Brave to Facilitate Browser-based Cryptocurrency Trading

Brave to Facilitate Browser-based Cryptocurrency Trading
March 26, 2020


The cryptocurrency market remains bullish with Bitcoin (BTC) trying to break above $7,000. At the time of writing this article, Bitcoin has gained 1.8% to trade at $6,695.42. Ether (ETH) and XRP, however, are trading flat at $136.27 and $0.1616, respectively. Other major altcoins which have gained in the past 24 hours include Monero (XMR-$48.26, 4.8%), Tezos (XTZ-1.73, 2.3%), EOS (EOS-$2.31, 0.2%), Tron (TRX-$0.0114, 0.4%),  Stellar (XLM-$0.0415, 4.0%), Ethereum Classic (ETC-$5.03, 0.6%), Cardano (ADA-$0.0297, 0.1%), Binance Coin (BNB-$12.36, 1.1%), Cosmos (ATOM, $2.09, -1.1%), Dash (DASH-$67.93, 0.1%) and LEO (LEO-$1.01, -0.5%). Altcoins which have lost in the past 24 hours includes Huobi (HT-$3.37, -0.1%), Bitcoin Cash (BCH-$222.31, -0.2%), Litecoin (LTC-$39.38, -0.6%), ChainLink (LINK-$2.25, -0.9%), OKB (OKB-$4.29, -0.7%) and IOTA (IOTA-$0.1411, -1.1%).

Government level initiatives

Central banks around the world are cutting benchmark interest rates

Central banks across the globe are slashing benchmark interest rates and unveiling stimulus measures to mitigate the negative impact of coronavirus on the economy. People’s Bank of China (PBoC), on its part, is also following a loose fiscal and monetary policy. Additionally, the central bank is also expediting its CBDC (central bank digital currency) plan. In this regard, the central bank has finished developing basic features of the legal digital currency and is now working on rules that will assist its rollout.

Several Shenzhen-headquartered private firms such as Tencent, Huawei, Alibaba, and China Merchants Bank have taken part in the creation of the digital currency.

Cao Yan, managing director of Digital Renaissance Foundation, has stated that these private enterprises were chosen based on their world-class blockchain and third-party payment experiences.

Cao trusts that expediting the CBDC strategy can assist in transforming a crisis into a lucrative opportunity as crypto is generally perceived as the most accessible tool to convert transfer a central bank’s zero and negative interest rate policies to commercial banks. Cao further stated that “If there is a chance China is considering lowering its interest rate into negative territory as a final option and directing such policy to commercial loans and lending, a circulated digital currency rather than M0 will be able to achieve that.”


The CFTC issues clarification on physical crypto deliveries

The US CFTC (Commodity Futures Trading Commission) has issued a clarification on physical cryptocurrency deliveries. The Commission has also collectively approved the latest explanatory guidelines concerning retail commodity trades involving some cryptocurrencies.

In particular, the guidance explains CFTC’s opinion regarding “the ‘actual delivery’ exception to Section 2(c)(2)(D) of the Commodity Exchange Act (CEA) in the context of digital assets that serve as a medium of exchange, colloquially known as ‘virtual currencies.'”

In conventional markets, when investors/speculators trade futures, they are gambling on the future price of the underlying security. Traders who retain the futures contract until settlement will receive physical delivery of the underlying asset.  CFTC has stipulated a 28-day time frame for physical delivery, enabling the buyer to utilize their bought cryptos after that deadline.

The Commission has also stated that the selling party and facilitator will not hold ownership. The commission explained the process as follows: “The offeror and counterparty seller (including any of their respective affiliates or other persons acting in concert with the offeror or counterparty seller on a similar basis) do not retain any interest in, legal right, or control over any of the commodity purchased on margin, leverage, or other financing arrangements at the expiration of 28 days from the date of the transaction.”


Private sector initiatives

A new stablecoin pegged to the Swiss Franc

Swiss crypto bank Sygnum has introduced a stablecoin pegged to the Swiss franc. Using funds held with the Swiss National Bank, ‘DCHF’ token (settlement) is pegged to the Swiss franc on a 1:1 basis. Sygnum, which received a digital asset bank license from the Swiss Financial market Supervisory Authority (FINMA) in August 2019, asserts to be the first-ever licensed bank in Switzerland to rollout a stablecoin.

The crypto bank takes in fiat deposits, with denominations in euros, francs, Singaporean dollars, and US dollars. Using the bank’s net banking platform, all fiats can be converted into DCHF token. Clients of Sygnum can also buy and hold Ether (ETH) and Bitcoin (BTC), among other cryptocurrencies. The bank intends to serve institutional customers with its stablecoin, stressing that the coin facilitates quick and trouble-free settlements, in addition to unique financial solutions. Markus Hartmann, Sygnum’s head of tokenization, points out that DCHF token, in combination with smart contracts, can be utilized to issue routine bulk payments such as ‘dividend pay-outs.’

The bank also owns a capital markets services license issued by Singapore regulatory authority.


Brave joins hands with Binance cryptocurrency exchange

The privacy-focused browser Brave, has entered into a partnership with Binance cryptocurrency exchange to start offering in-browser cryptocurrency trading facility to over 13 million users. The crypto exchange has reworked its widget to permit Brave users to trade cryptocurrency without exiting the browser.

Branden Eich, CEO of Brave Software, detailed the logic behind this collaboration: “Our focus has always been on our users. This time, it’s about making crypto more usable by more people. We already have 1.6 million users who are crypto-savvy; they have signed up for the BAT Rewards Program; now they’ll be able to make crypto trades without leaving the browser”.

The Binance Widget will be incorporated on the new tab of Brave Nightly and offered to Brave browser users in April. Using the current trading account with Binance, users of the Brave browser will be able to login to the Binance Widget. Therefore, Brave need not worry about AML (Anti-Money Laundering) and KYC (Know Your Client) compliance process, which is taken care of by the cryptocurrency exchange.

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.

Richard W

Richard W

Richard is the guy who know everything there is about the financial industry, working in a top firm for over 15 years, he will give the lowdown on some of the biggest companies in the world

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