Kenyan Central Bank Says It’s ‘Craziness’ to Convert Country’s Reserves to Bitcoin

The Kenyan central bank governor Patrick Njoroge has described as “craziness” the calls to convert Kenya’s reserves into bitcoin. He added that he would have to be out of his mind before agreeing to this. Njoroge argued that cryptocurrencies like bitcoin are not only volatile, but are hardly solving any problem.

CBK Governor Says Converting Kenya’s Reserves to Bitcoin Deserves a Jail Term

The Central Bank of Kenya (CBK) governor, Patrick Njoroge, has described the idea of putting the country’s reserves into bitcoin as “craziness.” Njoroge, who was addressing recently elected members of Kenya’s legislature, added that if it occurred that he agrees to convert Kenya’s reserves to bitcoin, he should be jailed and the keys to his prison cell must be thrown away.

Under Njoroge’s stewardship, the CBK has issued statements and advisories warning Kenyan residents against trading or investing in cryptocurrencies. For instance, Bitcoin.com News reported in June 2022 that Njoroge, together with the Central Bank of Nigeria (CBN) deputy governor Kingsley Obiora, had cited cryptocurrencies’ volatility as one of the reasons why they cannot become a widely used payment method.

Yet, despite Njoroge and the CBK’s opposition, several studies have suggested that Kenyan residents’ use of, or investment in, cryptocurrencies is growing. For example, the peer-to-peer crypto exchange Paxful recently revealed that its users from the country had digital assets valued at $125 million during the first half of 2022.

Njoroge: No Problems Being Solved by Cryptocurrencies

However, in a video recently uploaded to Youtube, Njoroge still questions the benefits of cryptocurrencies for the Kenyan economy. He said:

In our economy what problem are they resolving? Are they better vehicles for let’s say payments, transactions? And the answer is no. Are they better in terms of …. security more than a bank account? And the answer is no.

Further, in his attempts to dissuade lawmakers from entertaining individuals hyping bitcoin and other cryptocurrencies, Njoroge claimed that he too is also being pressured.

“I do know you are under a lot of pressure from some of these people that are pushing these things. Because for them it is good. I can assure you I have a lot of people that are pushing to put our reserves in bitcoin.”

Njoroge however suggested that he would have to be out of his mind before he agrees to this call to convert reserves to bitcoin.

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JPMorgan: Demand for Crypto as Payment Method Has Drastically Declined

Global investment bank JPMorgan is seeing little demand for crypto as a payment method. However, the bank noted that cryptocurrencies are becoming “larger and larger” in the gaming sector, including in the metaverse.

JPMorgan Sees Little Demand for Crypto as a Payment Tool

The global head of payments for JPMorgan’s Corporate & Investment Bank division, Takis Georgakopoulos, talked about client demand for crypto as a payment method in an interview with Bloomberg Television this week. He said:

We saw a lot of demand for our clients, let’s say up until six months ago. We see very little right now.

While noting that the demand for crypto as a payment tool has drastically declined, Georgakopoulos stressed that the bank will still support clients who want to use crypto for this purpose.

He added that cryptocurrencies are also becoming “larger and larger” in the gaming sector — both in traditional gaming and in the metaverse, where he sees many opportunities.

This week, JPMorgan CEO Jamie Dimon also reiterated his skepticism about bitcoin and cryptocurrency. “I’m a major skeptic on crypto tokens which you call currency, like bitcoin. They are decentralized Ponzi schemes,” the executive said. However, he emphasized that he is not skeptical about blockchain and decentralized finance (defi), calling them “real” innovations.

A recent survey conducted by Deloitte in collaboration with Paypal found that over 85% of merchants “are giving high or very high priority to enabling cryptocurrency payments.” In addition, “nearly three-quarters of those surveyed reported plans to accept either cryptocurrency or stablecoin payments within the next 24 months.”

