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Updated on: Friday, October 15, 2021, 03:02 PM IST

US SEC likely to allow Bitcoin futures ETF to begin trading next week: Report

TThe world's biggest cryptocurrency rose nearly 4 percent to as high as $59,664, its highest since mid-April. It has doubled in value this year and is near April's record high of $64,895./Bitcoin cryptocurrency | Photo: Representative Image

TThe world's biggest cryptocurrency rose nearly 4 percent to as high as $59,664, its highest since mid-April. It has doubled in value this year and is near April's record high of $64,895./Bitcoin cryptocurrency | Photo: Representative Image

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Digital currency Bitcoin hit a six-month high on Friday, approaching the record hit in April, as traders became increasingly confident that US regulators would approve the launch of an exchange-traded fund based on its futures contracts, Reuters said.

The world's biggest cryptocurrency rose nearly 4 percent to as high as $59,664, its highest since mid-April. It has doubled in value this year and is near April's record high of $64,895.

The US Securities and Exchange Commission (SEC) is poised to allow the first US bitcoin futures ETF to begin trading next week, Bloomberg News reported on Thursday, citing people familiar with the matter.

Caution against use of Bitcoin

Two days a top Bank of England official said, Bitcoin and other cryptocurrencies could cause the next financial crash, Daily Mail reported.

Deputy Governor Sir Jon Cunliffe said a massive collapse in the price of cryptocurrencies to as low as zero is 'certainly a plausible scenario' and that there was 'a possibility of contagion' across the global financial sector.

As per the report, Cunliffe said the hit to individual investors if cryptocurrencies collapse would be unlikely to cause a 'financial stability risk'. But he added: 'The picture is less clear for financial institutions.'

G& natiDigital currencies issued by any central banks should fulfill its mandate on monetary and financial stability, and must also meet rigorous standards.

Stating this, the Group of Seven (G7) advanced economies said, digital economies should "support and do no harm", according to Reuters.

In December 2020, finance ministers and central bankers from the G7) advanced economies strongly supported the need to regulate digital currencies.

In the meanwhile, central banks across the world have stepped up efforts to develop their own digital currencies to speed up domestic and international payments.

G7 leaders lay out guidelines for central bank digital currencies

G7 central banks have been working to set common standards toward issuing CBDCs as some proceed with experiments.

Stating this on October 14, the Group of Seven (G7) advanced economies said, digital economies should "support and do no harm", according to Reuters.

In December 2020, finance ministers and central bankers from the G7) advanced economies strongly supported the need to regulate digital currencies.

In the meanwhile, central banks across the world have stepped up efforts to develop their own digital currencies to speed up domestic and international payments.

G7 central banks have been working to set common standards toward issuing CBDCs as some proceed with experiments.

In March, Finance Minister Nirmala Sitharaman had said the government is going to take a calibrated position on cryptocurrency

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Published on: Friday, October 15, 2021, 02:35 PM IST
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