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Venezuela Launches Its CBDC – Almost All Cryptocurrencies On A Rise.

Cryptocurrencies were widely higher on Friday morning, capping off a tumultuous week on a positive note, as Venezuela’s government-backed digital currency went live and the US Federal Reserve chairman said that crypto will not be banned.

Bitcoin (BTC-USD) was up 9.78% to $47,600 USD, while Ethereum (ETH-USD), the world’s second-largest cryptocurrency by market capitalization, was up 9.50 percent to $3,280.

Venezuela stated in August that it will redesign its national currency, the bolivar, and debut its central bank digital currency (CBDC), the digital bolivar, on October 1.

To ease payments and transfers between users, the digital bolivar will employ an SMS-based exchange mechanism.

According to some commentators, the CBDC might be a temporary solution for the country’s hyperinflation.

As Venezuela introduces its digital currency, bitcoin and ethereum are on the rise

1-Day Bitcoin Price Chart – Source: CoinMarketCap

Fed Chairman Jerome Powell was asked if he planned to “ban or limit the use of cryptocurrencies” in the United States. Powell responded with an emphatic “no.”

“They’re to some extent outside the regulatory perimeter, and it’s appropriate that they be regulated,” Powell said when questioned about stablecoins.

“A big portion of investors is moving their focus towards stable coins and other crypto-assets that are generated using more tactical methods,” said Kunal Sawhney, CEO of equities research company Kalkine Group, in an interview with Yahoo Finance UK.

According to Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), a bitcoin exchange-traded fund based on CME bitcoin futures would provide “substantial investor protection” according to the Investment Company Act of 1940. He also stated that the SEC is evaluating many bitcoin ETF registrations.

This “gave a clear boost for the investor’s sentiment,” according to Wael Makarem, the senior market analyst at trading firm Exness.

“The main cryptocurrencies are close to recouping their losses from the previous week. Cryptocurrency adoption may be aided by by-laws that offer appropriate protection for investors “He went on to state the following.

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