Fed Governor Notes Fading Crypto Euphoria; Chinese Exchanges Tighten Rules; Senators Query UAE Stake in WLFI

Federal Reserve research paper states that prediction markets have significant analytical value

The latest paper by Federal Reserve researchers highly praises the role of prediction markets in economic analysis, specifically highlighting that the prediction platform Kalshi surpasses traditional methods in interest rate and CPI forecasts, and provides continuously updated probability distributions. The study notes that Kalshi's predictions are fully consistent with actual outcomes and emphasizes the unique value of retail investor participation in information aggregation.

Fed President: Crypto Is Useless - U.Today

Minneapolis Fed President Neel Kashkari labeled cryptocurrency as "useless," expressing concerns about stablecoins' potential impact on traditional finance. He emphasized the challenges of converting digital assets into fiat currency and urged thorough questioning of crypto advocates' claims.

Federal Reserve's Kashkari: Waller is fully qualified to serve as Federal Reserve Chair

Minneapolis Federal Reserve President Kashkari says Waller is qualified to serve as Federal Reserve Chair and looks forward to further discussions. Although the White House officially nominated Waller, his nomination probability has dropped to 95%, while Judy Shelton's nomination probability has increased to 4-5%. Experts believe that even if Waller is not nominated, Shelton is unlikely to become a potential candidate.

The President of the German Federal Bank hopes to launch a stablecoin pegged to the euro to prevent dollarization.

European Central Bank's Nagel pointed out that euro-denominated stablecoins can reduce cross-border payment costs and address the risks posed by dollar stablecoins. He emphasized that if dollar stablecoins replace domestic currencies, it could weaken the effectiveness of monetary policy. Currently, the European Central Bank is evaluating distributed ledger technology and plans to launch the digital euro in 2029.

FOMC Minutes Hint at a Possible Rate Hike, Trouble For the Crypto Market?

FOMC minutes suggest a potential rate hike despite inflation dropping to 2.40%. The current federal rate is unchanged at 3.50%-3.75%, while the crypto market lost 1.55% in value amid concerns over investor appetite.

Federal Reserve researchers say Kalshi data can provide real-time insights for policy making

A paper by three Federal Reserve researchers suggests that data from the prediction market platform Kalshi can more promptly reflect macroeconomic expectations and recommends incorporating it into the Federal Reserve's decision-making framework. This data responds quickly after major policy and economic data releases, but the paper does not represent an official policy stance.