The Reserve Bank of Fiji, Fiji’s central bank, reminded Fijians that cryptocurrencies were not accepted as legal tender in the country. In a recent press release, the institution reinforced that purchasing cryptocurrency with funds held in Fiji was illegal and that penalties could be applied to citizens doing so without the bank’s approval. Reserve Bank […]
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Central Banks Kept Purchasing Gold in February; China Continues Gold Run
Central banks kept up demand for gold in February, registering net purchases of 19 tonnes. Albeit the purchasing trend continued, purchases fell 58% compared to January’s demand, according to IMF and World Gold Council numbers. China reported the largest gold accumulation, acquiring 12 tonnes to maintain a 16-month gold purchasing streak. Gold Demand Still High […]
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Avalanche Announces Eligibility Criteria for Meme Coin Purchasing Program
The Avalanche Foundation, a non-profit organization seeking to support the avalanche ecosystem, has announced the rules covering its already active meme coin purchasing program. The institution has defined the holder count, concentration, liquidity, liquidity providers, lifespan, and market cap requirements that these projects need to fulfill to get selected and informed more projects are being considered on an ongoing basis.
Avalanche Announces Meme Coin Purchasing Framework
The Avalanche Foundation, a non-profit entity that supports initiatives on the Avalanche ecosystem, has announced the requirements to invest in meme coins using the 0 million Culture Catalyst fund launched in 2022. The foundation had previously reported on the purchase of these tokens but had not specified the conditions these meme coins should fulfill to be eligible for this purchasing plan.
For any meme coin project to be eligible for these purchases, it must have at least 2,000 unique holders, and the top 100 token holders should hold less than 60% of the total supply. In addition, the project should have a liquidity of at least 0,000 and 50 or more liquidity providers unless most of the liquidity has been burned.
Also, the meme token should natively exist only as part of the AVAX chain and should have a fully diluted market cap of over million, with a trading volume of more than 0,000 in AVAX decentralized changes for at least two weeks.
The foundation remarked on the importance of this kind of tokens, stressing they “generally have high community value because of the engagement, community spirit, and culture that they engender, which goes beyond the humor and virality that they embody.”
Nonetheless, it explained that even if a meme coin fulfills all of these requirements, it does not mean that it will invest in it automatically and will use additional criteria for this task. “The Foundation reserves the right to determine which coins to include in the Culture Catalyst program in its sole discretion,” it concluded.
What do you think about the requirements imposed that meme coins need to fulfill to be eligible for the Avalanche Foundation meme coin purchasing program? Tell us in the comments section below.
Cato Institute Experts: Dollarization ‘Protects Ordinary People’s Purchasing Power’
According to Cato Institute experts, full dollarization of the Argentine economy helps to protect “ordinary people’s purchasing power” from corrupt politicians and “often subservient—or simply incompetent—central bankers.” The experts said the loss of seigniorage should be seen as “an infinitesimal price to pay for the advantages of dollarization.”
Fighting Inflation With Dollarization
Argentina should consider dollarizing its economy because this “protects ordinary people’s purchasing power” from corrupt politicians and “often subservient—or simply incompetent—central bankers,” authors of the latest Cato Institute blog post. The authors, Daniel Raisbeck, a policy analyst and the research associate Gabriela Calderon de Burgos, argue that only full dollarization can help Argentina control inflation which currently hovers above 100%.
To support their argument, the two experts point to the inflation rates in South America’s three fully dollarized countries which are namely Panama, Ecuador, and El Salvador. According to the blog post, the dollarized trio, unlike many other countries from the region, “did not see double-digit inflation in the aftermath of the Covid‐19 pandemic.”
The call by the two authors adds to the growing list of experts and economists who endorse the full dollarization of the South American country’s economy. As previously reported by Bitcoin.com News, Javier Milei, a presidential candidate in Argentina’s upcoming elections, has also indicated his readiness to dollarize should he win.
Dollarization and the Loss of Monetary Autonomy
However, opponents of dollarization often cite the loss of monetary autonomy as one of the reasons why inflation-hit countries must avoid replacing their currencies with the greenback. Others have highlighted the United States’ alleged weaponization of the dollar as one example of why countries with collapsing currencies must reject dollarization.
Nevertheless, in their blog post, Raisbeck and Calderon de Burgos use Panama’s experiences since it dollarized in 1999 to push back against some of the arguments used by critics of dollarization. For instance, the authors argued that an analysis of Panama’s dollarization experiences by another Cato Institute expert Juan Luis Moreno‐Villalaz had shown that banks in the country were (and are still) able to allocate resources without major restrictions. Since dollarization, the banks were also able to adjust their liquidity in accordance with the local demand for credit or money, the authors added.
