Satoshi’s Last Emails: ‘Make It About the Open-Source Project,’ Economist Predicts ‘Catastrophic’ Fall in US Living Standard, FRC Shares Plummet, and More — Week in Review

Another week has passed in the world of crypto and finance, with the anniversary of Bitcoin creator Satoshi Nakamoto’s last known emails, predictions of massive declines in Americans’ standard of living, and important developments at the struggling First Republic Bank. All this and more just below, in the latest Bitcoin.com News Week in Review.

The Elusive Satoshi Nakamoto: Last Emails Reveal Bitcoin Creator’s Thoughts Before Disappearing Over a Decade Ago

Twelve years ago, on this very day of April 23, 2011, a cryptic individual, known only as Satoshi Nakamoto, penned one of the final correspondences to software developer Mike Hearn. The elusive mastermind behind Bitcoin conveyed in the message that he, she, or they had “moved on to other things” and confidently asserted that the project was entrusted in “good hands.”

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Economist Warns of ‘Catastrophic’ Fall in American Living Standard — Elon Musk Weighs in on De-Dollarization, US Dollar Weaponization

Economist Peter St Onge has warned that U.S. dollar weaponization will lead to “soaring inflation, a catastrophic fallen American standard of living, and a U.S. that falls off the world stage.” Commenting on the economist’s warnings, Tesla and Twitter CEO Elon Musk weighed in on de-dollarization.

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US Banking Industry Still Struggling as First Republic Bank Shares Plummet by Over 30%

In the midst of a tumultuous week, First Republic Bank is struggling to regain its footing in the financial world. Reports have surfaced that the bank is poised to enter government receivership due to a massive outflow of $100 billion in customer withdrawals last month. This has prompted investors to flee the bank, causing its shares to dive-bomb by over 50% on Tuesday.

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Gold Bug Peter Schiff Warns ‘Death Blow’ Coming for US Dollar — USD to Lose Reserve Currency Status

Economist Peter Schiff has warned that a death blow is coming for the U.S. dollar and the USD will lose its global reserve currency status in this financial crisis. “People are still reluctant to call it a financial crisis, but that’s exactly what it is, except it’s bigger in scale and it’s going to be far more impactful than the 2008 crisis,” Schiff stressed.

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What are your thoughts on this week’s hottest stories from Bitcoin.com News? Be sure to let us know in the comments section below.

from Bitcoin News

Zimbabwe’s De-Dollarization: Central Bank to Issue Gold-Backed Digital Currency in Early May

The Reserve Bank of Zimbabwe (RBZ) has said it will start issuing gold-backed digital tokens on May 8. The first phase of the launch will see the digital tokens being issued for “investment purposes with a vesting period of 180 days.” The RBZ also revealed that the gold-backed digital tokens “would be used both as a means of payment and a store of value.”

Gold-Backed Tokens Additional Value-Preserving Instruments

According to the Zimbabwean central bank, it plans to start issuing the recently mooted gold-backed digital currency on May 8. The digital currency, which will be backed by the gold held at the Reserve Bank of Zimbabwe (RBZ), is expected to complement the physical gold coins that went into circulation in July 2022.

The announcement of the digital currency’s issuance date came just a few days after the central bank governor, John Mangudya, was quoted revealing the RBZ’s intention to fight local currency depreciation with gold-backed digital currency. Also, as reported by Bitcoin.com News, Zimbabwe’s central bank hopes to curb the local demand for the greenback with the soon-to-be-launched digital currency.

However, in a statement issued on April 28, the RBZ governor revealed that the issuance of the gold-backed digital tokens “is meant to expand the value-preserving instruments available in the economy.” The gold-backed tokens are also intended to “enhance divisibility of the investment instruments and widen their access and usage by the public.”

Gold-Backed Digital Currency as a Store of Value

As per the statement, the issuance of the digital currency will be split into two phases. The first phase will see the digital tokens being issued for “investment purposes with a vesting period of 180 days.” According to the RBZ, the gold-backed tokens will be redeemed in the same way as physical gold coins are redeemed. Prospective buyers can acquire digital tokens using local or foreign currency, the statement added.

The RBZ also suggested that current holders of the Mosi-oa-Tunya gold coins will be able to acquire the digital coins using the local banking system.

Under the second phase, residents with digital tokens held in e-wallets or cards will be able to use such funds to settle transactions.

“The gold-backed digital tokens held in either e-gold wallets or e-gold cards will be tradable and capable of facilitating Person-to-Person (P2P) and Person-to-Business (P2B) transactions and settlements. It, therefore, means that the gold-backed digital tokens would be used both as a means of payment and a store of value,” the RBZ said in the statement.

Meanwhile, Fadzayi Mahere, the spokesperson of Zimbabwe’s main opposition party, warned in a tweet that the RBZ’s gold-backed digital currency initiative could be illegal.

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from Bitcoin News

US Senator Ted Cruz: ‘I Like BTC for the Same Reason the Chinese Communist Govt Doesn’t Like BTC’

United States Senator Ted Cruz has said he remains “incredibly bullish on bitcoin” which he described as the “alpha in the crypto sphere.” According to Cruz, people are attracted to bitcoin because they see it as a hedge against inflation and also as an “important check” against government spending.

Bitcoin Is Still the ‘Most Dominant’

United States Senator Ted Cruz has said he is “incredibly bullish on bitcoin” and he still believes the “insight that led to its creation is still extraordinary.” In his remarks at an event organized by the Bitcoin Policy Institute, Cruz insisted bitcoin is the “alpha in the crypto sphere” because it came first and “is the most dominant one.”

The remarks by Cruz, a Republican from Texas, came at a time when the Biden administration has upped the ante in its fight against the crypto industry. As has been reported by Bitcoin.com News since the start of 2023, U.S. officials and agencies have targeted crypto entities as part of the so-called Operation Chokepoint 2.0. The Securities and Exchange Commission (SEC) charges have ranged from illegally selling securities to American citizens to promoting these without the requisite permissions.

"I am incredibly bullish on #Bitcoin.” – Senator @TedCruz pic.twitter.com/595jRKSwna

— Michael Saylor⚡️ (@saylor) April 27, 2023

In response to the crackdown which is being spearheaded by the SEC, Republican senators including Cruz have slammed the regulatory body’s chairperson Gary Gensler. Others like the pro-crypto U.S. Senator Tom Emmer claimed that Gensler’s actions are “pushing innovation into the hands of a communist country.” Senator Cynthia Lummis, a BTC advocate and investor, also voiced her displeasure with the SEC’s crypto regulation approach.

