GoMining: A New Way to Mine Bitcoin

An Analysis Into GoMining’s New NFT, and their Tokenomics

Bitcoin mining company, GoMining, has changed the way we think about bitcoin mining with their GoMining NFTs, giving holders a share of ownership in their mining operations. With over 2,000 BTC paid out over the last two years, GoMining is proving their thesis that bitcoin mining can be easy and accessible for everyone.

With brand ambassadors like Khabib Nurmagomedov and the project’s avid participation in the Bitcoin Mining Council, GoMining understands the importance of the cryptocurrency industry and the role of their bitcoin mining operations within it.

GoMining recently launched a major update to their tokenomics for the GoMining token. The new system has several implications for token and GoMining NFT holders. So let’s dive into what exactly GoMining offers crypto users and their tokenomics system, breaking down the token’s life cycle and distribution.

What is GoMining?

In its truest essence, GoMining is a bitcoin mining company that provides investment vehicles and settlement layers for crypto investors to invest in bitcoin mining and earn returns in BTC without the hassle of operating their own mining equipment. This fundamental revenue stream is the foundation for GoMining’s ecosystem.

The project is able to offer “virtual” bitcoin mining through their GoMining NFT, which is a digital asset that represents a share of hashrate, otherwise understood as computing power. The more computing power you own of GoMining’s servers, the higher the share of mined BTC you get.

A sample of GoMining NFTs at their NFT Marketplace.

GoMining considers the GoMining NFT a new class of digital asset: Liquid Bitcoin Hashrate.

Liquid Bitcoin Hashrate Explained

Liquid Bitcoin Hashrate (LBH) is a new token concept pioneered by GoMining, that is designed to be a way that mining companies can tokenize bitcoin mining computing power.

LBH tokens are similar to staked Ethereum (stETH) in that they can be traded, used as collateral, and used in DeFi protocols. However, there is one key difference. Whereas stETH is a representation of staked Ethereum in a larger pool, LBH tokens represent a real-world asset, namely hashrate, and represent a tangible value of computing power.

The introduction of LBH tokens could have a number of benefits for the DeFi ecosystem. First, it has the potential to create access to bitcoin mining for a wider range of users. Second, like stETH did for ETH, LBH could help to increase the liquidity of Bitcoin, as LBH tokens can be traded on decentralized exchanges. Third, it could help to reduce the energy consumption of bitcoin mining, as users can choose to mine with more efficient mining companies.

Overall, Liquid Bitcoin Hashrate is a new and innovative concept that has the potential to make bitcoin mining more accessible, liquid, and efficient. It’s because of the GoMining NFT that we have a true proof-of-concept for LBH.

The GoMining NFT

GoMining NFTs are digital assets that represent ownership of a part of GoMining’s operation. Specifically, each NFT represents ownership of real-life hashrate, otherwise understood as the computing power for bitcoin mining.

Each NFT has two fundamental traits: their hash power and their electrical efficiency. The more hash power, the more Bitcoin earned. The more electrical efficiency, the cheaper the mining fees are.

Hash power is measured in terahashes per second (TH/s), and electrical efficiency is measured in watts per terahash.

GoMining NFTs earn BTC every day depending on the total Bitcoin mined by GoMining, the hashrate of the NFT, and the mining fees incurred.

Breaking Down the GoMining Token Life Cycle

GoMining’s token update introduces new fundamentals that work to simultaneously increase the token demand, and decrease the token supply over time.

It’s a lot to understand at once, so let’s break it down part by part.

Bitcoin: Where It All Begins

Let’s start with the most fundamental part of the project’s business model — the bitcoin mining process. Basically, the Service Providers send mined BTC to GoMining NFT holders.

Service Providers are simply the miners, the people that go to work at GoMining’s data centers, where they monitor and maintain the bitcoin mining operation.

When GoMining NFT owners receive their distributed BTC, they incur electricity and maintenance fees, just like any mining equipment might. However there are a few differences between GoMining NFT holders and someone with their own mining equipment:

• GoMining NFT holders don’t actually maintain any mining equipment;
• The project’s economies of scale make for cheaper electricity rates;
• The company lets users pay for fees with their earned BTC;
• GoMining lets users get a 10% discount on fees if they pay with GoMining token.

Breaking Down GoMining’s Service Provider Fees

GoMining has been able to lower the cost of electricity across their operations, allowing the servers to obtain more hash power for less. As it currently stands, GoMining has been able to lower their costs to $0.03 per kWh, which is cheaper than electricity rates in the United States, currently averaging at $0.13/kWh.

What GoMining does to maintain sustainable growth is that they then sell the electrical costs at a premium to GoMining NFT owners at $0.05 per kWh. This way, Service Providers can earn on the usage of their electricity.

Enter the GoMining Token

GoMining gives their NFT holders the opportunity to discount 10% of their fees by paying with the GoMining token, effectively creating an electricity rate of $0.045 per kWh.

By utilizing GoMining token as a form of payment for fees, GoMining effectively designed a new demand flow for GoMining token purchases within their ecosystem. This is what is considered a form of demand-side tokenomics, which focuses on generating buying pressure through capturing value. GoMining token is capturing the cost of electricity for the GoMining operation.

Enter the Burn & Mint Cycle

Here’s where things get interesting. All tokens that are used to pay fees go through a “Burn and Mint” process. The key formula to determine how much GoMining token to burn is m*X, where m<1. X represents the total amount of tokens paid for fees, and m represents the “mint coefficient,” which determines the portion of X that is reintroduced into circulation.

Simply put, GoMining’s Burn & Mint is a key mechanism to tighten GoMining token supply over time. By burning more tokens than what is reintroduced back into GoMining’s circulation, the company designed a mechanism that will inevitably decrease token circulating supply.

Combine that with the GoMining token’s demand-side discount fee model, and we can start to envision the spinning flywheel that is GoMining’s tokenomics.

Using the m*X function, we can explore what a decreased GOMINING supply might look like over a series of epochs, each epoch per every 10 million GOMINING burned. The exact value of m is determined through governance, but currently, it stands at m = 0.8.

Where Does the New GOMINING Go?

The newly minted GoMining tokens are dispersed across the Service Providers, the veGOMINING contract, GoMining’s NFT Marketing, and the GoMining team.

The GoMining token distribution is broken down as such:

• Service Providers — 65%: Payment for electricity fees and maintenance costs to run the mining servers;
• veGOMINING Contract — 20%: Weekly rewards for veGOMINING vote holders;
• NFT Marketing — 10%: Coverage for maintenance discounts, bonuses, referral program, and round multipliers. If any GoMining token remains, voters can distribute extra token to NFT holders;
• GoMining Team — 5%: Royalties to the GoMining team for development.