“[The] changes in the money supply—which arise from the interplay between local factors and the specific conditions of global credit markets— and not the Federal Reserve, determine Panama’s monetary policy. Fed policy affects Panama only to the same extent that it does the rest of the world,” Raisbeck and Calderon de Burgos concluded.
Concerning the loss of seigniorage — the profit earned by a government when it issues currency — the two said this must be seen as “an infinitesimal price to pay for the advantages of dollarization.” Similarly, the lack of large dollar reserves should not be an excuse for not dollarizing, the authors added.
What are your thoughts on this story? Let us know what you think in the comments section below.
Russia Projected to Start Purchasing Chinese Yuan for Its Foreign Reserves as Soon as May
Russia will start to purchase Chinese yuan for its international reserves as soon as this month, according to reports from Russian economists. While analysts state that the purchases will be small and symbolic in the beginning, these will supposedly demonstrate a turnaround in the economy of the country.
Russia to Purchase Chinese Yuan for Reserves
Russia will start purchasing Chinese yuan for the first time since the invasion of Ukraine, according to reports from local economists. The move marks a departure from the sell-off that the Russian Federation began executing at the start of 2023, cutting its numbers since February.
The purchase of these funds in Chinese yuan will help the country to keep piling up on its reserves, which had been cut by the seizures of more than 0 billion in assets due to Western sanctions enacted as a consequence of the start of the Russia-Ukraine conflict. About these purchases, Bloomberg economist Alexander Isakov stated:
The volumes of FX purchases will be small initially, but highly symbolic as they will show that the country instead of eating through reserves is building them.
However, other economists believe that the yuan purchases will start in June, like Dmitry Polevoy, an economist at Locko-Invest in Moscow, who also stated the buys will be very small at the start. This is seen as positive by some analysts, as it is seen as a good signal for the stabilization of the Russian economy.
Natalia Milchakova, an analyst at Freedom Holding Corp., stated:
It will be important for the market that the state is starting to accumulate reserves again instead of spending them. This may even positively affect the ruble.
Building Sanction-Free Reserves
The report comes after the governor of the Bank of Russia, Elvira Nabiullina, announced on April 21 that the bank had focused on building a bank reserve comprised of non-sanctioned assets, but without specifying the nature of these assets. While the sanctions have affected some of its trading structure, Russia has survived and even thrived under these restrictions, managing to build a stash of billion in reserves held abroad, according to March reports.
This is, in part, thanks to the collaboration of allies like China and India, also members of the BRICS bloc, that have absorbed the oil production of Russia. There are also reports that suggest some of these countries are acting as proxies for Russian oil companies, buying large quantities of this sanctioned oil and ‘laundering‘ it — shipping it to countries that have cracked down on Russian oil imports.
What do you think about Russia purchasing Chinese yuan for its foreign asset reserve? Tell us in the comments section below.
Moonpay and Looksrare Partner to Bring Convenient NFT Purchasing to the Masses
On Thursday, the fiat-to-crypto onramp business Moonpay announced a multi-year partnership with the non-fungible token (NFT) marketplace Looksrare. According to the deal, Looksrare will allow marketplace users to buy and sell crypto assets through Moonpay’s services.
Moonpay and Looksrare Join Forces to Streamline NFT Transactions
Moonpay, the fiat-to-crypto service founded in 2019, revealed that it has entered into a partnership with the NFT market, Looksrare. Launched in August 2022, Looksrare was one of the first NFT marketplaces to actively reward traders with its own token, LOOKS. According to dappradar.com statistics on February 9, 2023, since its inception, the NFT market Looksrare has recorded .7 billion in sales.
According to an announcement sent to Bitcoin.com News, Moonpay is introducing an NFT checkout integration with Looksrare that allows anyone to buy NFTs with a credit card. “Checkout will be available for all primary and secondary sales on Looksrare,” according to the Moonpay announcement. “With the NFT checkout integration, Looksrare users will be able to easily purchase an NFT using a debit or credit card, eliminating the need to acquire cryptocurrency first.”
“We’re excited to become an exclusive partner to Looksrare and offer their users more opportunities to buy and sell their cryptocurrency,” Oliver Jeffcott, the senior business development manager at Moonpay said in a statement on Thursday. “From day one, we’ve wanted Moonpay to be a platform that increases access and usability for the Web3 community and this partnership is another step in driving that vision,” Jeffcott added.
