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1. All three major U.S. stock indices closed higher, with the Dow Jones Industrial Average up 1.12%, the S&P 500 up 1.07%, and the Nasdaq up 1.37%. Salesforce rose over 4%, led by Apples nearly 4% gain. The Wind S7 Index rose 1.44%, with Facebook up over 2% and Tesla up over 1%. Chinese concept stocks generally rose, with iQiyi up over 8% and 21Vianet up about 7%. 2. All three major European stock indices closed higher, with Germanys DAX up 1.8%, Frances CAC 40 up 0.39%, and the UKs FTSE 100 up 0.52%. 3. U.S. Treasury yields fell across the board, with the 2-year Treasury yield falling 1.47 basis points to 3.451%, the 3-year down 1.67 basis points, the 5-year down 2.44 basis points, the 10-year down 3.45 basis points, and the 30-year down 3.80 basis points. 4. International precious metal futures generally closed higher, with COMEX gold futures up 3.82% at $4,374.30/oz and COMEX silver futures up 2.59% at $51.40/oz. The US government shutdown and expectations of a Federal Reserve rate cut have boosted golds safe-haven appeal. The EUs energy policy shift has heightened inflation expectations, and central banks around the world continue to increase their gold reserves. 5. The main US oil contract closed down 0.38% at $56.93/barrel, while the main Brent crude contract fell 0.57% to $60.94/barrel. 6. Most of the base metals in London rose, with LME zinc futures up 1.45% at $2,976/ton, LME lead futures up 1.22% at $1,994/ton, LME copper futures up 1.02% at $10,712.50/ton, LME tin futures up 0.75% at $35,300/ton, LME nickel futures up 0.69% at $15,230/ton and LME aluminum futures down 0.40% at $2,766.50/ton.According to the Wall Street Journal: A group of banks including JPMorgan Chase, Bank of America and Goldman Sachs are working to raise $20 billion in loans for Argentina.On October 21st, the Russian Ministry of Defense reported on the 20th that Russian forces had taken control of the Lenino settlement in the Donetsk region. Over the past day, Russian forces continued operations in multiple directions, including Sumy, Kharkiv, and Donetsk, striking targets such as energy facilities supporting the Ukrainian defense industry, drone storage sites, and temporary deployments of Ukrainian troops. Russian air defense systems shot down three guided air-to-air bombs and 129 fixed-wing drones. On the same day, the General Staff of the Ukrainian Armed Forces reported that 168 engagements had taken place in the frontline areas over the past day, with Ukrainian forces repelling Russian offensives launched from multiple directions. Ukrainian Air Force, missile units, and artillery units struck Russian personnel, weapons, and military equipment concentrations, as well as drone control points and artillery positions.On October 21st, the U.S. Senate voted on the government funding bill for the 11th time on October 20th local time, but still failed to pass it, thus continuing the U.S. government shutdown that began on October 1st. The bill was originally intended to extend government funding until November 21st, but ultimately failed to reach the 60 vote threshold required for passage with 50 votes in favor and 43 votes against.According to Japans Sankei Shimbun: Former Secretary-General of the Liberal Democratic Party of Japan Toshimitsu Motegi will serve as the head of trade negotiations.

Bitcoin Lightning Network-Based Strike Can Rival Visa – MS

Cory Russell

Apr 25, 2022 09:49

Morgan Stanley is optimistic about the bitcoin Lightning Network's potential as a consumer payment option.


They believe Strike, a Lightning Network-based payment technology, can compete with or even outperform Visa in the digital payments market.


Strike has partnered with Shopify and NCR, the world's leading supplier of point-of-sale payment solutions.


Morgan Stanley published a new analysis on the Lightning Network, bitcoin's Layer 2 fast payment system, and its potential to enable a "long-term move towards payments and settlements utilizing digital and cryptocurrencies rather than fiat currencies like the US dollar."


Morgan Stanley's positive analysis on the Lightning Network's potential for broader adoption comes after Strike, a US-based digital payments platform built on top of bitcoin's Lightning Network, announced earlier this month a new integration agreement with e-commerce giant Shopify.


Customers who paid in bitcoin will now be able to receive payments in US dollars from US Shopify businesses. Strike has announced collaborations with NCR, the world's leading supplier of point-of-sale (PoS) payment services.

Morgan Stanley Believes That Lightning Network Will Be Able to Compete With Visa

Morgan Stanley outlined why it believes Strike, a Lightning Network-based digital payment network, can compete with or perhaps exceed Visa in its recent study.


Morgan Stanley observes that "in essence, Strike is directly competing with Visa Direct, which provides real-time settlement," adding that "the primary distinction for merchants will be paid a significantly lower transaction cost."


"The customer advantage is that they may, if they choose, host their bitcoin on a private, secure network, enabling an element of secrecy connected with their transaction," the bank says.


Morgan Stanley emphasizes the importance of Strike's cooperation with NCR. "NCR software is used by one in every six PoS devices worldwide," the bank says, "so this news is important even if just a tiny percentage of retail businesses opt to add crypto capabilities."

Cons of Making Bitcoin Payments

The Morgan Stanley analysis points out some of the disadvantages of utilizing a bitcoin-based payment system, such as the cryptocurrency's underlying volatility on a day-to-day basis, which makes forecasting future buying power problematic.


Meanwhile, Morgan Stanley says that existing tax regulations, which require users to pay capital gains taxes on cryptocurrencies they sell, are a barrier to greater acceptance of bitcoin as a widely used means of exchange.


The bank, on the other hand, mentions the Virtual Currency Tax Fairness Act, which has been introduced in the US Congress. If passed, the law would exclude personal bitcoin transactions from taxation as long as the profits are less than $200.


Morgan Stanley, on the other hand, cautions that this plan may meet criticism, particularly from anti-crypto members of Congress, since it serves to establish bitcoin (and other cryptocurrencies) as credible alternatives to the US currency.


The Morgan Stanley analysis "suggests we are at the beginning of an age when more and more people may opt to pay for items using Bitcoin and cryptocurrencies over time," according to Alex Gladstein, who summarized it on Twitter.