The Godfather of Coin Speculation 4.1: What is the brewing behind the digital renminbi?
News side:
News side:
1. According to the Shenzhen Special Zone News, on March 30, in order to implement the deployment of "steady promotion of digital currency research and development" proposed in the national "14th Five-Year Plan", the Shenzhen Municipal People's Government and the Shenzhen Central Branch of the People's Bank of China made careful plans and actively acted. Guide the People's Government of Luohu District, and cooperate with Bank of China Co., Ltd. and Bank of China Hong Kong Co., Ltd. to take the lead in successfully completing the test of digital renminbi for Hong Kong residents in the Mainland, which is a step forward for exploring a wider use scenario of digital renminbi important step.
2. According to CNBC, billionaire Galaxy Digital founder Mike Novogratz said that using any leverage on high-volatility varieties "seems crazy", and Archegos' move is like buying Bitcoin and amplifying it five to six times leverage. But Novogratz doesn't think the Archegos incident will have systemic consequences. Speaking of Bitcoin, Novogratz said that the Bitcoin system is now mature. Bitcoin is not a currency, but an asset, "it is gold", and Bitcoin is on an inevitable path that will have the same market size as gold. Bitcoin is expected to easily rise from 0.3% of global wealth to 1% in the next four months.
3. According to coindesk, Agustin Carstens, president of the Bank for International Settlements (BIS), denied the claim that the digital renminbi will replace the US dollar reserve status "only with digital characteristics". He said, "Most of these remarks are exaggerated, and any CBDC is May win the geopolitical reserve currency battle "by virtue of digital characteristics alone." Finally, he also said that central bank digital currencies may trigger a new wave of non-bank sector participation in the retail industry and shake up the industry.
4. The three major US stock indexes collectively opened higher, with the Dow up 0.04%, the Nasdaq up 0.59%, and the S&P 500 up 0.21%.
5. According to the Financial Associated Press, Lagarde, President of the European Central Bank, said that she hopes to complete the process of launching a digital currency in about four years. The ECB will soon publish an analysis of the 8,000 responses to the public consultation process and communicate it to the European Parliament. Based on this public consultation and the ECB's own work, the ECB's Governing Council will debate and decide in mid-2021 whether to advance a digital currency. If the Governing Council decides in favor, the process of deploying a digital currency could be completed in about four years .
At the beginning of March, after hitting a record high, Bitcoin had stagnated below $60,000 and fell to a new low many times, casting a big shadow on the development of the bull market. Many investors are afraid of the continuation of the downtrend and thus break the uptrend of the bull market. In the recent rise and fall, the discussion about the development stage of the bull market seems to be getting more and more lively. In particular, the market effect caused by the shadow of Bitcoin's decline this time, including the expansion of the negative impact of market trends and information and public opinion, has increased the possibility that the bull market may end.
Just in a market in February, Bitcoin was greatly adjusted, but now it is only a small scene. After all, after the fall, it rose back. It is very common for Bitcoin to rise and fall. But how many ordinary people can bear this kind of risk? What the godfather wants to say is that speculation and investment are two different things; just like none of us would have expected that when we welcome the year of the ox, we will also usher in encryption. Currency bullishness.
Let’s talk about the statement by the president of the Bank of International Settlements that the digital renminbi will replace the U.S. dollar. First of all, my country’s digital renminbi has begun to develop rapidly this year. According to incomplete statistics, up to now, the digital RMB has carried out 7 rounds of red envelope pilots in the four major cities of Shenzhen, Suzhou, Beijing and Chengdu. A total of nearly 150 million U.S. dollars in digital renminbi was issued, nearly 10 million people participated in the lottery, and more than 500,000 people received and used it. Although my country has become the leader in the central bank's digital currency track, my country's digital renminbi ambitions have not stopped there. A few days ago, the Digital Currency Research Institute of the People's Bank of China advocated the establishment of rules for the digital currencies of various countries, and set the unified compatibility parameters of national digital currencies at the top, so as to facilitate trade between national digital currencies in different jurisdictions. This proposal of the Central Bank’s Institute of Numerical Research has received responses from more than 30 countries. The current international currency settlement system mainly uses the SWIFT system (as explained in previous articles by the Godfather).
And this system is an international settlement system established under the leadership of the United States. In the political field, the United States can use this system as a tool to restrict or even prohibit the use of this system, thereby greatly harming the economic operation of the other party. Moreover, through the U.S. dollar’s active status, the U.S. can harvest world wealth through quantitative easing and printing and distributing a large number of U.S. dollars. According to the data, under the epidemic, the U.S.’s base currency injection scale directly increased from 4 trillion U.S. dollars in the previous year to more than 7 trillion U.S. dollars; 75%.
As we all know, the $4 trillion basic economic stimulus plan that Biden has launched means another round of launching into the market, and these dollars will eventually flow to the world. On March 30, the U.S. ten-year Treasury yield stood at 1.75%, the first time since March 19. The godfather of U.S. bond yields has said before that it represents the level of U.S. risk-free interest rates and is regarded as the only anchor for global asset pricing. The rapid rise in U.S. bond yields has triggered the return of funds to the U.S. and rising inflation expectations, which has dragged down the economic recovery of emerging markets.
The U.S. policy of flooding the U.S. dollar is no less than plundering the wealth of countries like robbers, and countries have almost no means to deal with such harvesting. It is a global consensus to get rid of the hegemony of the U.S. dollar, so it is expected that the digital renminbi will replace the U.S. dollar as an international currency as soon as possible. However, the United States can only vent its anger by pulling and stepping on the digital renminbi. It is definitely impossible to take precedence over other countries in the field of global central bank digital currency and obtain the right to formulate the rules of the game.
4.1 Market Strategy Layout of the Godfather of Coin Speculation
Bitcoin:
At present, the one-hour level price began to stabilize slowly after the sharp rise and fall yesterday. The price fluctuated within a narrow range between the upper track and the lower track of the Bollinger Bands. The macd saw signs of a dead fork and turning around after two hours. The KDJ third line hits below the 50 balance line, so in the short term, the price still has some room to step back.
Operation suggestion:
The godfather of currency speculation has been in the currency market for 7 years. From being ignorant at the beginning to becoming familiar with it later, from losing money at the beginning to making money now, from making orders blindly before to investing rationally now, from fighting alone before to now with a team operate. 7 years is just the beginning, what I want to do is 20 years, forever. I firmly believe that those who do everything for 7 years must turn an industry from a public to a professional. The content of this article is exclusively planned and released by the team of senior analysts, the Godfather of Speculation (public account: Godfather of Speculation). If you want to know more about real-time investment strategies, solutions, methods, trading techniques, operating skills, and K-line, you can add it to my learning Communication, I am the godfather of currency speculation, I hope to help you find what you want in the currency circle.
The godfather of currency speculation has been in the currency market for 7 years. From being ignorant at the beginning to becoming familiar with it later, from losing money at the beginning to making money now, from making orders blindly before to investing rationally now, from fighting alone before to now with a team operate. 7 years is just the beginning, what I want to do is 20 years, forever. I firmly believe that those who do everything for 7 years must turn an industry from a public to a professional. The content of this article is exclusively planned and released by the team of senior analysts, the Godfather of Speculation (public account: Godfather of Speculation). If you want to know more about real-time investment strategies, solutions, methods, trading techniques, operating skills, and K-line, you can add it to my learning Communication, I am the godfather of currency speculation, I hope to help you find what you want in the currency circle.
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