Cryptocurrency Update

Morgan Stanley increases exposure to bitcoin by 105 per cent since April

Large US investment bank, Morgan Stanley, has increased its share in Grayscale Bitcoin Trust by over half since April 2021. The US Securities and Exchange Commission (SEC) reports show the Morgan Stanley Europe Opportunity Fund owned 58,116 shares in the Grayscale Bitcoin Trust as of 31 July, taking the total investment of the bank in bitcoin to around $2 million.

New Zealand looking into crypto

The New Zealand central bank is exploring the use of a digital currency that it issues, to make the most of benefits including possible use as a monetary policy tool. The Reserve Bank of New Zealand said in public documents recently that “Trends in cash use and innovation in money present an opportunity for the Reserve Bank to consider broadening central bank money to include a widely available digital form.“

“The declining use, acceptance and availability of cash in New Zealand, and emerging innovations in private money, namely stablecoins, make this an opportune time to consider a central bank digital currency (CBDC).”

The bank said a digital currency would provide individuals and businesses with the option to convert privately issued money into a digital form of central bank money, improve the tech profile of central bank money, while providing an additional monetary policy tool.

Bitcoin used to buy $500,000 car at Lloyds Auctions

A 1994 Subaru Prodrive 555 Group A World Rally Championship Car sold at Lloyds Auctions for half a million dollars and was bought using cryptocurrency at an Australian auction house. Many items have been bought via auction at Lloyds using cryptocurrency, but this was the first race car to have been purchased in this way. The car is thought to have a value of $15,000-$20,000, but sold for much more, having been driven by racing royalty Colin McRae and Carlos Sainz.