The Financial Stability Bureau of the People's Bank of China has released a column article titled "Effectively Preventing and Resolving Financial Risks and Firmly Maintaining the Bottom Line of No Systemic Risks". The article pointed out that under the strong leadership of the Party Central Committee and the State Council, the People's Bank of China has closely focused on three tasks: serving the real economy, preventing and controlling financial risks, and deepening financial reforms. Following the basic principles of "maintaining overall stability, coordinating overall planning, implementing targeted measures, and precise dismantling", the People's Bank of China has resolutely fought against major financial risks, improved the system and mechanism for financial stability work, and orderly disposed of and resolved a number of prominent risk points that have a significant impact, urgency, and overall nature, effectively safeguarding the national economic and financial security and overall financial stability.

According to Bloomberg Intelligence senior macro strategist Mike McGlone, Bitcoin's recent price movement suggests that economic turbulence is on the horizon. McGlone believes that Bitcoin's bearish divergence against the Nasdaq 100 Stock Index may indicate a forthcoming recession.

David Duong, Coinbase's head of institutional research, has warned that macroeconomic factors could negatively impact the crypto markets in the short term. Duong cites the strength of the US dollar and the hawkish stance of central banks around the world as potential headwinds. He suggests being defensive in the short term and highlights interest rate differentials as a key factor to watch, particularly as the Federal Reserve prepares to announce its decision on interest rates. However, Duong believes that the trading environment for digital assets should improve in the second half of 2023, as the Mt. Gox settlements conclude and investors turn their attention to Bitcoin's upcoming halving.

The Russian Prosecutor-General has suggested that the central banks of Russia and China should work together on regulating their respective central bank digital currencies (CBDCs). This comes after the State Duma approved a bill allowing the Russian Central Bank to begin testing its digital ruble with 13 domestic commercial banks next month.

Recent research shows that central banks worldwide are buying gold to stay ahead of inflation, with 85 sovereign wealth funds and 57 central banks collectively managing $21 trillion. While gold has long been considered a store of value and inflation hedge, Bitcoin has outperformed it this year. In 2022, central banks made record gold purchases with net acquisitions of 1,136 tonnes, with China and Turkey being the most aggressive buyers.

A survey by the Bank for International Settlements (BIS) has found that around 15 retail central bank digital currencies (CBDCs) could be in circulation worldwide by the end of the decade. Nine central banks have also indicated that they are likely to issue a CBDC for wholesale use in financial markets within the next six years.

There is a lack of understanding about money among many people, as seen in the exaggerated concerns about central banks and digital currencies. Claims that CBDCs will be used for surveillance by the Fed are baseless, and the notion that they will become the primary currency is misguided. Money is simply an agreement on value for exchanging goods and services, and producers only accept currencies they trust. Therefore, there is no need for fear about CBDCs as the market decides which currencies are reliable.

July 4 (Cointime) - Bitcoin's critics argue that it fails to meet the textbook definition of money as a medium of exchange, unit of account, and store of value. However, the emergence of bitcoin has sparked a debate about the definition and usefulness of money.

June 16 (Cointime) - A new report has revealed that central banks have conducted a joint experiment to test ways to connect monetary authorities and the private sector to facilitate retail digital currency payments. The experiment, called "Project Rosalind," developed 33 application programming interface (API) functionalities to test more than 30 central bank digital currency (CBDC) use cases, including offline payments. The Bank of England is currently consulting on a digital pound and has said it would host the centralized ledger and the API for a potential digital pound. The experiment tested a diverse range of payment options, including online, offline, and in-store payments via interactions with QR codes, mobile phones, smart cards, and more.

The de-dollarization process, which refers to the decline of the US dollar as the world's dominant reserved currency, is gaining momentum. For more than a century, the US dollar has been the primary foreign currency held by central banks for international transactions and settling international debt. However, the dollar's dominance in countries' reserves has decreased from 70% to under 60% in the last two decades, according to the International Monetary Fund. This trend has accelerated since last year, when the US and its allies froze Russia's dollar reserve in response to its invasion of Ukraine, prompting several countries to seek alternatives to the US dollar. Some are considering creating new currencies for international trade, while others are diversifying their reserves by purchasing more gold. Bitcoin (BTC), a nascent asset with many of the characteristics of gold, may also benefit from this trend in the long run. To learn more about the causes and implications of the US dollar's decline and the assets that will benefit from it, watch the latest Cointelegraph Report on our YouTube channel and don't forget to subscribe!