GoMining Service Provider Fee Breakdown

Service Providers continue to afford the electrical costs because of two reasons. The first reason is that, according to GoMining’s contract data on NFT holders’ payments, around 30% of fees are paid directly in BTC. The other 70% are NFT holders that get the 10% discount on fees by paying with GoMining token. Remember, Service Providers are making between $0.015–$0.02 per kWh they spend thanks to the premium GoMining charges, allowing them to stay afloat, even if the circulation of the token is decreasing each epoch.

veGOMINING Contract Breakdown

GoMining will distribute 20% of newly minted tokens to its stakers. Like other ve token models, the staking and locking mechanism will tighten the supply of tokens available by encouraging token holders to lock their tokens for more tokens promised later.

NFT Marketing Breakdown

Some 10% of GoMining tokens is used for NFT promotions, specifically to cover for maintenance discounts, bonuses, earnings from referral programs, and round multipliers. Any extra tokens that remain are then offered to GoMining NFT holders.

veGOMINING token holders determine the distribution of these GoMining rewards through their governance process.

GoMining’s Governance Process

Users that lock their GoMining tokens in the vote-escrow contract will receive voting power to engage in governance processes regarding GoMining rewards distribution, and staking yield in the form of GoMining emissions. It is only through locking tokens that users can access voting power or staking emissions.

GoMining token stakers have a choice between locking their tokens from 7 days to 4 years, with voting power and staking yield increasing linearly as the lock time increases.

Lock a token for four years, and the ratio for veGOMINING/GoMining is 1/1. Lock a token for one year, and the ratio for veGOMINING/GoMining is 1/4.

• 1 GoMining for four years = 1 veGOMINING
• 1 GoMining for one year = 0.25 veGOMINING

Conclusion

Overall, GoMining is a leading player in the bitcoin mining industry. Their innovative approach to bitcoin mining and their unique tokenomics have the potential to change the way we mine Bitcoin for the better.

GoMining’s tokenomics are designed to increase the demand for GoMining tokens and decrease the supply over time. Through demand-side discount fees, to the Burn and Mint cycle, to veGOMINING governance, GoMining is building the best ecosystem for easy and accessible bitcoin mining for everyone.

Check the project’s website.

 

 

 

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from Bitcoin News

Binance Finds Way to Serve Belgian Users After Cease Order

Cryptocurrency exchange Binance said it continues to provide services to residents of Belgium through its Polish entity. The announcement comes two months after the crypto trading company was ordered by the Belgian financial regulator to cease all crypto services in the country.

Binance Offers Belgian Clients to Trade on Its Polish Platform

Belgian customers of Binance, the world’s largest crypto exchange, are currently served by its Polish platform. In a blog post published Monday, the crypto trading company pointed out that the move allows it abide by applicable regulations. It stated:

We are pleased to announce that Binance Poland sp. z o.o. is now the entity that provides Binance services for Belgian residents. By doing this, Binance ensures that it complies with its regulatory obligations and can continue to provide services to Belgian users.

The change comes after in June Belgium’s Financial Services and Markets Authority (FSMA) ordered Binance to “cease immediately all offers of virtual currency services” in the EU nation, accusing it of providing exchange and custody wallet services from countries that are not members of the European Economic Area (EEA).

The FSMA also demanded from Binance to return to Belgian clients all cryptographic keys and crypto assets that it holds for their account, or transfer them to entities governed and authorized by the law of an EEA member state in order to continue to carry out the said activities.

Binance emphasized it will be able to continue serving Belgian users in compliance with local regulatory requirements. “Binance Poland is able to provide crypto exchange and custodian services in line with its registration as a virtual assets service provider (VASP) in Poland,” the exchange noted.

To keep trading on Binance, Belgians will have to accept the Terms of Use of Binance Poland for Belgian users, the company explained, adding: “We may also ask users to resubmit some of the required know-your-customer (KYC) documentation in order to comply with Polish regulatory requirements.”

Binance has been dealing with increased pressure from financial authorities around the world, including lawsuits from the securities and commodities regulators in the U.S. In Europe, Binance withdrew its license applications or canceled its registrations in several countries, including the Netherlands, Germany, Cyprus, and the U.K., indicating it wants to focus on fewer regulated entities on the Old Continent.

In late July, the crypto giant announced it’s restoring full services for its Japanese users on a new platform. In November 2022, acquired the Japan-registered Sakura Exchange Bitcoin (SEBC) after receiving warnings from Japanese regulators that it was operating without the necessary authorization.

Do you think Binance will adopt a similar approach regarding other European markets where it faces regulatory challenges? Share your thoughts on the subject in the comments section below.

from Bitcoin News

South African Crypto Premium Surge After Kraken Abruptly Starts Blocking Deposits by Local Residents

The premium on crypto assets listed on South African exchanges briefly surged to 3.5% after Kraken’s abruptly started blocking deposits from users based in the African country. Some South African crypto experts have linked Kraken’s decision to the Financial Action Task Force’s recent addition of the African country to its greylist.

Impact of the FATF’s Greylisting

According to a report, the U.S.-based crypto exchange Kraken’s recent decision to stop accepting deposits from South African nationals briefly saw the premium on crypto assets like bitcoin surge to 3.5%. Before Kraken’s announcement, the premium or arbitrage, which is the gap between prices of crypto assets on global exchanges and South African exchanges, had reportedly ranged between 0.7% and 1.5%.

As explained in a report published by Moneyweb, Kraken made the sudden decision to block South African deposits after its banking partner placed the African country on its anti-laundering blacklist. Some South African commentators have linked the unnamed banking partner’s move to the Financial Action Task Force (FATF)’s decision to place the country on its greylist.

Earlier this year, a Bitcoin.com News report said the African country had been added to the FATF’s greylist even after it designated crypto assets as financial products. Some analysts predicted that the move would affect South Africa’s ability to secure loans from foreign banks. At the time, the country’s central bank vowed to “strengthen its supervision and further enhance the dissuasiveness and proportionality of administrative snactions issued.”

Kraken Follows Circle in Blocking Deposits by South African Residents

Meanwhile, the report by Moneyweb suggested that Kraken’s abrupt decision had impacted many local crypto arbitrage market participants. However, according to the report, market participants such as crypto arbitrage and forex specialists like Future Forex have since found alternatives.

