Μείνετε συντονισμένοι

Θέλετε να μη χάνετε κανένα νέο σε ότι έχει σχέση με τα κρυπτονομίσματα? Αποθηκεύστε τη σελίδα στα αγαπημένα σας

Translate

Αναζήτηση αυτού του ιστολογίου

Δευτέρα 31 Οκτωβρίου 2022

Economists Discuss Russia, China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar

Economists Weigh in on Russia and China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar

Economists have weighed in on reports that China and Russia may be developing a new gold-backed currency that could undermine the U.S. dollar’s status as the world’s primary reserve currency.

Russia and China May Be Developing Gold-Backed Currency

Several experts have shared their views on Russia and China potentially creating a new gold-baked currency, Fox Business reported Saturday, emphasizing that China has been buying up huge quantities of gold while Russia was forced off the U.S. dollar due to sanctions imposed on the country following its invasion of Ukraine.

The news outlet noted that some experts have cautioned that these moves, along with the closer relationship that has developed between Moscow and Beijing, point to the likelihood of China attempting to launch a gold-backed currency. However, neither Russia nor China has officially confirmed plans for such a currency.

Craig Singleton, senior fellow at the Foundation for Defense of Democracies and a former U.S. diplomat, explained that Chinese leaders have talked about reforming the global financial system and reducing the U.S. dollar’s dominance for two decades.

“Two components in that strategy center around the development of a yuan-based global commodities trading system and efforts by China, in partnership with Russia and other like-minded countries, to challenge dollar dominance by creating a new reserve currency,” he told Fox News Digital, elaborating:

In essence, Beijing and Moscow are seeking to build their own sphere of influence and a unit of currency within that sphere, in effect inoculating themselves from the threat of U.S. sanctions.

Swiss exports of gold to China in July rose to their highest level since December 2016. According to Swiss customs data, Switzerland shipped 80.1 tonnes of gold worth 4.4 billion Swiss francs ($4.4 billion) to mainland China during the month.

A research fellow and economist at the Heritage Foundation’s Asian Studies Center, Min-Hua Chiang, believes that the appeal for the new Russia-China currency “will be limited” due to small trade volume, stating:

Even if both countries use a new currency for bilateral trade transactions, the relatively small trade volume will limit the impact on the U.S. dollar.

Data from the Society for Worldwide Interbank Financial Telecommunications (SWIFT), a global financial messaging firm, showed that 42.6% of global payments in August were in U.S. dollars, 34% were in euros, and 2.3% were in Chinese yuan.

The Heritage Foundation economist stressed that the yuan “is still leagues behind the USD and euro,” adding that a multinational currency, like the euro, requires “a level of political and economic coordination and integration that is not present in Asia today.” She opined:

The USD remains the safest, most convenient and most widely used currency in Asia and in the world today. No other currency (backed by gold or otherwise) is comparable, and that is unlikely to change in the near future.

During the BRICS Summit in July, Russian President Vladimir Putin announced that the BRICS economies plan to issue a “new global reserve currency.” The BRICS nations are Russia, China, India, Brazil, and South Africa. Analysts believe the BRICS move to create a reserve currency is an attempt to undermine the U.S. dollar and the International Monetary Fund (IMF)’s Special Drawing Rights (SDRs).

Do you think Russia and China are developing a gold-backed currency that could undermine the U.S. dollar’s status as the world’s reserve currency? Let us know in the comments section below.



from Bitcoin News

Veteran Trader Peter Brandt Says Dogecoin Bear Market Has Ended

Veteran Trader Peter Brandt Says Dogecoin Bear Market Has Ended

Veteran trader Peter Brandt says the dogecoin bear market that began in May last year has ended. His comment came after the price of dogecoin soared following Tesla CEO Elon Musk’s acquisition of the social media platform Twitter.

Peter Brandt on Dogecoin Outlook

Veteran trader Peter Brandt shared his analysis of dogecoin (DOGE) Sunday. Brandt has been a futures and FX career trader since 1975. He is a chartist and the author of the Factor Report. He trades a variety of markets, including Dow futures, bonds, corn, crude oil, European wheat, Osaka Dow, U.S. dollar, and sugar.

Tweeting a chart of DOGE, Brandt wrote: “This is called a bear channel, the upside violation of which has ended the bear market that began at the May 2021 high.”

Veteran Trader Peter Brandt Says Dogecoin Bear Market Has Ended

However, Brandt followed up with another tweet, warning traders not to fall for the common mistake of assuming that the end of a bear market automatically means a bull market has begun. He cautioned:

A common mistake made by novice and wanna-be traders is assuming that an end to a bear phase of a market is automatically a signal that a bull market has begun. This assumption is most often wrong.

Some people replied to his tweet, pointing out that it could be a false breakout and that a subsequent period of consolidation could determine where the price of dogecoin is actually headed. Many believe that the recent DOGE pump is “the Elon effect,” stemming from the Tesla CEO buying Twitter.

The price of dogecoin began soaring after Musk acquired Twitter. The billionaire, who is sometimes known in the dogecoin community as the Dogefather, completed the acquisition of the social media giant Thursday. In the past, his support for the meme cryptocurrency often boosted the price of DOGE.

Musk previously revealed that he owns three cryptocurrencies: bitcoin, ether, and dogecoin. The Tesla CEO confirmed in June that he will keep buying and supporting DOGE, stating on several occasions that the meme coin has potential as a currency.

His electric car company, Tesla, accepts the meme cryptocurrency for some merchandise and his Boring Company accepts DOGE payments for some rides. He also said that Spacex will soon accept dogecoin for merchandise. Many dogecoin supporters expect Musk to utilize the meme crypto as he endeavors to improve Twitter. In May, he said that Mark Cuban’s idea about using DOGE to solve Twitter’s spam problems is “not a bad idea.”

At the time of writing, DOGE is trading at $0.116263, down nearly 9% over the past 24 hours but up 95% over the past seven days.

What do you think about the comments by Peter Brandt about the dogecoin bear market being over? Let us know in the comments section below.



from Bitcoin News

Professor Steve Hanke Says US Economy Was Flat Over the Last Year, but Stresses ‘It’s Going to Hit South’

Professor Steve Hanke Says US Economy Was Flat Over the Last Year, but Stresses ‘It’s Going to Hit South’

Amid the chaotic economy, plagued with central bank tinkering, supply chain issues, and red-hot inflation, the professor of applied economics at Johns Hopkins University, Steve Hanke believes a “pretty big recession” will take place in 2023. Speaking in an interview on Oct. 28, Hanke said that he updated the probability of a U.S. recession to a 90% chance, as he believes the money supply has tightened at an “unprecedented” rate.

Economics Professor Steve Hanke Says Probability of a U.S. Recession is Now 90%

Professor Steve Hanke has been critical of the central banks worldwide and on Friday, he said the chances of a recession is very likely. Hanke spoke with the news anchor for Kitco News David Lin, and explained that he upped his prediction to a 90% chance a U.S. recession will occur. “Where we’re going is determined by where the money supply is going,” Hanke told Lin on Friday. “The Quantity Theory of Money is a way to determine national income determination.”

