Home / Bitcoin News /Fluid Finance Proposes To Integrate The DAI Decentralized Stablecoin Directly Into The Traditional Financial System

Fluid Finance Proposes To Integrate The DAI Decentralized Stablecoin Directly Into The Traditional Financial System

23 Jan 2023

As investors examine the next move of the Federal Reserve, analysts, economists and market participants are also closely monitoring inflation levels. In Dec. 2022, the annual inflation rate dropped to 6.5%, and many experts predict it will decrease further. However, economist Mohamed El-Erian of the University of Cambridge believes inflation will become “sticky” in midyear, around 4%. The central bank, on the other hand, is primarily focused on reducing inflation to 2%.

Members of the Federal Reserve, including its 16th chair, Jerome Powell, have frequently stated that the bank’s goal is to bring inflation down to 2%. Powell has emphasized that the Federal Open Market Committee’s (FOMC) “overarching focus right now is to bring inflation back down to our 2% goal.” To tame inflation, the central bank has used its monetary tightening policy and interest rate hikes. So far, the Fed has raised rates seven times in a row since last year, with increases happening on a monthly basis.

Inflation in the U.S. has decreased since approaching double digits in October and November 2022. At that time, economist and gold enthusiast Peter Schiff stated that “America’s days of sub-2% inflation are gone.” At the 2023 World Economic Forum event in Davos, last week, JLL CEO Christian Ulbrich told the Financial Times that his peers are starting to say that 5% will be the new 2%. “Inflation will persistently remain around 5%,” Ulbrich said to the FT reporters. Mohamed El-Erian, president of Queens’ College at the University of Cambridge, explained on January 17 that inflation may become “sticky” around the 4% range.

“Stocks and bonds are off to an exuberant start to 2023, but there is still plenty of uncertainty about the world’s growth, inflation and policy prospects,” El-Erian wrote in an op-ed article published on Bloomberg. “The improvement in U.S. growth prospects is being accompanied by a depletion of savings, which had benefited from the considerable fiscal transfers to households during the pandemic, and an increase in indebtedness,” the economist added.

El-Erian further noted that the value of bitcoin (BTC) has undergone a notable appreciation this year, and he attributes this to investors becoming more accepting of relaxed financial constraints and an increase in risk-taking attitudes. “Bitcoin is up some 25% so far this year thanks to looser financial conditions and larger risk appetites,” the economist wrote.

While the Federal Reserve aims to bring inflation back down to the 2% range, and some predict the inflation rate will decrease to 2.7% this year and 2.3% in 2024, El-Erian anticipates an adhering predicament around the 4% range. “Increasing wage pressure” is driving this change, El-Erian emphasized.

“This transition is particularly noteworthy because inflationary pressures are now less sensitive to central bank policy action,” the economist wrote. “The result could well be more sticky inflation at around double the level of central banks’ current inflation target.”

Will inflation become “sticky” around 4%, as economist El-Erian suggests? Share your thoughts in the comments below.

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Ripple CEO: SEC Lawsuit Over XRP 'Has Gone Exceedingly Well'

The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.

As investors examine the next move of the Federal Reserve, analysts, economists and market participants are also closely monitoring inflation levels. In Dec. 2022, the annual inflation rate dropped to 6.5%, and many experts predict it will decrease further. However, economist Mohamed El-Erian of the University of Cambridge believes inflation will become “sticky” in midyear, around 4%. The central bank, on the other hand, is primarily focused on reducing inflation to 2%.

Members of the Federal Reserve, including its 16th chair, Jerome Powell, have frequently stated that the bank’s goal is to bring inflation down to 2%. Powell has emphasized that the Federal Open Market Committee’s (FOMC) “overarching focus right now is to bring inflation back down to our 2% goal.” To tame inflation, the central bank has used its monetary tightening policy and interest rate hikes. So far, the Fed has raised rates seven times in a row since last year, with increases happening on a monthly basis.

