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Crypto Industry News:
The Central Bank of the Russian Federation (CBR) launched the sandbox in 2018 as the development of financial technology and decentralized digital assets presented new challenges to regulators. Since the inception of the initiative, more than 70 entities, including financial institutions and fintech companies, have asked the regulator to test their new products, services, technologies and business models.
The recently released 2020 CBR Annual Report reveals that the bank allocated three crypto platforms to the sandbox last year. The bank has reviewed the operation of the cryptocurrency mining pool, crypto payment system and digital asset investment platform. However, no details were given on the current test results, but for the positive ones, the Bank of Russia is expected to present a roadmap for their integration.
In July, the Russian parliament passed a law providing for the introduction of special legal regimes for testing digital innovations. The central bank uses its regulatory "safe space" to study the potential effects of such projects. CBR can also outline steps that need to be taken to create the conditions for their introduction to the market.
The Bank of Russia has opposed the legalization of cryptocurrencies in the past, but has offered to allow cryptocurrency mining as long as miners sell their coins outside of Russia. With the entry into force of the Digital Financial Assets Act, digital coins are now recognized and regulated.
However, Russians cannot use cryptocurrencies for payments, government officials cannot own cryptocurrencies, and investments are limited to ordinary citizens. Earlier this year, an annual cap of 600,000 rubles (approximately $ 8,000) was introduced for investments in cryptocurrencies by "unqualified" market participants.
The central bank is currently working on the digital ruble project and is expected to present the first prototype of the CBDC platform by the end of this year. If all goes to plan, the testing phase should start in 2022. In the summer of last year, the CBR presented an updated concept of the digital ruble, after consultations with Russian financial institutions. This is to create a digital currency that would be more convenient for the banking sector.
Technical Market Outlook:
The ETH/USD pair has made a new all time high at the level of $4,204, but the Bearish Engulfing candlestick pattern was made at the top of the rally. Nevertheless, the next target for bulls is seen at the level of $4,500 as the up trend continues.The zone between the levels of $4,000 - $3, 980 will now act as a short-term demand zone. The key short-term support is seen at the level of $3,596. The momentum is strong and positive, so it supports the bullish outlook for ETH.
Weekly Pivot Points:
WR3 - $4,545
WR2 - $4,714
WR1 - $4,394
Weekly Pivot - $3,656
WS1 - $3,369
WS2 - $2,577
WS3 - $2,290
Trading Recommendations:
The longer term up trend on the Ethereum continues despite the local counter-trend corrections. The next long term target for ETH/USD is seen at the level of $5,000. The key long term technical support is seen at the level of $3,881, so only a weekly candle close below this level will invalidate the bullish scenario.
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