Investors that trade volatility will have been busy in June trying to keep up with the rapidly accelerating policy momentum from the official sector regarding digital currency issues. Whether one looks at momentum for
2021 to date
or takes the longer time horizon going back to early 2019
or looks at only the month of June
the story is the same: significant escalation of activity levels. And because policymakers tend to speak about stablecoins as well as cryptocurrency at the same time that they address central bank digital currency issues, the net effect is that policymaking for all these issues is underway simultaneously.
PolicyScope data customers that configured their data and visualization feeds to deliver alerts have seen the momentum building throughout the month of June as well as 2021 to date regarding all central banks in the Group of Seven (except Canada), plus Hong Kong and Sweden. They will have been able to take early positions in the capital markets across a range of economic sectors as they observe central banks accelerating their efforts to create policy in this space. Drilling into the details reveals the broad spectrum of serious policy activity:
PolicyScope Platform customers with access to the underlying documents will additionally have seen precisely which of the major central banks above just concluded a major experiment testing securities settlement for a digital sovereign currency powered by blockchain technology. Hint: that central bank was in Europe. These customers currently have a significant informational advantage that supports data-driven nowcasting with superior accuracy because they can immediately access and analyze the underlying documents.
The investment options in this space are wide and varied. They extend well past payment systems and distributed ledger technology companies.
Every move central banks make regarding issuance of a digital sovereign currency holds strategic implications not just for private cryptocurrency and stablecoin issuers but also for related industries such as power generation. Because our policy risk data has been mapped to NAICS 4-digit industry sectors, it is possible to identify precisely when policy activity in the digital currency area may generate effects relevant to other sectors:
Data customers can configure alerts targeted to specific sectors as well as the combination of sectors and issues as the cryptocurrency chart above illustrates.
Powered by our alternative data, investors can take smarter decisions right now based on momentum and volatility in the policy arena.....long before the policy activity generates headline risk. For more information on our how our patented technology and data can help you tackle information overload and generate alpha based on objective, transparent data, contact us today.