A weekly section discussing how general events can influence the near-term future of cryptocurrency sector
Greece Takes First Steps towards Capital Control
For a country that was once speaking about adopting a cryptocurrency at large, Greece is now taking a U-turn from its libertarian philosophy, explains its latest decision to centralize its cash. Just a few days back, the Greek government has asked the public sector entities to transfer a mandatory amount to deal with cash squeeze. The money will be reportedly used in paying impending debt maturities.
Cordoba MercadoLibre Users Can Only Operate Within the Province
Following a tax dispute with the provincial administration, e-commerce website MercadoLibre decided to restrict Cordoba users and vendors to operate outside the province. According to the available reports, the local finance authorities there wanted to charge MercadoLibre for each transaction it conducts, a thing that was never known to the company at first place. Overall, the dedicated MercadoLibre users and vendors in Cordoba will be forced to look for other options to buy and sell the items. They could always look into the cryptocurrency based markets.
Interbank Lending Goes Negative in Europe
A curious result of massive bond purchases by the “quantitative easing” program, driven by Mario Draghi, is that now the rate of three-month interbank lending is negative. This means that banks in the euro area is being paid to borrow money from other banks.
ECB Starts Buying Covered Bonds with Negative Returns
The European Central Bank began to buy covered bonds with negative yields, while its own asset purchase program drastically reduces the supply of highly rated debt. The ECB has already bought guaranteed worth € 69.7 billion ($ 75.5 billion) since October, as part of its latest measures to “stimulate growth in the euro area” bonds.