NFTs have experienced a resurgence in 2023 and over the past 30 days, .067 billion in sales have been recorded among 342,452 NFT buyers. Looksrare, in terms of all-time sales, is just below Opensea, but it has faced increased competition since the launch of X2Y2 and Blur. Blur has recorded .19 billion in all-time NFT sales to date, and X2Y2 has seen .11 billion in sales since its inception.
What do you think about Moonpay and Looksrare partnering? Let us know what you think about this subject in the comments section below.
Analyst Warns of Banks’ Authority to Confiscate Funds, Decline of US Dollar Purchasing Power
According to Lynette Zang, chief market analyst at ITM Trading, U.S. banks have the legal authority to confiscate people’s funds due to legislation passed by Congress. In a recent interview, Zang discussed how the purchasing power of the U.S. dollar has dwindled to “roughly three cents,” her belief that central bank digital currencies (CBDCs) will reinforce a “surveillance economy,” and the unalterable nature of the World Economic Forum’s proposal, known as the Great Reset.
The Consequences of Bank ‘Bail-Ins,’ CBDCs, and the Great Reset
In a recently published video interview, Lynette Zang, the chief market analyst at ITM Trading, sat down with Michelle Makori, lead anchor and editor-in-chief at Kitco News. Zang discussed how the U.S. dollar and most major fiat currencies are near their end.
“People don’t realize that everything has a life cycle,” Zang told Makori. “I’m at a different point in my life at 68 than my granddaughter who is about to turn eight. Currencies are no different. There are recognizable patterns that we can see all along the way,” Zang emphasized. The analyst continued:
But there’s not a doubt in my mind … I mean, first of all, there’s roughly three cents left of the [original] dollar’s worth of purchasing power … So, what happens when you reach zero? You have to go negative, and they take your principal.
Zang also informed the host that the Dodd-Frank legislation transforms depositors into “unsecured creditors.” She emphasized that the laws enable financial institutions to easily convert deposits into equity. Instead of “bailouts,” Zang predicts there will be “bail-ins,” where depositors’ savings are used to prevent a bank from collapsing.
“People have the assumption that when they make a deposit, it’s their money,” Zang stated. “But it’s not. When you make a deposit, legally, you’re lending your money to the bank. In 1995, they passed Regulation D, which legalized and allowed banks to move your deposits into sub-accounts that are in the bank’s name.”
Then they use that as collateral for loans, and you know, frankly, most of the revenue that banks generate now is trading revenue, according to the Office of the Comptroller of the Currency. So, that just allows them to reduce their reserves and use your money to gamble with. You don’t even realize it because it’s invisible.
During the interview, Zang forecasted that nearly everyone will experience a “bail-in” due to excessive money printing causing liquidity issues. The analyst pointed to cracks in the U.S. Treasury market, which is the foundation of the American economy. According to recent meetings, she stated that the Federal Deposit Insurance Corporation (FDIC) is aware of the potential for a significant problem in the U.S. financial system. “They’re laughing at us,” she said. “[They maintain] that the average retail clients don’t need to understand there’s really no money in the FDIC deposit insurance fund, and that they should expect to be bailed in.”
During the interview, Zang warned about the potential dangers of central bank digital currencies (CBDCs). She believes that these digital currencies will allow for easy tracking of a user’s funds and spending habits, as well as the ability to freeze those funds. Zang views CBDCs as part of the World Economic Forum’s proposed Great Reset. She argued that wealth never disappears, but merely shifts location, and if one does not own it, someone else does. “You may have nothing,” Zang said, “but I’m pretty sure you won’t be happy because you’ll be renting everything,” she added.
What do you think about the warnings raised by Lynette Zang? Share your thoughts in the comments below.
With Cryptocurrencies Going Mainstream, How Is Purchasing Digital Currencies Becoming Simplified?
It is common knowledge that Bitcoin was the first decentralized cryptocurrency. It was developed in the year 2009 by Satoshi Nakamoto. However, today, there are a wealth of digital currencies in place and are commonly referred to as ‘altcoins.’ In fact, it is estimated that the number extends beyond 4000.
Before understanding how companies are making the process of purchasing cryptocurrency simpler, it is important to understand what it actually is. It is basically a currency operating in the digital or virtual medium. It was established to formulate a novel way of making payments on a global level. This specific currency is also independent of banks. Unsurprisingly enough, it was during the banking crisis that they were first created.
Since it was a completely new concept, cryptocurrencies did not enjoy a rapid uptake and acceptability. This can be attributed to the lack of trust in digital money. Furthermore, for most people, the process of creating or even acquiring a crypto token was extremely confusing and risky. Furthermore, several reliable entities, such as JP Morgan Chase were vocally against their use.