The professor of applied economics at Johns Hopkins University added:

We had the money supply being goosed in early 2020, when COVID hit, we had the money supply growing, on average, about three times faster than it should have been growing to hit a 2% inflation target. As a result, we had a lot of inflation.

Inflation in the U.S. has been an issue and the U.S. Federal Reserve’s key inflation gauge, the personal consumption expenditures (PCE) price index, increased by 0.5% in September. Furthermore, the September consumer price index (CPI) report had shown consumer prices jumped to 8.2%. Hanke says quantitative tightening is now a big issue as the money supply has contracted significantly, the economics professor stressed during his interview.

“The last seven months, the money supply has actually contracted by 1.1%,” Hanke told the Kitco anchor. “That’s almost unprecedented. That means, of course, you have a big change in the money supply and then there’s a transmission mechanism. There are lags between the thrusts in the money supply, whether it’s going up or it’s going down, and what happens to the real economy,” Hanke added. The economics professor opined that he thinks these factors will lead the U.S. toward a large recession.

Hanke further told the news anchor:

Some time, in 2023, we’ve got a pretty big recession baked in the cake. So GDP numbers, they’re a great thing and you can celebrate it today, it’s not negative anymore, we had a positive number — the whole picture looks like the economy is kind of flat for the last year, but it’s going to hit south.

Hanke, however, is not a fan of cryptocurrencies like bitcoin and he’s critized the country of El Salvador for adopting bitcoin as a form of legal tender. In June 2021, a few months before bitcoin (BTC) tapped $69K per unit, Hanke explained that “with [Nayib] Bukele at the helm” his country faced “financial ruin.” Bukele shot back at Hanke’s critique when BTC reached $60K per unit in mid-October 2021.

Hanke is a fan of countries creating currency boards, an idea that leverages the use of a monetary authority to maintain a currency’s fixed exchange rate. Bitcoin, by design, is the antithesis of Hanke’s favored currency board solution as BTC’s network is decentralized, and the free market chooses the cryptocurrency’s exchange rate.

What do you think about Steve Hanke’s opinion that says a “pretty big recession [is] baked in the cake?” Let us know what you think about this subject in the comments section below.



from Bitcoin News

Κυριακή 30 Οκτωβρίου 2022

Fidelity: 74% of Institutional Investors Surveyed Plan to Invest in Digital Assets

Fidelity: 74% of Institutional Investors Surveyed Plan to Invest in Digital Assets

A new study by Fidelity Digital Assets, a subsidiary of financial giant Fidelity Investments, shows that 58% of institutional investors surveyed invested in digital assets in the first half of this year and 74% plan to invest in the future.

Fidelity’s Institutional Investor Digital Assets Study

Fidelity Digital Assets, a subsidiary of financial giant Fidelity Investments, released its fourth annual “Institutional Investor Digital Assets Study” Thursday. The study features a blind survey conducted between Jan. 2 and June 24. A total of 1,052 institutional investors in the U.S. (410), Europe (359), and Asia (283) participated.

According to the study:

Nearly six in 10 (58%) institutional investors surveyed invested in digital assets in the first half of 2022, while 74% plan to invest in the future.

In addition, 88% of institutional investors surveyed “find characteristics of digital assets appealing” and 51% “have a positive perception of digital assets.”

More than 81% of institutional investors surveyed believe that digital assets should be a part of an investment portfolio. Nearly 39% of respondents globally that invest buy digital assets directly, with bitcoin and ether noted as the most popular direct investment assets.

Fidelity detailed:

As the digital assets market and ecosystem continues to mature, fewer institutional investors now view digital assets as an alternative asset class, particularly in the U.S. and Asia.

According to the survey, “Lack of fundamentals to gauge value, security concerns among institutions and end-clients, market manipulation risks, complexity, and regulatory concerns were all cited by at least one-third of respondents as a reason why they do not currently invest in digital assets.”

Tom Jessop, president of Fidelity Digital Assets, commented: “The increased adoption reflected in the data speaks to a strong first half of the year for the digital assets industry.” He opined:

While the markets have faced headwinds in recent months, we believe that digital assets fundamentals remain strong and that the institutionalization of the market over the past several years has positioned it to weather recent events.

Fidelity Digital Assets has been ramping up services for institutional investors interested in having exposure to cryptocurrency in their portfolios. This week, the firm began offering ethereum (ETH) trading.

The firm recently explained how bitcoin could be considered portfolio insurance. “Bitcoin remains one of the few assets that does not correspond to another person’s liability, has no counterparty risk, and has a supply schedule that cannot be changed,” Fidelity Digital Assets described.

What do you think about this Fidelity study on the institutional adoption of digital assets? Let us know in the comments section below.



from Bitcoin News

Hong Kong to Start Allowing Retail Crypto Trading in March Next Year: Report

Hong Kong to Start Allowing Retail Crypto Trading in March Next Year: Report

Hong Kong is relaxing its crypto regulation to allow retail investors to trade digital assets directly. A licensing regime for crypto platforms that allows retail crypto trading is reportedly set to be enforced in March next year.

Hong Kong Nears Allowing Retail Crypto Trading

Hong Kong is reportedly relaxing its strict cryptocurrency regulation with a plan to allow retail crypto trading, Bloomberg reported Thursday, citing people familiar with the matter.

A mandatory licensing regime for cryptocurrency platforms that allows retail crypto trading is set to be enforced in March next year, the publication conveyed, elaborating:

Hong Kong plans to legalize retail trading for crypto starting in March after years of skepticism — a stark contrast to mainland China’s ban.

Moreover, regulators are seeking to allow retail exchanges to list large cryptocurrencies, like bitcoin (BTC) and ether (ETH), the news outlet added. The listing rules are likely to include criteria such as the token’s market value, liquidity, and inclusion in third-party crypto indexes.

Gary Tiu, executive director at crypto firm BC Technology Group, commented:

Introducing mandatory licensing in Hong Kong is just one of the important things regulators have to do. They can’t forever effectively close the needs of retail investors.

Michel Lee, executive president of digital asset financial services group Hashkey, explained that Hong Kong has been trying to create an all-encompassing crypto regime, citing tokenized stocks and bonds as a potentially more important segment in the future. “Just trading digital assets on its own is not the goal. The goal is really to grow the ecosystem,” he was quoted as saying.

Hong Kong’s top financial regulator, the Securities and Futures Commission (SFC), introduced a voluntary licensing regime in 2018. It restricted crypto trading platforms to clients with portfolios of at least HK$8 million ($1 million). However, the tough regulation turned away many crypto businesses and only two firms — BC Technology Group and Hashkey — were approved.

Many people are skeptical of the new crypto regulation, however. Bitcoin Association of Hong Kong co-founder Leonhard Weese shared:

The kind of conversations I’ve had was that people still fear there’ll be a very strict licensing regime. Even if they’re able to deal directly with retail users, they’re still not going to be as attractive or as competitive as overseas platforms.

