The issue of this trial is whether or not the SEC accepts cryptocurrency as a currency. If the conclusion is made in the former direction, it is highly likely that investors in virtual asset related stocks will be excited.
However, it seems difficult for stock prices to expect that the SEC will easily surrender the hegemony, and predicted that the central bank is likely to absorb the cryptocurrency market in the mid to long term.
The first trial between the US Securities and Exchange Commission (SEC) and Ripple will be held on the 22nd. It is an analysis that if cryptocurrency is recognized as a currency through this trial, not only cryptocurrencies such as bitcoin, but also related stocks are eligible.
Wizit, Woori Technology Investment, and Bident are often mentioned as domestic Bitcoin related stocks. Nasdaq-listed companies such as Kanan and The 9 Limited can also be found.
Last December, the SEC filed a lawsuit against the cryptocurrency XRP issuer Ripple. The reason was that Ripple issued unregistered securities and raised $1.3 billion. The SEC interpreted XRP as’digital securities’ rather than currency.
Park Sang-hyun, a researcher at Hi Investment & Securities said, “If the appearance of accepting ripple as a currency comes out, the credibility of cryptocurrency will increase and the trend of conversion from virtual assets to currency will accelerate,” he said. “It will certainly work positively in the stock market.”
[사진 = 한국거래소]
Cryptocurrency-related stocks are already raising ransom in anticipation. According to the Korea Exchange, as of 2:14 p.m., Bident is trading at 13,150 won, up 29.56% (3,000 won) from the previous trading day. Woori Technology Investment (18.45%) and Wizit (14.86%) are also on the rise.
This move was influenced by the fact that the bitcoin market cap exceeded $1 trillion and that global managers are actively expressing their intention to invest. On the 17th (local time), Black Rock, the world’s largest asset management company, appeared on CNBC broadcast and officialized the bitcoin investment, saying, “I started to do it (bitcoin) a little.”
However, the stock market said that it is unlikely that Ripple will have an edge over the SEC. It is pointed out that the cryptocurrency that denies the US dollar hegemony and the centralized monetary order is a huge challenge for vested interests. Cryptocurrency is based on blockchain technology, not direct transaction. Transactions are possible without central banks and other control agencies as well as intermediaries such as banks.
Researcher Park Sang-hyun said, “It will not be easy to expect results that are favorable to Ripple right away,” he said. “In the mid to long term, the central bank is highly likely to promote a manageable and controllable cryptocurrency (CBDC).”
CBDC, like private cryptocurrency, is based on the distributed storage technology of the blockchain, but is issued and guaranteed by the central bank.
It is also pointed out that it is necessary to pay attention to CBDC-related stocks whenever issues arise, such as conducting an open experiment in China’s digital renminbi, the Bank of Korea’s test distribution of digital currency in the central bank, and discussing the acceptance of digital currency in the G20.
As for CBDC-related stocks, Logisys, Hannet, KCS, Korea Electronic Finance, KCT, FreeMS, Green Technology, and Enbiogen frequently fluctuate.