BTC a Hedge Against Inflation

Meanwhile, in his address at the Bitcoin Policy Institute event, Cruz explained why he and many others are attracted to bitcoin.

“One of the attractions to bitcoin is as a hedge against inflation and particularly when you have irresponsible politicians in Washington that spend money like drunken sailors,” Cruz said.

Cruz added that the printing of trillions of dollars over the past two years had led to what he described as “significant inflation.” According to Cruz, since BTC is less “susceptible to government control” it can therefore act as an “important check” against wasting government spending.

The Texas Senator also claimed that he likes BTC for the “same reason that the Chinese Communist government doesn’t like bitcoin.”

What are your thoughts on this story? Let us know what you think in the comments section below.

from Bitcoin News

Paypal Upgrades Crypto Services to 60 Million Venmo Users, Allowing Transfers to External Wallets and Exchanges

After the American financial technology giant Paypal rolled out crypto payments last year, the company is now introducing cryptocurrency transfer services to Venmo users. The firm detailed that Venmo customers will be able to send funds to an existing Paypal account, an external wallet, or a crypto exchange platform.

Venmo Customers Can Now Transfer Cryptocurrency to Paypal Users, External Accounts, and Exchanges

On April 28, the payments services company Paypal announced that Venmo’s 60 million customers can now enjoy cryptocurrency transfers. The rollout follows Paypal’s crypto transfer launch last summer after initially introducing the product without the ability to transfer to external accounts. Similarly, up until now, Venmo only allowed its customers to buy, hold, and sell after integrating crypto in 2021.

“Crypto transfers will be rolling out to Venmo customers over the coming weeks starting in May 2023,” Paypal said on Friday.

In a bid to gather more insights into the behavior of its clientele, Paypal conducted a survey of Venmo customers. The findings revealed that a considerable number of individuals are now flocking to Venmo to better manage their cryptocurrency. More than half of Venmo’s crypto customers elected to use the firm’s crypto services. 74% of Venmo’s crypto customers opted to leave their investments in their Venmo accounts.

During the first quarter of 2023, almost 50% of Venmo customers who already possessed cryptocurrency balances chose to expand their portfolios by acquiring additional digital assets through Venmo. Paypal issued guidelines detailing the process of transferring crypto, along with a blog post on the topic.

The company emphasized that crypto transfers cannot be undone or reversed and urged customers to verify the recipient’s details by carefully inspecting the destination address. Moreover, Venmo cardholders can take advantage of incentives that offer cashback in the form of crypto assets and receive price alerts about fluctuations in crypto values.

What are your thoughts on Paypal’s move to offer cryptocurrency transfer services to Venmo users? Do you believe this will make it easier for more people to invest in digital assets? Share your views in the comments section below.

from Bitcoin News

Bitcoin Network Hits 75% Progress Towards Next Reward Halving

At 11:06 a.m. Eastern Time (ET) on April 29, 2023, at block height 787,500, the number of blocks left to discover until the next Bitcoin blockchain halving is now fewer than 52,500 blocks. This means the network has progressed 75% through the 210,000-block halving cycle, which will ultimately result in a reduction of the block reward from 6.25 bitcoins per block to 3.125 bitcoins per block.

Bitcoin Halving Countdown: Fewer Than 52,500 Blocks Left to Discover

On Saturday morning (ET), the Bitcoin network progressed 75% of the way toward the next block reward halving, with fewer than 52,500 blocks left to discover until the event occurs. This milestone marks another step in the ongoing evolution of the Bitcoin network as it progresses toward its eventual maximum supply of 21 million bitcoins. The Bitcoin blockchain halves its block reward every 210,000 blocks, which occurs roughly every four years.

▓▓▓▓▓▓▓▓▓▓▓▓░░░ 75%

365 days and 52503 blocks left

$29385 per #bitcoin

— Progress Until Next Halving (@btc_halving) April 29, 2023

Bitcoin has recorded three halvings so far, with the first taking place on Nov. 28, 2012. Prior to that date, Bitcoin miners received 50 BTC per block discovered, and after the first halving, it was cut to 25 BTC. The second halving occurred on July 9, 2016, cutting the block subsidy down to 12.5 BTC, and the third took place on May 11, 2020, slashing the reward down to the current 6.25 bitcoins per block.

We are 75% through this Halving cycle as of block 787,500!#Bitcoin pic.twitter.com/qtGq7L5TgW

— Clark Moody (@clarkmoody) April 29, 2023

The 75% progress mark happened at block height 787,500, and at the time of writing, there are 52,465 blocks left to discover until the halving. Bitcoin’s halving is expected to occur on or around April 22, 2024, while other estimates vary by a few days. With 6.25 bitcoins per block today, Bitcoin’s inflation rate per year is 1.71%, but after the next halving, it is expected to be 0.84%. Statistics show that roughly 900 bitcoins are generated per day, and at the current BTC exchange rate, miners accrue roughly $26,335,800 per day.

The next proof-of-work (PoW) blockchain to experience a reward cut will be the Dash network, but the fraction removed is a reduction and not an official halving. The Dash reward reduction will occur in less than 53 days from now. Litecoin (LTC), on the other hand, will experience a reward halving in less than 95 days from now. The LTC network will see its reward halved from 12.5 LTC to 6.25 LTC on or around Aug. 3, 2023.

What do you think the impact of the Bitcoin halving will be on the overall cryptocurrency market? Share your thoughts in the comments section below.

from Bitcoin News

Netflix Star Driving Bitcoin Adoption With Porsche Flying El Salvador Flag

Scottish-Salvadoran driver Sebastian Melrose has made his debut in the Porsche Carrera Cup racing championship. The 25-year-old, who took part in a popular Netflix TV series last year, drives a Bitcoin-branded 911 that features the flag of crypto-friendly El Salvador on its rooftop.

Bitcoin Racing Team Joins Porsche Carrera Cup With Netflix Celebrity in the Car

British racing team Bitcoin Racing has joined the Porsche Carrera Cup together with Richardson Racing, not only to win prizes in one of the U.K.’s biggest racing championships but also to promote crypto. The tandem hired a newcomer to the series, Scottish-Salvadoran driver Sebastian Melrose, who debuted last weekend at the Donington Park circuit.