The SFC’s director of licensing and head of the fintech unit, Elizabeth Wong, said last week: “We’ve had four years of experience in regulating this industry … We think that this may be actually a good time to really think carefully about whether we will continue with this professional investor-only requirement.” She noted that Hong Kong could also authorize exchange-traded funds (ETFs) to offer exposure to mainstream crypto assets.

What do you think about Hong Kong allowing retail cryptocurrency trading? Let us know in the comments section below.



from Bitcoin News

US Lawmakers Probe SEC, Treasury, Federal Reserve Over Revolving Door With Crypto Industry

US Lawmakers Probe SEC, Treasury, Federal Reserve Over Revolving Door With Crypto Industry

U.S. lawmakers have raised concerns about the revolving door between financial regulators and the crypto industry. “Over 200 government officials have moved between public service and crypto firms,” the lawmakers said, adding that they include 31 Treasury Department officials and 28 Securities and Exchange Commission (SEC) officials.

Revolving Door Between Financial Regulators, Like SEC, and Crypto Industry

Five U.S. lawmakers have sent a letter to seven financial regulators inquiring about measures they are taking to prevent the revolving door between their agencies and the crypto industry. The letters, dated Oct. 24, were signed by Sen. Elizabeth Warren (D-MA), Sen. Sheldon Whitehouse (D-RI), Rep. Rashida Tlaib (D-MI), Rep. Alexandria Ocasio-Cortez (D-NY), and Rep. Jesús G. “Chuy” García (D-IL).

The letters were sent to Securities Exchange Commission (SEC) Chair Gary Gensler, Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam, Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, Federal Deposit Insurance Corporation (FDIC) Acting Chair Martin Gruenberg, Office of the Comptroller of the Currency (OCC)’s Acting Comptroller of the Currency Michael J. Hsu, and Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra.

“We write seeking information about the steps your agency is taking to stop the revolving door between our financial regulatory agencies and the cryptocurrency (crypto) industry,” the lawmakers wrote. “The crypto sector has rapidly escalated its lobbying efforts in recent months, spending millions in an attempt to secure favorable regulatory outcomes as Congress and federal agencies work to craft and enforce rules to regulate this multi-trillion dollar industry.”

They explained:

As part of this influence campaign, crypto firms have hired hundreds of ex-government officials … and we are concerned that the crypto revolving door risks corrupting the policymaking process and undermining the public’s trust in our financial regulators.

“According to the Tech Transparency Project, over 200 government officials have moved between public service and crypto firms, serving as advisers, board members, investors, lobbyists, legal counsel, or in-house executives,” the letter details.

The lawmakers added that they include at least 31 Treasury Department officials, 28 SEC officials, 15 CFTC officials, six Federal Reserve officials, five OCC officials, three CFPB officials, and two FDIC officials.

The letter continues:

These officials join at least eight former members of Congress, 79 former congressional staffers, and 32 former White House officials who are currently advising or lobbying for crypto interests.

“Americans should be confident that regulators are working on behalf of the public, rather than auditioning for a high-paid lobbying job upon leaving government service. The rapidly spinning revolving door out of government and into the crypto sector, however, undermines both imperatives,” the lawmakers stressed.

Their letters conclude with a list of questions concerning each agency’s guidelines to prevent a revolving door with the crypto industry. For example, one question asks about what ethics and transparency rules are in place to ensure the integrity of agency officials. Another question concerns how each agency protects its policies from being unduly
influenced by current or former employees’ potential conflicts of interest. The regulators were asked to provide answers by Nov. 7.

What do you think about the revolving door between financial regulators and the crypto industry? Let us know in the comments section below.



from Bitcoin News

Robert Kiyosaki Warns Stocks, Bonds, Real Estate Will Crash as Fed Continues Rate Hikes — Advises Buy Bitcoin Before Fed Pivot

Robert Kiyosaki Warns Stock, Bond, Real Estate Will Crash as Fed Continues Rate Hikes — Advises Buy Bitcoin Before Fed Pivot

The famous author of the best-selling book Rich Dad Poor Dad, Robert Kiyosaki, has warned that stock, bond, and real estate markets will crash as the Federal Reserve continues to raise interest rates. Noting that the Fed will pivot, he advises investors to buy bitcoin.

Robert Kiyosaki Recommends Buying Bitcoin Before Fed Pivot

The author of Rich Dad Poor Dad, Robert Kiyosaki, has advised investors to buy bitcoin before the Fed pivots, reiterating that the Federal Reserve’s interest rate hikes will destroy the U.S. economy. 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 early Saturday morning that the prices of gold and silver are plunging as the Federal Reserve continues to raise interest rates. He warned that rate hikes will kill the U.S. economy, cautioning that stock, bond, and real estate markets will crash. He stressed that the Fed will pivot, advising investors to buy gold, silver, and bitcoin before the Fed pivot occurs.

Robert Kiyosaki Warns Stocks, Bonds, Real Estate Will Crash as Fed Continues Rate Hikes — Advises Buy Bitcoin Before Fed Pivot

Many economists and strategists have predicted that the Fed will not pivot anytime soon. Strategists and fund managers told Reuters’ Global Market Forum Friday that a Fed pivot is not on the horizon even as over-tightening risks loom. They believe that there is a greater chance of the Federal Reserve raising interest rates too far and tipping the U.S. economy into a recession.

Bank of America’s strategists, led by Michael Hartnett, wrote in a note Friday that it is too early for a Fed policy pivot “absent sudden collapse in inflation & payrolls.” JPMorgan strategist Julia Wang said Thursday that a Fed pivot is unlikely in the near future given persistent inflation. She told Bloomberg: “For us to get to a point where labor market conditions are more fundamentally consistent with the Fed’s inflation target, we think will probably take us to end of next year. So hence, that’s why we expect a pivot really only in Q4 2023.”

This was not the first time that the renowned author said Fed rate hikes will destroy the U.S. economy. He gave a similar warning in September.

Last week, Kiyosaki said the U.S. dollar is toast citing Saudi Arabia’s request to join the BRICS nations. Moreover, he predicted that the U.S. dollar will crash by January and warned about World War III.

The Rich Dad Poor Dad author has been pushing bitcoin for quite some time. Earlier this month, he explained the reason he buys BTC. He has distinguished the largest crypto from fake money on several occasions, emphasizing that the end of fake money is here. Kiyosaki also recently urged investors to get into crypto now before the biggest economic crash happens.

Do you agree with Robert Kiyosaki? Let us know in the comments section below.



from Bitcoin News

Core Scientific Shares Downgraded After SEC Filing Hints at Possible Bankruptcy

Core Scientific Shares Downgraded After SEC Filing Hints at Possible Bankruptcy

One of the largest publicly listed bitcoin miners, Core Scientific, has shaken investors with a recent filing with the U.S. Securities and Exchange Commission that raises the possibility the company may apply for bankruptcy protection. The filing notes that Core Scientific will be unable to pay down debt payments due for Oct. and early Nov. 2022.

