BBVA debuts as the first euro bank to offer the Bitcoin Exchange
Digital money is a mode of trading in virtual structure that has properties like real monetary forms. It allows exchanges in the moment and can be used to purchase physical services and goods. It has no geological or political boundaries, so it is possible to make payments or transactions anywhere in the world. In this noticiasdiarias24.com article we will detail everything related to BBVA cryptocurrency and start with certain definitions that will help you understand this new development, such as, for example, What is a cryptocurrency? This «new type of money» appeared in early 2009 with Bitcoin. In any case, lately its acceptance has not stopped increasing and a large number of cryptocurrencies have emerged, such as Ethereum, Litecoin or Dogecoin.
Digital currencies are made by confidential units and are not limited by any national bank and work through Blockchain, and that implies that they are only virtual. An important point is that their value is characterized by the market interest that real customers give to these resources, that is, they depend on the supply and demand that users give them.
A bank-backed cryptocurrency is a digital currency that is enabled for use by institutions.
A bank-backed cryptocurrency is a digital currency that can be licensed for use by institutions. This type of cryptocurrency is backed by a government, central bank, or other institution. This means that the value of the currency is tied to an institution’s ability to pay its debts. Institutional cryptocurrencies are usually backed by fiat money such as the US dollar or the Japanese yen.
The benefit of institutional cryptocurrencies is that they are more stable than other types of cryptocurrencies and allow for more efficient transactions. However, they may not be as decentralized as some people prefer and there may also be issues with scalability. Examples of institutional cryptocurrencies include BBVA’s euro-backed cryptocurrency, JPMorgan Chase’s JPM currency, and the U.S. dollar-backed Tether cryptocurrency.
Cryptocurrencies have become an increasingly important part of conventional finance. Due to Bitcoin’s success, its popularity has increased in recent years. In 2017 alone, there was a 500% increase in cryptocurrency transactions. According to Deloitte’s 2018 Global Blockchain Survey Report: «42% of executives surveyed said they are exploring blockchain and cryptocurrencies in some capacity.»
How to earn digital currencies and what can you do with them?
The usefulness of digital currencies is to exchange cash for cryptocurrencies and use them to make exchanges. Since exchanges with this type of monetary forms are carried out without mediators, the use of cryptocurrencies to make transactions to different nations has the advantage that by not using intermediaries we can save the cost of the latter by not using them.
There are several sites to make the exchange. It is essential to understand that not all people have the knowledge to use cryptocurrencies since it is necessary to handle speculation very well.
What is the interest of banks in cryptocurrency?
With regard to the financial framework, it has not remained indifferent. For example, this type of agreement has led BBVA Switzerland to create a Bitcoin exchange and attention management for its financial customers, creating the division of BBVA cryptocurrency, determined to extend it to other digital currencies later.
It is worth remembering that this division does not educate in this type of investments that have a high risk and instability, however, for certain years it has been investigating blockchain innovation for its ability to influence and change monetary administrations.
As for BBVA in Peru, it can offer cryptocurrency forms to its Patrimonial and Private Banking customers in the country. «We give this option through BBVA cryptocurrency, which has an administration that began operating in June 2021,» said Horacio Ruibal, head of Patrimonial and Private Banking of the monetary foundation.
The clients of the section can monitor both Bitcoins and Ether from an application, through which they imagine these crypto assets, in a very similar way to the rest of the investments.
The Swiss bank BBVA has the ambition to be a world reference in the financial sector. One of its objectives is that customers can move seamlessly through the global market, using BBVA cryptocurrency
BBVA launched in June 2021 a new and creative help for its financial customers. Also the custody and negotiation and acquisition of cryptoactives, and more explicitly of bitcoins. The BBVA cryptocurrency, with which this task starts, although it does not rule out expanding the scope of other digital monetary standards later.
The bank has been working on this task for more than two years, which it dispatches through its private financial assistant in Switzerland, since regulation in this nation is substantially higher than in the rest of Europe, and the world. It has an exceptionally developed system in terms of regulating and receiving digital assets, with several organizations having expertise in blockchain.
With this, BBVA becomes the first bank in Europe, and practically in the world, with the exception of Swiss banks, to offer guardianship and the possibility of working on the purchase and offer of BBVA cryptocurrency 24 hours a day, seven days a week.
Since the BBVA cryptocurrency division began, it has done a pilot test with 50 financial customers from several nations, and after checking its viability it has chosen to launch a new platform so that all of them can operate through it.
