The governor of the U.S. state of North Carolina has vetoed House Bill 690, which seeks to ban state payments using central bank digital currencies (CBDCs) and the state’s participation in the Federal Reserve’s CBDC testing. The governor argued the bill was premature and emphasized the need for more funding for cybersecurity. House Bill 690 […]
Bitcoin News
Nigeria Mulls Over Banning P2P Crypto Transactions; Labels Crypto Trading as National Security Concern
Nigerian authorities are reportedly planning to prohibit financial institutions from facilitating peer-to-peer cryptocurrency transactions. According to a report, Nigeria’s Office of the National Security Adviser has classified cryptocurrency trading as a national security concern. Three fintech startups, known for enabling such transactions, have been directed to block and report peer-to-peer cryptocurrency transactions to law enforcement […]
Bitcoin News
US Congressman Warren Davidson: ‘Banning CBDC Is Essential to America’s Fintech Future’
U.S. Congressman Warren Davidson has railed against central bank digital currencies (CBDC), stating that enacting a ban on these instruments is “essential” for the future of the fintech industry in America. Davidson explained that many people wrongly conflate cryptocurrencies with CBDC when these are two different concepts.
Congressman Warren Davidson: ‘CBDC Is Evil’
Congressman Warren Davidson has warned about the dangers that issuing a central bank digital currency (CBDC) represents for the financial technology industry in America. Davidson vocally criticized the use of these tools, reaffirming his opposition to CBDC by stating on social media that:
At least most agree that CBDC is evil – the financial equivalent of the Death Star. Don’t become an accomplice to anyone designing, building, testing, developing, or establishing CBDC.
Davidson, part of the House Financial Services Committee, emphasized that many people wrongly conflated the concept of CBDC with Bitcoin and that banning the existence of a CBDC in America would be “essential” to America’s fintech future.
Davidson’s opposition to CBDC is not new, as the representative has railed against the concept before, stating that “central bank digital currency (CBDC) corrupts money into a tool for coercion & control,” explaining that there was no way of implementing CBDCs in America without legislation.
People, Not Tokens
The congressman noted that the tech behind these tools was not the problem, as he pinned responsibility on the human resource behind CBDC projects. Davidson stated:
Tokenized assets are not the problem. It’s the people. Entities (including the Federal Reserve, Ripple, Consensys) and influencers are actively working on CBDC projects.
Davison concluded by announcing that he was working on passing a regulation that would “criminalize designing, building, testing, developing, or establishing a central bank digital currency.”
While the Federal Reserve is now openly considering a digital dollar as “a means to expand safe payment options, not to reduce or replace them,” it recognizes that it has taken “no decision on issuing a central bank digital currency (CBDC) and would only proceed with the issuance of a CBDC with an authorizing law.”
Several bills have been introduced to stop the hypothetical issuance of a digital dollar. In February, Representative Tom Emmer introduced the CBDC Anti-Surveillance State Act to “halt efforts of unelected bureaucrats in Washington, D.C. from issuing a central bank digital currency (CBDC) that strips Americans of their right to financial privacy.”
Also, in March, Senator Ted Cruz introduced a bill to stop the Federal Reserve from developing a CBDC.
What do you think about Warren Davidson’s thoughts on CBDC? Tell us in the comments section below.
Nigerian Association of Money Changers Calls for Banning of Binance
The leader of Nigeria’s Association of currency exchangers has accused the crypto giant Binance of helping to worsen the local currency’s woes and asked authorities to consider banning the platform. The leader suggested that the optimism which ensued after Tinubu’s government floated the naira has now given way to pessimism.
The Naira’s Woes
The president of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, has reportedly asked the Nigerian government to consider banning the crypto giant Binance. Gwadabe insisted that the crypto exchange platform is partly to blame for Nigeria’s persistent currency woes which have now seen the naira fall to a record low versus the U.S. dollar.
The remarks by Gwadabe suggest that both the Bola Ahmed Tinubu government and some key players in Nigeria’s foreign exchange market are seeking to loosen the top crypto exchange’s stranglehold on the Nigerian market. To illustrate, sometime in early June it was widely reported that the Nigerian Securities and Exchange Commission had banned Binance Nigeria Limited, the crypto exchange’s supposed affiliate.