However, in the last few years, a dramatic shift was observed with the rise in global acceptance.
What was the shift?
Even today, Bitcoin cannot be considered a mainstream currency. But it is an undeniable fact that the adoption of cryptocurrency witnessed an unprecedented rise.
Some big investment banks in the US have changed their views on cryptocurrency adoption and have started offering cryptocurrency investments and funds to clients. Furthermore, Blackrock, the world’s largest asset manager, announced that it has entered the cryptocurrency space. Tesla recently acquired .5 billion worth of bitcoin, making it possible to pay for a Tesla vehicle with bitcoin, and just a year ago, PayPal incorporated bitcoin, Ethereum, Litecoin, and bitcoin cash.
Many reasons are attributed to the sudden rise in digital currencies. Obviously, the rise in adoption is one. The consistent increase in its value is one more reason, as Bitcoin, Ethereum, and Litecoin have enjoyed a dramatic increase in price in just one year.
Moreover, it is also true that getting one’s hands on digital currencies has become simpler, even for the average investor, after the improvement of cryptocurrency exchanges and platforms.
However, this does not mean that bitcoin and other cryptocurrencies are devoid of any issues. In fact, before they can actually go mainstream, there are many hurdles and regulatory issues that they must overcome. However, they are definitely on the right path. Today, Bitcoin is worth trillion.
Although several renowned entities are entering the crypto scene, many people refused to enter the world of digital currency as the process of purchasing one was excessively complex.
The rise of cryptocurrency platforms
To resolve this issue, several online platforms have been established, which make the process of buying and exchanging cryptocurrency simpler. The acceptability of such platforms rose with the establishment of Coinbase and its decision to go public this year.
For some time now, several platforms and exchanges resembling Coinbase have been in place. Each of them offers a platform where crypto can be bought, with a few focusing on novices and security, as it is an issue that is causing skepticism among many.
One good example in this context is Bit2Me, which is a European platform that was established in the year 2014. However, they operate globally and facilitate the trading of various currencies, with their latest expansion focusing on attracting a wider audience, particularly focusing on beginners.
According to the Co-founder and CEO of Bit2Me, Leif Ferreira, security is the most important aspect of cryptocurrency trading, which cannot be ensured if there is a gap in knowledge. He explains that about a decade ago, people involved in cryptocurrencies were knowledgeable about the field. “But today, with the rise in its popularity in the media, there has been an influx of newcomers, whose enthusiasm far exceeds their knowledge of the technology,” he adds. Platforms such as Bit2Me aim to ensure that crypto is accessible to everyone and each person understands its intricacies thoroughly.
This is achieved through the simplification of their UX in a way that helps new users. Moreover, throughout the platform, they offer walkthrough solutions through features such as Academy, which is an e-learning platform acquiring knowledge from both verified bibliography and trusted mentors in the industry. “We offer videos, articles and step-by-step guides,” Ferreira added. However, it is also important to note that the academy is not meant just for new users. The training sessions that are offered are meant for micro, small and large businesses, as well.
Many new users do not understand how digital wallets work either. Some platforms need users to have a separate digital wallet, while many platforms like Bit2Me, began with a wallet.
“Our first-ever product was the Bit2Me wallet, which is inclusive of a Fiat on/off-ramp. Thus, our users can instantly buy, sell, trade and exchange cryptocurrencies,” Ferreira explains. With their own wallet in place, Bit2Me ensures optimal security, which is augmented with their complex scheme that includes hot/cold wallets and custody solutions.
Today, with the increasing popularity of digital currencies, many platforms are also coming up. As Bit2Me is an older platform, it has managed to build a community. Many other platforms are still very fundamental, in terms of structure. Thus, users are required to have their own wallet and understand the intricacies on their own.
Today, governments and entities of different countries are in the process of launching their own digital currencies. Thus, it is not going to be very long before bitcoin and altcoins go mainstream. However, it is important for new users to start with a platform that is user-friendly. Today, the rise in the popularity of cryptocurrencies has definitely made the process of its adoption easier and with time, it will probably get even simpler.
Image by walid mahdadi from Pixabay
Why You Should Choose PlasmaPay over Paypal for Purchasing, Storing and Paying with Crypto
In a symbolic move that highlighted the progress cryptoassets have made in recent years, PayPal announced last week that it would make cryptoassets such as Bitcoin and Ethereum available to its 346 million users. This is an important step for the space, and will both increase awareness and further, it’s legitimacy. However for those in the know, the service proposed by PayPal is less robust than players already operating in the space. The DeFi first firm which aims to build the financial services infrastructure for the global digital economy of Web 3.0, provides a service through which users can purchase, store, and trade their cryptoassets. Here we examine the differences between PayPal’s emergent offering and crypto native operations such as PlasmaPay.