Melrose, who owes a great deal of his fame to his participation in the “Too Hot to Handle” dating game show on Netflix, sat behind the wheel of a “Bitcoin Porsche,” a 500-horsepower 911 GT3 that is sporting the bitcoin logo on its door panels, and on its roof, the flag of El Salvador, the Latin American nation spearheading crypto adoption as legal tender in the world.

Good morning #bitcoin! As we race in the UK’s most popular motorsport package, we’re excited to use this platform to spread positivity and education about the power of bitcoin. Let’s come together to share the beauty of bitcoin and the amazing things happening in El Salvador pic.twitter.com/yHKxw7ANVv

— BitcoinRacing (@bitcoin_racing) April 25, 2023

The racing team has embarked on acquainting a wider audience with cryptocurrency through automotive sport and has been endorsed by El Salvador for that initiative. It expressed its intentions on social media earlier this month.

“Bitcoin Racing is proud to announce that we’ll be driving bitcoin adoption in the Porsche Carrera Cup GB, and we’re doing it with the help of our Salvadoran driver and Netflix star, Seb Melrose … As a team, we believe in the power of bitcoin, and we’re using the Porsche championship to promote its adoption,” the team said in a series of tweets.

The championship consists of eight race weekends across the United Kingdom and is aired live on ITV. “With a TV audience of 2.2 million and over 400,000 live spectators per season, we’re taking the message of bitcoin to millions outside of the sector,” Bitcoin Racing stated.

“This mission, to accelerate bitcoin adoption, will be amplified by our pilot Sebastian, who has almost 1 million followers,” the team elaborated, adding that it’s also proud to be promoting El Salvador with the hope of improving the perception of the country.

“I’m super excited and really motivated to be entering the Porsche Carrera Cup GB this season with Bitcoin Racing powered by Richardson Racing,” Melrose was quoted as saying. Richardson Racing will take care of the technical and mechanical maintenance of his car, which is last season’s winner.

Do you think auto racing sports have the potential to support wider cryptocurrency adoption? Tell us in the comments section below.

from Bitcoin News

Report: Kenya to Start Levying Tax on Revenue Earned by Crypto Exchanges

According to regulations published by the country’s treasury secretary, global crypto exchanges used by Kenya’s estimated 4 million users will start paying a 1.5% tax on revenues earned.

Tax-Avoiding Digital Asset Platforms

The Kenyan Treasury has said it will start levying taxes on revenues earned by cryptocurrency exchanges used by an estimated 4 million local residents. According to a report by Business Daily Africa, Kenyan authorities will rely on the 1.5% digital tax service that became effective on Jan.1, 2021.

Initially proposed in 2020, the digital tax is the Kenyan government’s attempt to extract revenue from leading crypto exchanges and tax-avoiding digital asset platforms. As reported by Bitcoin.com News in early January 2021, the Kenya Revenue Authority (KRA) said it expected to get $45.5 million (5 billion Kenyan shillings) from the tax.

Meanwhile, as shown in the 2023 regulations’ value added tax (electronic, internet and digital marketplace supply) published by Treasury Cabinet Secretary Njuguna Ndung’u, Kenya can now target global crypto exchanges.

“For the purposes of these Regulations, a taxable electronic, Internet or digital marketplace supply include…facilitation of online payment for, exchange or transfer of digital assets excluding services exempted under the Act,” the published regulations state.

Alongside Nigeria and South Africa, Kenya has one of Africa’s highest proportions of the population owning crypto. However, like its peers on the continent, Kenya has not recognized cryptocurrencies. The Central Bank of Kenya (CBK) and its governor have warned residents against dealing with crypto assets like bitcoin.

Despite the warnings, Kenyan residents continue to acquire and trade cryptocurrencies and this has prompted the government to seek ways to levy taxes on crypto transactions.

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from Bitcoin News

Almost 50 Russian Banks Accept Yuan Deposits Amid Low Demand for Dollar Accounts

A growing number of banking institutions in Russia are offering customers the option to save in Chinese yuan. The trend coincides with declining demand for U.S. dollar and euro deposits amid currency restrictions that triggered a flight of funds to bank accounts abroad.

Demand for Dollar, Euro Accounts Expected to Drop Further, Requests for Yuan Deposits Surge in Russia

Fewer Russians want to open local bank accounts in major Western currencies amid restrictions on what they can do with their money. Data from the Bank of Russia shows that about half of all foreign currency savings in Russian banks have been transferred to foreign bank accounts in 2022, and interest in new deposits has noticeably dropped, the daily Izvestia wrote in an article.

A “massive decline” in demand for deposits in U.S. dollars and euros is to be expected, according to Anna Romanenko, director of communications at the financial marketplace Vbr.ru. The number of banks supporting deposits in these foreign currencies has decreased as well, the expert pointed out. At present, no more than three dozen lenders open such accounts.

“According to our data, by January of this year, the number of online requests for deposits in dollars and euros reached a minimum for the past two years,” Romanenko noted. And while due to the weakening of the ruble in March, interest in the dollar temporarily increased, demand for the euro is “still minimal,” she detailed.

Interest in Dollar and Euro Accounts to Continue to Fall if Currency Restrictions Are Extended

Among the reasons for this trend is the $10,000 cap on withdrawals which was in place until Sept. 9, 2022. Besides, Russians can withdraw dollars only if they were deposited to their accounts before March 9, 2022 while any newly credited amounts must be converted to Russian rubles before withdrawal. “If the restrictions are extended, interest in such deposits will continue to fall,” Romanenko is convinced.

At the same time, the expert believes an increase in demand for the Chinese yuan, as an alternative foreign currency, can be expected. Anna Romanenko highlighted that 49 banks in the Russian Federation already have such offerings.

“Since March, we have seen a surge in demand for the yuan — interest in the Chinese currency has tripled in a month and continues to increase by 15–20% weekly. The attractiveness of the terms is increasing, too — you can already find deposits with a rate of up to 3%,” she elaborated.

Reports in March revealed that the yuan has replaced the euro in the top three currencies preferred by Russians for their savings. According to a study by the Finam financial portal, 17% of private individuals held the Chinese fiat and 8% had European money, while over a third chose the ruble.