SEC Filing Shakes Core Scientific Investors, CORZ Slides 97% in 12 Months

Bitcoin miners are having issues after the price of bitcoin (BTC) has slid roughly 70% against the U.S. dollar since Nov. 10, 2021. Moreover, the network’s mining difficulty is currently at an all-time high, making it harder than ever before to find a block subsidy. At the end of September, Bitcoin.com News reported on Compute North filing for bankruptcy and how it led to Marathon Digital’s shares getting downgraded. Now Core Scientific (Nasdaq: CORZ) seems to be leaning in the direction of filing for bankruptcy protection or some sort of restructuring process.

The news stems from a U.S. Securities and Exchange Commission (SEC) filing Core Scientific filed on Oct. 26, 2022. Essentially, Core Scientific says it will not be able to make loan payments for Oct. and early November, and the team has been engaged with law firms in order to discuss a possible restructuring process or filing for bankruptcy protection. The company cites that its finances have been depleted and it blames the price of bitcoin (BTC) and other types of negative exposure.

“As previously disclosed, the Company’s operating performance and liquidity have been severely impacted by the prolonged decrease in the price of bitcoin, the increase in electricity costs, the increase in the global bitcoin network hash rate and the litigation with Celsius Networks LLC and its affiliates,” Core Scientific’s filing notes. As of Oct. 26, Core Scientific has roughly 24 BTC in reserves which equates to $497,901, using today’s BTC exchange rates.

Since the SEC filing, Core Scientific’s stock CORZ is down 97% year-to-date. Furthermore, on Oct. 28, the B. Riley analyst Lucas Pipes downgraded CORZ to neutral. “While Core has prioritized liquidity since the start of the crypto winter, we believe negative hosting margins (during 2Q) and compressed self-mining margins have exerted extra pressure on the company’s ability to meet its financial obligations,” the analyst noted on Friday.

What do you think about Core Scientific’s SEC filing? Let us know what you think about this subject in the comments section below.



from Bitcoin News

Σάββατο 29 Οκτωβρίου 2022

Bitcoin ATMs Increase in Number in Moscow, Russia

Bitcoin ATMs Increase in Number in Moscow, Russia

The number of bitcoin ATMs has been on the rise in Russia’s capital and the rest of the country, a press report revealed this week. There is demand for the service as it offers easy access to cryptocurrencies, although not at the best exchange rates and still amid regulatory uncertainty.

More Crypto ATMs Installed in Russian Federation Despite Absence of Regulations

With growing interest in cryptocurrencies, the number of devices offering automated teller services for digital assets is increasing, the Russian business daily Kommersant noted in article. Several dozen bitcoin ATMs (BATMs) are now operating across the country, despite the lack of clarity in terms of regulation.

Moscow has taken the lead when it comes to new installations. Quoting one of the companies behind them, Rusbit, the newspaper revealed that 14 new ‘cryptomats’ have appeared in the capital city this year, bringing the total across the Russian Federation to 52 units. Given Russia’s territory and population, that’s still a relatively small number but Rusbit expects a spike in 2023.

Most BATMs allow users to purchase one or more coins with cash or a non-cash payment method like a credit card and then receive the digital money to a crypto wallet. Some also support the sale of cryptocurrency for fiat, but the machines in Russia do not currently offer such cash withdrawals.

Rusbit offers its ATMs for between $1,800 and 3,600 and maintains them for 1% of the turnover. The company says its business is completely legal regarding the law “On Digital Financial Assets” (DFAs) which went into force in January, last year. The devices share data with the Federal Tax Service just like cash registers and verify the identities of customers, keeping records of their crypto addresses.

However, legal experts interviewed by the publication say that the bitcoin teller machines are still “in the gray zone” as far as regulations are concerned. The DFA law only partially regulated cryptocurrencies and related activities while the Russian parliament is yet to review and adopt a more comprehensive bill “On Digital Currency.”

According to Ksenia Petrovets, senior associate at the Birch Legal law firm, the current legislation does not cover operations for the exchange of digital currency for fiat money or other cryptocurrencies and these are neither explicitly prohibited nor directly legalized and regulated.

Alexander Sharapov, a lawyer from KSK Group, pointed out that it’s unclear what legal acts should regulate the interaction between the seller and the buyer of the cryptocurrency in the case of BATMs. Pavel Ganin, partner at A.T.legal, added there is no procedure for consumer rights protection either.

The CEO of defi banking platform Indefibank, Sergey Mendeleev, is worried that the new bitcoin ATMs may be confiscated by the authorities just like those that were operated by Bbfpro. Acting on request from the Central Bank of Russia, law enforcement seized 22 of the company’s machines in 2018.

Nevertheless, demand for this type of service is there, as for ordinary Russians it’s quite difficult to buy coins when they need to find peer-to-peer exchanges, open accounts on English-language platforms, and pass know-your-customer (KYC) procedures, remarked Roman Kaufman, co-founder of Berezka DAO.

The main drawback is the unfavorable exchange rate usually offered by BATM operators, which in Russia is typically 10 to 15% higher than online exchangers. On the other hand, those who just want try crypto out, can use the teller machines to purchase a much smaller amount of digital cash in comparison with trading platforms.

Do you think sanctions that are limiting Russians’ access to major crypto platforms could result in an increase in bitcoin ATM installations in their country? Tell us in the comments section below.



from Bitcoin News

LD Capital Founder Jack Yi Gave a Keynote Address at BWB 2022 in South Korea: Opening of a New Era of Web3

PRESS RELEASE. LD Capital was established in 2016. Its main business involves direct investment and trading. It has established LD Capital X Ecological Fund, Web3 Alliance Incubation Accelerator, and Hero Group Secondary Hedging Asset Management.

In the future, LD Capital’s investment in the field of Web3 will mainly focus on the Ethereum ecosystem, new public chains, GameFi ecosystems, DeFi ecosystems, etc.

LD Capital’s investment philosophy is to grow together with industry pioneers, and to support Web3 entrepreneurs from multiple dimensions such as macro trends, strategic consulting, market branding, and industry relationships. It is the first investor in projects including 50 top industry titles.

Regarding the prediction of future industry development, Jack Yi said that the price of Ethereum in the first two bull and bear cycles has grown dozens of times, and the price will continue to grow dozens of times in the next bull market. At the same time, we will focus on investing in the ecosystem and infrastructure of Ethereum. LD Capital is interested in laying out more technology-oriented and data-oriented ecological applications in the Web3 space. We believe in the tomorrow of Web3 and we look forward to building the industry with these excellent partners.

Please visit the website or follow the LD Capital Twitter feed for more information.

 

 


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.



from Bitcoin News

Egyptian Currency Plunges 15% After Cairo Accedes to Key IMF Exchange Rate Condition

After authorities in Egypt announced the adoption of a more flexible exchange rate regime, the pound exchange rate versus the U.S dollar plunged to 23.09:1, a new low for the currency. Cairo’s apparent devaluation of the Egyptian pound met a key condition set by the International Monetary Fund (IMF) before it eventually approved a $3 billion bailout package for Egypt.

The IMF’s Key Condition

A report has said that the official exchange rate of the Egyptian pound versus the U.S dollar plunged by 15% to 23.09 per dollar after the central bank announced the adoption of a more flexible exchange rate regime. Cairo’s apparent devaluation of the currency came as news broke that Egypt had reached an agreement with the International Monetary Fund (IMF) which will see it receive a $3 billion financial bailout.