Not your keys, not your funds
PayPal’s service is very clear that users “will not be provided with a private key”. This was backed up by recent reports from both Sign Key and Satoshi Labs which discourage PayPal for transacting BTC. This is because you never truly own any cryptoassets held on PayPal. This has a number of important ramifications of which users should be aware.
Firstly, it means that users are forced to trust that PayPal actually has the cryptoassets stated, and that the company will continue to operate. While PayPal is of course a large institution with a lengthy track record, this does not make it invulnerable. There is a long history of financial services companies going out of business and being unable to provide full restitution to their account holders.
PlasmaPay, meanwhile, is a non-custodial service. This means that users hold their own keys at all times. If PlasmaPay goes out of business, then user funds are still safe, because each user holds their funds at all times.
Secondly, because users don’t control their private keys, they have to abide by all PayPal rules and restrictions. The most pressing for most people is that the cryptoassets held in your account “cannot be transferred to other accounts on or off PayPal”. As such, users cannot spend their cryptoassets as they wish, but can instead only use it to complete transactions to PayPal merchants. Users can’t send to friends or families (not even through PayPal), or complete any non-PayPal merchant transaction. This would be akin to your bank dictating that the money in your account could only be spent at places in which the bank had a partnership with the shop; that you could not withdraw cash, send it to your friends or family, or otherwise do anything else you wish with it.
Users of PlasmaPay, however, can use their cryptoassets in any way they choose fit. They can send any amount of their funds to whomever they choose, withdraw it, use it to make purchases, send to exchanges, or transfer to a different account of their own choosing. This is because they own their own private key, and as such are free to do whatever they want with their funds.
Limited access
As well as limiting how users can spend their cryptoassets, PayPal is also limited in who can access the service. Only US based customers (excluding Hawaii) are able to buy cryptoassets. Furthermore, these customers have to use PayPal Cash to complete their purchase.
PlasmaPay, on the other hand, is available to users in 165 countries and offers a wide range of options through which users can purchase cryptoassets. This includes debit and credit cards, e-wallets, bank transfers, and PlasmaPay Cash.
Because of this walled garden and market size, PayPal is also able to charge significant fees. For example, from 2021 a purchase of 0 on PayPal would incur a 2.3% fee, as well as a spread estimated at 0.5% to the market price provided by Paxos (PayPal’s trading service provider). PlasmaPay, conversely, only charges a flat 1% fee on purchases made through bank transfers. Furthermore, instead of being reliant on one trading provider, PlasmaPay is partnered with five leading crypto exchanges including Binance and Kraken to source the best price possible for users.
The difference between holding and participating
PayPal offers a route for those new to the space to buy and sell cryptoassets. But, as with Revolut’s similar offering, it only offers users limited exposure and interaction. This is a shame, since it denies people the opportunity to fully participate in the likes of DeFi and other crypto protocols. It only allows users to buy four cryptoassets (Bitcoin, Bitcoin Cash, Ethereum and Litecoin), and, as discussed, it does not really allow users to do anything with them once purchased. It is very much a ‘light’ experience.
Services such as PlasmaPay, on the other hand, are geared towards enabling users to participate in crypto as much as possible. Users can use their funds as they choose to, not as is prescribed for them. Future developments include the likes of a DeFi dashboard, which will let users stake, farm, and borrow/loan assets. PlasmaPay will also shortly launch the ability to buy and sell any token, providing unrestricted access to the full range of DeFi and crypto. This will provide all the convenience of a centralized service that is easy to use, with all the benefits of decentralization.
Legitimacy, but with potential risks
PayPal’s introduction to the crypto space is certainly something to be welcomed. It brings with it a mass of users and the accompanying awareness and media attention that should benefit all of crypto. The legitimacy PayPal brings, however, also needs to be kept in check. Bitcoin and other cryptoassets are built on the foundation of decentralization, something that could be endangered by centralized firms dictating too much of what people can and can’t do with their cryptoassets. As such, users should be educated on the benefits of decentralized services wherever possible, to better secure their own holdings and the safety of networks moving forward.
Cashaa Rolls Out Bitcoin Purchasing Option for India
The online banking platform Cashaa has enabled fiat deposits so that those in India can purchase bitcoin using the Indian rupee.nThe post Cashaa Rolls Out Bitcoin Purchasing Option for India appeared first on Bitcoin Magazine.n
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