Do you think the popularity of Chinese yuan deposits will continue to grow in Russia? Tell us in the comments section below.

from Bitcoin News

Argentina to Settle Chinese Imports in Yuan to Safeguard Dwindling Dollar Reserves

The economy minister of Argentina, Sergio Massa, announced that starting this month, payments for imports coming from China will be settled using the Chinese yuan. The agreement, which will allow the country to safeguard its dwindling dollar reserves, involves the disbursement of more than $1 billion in April.

Argentina to Settle Bilateral Transactions With China in Chinese Yuan

Argentina, one of the big three economies in Latin America, will use the Chinese yuan to pay for certain imports. According to statements from Argentine Economy Minister Sergio Massa, the country will begin settling payments for Chinese imports using the Chinese yuan, in the context of saving the scarce dollars that the country still has left.

The agreement is perceived by analysts as a positive pact for the nations, as China deepens the penetration and usage of the Chinese yuan in Latam, and Argentina manages to leverage $5 billion of the “swap” reserve that was approved between Argentine President Alfredo Fernandez and Chinese President Xi Jinping, solidified in a bilateral meeting which took place at the 17th G20 summit back in 2022.

China is currently Argentina’s international partner, and this move will ostensibly allow the country to lessen the weight of imports on the weakened state of Argentine reserves. Just for April, there are already $1.07 billion in imports that will be settled with the Chinese yuan, and $0.8 billion are already set to be paid in the same way in May.

Argentine Crisis and Reactions

The Chinese concession given to Argentina by Chinese President Xi Jinping allows the central bank to focus its attention on the devaluation and inflation spiral Argentina is currently experiencing by injecting resources to stabilize its fiat exchange rate, which reached record lows last week against the U.S. dollar.

Massa also stated that using the Chinese yuan will serve to disarm a corruption scheme that justified using Uruguay as a bridge for the payment of Chinese imported goods in dollars. In this regard, he stated:

This swap in the guarantee of continuing to produce with intermediate goods from China, avoiding the triangulation detected — which was somehow used to pay more for what Argentina imported, than what (the intermediary) bought cheaper.

The measure generated mostly positive reactions from the main Small and Medium Enterprise (SME) associations according to Argentine news agency Telam. Leo Bilanski, president of ENAC, one of these organizations, said operating using the Chinese yuan presented several advantages. He explained:

Being able to operate in the national currency of both countries makes trade transparent and boosts, for SMEs, foreign trade operations within a framework of dollar restrictions and financial speculation with the illegal dollar.

What do you think about the shift to the Chinese yuan that Argentina is executing to settle bilateral transactions with China? Tell us in the comment section below.

from Bitcoin News

Brazil Bans Telegram Temporarily Due to Alleged Lack of Collaboration in Fight Against School Violence

A federal judge in Brazil has ordered the temporary suspension of Telegram in the country and established hefty fines due to the supposed lack of collaboration of the company in a national crusade against school violence. Telegram failed to deliver information regarding the actions it is taking against neo-Nazi groups, and now it has been blocked by most internet providers in Brazil.

Brazil Blocks Access to Telegram Apps

A federal judge ordered a nationwide ban on Telegram, the popular messaging app, on April 26, due to its perceived lack of collaboration in a push against school violence. The company behind the app failed to turn over documents regarding the existence of neo-Nazi groups and the measures it is taking against them on Telegram, according to reports from the local journal O’Globo.

In addition, the Brazilian justice system is also fining Telegram for this lack of collaboration to the tune of 1 million Brazilian reals (approx $200,000) for each day that passes without the platform turning in the required documents.

The ban is already in effect, with customers of Vivo, Claro, Tim, and Oi, the main internet providers of the country, being unable to access Telegram’s services. In the same way, the main app providers for mobile operating systems have already removed access to Telegram in their stores.

This was confirmed by Netblocks, an internet observatory organization, which certified that the leading internet service providers (ISPs) are already blocking the access of their users to Telegram; however, Netblocks noted this block could be circumvented using available virtual private network (VPN) apps.

Pavel Durov Speaks

Pavel Durov, CEO of Telegram, defended the actions of the company, stating that it was impossible to deliver the data requested by the Brazilian federal court. On his personal Telegram channel, Durov stated:

In Brazil, a court requested data that is technologically impossible for us to obtain. We are appealing the decision and are looking forward to the final resolution. No matter the cost, we will stand up for our users in Brazil and their right to private communication.

Durov reinforced Telegram’s principles, stating that its mission is to “preserve privacy and freedom of speech around the world.” This is not the first time that Telegram has been subject to this kind of measure. Back on April 2018, the company was also banned in Russia for similar reasons, with Iranian officials calling for a ban on the application that same month.

What do you think about the ban enacted against Telegram in Brazil? Tell us in the comments section below.

from Bitcoin News

Putin: US Policies Will Backfire, Russia to Expand Relations With Countries in Eurasia, Africa, Latin America

Russia’s president, Vladimir Putin, has slammed the actions of the elites in the U.S. and Europe, stating that they do not always act in the best interest of their own people. “It will backfire on them,” he said. Putin also called for a cohesive response to the West’s economic aggression, emphasizing that Russia will strengthen its partnerships with friendly nations and collaborate with foreign partners.

Putin Plans to Expand Partnerships With Friendly Countries

Russian President Vladimir Putin slammed policies in the U.S. and Europe while calling for a cohesive response to the West’s economic aggression at a meeting with the Council of Legislators on Friday, Russian news outlet Tass reported.

“We are not going to isolate ourselves. On the contrary, we will expand pragmatic, equitable, mutually beneficial relations that are nothing less than partnerships with friendly countries in Eurasia, Africa, Latin America,” Putin said, adding:

In the United States, by the way, we have a lot of people that think along the same lines as we do. Same with Europe. The elites behave differently. But we know that the elites in these countries are far from always conducting the policies that benefit the interest of their own people. It will backfire on them.

The Russian president also expressed his government’s willingness to collaborate with foreign partners, including global companies and corporations that “value their business reputation and want to cooperate with Russia.”

Putin further stressed: “Amid the West’s economic aggression, the parliament, the government, and all regional and local authorities must act clearly and quickly and work as one cohesive, well-coordinated team.”