Before the pound’s latest slip, the currency had traded at just under 20 units per dollar. Some banks in Egypt, as well as the IMF, argued that the exchange rate, which was last adjusted in March, overvalued the currency. Before that, the pound-versus-dollar exchange rate had remained unchanged for about two years.

As previously reported by Bitcoin.com News, Egypt’s chances of securing a bailout from the international financial institution had hinged on it abandoning the fixed exchange rate regime. As noted in the report, the IMF had similarly demanded the devaluation of the Egyptian pound before it eventually approved a $12 billion loan package back in 2016.

Support From Egypt’s Allies in Gulf Cooperation Council

Meanwhile, in addition to agreeing to the $3 billion loan package, Egypt is set to get $5 billion from the so-called international partners. According to a Bloomberg report which quotes unnamed government officials, the additional funding is intended to help Egypt cover its external financing gaps. Egypt has also requested $1 billion from the IMF’s newly created sustainability fund.

Although Egypt’s latest loan agreement with IMF has not matched expectations, one analyst with the London-based Columbia Threadneedle Investments, Gordon Bowers, said this likely paves the way for the country’s rich allies to step in. He said:

[It] seems that additional GCC [Gulf Cooperation Council] support was contingent on IMF involvement. This is a positive.

Reports suggest Egypt’s GCC allies have pledged over $20 billion in aid, which is expected to come in the form of deposits and investments.

Register your email here to get a weekly update on African news sent to your inbox:

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



from Bitcoin News

Παρασκευή 28 Οκτωβρίου 2022

Federal Reserve Chairman Jerome Powell Faces Political Pressure Over Interest Rate Hikes

Federal Reserve Chairman Jerome Powell Faces Political Pressure Over Interest Rate Hikes

U.S. Senator Sherrod Brown has asked Fed Chair Jerome Powell not to forget the Federal Reserve’s “dual mandate” when making decisions about hiking interest rates at the next Federal Open Market Committee (FOMC) meeting. “It is your job to combat inflation, but at the same time, you must not lose sight of your responsibility to ensure that we have full employment,” the senator told the Fed chairman.

U.S. Senator Reminds Powell of Fed’s Dual Mandate

Federal Reserve Chairman Jerome Powell is facing political pressure over interest rate hike decisions. U.S. Senator Sherrod Brown (D-OH), chair of the Senate Committee on Banking, Housing, and Urban Affairs, sent a letter to Powell on Tuesday asking him to consider the Fed’s dual mandate before making any decision to raise interest rates in the next Federal Open Market Committee (FOMC) meeting.

Senator Brown wrote:

As you know, the Federal Reserve is charged with the dual mandate of promoting maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy.

“It is your job to combat inflation, but at the same time, you must not lose sight of your responsibility to ensure that we have full employment,” the lawmaker stressed.

“For working Americans who already feel the crush of inflation, job losses will make it much worse. We can’t risk the livelihoods of millions of Americans who can’t afford it,” Brown continued, elaborating:

I ask that you don’t forget your responsibility to promote maximum employment and that the decisions you make at the next FOMC meeting reflect your commitment to the dual mandate.

A Fed spokesman reportedly confirmed that Powell received the letter Brown sent, noting that the normal policy is to respond to such communication directly.

Commenting on Brown’s letter to Powell, Mark Zandi, chief economist at Moody’s Analytics, was quoted by CNBC as saying: “Chair Powell has made it pretty clear that the necessary conditions for the Fed to achieve its full employment is low and stable inflation. Without low and stable inflation, there’s no way to achieve full employment.” He added:

He’ll stick to his guns on this. I don’t see this as having any material impact on decision-making at the Fed.

LPL Financial’s chief equity strategist, Quincy Krosby, opined: “The democratization of the Fed is the issue for the market, how much power the other members have vs. the chairman. It’s difficult to know.” Regarding Brown’s letter, the strategist said, “I don’t think it’s going to affect him,” noting:

He knows the pressure. He knows that the politicians are increasingly nervous about losing their seats. There’s very little he could do at this point, by the way, to help either party.

Bleakley Advisory Group’s chief investment officer, Peter Boockvar, commented: “I don’t necessarily think that Powell will buckle to the political pressure, but I’m wondering whether some of his colleagues start to, some of the doves who have become hawkish … Employment’s fine now, but as months go on and growth continues to slow and layoffs begin to increase at a more notable pace, I have to believe that the level of pressure is going to grow.”

Do you think the Federal Reserve is influenced by political pressure regarding interest rate hikes? Let us know in the comments section below.



from Bitcoin News

UniLend V2 Launched: Becomes 1st True Permissionless Lending and Borrowing Protocol

PRESS RELEASE. Launching its much awaited V2 testnet on the Goerli chain today, UniLend team is looking to Revolutionise the Lending and Borrowing scene in the DeFi space. It is the first ever protocol which claims to “Make Every Digital Asset Productive”.

Earlier, UniLend Finance CEO, Chandresh Aharwar had unveiled the version of UniLend Dapp for the first time on Binance Live, calling it “The world’s first true permissionless lending and borrowing protocol”.

The DeFi space has grown multiple fold in the past couple years but is still in its early stages. UniLend V2 will allow anyone to start lending and borrowing of any 12k+ ERC20 tokens, just like anyone can start trading any token on a decentralised exchange without any approval or permission.

The team also announced an Airdrop worth $5000 UFT for early tester which will run for couple of weeks.

In order to enable you to quickly learn about v2 , we advise you to dive in to the documentation:

Core UniLend V2 smart code on Github

Whitepaper

Launched after months of rigorous internal testing, hard work and sweat, the team says it’s confident that with this release, a new era of the financial system will impact the lives of billions of people with inclusion into DeFi. With UniLend V1 Permissionless Protocol being live for more than a year on four major blockchains: Ethereum, Polygon, Binance Smart Chain, and Moonriver with more than $50 Million Flash Loans executed, the team is extremely enthusiastic and optimistic about the V2 Testnet launch.

The lending and borrowing scenario should be 100-times what it is today and UniLend, with its V2, the future of Defi, is taking the first step in that direction, also bringing the dual asset pools for lending & borrowing with price feed oracles and gas optimization. It also boast features like Flexible Lending, Flash Loans, Non Fungible Liquidity, Concentrated Liquidations, On Chain Price Feed, Security and a Seamless User Experience.

UniLend assures users that new developments won’t stop and they will continue to monitor the testnet and release new functionalities and features in the future versions.They understand the need for a seamless, intuitive and easy-to-use user experience for mass adoption and integrate these principles in the code, making the DeFi ecosystem more accessible and grow faster.

 

 

 

 

 


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.



from Bitcoin News

Moldova Bans Cryptocurrency Mining Amid Energy Crisis Caused by War in Ukraine

Moldova Bans Cryptocurrency Mining Amid Energy Crisis Caused by War in Ukraine

The government of Moldova has decided to suspend crypto mining activities in the country as it’s facing a major energy crisis. The move is part of emergency measures to reduce power consumption with energy supplies dwindling due to the escalating conflict in neighboring Ukraine.

