The Bank for International Settlements (BIS) recently published the results of a study “to investigate the drivers of crypto adoption” by compiling a database “on retail use of crypto exchange apps with daily frequency for 95 countries” over a period of seven years. According to the BIS, the data shows that rising bitcoin prices are followed by new users, with approximately 40 percent of new users being men under the age of 35, often identified as the most “risk-seeking” segment of the population. The data also indicates that approximately 75 percent of retail investors are likely to have lost money on their bitcoin investments.
In a recent press release, the Innovation Center of the New York branch of the US Federal Reserve announced that it will partner with a group of private sector organizations in a 12-week proof-of-concept project “to explore the possibility of an interoperable network of central bank digital money and digital money from commercial banks operating on a multi-device shared distributed ledger.” According to the press release, the project will “test the technical feasibility, legal viability and business applicability of distributed ledger technology to settle the liabilities of regulated financial institutions through the transfer of central bank liabilities.”
In a final point of note, a cryptocurrency trading firm recently published a report on current activity in the cryptocurrency market and the “overall macro outlook” for the cryptocurrency sector. The report provides current data and analysis on various areas of the cryptocurrency markets, including lending, derivatives, altcoin volatility and DeFi activity.
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