Commenting on Kraken’s decision, which reportedly came a few months after Circle similarly stopped accepting deposits from South Africans, Omer Iqbal of Fivewest, a crypto arbitrage service provider, said:

“We don’t use Kraken, so our arbitrage services are unaffected. The premiums shot up on Monday [Aug. 28] because there are a number of different arbitrage companies using Kraken as their primary source of trading for their clients. Whenever you get restricted volumes, you get higher premiums, so this is good news for those [of] our clients who are not reliant on Kraken.”

Kyle Dowie, the co-founder of another crypto arbitrage provider Dooya is quoted in the same report stating that Kraken’s announcement had caught many players off guard. However, Dowie hinted that the arbitrage will eventually drop when Kraken unveils a new local banking partner.

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from Bitcoin News

Swiss SEBA Bank Obtains In-Principle Approval to Offer Crypto Services in Hong Kong

Switzerland-based crypto-friendly SEBA Bank announced it has received an approval-in-principle to operate in Hong Kong. The regulatory nod brings the Swiss bank’s local entity closer to becoming a licensed provider of various services for crypto assets in the Chinese region.

SEBA Bank Takes a Step Towards Full Crypto License in Hong Kong

SEBA Hong Kong, a subsidiary of the Zug-headquartered crypto bank SEBA Bank, has been issued an in-principle approval by the Securities and Futures Commission (SFC) of the Chinese Special Administrative region, the bank said on Wednesday.

The approval has been granted for the entity’s application for a license to conduct regulated activities in Hong Kong which will allow it to deal in securities, including crypto-related products such as over-the-counter derivatives and structured products.

Backed by the Swiss banking giant Julius Baer, SEBA Bank provides wealth management, investment, and trading solutions for the digital age. A Hong Kong license will also enable its subsidiary to manage assets for discretionary accounts in both traditional securities and virtual assets.

Hong Kong has been taking steps to revive its status of a global financial hub in the aftermath of the Covid-19 pandemic by creating conditions for crypto business. In June, the city introduced rules for retail crypto trade that require trading platforms and exchanges to obtain special licenses.

“SEBA group wants to service crypto investors in jurisdictions that recognize the value of digital assets. We see enormous potential in Hong Kong’s journey to becoming a global crypto market leader and look forward to contributing to that trajectory,” said SEBA Hong Kong CEO Amy Yu.

When it meets all conditions set by the SFC and gets the license, SEBA Hong Kong will be among the first companies licensed in the Chinese region to offer investment services with crypto capabilities, the Swiss bank pointed out in the announcement.

The group includes firms like Hashkey Exchange and OSL, Bloomberg noted in a report. Hong Kong is the third jurisdiction where SEBA Bank seeks licensing after Switzerland, where it’s supervised by the Swiss Financial Market Supervisory Authority (FINMA), and Abu Dhabi, Reuters reminded.

Do you expect Hong Kong to become a global leader in regulated crypto services? Tell us in the comments section below.

from Bitcoin News

Crypto Analyst Predicts Stablecoin Adoption Boom Even in Face of Hostile Regulation

Jamie Coutts, an analyst from Bloomberg Intelligence, has predicted that stablecoin adoption will grow significantly once the issue of hostile regulations in the U.S. is put aside, noting “adoption under the hood is exploding.” Coutts believes that stablecoin usage may overtake bitcoin usage as more companies like Paypal integrate such assets in their payment structures.

Analyst Says Stablecoin Adoption Set to Grow

While the stablecoin market has been hammered recently due to the lack of clear regulations in the U.S., the adoption of these tools is set to boom enormously in the future. At least, this is the opinion of Jaime Coutts, a Bloomberg Intelligence analyst, who believes that even in the face of “U.S. boomer” regulations, these payment methods are likely to be adopted by companies like Paypal and credit giants like Visa and Mastercard.

In his analysis, Coutts acknowledges that the growth of the stablecoin market was significant during 2022, with total payments of stablecoins in various L1 blockchains reaching almost $6.9 trillion, surpassing the numbers of companies such as Paypal and Mastercard. However, year to date, this number has plummeted by 80%.

Coutts believes that stablecoins are ready to “explode” as more and more institutions try to jump onto the stablecoin bandwagon to follow companies like Paypal, which leapfrogged its competitors with the recent issuance of PYUSD, its in-house stablecoin. Coutts remarked that Visa and Mastercard have invested in integrating their services in open networks.

Coutts stated:

Payments companies that ignore the stablecoin-adoption trend are missing the speed at which scaling improvement is occurring.

Mainstream Use Limited by Transaction Count

However, Coutts says the growth of the stablecoin market will be limited by the capacity of blockchain to support this growth, as open networks will fail to provide the scalability that rails like Visa or Mastercard offer, processing 97% more transactions even with the added hassle of censorship and higher friction for their users.

Coutts pointed out that Ethereum and its set of L2 expansion layers — Arbitrum, Optimism, and Base — are set to be the carriers of this growth, as future updates will make L2 transactions cheaper with the adoption of proto-danksharding, also known as EIP-4844.

Finally, Coutts explained that stablecoin adoption could surpass Bitcoin adoption depending on market factors. He declared:

It’s possible stablecoin users will even overtake bitcoin in the next 3-5 years as network effects of payment and merchant-company integration (e.g. Paypal, Visa, Shopify) …and advances in scaling lay the infrastructure needed for mainstream adoption.

What do you think about stablecoins and their possible adoption boom? Tell us in the comments section below.

from Bitcoin News

Report: Nigerian Central Bank Sued for Dollarizing Economy

In a lawsuit filed by a Nigerian human rights activist, the country’s central bank is accused of failing to stop the dollarization of the economy. According to the activist, the central bank’s unwillingness to stop economic agents from demanding U.S. dollars for domestic transactions has “resulted in the constant devaluation, depreciation and unending plunge of the naira.”

Nigeria’s Foreign Exchange Woes

A Nigerian lawyer and human activist, Femi Falana, is suing the Central Bank of Nigeria (CBN) for allegedly dollarizing the economy. In his suit filed with a Lagos High Court, Falana also alleged that the CBN’s failure to perform its statutory obligations had “resulted in the constant devaluation, depreciation and unending plunge of the naira.”

As has been reported by Bitcoin.com News in the past few months, the Nigerian currency has been losing ground against major currencies. Many Nigerian economic commentators attribute the naira’s constant depreciation to the ongoing U.S. dollar shortage.

According to a report published by Arise TV, the Nigerian human rights activist believes that the High Court can help compel the CBN to enforce relevant provisions of the law.

“Consequently, we urge your lordship to compel the defendant to put an end to the use of [the] dollar as legal tender by enforcing policies and sanctions that will stop the illegal use of dollars as legal tender in Nigeria,” Falana argued.