However, following the revelations that Binance Nigeria Limited had no relationship with Binance, the SEC was forced to issue another prohibition order which barred any entity using the name Binance from operating in the East African state. The regulator also warned residents against using the platform.
Meanwhile, in remarks published by the People’s Gazette, Gwadabe highlighted Binance’s perceived dominance and how this poses a threat to the Nigerian economy.
“If you know about Binance, you will know that Binance trading is becoming the anchorage of both the investors and exporters window and the parallel market, which is unfortunate. So, we have to do something that can stop Binance. It’s a competition. We need to ban Binance and the only way to do so is if you have liquidity,” explained Gwadabe.
The ABCON president added that the optimism which ensued after Tinubu’s government floated the naira, has now given way to pessimism.
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What are your thoughts on this story? Let us know what you think in the comments section below.
IMF Economists Say Countries Should Address Crypto Demand Drivers Instead of Banning
The International Monetary Fund’s (IMF) economists have cautioned that banning cryptocurrency “may not be effective in the long run.” Instead of outlawing crypto, they suggest countries should address “the drivers of crypto demand, including citizens’ unmet digital payment needs.”
IMF Economists on Crypto Adoption, Banning, and Regulation
The International Monetary Fund (IMF) published an article titled “Interest in Central Bank Digital Currencies Picks Up in Latin America and the Caribbean While Crypto Use Varies” on Thursday. The article is authored by IMF senior economist Rina Bhattacharya, economist Dmitry Vasilyev, and Mauricio Villafuerte, a division chief in the IMF’s Western Hemisphere Department.
The IMF economists highlighted that four Latin American countries (Brazil, Argentina, Colombia, and Ecuador) ranked among the top 20 countries globally in terms of crypto adoption according to Chainalysis. However, they stressed:
Crypto asset adoption also presents numerous challenges and risks, particularly for vulnerable LAC [Latin America and the Caribbean] countries with a history of macroeconomic instability, low institutional credibility, substantial capital flows, corruption, and extensive informal sectors.
The economists explained that crypto regulations vary across Latin America and the Caribbean countries. While noting that El Salvador has made bitcoin legal tender, they pointed out: “Other countries like Argentina and the Dominican Republic have prohibited the use of crypto assets due to concerns about their impact on financial stability, currency and asset substitution, tax evasion, corruption, and money laundering.”
Noting that “Crypto assets present risks that vary by country circumstances,” the economists concluded:
While a few countries have completely banned crypto assets given their risks, this approach may not be effective in the long run. The region should instead focus on addressing the drivers of crypto demand, including citizens’ unmet digital payment needs, and on improving transparency, by recording crypto asset transactions in national statistics.
What do you think about the IMF economists’ advice regarding crypto? Let us know in the comments section below.
Janet Yellen Says ‘Critical’ to Establish Strong Crypto Regulation — ‘We Haven’t Suggested Outright Banning’
U.S. Treasury Secretary Janet Yellen says “it is critical to put in place a strong regulatory framework” for crypto on the sidelines of the G20 meeting for finance ministers and central bank governors. “We haven’t suggested outright banning of crypto activities,” Yellen added.
Janet Yellen on ‘Strong’ Crypto Regulation
U.S. Treasury Secretary Janet Yellen talked about crypto regulation in an interview with Reuters Saturday on the sidelines of the G20 meeting for finance ministers and central bank governors under India’s presidency in Bengaluru.
Yellen emphasized the importance of establishing a robust regulatory framework for cryptocurrencies while clarifying that the U.S. has not proposed an outright ban. The treasury secretary said:
We haven’t suggested outright banning of crypto activities, but it is critical to put in place a strong regulatory framework … We’re working with other governments.
Crypto regulation was among the key topics discussed by the G20 finance ministers and central bankers under India’s presidency this weekend. During the meeting, India asked the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to develop a joint paper on crypto in order to help formulate “a coordinated and comprehensive policy approach to crypto assets.”
Indian Finance Minister Nirmala Sitharaman has been pushing for international cooperation on crypto regulation for months. She said prior to the G20 meeting that India was having “detailed discussions” with G20 members on crypto regulation to establish a technology-driven regulator framework or standard operating procedure (SOP) on crypto.