A different survey by Bank of America showed “growing interest” in crypto’s use as a payment method. “39% and 34% of respondents reported using crypto / digital assets as a payment method to make online or in-person purchases, respectively,” the bank described. Additionally, 49% and 53% of respondents expressed interest in using crypto / digital assets to make either online or in-person purchases, respectively.

What do you think about JPMorgan saying that there’s little demand for crypto as a payment tool? Let us know in the comments section below.

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Robert Kiyosaki Says End of Fake Money Is Here — Shares 3 Lessons to Help Investors Amid Market Crashes

After predicting the biggest crash in world history, Robert Kiyosaki, the famous author of the best-selling book Rich Dad Poor Dad, says the “end is here” for fake money. He reiterated three lessons that will help investors “do well in market crashes.”

Robert Kiyosaki on the End of Fake Money

The author of Rich Dad Poor Dad, Robert Kiyosaki, shared some of his views and investment lessons in a couple of tweets this week. Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. More than 32 million copies of the book have been sold in over 51 languages across more than 109 countries.

Kiyosaki tweeted on Tuesday explaining why he thinks the end of “fake” money has arrived. The famous author wrote:

End is here. Called Jerry Williams, my trusted gold and silver dealer. He said: ‘I can’t get gold or silver coins. The mint will not sell me anymore.’ To me, this means the end of fake $ is here.

He proceeded to reiterate his silver recommendation. “As stated in earlier tweet silver going to $100 to $500. Get some. Protect yourself,” he wrote. His advice followed another statement he made recently that gold is expensive, calling silver the best investment value today.

Kiyosaki previously explained that when President Richard Nixon removed the U.S. dollar from the gold standard in 1971, “the U.S. dollar became fake money.” He clarified that “This is because rather than being tied to real money,” such as gold, “it was tied to the ‘full faith and credit’ of the United States.”

In a tweet on Thursday, the renowned author reminded investors of some lessons. “In Rich Dad Poor Dad, I stated Rich Dad’s 3 lessons,” he described, elaborating:

1: Your house is not an asset. 2: Savers are losers. 3: The rich do not work for $.

“The rich are entrepreneurs who do not need a job,” he added, noting that these people “create jobs, create [their] own assets, and do well in market crashes.” He then emphasized that “2022 is your time to get richer.”

Last week, Kiyosaki urged people to “invest in real money,” naming gold, silver, and bitcoin. He stressed that the Federal Reserve “raising interest rates will destroy the U.S. economy.”

Kiyosaki has repeatedly warned that the biggest crash in world history is coming. In April, he said all markets are crashing.

He recently urged his mailing list subscribers to buy cryptocurrency now, ahead of the biggest crash in world history. The famous author has stated for several months that he is waiting for the price of the cryptocurrency to bottom out before getting in. He recently said he was in a cash position ready to buy BTC, suggesting at one point that the price of the crypto could test $1,100.

What do you think about the warnings and advice by Robert Kiyosaki? Let us know in the comments section below.

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Moscow Exchange Suggests Issuing Crypto Receipts for Those Afraid of Blockchain

The Moscow Exchange has proposed to legalize the issuance of receipts for digital financial assets. The trading platform says this will allow custodians to offer clients who are not ready for distributed ledgers to essentially work with securities. MOEX also plans to become a licensed crypto exchange operator.

Largest Russian Stock Exchange Gears Up to Enter Digital Asset Market

The leading exchange for equities and derivatives in Russia has drafted new legislation that would authorize depositories to issue receipts for digital financial assets (DFAs). In current Russian law, the broad term ‘DFAs’ encompasses cryptocurrencies in the absence of a more precise definition, but mainly refers to digital coins and tokens that have an issuer.

Under such arrangement, DFA receipts can be traded as securities, explained Sergey Shvetsov, who heads the supervisory board of the Moscow Exchange (MOEX). During the latest edition of the International Banking Forum, the official emphasized that the exchange “will naturally enter this market” and stated:

We have prepared a project that allows you to issue receipts for digital assets, then these receipts are circulated as securities.