In addition, Falana, who is a senior advocate of Nigeria (SAN), said the central bank should be forced to declare the naira and kobo as the West African country’s only legal tender. The court should also force the CBN to prosecute anyone who refuses to accept the naira as a means of payment, the lawyer added.

Meanwhile, in an affidavit submitted to support his lawsuit against the central bank, Falana claimed that the apex bank has not stopped schools and landlords from demanding U.S. dollars. The lawyer also accused the CBN of failing to eliminate the multiple exchange rate regime and replace it with a sustainably managed rate within a period of 12 months as promised.

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from Bitcoin News

Binance Mulls Leaving Russia, Limits Options for Russian Users

Crypto exchange Binance considers exiting Russia amid increased scrutiny over its services for users in the sanctioned nation. The news of the potential move comes after the exchange delisted several sanctioned Russian banks from its peer-to-peer (P2P) platform and restricted fiat payment options for Russian traders.

Full Russia Exit Is on the Table, Binance Representative Says

The world’s leading exchange for digital assets, , is currently reevaluating its Russian business, the Wall Street Journal reported. The process includes the possibility of a full withdrawal from what was an important market for the crypto giant. A spokesperson for the company told the publication:

All options are on the table, including a full exit.

The statement comes after a WSJ article suggested last week that Binance is facing legal risks over allegedly helping Russians move money abroad despite the platform claiming it has been abiding by Westerns sanctions rules since last year.

Following the publication of the piece, the exchange briefly renamed the bank cards of Russia’s Sberbank and Tinkoff that were listed among payment options on its P2P platform, as per Russian crypto media reports. Eventually, all sanctioned Russian banks were completely removed.

In May of this year, Bloomberg revealed that Binance is under investigation by the U.S. Department of Justice for allowing Russian customers to make transactions involving at least five sanctioned Russian banks. The financial institutions were placed under sanctions as part of penalties and restrictions imposed by the U.S. and its allies over Russia’s invasion of Ukraine.

Binance Restricts Foreign Currency Transactions for Russian Users

On Monday, RBC Crypto reported that the largest crypto exchange has also banned users based in Russia from transacting through its P2P service with any fiat currency other than the Russian ruble, including U.S. dollar, euro, and Ukrainian hryvnia.

The Russian crypto news outlet quoted a message posted on Binance’s telegram channel informing that “Users residing in Russia can only trade fiat currency in rubles on Binance P2P. Any other fiat currencies are prohibited. The fiat currency RUB is now available only to users who have RU KYC and live in Russia.”

At the same time, Russian citizens living outside of the Russian Federation, who have passed identity verification and provided confirmation of their address can continue trading on Binance P2P with any fiat currency other than ruble, euro, dollar, and hryvnia, the company pointed out.

Do you think Binance will eventually leave the Russian market completely? Tell us in the comments section below.

from Bitcoin News

Shiba Inu’s Shibarium Returns to Full Operation After Navigating Bridge Issues

The Shiba Inu development team has announced that Shibarium is now fully functional after recent challenges where funds became inaccessible in the bridge. Shiba Inu’s Shytoshi Kusama thanked Sandeep Nailwal, the co-founder of Polygon Labs, who stepped in with crucial resources to address the issue.

Shibarium Back Online After Resolving Bridge Glitch, Team Thanks Polygon Co-Founder

Two weeks prior, Shibarium had faced difficulties with over $2 million in cryptocurrency deposits trapped in its bridge. However, on August 28, an update was shared via a blog post confirming that Shibarium’s layer two (L2) was back in action.

It highlighted that Sandeep Nailwal and the Polygon team were instrumental in resolving the situation. “Quickly after the incident began, I called Sandeep from Polygon directly and without a second thought, he helped provide additional resources to ensure a perfect outcome to the situation,” remarked Shiba Inu’s Shytoshi Kusama.

The blog further specified that transfers involving SHIB, LEASH, and WETH would span 45 minutes to 3 hours, while a BONE withdrawal would take up to seven days. In recent weeks, SHIB dipped 14.9% against the U.S. dollar.

However, a glance at the last seven days reveals a rise of over 6% following the wider crypto market uptick after key updates from the Grayscale lawsuit against the U.S. Securities and Exchange Commission.

As of August 29, SHIB claims the title of the second-largest meme coin by market cap and ranks 16th in the global crypto market. The meme token’s market valuation stands at approximately $4.94 billion with $158.55 million in global trade volume.

Data from the Shibarium explorer as of 5:00 p.m. Eastern Time (ET) shows the existence of 157,685 wallets. With a block time set at every five seconds, 358,738 blocks have been mined to date. Moreover, the platform has logged more than 490,000 transactions, with over 132,000 taking place just on August 25, 2023.

What do you think about Shibarium coming back online after the initial bridge issues? Share your thoughts and opinions about this subject in the comments section below.

from Bitcoin News

Bitcoin, Ethereum Technical Analysis: BTC Below $26,000 Ahead of US Consumer Confidence Report

Bitcoin returned to the red on Tuesday, as markets began to anticipate the upcoming consumer confidence report in the United States. The Conference Board index is expected to fall to a reading of 116 in August, from 117 the month prior. Ethereum was also marginally lower.

Bitcoin

Bitcoin slipped slightly during Tuesday’s session, as markets began to anticipate the upcoming consumer confidence report from the United States.

BTC/USD dropped to an intraday low of $25,914.93 earlier in today’s session, following a peak of $26,406.15 on Monday.

The decline sees bitcoin remain in consolidation, however some traders are optimistic about this ending as the week progresses.

Looking at the chart, one of the reasons for this long stretch of price uncertainty is the relative strength index (RSI) failing to surge past resistance.

In this case, the aforementioned ceiling is at the 33.00 mark, which has remained intact for nearly two weeks.

As of writing, the index is tracking at 30.72.

Ethereum

Ethereum (ETH) edged marginally lower on Tuesday, as it continued to trade close to a support point of its own.

Following a high of $1,665.14 to start the week, ETH/USD dropped to a bottom of $1,641.63 earlier in the day.

The move saw ethereum once again fall below a support point of $1,650, which it has hovered around for the last ten days.

As of writing, the index remains in oversold territory, with a reading of 30.92, and appears to be heading for a floor at 29.00.

Should it reach this point there is a strong chance that ethereum will move under $1,630.

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Could today’s report trigger the return of bulls? Leave your thoughts in the comments below.

from Bitcoin News

DeOrderBook Set to Launch on Ethereum Mainnet, Pioneering Truly Trustless DeFi Optionality

PRESS RELEASE. DeOrderBook, a groundbreaking decentralized finance (DeFi) optionality protocol, is gearing up for its Ethereum mainnet launch, ushering in a new era for DeFi users who seek unprecedented capital flexibility, advanced hedging mechanisms, and sustainable real yield.

