The cryptocurrency landscape is known for its volatility and fluctuations, with the prices changing considerably sometimes in as few as twenty-four hours. This is why the investors must remain vigilant and ensure that their strategies are aligned with the latest developments. One of the best ways to ensure the success of your ventures and portfolio is to be aware of the crypto news today so that you know which assets are on an upswing, which are going through a downswing, and how the macroeconomic factors are influencing things. Keeping up with all these numbers can sound exhausting, but it is the only way to ensure that your assets and portfolio are safe.
Cryptocurrencies are known for their massive fluctuations, with the prices changing considerably over the span of twenty-four hours or less. Knowing where the market is headed allows you to come up with a comprehensive strategy that is aligned with your financial goals and expectations, so you make the most of what the marketplace has to offer you.
EU banks
The European Banking Authority is a well-known EU regulatory agency with the power to overrule national regulators if they don’t manage to regulate their banks in an adequate manner. It prevents regulatory arbitrage and ensures competition remains fair for all participants. European crypto investors have naturally looked to it when it comes to regulating the crypto market, and it seems now that their wait is finally over. The EBA has recently completed the creation of draft rules requiring banks to hold more capital against cryptocurrencies such as Bitcoin and Ethereum.
The idea is for the rules to address implementation aspects and guarantee that there’s harmony and balance when it comes to institutions across the European Union being exposed to crypto assets. According to Binance.com, “Ethereum is emerging as the institutional favorite” and “Crypto isn’t just the future of finance – it’s already reshaping the system, one day at a time.” As a result, global financial systems must find ways to keep up with the developments so that they don’t end up being caught unprepared and having to fix things in the long run, operations that would most likely be costlier and more challenging to manage.
The current EBA draft is fairly strict and addresses additional areas such as the need to calculate aggregate crypto exposure, including credit, market, and counterparty risk modeling. Since the separation between assets is set to be introduced, BTC and Ether couldn’t be offset against each other. The draft could come into effect very soon if neither the European Parliament nor the Council objects. The rules will impact European banks holding crypto on their balance sheets, such as the Italian Intesa Sanpaolo, which bought 1 million euros worth of BTC in January this year.
As a result, they’ll have to hold 12.5 million euros in capital against the position under the draft framework.
JPMorgan crypto purchases
JPMorgan Chase has recently joined forces with a well-known cryptocurrency exchange in order to bring digital currency purchases, stablecoin rewards, and direct bank integrations to their customers. Chase credit card holders will be able to use their cards to buy crypto and will also have the chance to redeem their Chase Ultimate Rewards Points for USDC starting next year. The project is set to be the first of its kind, as there are no other major ones like this in the cryptocurrency ecosystem. The fact that points from a major credit card rewards program can be redeemed for cryptocurrency awards is in itself revolutionary for the marketplace.
The users can link their accounts directly to the exchange as well, making crypto purchases much more accessible. This new functionality is part of the broader push for digital assets that JP Morgan has been an integral part of. A recent announcement specified that the company has plans to become involved in the stablecoin environment as well, a decision driven by the fierce competitive environment in which fintech companies find themselves. Many of these enterprises are attempting to replicate the ways of the traditional finance systems. Apart from that, JPMorgan is also attempting to offer direct loans against BTC and Ether, with the Financial Times reporting that the bank is exploring the intricacies of crypto-backed loans.
While rumors say lending against crypto could start next year, nothing is certain yet.
Quantum computing
The blockchain, AI, and quantum computing are the most widely discussed tech developments in the world right now, the ones set to change the world and transform the regular systems that people have been used to for years. The latter, however, could prove quite problematic for the crypto environment, with the bleakest scenarios suggesting that it could dismantle the decentralized finance system altogether. Cybersecurity experts have warned that the cryptographic defenses associated with crypto spaces are not equipped to withstand the impact of quantum computing breakthroughs, and not even AI-based ones.
One of the main concerns is a method referred to as “harvest now, decrypt later,” in which the attackers stockpile encrypted transactions and wait for future machines that will be powerful enough to crack the private keys with no issue. Brute force attacks powered by regular computation would take longer than the current age of the universe to work, more specifically, about 9.40×10^65 years. That 94 followed by 78 zeros. However, quantum computers and their abilities are a different matter. They could potentially derive private keys from the public ones in a matter of minutes, making it incredibly simple to hijack funds from exposed addresses.
Most security experts agree that crypto security doesn’t refer to “safe until Q-day,” since cybercriminals are most likely already harvesting data. Archives of data are quietly being built and could be unlocked when the hardware catches up in the future. Investing in blockchain security measures that are resistant to quantum threats is a must that companies and developers shouldn’t delay. The infrastructure needs to become more robust now in order to safeguard the integrity of the crypto ecosystem and the transactions of its users in the future.
The crypto world is constantly changing and evolving. If you’re an investor and want to maximize your return rates, make sure to keep up with the developments. As always, remember to keep your wallet safe and avoid making any impulsive decisions.