In the U.S., the Securities and Exchange Commission (SEC) has recently stepped up its enforcement efforts against crypto firms. The SEC recently charged crypto exchange Kraken over its staking program and Nexo over its Binance USD (BUSD) stablecoin issuance. The securities watchdog also charged Terraform Labs and CEO Do Kwon for defrauding investors.
IMF Managing Director Kristalina Georgieva also said on the sidelines of the G20 meeting this weekend that crypto needs “more regulation.” While noting that there must be a “very strong push for regulation,” she said: “If regulation fails, if you’re slow to do it, then we should not take off the table banning those assets, because they may create financial stability risk.”
In addition, the executive board of the IMF provided guidance this week to help countries develop effective crypto policies. A few executive board directors thought that “outright bans should not be ruled out.” In addition, the board advised: “Crypto assets should not be granted official currency or legal tender status.”
What do you think about Treasury Secretary Janet Yellen’s statement about crypto? Let us know in the comments section below.
IMF Calls for ‘More’ Crypto Regulation — Says Banning Should Be an Option
International Monetary Fund (IMF) Managing Director Kristalina Georgieva says crypto needs “more regulation.” She added, “We should not take off the table banning those assets,” if regulation fails or is too slow to implement.
IMF’s Chief Calls for More Crypto Regulation
IMF Managing Director Kristalina Georgieva talked about crypto regulation Saturday on the sidelines of G20 meetings for finance ministers and central bank governors under India’s presidency in Bengaluru. Commenting on crypto oversight, she told reporters:
There has to be more regulation.
Her statement followed a roundtable discussion she co-chaired with Indian Finance Minister Nirmala Sitharaman. The IMF chief and India’s finance minister agreed that besides debt restructuring, regulating cryptocurrencies is a priority area for India.
Georgieva explained that the IMF, the Financial Stability Board (FSB), and the Bank for International Settlements (BIS) are committed to establishing a foundation for the regulation of cryptocurrencies that are not issued by governments or central banks. “We have to differentiate between central bank digital currencies [CBDCs] that are backed by the state and stablecoins, and crypto assets that are privately issued,” she stressed.
“There has to be very strong push for regulation,” the IMF chief emphasized, noting:
If regulation fails, if you’re slow to do it, then we should not take off the table banning those assets, because they may create financial stability risk.
The IMF executive board provided guidance this week to help countries develop effective crypto policies. While most executive board directors agreed that “strict bans are not the first-best option, but that targeted restrictions could apply,” a few thought that “outright bans should not be ruled out.”
In addition, the board advised: “Crypto assets should not be granted official currency or legal tender status in order to safeguard monetary sovereignty and stability.” Georgieva similarly said Saturday:
Crypto assets are nothing, they cannot be accepted as a legal tender.
The Fund has been against El Salvador accepting bitcoin as legal tender since the country made the crypto a national currency back in September 2021. However, the IMF said earlier this month that, so far, the risks from El Salvador adopting BTC as legal tender have not materialized.
What do you think about IMF Managing Director Kristalina Georgieva’s statements about crypto? Let us know in the comments section below.
Binance’s CZ Explains Why Banning Crypto Ads Won’t Affect Demand
Several regulators around the globe have taken a hostile approach around crypto exchanges and crypto-related companies by forbidding them to advertise the industry to the general public. However, Binance’s CEO Changpeng Zhao thinks this will not affect the high demand of the market.
Curbing Crypto Ads
Crypto-related firms have been accused by international regulators of marketing their services with misleading messages that undermine the risk digital assets investments could possess to users.
Spain, U.k., and Singapore have banned the advertisement of crypto to different extents.
In Singapore alone, crypto exchanges and other licensed companies can only publish ads on their own websites and mobile apps to avoid reaching the general public.
The country’s ban includes “any form of advertisements or promotional materials in public areas such as Singapore public transport, public transport venues, broadcast media or periodical publications, third party websites, social media platforms, public events or roadshows.”
“MAS stresses that DPT service providers should conduct themselves with the understanding that trading of DPTs is not suitable for the general public. These Guidelines set out MAS’ expectation that DPT service providers should not promote their DPT services to the general public in Singapore.“
Spain requires a pre-approval for any crypto advertisement directed towards an audience of 100,000 or more people and all ads and must include a warning like such: “Investments in crypto-assets are not regulated. They may not be appropriate for retail investors and the full amount invested may be lost.”