This service will allow BBVA to respond to the growing interest of financiers who at that time were already working with these bitcoins through fintech. It also addresses a «novel proposal» in the market that allows effective money management and the union of conventional and digital financial resources in an investment portfolio.
BBVA seeks quality cybersecurity solutions for its customers
In that regard, associations have implemented comprehensive online protection measures to maintain the secrecy and security of their systems, organizations and datasets. At the same time, they need to keep up to date with their quality of service.
The BBVA cryptocurrency division has seriously opted for the cloud to provide its customers with more remarkable security. This has been significant for the digitization of the business, especially during the covid-19 pandemic. The bank has not only maintained a quality service, but has also managed to facilitate teleworking and improved trust.
The incorporation of the cloud is a key piece in the administrative change, because it reduces management costs, but also because, in addition to following the highest security standards, it allowed access to higher value services.
These consumer changes regarding digital services have meant that companies need to advance plans and processes that safeguard customers and the platforms through which they offer their services.
For this reason, organizations have used and executed emerging digital technologies seeking to reduce network insecurity and financial fraud related to computer technologies. These concerns developed and deepened with the emergence of the coronavirus pandemic.
Thus, digital and secure options have merged among the main requests of financial consumers, and institutions have had the option to respond to these requirements with progressively stronger, safer and more innovative systems.
BBVA’s new custody and sale service cryptocurrency will offer Ether storage
The BBVA cryptocurrency service in Switzerland, which began operating for all customers in June 2021 with bitcoin, has gone a step further. With the expansion of the Ether to the company’s portfolio, BBVA Switzerland financial customers, will be able to manage both bitcoins and this cryptocurrency, the bank explains in a note. From the application of BBVA, these crypto assets can be seen in a very similar way to the rest of conventional investments. Likewise, BBVA points out that they can be completely changed to euros, dollars or another type of cash.
BBVA Switzerland is positioned as the main conventional bank in Europe to integrate ether into its administration. The bank opted to consolidate ether in the crypto-asset portfolio. This has been because, together with bitcoin, they are the conventions that generate the most income among funders, while offering all the guarantees to comply with the regulation.
Since the launch of BBVA’s new cryptocurrency service, it has generally been well received by private financial customers and new funders who decide to manage their portfolios through New Gen, according to the bank. The biggest interest comes from investors who need to expand their portfolios, from private clients, family workplaces to institutional investors.
The objective of the BBVA cryptocurrency division is to continue growing by expanding crypto assets in a short time. With this creative operation, BBVA is positioned as a reference establishment in the reception of blockchain innovation, where there is clear regulation and a huge reception of these crypto assets. Its expansion to new nations or to different types of customers will depend on whether enterprise markets meet demand and regulatory conditions.
The world of cryptocurrencies expands: crypto games: how blockchain propels games to new horizons.
Blockchain-based applications have experienced colossal development in recent times. The rise in value of digital currencies or cryptocurrencies is only the most striking sign, But behind the unpredictability of these resources, this innovation is advancing in usefulness and reception. Possibly its most recent appearance has been in the so-called cryptogames. This are titles in which the player obtains prizes in the form of cryptoassets just for playing.
In Axie Limitlessness, which has long been the best-known crypto game, the player trains animals as a ‘pokemon’ and collects digital currencies when fighting with them. In addition, these animals can be sold some time later. The same goes for Cryptokitties, one of the pioneers, which allows players to create virtual cats and then exchange them for cryptocurrency.
From now on there are different types of cryptogames: fighting, methodology, simulation, object trading. One model is Outsider Universes, in which the client is a space pilgrim who must choose planets to mine. Based on his decisions, he gets things and abilities. And more and more cryptogames appear where the player can win cryptocurrencies. Thanks to these, the potential customers of the different banks of the world increase, this favors divisions such as BBVA cryptocurrency.
What makes cryptocurrencies suddenly change value?
A decisive element in the change of the value of cryptocurrencies is their low reception. A great reception would help regulate this currency, but this seems to be far from happening. From one point of view, its comparison with the types of money issued physically is not total, since it still has no facility to be exchanged for goods and services nor the ability to build a stable store of value. They do not ensure that they can maintain their purchasing power in the long run. On the other hand, increased regulation could lay the groundwork for a more noticeable reception. Although, assuming that the regulation is excessively severe, it could cause the opposite.
Another important component is trust. Digital currencies emerged determined to decentralize the management of people’s assets, so they are outside the control of financial organizations. This autonomy implies that its value is not sustained by governments. In this way, the markets do not trust cryptocurrencies, but they do trust the types of money issued by governments, whose supply and inflation are limited by banks.