Following the onset of the Russia-Ukraine war, Western countries imposed aggressive sanctions on Russia. Moreover, the U.S. and its Western allies have seized over $300 billion in Russian central bank foreign currency assets frozen by sanctions.

The economic sanctions and the weaponization of the U.S. dollar have led a growing number of countries to de-dollarize and settle trade in non-USD currencies. The BRICS nations are also working to create a common currency. This week, the deputy chairman of Russia’s Security Council, Dmitry Medvedev, urged all countries to make efforts to ensure that the “threat of global confrontation, of a hot, full-scale World War III” does not materialize. “World tensions are white-hot indeed,” he warned.

What do you think about the statements by Russian President Vladimir Putin? Let us know in the comments section below.

from Bitcoin News

Terra Classic Advocates Propose Plan to Re-Establish USTC’s Peg With US Dollar, Token’s Value Surges by Over 9%

Almost 12 months back, terrausd (UST), an algorithmic stablecoin, suffered a detachment from the U.S. dollar, causing the Terra ecosystem to crumble shortly thereafter. At present, supporters of the Terra Classic blockchain community are deliberating on a plan to revive the ecosystem by re-establishing the once-stable token’s peg with the U.S. dollar. In response to the proposed development, the value of UST, renamed USTC, has escalated by more than 9% in the past 24 hours.

Terra Classic Community Plans to Take Action to Restore USTC’s Peg With USD

Terra Classic blockchain supporters aim to revive the algorithmic stablecoin’s ecosystem by restoring the token USTC’s value parity with the U.S. dollar. A Terra Classic community member using the pseudonym “Redlinedrifter” submitted the proposal, affirming that Do Kwon’s decentralized money creation was a positive initiative but that “serious issues need to be addressed” for the community to re-establish the token’s value peg with the U.S. dollar.

USTCUSDT chart by TradingView

Redlinedrifter presented the “Divergence Protocol” idea, which “operates by applying an algorithmic/dynamic fee equivalent to the difference between the peg and the market price.” The innovative mechanism would implement a dynamic fee structure to impose a fee proportional to the deviation between the $1 peg and the token’s market value. The divergence fee structure represents a fresh strategy to tackle previous challenges that hindered the USTC’s ability to maintain its U.S. dollar peg.

This is not the first time members of the Terra community have proposed revamping Do Kwon’s stablecoin idea. In October 2022, a new “soft-pegged stablecoin” concept built on the Terra Phoenix network was introduced in a white paper. Following the news of USTC’s revitalization plan, the once-stablecoin asset has increased in value by 9% against the U.S. dollar. After reaching a low of $0.0195 per unit on Friday, USTC has risen to a high of $0.0218 per coin by 1:15 p.m. Eastern Time.

What do you think of Terra Classic’s proposed Divergence Protocol to re-establish USTC’s value parity with the U.S. dollar? Do you believe this innovative approach will solve the challenges faced by algorithmic stablecoins? Share your thoughts in the comments section below.

from Bitcoin News

Bank of America Strategist Predicts Gold Could Reach $2,500 per Ounce in 2023

A Bank of America (BOFA) commodity strategist has postulated that gold, should it continue to flourish in 2023, could pave the way for a climb to $2,500 per ounce. Presently priced at $1,983 per unit, the precious metal remains just shy of the $2,000 threshold. However, if it were to achieve the projected $2,500 target, its value would need to rise by more than 26% against the U.S. dollar.

‘Non-Commercial Purchases Do Not Need to Increase Materially to Justify Gold Hitting $2,500,’ Says BOFA Commodity Strategist

In 2023 thus far, gold has demonstrated admirable performance, with its price soaring by over 19% in the span of six months. The past 30 days, in particular, have seen a noteworthy 1.33% spike in the price of this treasured metal. Furthermore, a recently-released memo from a BOFA commodity strategist opines that, to realize the envisioned $2,500 per ounce milestone, gold need not scale much further in value.

“Bottom line: non-commercial purchases do not need to increase materially to justify gold hitting $2,500/oz this year,” the BOFA strategist stated.”Inflows into ETFs will be critical and dynamics in assets under management will be a crucial indicator confirming whether price gains can be sustained.”

The note comes at a time when central banks have been purchasing large amounts of gold in 2023. China, for one, boosted its gold stockpile by 18 tons in March, propelling its national reserve’s holdings of the precious metal to 2,068 tons. As reported by the World Gold Council, the trend of central banks’ gold acquisitions, which started in 2022, has continued into 2023. Additionally, statistics from Google Trends reveal that during the first week of April 2023, the search query “how to buy gold” garnered a perfect score of 100.

Despite a note from BOFA senior economist Aditya Bhave, released in early March 2023, which he predicted the Fed would persist in raising rates, the subsequent report by the bank’s commodity strategist projected an end to rate hikes. “Influenced by the recent banking turmoil, markets are pricing imminent rate cuts,” the strategist opined this week. “At the same time, core inflation has been sticky and elevated price pressures, for example in shelter, highlight the risk of second round effects.”

The BOFA strategist added:

This confirms our long-held view: central banks have no silver bullet for fighting inflation and this should ultimately bring investors back to the market. The end of the hiking cycle will be critical for the yellow metal.

With the next Federal Open Market Committee (FOMC) decision less than a week away, investors find themselves grappling with uncertainty as to whether the Fed will hike rates or not. The CME Group Fedwatch tool reveals that 84.5% of the market is anticipating a 25 basis point rise, while 15.5% believe that the Fed will hold rates steady, with no increase in May. The U.S. central bank’s possible reversal of its hawkish monetary policy could be influenced by the sustained upheaval in the country’s banking industry.

In particular, market analysts have been closely monitoring the recent turbulence at First Republic Bank, the nation’s 14th largest bank, which experienced a drastic 50% plunge in value during a single trading session followed by a 30% decline the following day before trading was halted. While the stock has since rebounded, gaining 13% on April 27, 2023, First Republic Bank’s stock has plummeted by 94% over the past six months. In a recent announcement, the bank attributed the massive outflow of $100 billion from its coffers in March to customer withdrawals.

