The Venezuelan financial watchdog known as Sudeban is now working on a mechanism that will assess crypto-related transactions in real-time. This is also to reach the goal of crypto stability. The goal of this mechanism is to limit the impact that crypto-related transactions have on the crypto stability of the exchange market. Analysts have lately established a connection between the current state of peer-to-peer (P2P) cryptocurrency markets and the recent decline in value of the bolivar.
The Government of Venezuela Will Keep an Eye on All Crypto Transactions
In order to preserve the value of the bolivar. The government of Venezuela plans to keep a close eye on the transactions that take place during crypto-based peer-to-peer exchanges. The Venezuelan banking watchdog Sudeban stated on the 20th of December that it is currently in the process of building a system to monitor financial transactions in real-time. And it is doing so with the assistance of Sunacrip, the national cryptocurrency regulator.
The organization claimed that the goal is to “combat the irregular practices. Which is said that harm the currency and the stability of the exchange market. But they did not provide any other details. This indicates that the government appears to be investigating the correlation between the amounts of currency traded on cryptocurrency marketplaces. And the exchange rate of the United States dollar to the Venezuelan bolivar for crypto stability.
Analysts have linked the recent cryptocurrency drought in peer-to-peer markets. This is due to the collapse of FTX to the sudden rise in the aforementioned exchange rate. While the government has not stated explicitly that there is a direct relation between these two variables. The government has not explicitly stated that there is a direct relation between these two variables. However, this is also thought to be mixed in with other causes. Such as the natural oversupply of fiat currency that is currently available on the market as a result of payments associated with holidays.
According to Legalrocks, a national law company that focuses on cryptocurrency law, since the end of 2021, more than 75 bank accounts have been frozen as a result of suspicious activity related to transactions involving cryptocurrencies, which led to the freezing of those accounts.
Devaluation and Inflation Together
This would be one of the “draconian” measures that president Nicolas Maduro announced on December 11 in order to curb the devaluation of the bolivar. Which has increased from 12.66 bolivars per dollar on November 28 to almost 20 bolivars per dollar on December 28. The president’s announcement came in response to the fact that the bolivar’s exchange rate had gone up. From 12.66 bolivars per dollar on November 28 to almost 20 bolivars per dollar on December 28. This follows another episode of significant depreciation that occurred in November. In which the bolivar had a 40% loss in value.
The behavior of the currency rate has analysts concerned. And they are currently studying the likely effects this may have on inflation rates for the month of December and moving into the next year. Recently, the nation has emerged from a period of hyperinflation that began in 2017 and lasted for a total of four years. An economist from Venezuela named Jose Guerra projects that the country’s inflation rate would reach 30% in December. Since October, the Venezuelan Central Bank has not made any formal announcements regarding the country’s inflation rate, which has increased by 119.4% since the beginning of the year 2022.
Prediction of Crypto for 2023
In 2021, cryptocurrency maintained its popularity. Goldman Sachs has begun to accept crypto. Coinbase was the first big crypto business to go public in April 2021, and the first Bitcoin-related exchange-traded fund appeared in October.
According to CNBC, Bitcoin, the most popular cryptocurrency, had a prosperous year. Since the beginning of 2021, the value of the digital currency has increased by approximately 70 percent, propelling the total crypto market to $2 trillion.
In 2022, Ethereum, Solana, Polkadot, and Cardano will be the cryptocurrencies to watch for investors seeking returns in niche crypto markets, per Carol Alexander.
CNBC noted that DeFi is part of the larger Web3 movement. Supporters of Web3 argue that a handful of businesses, including Amazon, Apple, Alphabet, and Facebook’s parent company Meta, control online platforms. Web3 proposes a new decentralized version of the internet that includes blockchain and non-fungible coins. However, business leaders like Elon Musk and Jack Dorsey remain unconvinced.
Prediction about cryptocurrencies: Bitcoin will either outperform or underperform the S&P 500
Despite the threat posed by the coronavirus to the global economy. Bitcoin and the benchmark index posted excellent gains in 2021: Bitcoin soared 66%, while the S&P 500 rose almost 27%.
According to Arcane Research. Bitcoin has performed like a risk-on asset, and they expect that crypto stability will the stock market’s behavior. If the stock market rises in 2022, Bitcoin is expected to outperform, according to the business. However, if the stock market experiences a negative year, Bitcoin would likely underperform.
Cryptocurrency Prediction: Ether will outperform Bitcoin once more
Ether trounced Bitcoin in 2021, rising 418 percent while Bitcoin gained 66 percent. Analysts predict that both will continue to do well due to the increase in NFT sales volumes. The majority of these tokens continue to operate on the Ethereum network.
Cryptocurrency Prediction: The majority of meme coins will vanish.
Shiba Inu, a Dogecoin offshoot, increased by 44,540,000 percent in the past year. Squid, a cryptocurrency named after the television series “Squid Game,” increased in value by more than 75,000 percent in less than a week, only to vanish shortly thereafter.
The USD Coin will surpass Tether to become the largest stablecoin.
Tether has maintained its position as the most valuable Stablecoin according to cryptocurrency valuation. However, it could be dethroned if USD Coin decides to join the lending wave.