At launch, the protocol supports $WBTC and $USDC although the team is actively working on support for further coins and chains.

What makes DeOrderBook especially interesting?

DeOrderBook’s unique design represents a significant departure from traditional DeFi protocols by providing an automated way to monetise an optionality position — think about it as a Uniswap for optionality. We created a coherent demand-and-supply system for the $DOB token to act as the magnet for optionality-writing liquidity while simultaneously providing a robust auction-like mechanism for the demand side that catches the whole range of optionality-rights generated by the protocol. Combined with fee-sharing, this gives DeOrderBook a significant advantage in mechanism design that is built around sound tokenomics.

Moreover, from a security perspective, DeOrderBook’s strategy is that the big movers in DeFi need a protocol where their risk can be completely bound. To deliver on that premise, we designed a protocol that is truly trustless (i.e. 100% DeFi) where not only we managed to eliminate all sorts of counterparty (including custodial risks) and credit risks but even removed oracles completely from the design by working through the fundamentals of options design and game theory.

The result is an optionality protocol that is unparalleled in its utility and security in either CeFi or DeFi. This innovative model guarantees a fair and transparent trading environment that eliminates “black box mechanisms” and other sources of catastrophic failures (e.g. oracle hacks, bad debt, or custodial malfeasance) that precipitated the bearish cycle we see in crypto today (i.e. preventable collapses of Terra, 3AC, and FTX).

How to participate

On DeOrderBook, the main user action is the placement of DeOrders, which work similarly to warrants in CeFi as a minimal-risk way to write upside or downside optionality. Once a user places their funds in a DeOrder, they instantly begin accruing rewards in $DOB, the platform’s native token. Even if a DeOrder doesn’t end up ‘in the money’, users are able to receive back the majority of their original collateral (plus their $DOB), less a 0.2% fee.

Join the Gerege NFT Program

DeOrderBook’s launch is also accompanied by its unique Gerege NFT program which is designed to further incentivize user engagement with the protocol. The NFT program was inspired by ancient passports granted by the Mongolian empire to facilitate free trade, and in the same vein this program allows users to access the maximal level of functionality offered by the protocol.

NFTs can be leveled up through active participation in the community, which in turn increases the percentage of fee-sharing that users can enjoy. In addition, users are incentivized to get in early with a unique system of pricing mechanics with a 25% increase every 500 mints, subject to change by the community. A 1 year guaranteed buyback scheme for the first 500 NFTs minted ensures that early adopters get a risk-free trial of the benefits of holding a Gerege NFT.

The first collection of Silver Gerege NFTs is already live on the Ethereum mainnet and currently on private mint. In order to whitelist all you have to do is register and validate your wallet. Users with mainnet balances of 0.005 $WBTC will be eligible for whitelisting.

DeOrderBook’s Mainnet Launch

By combining advanced tokenomics, oracle-free operations, and a user-centric approach, DeOrderBook’s imminent mainnet launch is set to disrupt the DeFi landscape, pushing the boundaries of what has been done before and empowering every user to make the most of their crypto holdings.

To learn more, follow DeOrderBook on Twitter or join the Discord to get the latest updates on the protocol. The protocol’s Youtube channel features deep dives and tutorials into the protocol, while its Mirror page regularly updates with new articles and community updates.

About DeOrderBook

DeOrderBook is a truly trustless optionality protocol that offers real yield, works without oracles, and solves capital inefficiency in both DeFi and TradFi optionality markets. Users may join its fee-sharing NFT program to further boost their rewards. DeOrderBook is launching eminently in the Ethereum mainnet with a Bitcoin optionality market.

Press Contact:

Renee

Product Marketing Manager

[email protected]

 

 

 

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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.

from Bitcoin News

Governments See CBDCs Making Their Countries ‘More Economically and Financially Efficient’ — Venom Foundation CEO

According to Louis Tsu, the CEO of Venom Foundation, governments that are seeking to introduce central bank digital currencies (CBDCs) are not being driven by the fear that privately issued digital currencies may soon become the preferred method for cross-border and micropayments. Instead, some countries view CBDCs as a technology that could make their countries “more economically and financially efficient” and this ultimately improves their competitiveness.

Regulated Digital Assets ‘a Requirement for Mass Adoption’

While stablecoins issued by private entities such as Tether are increasingly seen as the go-to digital currencies when moving funds across borders, Tsu told Bitcoin.com News that CBDCs may turn out to be a better option because they are underpinned by regulation. According to the CEO of Venom Foundation — a platform that aims to create a bridge between traditional finance and the Web3 world — such an attribute can be a key “requirement for mass adoption and harmonization of markets and economies.”

When asked about claims that CBDCs could be used by governments to exercise greater control over people’s financial lives, Tsu insisted that the issue is not necessarily about the technology but those in control of it. To support his argument, Tsu pointed to Paypal, a privately owned entity that recently announced the launch of its own stablecoin — the PYUSD.

The CEO said Paypal can unilaterally freeze or pause the transfer of PYSUD if this is in line with its fiduciary and legal responsibilities. He suggested that the same argument can also be applied to central banks when it comes to their ability to censor CBDC transactions.

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Meanwhile, in other answers to questions sent to him via Telegram, Tsu also offered his thoughts on how governments can use CBDCs to lower the cost of sending remittances. He further offered his views on what he sees as challenges that could hinder the adoption of CBDCs. Below are all of the Venom Foundation CEO’s written answers to questions sent.

Bitcoin.com News (BCN): Why do governments and central banks around the world feel the need to introduce CBDCs? Is it driven by the fear of crypto becoming the go-to mode of cross-border payments and micropayments?

Louis Tsu (LT): It is not fear of crypto that is driving this massive interest in CBDCs. Sovereign nations see a far greater opportunity to access new digital asset classes, be more economically and financially efficient and ultimately raise the competitiveness of their country.

This is game theory in full swing, no country wants to miss the boat. The smart money already played their hand. There are hundreds of billions of dollars of tokenization projects already live. What’s a token? There are non-fungible tokens, NFTs, which could represent a financial product like a bond or fungible tokens which is a unit of value that can represent a dollar or a euro. CBDCs are a subset of this bigger opportunity and I believe governments want in, this can be analogous to the last time when fibre optics were being laid down, the digital currency or the CBDC is the final crucial component.

BCN: Why would users — both institutional and retail — want to adopt CBDCs when they already have stablecoins to serve this purpose?