Inflation in the U.S. has decreased since approaching double digits in October and November 2022. At that time, economist and gold enthusiast Peter Schiff stated that “America’s days of sub-2% inflation are gone.” At the 2023 World Economic Forum event in Davos, last week, JLL CEO Christian Ulbrich told the Financial Times that his peers are starting to say that 5% will be the new 2%. “Inflation will persistently remain around 5%,” Ulbrich said to the FT reporters. Mohamed El-Erian, president of Queens’ College at the University of Cambridge, explained on January 17 that inflation may become “sticky” around the 4% range.

“Stocks and bonds are off to an exuberant start to 2023, but there is still plenty of uncertainty about the world’s growth, inflation and policy prospects,” El-Erian wrote in an op-ed article published on Bloomberg. “The improvement in U.S. growth prospects is being accompanied by a depletion of savings, which had benefited from the considerable fiscal transfers to households during the pandemic, and an increase in indebtedness,” the economist added.

El-Erian further noted that the value of bitcoin (BTC) has undergone a notable appreciation this year, and he attributes this to investors becoming more accepting of relaxed financial constraints and an increase in risk-taking attitudes. “Bitcoin is up some 25% so far this year thanks to looser financial conditions and larger risk appetites,” the economist wrote.

While the Federal Reserve aims to bring inflation back down to the 2% range, and some predict the inflation rate will decrease to 2.7% this year and 2.3% in 2024, El-Erian anticipates an adhering predicament around the 4% range. “Increasing wage pressure” is driving this change, El-Erian emphasized.

“This transition is particularly noteworthy because inflationary pressures are now less sensitive to central bank policy action,” the economist wrote. “The result could well be more sticky inflation at around double the level of central banks’ current inflation target.”

Will inflation become “sticky” around 4%, as economist El-Erian suggests? Share your thoughts in the comments below.

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Ripple CEO: SEC Lawsuit Over XRP 'Has Gone Exceedingly Well'

The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.

Xrp moved to a multi-month high on Jan. 23, as market optimism grew regarding a lawsuit between Ripple and the United States Securities and Exchange Commission (SEC). Following comments last week from Ripple CEO Brad Garlinghouse, many have bought the token in anticipation of the lawsuit ending in the coming months. Dogecoin was another notable gainer on Monday.

XRP, formerly ripple, was one of Monday’s notable gainers, as the token rose to a three-month high in today’s session.

XRP/USD hit an intraday high of $0.431 to start the week, coming off the back of Sunday’s low at $0.3979.

As a result of today’s surge in price, XRP has risen to its strongest point since November 8.

Looking at the chart, the move took place following a breakout of a ceiling at the $0.410 resistance level.

As of writing, XRP is still trading above this point, however earlier gains have eased, with price now at $0.420.

Momentum has eased, with traders seemingly securing gains as the 14-day relative strength index (RSI), which is tracking at 68.64, nears a ceiling at 69.00.

In addition to XRP, dogecoin (DOGE) started the week stronger, with the meme coin hovering close to a key resistance level.

Following a low of $0.0861 on Sunday, DOGE/USD raced to an intraday peak of $0.09289 earlier today.

This surge saw dogecoin briefly break out of a resistance point at $0.09200, closing in on a six-week high in the process.

As can be seen on the chart, this breakout was not sustained, with the meme coin now trading below $0.09000.

One of the reasons behind the afternoon’s decline is the fact that price strength has encountered a hurdle of its own.

Currently the RSI is tracking at 63.51, which is slightly below a ceiling at the 64.00 mark, and seems to have panicked earlier bulls.

Register your email here to get weekly price analysis updates sent to your inbox:

Tags in this story
Analysis, Doge, dogecoin, Meme Coin, Ripple, XRP

Do you expect dogecoin to move beyond this resistance level this week? Let us know your thoughts in the comments.

Eliman brings an eclectic point of view to market analysis. He was previously a brokerage director and online trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days

Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.

Xrp moved to a multi-month high on Jan. 23, as market optimism grew regarding a lawsuit between Ripple and the United States Securities and Exchange Commission (SEC). Following comments last week from Ripple CEO Brad Garlinghouse, many have bought the token in anticipation of the lawsuit ending in the coming months. Dogecoin was another notable gainer on Monday.