Authorities in Moldova Prohibit Bitcoin Minting and Mining Hardware Imports to Save Power

Cryptocurrency mining in Moldova has been targeted amid a deepening energy crisis as the winter approaches. The country’s government took steps this week to limit electricity consumption, including imposing a complete ban on the extraction of digital coins.

The prohibition comes after Moldovan President Maia Sandu urged ministers to introduce restrictions to save power during a meeting of the Eastern European nation’s Security Council. Crypto miners are among the first victims of the cuts, despite their industry not being a significant consumer.

Deputy Prime Minister Andrei Spînu took to Telegram earlier to warn about the expected electricity shortages, blaming Russian air strikes on Ukraine’s energy infrastructure and reduced natural gas supplies by Russia’s energy giant Gazprom.

Spînu asked Moldovans to act in solidarity and with responsibility in order to avoid blackouts and disconnections. He called on businesses to turn off advertising or decorative lighting, adjust production hours, and use generators if possible between 7 a.m. and 11 p.m.

On Tuesday, Moldova’s Commission for Emergency Situations approved a number of measures to address the energy crisis. Besides mining itself, it also banned any imports of crypto mining equipment. Quoted by the RIA Novosti news agency, it stated:

Activities for the mining of crypto assets are prohibited, as well as the import of specialized equipment…, regardless of the location of the importing company.

The authorities in Chișinău also recommended that Moldovans reduce electricity consumption by using elevators less often, especially during peak hours, and limiting the lighting of commercial building facades and billboards. Local governments have been instructed to reduce street lighting as well.

Do you think Moldovan crypto miners will survive the recently introduced energy cuts? Share your thoughts on the subject in the comments section below.



from Bitcoin News

Πέμπτη 27 Οκτωβρίου 2022

Fed Governor Waller Skeptical of Central Bank Digital Currencies — Says He’s ‘Not a Big Fan’ of the Fed Issuing Digital Dollar

Fed Governor Waller Skeptical About Central Bank Digital Currencies — Says He's 'Not a Big Fan' of the Fed Issuing Digital Dollar

Federal Reserve Governor Christopher Waller says he is not a big fan of the Fed issuing a central bank digital currency (CBDC). “It’s just a checking account at the Fed,” said the governor. Federal Reserve Chairman Jerome Powell recently said that the central bank has not decided whether to issue a digital dollar.

Fed Governor Skeptical of CBDCs

Federal Reserve Governor Christopher Waller shared his view on central bank digital currencies (CBDCs) Tuesday during the Money 20/20 conference in Las Vegas. Commenting on the Federal Reserve issuing a digital dollar, he was quoted by Bloomberg as saying:

It’s just a checking account at the Fed. I’m not a big fan of it, but I’m open to having someone convince me that this is something that’s really valuable.

Some people have argued that a Fed-backed digital currency would help ensure the U.S. dollar’s dominance, noting that many countries, including China, are already working on launching their own CBDCs.

The People’s Bank of China (PBOC) has been actively trialing its CBDC. In September, the Chinese central bank revealed its intention to expand the digital yuan test areas. This month, the PBOC said transactions with its central bank digital currency exceeded 100 billion yuan ($13.9 billion) as of Aug. 31.

Waller opined:

It’s not clear why China giving their citizens a checking account at the People’s Bank of China, why that’s going to undermine the reserve role of the dollar in the global payments system.

The Federal Reserve outlined its digital dollar work in a January report titled “Money and Payments: The U.S. Dollar in the Age of Digital Transformation,” calling it “the first step in a public discussion between the Federal Reserve and stakeholders.”

However, the U.S. central bank has not decided whether to issue a digital dollar. Fed Chair Jerome Powell said in September: “We have not decided to proceed and we don’t see ourselves making that decision for some time.” He added: “We see this as a process of at least a couple of years where we are doing work and building public confidence in our analysis and in our ultimate conclusion.” Powell also noted that the decision of whether to issue a digital dollar would need approval from both the executive branch and Congress.

Do you think the Federal Reserve should issue a digital dollar? Let us know in the comments section below.



from Bitcoin News

Τετάρτη 26 Οκτωβρίου 2022

Apple Unveils Stricter App Store Rules for Crypto and NFTs — Critic Says Firm Wants to Keep Money in Its Ecosystem

According to Apple’s latest guidelines for developers seeking to have their apps included in the App Store, crypto exchange applications should only facilitate the transfer of crypto funds to approved exchanges. Where payments are needed to unlock features or functionality, Apple says apps may only “use in-app purchase currencies.”

Only In-App Purchase Currencies May Be Used

In its updated guidelines for apps in the Apple App Store unveiled on October 24, Apple Inc. said crypto exchange apps “may facilitate transactions or transmissions of cryptocurrency on an approved exchange.” In addition, such transactions can only be offered “in countries or regions where the app has appropriate licensing and permissions to provide a cryptocurrency exchange.”

The technology company also clarified that crypto wallet apps “may facilitate virtual currency storage, provided they are offered by developers enrolled as an organization.” However, according to the new guidelines, apps are prohibited from mining crypto and offering “currency for completing tasks, such as downloading other apps.” The only exception to the crypto-mining prohibition is when “the processing is performed off [the] device.”

Besides limiting the use of the crypto-transferring apps, the latest guidelines state that developer apps “may not use their own mechanisms to unlock content or functionality, such as license keys, augmented reality markers, QR codes, cryptocurrencies and cryptocurrency wallets.”

Similarly affected by this requirement are digital gift cards, certificates, vouchers, and coupons which are redeemable for digital goods or services. Apps utilizing the App Store’s in-app purchase function are subject to Apple’s 30% fee, which has been criticized by app creators in the past.

Pertaining to non-fungible tokens (NFT), Apple said apps may use in-app purchase when selling services related to such tokens. The technology giant also clarified that app users are allowed “to view their own NFTs” provided their ownership of the tokens “does not unlock features or functionality within the app.”

Apple also said:

Apps may allow users to browse NFT collections owned by others, provided that the apps may not include buttons, external links, or other calls to action that direct customers to purchasing mechanisms other than in-app purchase.

In a message directed at developers, Apple insisted the updated guidelines ensured “a safe experience for users to get apps” while also giving all developers an opportunity “to be successful.”

NFTs as Gateway to Crypto for Mobile Players

However, some critics including angel investor Daniel Mason have said Apple’s latest guidelines show that the tech firm is determined to stop money from going out of its ecosystem. In a Twitter thread where he offers his thoughts on why Apple has updated its app rules, Mason concedes that the enabling of non-fungible token buying via in-app purchase “paves the way for NFTs as the gateway into crypto for mobile players.”

The angel investor notes, however, that Apple’s prohibition of other purchase methods and the redirecting of users means other providers will not be able to capitalize. He said:

Apple wants to keep $$$ in the ecosystem. You can’t use other payment solutions or ‘include buttons, external links or other CTAs…’ This makes it hard for other providers to plug in and capitalize.

With respect to Apple’s nod to crypto transfers by apps of licensed crypto exchanges, Mason suggested that this requirement is more of a clarification than a new rule.

