JP Morgan, one of the world's largest investment banks, has said it will replace real estate with cryptocurrencies, which are now its new preferred alternative investment asset class. This and more news in this handy daily summary so that you are always informed with the most recent events that occur within the crypto world.
Cryptocurrencies and stablecoins
📍Cryptocurrencies have become the preferred alternative investment assets for JP Morgan. Financial firm and investment bank JP Morgan, one of the oldest and largest financial institutions in the world, has said that cryptocurrencies and digital assets have become its new preferred alternative asset class.
According to the publication Forbes, in a report sent by mail to its investors JP Morgan reported that prefers digital assets, as alternative investment assets, over real estate. This is due to the potential for recovery and revaluation that they currently have in the market.
In the report, headed by analyst Nikolaos Panigirtzoglou, the American bank believes that the price of Bitcoin is trading 28% below its fair value, which it noted at around $40.000 per unit. The bank also indicated that the current macroeconomic situation, the Russia-Ukraine war, the Federal Reserve's monetary policies and the collapse of Terra's UST/LUNA crypto assets have hit cryptocurrencies hard in recent months. Therefore, the crypto market is one of those with the greatest potential for recovery in the future.
After surpassing a market capitalization of $3 trillion, the total value of the cryptocurrency market now stands at over $1,3 trillion, down 56% in 6 months. However, the bank indicated that it sees “an upside for the bitcoin and cryptocurrency markets in general.”
For JP Morgan, funding and allocating venture capital to cryptocurrency projects will be crucial to help the crypto market recover quickly and avoid a long crypto winter like the one seen in 2018-2019. This investment bank opened the door to cryptocurrencies, to offer its investors access to these digital assets, in the middle of last year.
Bitcoin and Blockchain Adoption
📍SWIFT will not exist in the new global financial order, says Mastercard CEO. Mastercard CEO Michael Miebach said at the World Economic Forum (WEF) annual summit that SWIFT, the international banking financial communications network, may not exist in the new global financial order.
According to Miebach, this banking communications system is not likely to become dominant in the future either, and he replied with a laugh that it might cease to exist within the next 5 years.
However, in response to his comments, which have sparked interest and controversy in several quarters, a Mastercard spokesman said that what Miebach really meant was that SWIFT, in its constant evolution, will transform itself in the coming years and may cease to exist in its current form.
Miebach's statements coincide with those made by Credit Suisse analyst Zoltan Pozsar in March. Pozsar Indian that the Russia-Ukraine war could accelerate the creation of a new global financial order where Bitcoin could be one of the most benefited assets.
Rules and Regulations
📍Paraguay's Congress is about to regulate cryptocurrency mining. The bill seeking to create a legal framework for Bitcoin mining in Paraguay, supported by hydroelectric energy, has been approved by the lower house of Congress, reported deputy Carlos Rejala from his Twitter account.
This bill was officially presented in July of last year and approved by the Senate last December. Rejala, who presented the bill and has been its main promoter, wants Paraguay to position itself as a leader in cryptocurrency mining in Latin America, taking advantage of its energy surplus to support this activity in a profitable and sustainable way.
📍In Brazil, one of the most promising economies for cryptocurrencies, a government agency says cryptocurrency traders must pay taxes. Brazil's Federal Revenue Service (RFB) said cryptocurrency traders are subject to a tax regime to pay income tax on capital gains obtained from the sale of cryptocurrencies, even if they are not converted into Brazilian real or other fiat currency.
The Federal Revenue Secretariat made these statements in response to a query made by a citizen of the country. In the published document, the government agency indicated that cryptocurrency traders are subject to paying income taxes if the capital gain obtained in a month from the sale of crypto assets exceeds 35.000 Brazilian reals.
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