XRP, formerly ripple, was one of Monday’s notable gainers, as the token rose to a three-month high in today’s session.

XRP/USD hit an intraday high of $0.431 to start the week, coming off the back of Sunday’s low at $0.3979.

As a result of today’s surge in price, XRP has risen to its strongest point since November 8.

Looking at the chart, the move took place following a breakout of a ceiling at the $0.410 resistance level.

As of writing, XRP is still trading above this point, however earlier gains have eased, with price now at $0.420.

Momentum has eased, with traders seemingly securing gains as the 14-day relative strength index (RSI), which is tracking at 68.64, nears a ceiling at 69.00.

In addition to XRP, dogecoin (DOGE) started the week stronger, with the meme coin hovering close to a key resistance level.

Following a low of $0.0861 on Sunday, DOGE/USD raced to an intraday peak of $0.09289 earlier today.

This surge saw dogecoin briefly break out of a resistance point at $0.09200, closing in on a six-week high in the process.

As can be seen on the chart, this breakout was not sustained, with the meme coin now trading below $0.09000.

One of the reasons behind the afternoon’s decline is the fact that price strength has encountered a hurdle of its own.

Currently the RSI is tracking at 63.51, which is slightly below a ceiling at the 64.00 mark, and seems to have panicked earlier bulls.

Register your email here to get weekly price analysis updates sent to your inbox:

Tags in this story
Analysis, Doge, dogecoin, Meme Coin, Ripple, XRP

Do you expect dogecoin to move beyond this resistance level this week? Let us know your thoughts in the comments.

Eliman brings an eclectic point of view to market analysis. He was previously a brokerage director and online trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days

Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.

PRESS RELEASE. Fluid Finance submitted a proposal to integrate the DAI decentralized stablecoin directly into the traditional financial system. It would be the first time that a stablecoin could be purchased directly from a bank account.

Jessica Walker at Fluid said: “One of the problems with crypto is the lack of connection to the real world. Fluid solves that by integrating Dai directly into our accounts. Users can buy Dai directly from us using dollars, euros, pounds and dozens of other currencies. Dai holders can also now buy coffee on their Fluid Cards, which operate on the Mastercard network”.

Fluid offers traditional bank accounts in Europe and the UK and Fluid Accounts, which are open to anyone globally. Users can connect their Web3 wallets to these accounts, for a seamless TradFi – DeFi experience. “Gone are the days of having to go through an exchange,” – said Walker.

“Our main motivation was to offer an alternative to money transmitters, who charge exorbitant fees,” said Tina Bielowski. “We use Dai as part of our payment rails, together with integrations into the traditional system, and the end result is that the world’s poorest get a better deal. Even better, since the money is delivered directly to the user’s phone, it allows vulnerable people to have control of their financial life.”

Fluid’s own digital money provides the integration solution missing for so long in the crypto world. When combined with Dai, Fluid’s offer is intended to connect the two world and removes barriers to adoption.

Fluid’s detailed proposal can be seen here: https://forum.makerdao.com/t/mip99-offer-dai-to-cefi-projects-to-enable-real-world-use-cases/19466

https://github.com/makerdao/mips/pull/768

More details

Fluid enables Dai holders to off-ramp from crypto to a bank account (or Fluid Account) in less than a minute. Holders can also spend their Dai on their Fluid Cards, which run on the Mastercard network. These cards are available to anyone, globally.

See these on YouTube here: https://bit.ly/3XfExEG.

 

 

This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Bitcoin.com is the premier source for everything crypto-related. Contact the Media team on [email protected] to talk about press releases, sponsored posts, podcasts and other options.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals

A bitcoin ATM operator has been indicted in New York for running an illegal business "marketed towards individuals engaged in criminal activity." The district attorney in charge described: "Robert Taylor allegedly went to great lengths to keep his bitcoin kiosk ... read more.

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