Asian share markets remained subdued amid a U.S. market holiday, with the dollar under pressure following disappointing retail sales data that fueled expectations for two Federal Reserve rate cuts this year. Geopolitical tensions surrounding the Russia-Ukraine conflict and potential U.S. tariffs added to investor caution, while Hong Kong’s market surged 7% last week on optimism for AI developments. Gold prices approached record highs, while oil prices faced downward pressure amid potential peace talks that could ease sanctions on Russian supply.
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0 posts last weekBank of England Governor Reassures Cash Will Remain Available Amid CBDC Development
Bank of England Governor Andrew Bailey reassured that cash will continue to be supplied as long as there is demand, despite concerns over the potential impact of the UK’s central bank digital currency (CBDC), Britcoin. While supporting wholesale CBDCs for banks, he expressed caution regarding retail CBDCs, emphasizing the need for innovation in digital payments, particularly in cross-border transactions. Bailey highlighted that the central bank is working on a retail CBDC to foster modernization in the financial sector.
read moreStock Market Updates and Key Economic Events for the Week Ahead
Indian stock markets will operate normally on August 26, Krishna Janmashtami, with Nifty closing 187 points higher, just 68 points shy of its all-time high. Gold prices are nearing record levels amid expectations of U.S. rate cuts, while oil prices rise due to Middle East tensions. UltraTech Cement raised $500 million through sustainability-linked financing, and Capitalmind Financial Services received SEBI approval to launch a mutual fund.
read moreBOE Governor Asserts Bitcoin’s Inefficiency as Payment Method
Bank of England (BOE) governor Andrew Bailey expressed to the UK Parliament Treasury Committee that Bitcoin is losing momentum as a payment method due to its inefficiency. Bailey and BOE deputy governor Sarah Breeden discussed the BOE’s latest Financial Stability Report, where Bailey reiterated his belief that unbacked cryptocurrency lacks intrinsic value and Breeden highlighted the absence of a regulatory framework as a barrier to cryptocurrency’s progress in traditional finance.They also discussed the challenges stablecoin presents to regulators and the ongoing debate around the central bank digital currency (CBDC), or “Britcoin”. The December report, which was the focus of the meeting, briefly touched on digital currencies and the policy considerations for stablecoin and CBDC. It was noted that UK regulators have been working on stablecoin rules since 2023, with regulations expected to be enforced by 2025.
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