According to Mason, those seeking to compete with Apple for either primary or secondary NFT purchases are the losers. He identified exchanges such as Opensea and Magic Eden and payment ramps like Moonpay as some of the losers.

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



from Bitcoin News

Treasury Secretary Janet Yellen: US Financial Stability Risks Could Materialize, Cites ‘Dangerous and Volatile Environment’

Treasury Secretary Yellen: US Financial Stability Risks Could Materialize Citing 'Dangerous and Volatile Environment' for the Global Economy

Treasury Secretary Janet Yellen has warned that financial stability risks could materialize in the U.S. Noting that “Inflation remains too high, and we are contending with serious global headwinds,” she stressed that the Treasury is “closely monitoring the financial sector, as global developments have led to increased market volatility.”

Janet Yellen Warns of Financial Stability Risks in U.S.

The Secretary of the Treasury Janet Yellen warned about financial stability risks to the U.S. economy while responding to questions following her speech at the Securities Industry and Financial Markets Association (SIFMA) annual meeting Monday.

Citing a “dangerous and volatile environment” for the global economy, including the surge in energy prices and increased volatility in financial markets, Yellen warned that in the United States:

Financial stability risks could materialize.

“We are closely monitoring the financial sector, as global developments have led to increased market volatility,” Yellen added. “To date, the U.S. financial system has not been a source of economic instability. While we continue to watch for emerging risks, our system remains resilient and continues to operate well through uncertainties.”

Yellen on U.S. Economy and Inflation

Treasury Secretary Janet Yellen also talked about the U.S. economy and inflation in her speech at the SIFMA annual meeting Monday. While noting that “The U.S. economy retains significant strength,” she cautioned:

Inflation remains too high, and we are contending with serious global headwinds.

“Growth is slowing globally. And energy and food prices have risen, driven partly by Putin’s terrible war in Ukraine and the pandemic’s lingering effects abroad. Climate change continues to devastate communities, exacerbating energy and food shortages in Europe and across the world,” the treasury secretary continued. “We are highly attuned to these risks.”

What do you think about the comments by Treasury Secretary Janet Yellen? Let us know in the comments section below.



from Bitcoin News

US Charges Chinese Spies in Scheme to Bribe Government Employee With Bitcoin to Steal ‘Secret’ Documents

Chinese Intelligence Officer Charged in Scheme to Bribe US Government Employee to Steal 'Secret' Documents With Bitcoin

The U.S. has charged two Chinese intelligence officers in a scheme to bribe a U.S. government employee to steal “secret” documents relating to the prosecution of a company in China. The defendants paid the government employee, who is actually a double agent, approximately $61,000 in bitcoin for stealing the information, according to the U.S. Department of Justice (DOJ).

Alleged Chinese Spies Charged in Scheme to Steal Secret Documents

The U.S. Department of Justice (DOJ) announced the unsealing of a criminal complaint Monday charging two Chinese intelligence officers in a scheme to bribe a U.S. government employee and steal “secret” documents. The defendants remain at large.

Guochun He (aka Dong He and Jacky He) and Zheng Wang (aka Zen Wang) allegedly orchestrated a scheme to steal internal files and other non-public information from the U.S. Attorney’s Office for the Eastern District of New York. The information relates to the ongoing investigation and prosecution of a global telecommunications company (Company-1) based in the People’s Republic of China (PRC). According to court documents, the company is the Chinese tech giant Huawei.

“Guochun He and Zheng Wang are charged with attempting to obstruct a criminal prosecution of Company-1 in federal district court in the Eastern District of New York,” the DOJ described, adding:

Defendant He also is charged with two counts of money laundering based upon bribe payments totaling approximately $61,000 in bitcoin, made in furtherance of the scheme.

The Scheme to Steal Secret U.S. Documents

The DOJ explained that starting in 2019, the two Chinese intelligence officers directed an employee at a U.S. government law enforcement agency (GE-1) to steal confidential information about the criminal prosecution of Company-1.

He and Wang believed the U.S. government employee had been recruited to work for the PRC. However, the employee was in fact a double agent working for the Federal Bureau of Investigation (FBI).

The defendants tasked GE-1 with reporting about meetings that GE-1 was purportedly having with prosecutors. In October 2021, GE-1 used an encrypted messaging program to send the defendants a single page from a purported internal strategy memorandum regarding the Company-1 case. The DOJ noted:

The document appeared to be classified as ‘SECRET’ and to discuss a plan to charge and arrest two current Company-1 employees living in the PRC.

GE-1 was paid approximately $41,000 in bitcoin for stealing that document.

Defendant He further told GE-1 that the company will be interested in GE-1 stealing another part of the strategy memorandum. He paid GE-1 an additional payment of $20,000 in bitcoin this month for the information. The DOJ detailed:

If convicted, Guochun He faces up to 60 years of imprisonment and Wang faces up to 20 years of imprisonment.

What do you think about this case? Let us know in the comments section below.



from Bitcoin News

Τρίτη 25 Οκτωβρίου 2022

Israel’s Stock Exchange Unveils Plan to Create Digital Asset Platform and Venture Into Crypto

Israel's Stock Exchange Unveils Plan to Create Digital Asset Platform and Venture Into Crypto

The Tel-Aviv Stock Exchange, the only public stock exchange in Israel, has announced that it is entering the crypto space and creating a platform for digital assets. “The next five years are a critical window of opportunity for TASE to play an active role in the technological revolution of the global capital markets,” said the CEO of the Tel-Aviv Stock Exchange.

Tel-Aviv Stock Exchange Entering Crypto Space

The Tel-Aviv Stock Exchange (TASE: TASE), the only public stock exchange in Israel, announced Monday its new strategic plan for the years 2023-2027. The plan was approved by the stock exchange’s board of directors.

One of the four strategic goals listed was “Creating a platform for digital assets using blockchain (DLT) and venturing into crypto.”

The announcement details, “TASE will promote the implementation of innovative technologies, including DLT, tokenizing of various classes of digital assets and smart contracts,” elaborating:

TASE intends to examine multiple potential action plans, including conversion of existing infrastructure to innovative technologies, deployment of innovative technologies into specialized platforms, offering a basket of services and products for digital assets and more.

Ittai Ben-Zeev, CEO of TASE, commented: “The plan anticipates the needs of the market and takes the development and management of innovative services and products to the next level.” He continued. “We will not only partake in the change but aim to spearhead it; we will leverage our home court advantage in Israel to adopt and develop Fintech and position TASE as a hub of services and products.”

The TASE CEO emphasized:

The next five years are a critical window of opportunity for TASE to play an active role in the technological revolution of the global capital markets.

Ben-Zeev concluded: “TASE will also build up the local capital market’s activity to match Israel’s economic strength and global activity, utilizing this unique opportunity for growth and expansion of its activity.”