What do you think about the potential rise of gold to $2,500 per ounce in 2023? Do you believe central banks’ gold acquisitions and inflation concerns will continue to fuel its growth? Share your thoughts in the comments section below.

from Bitcoin News

Report: Hackers Breach AT&T Email Accounts, Steal Victims’ Crypto Funds

Cybercriminals have reportedly breached AT&T email accounts and are using the access gained to steal crypto assets from their victims. While a spokesperson for AT&T has denied claims that hackers have gained access to the company’s internal systems, a report suggests that as much as $20 million worth of crypto may have been stolen.

Criminals ‘Used an API Access’

Cybercriminals have reportedly gained access to AT&T email accounts and are using this to hack into targeted victims’ crypto exchange accounts. According to a Techcrunch report, the criminals using this modus operandi may have stolen crypto assets worth between $15 million and $20 million.

Although two victims are said to have confirmed the theft, a spokesperson for AT&T has in the meantime rejected suggestions that criminals have gained access to the company’s internal systems.

“There was no intrusion into any system for this exploit. The bad actors used an API access,” said Jim Kimberly, the spokesperson for AT&T.

As explained in the Techcrunch report, unknown parties are thought to have found a way of hacking into personal AT&T email accounts that use att.net, sbcglobal.net, and bellsouth.net addresses. To achieve this, the hackers reportedly use access to the telecommunication company’s internal network which then enables them to create mail keys for any user.

Having gained a targeted person’s keys, the criminals are then able to login and reset the victim’s passwords including those on crypto exchange apps. To prove that cybercriminals have indeed gained access to AT&T’s internal systems, a whistleblower is said to have shared a list of the hackers’ alleged victims.

While AT&T has acknowledged the “unauthorized creation of secure mail keys,” the spokesperson insisted that the company had responded to this by updating its security controls. The company said it has locked some email accounts to force the owners to reset passwords.

What are your thoughts on this story? Let us know what you think in the comments section below.

from Bitcoin News

Russian Foreign Minister Sergey Lavrov States De-Dollarization ‘Can No Longer Be Stopped’

Russian Foreign Minister Sergey Lavrov has spoken on the current shift to national currencies and the de-dollarization international markets are currently experiencing. In a press conference after addressing the UN Security Council on April 25, Lavrov stated this shift could not be stopped, and that the future of traditional international institutions like the International Monetary Fund (IMF) was uncertain.

Russian FM Sergey Lavrov Thinks De-Dollarization ‘Can No Longer Be Stopped’

Russian Foreign Minister Sergey Lavrov referred to the current shift that international markets are taking away from the U.S. dollar in favor of national currencies. In a press conference after having addressed the UN Security Council, which he chaired, Lavrov stated that this movement to other currencies was unstoppable and that it would likely affect traditional finance institutions.

According to the Russian news Agency TASS, Lavrov declared:

The shift to settlements in national currencies bypassing the dollar, the euro, and the [yen], to digital currencies can no longer be stopped, and the future of the international currency financial system, including the International Monetary Fund (IMF), the World Bank, remains to be seen.

The Russian official had criticized the current role of the IMF before the UN Security Council, declaring it as a “tool” the U.S. and its allies used to achieve their goals, even military ones.

Putting the Blame on the U.S.

In the press conference, Lavrov assigned the responsibility behind this market shift to the U.S. government, which has enacted and recently extended one of the widest packages of sanctions in its history on the Russian Federation. On this, Lavrov explained:

The Americans have started the de-dollarization process. Already now this process is being analyzed particularly by American political analysts and economists with deep concern.

U.S. Treasury Secretary Janet Yellen recently assessed the possible effect that the enactment of U.S. sanctions could have over the dollar hegemony, recognizing these might have a detrimental effect on its usage. However, Yellen noted they tried to use these “extremely important” tools “judiciously.”

Former White House advisor Joseph Sullivan has also referred to the effect that the issuance of a BRICS bloc currency, which is currently being studied, would have on the supremacy of the U.S. dollar. Sullivan, who was economic an economic advisor during the Trump administration, stated that while the issuance of such a currency would not substitute the dollar overnight, it “would begin the slow erosion of its dominance.”

What do you think about Russian Foreign Minister Sergey Lavrov’s take on de-dollarization and its causes? Tell us in the comments section below.

from Bitcoin News

Microstrategy Founder Michael Saylor to Argentines: ‘You Need Bitcoin’ — Critics Insist BTC Is Too Volatile

Micheal Saylor, the founder of Microstrategy, has told people living in inflation-stricken Argentina that they now “need bitcoin.” While many bitcoiners have welcomed Saylor’s suggestion, a few critics have said the top crypto asset’s volatility makes it an unsuitable alternative for the faltering local currency.

The Dollarization Option

As the Argentinian currency — the peso — continued with the slide that has seen it depreciate by more than 40% over the past twelve months, Micheal Saylor, the founder of Microstrategy, has chimed in by tweeting that people living in the South American country now “need bitcoin.” In a subsequent tweet, Saylor, a bitcoin critic turned advocate, also shared news about the South American country’s inflation rate after it topped 7.58% per day.

If you live in Argentina🇦🇷 right now, you need #bitcoin.

— Michael Saylor⚡️ (@saylor) April 22, 2023

The tweets by Saylor, whose firm is one of the largest corporate holders of BTC, came as reports suggested that some Argentinian politicians favor replacing the peso with the U.S. dollar. As reported by Bitcoin.com News, the Argentinian presidential aspirant Javier Milei has said dollarization can put the brakes on inflation, which officially stood at 103.4% in March.

Milei, who is seen as a frontrunner in presidential elections set to be held on Oct. 22, said he plans to shut down the central bank before starting the dollarization process. Steve Hanke, a professor of applied economics at Johns Hopkins University, has similarly suggested the South American country can only escape its present predicament by dollarizing.

Argentina has turned into an over-indebted IMF deadbeat. By my measure, the Argentinian peso has depreciated against the USD by 52% since Jan 1, 2022. ARG must dump the peso and dollarize NOW. Argentina, THE WORLD'S BIGGEST DEADBEAT. pic.twitter.com/4HyFei1WzO

— Steve Hanke (@steve_hanke) April 25, 2023

Yet, despite the apparent widespread support for dollarization in Argentina, critics of the U.S. dollar, including Saylor’s followers on Twitter, have voiced their support for his call on residents to choose bitcoin instead.

