The Bank for International Settlements (BIS) recently published the results of a study “to investigate the drivers of crypto adoption” by assembling a database “on retail use of crypto exchange apps at daily frequency for 95 countries” over a period of seven years. According to BIS, the data shows that rising bitcoin prices are followed by the entry of new users, with about 40 percent of new users being men under 35, commonly identified as the most “risk-seeking” segment of the population. The data also indicates that roughly 75 percent of retail investors have likely lost money on their bitcoin investments.
In a recent press release, the innovation center of the New York branch of the U.S. central bank announced that it will collaborate with a group of private sector organizations in a 12-week proof-of-concept project “to explore the feasibility of an interoperable network of central bank wholesale digital money and commercial bank digital money operating on a shared multi-entity 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 notable item, a cryptocurrency trading firm recently published a report on current cryptocurrency market activity and the “general macro outlook” of 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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