MOEX has already filed the respective bill with the Central Bank of Russia (CBR) and will also coordinate the initiative with the Ministry of Finance. The legislation will provide those who are not ready to work with distributed ledgers and afraid of custodial risks an opportunity to transfer these risks and be able to issue securities, Shvetsov added.

“In order for DFAs to develop, we want to propose that the market itself makes the choice – blockchain accounting or depositary accounting,” he further elaborated, reminding the audience that the Moscow Exchange also wants to obtain a license from the CBR to operate as a digital asset exchange. In August, MOEX announced its intention to launch a DFA-based product by the end of the year.

“If such a law is adopted, Russian depositories will be able to accumulate DFAs on their accounts in the blockchain and give receipts against them to their clients. As soon as a customer needs the underlying asset, he would cancel the receipt and receive his digital asset on his blockchain account,” Shvetsov was quoted as saying by the Prime business news agency.

Support has been growing in Moscow to permit the use of digital assets such as cryptocurrencies for international settlements amid sanctions, while it’s still unclear if regulators will allow their free circulation inside the country. In any case, Russia must create its own crypto infrastructure, according to the head of the parliamentary Financial Market Committee. Anatoly Aksakov recently said that the stock exchanges in Moscow and Saint Petersburg are ready to provide it.

Do you expect the Moscow Exchange to become a major player in Russia’s crypto market? Share your thoughts on the subject in the comments section below.

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Erdogan Suggests Turkish-Russian Payment System, Local Media Reports

Turkish President Recep Tayyip Erdogan is reportedly pushing for Turkey and Russia to establish a new payment system between them. The initiative comes amid U.S. pressure against the use of the Russian Mir cards in Turkey. Some Turkish banks have been working with them to facilitate payments by Russian tourists visiting the country.

President Erdogan Tasks Turkish Government With Developing Mir Alternative, Report

President of Turkey Recep Tayyip Erdoğan has instructed ministers to develop a payment system with Russia to serve as an alternative to the Russian banking system Mir. According to the A Haber TV channel, Turkish and Russian officials have already held talks on this matter.

The move follows a statement from Washington that the United States would try to persuade Turkey to limit support for Mir. Its cards are one of the few remaining options for Russians vacationing in Turkey as Western sanctions have cut them off from major global credit cards and also destinations. Many of them visited Turkey this year.

Quoted by the Russian business daily Kommersant, A Haber revealed that that the relevant Turkish and Russian government departments are now negotiating while President Erdogan himself will also participate in discussions on the topic.

In mid-September, the administration in Washington indicated it may impose sanctions on nations conducting transactions with Mir. Two of the five Turkish lenders that had been working with the Russian payment system, Isbank and Denizbank, suspended operations with it. The state-owned Halkbank, Vakifbank, and Ziraat are still using it.

Later, the U.S. Treasury expressed readiness to convince the Turkish government of the need to reduce the use of Mir. Last week, American authorities expanded the sanctions imposed over Russia’s invasion of Ukraine to include the chief executive of the Central Bank of Russia’s National Card Payment System (NSPK), Mir’s operator.

The NSPK is processing domestic transactions in Russia. Moscow established Mir after the annexation of Crimea in 2014, when several Russian banks were denied services by Visa and Mastercard. Russia also developed the System for Transfer of Financial Messages (SPFS), an alternative to SWIFT, from which some Russian banking institutions have been disconnected.

During the current crisis, Russia has also turned its attention to cryptocurrencies. Earlier this month the Ministry of Finance and the Bank of Russia agreed that under the current conditions, Russia would need to legalize crypto payments for cross-border transactions to relieve the sanctions pressure on its economy and foreign trade.

Do you think Turkey and Russia will develop a new payment system to substitute Mir? Share your expectations in the comments section below.

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UK Proposes New Law to ‘Seize, Freeze and Recover’ Crypto Assets Easier and Faster

The British government has presented the Economic Crime and Corporate Transparency Bill to Parliament that will “make it easier and quicker” for law enforcement agencies “to seize, freeze and recover crypto assets.” The government stressed: “We must ensure that law enforcement agencies have the right legislative framework in place to recover criminals’ crypto assets.”

