Pick n Pay Enables Bitcoin Payments
Market Summary
Over the last week, the stock market performance was strong, with the S&P 500 and Nasdaq up +2.15% and +4.37%, respectively. The positive week was due to the recent interest rate decision by the US Federal Reserve (Fed), which increased the lending rate by +0.25%. Tech stocks that underperformed last year led the rally amid hopes that the Fed may curb its aggressive rate increases and relieve some of the pressure on equity valuations.
Not only did stocks respond positively to the news, but so did cryptocurrency, with Bitcoin reaching its highest level since August 2022. Moreover, retail giant, Pick n Pay is now accepting Bitcoin payments via the Lighting Network in over 1 600 stores across South Africa.?
In addition, Blackrock, the world's largest asset manager, plans to launch an Ethereum Private Trust following its successful entry into the crypto market in August 2022 with its spot Bitcoin Private Trust.
With that in mind, let’s get to this week's top stories!
Headlines
Pick n Pay now accepts Bitcoin payments nationwide
What’s the story?
Following a three-month pilot testing phase in 39 locations, South African grocery retailer Pick n Pay is now accepting Bitcoin in all of its 1 628 stores nationwide.
What does this mean??
As part of its nationwide rollout, store customers will be able to pay for items using cryptocurrency via smartphone apps or by scanning a QR code and accepting the South African rand’s conversion rate at the time of payment.
After years of piloting the service in selected stores, the retail chain disclosed plans to roll out crypto payments nationwide in November. The move coincides with the country’s financial regulator, the Financial Sector Conduct Authority (FSCA), which amended its financial advisory legislation in October to classify crypto assets as financial products.?
Why is this important??
Cryptocurrency payments combine the ease of cash with the safety and security of electronic identification mechanisms such as biometrics and cryptographic encryption. Crypto payments are also less expensive than using a credit card or paying cash handling fees. More importantly, it is a digital payment system that is available to everyone, including those who are unable to use traditional banking systems (the unbanked).
Pick n Pay, like the rest of South Africa, appears to be making significant strides toward cryptocurrency adoption. According to Chainalysis' 2022 Global Crypto Adoption Index, South Africa ranks 30th in the world in terms of adoption.
Where can you gain access to Bitcoin and the cryptocurrency market at large?
Revix seamlessly allows you to gain investment exposure to Bitcoin as a standalone cryptocurrency as well as a part of the Revix Top 10 Bundle and Payments Bundle.
Blackrock looks to launch Ethereum Private Trust
What’s the story??
Following the success of the spot Bitcoin Private Trust in August 2022, it is widely expected that Blackrock, the world's largest asset manager, will look to launch its Ethereum Private Trust next.
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What does this mean?
Blackrock made it clear that it was expanding its presence in the digital assets industry. In fact, Larry Fink, the Blackrock CEO, predicted that the tokenisation of securities would be the future of the digital asset space.?
If the Ethereum Trust is launched, it will send a strong message of confidence in the sector's future and reassure potential investors who are still wary of crypto following the FTX crash. Furthermore, Blackrock's trust will be a positive move for Ethereum, building on the excitement surrounding the upcoming Shanghai upgrade.
Why is this important?
Over the last year, Blackrock has shown a strong interest in the cryptocurrency space, with many of its investors requesting that the asset class be included in their portfolios. As a result, Bitcoin is now a viable investment option in the firm's flagship Global Allocation Fund, which is worth approximately $15 billion.
The demand for crypto exposure does not seem to be slowing down, regardless of the recent events that took place in 2022.
Where can you gain access to Ethereum and the cryptocurrency market at large?
Revix seamlessly allows you to gain investment exposure to Ethereum as a standalone cryptocurrency as well as a part of the Revix Top 10 Bundle and Smart Contract Bundle.
US interest rate decisions continue to drive crypto prices higher
What’s the story?
On Wednesday, the Federal Reserve announced that it would raise its short-term borrowing rate by +0.25%. Despite this being the 8th consecutive rate increase, the rate increases have been reducing in size, allowing Bitcoin and the rest of the crypto market to maintain its momentum.
What does this mean??
Higher interest rates are starting to have the desired effect, with consumer spending and inflation beginning to slow in recent months. The recent increase is the smallest since March 2022 and signals that policymakers are adopting a more relaxed stance after spending much of last year aggressively raising interest rates at the fastest pace in decades.
The development coincides with a crypto market rally that has seen Bitcoin, the most valuable cryptocurrency by market capitalisation, surpass $24 000.
Why is this important?
The crypto market has benefited from Fed Chair Jerome Powell's remarks about decreasing inflation and reduced interest rate raises. Apart from Bitcoin, which increased by more than +5.00% in a matter of hours, altcoins such as Ethereum, BNB, and DOGE also saw price increases.
A market that continues to price in slower interest rate increases in the future is one of the most advantageous market conditions for risk-on assets, such as cryptocurrencies.
Where can you gain access to the cryptocurrency market at large?
Revix seamlessly allows you to gain investment exposure to a wide range of standalone cryptocurrencies as well as Revix’s top-performing bundles, such as the Top 10 Bundle, Smart Contract Bundle, Payments Bundle, Defi Bundle and the Inflation Shield.
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