Product Launch: Digital Currency Policy Volatility Signals



We were honored earlier today to speak at the Singapore Fintech Festival. We were awarded the opportunity to speak at the Banca d'Italia G20 Techsprint booth since our climate-related data and dashboard (the CRRM3 solution) was a finalist in this year's Techsprint challenge.


Our data covers more than climate finance, of course. The Singapore Fintech Festival provides an ideal opportunity to highlight how our digital currency data delivers superior insight into public policy trends regarding official sector activity in cryptocurrencies, CBDCs, stablecoins and more.

So today we launch DCVS 1 and DCVS 2: digital currency public policy volatility signals for cryptocurrency (DCVS 1) and central bank digital currency (DCVS2) policy activity.

Our recently released backtests provide the foundation for these volatility signals.

During 2019 and 2020, the backtests made clear that PolicyScope data for the "cryptocurrency" lexicon term delivered strong advance correlations with BitCoin prices. Correlations with other market prices (VIX, S&P) in relation to both cryptocurrency and CBDC were also shown.



We know that data scientists and quants seek the full time series in .csv format. But we also know that certain strategic investors seek a streamlined dataset that crystallizes a signal and provides access to the underlying verbal data.


The need for insight into public policy processes regarding digital currencies has never been greater. Competition among cryptocurrencies, stablecoins, and CBDCs will kick in to high gear next year. Cryptocurrencies are gaining critical mass adoption rates globally. Reserve currency central banks are racing to develop competing digital versions of their own sovereign currencies.


Some investors focus like a laser only on cryptocurrencies. Other strategists focus on central bank digital currencies and the companies t hat will help central banks launch their CBDCs. Finely tuned signals ensure that even obscure technical moves land squarely on your radar screen within 24 hours of officials taking action.

DCVS 1 -- Cryptocurrency Policy Volatility

Consider DCVS 1 your secret decoder ring that gives you advanced insights into reaction functions globally. How fast and how wide will the regulatory perimeter extend to private issuers? When will officials in one jurisdiction start copying (or competing with) actions in other countries? What are international policymakers doing?


One number delivered daily to you -- the DCVS 1 signal -- tells you how much activity is underway in any give 24 hour period. The underlying documents tell you (if you read the PDFs) or your bots (if you take the verbal data in machine-readable format) what is going on...without any embedded bias, opinion, or gloss. Just the facts.

DCVS 2 -- Central Bank Digital Currency Policy Volatility

CBDCs represent the other side of the digital currency coin, of course. Few issuances will move markets more than those involving reserve currencies. The euro. The yen. The dollar. The moves will impact FX markets for underlying currencies even as they move competing cryptocurrency markets.


This policy areas consequently moves more slowly. It generates relatively little media coverage compared with cryptocurrencies. Those using the DCVS 2 signals will see momentum building and sooner and more clearly than the rest of the market that tends to focus on headlines and newsletters.

Delivery Via API, Both Quantitative and Verbal Data

Both DCVS 1 and DCVS 2 are available via API effective immediately. The two datasets can be combined. If sufficient demand exists, we may even create DCVS 3 covering stablecoin policy. Customers can choose to receive quantitative data only, or they can choose also to receive the underlying verbal data for either human readers (PDFs) or machine readers.

 

About BCMstrategy, Inc. We use 9+ layers of patented analytical automation to quantify momentum in the global public policy cycle daily. The resulting multivariate time series data anticipates market volatility and delivers superior insight into public policy momentum using objective, transparent data that eliminate public policy blindspots.