Policy Brief: Argentina’s Fiscal Imbalances Will Not Go Away After Dollarization

However, some of Saylor’s followers on Twitter like Manu Ferrari B, a self-proclaimed “liberty maximalist,” have said BTC is too volatile and therefore it cannot be a viable alternative to the falling peso just yet. The user suggested that while it is possible for a bitcoin-backed stablecoin to become the solution, more still needs to be done. He added:

But the whole tech is not ready, yet. Most bitcoiners not living in Argentina, Líbano, Venezuela will not understand this. Most bitcoiners talking about Argentina don’t know what they are talking about. Completely centralized stablecoins running on fiat legacy rails are also not a solution.

In addition to being an expensive undertaking, dollarizing the Argentinian economy would result in the country’s central bank becoming subservient to the policies of the U.S. Federal Reserve. Dollarizing would also see the country’s central bank losing seigniorage — the profit earned from printing currency.

A policy brief published by the Policy Center for the New South on April 28, 2022, described the calls for dollarizing the economy as the “revival of a zombie idea.” Denouncing the Argentinian Congress’ proposal to retain the greenback as the country’s primary currency, the brief warned that the country’s “fiscal imbalances will not be eliminated by dollarization.” The brief also said dollarization would further require “a selective default of domestic currency liabilities, a brutal devaluation, and/or a unilateral conversion of public deposits.”

What are your thoughts on this story? Let us know what you think in the comments section below.

from Bitcoin News

Former President Donald Trump Says US Dollar Is Crashing — Warns ‘We’re Very Close’ to World War III

Donald Trump has warned that the U.S. dollar is crashing and soon will “no longer be the world standard.” The former president of the United States further warned that “we are very close” to a third world war happening. “Joe Biden has led us to the very brink of World War III,” he stressed.

Trump on Inflation, Dollar Crashing, World War III

Donald Trump released a video Tuesday following Joe Biden’s announcement that he is running for the president of the United States in 2024.

The former U.S. president began by outlining the damage to the U.S. economy caused by Biden in a few short years, including his “spending calamity.” Trump described:

American families are being decimated by the worst inflation in half a century. Banks are failing, our currency is crashing, and the dollar will soon no longer be the world standard, which will be our greatest defeat in over 200 years.

“Joe Biden has led us to the very brink of World War III,” Trump continued. However, he clarified: “I’m not predicting World War III but I will say this, we are very close.” He then promised that if he’s elected president in 2024, “we will prevent World War III from happening.”

Trump recently warned that China is trying to displace the U.S. dollar as the number one currency throughout the world. He also cautioned that the USD losing its world’s reserve currency status is like America “losing a world war,” emphasizing: “We’ll be a second-tier country.”

This week, the deputy chairman of Russia’s Security Council, Dmitry Medvedev, also urged all countries to make efforts to avoid the outbreak of a new, full-scale global conflict. “We all need to work to ensure that this threat of global confrontation, of a hot, full-scale World War III should not materialize,” the Russian official said.

What do you think about the statements by Donald Trump? Let us know in the comments section below.

from Bitcoin News

Seoul Prosecutors Believe Terra Co-Founder Do Kwon Still in Possession of $100 Million Held in Swiss Bank Account

In the wake of the recent legal action against ten associates of Terraform Labs, which included the co-founder Shin Hyun-seong, known to many as Daniel Shin, it appears that prosecutors from Seoul are convinced that Terraform Labs and co-founder Do Kwon are still in possession of a considerable sum of money, specifically 130 billion won ($100 million), held in a Swiss bank account.

South Korean Prosecutors Claim Do Kwon and Terraform Labs Still Own $100 Million Tucked Away in a Swiss Bank Account, SEC Complaint Backs Theory

As reported by Park Beom-soo, a local journalist, following the Terraform Labs indictment, Do Kwon and his associates allegedly transferred 10,000 bitcoin (BTC) to a fintech bank headquartered in Switzerland. Sygnum Bank, a digital asset financial institution based in Zurich, was reportedly the recipient of this sizable transfer. It has since come to light that the Seoul Southern District Prosecutor’s Office has been closely monitoring the movement of Terra-linked bitcoin and has revealed this information during a press conference held to discuss the recent indictment.

The prosecutor’s office’s spokesperson stated, “We are actively tracking the bitcoin owned by LFG (Luna Foundation Guard), but some of it has been converted into cash and deposited into the Signum account. As outlined in the SEC complaint, the amount transferred is approximately 100 million dollars (about 130 billion won).” It would appear that the investigation into Terraform Labs and Do Kwon’s financial dealings is ongoing, and further details may come to light concerning this matter.

Onchain Researcher: LFG ‘Failed to Account for the Trail of Bread Crumbs Left by the Change Outputs’

Just before Terra collapsed, Terra’s Luna Foundation Guard (LFG), an organization created to defend the blockchain stablecoin UST’s dollar peg, accumulated a massive amount of bitcoin. The funds were meant to protect UST from dropping below the $1 parity but the fallout was so bad, LFG and Terra’s leaders like Do Kwon could not save it. After the collapse, it was speculated that LFG did not use all the funds to defend the stablecoin, and LFG fired back by releasing an audit that claimed the group used more than 80,000 BTC to defend the coin’s peg.

However, OXT researcher Ergo BTC discovered that the blockchain “tells a different story” in a Twitter thread from October 2022. Ergo said that while LFG may have declared ownership of a single wallet holding 313 BTC, their actions have left a breadcrumb trail of evidence that could be easily followed. Ergo discovered a group of fifteen significant Binance withdrawals made to a single address. The coins were then consolidated and used in a series of transactions spanning several months. Shortly after the first withdrawal from Binance, 665 BTC were spent on Kucoin, and on May 16, the remaining 313 BTC were transferred to the new LFG address, providing evidence of their association.

Ergo further said that the sequence of transactions continued for many months and “unfortunately for the LFG, these (reused addresses) were active prior the depeg event, providing additional clues for investigators.” The researcher further added that while the LFG may argue that the pseudonymity of BTC provides them with a veil of anonymity, it is clear that the activity the researcher observed is “directly related to the funding of the LFG treasury.” Park Beom-soo’s report further confirmed to Ergo that the onchain activity the OXT researcher monitored aligns more closely with the Seoul prosecutor’s report than the story told by Do Kwon and the LFG audit.