LT: As we are not yet in this scenario, I can only assume how this future will unfold. For centuries we have had private money issued by individuals and companies which went into steep decline as central banks were formed and more so since the Modern Monetary Theory (MMT) garnered more support. Nevertheless, this trend is going in reverse with the advent of the internet and blockchain technology progressively private money has come back into circulation.

My definition of private money is not exclusively stablecoins like USDT which alone has risen from nothing to about $150 billion in a few years. Let’s take the JP Morgan coin used by its clients to settle transactions since 2019. It has already handled $300 billion worth of transactions. There are multiple commodity stablecoins backed by various precious metals. Tokens both fungible and non-fungible are daily being created to represent value that touches all different parts of our economy.

Many of these instruments are ahead of regulation and thus self-regulating. As CBDCs roll out at both retail and wholesale levels, they will not be in isolation but underpinned by regulation and this is a requirement for mass adoption and harmonization of markets and economies.

BCN: It seems cross-border payments are still complicated and expensive. When you send money to someone in another country, it goes through a complex web of interlinkages between banks. The fees for this could go as high as 6.5%, which may be a lot for the poor immigrants sending remittances to their loved ones back home. Do you foresee CBDCs getting this right?

LT: Things have already improved dramatically compared to 6.5%. My Kenyan colleagues used to send money across the country in a bus, back in the day the amount that was skimmed off the top was erratic and occasionally the envelope never even arrived!

Can CBDCs improve? Yes, they can, but this is only a part of the picture. Technology and the private industry are moving far quicker than governments can deploy CBDCs. There are an array of different types of cryptocurrencies, stablecoins and institutional tokens already on the market. The delivery mechanism to retail is via a ‘wallet’ and already we see the green shoots of a multitude of blockchain use cases, for example, aid.technology is currently delivering humanitarian aid through a digital wallet.

By the time governments start to deploy CBDCs, there will be wallets with proven applications such as remittances, lending and borrowing protocols battle-tested for the retail market. The CBDCs will play a critical role in mass adoption because they will have government backing and hence acceptance in every aspect of everyday life.

BCN: According to reports, Venom is working with the relevant authorities in Kenya, Bangladesh, and a few other countries to increase financial inclusion. Micropayments are at the heart of financial inclusion. Can you talk about how Venom is using blockchain to bring financial services to the underserved?

LT: Venom’s vision is to leverage its highly scalable technology to bring blockchain into many emerging markets including Kenya and Bangladesh. In tandem with regulation from the Abu Dhabi Global Markets (ADGM), we are seeing a smooth acceptance thus far.

Micropayments are at the heart of helping people. It can touch the lives of millions who do not even have the basics like a bank account. Through a digital wallet, small farmers who need a $10 loan for fertilizer, a refugee who wants to send $0.50 to a family member peer-to-peer, or an entrepreneur housewife working from home performing part-time remote administration services can invoice cross-border a dollar-a-day; all done with minimum transaction costs.

At the same time, this low-income category currently has virtually no option to save for the future. Once a digital wallet is in their hands, the option to ‘stake’ and earn interest on savings will become highly attractive. Especially since very small sums of money can be invested into “staking” again with little friction.

BCN: While CBDCs may offer certain benefits, many fear that they will give governments greater control over people’s financial lives and transactions. To illustrate, the Brazilian central bank recently published the CBDC pilot project on its Github profile and it is said that developers have since discovered that the central bank has the ability to freeze users’ accounts, decrease target balances, confiscate, and mint new units of the digital currency. Do you think such red flags could hurt the adoption of CBDCs?

LT: For decades, global financial systems have had AML/KYT/KYC monitoring systems and if a transaction breaches a rule or demonstrates suspicious activity, the institution has a fiduciary and legal responsibility to act. It is not the technology that is invasive, it is the policymakers and they will differ from one country to another.

All the above actions you enumerate are already possible. For example, “minting new units” has been a common practice since the 1970s by central banks. They call it quantitative easing.

These are design decisions. The following example is not a government but a private company Paypal that issued a stablecoin, PYUSD. Paypal can freeze an address, i.e. an account. They can pause all transfers and mint more tokens whenever they want.

Just like anything, give a man a hammer and he can build a house or hit someone over the head.

BCN: What are wholesale and retail CBDCs and why is there a need for two different sets of CBDCs?

LT: For the sake of clarity when I talk about CBDCs I’m also referring to digital currency, which could be a stablecoin either private, institutional or sovereign.

Wholesale is for corporate and retail is for individuals.

The difference between the two are policies. In wholesale the rules are far more complex, with multiple asset classes, vast account limits, stringent risk management, and more detailed regulation, with bigger sums of money; settlement and clearing are points of pain. For many years, companies have been using blockchain DLT to develop solutions to solve some of these issues. However, I personally see we have reached a tipping point.

It is a major advantage for a CBDC design if the technology supports account abstraction as in the Venom blockchain. Put simply, it means rules such as wholesale risk management can be natively programmed into the account.

BCN: In your opinion, what are the biggest roadblocks to large-scale adoption of CBDCs?

LT: Wealthy economies do not need digital currencies as much as developing economies, so if we slice the world in two, I would say governments and central banks in rich countries do not have the same incentives as developing countries. Developing countries view the shift to blockchain in a holistic way, it is not a currency in isolation, it is a regime of transparency, access to capital markets, improved supply chain, and tokenization of their raw assets. So I think we will see a slow lane and a fast lane in the near future.

Regulation has to be resolved for large-scale adoption and it is not any regulator trying to throw a spanner in the works. It is just a highly complex system that has to be coordinated on a global basis. Trying to harmonize different countries and regions is a time-consuming task.

What are your about this interview? Let us know what you think in the comments section below.

from Bitcoin News

Vietnam, the Philippines, and Brunei to Join ASEAN QR Payment System to Reduce Dependence on US Dollar

Vietnam, the Philippines, and Brunei will join a QR payment system to settle cross-border payments using local currencies within the Association of Southeast Asian Nations (ASEAN) bloc. The network, already being used between Indonesia and Malaysia, aims to interconnect all ASEAN nations to reduce their dependence on the U.S. dollar.

Vietnam, the Philippines, and Brunei to Join ASEAN Payments System

Vietnam, the Philippines, and Brunei will join a payments initiative that aims to connect all countries of the Association of Southeast Asian Nations (ASEAN) bloc, according to Perry Warjiyo, governor of the Central Bank of Indonesia. The payment system, which uses QR codes to simplify the settlement of cross-border payments, uses national currencies to reduce the bloc’s dependence on the U.S. dollar.

Warjiyo detailed that Vietnam is currently in talks with the local industry to agree on a national QR system and is expected to join the system later this year, while the Philippines is organizing industry leaders to achieve regional connectivity. Meanwhile, Brunei is in the initial steps of regulating its internal payment industry.

