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Crypto Continues to Gain Steam; Bitcoin Nears $9,000 Level

Published 2019-05-28, 12:23 a/m
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Investing.com - Bitcoin continued to rise and other top cryptocurrencies also traded higher on Tuesday morning in Asia. The total market cap went up to $273.9 billion from $269.7 billion the previous day.

Bitcoin added 0.86% to $8,751.6 by 11:56 PM ET (02:56 AM GMT). The digital coin continued to gain steam and rise to this year’s high at $8,893.1 overnight, testing the $9,000 level. It has surged over 140% so far this year, or almost 70% this month.

Ethereum gained 1.52% to $270.44, XRP traded 4.89% higher to $0.4307 and Litecoin rose 2.50% to $115.735.

Cryptocurrencies start to make their way to the mainstream, and one European Central Bank (ECB) official talked of the benefits of central bank digital currencies.

These digital tokens should serve as a medium of exchange, a means of payment and a store of value, according to Vitas Vasiliauskas, a member of the Governing Council of the ECB. They should also reflect qualities of the current forms of central bank money, but not a conventional reserve account or a private crypto asset.

With central bank digital currencies, payments and securities settlements could be more efficient and counterparty credit and liquidity risks could be lower, he said.

But Vasiliauskas also warns of the risk. “The amount of cash in circulation is declining in some countries. This could mean that one day, even if it seems like a distant prospect — every single person will have to have an account with a private entity just to make payments. Unfortunately, this may lead to increased levels of financial exclusion,” he added.

In other news, a new crypto exchange backed by tech giant Yahoo (NASDAQ:AABA) Japan will go live on Thursday.

Known as Taotao, the new platform will offer trading in Bitcoin and Ethereum, then XRP, Litecoin and Bitcoin Cash later on. Yahoo Japan is said to have bought a 40-percent stake in the company last March.

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