Stablecoins need to acquire a part of this trust by controlling their exchange through calculations. Or by connecting it with government-issued money, material resources such as gold or earth or another digital currency, which makes them less unstable. This is the main idea of banks that see value and importance of bitcoins, such as the BBVA cryptocurrency or the USD Coin, linked to the US dollar, regulated by the US government.
What is utility, sentiment and speculative practices regarding cryptocurrencies?
An important factor in cryptocurrency is the thin balance between supply and demand. If a BBVA cryptocurrency produces a huge volume of units with little demand, its value will go down, as well as vice versa. There is also the problem of the mining system to take into account: the more difficult it is to produce cryptocurrencies, the lower the supply and, thus, the higher the prices if demand rises. These variables condition the accessible stock and prevent costs from plummeting.
Another situation that conditions prices is the degree of utility, that is, the limit of a token or its blockchain platform to address a real issue. The more utilities, the more demand they will be and, in this way, the more their prices will increase. In this sense, the potential of cryptocurrencies is still being investigated, since they are in an initial phase of refinement.
The sentiment is also important: if the news around a cryptocurrency or its acquisition by customers is positive, demand and cost will increase. This is the situation of the so-called «image coins», cryptocurrencies that become famous in an extremely short period of time, due to the enthusiastic sponsorship of «finfluencers». The reverse is equally obvious: a terrible position can cause a cost breakdown in record time.
Speculative practices assume a vital role in the unpredictability of cryptocurrency costs. For example, exchange, which consists of getting them on one trading platform («trade»), and selling them at a higher price on another. This is achieved thanks to the fact that costs are not standardized, this is used by traders to create profits and encourage fraud.
The importance of «whales» in the cryptocurrency movement
In the environment of the BBVA cryptocurrency we also find whales, wallets that gather huge amounts of bitcoins. This name is normally given to customers with something like 1,000 bitcoins. Whales move the market to their own advantage, which makes it much more difficult to establish a target cost. These whales are firmly followed by examiners, trying to make future projections and anticipate patterns.
One of these types of control is the «exchange» procedure known as «doing this process again.» Using this procedure, a whale begins to sell a large volume of digital currencies at a lower cost than the market, which triggers a situation of panic and selling by retail customers. When the cost reaches the lowest possible after the degradation, the whales take advantage of the situation and buy back more cryptocurrencies.
There are also vengeful whales, associations or «programmers» who take huge volumes of bitcoins and move them through dark directions, and then wash them on an exchange.
Closing this cycle of elements, whales have such great power that they manage to destabilize since cryptocurrencies have not yet reached mass reception. This is another example of how difficult the movement and determination of the price of cryptocurrencies is.
What are the differences between a cryptocurrency and a token?
A computer token is a significant unit of value in cryptography and blockchain. Moreover, it is given by a private entity to have a particular utility in the computing world, with the value set by an entity.
It works similarly to when in reality we exchange our cash for chips that activate some games in parks, allow us to play a slot or in casinos. Therefore, a «token» refers to a utility or a computing resource that can have very different purposes. It can be used to pay for a task, participate in a game on the web, complete a decentralized financial activity (DeFi). Also, it can certify the ownership of the parts of an organization or the option to accept its benefits, give access to explicit administrations in a scenario or award a prize in a loyalty program.
A cryptocurrency, for example, the BBVA cryptocurrency, is a symbol whose main design is to act as a decentralized method for payment of goods and services in virtuality, as well as a store of value and savings funds.
Another way to recognize them is by the properties that digital forms of money usually describe, which tokens do not have to meet: being fungible, divisible and portable, and having a restricted stock.
Conclusion: What does cryptocurrency mean for the future?
Finally, it is expressed that bitcoin (for example, BBVA cryptocurrency) are another option. Protected and effective, for the trade of labor and products that emphatically influence the world economy due to its decentralization, extraordinary liquidity and adaptability. Be that as it may, knowing this market before entering it to take advantage of this electronic currency is vital.
Similarly, we must know that security is generally relative; Although virtual monetary forms have great security, nothing is 100% free of weaknesses.
Similarly, it means quite a bit to bring up that, as we have proactively referred to in this noticiasdiarias24.com article, the value of these virtual monetary forms is unpredictable and, similarly to the usual monetary standards, there are external variables over which we have zero controls, so one day you can acquire a ton. while the next day you can lose everything.