The payment system has been operating between Indonesia and Malaysia since May, allowing citizens of both countries to travel between the nations and pay using QR codes, simplifying the process of making cross-border payments.

Warjiyo detailed that Indonesia, Thailand, Malaysia, and Singapore were working to implement bilateral and multilateral payments using this system, indicating that the final goal was to interconnect Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. Warjiyo stated:

This commitment will help facilitate seamless and secure cross-border payments. Gradually all of the countries will be connected in their payments with local currencies being used.

De-Dollarized Payments a Priority

Countries of the ASEAN bloc have declared that moving away from the U.S. dollar in financial settlements is a priority, including this issue as part of the final declaration of the 42nd ASEAN Summit held in Indonesia in May. At the time, leaders of ASEAN stated that they “encourage the use of local currencies for economic and financial transactions among ASEAN member states to deepen regional financial integration.”

Indonesian President Joko Widodo has also reinforced the need to stop using foreign payment systems and focus on national currencies to avoid “possible geopolitical repercussions,” citing the sanctions enacted against Russia as an example.

What do you think about Vietnam, the Philippines, and Brunei joining an ASEAN-wide payment system? Tell us in the comments section below.

from Bitcoin News

High Proliferation of Crypto Scams in Africa Linked to Limited Educational Efforts — Mitroplus Labs Founder

According to Ivaibi Festo, the founder of Mitroplus Labs, a crypto and blockchain education organization, cybercriminals continue to find success in Africa because not enough is being done to educate residents on the basics of digital assets or the technology that underpins such assets. To make matters worse, the few African individuals who have made it either as traders or entrepreneurs often lack the desire to help their fellow residents become acquainted with the basics.

Using Education to Strike Back Against Scammers

However, Festo, who claims to have bought his first bitcoins in 2009, said African governments’ negative disposition as well as the stigma surrounding cryptos and the blockchain industry have helped convince some successful traders and entrepreneurs to reconsider.

Meanwhile, the Mitroplus founder told Bitcoin.com News that in addition to educating residents and prospective users, his organization is also working to include regulators and legislators in its classes. Festo argued that doing this ensures regulators and legislators are better informed when dealing with crypto assets.

Concerning the approach to regulating cryptocurrencies that African countries should adopt, Festo said governments should consider creating “a friendly environment for this tech to grow as they study and learn how to regulate them” as the biggest and most valuable industry participants will only “run to places where they are welcome.”

Below are Festo’s written answers to all questions sent to him via Whatsapp.

Bitcoin.com News (BCN): The utility of crypto assets and blockchain has become more apparent in the past few years. However, the increasing number of scams or criminals who hide behind cryptocurrencies like bitcoin has slowed the uptake of the technology by those who need it most. In your opinion, why are criminals and scammers still able to steal using the same crypto scams?

Ivaibi Festo (IF): As would be the case with any other new technology, many people still know little about cryptocurrencies and their underlying technology, architecture, white papers, security etc. And the fact that there are still little or no regulations in many countries, criminals are taking advantage of the anonymity, the hype and the fear of missing out (FOMO) to target their prey. Entry into cryptocurrencies hasn’t been easy for at least 95% of the adopters but this can change with education. Some bad actors in the space intentionally scam people using hype, greed & FOMO and the decentralised nature of the industry which allows them to do this for quick money even without showing their faces.

BCN: Many players in the crypto industry agree that a lack of knowledge or the right information on cryptocurrencies is one reason why criminals continue to succeed in their endeavors. However, in places like Africa where many victims of crypto scams are found, there is a sense that the current efforts to educate prospective crypto users fall short of what is expected. Do you agree that not enough is being done to raise awareness or educate prospective users?

IF: I agree that not enough has been done to create awareness in Africa for blockchain and cryptocurrencies. This is a tech that not so many people went to school for, many blockchain participants and cryptocurrency traders quietly go about their business without needing so much external interaction and interference. This leaves the other population at the mercy of network marketers who are eager to earn commission from unregulated crypto projects or initial coin offerings (ICOs).

Unfortunately, this has created a stigma in the African market which can only be healed through education and awareness campaigns run by genuine and successful industry leaders. The only problem is that there is not enough to be earned from education and raising awareness hence there is often little or no motivation for this. However, the negative government attitude towards cryptocurrency and the industry at large as well as the public’s outcry over the growing number of crypto scams are factors that motivate some leaders to act. They understand that this problem affects everyone including both legit and non-legit industry players.

BCN: Scammers predate cryptocurrencies and they will certainly be around for years to come. How, then, can players in the crypto industry make it more difficult for criminals to successfully defraud victims using the allure of cryptocurrencies like bitcoin?

IF: Through education and awareness even in rural areas. Mitroplus Labs is setting up blockchain literacy centres in cities and small towns of Africa for free blockchain, Web3, metaverse and cryptocurrency education. Mitroplus is also blending education and earning with entertainment through free online blockchain and fintech classes, marketmania competitions, translation of the tech and new updates into local languages and Gorilla hub competitions for blockchain startups.

For Mitroplus Labs, this is a better solution to the problems than migrating to crypto-friendly countries as many successful traders and blockchain enthusiasts from the African continent have done. Since there is not any sort of fee collection or deposit-taking, this approach comes with no risk of financial loss to scholars and affiliates. Some governments have welcomed this for their learning as well, a step towards regulations.

BCN: In one of your past interviews, you suggested educating government officials and regulators as one way of driving adoption. Why do you believe that this can make a difference?

IF: Blockchain and cryptocurrencies are disruptive technologies to mainstream financial architecture and other sectors. This is a technology that no one went to school for, all governments are learning. Thereafter they can be able to regulate what is known. So education to governments and regulatory aid is one good step towards citizen protection.

BCN: Since the start of the year 2023, the U.S. government has upped the ante against digital assets. We have heard of the so-called Operation Chokepoint 2.0 and we have seen how the Gary Gensler-led SEC is attempting to hound out crypto firms. In contrast, Asian countries and the EU have adopted a very different approach. In your opinion, what is the most effective approach that African governments should follow when seeking to regulate cryptocurrencies?

IF: We must understand that African governments are younger than many Western governments if not all. Therefore, African governments should now understand the politics behind the whole monetary system. In disruptive innovations, there is usually chaos before order, they should create a friendly environment for this tech to grow as they study and learn how to regulate them.

The biggest and most valuable industry participants will run to places where they are welcome. We have seen this in UAE and Hong Kong which are now earning a lot from the presence of these billion-dollar enterprises. This change in the financial and monetary system is going to be bigger and more impactful than any other that the world has ever seen. All countries have an equal opportunity to participate in this transition.