In the U.K., authorities have banned several ads that they have claimed to be “irresponsible and took advantage of consumers’ inexperience or credulity.”
Related Reading | Fidelity Says What We’ve Been Thinking: Countries & Central Banks Will Buy BTC
Why It Won’t Affect Price
The price of cryptocurrencies is driven by demand and supply, meaning the interest users have in the market and the availability of each digital coin. For this reason, the effects that bans might have on the adoption of cryptocurrencies are believed to be important for the future of the market.
Binance CEO Changpeng Zhao (also known as “CZ”) alleged during a CNBC International interview that the reason why regulators take this approach on advertisements is that the crypto industry has a huge demand.
Even though the CEO thinks these bans could slow down the industry’s growth, CZ is not worried about the macro picture because he thinks the demand for crypto is so high that curbing crypto ads will have little impact.
Changpeng Zhao claimed that most users are driven to the crypto industry through “word of mouth” marketing rather than ads.
“Clampdown on crypto advertising is unlikely to have much of an effect on demand, as most of the crypto users come from word-of-mouth promotions anyway.”
CZ noted that Facebook and Google opposed crypto ads for a long time and even though they are giant platforms that reign over the internet, this has not affected the adoption of digital assets.
Binance is the largest crypto exchange in the world and it recently withdrew its application to start a cryptocurrency exchange in Singapore after facing pressure from the country’s regulators over concerns of risks and consumer protection.
The exchange, however, has not lost interest in conducting business in the country. The global regulatory framework is miles away from becoming clear, and Binance is working to adapt and comply, taking “strategic, commercial and developmental” considerations.
CZ stated that Binance hasn’t driven its eyes away from Singapore for the country might change its regulatory framework later on.
The future location of Binance headquarters remains a mystery. CZ said they are exploring “everywhere in the world.”
The CEO noted that Binance is working with many authorities to help them build a comprehensive regulatory framework for the crypto market.
Related Reading | Binance’s CZ Wants Entrepreneurs To Create Coins. Does His Argument Make Sense?
Crypto Total Market Cap
At the time of writing, the global market cap of cryptocurrencies sets its price at ,8 trillion, showing a decline of %3 in the daily chart.
Crypto total market cap at ,8 trillion in the daily chart | Source: TradingView.com
NewsBTC
No, China Is Not Banning Bitcoin Mining: Chinese Crypto Insiders
China was once a hub for Bitcoin innovation and investment, but the nation has shifted gears over the past couple of years.
So when rumors started to spread on Friday morning that the country was banning crypto mining, it was no surprise some were quick to believe the rumors.
But according to insiders of the Bitcoin and blockchain scene in China, this is anything but the case. After all, this is the second or third crypto mining scare related to China in approximately 12 months — and a previous case of a “ban” was quickly revealed to be a “nothing burger.”
Related Reading: There’s an Unexpected Silver Lining to J.K. Rowling’s Bitcoin Tirade
China Isn’t Banning Bitcoin Mining
On Friday morning, the screenshot seen below of a Chinese government announcement began to spread online. Asian-centric blockchain and fintech news outlet PANews wrote in regards to the image:
“The Financial Administrative of the Sichuan province of China has issued a notice to its subordinate offices ordering them to ‘guide [Bitcoin and crypto] mining entities to end their mining activities in an orderly manner’.”
Image shared by PANews (@PANewsOfficial on Twitter) of a regional government attempting to ban Bitcoin mining.
Some immediately took this as a sign that China, or at least this province, has begun a systematic disruption of the local crypto mining industry. Yet insiders say that these fears are overblown, despite the assertion by the regional Sichuan province government.
Molly, the head of marketing at a blockchain startup and formerly of Bitcoin Magazine’s China office — told her followers not to “freak out” because it “won’t happen [as] it’s very normal that government sends out conflicting messages in China.”
This was echoed by Matthew Graham, the chief executive of Sino Global Capital, a China-based fund that involves itself with blockchain investments:
“China is not banning mining, it’s complicated as usual, messages frequently conflict especially at local or regional level. Actual message is basically ‘don’t use local government support for mining to illegally raise money’. Thank you,” Graham wrote, trying to dissuade the fears of a Chinese crackdown on BTC.
