coins It is feared that an alignment of central and commercial banks will dry up the bitcoin of competition in the market and will block even access to trade if traditional tokens do not not meet the same regulatory standards as the new ones.
"Competition between crypto-currencies", adds the report, which represents 88% of the total market capitalization of cryptocurrency in March 2017 and "a relevant indicator of the current concentration of the market".
He says: "Inter-cryptocurrency market competition problems are quite sophisticated, given the complex activities that are part of the value chain.One of the most important is the presence of network effects" This prevents a currency from being replaced by a competing currency and causes "a substantial barrier to entry and, at the same time, gives the holders a great deal of commercial power". 19659003] The report also mentioned a lack of competition in the mining industry.
He stated: "Many actors operate from global sites not under the jurisdiction of European competition authorities, which makes investigation or prosecution of anti-competitive behavior more difficult."
Although Europe is number one in the provision of wallet and exchange services, its main weakness comes from its dependence on mining activity in non-European countries.
Do you have anything to add? Send your reactions / thoughts / analyzes / price forecasts to @DavidGDawkins .
Updates below during the day ….
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