UK’s New Bill to Help Authorities Seize, Freeze, and Recover Crypto

The British government introduced the Economic Crime and Corporate Transparency Bill in the House of Commons Thursday. The bill “aims to strengthen the U.K.’s fight against economic crime,” the government detailed, noting that “It will also support efforts to tackle terrorist financing.”

The government explained:

The new law will make it easier and quicker for law enforcement agencies such as the National Crime Agency to seize, freeze and recover crypto assets — the digital currency increasingly used by organized criminals to launder profits from fraud, drugs and cybercrime.

Moreover, the bill includes amendments to the Proceeds of Crime Act 2002 (POCA) to support the recovery of crypto assets.

“We must ensure that law enforcement agencies have the right legislative framework in place to recover criminals’ crypto assets to ensure crime does not pay and prevent those assets being used to fund further criminality and terrorist activities,” the government continued. “The use of this digital currency has significantly increased in recent years, with the Metropolitan Police reporting a big rise in cryptocurrency seizures last year.”

Director General of the National Crime Agency Graeme Biggar commented:

Domestic and international criminals have for years laundered the proceeds of their crime and corruption by abusing U.K. company structures, and are increasingly using cryptocurrencies.

Crypto regulation may be undergoing changes in the U.K. under the new prime minister, Liz Truss. Several key officials who previously worked on the country’s crypto policy resigned from government before she took office, including Former Chancellor of the Exchequer Rishi Sunak and Economic Secretary to the Treasury John Glen.

In May, the U.K. government outlined its plans to support crypto adoption and affirmed its commitment to regulate stablecoins.

Sunak said in April: “It’s my ambition to make the U.K. a global hub for crypto asset technology, and the measures we’ve outlined today will help to ensure firms can invest, innovate, and scale up in this country.” Glen similarly said: “We want this country to be a global hub — the very best place in the world to start and scale crypto-companies.”

What do you think about the U.K. Economic Crime and Corporate Transparency Bill? Let us know in the comments section below.

from Bitcoin News

Coinbase Receives Approval to Offer Full Suite of Crypto Products in Netherlands

Crypto exchange Coinbase has received approval to offer its full suite of retail and institutional crypto products and services in the Netherlands. “We have taken strides to work collaboratively with government, policymakers, and regulators to shape the future in a responsible way,” Coinbase said.

Dutch Regulator Approves Coinbase

The Nasdaq-listed cryptocurrency exchange Coinbase (Nasdaq: COIN) announced Thursday that it “has successfully registered with the Dutch central bank (De Nederlandsche Bank — DNB) as a crypto service provider.” The announcement details:

This registration will allow Coinbase to offer our full suite of retail, institutional, and ecosystem products to customers in the Netherlands.

“We are proud to be the first major global crypto exchange to receive DNB registration approval,” the company claimed, noting that Coinbase Europe Ltd. and Coinbase Custody International Ltd. are both listed in the DNB’s public register as a crypto service provider.

Nana Murugesan, vice president of Coinbase’s international and business development, commented:

We have taken strides to work collaboratively with government, policymakers and regulators to shape the future in a responsible way.

“The Netherlands is a critical international market for crypto, and I am really excited for Coinbase to bring the potential of the crypto economy to the market here,” the executive opined.

Coinbase explained that it serves customers across almost 40 European countries through dedicated hubs in Ireland, the U.K., and Germany. The company is also pursuing additional registrations or license applications in several major markets.

In August, the Dutch central bank warned that Binance is illegally offering crypto exchange services in the country. “This may increase the risk of customers becoming involved in money laundering or terrorist financing,” the regulator cautioned at the time. In July, the DNB said it fined Binance Holdings $3.4 Million due to “very serious” violations. The crypto exchange subsequently applied for authorization to operate in the country with the central bank.

What do you think about Coinbase receiving approval to offer its full suite of crypto products and services in the Netherlands? Let us know in the comments section below.

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