What do you think about the Tel-Aviv Stock Exchange entering the crypto space? Let us know in the comments section below.



from Bitcoin News

JPMorgan Chase President: Fed Isn’t Too Hawkish and Crypto Is ‘Kind of Irrelevant’

JPMorgan Chase President: Fed Isn't Too Hawkish and Crypto Is 'Kind of Irrelevant in the Scheme of Things'

JPMorgan Chase’s president that crypto “is kind of irrelevant in the scheme of things.” Commenting on the U.S. economy, he defended the Federal Reserve’s hawkish stance, emphasizing that if the Fed’s action “causes a slightly deeper recession for a period of time” then “that is the price we have to pay.”

JPMorgan Chase President on U.S. Economy and Recession

JPMorgan Chase President Daniel Pinto commented on the U.S. economy and cryptocurrency in an interview with CNBC, published Monday. Pinto is also the global investment bank’s chief operating officer and CEO of its Corporate & Investment Bank.

The 59-year-old executive grew up in Argentina as a child where inflation was often very high, he shared, noting that living with pervasive inflation was “very, very stressful.” Price increases in Argentina averaged more than 300% a year from 1975 to 1991.

Pinto opined:

That’s why when people say, ‘the Fed is too hawkish,’ I disagree. I think putting inflation back in a box is very important … If it causes a slightly deeper recession for a period of time, that is the price we have to pay.

The JPMorgan president stressed that the Federal Reserve cannot allow inflation to become ingrained in the economy, emphasizing that a premature return to easier monetary policy risks repeating the mistakes of the 70s and 80s.

Crypto Is ‘Kind of Irrelevant’

Commenting on cryptocurrency, the JPMorgan executive claims that there is little progress recently in terms of the institutional adoption of crypto. Pinto said:

The reality is, the current form of crypto has become a small asset class that is kind of irrelevant in the scheme of things.

However, he noted: “But the technology, the concepts, something is probably going to happen there; just not in its current form.”

In contrast to Pinto’s belief, many big companies and banks are seeing increased institutional interest in crypto, and are ramping up their crypto services. Nasdaq established a crypto unit in September citing increased demand for digital assets among institutional investors. Financial giant State Street recently said that it sees unwaning demand from institutions. In May, Citi, Wells Fargo, and BNY Mellon invested in crypto firm Talos citing an acceleration in institutional adoption of crypto assets.

JPMorgan Chase CEO Jamie Dimon also believes that blockchain and decentralized finance (defi) are real. However, he said that cryptocurrencies, including bitcoin, are “decentralized Ponzi schemes.”

What do you think about the comments by JPMorgan Chase President Daniel Pinto? Let us know in the comments section below.



from Bitcoin News

IRS Updates Crypto-Related Instructions for 2022 Tax Filing

IRS Updates Crypto-Related Instructions for 2022 Tax Filing

The Internal Revenue Service (IRS) has updated the crypto section in the 2022 draft instructions for tax form 1040. “For example, digital assets include non-fungible tokens (NFTs) and virtual currencies, such as cryptocurrencies and stablecoins,” the tax agency detailed.

New IRS Instructions for Tax Form 1040

The Internal Revenue Service (IRS) released its 2022 draft instructions for tax form 1040 last week. Form 1040 is the tax form used for filing individual income tax returns in the U.S. The new instructions contain several changes relating to cryptocurrency.

The section titled “Virtual Currency” has been replaced with one titled “Digital Assets.” The IRS detailed:

Digital assets are any digital representations of value that are recorded on a cryptographically secured distributed ledger or any similar technology. For example, digital assets include non-fungible tokens (NFTs) and virtual currencies, such as cryptocurrencies and stablecoins.

In contrast, NFTs and stablecoins were not mentioned in the 2021 instructions for tax form 1040.

The instructions explain that taxpayers must check the “Yes” box next to the question on digital assets on page 1 of the tax form 1040 if at any time during 2022, they “received (as a reward, award, or payment for property or services)” or “sold, exchanged, gifted, or otherwise disposed of a digital asset (or any financial interest in any digital asset).”

The 1040 draft tax form for the year 2022 was released in August.

Matt Metras, an enrolled agent and cryptocurrency tax specialist at MDM Financial Services in Rochester, New York, was quoted by CNBC as saying Monday:

I think that’s a good change. People who trade things like NFTs would not think of that as a virtual currency.

He added that the IRS’ “broader language” may include new categories, such as taxpayers receiving digital assets from “play-to-earn games.” Metras noted: “The IRS is always going to be behind the eight ball because they just can’t keep up with how fast the crypto space is changing.”

Miles Fuller, head of government solutions at Taxbit and former senior counsel with the Office of Chief Counsel at the IRS, was quoted by Bloomberg as saying:

The IRS is ramping up by coalescing their terminology around this digital asset term.

“So it means that it’s more likely than not in the near future, we’re gonna see those regs come out and the IRS continuing to move forward with sort of implementation of a regulatory regime,” he opined. “Probably sooner rather than later.”

What do you think about the IRS’ revised crypto-related instructions? Let us know in the comments section below.



from Bitcoin News

Nokia Believes the Metaverse Will Replace Smartphones in the Future

nokia

Nokia, one of the first companies to manufacture a consumer-grade mobile phone system, now believes the metaverse will cause phones to become deprecated. These metaverse experiences will be powered by the use of virtual reality (VR) headsets and augmented reality glasses, and will allow users to interact in several activities. Industrial usage will also be significant.

Nokia Predicts the Fall of the Mobile Phone in Favor of the Metaverse

Nokia, one of the first manufacturers to create a mobile phone system, is predicting the fall of the mobile phone trend known today at the hands of the metaverse. While phones will still be around, metaverse experiences will be the primary form of communication in the second half of the decade.

While augmented reality devices have still ways to go, Nokia believes that there will be a rise in the interest of the audience in such devices, that will power this metaverse push. Nokia’s chief strategy and technology officer Nishant Batra is confident about this. He stated:

Our belief is that this device will be overtaken by a metaverse experience in the second half of the decade.

But there are several factors that must be aligned for this metaverse-based future to come to fruition, per Batra’s statements.

Keys for Nokia’s Digital Future

In the consumer area, Nokia believes that the rise of this digital-based world will depend on several important factors, including the push that companies like Meta are doing to make the metaverse a trend. Also, as the executive has stated before, consumers are more worried about price and forms than institutions. He explained:

Widespread adoption of the technology from both corporations and consumers will be critical for it to really take off, and this will also depend on the availability of affordable, ergonomic wirelessly connected VR and AR devices.

In this sense, prices for popular metaverse headsets have increased lately, as Meta increased the cost of its base Headset to $400 in July. Earlier this month, the company also introduced a premium option, the Quest Pro VR, that has a price of $1,500.

However, monetization of the metaverse will be a difficult thing to attain, as the company believes there will be fragmentation, with monetization depending on the growth of different use cases for metaverse experiences and devices. Industrial adoption will be easier to attain, as some use cases are already being explored.

Nokia predicts that all this connectivity will create security holes, and the company is also working to secure users in the metaverse.

What do you think about the vision that Nokia has for the growth of the metaverse? Tell us in the comments section below.



from Bitcoin News

Binance and Crypto.com Publish Proof-of-Reserve Audits Conducted by Global Auditor Mazars Group

This week two cryptocurrency exchanges provided proof-of-reserves in order to highlight that the trading platforms are backing customer ass...