Crypto Mining Persists as a China-Centric Industry
Further cementing the idea that this is just a scare, Bitcoin mining remains centralized in China.
Reuters reported late last year that Chinese crypto miners control two-thirds of the network’s hash rate, “a growing share that is likely to benefit the country’s miners.” The research backing this statistic, done by CoinShares, also indicated that China has seen such strength in crypto mining due to its proximity to hardware manufacturers and the low cost of electricity.
That’s not to say that Bitcoin’s reliance on China-based miners is a good thing, though.
Industry podcaster and commentator Eris Savics last year released an extensive Twitter thread on why “We must get Bitcoin mining out of China.”
We must get #Bitcoin mining out of China.
Thread
1/#Bitcoin mining is centralized in China.
Some people may disagree, citing mining pools. They ignore the fact that the totality of ASIC’s are made in China.
It is naive to think that the CCP is ignoring #Bitcoin.
— ericsavics (@ericsavics1) October 19, 2019
He postulated that it is naive of BTC investors to believe that “the Chinese Community Party is ignoring Bitcoin,” implying that the government could leverage China’s crypto infrastructure to their geopolitical and macroeconomic advantage.
Related Reading: Crypto Tidbits: Bitcoin Halving, Reddit Using Ethereum, JP Morgan Dabbles in Crypto
Featured Image from Shutterstock
NewsBTC
No, China Isn’t Banning Bitcoin Mining: Chinese Crypto Insider
Earlier this year, reports arose that China — once one of the cryptocurrency capitals of the world — was looking to ban Bitcoin mining.
As reported by NewsBTC at the time, the SCMP reported that the National Development and Reform Commission (NDRC) has revealed a draft list of industrial activities the government is interested in restricting or outright banning, which include cryptocurrency mining. With China’s Sichuan region, full of rivers, purportedly housing a large portion of the hash power backing the Bitcoin network, many were quick to take issue with this move.
According to a new document, however, this isn’t China’s plan.
Related Reading: Chinese Bank Invests in Bitcoin Wallet After President Xi’s Remarks: Report
Bitcoin Mining Still a Safe Activity in China
On Tuesday evening, Chinese cryptocurrency insider Dovey Wan found that the NDRC has eliminated Bitcoin mining from its list of industries to phase out over time. According to a roughly translated version of the article in question, the “consultation paper” that indicated that the NDRC cryptocurrency mining operations due to environmental damage has been “deleted,” implying that there will no longer be a concerted effort to stem the flow of electricity to China’s Bitcoin miners.
BREAKING
6 months ago CT was screaming abt “China banning bitcoin mining” when a fuzzy drafted “guideline” was published by China state planning dept
The official version is out: cryptocurrency mining is removed from the “eliminating category”
The message is so clear here
https://t.co/bA9To59cKJ pic.twitter.com/ynRiTdkKd7
— Dovey 以德服人 Wan
![]()
(@DoveyWan) November 6, 2019
While Bitcoin mining seems to be off the list of to-be-banned activities in China, this hasn’t stopped some more regional authorities from taking action.
In September, Wan reported that five departments of governments and regulatory entities in the autonomous region of China Inner Mongolia had begun to crack down on Bitcoin mining enterprises, cloud computing firms, and other operations that deal with data centers and large computing devices.
JUST IN h/t @ChainNewscom
Regulatory bodies from Inner Mongolia will dedicate resources in restricting cryptocurrency mining within the province
Xinjiang and Inner Mongolia are where most coal mining are based of. Tho I doubt this will have any impacthttps://t.co/LGmxpRwPeQ
— Dovey 以德服人 Wan
![]()
(@DoveyWan) September 14, 2019
Although the Google translation is spotty, the ChainNews article reads that local authorities said in a document that they believe cryptocurrency mining is “unrelated to the real economy”, and should thus not be supported by Inner Mongolia. So, the “Autonomous Region Development and Reform Commission, the Public Security Department, the Office of the Ministry of Industry, the Financial Office, and the Big Data Bureau” are all expected to carry out a “clean up and rectification” process on such firms over the next few months.
Related Reading: Chinese Crypto Crank, Has China Just Ignited Another Altseason?
Featured Image from Shutterstock
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