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

from Bitcoin News

UN Secretary General Antonio Guterres Calls for Reform of ‘Outdated, Dysfunctional, and Unfair’ Global Financial Architecture

Antonio Guterres, Secretary General of the United Nations (U.N.), has noted changes that need to happen with today’s financial institutions to fit into the current multilateral world. During the recent BRICS leaders summit, Guterres said that the current “outdated, dysfunctional, and unfair” financial system needs to be reformed, including Bretton Woods institutions.

UN Secretary General Antonio Guterres: We Must Urgently Reinvigorate Multilateralism

Antonio Guterres, Secretary General of the United Nations (U.N.), has called to embrace cooperation and multilateralism, explaining that there was “no choice” as the world becomes more multipolar. At the recent BRICS leaders summit in Johannesburg, Guterres stated that multipolarity was not guaranteed to achieve peace and that more should be done to grow a “global community.”

Guterres blasted the global establishment, stating:

As the global community moves towards multipolarity, we desperately need a strengthened and reformed multilateral architecture based on the U.N. Charter and international law.

Furthermore, Guterres acknowledged current institutions were outdated and answered to a deprecated world configuration, calling for reforms that would “reflect today’s power and economic realities, and not the power and economic realities of the post-Second World War.”

“This is particularly true of the Security Council of the United Nations and the Bretton Woods institutions,” Guterres specified, including the International Monetary Fund and the World Bank in his call for reform.

The U.N. Security Council has been widely criticized as small and ineffective by several scholars consulted by the Carnegie Endowment for International Peace.

Financial System Reform

Guterres reinforced the need to reform the current financial system as part of what he called “priorities for action and justice.” Nonetheless, he recognized that this is unlikely to happen quickly in today’s geopolitical situation.

Guterres stated:

Redesigning today’s outdated, dysfunctional, and unfair global financial architecture is necessary, but I know it won’t happen overnight. Yet we can – and must – take practical action now.

The BRICS bloc, integrated by Brazil, Russia, India, China, and South Africa, has been moving to create a new alternative financial architecture away from Western traditional power centers and the influence of the U.S. dollar. The BRICS “Johannesburg II Declaration” stressed the need to transact in national currencies and called for the consideration of “the issue of local currencies, payment instruments and platforms” for the next summit that will be held in Kazan.

What do you think about Guterres’ criticism of current financial institutions? Tell us in the comments section below.

from Bitcoin News

Venezuelan President Nicolas Maduro Calls for De-Dollarization of the Global Economy

Nicolas Maduro, the president of Venezuela, has called to de-dollarize the global economy due to the difficulties the current system brings to emerging countries affected by U.S. sanctions. In a message directed to the BRICS leaders, Maduro called to establish alternative settlement systems using national currencies.

Venezuelan President Nicolas Maduro Reinforces the Need to Create a De-Dollarized Economic System

Nicolas Maduro, President of Venezuela, has called for creating an emerging economic system away from the dominance of the U.S. dollar. In a message sent as part of Venezuela’s participation in the BRICS leader summit, held recently in Johannesburg, Maduro stated the reality of the geopolitical situation of the last years has reinforced the need for the de-dollarization of the world economy.

Maduro said this had to be done due to the “indiscriminate use and abuse of the U.S. dollar as a tool for waging an economic war against the free people of the world.”

Venezuela has been the target of economic sanctions that have affected the sale of oil and other operations of PDVSA, the state-owned oil company, and have blocked U.S. nationals from financing or purchasing the petro, the Venezuelan cryptocurrency asset.

The Damages and a New Way

These “imperialist” sanctions and economic warfare measures, Maduro stated, have touched at least 28% of the world population in 30 nations. “The damage to our economies and development models is undeniable,” Maduro explained, detailing that these measures affected the human rights situation in each of these countries.

Talking to the leaders of the nations of the BRICS group, integrated by Brazil, Russia, India, China, and South Africa, Maduro called for configuring a new financial system to allow BRICS countries and its allies to settle transactions with “new physical and digital tools.”

He mentioned a basket of currencies as one of the tools to reach this objective. Maduro also referred to the need to create new sources of financing to contribute to the recovery and growth of emerging economies. Furthermore, he offered Venezuela’s experience in countering the effects of sanctions on the BRICS bloc to “dismantle the financial and commercial domination system.”

Venezuela presented an official application to be part of the BRICS bloc on August 1, but it was not selected amongst the new six nations invited to be part of the group starting next year.

What do you think about Nicolas Maduro’s call to create a new de-dollarized alternative financial system? Tell us in the comments section below.

from Bitcoin News

Binance Removes Sanctioned Russian Banks From P2P Platform

Crypto exchange Binance has dropped Russian banks under sanctions from the payment options on its peer-to-peer (P2P) platform. Russian traders can no longer use cards issued by these banks to make payments while transactions in foreign fiat currencies are also restricted for them.

Binance No Longer Offers P2P Traders Option to Pay Through Sanctioned Russian Banks

The world’s largest digital asset exchange, Binance, has dropped Russian banks placed under Western sanctions from its P2P service, the Wall Street Journal reported. The move comes after the crypto giant faced criticism for facilitating payments through such institutions.

A few days ago, Russian crypto media revealed that Binance has renamed bank cards issued by Russia’s largest bank, Sberbank, and the neobank Tinkoff to “green local card” and “yellow local card” after the publishing of an earlier WSJ article alleging that the exchange is helping Russians move money abroad in circumvention of sanctions.

Unprecedented restrictions have been imposed on Russia’s finances since last year over Moscow’s invasion of neighboring Ukraine. In May, Bloomberg unveiled that Binance is being investigated by the U.S. Justice Department for allowing Russian clients to make transactions involving at least five sanctioned Russian banks.

According to the Russian crypto news outlet Bits.media, Binance users from Russia still have 15 payment methods at their disposal to convert rubles into cryptocurrencies, including Raiffeisenbank, Russian Standard Bank as well as the Payeer and Advcash payment systems.

The Russian-language crypto news portal Forklog noted that Russian residents are not allowed to use any fiat currencies other than the ruble. When they try to buy or sell foreign fiat, they are prompted to “Choose your local currency for P2P trading.”

“This is required in accordance with the Binance rules for the country you specified during verification,” the message further reads. Access to P2P transactions in U.S. dollars and euros on were restricted for Russians in compliance with the 10th package of EU sanctions on their country.

Do you think Binance will introduce further restrictions for Russian users on its P2P platforms? Tell us in the comments section below.

from Bitcoin News