What are your thoughts on the ongoing investigation into Terraform Labs and the allegations that the company and co-founder Do Kwon are still in possession of a substantial sum of money? Do you believe that the findings from the U.S. SEC and the Seoul Southern District Prosecutor’s Office align? Share your thoughts about this subject in the comments section below.

from Bitcoin News

‘Not the Right Time to Stop’ Rate Hikes, ECB Chief Economist Says

Current indicators suggest the European Central Bank (ECB) should raise the interest rate in May, the monetary authority’s chief economist said. Future increases will depend on the economic data but this is still not the right time to stop, according to Philip Lane who believes the bank has to bring inflation back to the 2% target “in a timely manner.”

Leaving Interest Rate at Current Level Would Be ‘Inappropriate’ Despite Falling Inflation, Lane Says

Inflation in the euro area has dropped significantly between October, when it peaked at 10.6%, and March’s 6.9%. Nevertheless, the most important goal for its central bank is to make sure that it gets closer to 2%, Chief Economist of the ECB Philip Lane told Le Monde in a recent interview published by the bank on Tuesday.

While easing in some sectors, such as energy, inflationary pressures persist in others, like food, the top official noted, warning there’s a risk of “sticky” inflation. This is why it’s important that the ECB raises its interest rates again to ensure inflation returns to the target “in a timely manner,” he emphasized.

Inflation has been too high for almost two years, Lane admitted, attributing it to bottlenecks created by the pandemic and the energy shock resulting from Russia’s invasion of Ukraine. To deal with it, the ECB increased interest rates by 3.5 percentage points, from -0.5% to 3%, which is unprecedented for the eurozone.

“For our next Governing Council meeting on May 4, the current data are indicating that we should raise rates again,” said Philip Lane who sits on the bank’s Executive Board. He added that the analysis suggests it would be “inappropriate” to leave the deposit rate at the current 3% level and stressed:

This is still not the right time to stop. Beyond that, I don’t have a crystal ball, it will depend on the economic data.

The most important task is to bring inflation closer to 2% “within a reasonable time period,” ECB’s chief economist reiterated. The longer it stays too high, the greater the risk that people lose faith in the bank’s ability to return to its long-term target, he reasoned.

Lane’s statements for the French press come after several central bank governors, members of the ECB’s Governing Council, indicated in the past few weeks that a new rate hike is to be expected from the upcoming meeting next month.

By how much do you think the ECB will increase interest rates in May? Share your predictions in the comments section below.

from Bitcoin News

Iskra Ranks #1 on Dapp Radar Setting the Pace for World of Win’s IGO

PRESS RELEASE. Web3 game company Iskra unveils the release of its own launchpad for games, the Iskra Launchpad, with World of Win set to be the first project to conduct its initial game offering (IGO) on the platform.

The release of the Iskra Launchpad comes right after Iskra dominated the number one spot on DappRadar’s blockchain games dapp rankings for all periods – 24 hours, 7 days, and 30 days – with 669.27k UAW as of writing and cited as one of the best-performing games dapp for March 2023.

The Iskra Launchpad is a platform that allows game companies working with Iskra to promote their tokens to the Iskra community via IGO before its official listing on an exchange. Through the Iskra Launchpad, the Iskra community will have the opportunity to discover visionary games at an early stage and purchase tokens at its offering price.

While tokens purchased on the Iskra Launchpad during an IGO are locked and subject to a vesting and distribution schedule, every IGO token has a corresponding “Express Token” that can be immediately used for other utilities. This unique feature allows IGO participants to concurrently enjoy exclusive uses such as purchasing NFTs on the Iskra Market, accessing exclusive invites to events like CBTs, and enjoying other in-game benefits.

World of Win, the first project that will hold its IGO on the Iskra Launchpad, is the platform’s first social casino and arcade offering, which showcases the best in slots and hyper casual skill-based games.

By playing World of Win, users can enjoy the thrill of playing in a casino without the gambling aspect of gaming as there is no cash-out feature involved.

WoW Labs, the company behind World of Win, will be offering its WoW token for the first time during the IGO, which builds up to the public launch of the game that is expected to happen soon afterwards.

“We are excited to kick off our service with the Iskra community and be an addition to the premier gaming catalog of the platform,” Sam [Family Name], founder and CEO of WoW Labs, explained. “Social casino is a unique and widely popular genre. The thrill that comes with games of chance is something that I’ve seen as a missed opportunity in crypto gaming, as a Web3 gaming and crypto enthusiast myself. WOW Labs is filling that gap by introducing the full blown social casino experience to the Web3 gamers.”

By launching World of Win, WOW Labs aims to introduce the first social casino gaming experience to Web3 gamers. The hyper casual and skill-based tournament games run on an hourly basis, which gives users speedy and dynamic play-and-earn experience, while WoW’s DeFi-inspired Piggy Bank NFTs allow more coins for continuous play.

The release of the Iskra Launchpad, as well as the launch of World of Win, adds another milestone to the several available services and games that Iskra offers to its growing community. According to Spike Ryu, Chief Operating Officer of Iskra, “the company is focused on steadily rolling out games and services, so that it can demonstrate the full potential of community engagement in Web3 gaming.”

ABOUT ISKRA

Iskra is a single-destination Web3 game platform for developers and players that rewards them for their contribution and participation through a unique community system on the blockchain. This allows stakeholders to take a major part in building the platform for future growth.

Current services include a wallet, DEX, marketplace, NFT Mission Card (daily reward), governance staking and voting, and soon-to-launch Launchpad, Web3 casual and hyper-casual games.

Backed by some of the biggest technology and video game companies in South Korea, Iskra ranks in the top categories for gaming in DappRadar for unique active wallets per day and engagement.

Explore the future of play!

ABOUT WoW LABS

WOW Labs is a Web3 casual games developer, teamed up from social casino and puzzle games studios that serviced on mobile and Facebook platforms. WOW Labs team formerly developed and advised multiple titles that grossed top of the charts in major app stores.

WOW Labs creates an immersive and addictive casual gaming experience that tightly integrates Play-and-Earn mechanisms. WOW Labs’ goal is to create a casual gaming focused metaverse that is approachable and fun to any skill level of gamers in the era of blockchain. WOW Labs is launching its first title “World of Win: Social Casino and Play-and-Earn Arcade” with Iskra, and will branch out its WOW franchise via more titles and over multiple blockchains to further reach casual game enthusiasts.

 

 

 

 

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This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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